By Marty Raminoff
A New Jersey lawsuit is naming Whoopi Goldberg’s company, Whoopi inc, as one of the defendants in a lawsuit which accuses West Orange officials and other real estate developers of plotting to back out of a longtime development contract.
In 2006, Prism Capital Partners had been selected to help redevelop NJ’s West Orange downtown. As per New Jersey Patch. the project, which includes 21 acres on Main Street in suburban Essex County, was supposed to revamp the historic Thomas Edison Battery Building and nearby area by adding thousands of square feet of retail space and adding hundreds of housing units. The project, however, is far from completion, and in May the township declared Prism in default of its agreement. The contract was revoked in June.
As reported by the NY Post, in its lawsuit, Prism is alleging that town officials rescinded the contract so that they can rezone the property and sell it to a different development group, which includes Whoopi Inc. Prism claims property values have jumped during the pandemic, and the town just wants to make a larger profit. The lawsuit asks for the original development agreement to be restored. It is also asking for $50 million in damages for the allegedly “opportunistic and nefarious scheme to acquire the property for below market value so they can use the land for a sound studio.”
“West Orange Township changed its mind from creating a residential neighborhood around our Edison Lofts property. They asked us to speak to Ms. Goldberg concerning her company’s interest in a small studio. Those conversations grew into something larger, and once we presented that deal to the Town they decided to cut Prism out of the deal and take the property for less money than we paid for it in 2007 — so they could negotiate a deal directly with Ms. Goldberg’s company,” Prism principal partner Eugene Diaz told The Post in a statement on Saturday. “They are not only trying to avoid paying the $20 million owed but they are trying to profit by being a middleman that flips the property to Ms. Goldberg.”
West Orange Mayor Robert D. Parisi said the town “categorically denies” the allegations, and said Prism has had “almost 15 years to complete Phase II of this project and despite approvals, have failed to live up to their commitments.” Goldberg could not be reached for comment.
