"Village On The Thames" Groundbreaking Delayed

A groundbreaking for the "Village on the Thames" development at Fort Trumbull has been delayed.

Zak Leavy, executive assistant to Mayor Daryl Finizio, confirmed that the ceremony scheduled for noon at Monday has been postponed. The event was to kick off the development of the first 34 housing units of the planned 103-unit complex.

According to The Day, Renaissance City Development Agency vice-president Karl-Erik Sternlof said the groundbreaking - as well as a closing to transfer the property to River Bank Construction - were delayed after developers did not show proper financing for the project.

The Village on the Thames project seeks to build about more than 70 Greek Revival and Italianate style condominiums on four lots formerly occupied by the Navy Underwater Sound Laboratory. At the RCDA's annual meeting on last month, Robert Stillman - a principal of the Westport company - announced that the company was prepared to begin the first phase of the project by building 15 units on the lot adjacent to the Coast Guard station and 19 units on the lot adjacent to Fort Trumbull State Park. Stillman said at the meeting that the company had secured funding for the project from M&T Bank.

The announcement followed River Bank's purchase of the building permits for this phase, paying the city a permit fee of $83,000.21. 

Plans for the development call for residences to start off as rental properties before transitioning to owner-occupied homes. The City Council granted River Bank Construction a tax abatement for the first part of the project in 2011, allowing a 95 percent exemption on taxes on rental units with the deferral going to River Bank Construction. The percentage would decrease to 50 percent in the sixth year and 25 percent in the seventh year.

The abatement also exempts 70 percent of property tax on owner-occupied units for the first year, with a 10 percent decrease each year thereafter through the fifth year. 

John S. Johnson, second vice president of RCDA, said he thought the Village on the Thames will allow for major revitalization and improvement in New London by offering a stable housing option for residents. 

“Pfizer brought people to town, but it didn’t keep people in town," he said. "This will keep people in town.” 

Johnson said he had not been informed of the delay in the groundbreaking.

"I’m stunned by what you’ve told me, and I’m certainly nonplussed," he said.

Frank McLaughlin, project manager at RCDA, said the organization is holding a regular executive board meeting at 7:30 a.m. on Friday at Harris Place and that this meeting is open to the public.

"I would assume that the delegation that attended the closing will report to the board, and whatever decisions that need to be made will be made following that executive session," he said.

Mayor Daryl Finizio said in a statement that city departments have "done everything required of the city, and more, to ensure this project's success" and would continue to monitor oversight of the issue by the RCDA and Connecticut Department of Economic and Community Development.

Per the terms of the development agreement, RCDA and the State of Connecticut DECD have the sole oversight authority for the project's financing," said Finizio. "The city administration has been in close contact with both the RCDA and State DECD and remains confident that the appropriate oversight of the project's financing is being conducted. If the RCDA and the State DECD have determined that the necessary financial documentation and assurances are not in order, then a delay in closing and groundbreaking for this project is appropriate."

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