The company that owns the Binghamton Plaza has lost an initial court bid to halt an effort by the city to take control of the property on West State Street.

The Appellate Division of the state Supreme Court on Thursday dismissed a petition by the owners of the retail complex on Binghamton's North Side.

FLASHBACK: The Kmart store in the Binghamton Plaza on October 4, 2016. (Photo: Bob Joseph/WNBF News)
FLASHBACK: The Kmart store in the Binghamton Plaza on October 4, 2016. (Photo: Bob Joseph/WNBF News)
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Mayor Jared Kraham announced in July 2022 that the city intended to acquire the 285,000-square-foot strip mall located south of Cheri Lindsey Memorial Park.

Kraham contended the property had been poorly maintained and had become an eyesore for people who lived in the neighborhood.

Speaking at the Binghamton Plaza shortly after the court decision was released, the mayor described the ruling as a "major victory."

Mayor Jared Kraham discussed a court ruling at the Binghamton Plaza on June 6, 2024. (Photo: Bob Joseph/WNBF News)
Mayor Jared Kraham discussed a court ruling at the Binghamton Plaza on June 6, 2024. (Photo: Bob Joseph/WNBF News)
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Kraham said the city has planned to take over the property and demolish the buildings on the site. He said the land could be used to expand park space and to provide new access to the Chenango River.

Mark McNamara, the attorney representing the Binghamton Plaza owner, told WNBF News that he is disappointed by the ruling. He said his client will review the decision and then decide how to proceed.

Inside the former Kmart store in the Binghamton Plaza on February 16, 2023. (Photo: Bob Joseph/WNBF News)
Inside the former Kmart store in the Binghamton Plaza on February 16, 2023. (Photo: Bob Joseph/WNBF News)
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Kraham said the property owner has 30 days to appeal the ruling. He said "I do not anticipate that will happen."

The mayor added "there are several legal steps that have to take place" under eminent domain law before the city could gain possession of the property.

VIDEO: Mayor Kraham discussed the Binghamton Plaza case on June 6, 2024.

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Contact WNBF News reporter Bob Joseph: bob@wnbf.com. For breaking news and updates on developing stories, follow @BinghamtonNow on Twitter.

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