RCDA Votes To Find Fort Trumbull Developer In Default Of Agreement

A disagreement between the Renaissance City Development Corporation and a developer looking to build 103 housing units at Fort Trumbull deepened Thursday as RCDA’s executive board unanimously voted to find River Bank Construction in default of a development agreement.

RCDA president Michael Joplin said the vote is part of a process outlined in an agreement between the organization and Westport-based company following a dispute over funding for the project. River Bank previously planned to finance the first phase of the development through M&T Bank, a plan that received the approval of the RCDA and Connecticut Department of Economic and Community Development.

Last week, shortly before a groundbreaking ceremony scheduled at the peninsula, River Bank presented the RCDA with an alternate plan to finance the project through the personal assets of Irwin Stillman, an owner of River Bank Construction. The RCDA board delayed a groundbreaking scheduled for Monday after rejecting a conversion to the self-financing option.

River Bank has also asked RCDA to waive a clause in the agreement that would require the company to revert title to the organization if it does not build at the site.

Thursday's vote authorizes RCDA’s attorney to notify River Bank’s attorney of the default and take other action as may be deemed appropriate. RCDA vice president Karl-Erik Sternlof said the vote is part of a detailed process set out in the agreement with the company.

“If having met and we can’t resolve it, it moves on to mediation,” he said.

Joplin, expressing frustration over the disagreement, said preparations for the development have been proceeding for two-and-a-half years. He said the board will also likely meet on the matter next week.

“Hopefully we’ll figure something to meet about, and hopefully we’ll have some progress on this issue,” he said. “I would still rather see this move forward rather than fail, despite the constant aggravation.”

At its regular executive board meeting last Friday, the RCDA unanimously voted to reject the alternate financing proposal. Sternlof said self-financing is allowed in the agreement and that the company has brought up the possibility of taking this option to fund the project, but that the information was provided too soon before the groundbreaking to confirm to the RCDA and DECD whether the company could provide adequate assurances that it would be able to meet its obligation through self-financing.

The Village on the Thames plan calls for development to take place on four lots at Fort Trumbull that once held buildings of the Naval Underwater Sound Laboratory. The groundbreaking was to kick off the first phase to build 34 units, with 15 on a lot adjacent to the Coast Guard station and 19 on a lot adjacent to Fort Trumbull State Park.

“The project itself has substantial merit,” said Joplin. “It’s actually a shame if this project doesn’t go through. It’s a great thing. It would be a great thing for the city. It would be a great thing for the MDP [Municipal Development Plan] area.”

River Bank has already paid the city $83,000.21 for building permits related to Village on the Thames. Tammy Daugherty, director of the Office of Development and Planning, said the funds cover municipal costs involved in development. These include planning, which the city has been involved in, and inspections, which would not take place until construction begins.

“If they were to get a refund, it would be the money we haven’t spent yet,” she said.

Councilor Adam Sprecace, who also attended the meeting, said he was disappointed with the delay but that the RCDA also has to consider the city’s interests in its decision.

“It was an unfortunate but necessary action, given the circumstances,” he said.

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