Economic Development Commission Salutes Business In Newtown

By Kaaren Valenta

The Economic Development Commission (EDC) held its sixth annual Salute to Business on October 16 at the Fireside Inn.

Tier One, the new company formed by former Kendro Laboratory Products managers, received the EDC’s award for community service. Tier One kept 50 jobs in Newtown that otherwise would have been lost when Kendro moved most of its operations to Asheville, N.C., this year.

EDC Chairman Win Ballard also presented awards to representatives of three other local companies for significantly improving their properties: SCB Office Park at 153 South Main Street, the Blue Colony Diner, and property restorer Raffie Aryeh.

Mr Aryeh, who was in Florida and could not attend the ceremony, was cited for his efforts to restore the historic house on the corner of The Boulevard and Church Hill Road. Now the home of Prudential Connecticut Realty, it was previously the location of Denlinger & Previdi, attorneys, but had a long history as an inn and a residence prior to its current professional use.

George Marnelakis, manager of the Blue Colony diner and son of diner owner Eddie Marnelakis, accepted the award that recognized the complete renovation and expansion of the 30-year-old diner located on Church Hill Road at the Exit 10 eastbound on-ramp. The new highly polished chrome exterior reproduces the look of vintage diners.

The SCB Office Park was created last year when Peter D’Amico purchased the former Heise-Dresser property at 153 South Main Street for $1.7 million as a new home for his company, Bulk Materials International (BMI). BMI occupies just 3,000 square feet of the 38,000-square-foot building, which has approval for multiple office tenants including medical and professional offices.

Community Development Director Elizabeth Stocker said the past year has been a very active year for development in Newtown, including an increase in the number of commercial permits issued. During the last fiscal year the town’s building department issued a total of 215 commercial permits with an estimated value of more than $5 million, she said.

“During the year there was one new commercial building permit issued, four additions, 28 renovations, and five new foundations,” Ms Stocker said. “The year before, our building department issued 194 commercial permits. Four of those permits were for the construction of new buildings. We have four additions and 24 renovations and a total value of $17.7 million.”

The pace of commercial growth has not kept up with residential growth, she admitted. “In 2001 almost 13 percent of the grand list was from commercial real estate and personal property. In 2002, the two categories made up slightly less than ten percent. This is something we have to work harder to improve on.”

Revaluation skewered comparison figures for the value of residential and commercial properties, so Ms Stocker examined the increase in personal business property during the same period. “Personal property increased by about $3.76 million, representation a five percent increase from the year before,” she said.

The value of exempt manufacturing equipment under the State’s Manufacturing Assistance Act grew from $2.8 million in Newtown in 1991 to $13.3 million last year. Only seven Newtown businesses participated in the program when it began; 24 now participate.

During the past year, in addition to the creation of Tier One, other businesses came to Newtown, Ms Stocker said. Two months ago La-Z-Boy opened a 30,000-square-foot distribution center and headquarters in the new Curtis Corporate Park in Sandy Hook. Also at the park, zoning approval has been given for a 24,000-square-foot building that does not yet have an occupant.

“This is Newtown’s first spec building since I have worked here and is a positive sign of our ability to attract business investment,” Ms Stocker said.

During the summer, Surface Mount Traders Corp. won approval for the construction of a new 72,000-square-foot manufacturing facility on High Bridge Road.

In the Borough, there are plans for a new retail-office space to be located on the vacant property at the corner of Church Hill Road and Queen Street. In Sandy Hook center, streetscape improvements are being funded through a state grant. Joseph Tartaglia has zoning approval for the construction of a new restaurant building on Church Hill Road at Dayton Street.

In Hawleyville, a 30,000-square-foot addition that would more than double the size of the building is planned for Braun Moving Company on Barnabas Road. Ginsberg Development CT LLC is building a new 92-unit age-restricted residential community adjacent to The Homesteads at Newtown on Mt Pleasant Road.

Century 21-Scalzo-Gleason will be relocated to the former Ebenezer Prindle House at 48 South Main Street. The renovated building will have space available for two other businesses as well.

While there has been considerable interest in the reuse of the former Grand Union space in Eaton Square, no proposals have been accepted by the absentee landlord. Similarly, the EDC has been actively marketing the Batchelder property on Swamp Road in Botsford to the real estate community.

“We have had a tremendous amount of serious interest in the property. We have entertained several creative schemes for the financing of the cleanup and redevelopment and have been close to getting a buyer for the property,” she said.

The EDC will be promoting the development of the industrial-zoned property adjacent to Commerce Road that the town will be getting from the state, she said, and supports revenue-generating uses on the former Fairfield Hills Hospital campus.

“Newtown’s labor force continues to expand, increasing by 12 percent between 1990 and 2002,” she said. “Fortunately, our unemployment rate remains low, at 3.1 percent [the annual average in 2002].”

The town lost 40 jobs between 2001 and 2002, the latest year for which figures are available. While the total number of jobs decreased for the second straight year, the total in 2002 was still 190 more than 1999 “and we are still ahead of our 1996 low by 1,200 jobs. In 1998 Newtown had only 6,160 local jobs. [In 2002 there were] 7,380 people employed locally,” she said.