State’s Offer On Fairfield Hills Raises Questions About Price And Process

By Steve Bigham

Twelve months ago, Newtown resident Ruby Johnson called on First Selectman Herb Rosenthal to request that the state offer Fairfield Hills to the Town of Newtown. She urged him to let the people decide whether or not they wanted to become owners of the former state mental health hospital and its grounds.

Last Friday, Herb Rosenthal made that request during a trip to Hartford. And his request was acted on promptly. Fairfield Hills has officially been offered to the town. State Department of Public Works Commissioner TR Anson agreed to suspend all consideration of a private developer until the town comes to a consensus. Newtown was assured of right-of-first refusal all along, but has decided it can wait no more. Several major capital projects, including a new 5/6 school and the creation of addition town office space, have been delayed as a result of the Fairfield Hills issue.

This most recent development out of Fairfield Hills raises several questions. First, what will it cost the town to buy the 186-acre campus? Mr Rosenthal said no price has been discussed, although he does have some ideas.

“The sale price will be the smallest part of the overall price. Ongoing maintenance and renovations will be the biggest part,” Mr Rosenthal said.

Because of the liabilities at Fairfield Hills, known and unknown, the first selectman said some contingencies will be included in the final agreement. One of those contingencies will reflect the lack of the all-important Phase II environmental study, which, once finished, will better detail the amount of environmental clean-up required on the site. Also, that any offer made by the town would be contingent upon town approvals.

Based on some of the offers already made on Fairfield Hills, some estimates of the price are in the $2-3 million range, with the town being responsible for $6-9 million worth of cleanup and maintenance costs.

What if the voters turn down this proposal to buy Fairfield Hills?

“The state would have the option of re-opening the RFP process and could offer the property to one of the three developers or it could just go out and offer it on the open market,” Mr Rosenthal said.

The town would only get a second chance at buying the property if no developer jumps on the offer. That seems doubtful, especially after all the enthusiasm that has been shown by some developers in their efforts to buy Fairfield Hills. In particular was Bruce Becker of Becker and Becker Associates, who, last summer, proposed a partnership with the town. The New Canaan firm worked hard to befriend citizens and to show its commitment for making Fairfield Hills work for both the developer and Newtown. Of the three development plans proposed to the state, the Becker and Becker plan won the most supporters among townspeople.

Bruce Becker says he has been keeping close tabs on the Fairfield Hills issue in Newtown. He admits to being disappointed that his firm may now not be chosen, especially after all the time and effort it put in. However, he claims to harbor no hard feelings toward town officials, understanding the town’s desire to have control over the campus. He blamed his inability to properly relate his plans to the first selectman on the state’s policy that prohibited communication between the two.

“Obviously, we were not able to succeed in earning the first selectman’s trust. We were hampered by not being able to communicate with him. The process itself was our greatest challenge,” Mr Becker explained. “In hindsight, maybe it was an impossible challenge. But I do think we came up with an excellent plan that still has some pretty strong support behind it. We’re hoping that the investment we made in planning will still be helpful to the town.”

Mr Becker says he has “backed off” in recent months, sensing Mr Rosenthal was interested in sorting out the issue without Becker and Becker’s involvement.

Ironically, now that the state has suspended consideration of the private development firms, Mr Becker and the first selectman are permitted to communicate. And this week, Mr Rosenthal welcomed a meeting with Mr Becker, understanding that the town may need to call on developers with ingenuity if it does ultimately purchase Fairfield Hills.

“I never was convinced that the Becker and Becker proposal was a real proposal,” Mr Rosenthal said. “But he can still approach me now. He can come in and talk to me now. I’m surprised I haven’t heard from him yet.”

 Mr Becker did express interest in a meeting with the town, but he cautioned, “Until there is a private developer that is given responsibility, you’re not going to see much progress there.”

The town now has 45 days to express interest in the state’s offer, and then an additional 60 days to negotiate a deal.

Richard Nuclo, the state’s Office of Policy and Management (OPM) director, said he plans to sit down with the first selectman to “iron out” a final price. He admitted that the process was slow, but felt it allowed the town of Newtown to take a long look at the direction it wanted to go in.

“What was important to the town was always one of our primary concerns,” Mr Nuclo said.

Mr Rosenthal said he plans to meet with the Board of Selectmen and Legislative Council in the coming weeks to discuss the town’s strategy toward buying the campus.