UPDATED:’ Stimulus funds denied by state. Read The Mirror’s article on the situation.
Attention Fairfield student-interns: Relief from peak hour train rides into New York City and lack of parking may be postponed due to the current financial status of the ‘Fairfield Metro Center’ project.
Fairfield citizens present at the Residential Town Meeting (RTM) at Osbourne Hill School Monday night voiced their concerns to First Selectman Kenneth Flatto and Town Attorney Richard Saxl that the tri-partite project to build a third train station off lower Black Rock Turnpike may be stalled indefinitely due to BlackRock Realty LLC’s recent financial troubles.
A third train station, according to a meeting handout from Selectman Flatto, would reduce traffic, reduce accidents on I-95 and promote economic development, among other positives.
Project Finances
The project is financed by the state, town and private developer BlackRock Realty LLC. BlackRock is a joint venture between Wittek Development LLC and Rugby Realty Company Inc.
Flatto recently sought about $28 million in stimulus funds from Connecticut designated for mass transit projects. The money ‘would go to pay for BlackRock’s portion of the public project, as well as the town’s costs to build the 1,500-space commuter lot,’ according to a March 13 article in the Connecticut Post.’ ‘
Flatto said, however, that Gov. Jodi Rell’s office would be allocating these funds and ‘the money would be used to build the road, parking lot and drainage for the train station,’ and not for commercial use by BlackRock, according to a March 14 article in the Connecticut Post.
In January, TD Banknorth moved to foreclose on the Metro Center property owned by BlackRock due to the firm’s halting of payments on a $20 million loan from the bank.
Kurt Wittek, principal of BlackRockRealty, LLC, appeared before the RTM Monday night to address town concerns that his company’ would not be able to continue financing the project.’
‘This time in our history is different than all others,’ he said. ‘This in no way renders our ability to do this project.’ I’m absolutely certain we can resolve the issues before us; we possess significant financial resources.’ We have invested $28 million into this project and we won’t walk away.’
Where it all started
The original plan called for a 1.1 million square foot Metro Center train station on 35 acres of land.’ Currently, the state Department of Transportation (DOT) is building the bridge as part of the project, but the commercial development remains at a standstill. The contract for the project says that the town will build the road and parking lot on land donated by BlackRock, according to the Connecticut Post.
Under section 6.3 of the contract, BlackRock committed to building a train depot within five years and to post a $500,000 letter of credit to the town in case it failed to do so.
They did not comply with these demands, though at the meeting Wittek did insure the RTM that he still plans on posting the letter.
But at the meeting, RTM and residents questioned why the town should request federal stimulus money to finish the project and why BlackRock failed to file the $500,000 letter of credit for the project.
‘Those of you who think there’s a little something crazy going on here I think you should stop making things up,’ Flatto said.
One RTM member said that he wanted to make sure public funds were not being used for private development.
When asked what would happen if TD Banknorth assumes title to the land, Flatto said, ‘But that has not happened’ and stressed that the state was still committed to the project.
When asked about the foreclosure notice, he said:
‘I’m not going to talk about a private investor’s foreclosure.’ He continued to say ‘I know you like to do this but I’m not getting into hypotheticals, thank you.’
A representative asked Wittek what would occur if the state did not receive the stimulus grant.’
‘We will continue to make every effort to make this project economically viable, with or without stimulus money,’ he said.’
He said that funding for the ‘infrastructure’ of the project will be difficult, however.
Flatto defended the town’s request for stimulus funding saying he did not do it on behalf of Wittek.
‘I don’t know where you got the cockamamie idea that we asked for money on behalf of BlackRock,’ Flatto said.’
Residents fear incomplete project
At the four-hour meeting, several residents expressed fear about what would happen to the project if BlackRock was unable to complete it.
‘ In response to this, Wittek said, ‘If we somehow lose the property to foreclosure, which we feel is a very distant possibility, the person who steps in will probably feel that it’s better to have [the train station] than not.’
Controversy over ethics of the project persists.’ In December 2007, Flatto removed Conservation Department director Thomas Steinke from supervision of the project due to BlackRock’s stance that it could not get along with the department personnel.’ Flatto said that the Conservation staff admitted the project was too big for the group, according to an April 10, 2008 article in the Fairfield Weekly.
Flatto then hired Redniss ‘amp; Meade, a Stamford consulting firm, to take its place.
Flatto said that the conditions the Conservation Department was issuing in order to get permits ‘started making it impossible for work to go forward,’ according to the Fairfield Weekly article.
A group of residents subsequently formed a ‘concerned citizens’ group, represented by lawyer George Bisacca. They filed an ethics complaint over the removal of Steinke.’
Flatto sent a letter on Dec. 24 to the governor requesting the funds, stating that ‘This project and the funding sought includes a cleanup of a long dormant brownfield, and the creation of a 9-acre public open space park and wetlands area,’ according to a meeting document of facts and questions drawn up by RTM members.’
‘All of these obligations are those of BlackRock.’ So, Mr. Flatto, is it your intention to perform the obligations of BlackRock?’ Mr. Bisacca said at the meeting.’
In the ‘History of Highlights’ section of the meeting handout, it is projected that in 2009 and 2010, ‘DOT/Town conduct public aspects of project, where required, including drainage, environmental cleanup, parking areas, road and train platforms.’ The projected end date is 2010-2011.’
In a March 23 letter to Flatto from DOT Commissioner Joseph F. Marie, he says:
‘I want to assure you that the Department of Transportation (Department) is firmly committed to seeing this project through to a successful completion.’ It should be noted that the Department’s existing scope of work on this project, including the road, bridge and station platforms, is progressing as scheduled.’
Citizens and representatives present at the RTM meeting expressed, however, concerns that this will not continue to be the case with the recent financing troubles.’
‘BlackRock Realty has ownership of some of the land needed for public parts,’ said RTM attendee James R. Brown. ‘I’ve never heard of spending someone else’s money on someone else’s property.’
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