Tuesday, April 23, 2024

Developer Joseph Perroncello seems to have made peace with Webster Bank, which holds the $15.5 million first mortgage on his troubled Cambridge Crossing project at Yerxa Road and Rindge Avenue.

With Webster frustrated by Perroncello’s request for an extension instead of filing a reorganization plan to exit Chapter 11 bankruptcy protection, the sides were headed toward a showdown Thursday in Boston court. But on Monday they filed a joint motion to cancel that hearing.

Instead of battling in front of federal bankruptcy Judge Frank J. Bailey, the sides have asked him to approve a plan under which Perroncello would pay the bank $9.3 million by Monday or $9.9 million by May 13 or the bank gets to hold its thrice-delayed foreclosure sale May 25, after which Perroncello would owe no more than $2 million.

“The debtor shall have no further recourse against Webster Bank and waives any and all right to such further relief from this court or any other court,” the agreement says, referring to Perroncello.

The agreement, after signing by the judge, would take effect April 25.

The 2.2-acre, L-shaped site consists of three buildings, all part of a former Catholic school and convent: one at 45 Yerxa Road in which 14 of 19 apartments are occupied; and two at 120 and 122 Rindge Ave. that will add 44 apartments. The developer describes the site as being 75 percent done and needing $3.5 million to get it the rest of the way. He says he has already put in $9 million of his own in addition to the bank’s $15.5 million.

Neighbors have called the construction a six-year nightmare of mess and rats, after-hours work and cracking foundations, but complaints have dropped off over the years as Perroncello has been dragged into compliance with city laws — including after a seven-month criminal case resulting from unclean conditions at the construction site — or as people have simply wearied of the fight.