BHC Buyer Agrees To Moratorium On Land Sales

By Steve Bigham

The prospective buyer of the Bridgeport Hydraulic Company has agreed to a deal that would temporarily prevent it from selling off any of the company’s 5,900 acres of open space land. Nearly 700 acres of that land lies within Newtown’s borders.

This should buy both the state and towns some time in their efforts to prevent large chunks of land from being sold. The British water company Yorkshire, a subsidiary of Kelda Group, plans to purchase the Bridgeport Hydraulic Company for $444 million ($37 per share for the stock) and would assume $150 million worth of debt. Many fear that Kelda Group will sell off its land assets to offset the high cost.

 Town and state officials have attempted to delay the sale in an effort to address their concerns, but were denied a voice in the proceedings last week by the state’s Department of Utility Control (DPUC).

Both Gov John Rowland and a representative of the Kelda Group signed this week’s moratorium, which many hope will go a long way toward preserving the land that surrounds the company’s reservoirs. The agreement also provides provisions for the state’s Department of Environmental Protection (DEP), municipalities and conservation groups to acquire parcels for preservation as open space.

First Selectman Herb Rosenthal suspects Kelda Group signed the agreement in the hopes that it will quiet opponents of the sale. He is concerned, however, that neither the state nor towns like Easton, Redding and Newtown could afford to purchase the land at market value. He believes the state legislature should control the sale price of the land.

“The water company has been getting a great deal on low assessments. The towns should be able to reclaim something since the water company got such a good deal on taxes over the years,” he said.

The Bridgeport Hydraulic Company owns 20,000 acres of land in Connecticut, much of which can not be sold due to its class I designation. Class II and III land can be sold. These lands are located out of the immediate watershed area.

During the moratorium, the company can sell open space to municipalities and non-profit land trusts. Any sale must first be offered to the town under a right-of-first-refusal law.