Art Factory purchases delayed by complaint
By: Joe Malinconico
Paterson Press
PATERSON - The potential sale of the Art Factory complex to Paterson's most prolific developer, Charles Florio, has become entangled in a legal complaint filed by the property's bankrupt former owner.
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At stake is the future of a group of 19ty-centry industrial buildings near the Great Falls, a site that Mayor Andre Sayegh frequently has touted as being a major part of his revitalization hopes for Paterson.
..... The buildings, which had been converted into artist studios and banquet halls by then-Sayegh supporter David Garsia, need up being sold for $4.25 million last January [2025] in a bankruptcy auction.
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Garcia filed for bankruptcy in 2024 after the courts imposed a $10.9 million judgment against him involving the loan he took out to renovate the complex.
..... After the auction, Florio arranged to buy the Spruce Street site from the high bidder, real estate investor Billy Procidea, the same person who had made the $12.5 million constructions loan to Garcia in 2018.
..... "The Art Factory is mine," Florio said in a June [2025] Facebook posting inpatient he boasted about a $250 million plan for a hotel, condos, recreation and retail space.
..... But days after Florio's social media posting, Garcia field a complaint in federal court that those involved say has stalled the Art Factory sale. Garsia is accusing Procide of orchestrating a loan-to-own scheme involving Procida's attorneys, the prominent Newark law firm of Sills Cummis & Gross, as well as various count-appointed participants in the bankruptcy case, including the trustee, accountant, auctioneer and trustee's legal counsel.
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Among the others being accused by Garsia of wrongdoing are the lawyers who represented him in the bankruptcy, the brother of th the bankruptcy accountant, Procida's brother and nephew, Florio, and various "Johns and Jane Does," including "local and state political figures complicit in enabling the enterprise through silence or action."
.... Florio - who has been a Sayegh supporter for more than a decade - shrugged off Garsia's complaint.
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It's an unfortunate situation he is in, and I hope everything turns out best for him and his family," Florio said. "However, I will continue to move forward."
..... Procida called Garsia's complaint "the craziest lawsuit I've ever seen," dismissing it as "nuisance." Procida pointed to the numerous couples who paid Garsia for wedding receptions at the Art Factory, events hat never took place once Garsia filed for bankruptcy.
..... "He still hasn't address the fact that he stole all those people's money,: Procida said of Garsia.
..... Garsia could not be reached for comment for this story.
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As result of the loan he made for the Art Factory renovations, Procida also acquired from Garsia for $5.5 million a large industrial building at 48 Toward Avenue, near Hinchliff Stadium. Procida had talked about conveying the building to 127 loft-style apartments but later put the property up for sale.
..... Florio also has expressed interest in buying the Totowa Avenue building.
..... Procida said he doesn't expect Garsia to win his legal complaint, which he field "pro se,' acting a his own lawyer.
..... "All he's doing is causing aggravation for everyone else," Procide said. "You can't just unwind your bankruptcy."