Agallas Equities, a Manhattan-based real estate firm which recently lost a bid to redevelop the Kingsbridge Armory, has blasted recent comments made by New York City Mayor Eric Adams on apparent plans to start microchip production at the Armory.

 

As reported, Agallas filed a lawsuit on March 28 against NYC Economic Development Corporation (EDC), Andrew Kimball as CEO of EDC, 8th Regiment Partners LLC, which won the RFP, Bronx Borough President Vanessa Gibson and now former Deputy Bronx Borough President Janet Peguero over what it alleges was the “controversial selection” of 8th Regiment Partners as the chosen developer, as announced in January.

 

As reported, the lawsuit documents filed in New York State Supreme Court allege “a troubling pattern of political interference, procedural violations, and apparent intellectual property theft that [allegedly] corrupted what should have been a fair and transparent [RFP] public process” for the redevelopment of the City-owned Armory. An RFP (Request for Proposal) is a business document that announces a project, describes it, and solicits bids from qualified contractors to complete it.

 

Meanwhile, the mayor’s remarks about proposed microchip production at the Armory were made during an interview on “Piers Morgan Uncensored” on May 8 with journalist and broadcaster Piers Morgan. At one point, Morgan asked the mayor if the recent dismissal of the federal bribery and corruption charges against Adams had been discussed with U.S. President Donald Trump during a dinner the mayor had [allegedly] had with the president at his Mar-a-Lago home in Florida.

“Some people think you must have done,” Morgan probed. “How could you have a two-hour dinner with Donald Trump and not discuss this, given that he clearly had sympathy for what he believed was another example of the kind of lawfare that he’d gone through now being used against you?”

 

As reported, many public figures and others allege the dismissal by the Trump administration’s DOJ of the federal charges against Adams was a quid pro quo in exchange for the mayor’s loyalty to the president. Public Advocate Jumaane Williams previously said in part of the decision, “Let’s be clear: this wasn’t an exoneration. It was an escape route. Instead of fighting for his innocence in court, the mayor relied on power and privilege that few of us have to avoid his day in court altogether.”

 

He continued, “The judge’s decision made one thing clear: the case was dismissed because Trump’s Justice Department abandoned it, not because Mayor Adams was cleared of wrongdoing. Even the judge called the move ‘unprecedented and breathtaking.’”

 

During the recent interview, Adams clarified that the dinner did not take place at the president’s home in Mar-a-Lago but at the latter’s Palm Beach club, seemingly in an attempt to present the meeting as being less intimate. The mayor then spoke about what was discussed at the dinner. “Our conversation, as I stated, it was about bringing jobs to New York,” Adams said.

He continued, “There’s a place in The Bronx where we just put $100 million into an armory there.” As reported in August 2023, the RFP process for the redevelopment of the Armory was boosted by the announcement of joint funding of $200 million from the City and State governments.

 

Adams continued, “And I want to produce and develop chips there, so we don’t continue to be dependent on sources outside the country, and that was what our conversation was on. We had a general conversation on how much he loves New York, and how much I love New York. We made it clear the conversation was not rooted in the case at all.”

 

Following those remarks, as further reported on by The NY Daily News, we reached out to the mayor’s office for more information about the proposed microchip operation. In light of the lawsuit against the City of New York by Agallas Equities, we asked if City Hall / the mayor could confirm who would produce the microchips, if a separate RFP was underway for such a plan, or if it was something that was already discussed with 8th Regiment Partners LLC as part of the recent, contentious RFP.

 

A City Hall spokesperson did not answer all our questions directly and instead issued the following statement, “New York City and our partners are in the process of putting forward plans for a vibrant, mixed-use development at the Kingsbridge Armory including, a state-of-the-art event venue, industrial manufacturing space, community space, and desperately needed housing.”

It continued, “Maddd Equities’ [one of the partners behind 8th Regiment Partners LLC, the other being Joy Construction] proposal is reflective of a 9-month engagement process that’s responsive to what the community wants — for the armory to be an economic growth engine for The Bronx and our entire city. There continues to be a manufacturing component to this project, the exact details and uses for which are still being discussed.”

 

City Hall also informed us that according to the lawsuit, itself, EDC CEO Andrew Kimball informed Manny Tavarez, managing partner of Agallas Equities, that Agallas “was not selected because it was unable to provide the required $2.5 million security deposit, as well a $250,000 administrative fee and a $200,000 environmental consultant expense.” We reached out to Tavarez for comment on this point. He did not directly address it and instead provided the following statement.

 

“While semiconductor manufacturing can bring jobs and economic investment, siting such a facility in The Bronx, a predominantly Black and Latino community, raises serious concerns about environmental racism, public health risks, and displacement,” he said. “Instead of addressing these legitimate issues, City Hall is trying to pivot from the real story: another corporate giveaway at the expense of working-class New Yorkers.”

 

Tavarez continued, “Madruga, the developer behind this project, has been a major donor to Marco Rubio and President Trump. It’s no surprise that the Mayor is once again siding with corporate greed over the well-being of our communities. The people of The Bronx deserve transparency, environmental justice, and guarantees against displacement, not backroom deals that prioritize profits over people.”

 

We also contacted City Councilmember Pierina Sanchez (C.D. 14)’s office to ask if the councilwoman had any additional information about the chip proposal since she was one of the co-chairs of the “Together for Kingsbridge” pre-RFP working group which gathered input from the community on what they wished to see it being used for.

 

A spokesperson shared the following statement from the councilwoman, which read, “The details of the Kingsbridge Armory redevelopment proposal are still being finalized by 8th Regiment Partners LLC. This month, the proposal will undergo the Uniform Land Use Review Procedure (ULURP) where community stakeholders will be able to share their feedback.” 

 

It continued, “As I have said before, the guiding principles set forth in the Together for Kingsbridge Vision Plan, the result of 9 months of robust community engagement, should remain our north star so that the redevelopment of this great structure is both transformative and equitable for generations to come.”

 

Meanwhile, in response to the mayor’s remarks about the planned microchip operation, Tavarez said Sunday, May 11, “The proposed plan to convert the Kingsbridge Armory into a semiconductor chip manufacturing facility is not just misguided, it’s reckless, uninformed, and outright dangerous for the people of The Bronx. Mayor Eric Adams, Maddd Equities, and other stakeholders pushing this idea are either ignorant of the severe health risks or deliberately ignoring them to chase profit at the expense of working-class families.”

 

He went on to list several reasons why he believed the chip plant was a “terrible idea,” saying semiconductor plants are “toxic” and “residents would pay the price.” He added, “Chip manufacturing involves hundreds of hazardous chemicals, including arsenic, lead, and cadmium (known to cause cancer, organ damage, and developmental harm), hydrofluoric acid (a deadly substance that burns through skin and bone), PFAS “forever chemicals” (linked to immune system damage, infertility, and cancer), and volatile organic compounds (VOCs) (triggering asthma, lung disease, and neurological harm).”

He asked if the mayor would want these poisons near his home and if not, why he would “force them on Bronx families.” He went on to talk about how air and water contamination would be “a public health nightmare.” Tavarez continued, “Toxic fumes from the plant will worsen The Bronx’s already high asthma rates (the worst in the nation). Millions of gallons of water will be used daily, straining resources while dumping chemical-laced wastewater into local systems.”

 

He added, “Accidental leaks or spills could poison groundwater, as seen in other chip plant disasters (e.g., IBM’s Endicott contamination).” Tavarez went on to say that the location for such a plant was also “wrong” due to there being “no safeguards for a dense community.” He added, “Schools, homes, and parks surround the Armory. Children and elderly residents will bear the brunt of pollution.” He said there was no real plan for waste disposal and questioned where the “toxic sludge” would go. “A landfill in another low-income neighborhood?” he asked. “24/7 noise, truck traffic, and light pollution will disrupt the community, with zero meaningful benefit to locals.”

 

Tavarez also said the plant constituted “empty promises” of jobs and questioned what the cost of such jobs would be, saying, “Maddd Equities and the Mayor tout ‘economic growth’ but most high-tech jobs will go to outsiders with specialized skills, not Bronx residents. Low-level positions (janitorial, security) won’t justify the health risks. Property values near toxic sites plummet, hurting homeowners.”

 

He also suggested the “real story” was one of “greed over people’s lives,” saying, “This plan shows how little the Mayor and developers care about The Bronx. They’re gambling with people’s health for a photo op and corporate handouts. If they truly understood the dangers, they’d never propose a chip plant in a residential area.” He went on to demand accountability, questioning who would profit from the venture. “Follow the money behind Maddd Equities and lobbyists,” he said.

 

Tavarez went on to ask where the environmental impact study (EIS) for the project was and demanded full transparency. Most, if not all, City projects have to produce an EIS as part of the ULURP process, which can be lengthy [see attached charts]. “Why isn’t the Mayor listening to scientists and residents?” he said. City officials said in January the EIS was expected to begin this winter and the ULURP was anticipated to commence in mid-2025 (though this was prior to the recent announcement of the lawsuit).

 

Meanwhile, in response to the question on the dismissal of the bribery and corruption charges against him, the mayor said during the interview with Morgan, “This independent Department of Justice did their observation, and I agree with them wholeheartedly. I’ve said this over and over again. I was wrongly accused, and I know I did nothing wrong. Now, were there people who I trusted that I should not have trusted, and that did something that really went against what I believed? They were volunteers. They were not hired on our campaign, and I will continue to stand by that.”

As reported, the latest two-phase, mixed-use plan for the long-vacant Armory was unveiled by City and State officials on Jan. 7, when 8th Regiment Partners LLC was named as a selected partner. Adams, New York Gov. Kathy Hochul, Congressman Adriano Espaillat (NY-13), who recently endorsed former NY Gov. Andrew Cuomo for mayor, Gibson, Sanchez, and Kimball announced “El Centro Kingsbridge” (The Kingsbridge Center) as the name of the latest chosen redevelopment plan for the Kingsbridge Heights-based Armory.

 

They said at the time, “Phase One of the project envisions a vibrant, mixed-use development with a state-of-the-art event venue space, sports fields for local youth academies, cultural and commercial space, over 25,000 square-feet of dedicated community space, an educational facility focused on workforce development, and more.”

 

They said the latest proposal is designed to serve both the local community and the broader region and that programming is centered around the 180,000-square foot, column-free Drill Hall. They said the development team would lead the design and construction stages of the project, as well as the operation of the renovated Armory.

 

The announcement came after the conclusion of the latest Armory RFP bidding process which kicked off in September 2023, and had a deadline for receipt of bids of mid-January 2024. According to government officials, submitted proposals were reviewed to assess which bidder best met the requirements of the community after a lengthy envisioning process for the historic and long-underutilized site, which spanned several months.

Officials went on to say in January, “Phase Two includes 450 units of permanently affordable rental housing adjacent to the armory,” adding that the redevelopment was expected to generate nearly $2.6 billion in economic impact over the next 30 years, creating over 3,000 construction jobs and 360 permanent jobs.

 

In November 2024, the mayor announced that two Project Labor Agreements (PLAs) had been secured with NYC Building & Construction Trades Council (BCTC) for various, major City development projects, with more to follow, including the Kingsbridge Armory. In January, elected officials confirmed that the Armory redevelopment would indeed be carried out under a PLA, ensuring fair wages and benefits for construction workers.

 

Joy Construction has an address at Fulton Street in Manhattan, and Maddd Equities has an address on Long Island.

 

According to the lawsuit documentation, EDC is a domestic public benefit corporation organized under the not-for-profit corporation law of the State of New York, with a principal place of business in Manhattan.

 

Tavarez, meanwhile, concluded on the latest microchip production comments, “This isn’t just about our company; it’s about proving that The Bronx won’t tolerate business-as-usual corruption. We will expose every backroom deal, every stolen idea, and every broken rule until justice is served and this community gets the development it truly deserves.”