seaside regional center

Seaside property again offered to developer

By Patricia Daddona

January 12, 2006 - The Day, New London, CT

 

Jan. 12--WATERFORD-- Lawmakers and town officials have persuaded a state commissioner to again offer the former Seaside Regional Center to the town and a preferred developer before putting it on the open market.

Seaside, a former residential facility for the mentally retarded, is contaminated with lead and asbestos but is listed on the National Register of Historic Places. The property encompasses 36 acres fronting Long Island Sound.

In 2004, two state appraisals put the property's fair market value at more than $7 million, substantially more than previous appraisals. The town's assessor has set the fair market value of Seaside's land and buildings at more than $22 million.

On Wednesday, James T. Fleming, commissioner of the state Department of Public Works, reversed a decision announced last month to bypass preferred developer Mark Steiner, president of Healthcare Consulting Corp. of Farmington, and seek bids on the open market.

The Public Works Department is responsible for the disposal of the state's surplus property. Since 2000, Steiner had been planning to turn Seaside into an exclusive retirement community.

Fleming said he has agreed to give the town another chance to buy Seaside and, if the town declines, to offer it to the preferred developer. If Healthcare Consulting is no longer interested in the property, the state will put it on the market, Fleming said.

"My priority is to follow the state statute and protect the state's interest," Fleming said. "And, at the same time, having understood what the town's and state lawmakers' positions are, they have been very persuasive. If we can do it this way, it protects the town."

The decision to give the town another chance to buy Seaside stems from the recent increase in its value. State law requires the Public Works Department to make a new offer to the town since the property's sales price, a key term of a contract, likely would change because of recent appraisals, Fleming said.

Early Wednesday morning, state Sen. Andrea L. Stillman, D-Waterford and state Rep. Betsy Ritter, D-Waterford, met with Fleming in a session they sought in December after learning the state did not intend to honor the public bidding process that resulted in the selection of Steiner's firm as preferred developer five years ago.

At the time, Steiner threatened to sue.

"It was important to have that face-to-face meeting," Stillman said Wednesday. "(Steiner) was the preferred developer, one of record, and deserves consideration. I feel we did get a commitment for as open a process as possible."

Ritter said she was "reassured" by Fleming's "commitment" to "basic fairness" and the likelihood that the project won't "sit and languish" as it has during Gov. M. Jodi Rell's administration, when the proposed sale was under review. Fleming did not explain that review process, however, she said.

"Steiner had gone ahead and gotten zoning approvals for his project," Ritter said. "To turn him away and give him nothing for that seemed unfair." Wednesday's decision, however, "still doesn't explain all of this commotion over the past year. At this point we can't buy that time back. The important thing is that we're able to go forward with a fair process."

Fleming declined to elaborate on why he changed his mind. He said he is not free to explain the state's negotiating position "because the state will at some point be in negotiations with some party."

First Selectman Daniel M. Steward and Town Attorney Rob Avena also attended Wednesday's meeting, as did OPM Secretary Robert L. Genuario, and staff for the OPM and the DPW.

Fleming cited a confidentiality agreement he signed with regard to the potential sale and said he has asked Stillman, Ritter, Steward and Avena to sign it.
Steward said late Wednesday that he expressed his concern to Fleming that while the state is responsible for maintenance and security of surplus property like Seaside, the town is liable for any emergency response, including a potential fire or injury to a trespasser.

"What I portrayed today was a concern for safety for our people that are down there, (like) firemen," Steward said. "It's dangerous if not supervised properly. Our interest was also that the public gets a clear picture (of the marketing process) and he agreed to do that."

As the DPW proceeds with the disposition of the property, Fleming said he will get updated appraisals and make a formal, written offer to the town. The town will have 45 days from receipt of the offer to make a decision, and could ask for more time, Fleming said.

"If the town takes a long time, (DPW) could talk to the developer but still deal directly with the town," he said.

If the town again refuses to buy the property, Fleming said he would "go back to the preferred developer and offer Seaside on the exact same terms we offered it to the town," as required by law.

Steiner said Wednesday he would wait to hear from state officials directly on how they plan to proceed with a sale before commenting on Fleming's latest decision.

 

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