Redevelopment Approves Daley Court Contract

The East Hartford Redevelopment Agency approved the sale contract at a Monday morning special meeting as expected. The video below is interesting. When asked about Chuck Koteen’s involvement in the deal the Chairwoman, Robin Pearson, acted as if she didn’t know who he was. Jeanne Webb, Development Director for East Hartford, on the other hand addressed the question stating that Mr. Koteen is no longer involved and had no role in the project aside from referring the RFP to Sheldon Oaks. Considering that the position Mr. Koteen was penciled in for, Local Housing Consultant, pays $50,000 of federal funds on a redevelopment deal this size I think there is something to think about here. Influence peddling? Political favors? Not in East Hartford. That section of the video is around the 12 minute mark I think.

I managed to talk to Corp. Counsel Gentile in the hall where he stated his belief and that of 2 other unnamed attorneys is that the Redevelopment Agency under C.G.S. 8-137 is allowed to sell property below it’s current use value with the approval of the Town Council. He declined to discuss that particular issue further, perhaps wisely, since it is unlikely we would agree on the interpretation. Interestingly he also acknowledged my complaint from back in June that the the Burnside Redevelopment Plan is expired having not been renewed within 10 years of it’s approval back in 1997 as required by state statute. That means that the Redevelopment Agency no longer has power under the Burnside Ave. Redevelopment plan. It is void and without force which leaves us in a very dangerous situation of uncertainty in whether we can enforce the past Redevelopment Agency agreements which fell under the Burnside Ave. Redevelopment plan. It certainly gives great question to whether the Redevelopment Agency has any authority over this deal at all.

From the contract:

(i)
As an inducement to Redeveloper to acquire, redevelop and improve the Property, the Agency has agreed to sell the Property at a discount to present fair market value.

(a) ·1 the terms, covenants, and conditions of the Agreement, the Agency will sell the Property to the Redeveloper for, and the Redeveloper will purchase the Property from the Agency and pay therefor, the amount of Fifty Thousand and No/100 Dollars ($50,000), hereinafter called “Purchase Price”

Property Assessment as of 06/08/09: $490,870 difference = $440,870
http://brainflation.files.wordpress.com/2009/06/property-card-2009.pdf
I bring up that value because in the absence of any form of appraisal that is the most recent valuation data available. Federal standards now place FHA  appraisal validity at 120 days and in that light our officials ought not even consider a 7 year old appraisals as a reputable source of valuation.

From C.G.S. 8-137, emphasis mine:

The consideration paid for the sale, lease or other transfer of the real property shall be determined by the redevelopment agency, provided, if the cost or carrying charges of such real property to the redevelopment agency are greater than such consideration, the redevelopment agency shall first have specific authorization from the legislative body of the municipality for the sale, lease or other transfer at any lesser consideration, and the municipality may appropriate and authorize the expenditure of money to compensate for any portion of the difference between the acquisition cost of such real property and such sale, lease or other transfer price of such real property at a lesser consideration to a redeveloper, but in no case shall such sale, lease or other transfer price be lower than the use value of such real property.

Daley Court Redevelopment Contract