NSB Will Not Develop Sandy Hook Branch

By John Voket

A planned Newtown Savings Bank Sandy Hook branch that was to be the cornerstone of an ambitious streetscape improvement project in Sandy Hook Center will not go forward. Bank officials confirmed to The Bee on Wednesday, November 30, that the bank allowed the deadline on a letter of intent to contract the development with Verdat “Vito” Kala, the primary property owner on the project, to expire.

While Mr Kala said his plans to redevelop the commercial lot at the busy confluence of Church Hill, Glen and Riverside Roads and Washington Avenue will go forward, it will be with a different tenant.

According to NSB President and CEO John Trentacosta, the bank could not come to an agreement with the property owner so “we let our letter of intent expire.”

Mr Kala said that he would not discuss details of why the deal with NSB did not come to fruition, but said he was working on qualifying a new potential tenant and that his plans to redevelop the commercial lot are ongoing.

First Selectman Pat Llodra said that she was dissappointed with the bank’s decision, but she was confident another bank or commercial entity would be attracted to the high-traffic intersection.

“It’s a great location,” Mrs Llodra said, adding that it was a few months ago that she first heard the economics of the deal were probably not going to work.

“I believe the requirements of the development there, as put forth by the owner, made the project economically unattactive,” Mrs Llodra said.

The Sandy Hook bank project was still a subject for discussion as recently as November 11, when Newtown Economic Development Commissioner Joseph Humeston reported to the commission that the bank had “been unable to secure a development commitment under the terms of the letter of agreement.”

Mr Trentacosta was, however, not at liberty to divulge further details of the negotiations between the bank and the property owner. But when asked about plans to either relocate to another location in Sandy Hook or elsewhere, he said that from a national perspective banks are scaling back on branch development, instead investing in new technologoes to reach and service customers.

“It’s a shame we couldn’t make it happen,” Mr Trentacosta said. “But we and the developer have moved on.”

At an August 2010 session, local Planning &Zoning members issued a special permit to developer Mr Kala for the project planned for properties at #2, #4, #6, and #8 Riverside Road. Mr Kala is the proprietor of The Villa Restaurant & Pizza at 4 Riverside Road.

The project, which had the working name Sandy Hook Villa, gained approval from the Inland Wetlands Commission (IWC) in July 2010. The developer intended to link the project to the municipal sanitary sewer system.

In the redevelopment project, the four parcels on Riverside Road would be combined to form one 3.2-acre site, and an existing commercial building there would be demolished to create a site for bank construction.

Overall, the project would involve the demolition of three existing buildings and the construction of four new commercial buildings, plus the expansion of the existing restaurant. The project was planned to be built in two phases, with the first phase including construction of the bank and a child daycare center. Retail and office uses were planned as part of a second phase.

The redevelopment project plans included design elements similar to those used in the Sandy Hook Center Streetscape Project, in which the town improved the appearance and functionality of the easternmost section of Church Hill Road in Sandy Hook Center.