TOWN OF SOUTH WINDSOR
WORK SESSION MINUTES
TOWN COUNCIL MONDAY, DECEMBER 3, 2012
COUNCIL CHAMBERS TIME: 7:00 P.M.
1. Call Meeting to Order
Mayor Delnicki called the meeting to order at 7:00 p.m.
2. Roll Call
Members Present: Mayor Thomas Delnicki
Deputy Mayor Gary Bazzano
Councillor M. Saud Anwar
Councillor Cindy Beaulieu
Councillor Kevin McCann
Councillor Janice Snyder
Councillor Keith Yagaloff
Members Absent: Councillor Edward Havens
Councillor Cary Prague
Also Present: Matthew B. Galligan, Town Manager
Dwight Johnson, Town Attorney
Keri Olson, Town Attorney
3. Public Participation
Mr. Mike Sullivan, 24 Jared Court stated he is concerned with how the Town decides to expend resources or energy into different projects. The elementary schools should take priority for the Town Council and Board of Education over the Recreation Center that is being proposed. There has not been a substantial update regarding the Connecticut Studios project. Mr. Sullivan then questioned if Town resources are being expended to validate different projects, why is that information not shared with the public.
Attorney John Evans from Pittsburgh and with the Law Firm of Leech, Tishman, Fuscaldo & Lampl came forward representing the interests of DCK North America, LLC who has a first mortgage on the project property in connection with a pre-development loan that was given to the developers, Connecticut Studios. This project has been tracking positively. Progress is being made and efforts are being expended by Connecticut Studios in order to make this project happen. Attorney Evans stated that DCK does not agree that anything being done by the Town to extend its reversionary interest is of any legal significance. It is DCK’s position that by the terms of the deeds themselves, the construction started on the site prior to October 25th meeting and that fully divested the Town of any
reversionary rights. If necessary, DCK will take their own steps to protect their interests. Like the Town, DCK is frustrated with the pace of this project and would like to be included in discussions that are intended to move this project forward.
ITEM:
3. Public Participation (Continued)
Mr. Mike Sullivan, 24 Jared Court stated he understands DCK may have extended a mortgage to the property but thought DCK is also a contractor or engineer that is working for Connecticut Studios. Mr. Sullivan wondered what the interests of DCK are not only as a mortgage holder, but apparently as a contractor who is going to do some of the work.
Mr. Al Larson, 46 Jacques Lane, came before the Town Council to discuss the Recreation Center. It has been implicated that the indoor pool should be a money maker or the Town should not do it. It has been know from the start that the Recreation Center and the pool would not be big revenue producers, nor should they be. The Recreation Center would be another asset in the Town inventory. The Town of South Windsor needs an indoor pool which the Town’s surveys have shown it is one of the top priorities to residents. The Town needs an additional gym, more meeting space, activity rooms and the Seniors deserve a larger Senior Center which is their own. At the October Town Council meeting the folks talking about hockey presented their plans, but the Recreation Center plan was not presented
and still has not been. It was alarming to see that two Councillor’s already rejected the partially presented proposal in the press before it was properly proposed or fully vetted. At the November 19, 2012 Town Council meeting it was stated there is no project yet and the Town Manager was requested to provide cost estimates and background information. Mr. Larson stated he hopes to get this analysis from the Town Manager or an impartial third party so an accurate revenue, operating expenses and bonding costs can be determined.
4. Communications
Mayor Delnicki recognized two new Eagle Scouts, Matthew Braddock and Daniel Cohen. These two men have attained the Eagle Scout award and have a lot to be proud of as do their folks. Farmington Bank had their grand opening. Mr. Larry Skilton retired from the Volunteer Fire Department after 54 years of service and South Windsor High School celebrated its 50th Anniversary.
On December 15, 2012 the Wreaths Across America Ceremony will be held at VMP at 12:00 p.m. and after the ceremony there will be wreaths placed on grave stones of veterans.
5. Town Manager’s Report
This item was deferred to the Regular Meeting.
ITEM:
6. Items for Discussion
Answering questions from the Council, Mr. Galligan explained that he received a copy of the Power Purchase Agreement but it was not signed. This document has been changed and it looks like a good agreement that could provide a lot of tax revenue to the Town, but it is still not finalized. The appraisal is in draft form and has been sent out to all the necessary parties for their comments. The final financing commitments will be complete after the appraisal is done in final form. The Town has not received the guaranteed maximum price contract for both the studio and the infrastructure improvements. The developer is working with DCK on those figures. Town Council members discussed putting four items into an agreement and Mr. Galligan stated he would like to do a new agreement because the
old agreement had unnecessary items and new items to be included. The lien on the property that the Town gave to Connecticut Studios has not been removed. There is an appraisal done on the hotel that will begin construction within six months after the studio starts to be built. No additional permits have been pulled for this project. There can not be a closing until the PURA process is finished and that process has not begun. There is no infrastructure agreement at this time.
Town Attorney Johnson stated that on November 15, 2012 he received a very rough schedule from Connecticut Studios which shows a projection for a consolidated closing to take place in 90-180 days.
Mr. Galligan then explained that Connecticut Studios has spent a lot of time on the Power Purchase Agreement because large items such as solar versus fuel cells have changed during the process.
Councillor McCann stated that he is supportive of this project as long as it will work. Councillor McCann then stated that he would not be willing to go into Executive Session if the items being discussed are not confidential in nature.
Answering further questions, Mr. Galligan reiterated that the developer has not come to the Town with a proposal for paying for infrastructure. At this point, Mr. Galligan explained that there may be a possibility to do 5013C bonds that would keep the rates low over a period of time and may be pledging the taxes of the fuel cell to pay for the bonds. Funds are not going to be spent at this time for attorney fee’s, doing development agreements and documents until the Town has all other final commitments.
Councillor Anwar felt that there has never been a lack of intention of going forward from the developer and that is why the Council has been supportive of this project. Mr. Galligan added that steps that were going to take place fell through due to the economy.
ITEM:
Mr. Tony DelVicario came before the Council and explained what has been worked on to bring this project forward. Mr. DelVicario also explained different delays that have occurred.
Mayor Delnicki recessed the Work Session at 8:00 p.m. in order to call the Regular Meeting to order. The Work Session reconvened at 8:15 p.m.
Answering questions from the Council, Mr. DelVicario explained that everything is ready to pull permits and Connecticut Studios has put up a $50,000. bond with the Town. The permit fee’s were paid but were sent back. Mr. Galligan explained that when the permits were being pulled, the Town thought the development was on Mr. Charbonneau’s property and would not help with the dismissal of the reverter, so the check was sent back to Mr. DelVicario. It was found out later that 60% of the development was on Mr. Charbonneau’s property and 40% was on the property the Town gave to the development, but there would still have been questions regarding the reverter. Another issue also was that it is necessary to have the permission of the land owner to go onto the property in order to pull
permits and there was not permission by Mr. Charbonneau.
Mr. DelVicario stated that permits may be able to be pulled by the end of the year as long as the final appraisal is complete. There will be no requests for a tax abatement for the hotel project. Mr. DelVicario also explained that the potential new investor for this project is purely an equity investor. If the Council would like, a weekly update of the project can be done.
7. Executive Session
At 8:23 p.m. Deputy Mayor Bazzano made a motion to go into Executive Session to have a discussion of documents containing financial information provided in confidence and exempt from disclosure pursuant to C.G.S. § 1-200 (6) and § 2-210(b)(5)(B) regarding The Connecticut Studios project and to discuss potential litigation. Councillor Snyder seconded the motion.
Councillor McCann stated he wanted to only speak to items that are of Executive Session material and the other items could be discussed out in the public.
The following Individuals were invited into Executive Session: Town Manager, Matthew B. Galligan, Mayor Delnicki, Deputy Mayor Bazzano, Councillor Anwar, Councillor Beaulieu, Councillor McCann, Councillor Snyder, Councillor Yagaloff, Tony DelVicario, Dan Marsh, Attorney John Evans, Town Attorney Kari Olson and Town Attorney Dwight Johnson
At 9:31 p.m. Deputy Mayor Bazzano made a motion to adjourn the Executive Session. Councillor Snyder seconded the motion; and it was approved, unanimously.
ITEM:
8. Adjournment
At 9:31 p.m. Deputy Mayor Bazzano made a motion to adjourn the Work Session. Councillor Yagaloff seconded the motion and it was approved, unanimously.
Respectfully submitted,
Deborah W. Reid
Recording Secretary
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