Video: Town Council Special Meeting 11-12-09
Video: Town Council Special Meeting 11-12-09
Council approves Daley Court contract.
The East Hartford Town Council met at a special meeting on Thursday evening to review and approve the previously posted contract for the Daley Court property. The contract gives New Samaritan 2 years to secure their funding and get to work. It seems this project is not quite so urgent after all.
The meeting, video below, went as expected with a couple notable bits. First, despite the Republicans voting unanimously against this deal back in June all three voted in favor of the deal at this special meeting.
The next interesting bit pertains to our town legal counsel Richard Gentile. I am becoming increasingly concerned with the opinions that are coming from him. Mr. Gentile changed his position on 8-137 to agree with my interpretation of the law, which is that the Redevelopment Agency may not sell a piece of property for less than its use value, even if the Council approves it. Mr. Gentile then went on to give a wholly unqualified opinion of the current use value of the property to justify the sale price to New Samaritan. All the Redevelopment Agency needs to do to comply with the law is get a qualified opinion of the current use value from a licensed commercial appraiser. If it’s 50K or below, great. If not, get what the taxpayers deserve for the property. We must start following the law here in East Hartford.
The issue of the Burnside Redevelopment plan’s status came up as well. Mr. Gentile goes on to claim that the Council must only review the plan and by approving past actions in the Redevelopment zone that satisfied the statute. Mr. Kehoe, to his credit, did not waffle on the issue and grabbed a copy of the Connecticut General Statutes which are conveniently in the Council Majority Chamber. A quick perusal of the relevant statutes verified that the Council is in fact required to re-approve or amend the plan at least every 10 years in order for the plan to remain in effect. The East Hartford Redevelopment plan, having not been re-approved or amended since 1997, is no longer in effect which puts us at risk as tax payers.
I have recommended that this situation be corrected immediately. With no plan in effect the Redevelopment Agency does not have the statutory authority to take the actions they have and they may not have the authority to enforce existing redevelopment deals.
Unfortunately, even after agreeing that the plan was expired the council voted to authorize the contract under the Burnside Plan. Insanity.
We need four things to happen here and quickly.
1st: The Redevelopment Agency needs to approve a replacement redevelopment plan for the Burnside Corridor and send it to the Council for approval.
2nd: The Redevelopment agency needs to secure an appraisal of the use value of 590 Burnside Avenue. Currently the Redevelopment Agency has absolutely no data to establish a use value on Daley Court and therefore cannot comply with the statutory requirement to sell for a minimum of the use value.
3rd: The Redevelopment Agency & Council need to re-approve this deal under the authority of the NEW development plan to ensure it is enforceable. Although I disagree with this particular development plan it is their prerogative to select it if they choose.
4th: Our town legal counsel must start being straightforward and strict with interpretations of the law. It might give the Mayor or someone else credibility to say the legal counsel said a particular action was ok, but that isn’t going to help should we end up in court.
Thanks to Eric Thompson for asking questions. Glad you are back in there.
Redevelopment Approves Daley Court Contract
Video: 11-09-09 East Hartford Redevelopment Meeting
The East Hartford Redevelopment Agency approved the controversial Daley Court contract on Monday morning.
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
11-12-09 Special Meeting – Daley Court
DATE: November 10, 2009
TO: Town Council Members
FROM: Rich Kehoe, Chair
RE: Thursday, November 12, 2009 5:00 P.M. Town Council Majority Office
In accordance with Section 3.3 (a) of the Town Charter, a Special Meeting of the Town Council will be held as follows:
Thursday, November 12, 2009
5:00 P.M.
Town Council Majority Office
The purpose of the meeting is to meet for discussion and possible approval of the Redevelopment Agency contract for the sale of 590 Burnside Avenue, a/k/a Daley Court, pursuant to Connecticut General Statutes 8-137.
cc: Mayor Currey Jeanne Webb, Director of Development
_______________________________________________ You are subscribed to the Public Notices mailing list.
To unsubscribe from this list: http://www.ci.east-hartford.ct.us/subscriber
Secret Daley Court Contract Vote Tomorrow
A lot has happened on Daley Court since June which I have been unable to share thanks the the blog hiatus.
It was revealed that the developers lied to the Council about the urgency of the property transfer approval. They had said they had a HUD application deadline in July and yet the application period was not even announced by HUD until September.
My FOI complaint against the Real Estate Acquisition & Disposition Committee was heard with an interesting twist. The decision has yet to be released. In summary, the Town argued that it had in fact failed to follow the law but that the remedy I asked for, nullification of the meeting, shouldn’t be implemented because the meeting didn’t matter. Odd logic, we’ll see if the FOI Commission agrees.
I and others have been trying to get further updates on the process since June but the Development Department and Redevelopment Agency have gone into full secrecy mode in response to the public scrutiny.
Another interested party received this email on Friday in response to an inquiry on the contract:
DALEY COURT AGREEMENT
<jwebb@ci.east-hartford.ct.us>
Fri, 6 Nov 2009 10:28:39 -0500
<Fctopresident@aol.com>, <bfairbairn@ehmchm.org>
<RPearson@shipso.com>, <jryan06@snet.net>, <DanielMDube@aol.com>, <Ddube@ci.east-hartford.ct.us>, <ellenmcccpa@aol.com>, <emccreery@hartford.gov>, <gamaine@gmail.com>, <MCurrey@ci.east-hartford.ct.us>, <ewolfe@sheldonoak.org>, <RPGentile@ci.east-hartford.ct.us>
Mrs. Kneip; I have received your request of November 5, 2009 // 10:35 AM to peruse the draft contract regarding New Samaritan Corporation and Sheldon Oak Central. This contract is referenced on the Agenda of the Special Meeting of the Redevelopment Agency scheduled for November 9 at 8:30 am. The contract is still in draft form and terms are still being negotiated. Disclosure of the draft could impact the Agency's negotiating stance for this sale. Accordingly, pursuant to C.G.S. 1-210 (b) (i), we will not be releasing the draft. Sincerely, Jeanne Webb Director of Development & Planning Town of East Hartford 740 Main Street East Hartford, CT 06108 phone 860-291-7303 fax 860-291-7298 cell 860-305-5757 e-mail jwebb@ehworks.com website: www. ehworks.com
The Redevelopment Agency has a special meeting for approval of a contract scheduled for tomorrow morning and yet as of Friday was still claiming the contract was a “draft” and exempt from public disclosure under FOI because it might impede their negotiating stance. Hmm, I thought they had agreed to a deal back in June which is why the Council pre-approved whatever contract might come down the pike. Maybe the Council shouldn’t be so liberal in approving contracts it hasn’t seen.
It also came to light that the Redevelopment agency has failed yet again to file its minutes in a timely fashion. The 10/21/09 minutes were just published on 11/06/09. Considering the money Mr. Jeff Currey, as clerk, gets for the responsibility, $100 per meeting, you’d think it wouldn’t be such a problem.
The minutes had this to say:
MOTION by Mr. Ryan, seconded by Mr. Maine that on a recommendation from Corporation Counsel and in accordance with Connecticut General Statutes, the draft version of the agreement pertaining to 590 Burnside Avenue will not be released to the public until a final agreement is approved by the Redevelopment Commission.APPROVED UNANIMOUSLY
Why do they feel the need to hide this transaction from further public scrutiny? You decide.
I’d still like to know how the Redevelopment Agency can approve this sale for 50,000 and still be in compliance with CGS 8-137. There has been no appraisal done, other offers for more money were received and the town assessor just assessed the property at much higher than the selling price.
From CGS 8-137:
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 re-developer, but in no case shall such sale, lease or other transfer price be lower than the use value of such real property.
I hope with all sincerity that Councilman Thompson will be more vocal this term and the addition of Sue Skowronek will mix things up.
