Becker ‘Refines’ Fairfield Hills Plan

With Incentives For The Town

By Steve Bigham

Becker and Becker Associates this week announced a “refined” business proposal for the purchase of Fairfield Hills. Sensing that momentum may be building toward direct town ownership of the land, the development firm has put together a new structure that would give the town ownership of some land and buildings.

According to the new plan, the town would receive:

Direct ownership of all undeveloped land (100 acres or more) and five of the buildings (Cochran House, Newtown Hall, Woodbury Hall, Yale and Bridgeport Halls);

The buildings and land would be conveyed to the town, with environmental remediation completed, for an estimated net cost of $4.5 million (and a gross cost of $9 million);

Commercial tax revenue generated at Fairfield Hills would reduce the town’s acquisition cost and costs for improvements such as athletic fields, municipal offices and an elementary school.

First Selectman Herb Rosenthal was still studying the new proposal Wednesday.

“One the surface it sounds good, but I still need to dig below the surface to see what’s there,” Mr Rosenthal said.

The First Selectman said the $9 million gross price the town would have to pay is the same figure that Becker and Becker originally offered to pay the state – minus environmental clean-up work.

The Becker and Becker firm is calling its new proposal a planned unit development (PUD) form of ownership in lieu of the lease structure it had previously called for. According to company president Bruce Becker, “direct ownership” will give Newtown full confidence in its ability to have lasting control over all open space and its buildings at Fairfield Hills. Mr Becker said this plan is not necessarily a reaction to recent sentiment for the town to buy the land. Instead, he is simply unveiling a proposal that was in the works all along. It does not change the terms of the proposal submitted to the state, he said. Concerns that the state might bypass the developers and offer the land directly to the town prompted Mr Becker to expedite his strategy.

“This is really our first proposal to the town. There are refinements in our thinking, but we’re hoping to review the proposal with the town and from my understanding with what the town is looking for, we’re right on target. I think it would be very well received,” he said.

Mr Becker said he hopes his offer ends up being too good to refuse.

“Our proposed structure now allows the town to have complete, undivided and permanent ownership of this property, while allowing the buildings that are not needed by the town to be developed privately under separate ownership to generate tax revenue and meet market needs,” Mr Becker said.

Becker and Becker has proposed a plan that would cut Newtown’s acquisition and environmental abatement costs in half using what is called a Tax Increment Financing (TIF) agreement. The debt service for the TIF would be paid exclusively from a portion of the incremental tax revenues that implementation of the plan would add to the tax rolls. A letter from Robinson & Cole, Newtown’s bond counsel, indicates that Becker and Becker’s additional tax revenues would support $40 to $50 million in TIF financing.

“This allows the town to significantly reduce its own investment to meet its obligations and really doesn’t cost the town anything,” Mr Becker said.

Finance Director Ben Spragg said the idea behind the TIF is to leverage all income from additional taxes brought on by improvements and then use it to finance some of those improvements.

“The town does not lose money. It’s an economic gain, helping to bring some type of benefit to the community by postponing any tax revenue until the financing is paid off,” he said.

Becker and Becker’s plan still calls for some residential development, senior housing, office space, a restaurant, hotel and YMCA.

In addition to land and buildings, Becker and Becker is offering the town design and development services. Also, the firm proposes to manage the development of the 5/6 school, which it would have open by September, 2001.