Council Rejects Definition Change For Fort Trumbull Project

A request to change the residential unit definition in a development agreement for Fort Trumbull passed the Economic Development Committee of the City Council on Tuesday but failed in a vote of the full council.

The committee voted 2-1 to allow “condominium” to be changed to “common interest ownership unit” in a development agreement between River Bank Construction and the . The vote failed in a 3-3 tie when brought before the City Council.

River Bank Construction of Westport recently received for the construction of 99 townhouse units and one commercial building on four lots at Fort Trumbull. The “Village on the Thames” is designed to emulate Greek Revival architecture of Starr Street as well as Italianate and carriage house styles, provide one to three bedroom units, and be a residential part of a mixed-use neighborhood.

Reasoning for change

The resolution presented to the City Council said the change would “enhance the opportunity to market and sell the residential units by allowing several potential forms of individually deeded ownership allowable under the Common Interest Ownership Act.”

Karl-Erik Sternlof, first vice president of NLDC, said River Bank Construction is close to applying for financing for the project. He said the construction company’s attorney determined that the definition change would help the company achieve financing and allow for the easier withdrawal of rental units for sale.

Sternlof said the distinction was a technical one, and that a common interest development unit includes condominiums as well as co-ops, planned units, and other types of residences under its definition. He said the change would mainly affect how ownership of common areas such as recreational amenities is determined.

Economic Development Committee Chairman Adam Sprecace said one argument against the project had been that the city will not receive enough tax revenue for municipal services provided. He asked if the definition change would affect that and if it could allow for income restricted or Section 8 housing at Fort Trumbull.

Sternlof said the cost and size of the townhouses could not be supported by the rents in these types of housing. He said the project aims to rent some of the townhouses to start and move toward owner-occupied housing, and that the change in definition would ensure that River Bank is not constrained in making sales.

“It would be a financial catastrophe for the developer to go any other way than eventual sale of these units at market rates,” said Sternlof.

Tax abatement concerns

Councilor John Maynard, who cast the one vote against approval on the Economic Development Committee, said he was concerned with River Bank’s ultimately successful on the units.

“I don’t think we need any more rentals in the city of New London,” said Maynard. “We’ve got enough of it.”

Sternlof said he was not part of the abatement process, but that the development plan allowed River Bank to make the request.

Resident Dennis Downing said during public comment portion of the committee meeting that he was concerned about how the definition change would affect the abatement. Downing said he would like NLDC to assure the city in writing that the redefinition would not allow separate buildings to be classified as one unit, thereby reducing tax revenue.

“As I sit here and listen to ‘Nothing’s going to change,’ it makes me wonder why there has to be a change,” said Downing.

Resident Larry Hample said he was also concerned about how revenue could be affected by the redefinition and abatement.

“This is an absolute waste of property,” said Hample. “You people do not understand the value of property in this town. You’re just giving it away.”

Sternlof said the new definition would not affect the number of units or tax revenue.

“Your primary concern that it somehow ends up with one unit is not true,” he said.

Council vote

Several city councilors sat in on the committee meeting, and the remainder heard a summary from Sternlof prior to the vote. The committee vote of 2-1 had Sprecace and Council President Michael Passero in favor and Maynard opposed.

This divide remained in the 3-3 tie in the full council vote, with Councilor Donald Macrino in favor and Councilors Marie Friess-McSparran and Anthony Nolan opposed. Council President Pro Tempore Wade Hyslop Jr. was absent on Tuesday.

When asked by Nolan what a rejection of the redefinition would entail, Sternlof said it could make financing the project more difficult. Sprecace said the item may return to the agenda of the next City Council meeting on Jan. 17.

Correction: The original article erroneously reported that Dennis Downing is a member of the Planning and Zoning Commission. The error has been corrected.