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Tuesday, February 7, 2012

Have we lost our way? > A Timeline



Introduction

The purpose of this time-line is to illustrate how Ridgefield's legislators have handled the 8-30g housing issue and how that resulted in the purchase of the Schlumberger property and the beginnings of the 8-30g alley that will eventually extend from the route 116 to the corner of Gilbert and Main.

The authors have done their best to document all known events via public records, documents and statements. If there is an error, it is UN-intended.

However, we do have a point of view and it is that had there been more foresight, strategic thinking and better management of this issue, Ridgefield would not be facing it's current situation of being saddled with an $11-$12,000,000 investment for a troubled piece of property under the guise of 'controlling our destiny' while having our hands tied over a concentration of 8-30g housing that will most certainly line part of Main Street within the next few years.

How could this have been avoided? By applying for and successfully attaining a four year moratorium on 8-30g high density building which would have given town planners and administrators time to develop an overall strategy that might have resulted in a better integration of 8-30g housing into our community, including on the Schlumberger property.

To begin with, it needs to be understood that it is the Board of Selectmen who must initiate a study and fund an 8-30g housing moratorium. They have now done that, four and a half years after it was first mentioned.

2007

August 27, 2007

Memorandum: The Town of Ridgefield was shown on the “2006 Affordable Housing Appeals Procedure List” (posted on-line by the CT Department of Economic and Community Development) as having 8,877 dwelling units (based on the 2000 Census) of which 160 units qualify as “affordable” under the criteria listed in §8-30g of the Connecticut General Statutes. This means that 1.8% of Ridgefield’s housing stock are counted by the State as “affordable.”

This was at the height of the Eureka litigation which 'sort of' resolved in February of 2008. During that period it was determined that mixing the ongoing litigation with the pursuit of an 8-30g moratorium might not be in the town's best interests.

There was no activity in regards to the high density 8-30g housing issue for the next two and a half years.
2010

December

An 8-30g application for 9 units located at 613 Main Street is approved.

2011

June-July

Ridgefield Press article by Macklin Reid:

"Planning and Zoning Commission Chairwoman Rebecca Mucchetti told the selectmen last week. "What we've seen in the last year is a real focus on Main Street."

Under 8-30g, projects in which at least 30% of units meet the state's affordability guidelines are exempt from most zoning rules, and towns can only turn them down on "health and safety" grounds.

"Our concern is, we can't consider the impact on the town. We can't consider the impact on neighborhoods," Ms. Mucchetti said.

Last Wednesday Ms. Mucchetti and Town Planner Betty Brosius told the selectmen they thought the town could qualify for a four-year moratorium on new applications under the state law.

A municipality may apply to the state for the moratorium if 2% of its housing qualifies as "affordable" under state rules.

In Ridgefield, that 2% means 188 of the 9,420 housing units counted in the 2010 census, Ms. Brosius said.

"I believe we're over 2%," she told the board.

From the same article:

"Our great concern is what's happening on Main Street," Ms. Mucchetti told the selectmen. "...We are aware of two or three more possibly in the pipeline."

July 5, 2011 A follow up Letter to Mr Marconi from the Town Planner confirms Ms. Murchetti's statements about being “over 2%” which makes it practical to pursue a four year moratorium on 8-30g (high density) housing construction.

There was no legislative follow up to this information.

Meantime, another 8-30g application for 14 units at 7-9 North Salem Road is received by Planning & Zoning.
September

September 7, 2011 BOS meeting - Mr. Marconi introduces a resolution to purchase 30 acres of the Schlumberger property, with an unnamed developer purchasing the balance of the property.

When Selectmen Bodner suggests that the Town buy the entire property, R. Marconi responded that the Town of Ridgefield is not in the real estate business. We should not be dividing up the property.

We received complaints about this with regard to Bennett’s Farm. We do want to continue to retire our debt service.

September 20, 2011 Water Pollution Control Authority Minutes – The Chairman, ”Mr. Caldwell stated that he had discussed with Mr. Marconi potential sewer use units for the Schlumberger property.”


October

October 5, 2011 Minutes: R. Marconi introduced and read the following resolution:
RESOLVED: That the resolution entitled “Resolution Appropriating $7,000,000 For The Acquisition Of 45 Acres Of Land From Schlumberger Technology Corporation On Old Quarry Road In The Town Of Ridgefield And Authorizing The Issuance Of $7,000,000 Bonds Of The Town To Meet Said Appropriation And Pending The Issuance Thereof The Making Of Temporary Borrowings For Such Purpose”, a copy of which is attached hereto, is hereby approved and recommended for adoption by the legal voters of the Town at a referendum to be held pursuant to Section 3-10 of the Town Charter on December 6, 2011 between the hours of 6:00 o’clock A.M. and 8:00 o’clock P.M.(E.S.T.).

Ms. Manners indicates that controlling the property neutralizes the threat of high density, i.e. 8-30g development.

The BoS approves taking a resolution authorizing the issuance of $7 million in bonds for the purchase of the Schlumberger property.

October 19, 2011 At a public meeting concerning Schlumberger, the town's consulting engineer presents a site plan indicating that 290 units is the maximum number that can be built on the property.

B. Manners stated how 290 affordable housing units could result in 290 units x up to 5 stories”

Mr. Marconi states “The Town of Ridgefield plans to spin off ten acres (Sunset Lane parcel) for development in order to get some income from the property as soon as possible with perhaps 17 – 18 single family units and 2 apartment buildings”

In response to a question R. Marconi responded that the hope is to offer for development the ten acres within 6 months to 3 years”


November

November 7, 2011 Special Town Meeting minutes, In response to a question from the floor Controller Kevin Redmond responded that the service on $7 million is about $465,000 a year. Mr. Marconi added that $60,000-$80,000 a year for minimal
maintenance pushing the annual carrying cost over $500,000.”

"Mr. Marconi informed the audience that as for future municipal uses, the Town might keep some land to preserve this potential, but the Selectmen have no near-term plans for
anything."

November 16, 2011 WPCA Minutes - Chairman Caldwell states that “The sewer use allocation for this property is 59 use units. Mr. Caldwell (chairman) requested that the Town of Ridgefield inform the WPCA of their specific future needs to be implemented into our Facilities Plan.”

There is no further detail about what this means in terms of sewer usage. Is there currently enough capacity or will the system need to be expanded to accommodate the contemplated uses for the property.

Coincidentally, the commission will soon begin a lengthy process to upgrade the South Street plant. This is mandated by the state every 20 years.

November 26, 2011 Morning and afternoon public tours conducted at the Schlumberger Property by the First Selectman and board members.


December

December 3, 2011 Two more public tours are held at the Schlumberger Property. A visual inspection of Phillip Johnson Building by one of the authors of this document, a real estate professional, indicates significant water damage. It appears a new roof and skylights will be required. No capital budget provided for voter’s review.

Mr. Marconi indicates that a private art collector has approached the Town about using the Phillip Johnson Building to store his private art collection and uses this as an example of the interest that preserving the building could offer.

December 6, 2011 The Town voters approve the issuance of $7 million in bonds to purchase the Schlumberger property.

From the Ridgefield Press: “The selectmen must vote again at the end of the due diligence period on whether to go through with deal, and only after a second positive vote by the Board of Selectmen will the negotiated agreement for the purchase become final.”
At First Selectman’s direction, $7 million in funds drawn through BAN notes before the final contract between Schlumberger and the town has
been completed and before due diligence has been completed.

Under 8-30g, a new high-density building application is submitted for 16 units to be built on a small lot located at 593 Main Street.

2012

January

The sales contract with Schlumberger is amended to permit an extended due diligence period and designates the Sunset Lane Parcel for “Form III” status requiring further remediation than originally assumed. This process could take up to eight years and would preclude selling the Sunset Lane parcel, and hope for any quick return on investment.

January 06, 2012 Ridgefield Press article including direct quotes from Selectman Bodner:

The rationale for buying the Schlumberger property was to control our destiny as it related to the risk of high density housing in the middle of town,” he said in an email following the vote.
Potential numbers as high as 500 units were suggested at public hearings. I now believe that the realistic number is quite a bit less.”
He also felt the growing number affordable housing projects proposed on smaller sites around Main Street and in village changed the context.
I believe that as many apartments as the market will bear are likely to be built,” he said, “and frankly, if I was given the choice of locating them at Schlumberger versus on Main Street, Schlumberger would have won, hands down.”
Part of the justification for the purchase was the expectation that a substantial portion of the investment would be recouped quickly through the sale of a 10-acre parcel, which it now appears that the regulatory process could delay for as long as eight years,” he said.
First Selectman Marconi said under the new agreement — as under the original — the selectmen would still have an the opportunity to decide not to go through with the purchase. “

January 13, 2012 Ridgefield Press article: This week Ms. Mucchetti expressed frustration that the selectmen hadn't taken up the moratorium initiative sooner. She and commission Vice Chairman Patrick Walsh had taken the idea to Mr. Marconi on June 24, she said, when the commission was starting the hearing process for the North Salem Road project.

"We told him we knew, as we reviewed this one affordable housing project in front of us, that others were waiting and watching," she said.

"We had the records, and we gave it to him and encouraged him to follow up...

"He indicated to us he wanted to go forward and pursue it. That was in June," Ms. Mucchetti said, "and then we didn't hear anything."

Asked about it this week, Mr. Marconi confirmed that he'd talked to the zoning officials about it in the summer.

"We had a meeting on it, but there wasn't any urgency," he said.

Due diligence continues, results only available in executive session. No records, recordings or minutes are kept as is customary in executive sessions.

January 17, 2012 Board of Finance meeting, “The BOF is unable to determine which account held the Schlumberger BAN money and the $4.3 million refund from CL&P. Mr.
Ulmer said he would talk with the Treasurer and find out.”

Terms of the amended contract now require Schlumberger to provide Ridgefield a copy of the Form III Remediation of the 'A' Parcel of 30 acres. This document is to be filed with State of Connecticut DEEP (Department of Energy and Environmental Protection) outlining existing conditions and the cleanup plan. No copy is made public and as of this date, the authors have not verified that this has been completed.


February

Board of Selectmen approves the hiring of outside legal counsel to prepare an 8-30g moratorium application (first discussed in 2007, again in 2008 and June of 2011).

February 7, 2012 Schlumberger due diligence period expires and town requests an extension until February 8th so the entire Board can cast their final votes on whether to proceed with the purchase or walk away from the Schlumberger deal.

As per the updated contract, Ridgefield is to provide $3 million at closing with an additional $3 million to be held in escrow until a licensed environmental professional hired by Schlumberger certifies the cleanup is complete. Schlumberger is entitled to interest earned on this escrow.

Addendum and opinions

The Board of Selectmen's original goal in purchasing the property was to prevent UN-desirable over development, represented by 8-30g housing, which was grossly exaggerated at the time.

Moreover, the entire property is problematic, requires complete environmental remediation and state regulatory sign-offs before it can be sold for residential use, at which time Ridgefield might recoup some of its investment.

This process could take up to eight years during which Ridgefield is saddled with an additional $11-12 million dollar debt that includes in excess of $500,000 annual carrying costs. Which budget will be impacted by this additional burden?

For all these reasons we believe the sale should not go through.

Instead the Town should try to negotiate a contract for the 'right of first refusal' in 8-10 years after the property is fully cleaned by the seller and vetted by the required state agencies and is ready for sale.

Meanwhile, the Town is no further along in developing an overall strategic plan for managing growth in Ridgefield, and mitigating the impacts of the 8-30g housing blitz which gains momentum, even as you read this.

And who knows, in 8-10 years, with some careful planning, Ridgefield may be able to prove 10% of our housing qualifies as 8-30g which will then exempt us from any further such construction.

Or the 8-30g law may be modified in some way.

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