By JOHN HOWELL

While the city administration and the Small Business Administration are in agreement that Midway buildings at the former Rocky Point Amusement Park are a hazard and should be demolished, there are growing questions over when a plan to develop the 124-acre bay front property will be submitted and whether the selected developer will, in fact, go ahead with the project.

Reached Tuesday, Joseph Shivell, director of land services for the luxury homebuilder Toll Brothers, which has an agreement to develop the property, was reticent to answer any questions about Rocky Point.

Speaking generally about the company he said, “we’re looking at all of our assets and revaluating what makes sense to go ahead with.”

This is a departure from the company’s position of earlier this fall that, although the real estate market has softened, Rocky Point remained a viable project as it would be designed to appeal to baby boomers that are now retiring and looking for the amenities the development would offer. Last spring Toll Brothers advanced a plan to build luxury condominiums on the site and then withdrew it when the city questioned how the Warwick Neck sewer infrastructure would accommodate the projected wastewater flow. The sewer line was designed with a reserve capacity of 75,000 gallons a day for Rocky Point, sufficient capacity for 250 units but not the 399 Toll Brothers had proposed. The city also had questions over providing water service to the complex.

At that time, Toll Brothers said it expected to return this fall to the city with a revised plan reducing the number of units and addressing sewer and water concerns.

Since then, however, the real estate market has gone from weakening to worse. According to CNN Money.com, a government report released Friday finds new housing starts sank to the lowest level in more than six years in October and a key measure of builders' confidence in the market hit a nine-year low.

Both housing starts and applications for new building permits tumbled well below Wall Street forecasts – a sign the slumping housing market has not yet hit bottom, it was reported.

The decline has also had its impact on Toll Brothers.

Asked yesterday if he knew whether Toll Brothers planned to proceed with Rocky Point, SBA regional director Mark Hayward said, “All I know is we have a p&s [purchase and sales agreement].” Under that agreement the SBA is to get $25 million for the property once the buyer – Vanderbilt LLC, a North Carolina developer, submitted the $25 million bid and has an agreement with Toll Brothers – has obtained permits and zoning for the project. The period to have those agreements expires next spring, but there are provisions for extensions.

Hayward said developers that had had an interest in Rocky Point and were among those bidding on the property have also called him, inquiring whether the $25 million sale will go through.

Yesterday City Planner Mark Carruolo said Toll Brothers has not filed any new plans with the city and from his perspective the project is dormant.

Carruolo also understands why Toll Brothers would be reluctant to proceed with demolishing select buildings believed to be a safety hazard. The city and the SBA, receiver of the property, are seeking federal court approval to have the buildings demolished by Toll Brothers.

“They’re hesitant to make any investment in that property,” said Carruolo. From his read of the purchase and sales agreement with the SBA, Carruolo said it is his understanding “they’re on the hook for all expenses” including maintenance, security, taxes and utilities.

Generally speaking, Carruolo says he’s witnessed a dramatic pullback in the condo market with no new developments on the drawing boards. One project that has life, he said, is the 288-unit complex proposed by Carpionato Properties for Greenwich Avenue next to the Crowne Plaza. The city has received plans for a four-story building that would house a temporary sales office. In total 14 buildings are proposed for the site.

In addition, Carruolo said he has sought to “dissuade” new condo projects.

“I’m hesitant to consider projects unless there is an affordable housing component to it,” Carruolo said.

Carruolo said the city had been exempt from legislation requiring that developers allocate a percentage of new construction to affordable housing because of the number of moderately priced homes in the city. That has now changed although, because the Toll Brothers plan was on the table before the requirements became applicable, he would not push to have affordable housing a part of a Rocky Point development.

New projects, he said, would have to take the affordable housing component into consideration.

On Nov. 21, the SBA filed a motion in the United States District Court as receiver of Moneta Capital Corp. that said it has the responsibility to comply with city demands to remediate 50 buildings considered unsafe on the Rocky Point property and to determine that under its agreement with Vanderbilt Capital the company must pay for the work. Mayor Scott Avedisian pushed for the demolition of the buildings after he toured the property following the Oct. 16 fire that leveled the Cliff House. Initially, Avedisian gave SBA a week to raze the structures, threatening to have the city do the work if they didn’t act. As removal of the structures could be construed as a devaluation of assets, SBA sought court approval while stepping up park security to address the mayor’s concerns.

Yesterday, City Solicitor John Earle said SBA has “moved quickly” to address the city’s concerns. He said that the city would file to intervene on behalf of the SBA by the end of the week.

The purpose of the action, he said, would be to support the SBA’s action.

“We want to do it so we’re kept abreast of what’s going on and to make the court aware of what the city’s concerns are,” he said.

Meanwhile, adding to the hazards posed by the vacant park, as of tomorrow all Rocky Beach tenants are to have vacated the formerly leased property that is part of the park. There are about 70 cottages on the land that city officials fear could jeopardize nearby Highland Beach residences if there was a fire.

Pegee Malcolm, of the Rocky Beach association, said Tuesday all properties have been vacated. She said according to the terms of the agreement with the SBA, the vacated homes are now the property of the SBA.