At Fairfield Hills—

Failed Financing Cancels Proposed

Veterinary Hospital Plans

By Kendra Bobowick

The deal is off.

Failure to secure funding has spoiled plans for the much-anticipated veterinary hospital slated to occupy Woodbury Hall in Fairfield Hills.

Dated November 2, a letter to town attorney David Grogins begins: “It is with great regret that Glen Mountain Holding Company LLC … has been unable to finalize its financing.” First Selectman Joe Borst conveyed the news to Legislative Council members Wednesday night.

Fairfield Hills Authority Chairman Bob Geckle acknowledged the setback Thursday morning, “It’s tough [financial] times out there, plus what we’re trying to do is not easy.” The authority can negotiate lease agreements, rather than sales for the buildings and grounds at Fairfield Hills. The town will retain ownership of the former state hospital property.

The letter to Mr Grogins explains, “Unfortunately, market conditions have conspired against Glen Mountain to make it impossible to secure a [US Department of Agriculture] USDA Guaranty, a key element of the Newtown Savings Bank financing.” Mr Geckle explained that the USDA was going to essentially back the savings bank loan, but the backing hinged on USDA stipulations. “They required specifics for the [Glen Mountain] business plan,” he said. The USDA chose not to back the loan, he said.

In past months the holding company has requested and received from the town extensions on finalizing a lease agreement in the hopes of getting funding and backing in place. The letter expresses “appreciation” for the extensions granted, and “continues to view Fairfield Hills as an attractive location for its business.” Mr Geckle confirmed, “It’s a matter of regrouping.” Glen Mountain will still make an effort to build a hospital, but Woodbury Hall may not be its location. “Their approach to establish a hospital may be in Newtown, but not necessarily Fairfield Hills,” Mr Geckle said.

Committed to Newtown, the letter further indicates, “If subsequently nothing works out at the Fairfield Hills campus, [Glen Mountain] will look at other Newtown locations.”

What next? Recently, the authority has taken a fresh look at how to market Fairfield Hills and how to structure deals, Mr Geckle said. Part of the problem is the economy, he said. “We’re working in tremendously strong headwinds.” The property is desirable, he said, but anticipates “another tough year.”