Psychiatric hospital developers have submitted a formal letter of intent (LOI) for a land lease to establish a roughly 100-bed facility at Fairfield Hills, which the campus authority members moved to accept Monday.

Speaking with the Fairfield Hills Authority (FHA) this week was CBRE First Vice President Randy Eigen, who introduced himself as the real estate broker representing Richard Kresch, MD. Dr Kresch is the CEO of US HealthVest, a behavioral health care venture.

Mr Eigen told the authority this week that HealthVest is “interested in engaging in a lease.” The company specifically is interested in space in the area of Norwalk Hall. The large, multi-story building at the back of an open lawn on the corner of Keating Farms Road and Mile Hill South would be torn down and replaced by a proposed single story building. A single story would be a lower profile and “less invasive,” Mr Eigen said.

Authority Chairman Thomas Connors said the LOI is a “negotiable” document.

In an LOI addressed to Mr Connors, Mr Eigen wrote that his client “has studied the site,” and met with officials including Land Use Director George Benson, has “obtained estimates” for an environmental study, abatement, and demolition.

The letter additionally states: “They are willing to enter into a long-term lease arrangement … whereby US HealthVest will lease land, roughly rectangular in shape … and they will undertake the entire development process including the environmental study, abatement, and demolition of existing structures.”

USHealthVest is seeking land “suitable for one story,” and a 70,000 square foot building and parking area and an outdoor assembly and play area, which would be closed off from the main campus. Terms of the lease as stated in the LOI is 99 years. The proposed rental rate is $68,200 annually. The rate would increase at 10 percent every five years.

The letter also states that HealthVest and FHA would “equally share the pre-construction development costs specifically including the environmental study, abatement, demolition and debris removal/disposal, estimated to be approximately $750,000 for each party.”

Conditions named in the letter include that utilities be “immediately adjacent” and with “sufficient capacity.” The conditions also say that an “unappealable Certificate of Need must be issued by the State of Connecticut for a Behavioral Health Hospital … No other behavioral health hospital can be built in Newtown as long as HealthVest … operates the facility.

During the brief conversation, after which the authority moved to accept the LIO, Mr Eigen noted that the for-profit facility would pay real estate taxes, and create as many as 150 jobs covering three shifts, from janitorial to health care staff.

Authority member James Bernardi asked if the hospital would be a secure facility and whether the outdoor area would create a “mingling” with the public at Fairfield Hills. Mr Eigen had said the area would be closed off from the campus.

First Selectman Pat Llodra had asked about the nature of the clientele, which Mr Eigen said was “clinical,” and he was not prepared to answer.

“That’s going to be the number one question,” Mrs Llodra said. She “does not want the vision for the campus impacted.” Mr Eigen then said that the company’s other facilities, whether in-patient or out-patient, were voluntary. Mrs Llodra said she wanted to be sure the hospital “fits in.”