A potential investor is forging ahead in his plans to open the Maranatha Family Center in Warnerville.
The investor, Da-lai Wu, is working on a list of conditions Richmondville officials want satisfied before he becomes an equity partner with Maranatha owner Stella McKenna.
But a foreclosure action filed last week against Maranatha and other properties owned by Ms. McKenna may complicate any deal for the gym.
The terms of a state grant Richmondville received for Ms. McKenna require a waiver for Mr. Wu to become part owner. The conditions Richmondville wants met range from assurances that outstanding electric and water bills will be paid to documentation required by the grant.
Mr. Wu said Friday he's working on the list, such as the documentation and record-keeping. He's been in touch with Richmondville's consultant on the project, Orion Management, on that end.
As for unpaid bills, however, Mr. Wu said he can't pay before he's a Maranatha owner.
"I'm not going to spend if I'm not part of the operation," he said.
Another condition Richmondville wants is for Mr. Wu to agree that he's partially liable if the state seeks to recoup the grant, according to town attorney J.R Parshall.
"The town is only looking to protect itself," Mr. Parshall said. "We have to look at this as a business decision."
On Monday, Mr. Wu focused on other possibilities to get the deal moving forward but added that the length of time it's taking and the intricacies are negatives.
He's concerned that if Maranatha doesn't reopen soon, it will lose the winter months when the gym is most busy--and most profitable.
"I'll give it one more shot and hope they move towards it," Mr. Wu said, referring to negotiations with town officials.
"But it may be just too far. It's not like I'm ready to throw in the towel, but I'm close."
Mr. Wu didn't believe the foreclosure would be an issue with his becoming part-owner.
The action was filed last week by the New York Business Development Corporation on behalf of creditors. Naming Ms. McKenna and others, it encumbers Maranatha in Warnerville, the former Maranatha on Elm Street in Cobleskill, Ms. McKenna's home in Richmondville and an Otsego County property.
The foreclosure seeks $1.8 million.
The foreclosure would take 12 to 14 months to decide, and any sale of Maranatha would potentially stop the action, Mr. Wu said.
Mr. Parshall agreed--up to a point.
"It's my opinion that if a deal came together, I'd assume it would stop the foreclosure," he said. "But it depends on what they want--Catch up on everything? Some of the payments?"
And although the foreclosure action may not stop the deal, it may make a difference.
"It's a changed landscape now," Mr. Parshall said.
A representative from the Business Development Corporation was contacted several times for this story but did not return phone calls by press time.