Discussion Of Development Concepts For Fairfield Hills

Includes ‘Residential Component’

By Kendra Bobowick

Starting with “the good news,” sole real estate broker for the Fairfield Hills property, Michael Struna, said, “The general economy is showing signs of light.” Seated before the Fairfield Hills Authority members Wednesday, February 16, he described the clues. “We see it in our call volume and in the [real estate] inquiries.”

Regarding the former state hospital property, he has received a dozen inquiries — including some that cannot be accommodated, he said.

Continuing with the good news, he said, “There are a couple of things active out there …” A restaurant owner is interested in Stratford Hall. Mr Struna explained, “I am talking to them. It’s not a matter of urgency. They are thinking about it but still have a year and a half on their current lease.” He has received other food industry queries. Also showing interest in Stratford Hall are catering hall owners, he said.

Moving away from the food industry, he told the authority, “An Alzheimer’s facility looked at the campus.” He then explained the catch: “It has a residential component.” The existing master plan for the property’s reuse does not allow housing. Although the master plan is currently under review, the authority must abide by provisions in the current master plan. A review committee may or may not recommend that town officials adopt housing as a reuse.

Regarding the Alzheimer’s facility, he said the entire concept is not overall residential, but would have it as a component. “It’s a multistage facility.” Noting a “very recent inquiry,” he said he has heard from a school. “I did research and [the school] also has a residential component to it.”

Later in the meeting, Mr Bernardi asked, “What kind of school?”

Guessing that “they won’t have the assets” to move into Fairfield Hills, Mr Struna said, “A very small prep school.”

Generally speaking, he advised, “We may want to consider if we want these facilities.” A hospice — proposing a 30,000-square-foot space — is currently “looking elsewhere, but frankly, Fairfield Hills is the best place for them.” Mentioning the problem again, he said, “It is not strictly residential, but it has that component.”

Pausing before changing the subject, he said, “Something I want to bring up — I have had the opportunity in the last six to nine months not only to bring people to the campus that were looking for opportunities, but I have also coaxed some well-known developers … to look at the campus.” He asked them what they would do with the property. He asked them what might make it work.

“Literally a dozen guys all said, ‘The only way this works is mixed use — you need to find a balance between residential, retail, offices … build a sustainable community.’”

Member James Bernardi asked, “The developers told you that residential needs to be a component. In a town with business on Church Hill Road and Main Street, everybody has to drive 20 minutes for a pack of cigarettes, why do they feel that without residential it wouldn’t work?”

“I am not an expert,” Mr Struna began, “but with a lot of reading, research, and seeing successful projects,” he paused, then changed his thoughts. “Fairfield Hills is never going to be a retail mecca. It will be coffee shops, hair companies…” Noting why he feels business thrives in Sandy Hook center, he said, “It’s a little community.”

Mr Bernardi persisted, “We’re two minutes from Sandy Hook. We can drive down the street for coffee.”

Making his point, Mr Struna replied, “People making investment decisions go where people are.” Adding another point to consider, he said, “And, nobody wants to be the first one.”

Offering different thoughts about the topic of housing, Mr Reed said, “The interesting thing here, there are variations on the theme.” He noted the hospice and Alzheimer’s facility that Mr Struna had mentioned. “The point is, I think all of us have different triggers for housing. When the issue of housing is discussed, I don’t know if examples like these were looked at.”

Explaining that on certain occasions, such as when an animal hospital had expressed interest in a lease, the authority had approached the Planning and Zoning Commission to ask for “slight modifications” for the campus reuses. He said, “The authority is reluctant to ask for exceptions that are significantly different.”

Mr Reed later turned his attention to leasing the Fairfield Hills buildings. Rather than working with previously established lease price structures, he believes that negotiations must reflect the current market. Regarding the value of leases, he said, “The market has a way of telling you what the truth is.” Economic conditions will “have something to do” with pricing. No specific pricing is currently applied to the properties, he said, but will rely on “what the market will bear and what people will offer.”

Mr Struna said he did not necessarily need pricing to see what a potential deal will look like.

Member Andy Willie clarified, “You’re telling people that they’re paying the lease up front?”

“No,” said Mr Struna.

“I would think that it’s a deterrent,” Mr Willie stressed. “I want to be sure it’s not a part of the discussion.”

“It’s not,” said Mr Struna.

He explained that he does tell people that occupancy costs “are not going to be inexpensive.” He was thinking of the renovation and remediation costs associated with the old state hospital buildings. Mr Struna said, “I am setting the expectations from the beginning.”