A timeline for the Town of Berlin Purchase of Depot Crossing

Background Information on the Purchase of Depot Crossing, 848 Farmington Avenue, Berlin

8/23/07            

Project approved for 23,986 square foot main building and out building with a drive in of less than 1000 square feet. The Main building was approved for commercial uses on the first 2 floors and residential on the third floor. Special permits were granted for the residential use and the drive in. The site is 3.48 acres. 1.3 acres at the rear were to be donated to the Land Trust for open space.

5/15/08           

The Commission approved a request from the developer to allow the project to be all commercial (no third floor residential).

11/25/08           

A building permit was issued for the structural work.

8/27/12           

Partially completed building is foreclosed by private lender, New England Capital Group, LLC. Sale price is listed as $850,000.

8/12 – 2/13           

The new owner of the property marketed the building for sale. A number of buyers expressed an interest but no agreement was reached to purchase the property. There was interest in a mixed use development scenario with commercial pace on the first floor and residential on the upper two floors. The zoning in the CCD district allows 4 units per acre in a mixed use project. Therefore the site would need to have 4 acres (plus the land being donated).

2/13                       

The appraised value of the property in the Town’s assessment is $1,716,100. Ongoing: Town staff had been in contact with the Kensington Fire Department. The Fire Department expressed a desire to “square off” its property so that it could properly finish its 9/11 memorial park. The Town had started work on the park area as part of its streetscape project. Ongoing: Town staff communicated with the Berlin Land Trust. The Land Trust was concerned that the 1.3 acre portion of the parcel that it was slated to receive had not been conveyed.

2/26/13           

The Berlin Land Trust entered into an agreement to purchase the property for $850,000, subject to back taxes due to the Town.

2/26/13           

The Town Council referred the purchase of 848 Farmington Avenue to the Planning and Zoning Commission for a report pursuant to section 8-24 of the Connecticut General Statutes. The Town Council also authorized staff to apply for a State of Connecticut CHAMP grant for the acquisition of the property and to fund the completion of the exterior building envelop. If the CHAMP grant is used the first floor of the building will be for commercial use and the second and third floors for about 16 residential rental units to be occupied by persons or families at 120% or less of the area median income. The application deadline for CHAMP grants was to be April 8 but it has now been changed to May 31. The intent is that land would be swapped with the Kensington Fire Department such that the Fire Department would acquire land to square off its parcel and allow the completion of the 9/11 memorial park and the Town would receive added acreage in the rear to give it a 4 acre parcel (after the land donation to the Land Trust). Four acres will satisfy the land area requirements for up to 16 units of housing at 4 units per acre per the current CCD-1 zoning regulations. The rear acreage that the Town would receive would be subject to a conservation easement and would be functionally combined with the 1.308 acres to be received by the Land Trust to create a small park/open space area along the Mattabesset River.

3/14/13           

The Planning and Zoning Commission approved an action to recommend that the Town purchase the property.

3/19/13           

The Town Council received the report from the Planning and Zoning Commission and authorized the Town Manager to enter into an agreement to accept assignment of the contract between the Berlin Land Trust and New England Capital Group LLC. The Town’s intent is to assign the contract to a developer or to sell the property to a developer. The Town Council also created a Committee to issue a request for qualifications for developer proposals and to recommend the selection of a developer. This Committee is comprised on Town Manager Denise McNair, Director of Development Services Hellyn Riggins, Economic Development Director Jim Mahoney, Economic Development Commission Chair David Cyr and Economic Development Commission Vice-Chair Edward Egazarian.

3/30/13           

The Town Manager signed the assignment agreement. Some key provisions in the Purchase and Sale Agreement are as follows: Price: $850,000. Deposit: $100. Closing: On or before October 30, 2013. Inspection Contingency: The Town may terminate the agreement without penalty if it is not satisfied with property inspections. The inspection contingency date is near the end of July. Financing Contingency: August 30. 4/9/13                       

Issuance of Request for Developer Qualifications – Summary below. Overview The Town of Berlin is seeking qualified developers for a key redevelopment site located at 848 Farmington Avenue, Berlin across from the Train Station.  This 3.44 acre site is currently occupied by a partially completed three story, 23,986 square foot building (8,896 sf on the first and second floors and 6,194 sf on the third floor).The project is known as Depot Crossing. The selected developer will first enter into a developer agreement with the Town and then take assignment of or enter into an agreement to purchase or lease this site and create a top-quality mixed-use or commercial project.

Project Objectives
The Town has established the following objectives for the redevelopment of 848 Farmington Avenue.
1.     Create a project that will be consistent with transit oriented development objectives, creating housing units, job opportunities and shopping opportunities near the Train Station.
2.     Create a project that will help to create a pedestrian scale and a sense of place in the Train Station/Kensington Village area.
3.     Create a number of new, market-rate or mixed income (80% market/20% affordable) residential units in the Town Center.
4.     Follow the Farmington Avenue Design guidelines to enhance the architectural character and site development values of the neighborhood.
5.     Reinforce other recently completed projects and stimulate additional development in Kensington Center.
6.     Complete the project as soon as possible. Start construction within 3 months of taking title and complete the project within 9 months thereafter.
7.     Accomplish the project at no cost to the Town, that is, assign the option agreement or sell the property at the same price as the Town’s contract, $850,000.
8.     Receive payment of back taxes on the property.  
Selected Developer’s Responsibilities Following the selection of the developer, these responsibilities will be more specifically defined and detailed in a development agreement to be negotiated between the Town and the selected developer. 

The selected developer will (at a minimum):
1.     Negotiate with the Town and enter into a preferred developer agreement within 30 days of selection.
2.     Conduct due diligence on the property including preparation of a cost estimate to complete the exterior shell of the building and to eliminate unsightly site conditions.
3.     Assist the Town to apply for a CHAMP grant (or secure alternative financing for the acquisition of the property), if applicable.
4.     Commence a marketing effort to secure tenants for the commercial space.
5.     Prepare a plan for revisions to the site plan and updates to the floor plans based on the intended use.
6.     Refine the project pro-forma that will be the basis of subsequent applications for financing.
7.     The Town will prepare a concept plan for the revision of the lot lines with the adjacent Fire House property. The developer will cooperate in this effort.  

Evaluation Process For Qualification Step The following criteria will be used to evaluate responses to the RFQ:
1.     Demonstrated ability to access and obtain private equity and debt for development projects in the last three years.
2.     Experience working with projects of a similar nature and complexity.
3.     Demonstrated quality of design and construction in previous projects.
4.     Extent of redevelopment experience of specific individuals assigned by the developer to the proposed project team.
5.     Demonstrated experience and financial strength to complete a project of this size and on budget and on schedule.
6.     Respondent’s proposed project approach and how it will achieve stated project objectives.
7.     Demonstrated success with the initial marketing and on-going management of units in projects of a similar nature and complexity.
8.     Price.
9.     Proposed timing.
10.  Tenant commitments for the commercial space.
11.  References for the respondent and project team.

Respondents (and related entities) are expected to be current with any tax owed to the Town of Berlin.

  5/8/13  

Response date for the RFQ. Overall objectives:
·      The Town will seek to choose an experienced developer to finish the project.
·      The plan is to use a State grant to fund the acquisition cost.
·      The State grant would also allow the Town to finish the building shell.
·      Redo property lines so that the Fire Department can complete its park and the development parcel has adequate land to support 16 residential units.
·      Open space is preserved near the center of Town.
·      The project is on a key site across from the Train Station and it will be developed as a “Transit Oriented Development” project  consistent with Town and State priorities