Options For Commerce Road Development Studied

By Jan Howard

The Board of Selectmen on October 6 voted unanimously to endorse the creation of wetlands and preliminary engineering studies to help determine the direction to be taken for development of the Commerce Road Technology Park.

Community Development Director Elizabeth Stocker recently wrote First Selectman Herb Rosenthal regarding three main options the town should consider for development of the 37.54 acres of industrial zoned land the State of Connecticut plans to give to the town. The parcel abuts Commerce Drive.

The three options outlined in her letter include selling the land as is with covenants protecting public interest and restricting the use for economic development; designing and winning approval from the Planning and Zoning Commission (P&Z) for a commercial/industrial subdivision, then selling the undeveloped land with similar covenants; and developing the site as a municipal development plan (MDP) according to Chapter 132 of the General Statutes.

Ms Stocker said on October 8 that the selectmen’s action would explore what the town’s options are under option two by doing a layout of a subdivision and ultimately determine the cost to improve it. She said there are two possible actions under option two, to get subdivision approval and sell the property or to install the road and utilities.

The selectmen’s action, she said, “is consistent with what the Economic Development Commission recommended.”

The studies would delineate the wetlands and provide a sketch of potential lots. Once the studies are accomplished, the selectmen would discuss it further, she said.

In her letter, Ms Stocker noted that no formal studies or conceptual mapping had been done for the development of the parcel. “The extent of wetland or archeological and other significant public resources that would impact development of the site has not been identified,” she wrote. “A best guess estimate of eight to ten lots and a 3,000 linear foot roadway has been used for an assumption in preparing preliminary cost and benefit estimates. However, there is no guarantee of the number of lots until wetlands, steep slopes and other valuable public resources, such as vistas, watercourses, etc, are determined, and the Planning and Zoning Commission gives an approval.”

She said connection of the planned roadway to Wasserman Way should also be explored during the site planning process.

According to Ms Stocker, the first option would be the lowest cost for the town. The sale of the real property would follow the rules of the Town Charter under Section 7-90. Costs would include the call of the town meeting, costs for an auction or bid of the land, and legal costs necessary for the preparation of covenants and the real estate transaction.

The benefit of this option would be immediate revenue as a result of the land sale, she wrote. Future development and resulting revenues would be accrued following the private development of the site. Public interest would be protected with covenants placed upon the property with little or no public oversight. Should a buyer decide not to proceed with the immediate development of the land, additional revenues would not increase until the land is developed.

The second option involves a higher cost and a longer time period. The benefits include a higher sales price than raw land, more control over development layout, and protection of any public interests identified during the review process. Because the sale would be controlled by the charter, Ms Stocker wrote that “it would be prudent to explore whether or not the added costs would be balanced by the added sales revenue and whether or not it is worth the extra time and administrative oversight necessary.”

The third option would be the most expensive and time-consuming. The undertaking of a municipal development plan would involve appointing the Economic Development Commission (EDC) or a nonprofit development corporation as the development agency for the project. The development agency would prepare and approve a project plan and undertake the ongoing administration. The town would need to budget for the planning, development, and ongoing administration of the project.

Ms Stocker wrote that small development projects such as this usually occur within a more urban community with more resources, including financial assistance from the state. “The question that the town must answer is: Does the EDC have the desire or wherewithal to undertake the role as a development agency or does the town have to appoint a not-for-profit development corporation to undertake the project? Does Newtown have the desire to expend resources, give powers to a development agency, and proceed when the project is so small?” The preliminary costs for the construction of the subdivision road range from $1.35 million to $1.8 million including all utilities.

The greatest benefit for developing the land as a MDP would be to have complete public control over the development project, Ms Stocker wrote. The value of the subdivision lots would be greater than the first two options. Other benefits would include financing options available to a development agency; greater public involvement in the planning and adoption of a development project; flexibility in allocation of taxes on real property; power to transfer real property is given to the development agency; and the project would be eligible for state planning and development grants.

In closing, Ms Stocker wrote, “It would be my recommendation that the town prepare a conceptual development plan to determine the general layout and lot yield of the subdivision, identify important public resources that should be protected, and the extent of covenants that will go with the sale of the property under options one or two.”

She said the town should determine public resources, such as aquifer protection and archaeological issues, that should be protected and how many lots would be possible.

Ms Stocker said this week the Planning and Zoning Commission has rezoned the property to a two-acre mixed industrial use zone.

A town regulation also requires larger than two-acre lots when steep slopes and wetlands are present. Mr Rosenthal said this regulation, which was aimed at residential subdivisions, is applied across the board to industrial and commercial subdivisions. This has reduced the number of lots that would be possible in the Commerce Road Technology Park, reducing them from 15 to possibly ten.

“I can’t understand why they made the recommendation,” Mr Rosenthal said, noting that possibly the commission would consider modifying the zoning in that area.

The land, which the state is donating to the town, was originally proposed as a lease of $1 a year for 99 years. The only restriction that remains is that it be used for economic development. “We can develop and lease or sell it, but anything has to be for economic development,” Mr Rosenthal said.

Town Council David Grogins said how the property should be developed needs to be faced “because we’re getting the property relatively soon.” He noted building lot prices are substantial, and, though there is a substantial amount of wetlands, subdivision lots could go around it.

Mr Grogins said a survey of the wetlands should be done and that a qualified engineer and site planner look at it. Also needed is the cost for road construction, he said.

Selling the lots would be best from an economic point of view, he said. “It’s a very nice piece of property. It is a terrific asset for the town.”

“From an investment point of view, we would not want to execute the development ourselves,” Economic Development Commission member Kim Danziger said. “With subdivision approval, the investment return is many times over.”

Mr Grogins said a wetlands study and survey could cost about $5,000, with engineering no more than $10,000 to $20,000. Mr Danziger said there might be state funds available to cover the engineering costs. The town has encumbered $45,000, approved in a previous budget, for planning the property.

Ms Stocker said raw land would sell for $40,000 to $60,000 an acre. With utilities and a road, she estimated that a lot could sell for $500,000. At that price, Mr Rosenthal said the sale of two or three lots could recover the cost of the road.