BINGHAMTON, NY (WIVT/WBGH) – A federal judge has thrown out the bankruptcy case of the Binghamton Plaza, potentially clearing the way for the city to seize the property.

Mayor Jared Kraham announced that yesterday a U.S. Bankruptcy Court Judge dismissed the bankruptcy filing of New Jersey-based Galesi Realty, owners of the Binghamton Plaza.

Kraham says this opens the path for the city to seize the property using eminent domain, something he pledged to do in July.

The Mayor says the dismissal also allows the city to resume its effort to collect on roughly $400,000 owed in back property taxes.

Kraham says a lengthy legal process would still need to take place before the property could be taken, but city attorneys will be submitting an eminent domain filing soon.

He says he’s heard a lot of support from residents to deal with the eyesore.

They’re thrilled that there’s a mayor that said, ‘Enough is enough’ and are excited about the next steps. As am I as we move through this legal process to find a public good and a greater good for this plaza.”

Galesi Realty Asset Manager Mike Tomasulo says his company will vigorously oppose any effort to take the property.

Tomasulo tells NewsChannel 34 that Galesi had drawn up detailed plans to develop a veterans center on the property prior to the pandemic stalling the project.

If the city is successful, Kraham wouldn’t speculate on what might be developed on the site, but he promised that the city would solicit community input.

And he pledged the city’s support to relocate the few remaining businesses at the plaza.

He says housing is unlikely due to environmental concerns as the plaza was built on top of the old city dump.