Selectmen Approve

40-Year Youth Academy Lease

By John Voket

Selectmen this week approved a lease proposal to bring a sprawling Newtown Youth Academy (NYA) sports complex to Fairfield Hills, replacing a deteriorating former state hospital building. Slated for the space now occupied by Bridgewater Hall, the final step in the process will be to seek a modification to the Fairfield Hills Master Plan through the Planning & Zoning Commission in the coming weeks.

According to First Selectman Herb Rosenthal, a public hearing is planned before the P&Z meeting, at 7 pm, September 20, presumably to take input before the commission considers and possibly acts on the variance.

On back-to-back evenings, Mr Rosenthal explained to fellow selectmen Tuesday, and Legislative Council representatives Wednesday, that the master plan currently reflects open sports fields on the space intended for the nonprofit sports center. The modification being sought would apparently incorporate the fact that the NYA is an indoor facility with a fully enclosed soccer/lacrosse field within one wing and three side-by-side gymnasiums in the other.

“The current master plan recognizes the area for recreation, but not an enclosed building,” Mr Rosenthal said.

A central administrative wing connecting the two playing areas would also feature locker rooms and other small activity and common areas. During the discussions, Mr Rosenthal also indicated the provision of an adjacent building “pad,” to accommodate a Parks & Recreation center that might be attached to the academy via a covered walk or similar pathway.

Part of the “ground lease” agreement credits back 50 percent of the $1.2 million because the builder, resident Peter D’Amico, will handle demolition of Bridgewater Hall. Town estimates put the cost of that phase of the project at about $600,000.

According to a draft of the lease selectmen approved Tuesday, the remaining balance due under the lease shall be realized at the rate of $40,000 per year for 40 years. Payment under the lease takes the form of a $25 per hour reduction for 1,600 committed hours of court use per year by the town. 

Mr Rosenthal explained that the town will still be covering a portion of the rental fee, but at a greatly reduced rate than if the town was paying commercial rates for similar facilities. Parks and Recreation Commission Chair Ed Marks, who was on hand for the selectmen’s meeting, said the actual competing rates will be published along with the discounts applied to the town’s usage for up to 1,600 hours annually.

“The hourly rates are based on actual market rates. [Mr D’Amico] will open the books to assure the discount is based on the posted rates,” Mr Marks said.

“This won’t be like a situation where you are told you’re getting a $499 hotel room for $99,” Mr Rosenthal said. “We will have actual competing rates available to show the discount.” The town, through its Park and Recreation Commission, is given priority in selecting court use times, Mr Rosenthal continued.

The first selectman said the cost of 1,600 hours at roughly $88,000 per year would fall far below the debt service on a similar building if the town was to build it independent of the NYA nonprofit, and the agency will be responsible for its own interior maintenance and upkeep.

At the end of the initial 40-year lease, there are two extension periods of ten years each. If the parties cannot agree on the rent to be paid during each extension period, then a committee of three appraisers, one selected by each party, and the third selected by the two appraisers, will decide. 

A decision by the majority will be binding on the parties.

If the public-nonprofit partnership is still intact at the end of the 60-year period, if the parties cannot agree on a further extension or a new lease, the town will purchase the property for two-thirds of its fair market value, determined by agreement, and failing agreement, by the three-appraiser method. 

The lease proposal states the NYA will be responsible for its share of common charges for the operation of the campus. Those common charges have been established initially at a rate of $28,000 per year. In addition, NYA will be responsible for a sewer assessment and sewer and water use charges, as determined by the Newtown Sewer and Water Authority. 

The town will be responsible for providing necessary parking, in common with parking for the town hall and other uses. Mr Rosenthal said the town will be bringing sewer and water lines up to the premises, and will be responsible for providing landscaping, maintenance services, snowplowing, security, and other common area services.

Selectman Joseph Bojnowski was concerned about what would happen if the nonprofit could not fulfill its responsibilities to the town under the agreement. Town Attorney David Grogins, who attended the Tuesday meeting, said the building is the town’s security if something happens to the nonprofit.

Ultimately, if  NYA is interested in selling the property, the nonprofit agency is bound to negotiate with the town first. If such negotiations fail, then NYA may seek a third-party buyer for the property.

The town would have the right to meet the terms of any third-party deal. Any sale to a third party would be subject to terms of the existing lease. 

Responding to a question from selectman William Brimmer, Jr, regarding negotiations of the lease, Mr Rosenthal said the NYA initially asked for a 50-year term but settled on the 40-year proposal with extension options.

Mr Rosenthal told the council Wednesday, that the demolition of adjacent Litchfield Hall and the Yale Laboratory will not only accommodate the planned new Parks & Recreation Center with options for Senior Center and cultural arts uses, but will likely be the future site a of a new municipal pool that may eventually be covered for year-round use.

The first selectman said the NYA is encouraging the partnership between its facility and the Parks & Recreation offices by endorsing the proximity of the new town complex. The future recreation hub would be within easy walking distance of the planned government center that will house all town and school board offices.