Both the Legislative Council and Board of Selectmen have approved initiating the process of applying for historic credits that would help a developer renovate two Fairfield Hills campus buildings into mixed used commercial-residential buildings.

The Board of Selectmen approved applying for the credits unanimously at its August 22 meeting and the Legislative Council approved it on an 8-4 vote at its August 17 meeting. Legislative Council members Angela Curi, Lisa Kessler, William DeRosa, and Tom Long voted against the historic credit application.

Some town officials expressed trepidation over the historic credits, which would place the Fairfield Hills campus buildings on the US registry of historic buildings and limit the town’s ability to demolish buildings on the campus. However, developers such as Winn Development of Boston, are hoping to use those credits to receive state and federal money that will help offset costs for renovations of the buildings. Voters approved using the buildings for mixed use residential at a referendum last year.

Winn is specifically looking to renovate Shelton Hall and Kent Hall as mixed use commercial-residential. The residential units will be single family rentals.

Councilman DeRosa early in the council meeting expressed concerns over “not having enough information” and thought that accepting the credits was the town “selling its soul for money” by handing over the reins of the Fairfield Hills Campus to state and federal authorities.

Council Chairman Jeff Capeci inquired about any strings that might be placed on the campus by the federal government.

However, Land Use Director George Benson said that the “town is not giving up anything” by accepting historic credits. The campus is already facing limitations on what can be done with the buildings because it is on the state historic register.

“We’re not handing anything over,” said Benson, who noted that the historic credits would help for developing not just Kent and Shelton Hall, but the other campus buildings as well. “No one can develop these without historic credits. It’s not a financially feasible plan.”

Preservation Office

Oversight

Any change the town wants to make to the exterior of the buildings already has to go before the State Historic Preservation Office (SHPO) as the campus is on the state historic register. SHPO would be the same organization that would review changes should the campus be placed on the federal historic register, according to Stacey Vairo, of Preservation Connecticut.

“It’s the same process,” said Vairo, who has been involved with the Fairfield Hills campus for 13 years. “Nothing will change as far as the review process. All that will change is receiving the tax credits.”

Capeci noted that the main change would be that the town would not be able to demolish any buildings during a certain period of time.

The federal process would designate the campus and all buildings currently standing as historically significant, and the town would not be able to demolish any of the buildings during the time the project is being worked on and for five years after, or the federal Parks Service, which would award the historic credits, can “claw back” the money. The current timeline from Winn estimates that Kent and Shelton would be renovated by the end of 2025 and the claw back period would end at the end of 2030.

When asked if any of the buildings were so structurally unsound that they may become compromised before 2030 and need to be demolished, First Selectman Dan Rosenthal responded, “not to my knowledge.”

“No building at the moment is pressing with structural issues of concern,” said Rosenthal. “People breaking in is still a concern; we have to secure some windows.”

Benson also noted that “safety is the first priority,” and noted that he has been negotiating with the state and federal agencies about what buildings would be included and they have “not been unreasonable.”

“I don’t see it as being an issue,” said Benson. “I’ve had that conversation with them and off the record, if a building becomes completely unsafe we can do something about that.”

Capeci said that while he knows that there would be strings attached, to him it’s “not that different from what the state and town put on now.”

Benson has been negotiating with SHPO and the National Parks Service regarding the map of which buildings will be included on the federal register. Currently buildings like the Municipal Center and Community Center are not included, but Benson is also hoping to pull in the northern border so the ambulance garage is excluded.

Councilman Ryan Knapp asked what happens if Winn pulls out of the deal to develop Kent and Shelton. Benson said that the town would “cross that bridge when it happens.”

“It [historic credits] is still something we should have,” said Benson. “Other developers are looking at the other buildings now that the financials are better [with the credits].”

Benson also noted that this is the “first time we’ve had a plan to do something with one of the big buildings.”

Diverse Funding Sources

Sources of funds for this project include federal Historic Tax Credits, state Historic Tax Credits, and Low Income Housing Tax Credits (LIHTC). It is expected that historic tax credits will make up 25% of total project funding.

The rest of the project will be paid for by WinnDevelopment, with no cost to the town. The town would sell the buildings to Winn but would lease them the land that the buildings are on.

“We’re not on the hook for anything” regarding the renovations of the buildings, said Rosenthal.

For buildings receiving credit, the exterior space must remain the same and the interior space must still have the same look and feel as the original. For example, a school building would keep the lockers and classroom doors, and may not change the general layout of the building.

If the mixed use project moves forward, it is estimated that it will have a $25.3 million positive impact to Town of Newtown’s direct cash flow from now until the demolition bonding payments are completed, over the next 35 years. If the mixed use buildings are renovated, it is estimated that the town will bring in $20,070,555 in revenue, with $31,659,976 in expenses, for a net cash loss of $11,589,420 over those 35 years.

If the mixed use buildings are not renovated, it is estimated that the town will bring in $1,612,814 in revenue versus $38,477,451 in expenses, for a net cash loss of $36,864,638.

The difference between the two is the $25.3 million positive impact, as the town will see a much smaller cash loss on the Fairfield Hills property with the mixed use buildings. The expenses are mostly in the cost of demolishing the unused buildings, and are estimated to be larger without the mixed use buildings as Kent and Shelton Houses would eventually have been demolished as well.

Councilman Matt Mihalcik said the town “needs to look at the future of Fairfield Hills.”

“Winn is willing to do the work and are focused on the two buildings [Kent and Shelton], but this will help with the other buildings being developed,” said Mihalcik. “If we want to save these buildings, that’s what we need to think about.”

WinnDevelopment, the development arm of WinnCompanies, is the nation’s leading developer of historic and iconic buildings for residential uses, earning more awards for the sensitive renovation and adaptive reuse of historic buildings than any other company in the field.

The company completed its most recent adaptive reuse project in Connecticut in 2020, when it transformed the former East Haven High School building into mixed-income housing — an effort that earned multiple national awards for development, environmental sustainability, and community impact.

The approvals by the council and BOS will allow Winn to move forward with the application process in concert with town officials such as Benson and Deputy Director of Economic and Community Development Christal Preszler.

Associate Editor Jim Taylor can be reached at jim@thebee.com.