A Deal With D’Amico—

FFH Parking Plan OK’d

By Kendra Bobowick

Permanent parking is coming, and it took a deal with a private developer to do it.

Through amendments to resident Peter D’Amico’s Newtown Youth Academy lease arrangement at Fairfield Hills, the developer will conduct the $3.5 million project involving the demolition of Greenwich House and install permanent lots. The town will pay him back, which is where the financial pas de deux begins.

As explained to the selectmen, as a private developer Mr D’Amico would have to borrow from the bank at — for the purpose of discussion — 6.9 percent interest rate, which would be passed along for reimbursement by the town. Selectmen, and others, had a better idea. If the town were to take out a bond for the sum with a municipal interest rate of 4.5 percent, it could then pay Mr D’Amico back all at once while incurring a lower interest rate. Mr D’Amico would have no problem with a quick repayment. As Mr Rosenthal later explained, the town has enough money to cover at least the first installment or two to repay Mr D’Amico at 6.9 percent interest. Without a subsequent municipal loan, Mr Rosenthal said future installments would be paid through the annual operating budget over the course of 20 years.

“Or, the thought was perhaps to get approval for a loan to pay him off at once,” he said.

The idea prevailed, and Mr D’Amico received the go-ahead to complete the demolition and parking.

Selectman Paul Mangiafico liked the possibility. “My thought is to accept the proposal,” he said, looking favorably at the conditions for a lease rearrangement to make the deal possible. “And, we pay it off in a year. We bond the money, borrow it at 4.5 percent, and have our cake and eat it too, so to speak.”

“I agree,” said Mr Rosenthal.

Not everyone was warm to the idea.

As resident Peter D’Amico sat with his lawyer Fran Pennarola during the Board of Selectmen’s meeting Wednesday, town attorney Dave Grogins raised a point. “Is this an operational or capital expense?” he asked. He also wondered if accountants would feel this would be a long-term capital expenditure. “In terms of the legal process, it would require a special appropriation and special town meeting,” he noted. “If you feel this is something the town should do,” he advised selectmen, “the resolution [completing parking through lease agreements with Mr D’Amico] should be conditioned upon a letter from auditors that this is an operational expense, not capital.”

Like Mr D’Amico, who is working toward a November 1 opening date, Mr Grogins stressed, “That brings us to time; we don’t have time.” There is not time to call for a town meeting to make a capital appropriation. The town must fulfill its obligation to provide the youth academy with parking promptly. As Fairfield Hills Authority member Don Studley had explained when he laid out options, temporary parking would have to be installed for parking to be available by November, and Greenwich would not yet be razed.

As discussions wound down, Mr Mangiafico said, “As far as I am concerned, we’re taking out a loan and [intend] to pay it off rapidly. I am ready to proceed.” Subject to the conditions of requiring the letter from auditors as Mr Grogins advised, Mr Rosenthal also agreed. He moved to make modifications to the lease — essentially accepting Mr D’Amico’s weeks-old proposal to do the demolition himself.

As he cleared his paperwork from the table, Mr Studley said, “When it’s explained to the auditor, we hope he’ll come around, we hope.”

During a Legislative Council meeting later that night, members wondered if the amended lease arrangement with Mr D’Amico was subject to a public hearing, per a recently enacted act regarding municipal lease deals. Chairman Will Rodgers said, “I hope that occurred to Mr Grogins…can you check into that [Mr Borst]?”

Other options? The town could conduct the permanent parking in coming years at a higher cost and do the temporary parking now. Figures as high as $6.1 million entered conversations.

Under lease agreement terms for tenants moving into Fairfield Hills, the landlord, Newtown, is required to provide certain things, including parking. Funds prevent construction of permanent parking and Greenwich House demolition at this time, and Mr Studley had explained.