Date: Fri 11-Dec-1998

Publication: Bee

Author: STEVEB

Quick Words:

legislative-council-Queen-St

Full Text:

State Presses The Town For A Decision On Queen St.

BY STEVE BIGHAM

The state's Office of Policy and Management (OPM) is anxious to hear from the

town as to whether or not it plans to purchase the $1.2 million Queen Street

property.

The state never actually placed a deadline for a decision, but recently

indicated it needs to know soon. There are many other developers who have

expressed interest in the state-owned property along Queen Street. Last

spring, the town was granted right-of-first refusal on the eight houses and

six lots on the western edge of Fairfield Hills. The homes once housed staff

members who worked at the former state mental institution.

In November, the Planning & Zoning Commission endorsed the proposed purchase,

4-1. In October, the Board of Selectmen also approved the plan, requesting

approval for a special appropriation by the Legislative Council.

Next Tuesday, the council's finance committee will take up the Queen Street

issue and is expected to make a recommendation to the full council on how the

purchase will be funded. The council is expected to take a final vote on the

proposal Wednesday.

The Queen Street proposal is just one of several important capital improvement

projects on the table. Among them is the 5/6 school and the complete overhaul

of the town's municipal buildings. Discussion on those will have to wait,

however, as the Queen Street issue takes precedence.

"We had hoped to look at all capital improvements together, but the state is

not giving us that luxury," noted Pierre Rochman, council chairman.

Finance committee chair John Kortze said the remaining capital improvement

items will have to wait until after the first of the year.

"What we wanted to do was look at everything," he said. "The problem is the

timing of Queen Street is kind of precipitating a rush on everything else."

First Selectman Herb Rosenthal said he is expecting an approval from the

council since he was assured of an approval several months ago. However, there

are some council members who remain undecided.

"There are still some questions as to whether we should do it," Mr Kortze

said. "If we end up doing it, there are a couple of potential scenarios."

The first option would be to purchase and maintain the entire property. The

second option calls for the purchase of the property, then turn around and

sell the individual parcels (with deed restrictions), while keeping a chunk

for the town.

"The cost is $1.2 million, but if we were to buy it then turn around and sell

some of it, maybe the cost to the town would be more like a half million," Mr

Kortze said.

The finance chair said he is anxious to meet with the selectmen and school

board to look at the entire capital improvement picture.

"We had been waiting on the municipal space and 5/6 school because there were

no hard numbers, but now we have a general idea. Now we know and we want to

meet on everything," he said.

Preliminary figures indicate a nearly $26 million cost for the 5/6 school

(with an $8 million state reimbursement) and somewhere around $20 million for

a new municipal building.

There are also dozens of other, smaller capital improvement requests, Mr

Kortze and his committee must consider.

"I don't think the Legislative Council should tell the departments what they

need. I think we should look at their requests and figure out what they can

afford," he said. "We should not be in the position to say, `we don't need a

5/6 school or a new municipal building.'"

Mr Kortze suggested, however, that there may be limits. At some point, all the

borrowing is going to have an impact on the town's bond rating, he said.

"There is no question in my mind that if we did all of the projects out there,

even some of the highly needed projects, that we are going to stress our

fiscal standing."

According to Finance Director Benjamin Spragg, Moody's guidelines state that a

town's net debt payments should not exceed 10 percent of the entire municipal

budget.

"We're a little over eight percent right now," Mr Spragg noted.

However, that figure could rise above 12 percent if the town goes forward with

the purchase of the Queen Street property, the construction of a 5/6 school

and new municipal building, as well as renovations to Town Hall South, Edmond

Town Hall and the Hook & Ladder building. Those projects are expected to

exceed $30 million, after state reimbursement.

Mr Kortze said going that far above the guideline may prompt the men in black

suits to come taking a close look at the town's finances.

"That's the point when Moody's comes down and asks what we're doing. We

wouldn't be down graded I don't think, but it does put us under the

microscope," he said.

Mr Kortze said his committee's goal is to look at the complete impact.

"I think we're trying to be a lot more forward-looking. Our goal is to look at

all the numbers, assess the impact and make a recommendation to the full

council.

If and when the Legislative Council approves the purchase of the Queen Street

property, the issue would then go before the taxpayers at a town meeting.