A standoff is under way over nearly $3 million in city property taxes for 3 Columbus Circle.
The tower, at Broadway and W. 57th Street, is caught in a tug-of-war between owner Joseph Moinian and SL Green Realty Corp. on one side and German American Capital Corp. — a division of Deutsche Bank — and its partner, the Related Companies, on the other.
On Jan. 3, Stephen Meister, a lawyer for Moinian, asked a judge for “emergency” relief to force GACC to provide $2.9 million to pay the taxes — which were due that day, court documents show.
Meister argued that income from the building was being paid into a “lockbox” — to be used to pay taxes and other bills.
GACC’s lawyers refused to pay the taxes out of the $6.94 million in escrow, claiming Moinian was in “default” on the mortgage.
Related Chairman Stephen Ross would like to take over 3 Columbus Circle, tear it down and put up a new luxury residential tower with a Nordstrom’s store. Related owns the mortgage with GACC and is trying to foreclose on the loan.
Last November, Moinian and SL Green tendered a check for the $258.6 million mortgage. But Related and GACC are claiming there should also be a “prepayment penalty” — of around $50 million.
Related and Deutsche Bank declined to comment.
