NY Sen. Skoufis requests AG investigate $4.6M sale of South Blooming Grove mayor's home

Erin Nolan, Times Herald-Record
·2 min read
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VILLAGE OF SOUTH BLOOMING GROVE – State Senator James Skoufis is requesting New York Attorney General Letitia James investigate the 2022 sale of Mayor George Kalaj’s three-bedroom home for $4.6 million.

In a letter to James, Skoufis questioned if Kalaj still lives in the village − as is required by state law in order to hold office − and expressed concern about how the 2,026-square-foot home and the 21 acres it sits on would be used in the future.

Orange County property records show that South Blooming Grove Mayor George Kalaj sold his three-bedroom house, pictured here on March 30, 2022, and its 21 acres in the village for $4.6 million on March 7, 2022, one week before he was re-elected in an uncontested race for a four-year term.
Orange County property records show that South Blooming Grove Mayor George Kalaj sold his three-bedroom house, pictured here on March 30, 2022, and its 21 acres in the village for $4.6 million on March 7, 2022, one week before he was re-elected in an uncontested race for a four-year term.

“Transparency regarding this real estate transaction as well as clarification of the mayor’s current residence is long past due," Skoufis wrote in the letter. "In order to protect the electorate of South Blooming Grove, I respectfully request your office’s immediate intervention.”

Skoufis also noted that Kalaj has not been present at the majority of public meetings in recent months.

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The mayor's former home, which is located at 58 Fort Worth Place, was sold in March of 2022 for 10 times the estimated market value to a newly formed limited-liability company called Fort Worth Holdings LLC, according to Orange County property records. The sale took place just one week before Kalaj won an uncontested re-election race.

Kalaj, who was first elected mayor in 2020, is currently renting his former house from the group that bought the property, according to village attorney Scott Ugell.

George Kalaj
George Kalaj

"The mayor still rents the house and he still lives in the house, and it is crystal clear that the mayor lives in the house," Ugell said on Tuesday morning.

Ugell previously refuted speculation that Kalaj did not live in the Village.

Kalaj did not immediately respond to an emailed request for comment.

Wednesday, March 30, 2022 - Orange County property records show that South Blooming Grove Mayor George Kalaj sold his three-bedroom house and its 21 acres in the village for $4.6 million on March 7, one week before he was re-elected in an uncontested race for a four-year term.
Wednesday, March 30, 2022 - Orange County property records show that South Blooming Grove Mayor George Kalaj sold his three-bedroom house and its 21 acres in the village for $4.6 million on March 7, one week before he was re-elected in an uncontested race for a four-year term.

Five days after the sale, a Kiryas Joel-based Yiddish-language newspaper reported that the group that bought the former mayor's home plans to build a religious school, wedding halls and other community structures on the property.

Kalaj's former home borders the Orange County-owned Gonzaga Park. The county recently sued the village of South Blooming Grove and its contractors for beginning to build a road through the park without the proper permits and authorizations. The new road would create a shortcut to one of the main entrances to Kiryas Joel.

Erin Nolan is an investigative reporter for the Times Herald-Record and USA Today Network. Reach her at enolan@gannett.com

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This article originally appeared on Times Herald-Record: NY senator requests investigation into $4.6M sale of mayor's home