Economic Development Commission

Committee Members Staff to the Committee Chairperson Councilman Vincent Loffredo Christine Marques, Director of ECD Members Councilwoman Jeanette Blackwell Brian Gartner, ECD Staff Councilman Anthony Gennaro Councilwoman Steven Kovach Councilwoman Linda Salafia ECONOMIC DEVELOPMENT COMMITTEE MIDDLETOWN CONNECTICUT SPECIAL MEETING WEDNESDAY, FEBRUARY 21, 2024 MINUTES A Special Meeting of the Economic Development Committee of the City of Middletown was held on Wednesday, February 21st 2024 at 7:00 PM. This meeting was a hybrid meeting with in-person participation in Room #208 of the Municipal Building and remote access via WebEx. In attendance: Chairman Vincent Loffredo, Councilman Steven Kovach, Councilwoman Linda Salafia, Councilwoman Jeanette Blackwell, Councilman Anthony Gennaro Staff in Attendance: Christine Marques, Director of ECD Brian Gartner, ECD Staff Public In attendance: Chris Cambareri - Middlesex Chamber of Commerce 1. Call to Order - Chairman Vincent Loffredo called the meeting to order at 7:04 p.m. Chairman Loffredo noted the venue change from Room #208 to Room #202 (ECD Office) in the Municipal Building. A hybrid meeting structure was used. 2. Approval of Minutes 1. Minutes of the January 23rd 2024 Special Meeting - Chairman Vincent Loffredo called for a motion for approval of the minutes. Councilman Steven Kovach motioned for approval, seconded by Councilwoman Linda Salafia. Chairman Vincent Loffredo opened the floor for comments on the meeting minutes, and Chairman Loffredo recognized Councilwoman Blackwell. Councilwoman Blackwell identified page one, under public session, and requested that the meeting minutes reflect that the record show 20 Portland Street. Additionally, on page four and five item number six should denote Councilwoman Salafia raising the topic of R.M. Keating being within the sanitation district. On page five, as the committee raised the issue of identifying street addresses she suggested that the meeting minute records should include 17 Miller for item eight and 20 Portland Street property on item nine. Chairman Loffredo recognized Councilman Steven Kovach, who requested that ECD staff provide meeting minutes in advance of scheduled meetings. Councilman Kovach advocated that the public, and committee members, would benefit from earlier access to review previous meeting minutes, and emphasized that there are missing meeting minutes on the website. Chairman Vincent Loffredo explained that procedurally only elected committee members are allowed to issue points of orders, and staff and public members are allowed to raise concerns and ask for permissions for the committee’s attention. Chairman Vincent Loffredo called for a vote to accept the minutes with the amendments put on the record, and the committee unanimously approved. Chairman Loffredo explained that the legal department noted meeting minutes are required to be filed within seven days and submitted to the Town Clerk’s office. 3. Public Session 1. Chairman Loffredo opened the meeting to public comments, and recognized Chris Cambareri. Chris Cambareri, Middlesex Chamber of Commerce, acknowledged his support and enthusiasm for the If you require special accommodations for any meeting, please call the ADA Coordinator at (860) 638-4540, (voice) or (860) 638-4812 (TDD/TTY), or the Town Clerk’s Office at (860) 638-4910 at least ten (10) days prior to the scheduled meeting. Page 1 of 5  R.M. Keating documentary video and expressed his appreciation. He also noted his desire for more of the public to view the documentary. Christine Marques explained that edits had been made to the documentary, and it was aired at the historic society, and she had forwarded a link to Chris Cambareri upon request. The documentary analyzes the history of the R.M. Keating factory, highlighting the buildings development and evolution from construction to present day. The film was an independent project organized by Peter Oberc. Chairman Loffredo stated that it was original screened at Russell Library. Chairman Loffredo opened the floor to any further comments from the public, and none were present, and Chairman Loffredo closed the public comment period. 4. New Business 1. New Lease Agreement at R.M. Keating for RIC Unlimited – Proposed lease is for 400 square feet of unimproved space in building “B”. Tenant to provide all improvements subject to approval by the building superintendent. 2. Chairman Loffredo recognized ECD staff. Christine Marques updated the committee on a new lease agreement for RIC Unlimited. It is a five-year lease for an area in Keating; monthly rent is 100 dollars a month, with a 5% yearly increase. The leased space will be utilized for storage of materials. Chairman Loffredo asked if this is a start-up, or if RIC Unlimited is contracting with the city to operate out of the Keating building and Christine Marques responded that the space will be used for storage. Chairman Loffredo stated his concerns and disagreements with the lease, arguing that the R.M. Keating is intended to be an incubator space, whereby new businesses can get started-not a storage facility. Chairman Loffredo noted the unique responsibility is for economic development, and inquired more about how much space is being rented to RIC. ECD Staff provided an update that the 400 square foot space in question is located in a section of the building where public facing businesses would not be appropriate due to the current condition. Chairman Loffredo desires to update the lease to reflect that this storage rental is an exception to the general purpose of the Keating building. Councilman Steven Kovach raised a question to clarify if there is specific language the city has documented that requires businesses to be a start up in order to rent at R.M. Keating. Chairman Loffredo responded that historically the recipients have been start up business, and wants the record to show that the purpose of R.M. Keating is not for storage. On page two of the proposed lease it reflects the use of the space. Chairman Loffredo recommends that the lease language explicitly state that the lease arrangement is an exception. Chairman Loffredo invited other committee members to voice their comments on the concept of including specific language in the RIC lease to show that this is a storage space, not an incubator start-up, and is an exception to the scope of R.M. Keating’s proposed purpose. Chairman Vincent Loffredo recognized Councilwoman Jeanette Blackwell, and she expressed support for a motion to have a conversation with legal to embed the language in the lease, to ensure that this is an exception. Councilman Gennaro agreed with Councilwoman Blackwell. Councilwoman Blackwell posed a question to the committee, how many available, rentable spaces are in R.M. Keating. Chairman Vincent Loffredo made a motion to amend the lease agreement to approve exception clause in the lease, seconded by Councilwoman Linda Salafia, and was unanimously approved. 5. Old Business 1. 21st Century Bond – No substantive update. Brian Gartner explained that Councilwoman Jeanette Blackwell asked for an itemized breakdown of expenditures in the previous meeting. ECD staff will continue to work to procure documents to present at the next scheduled meeting. 2. The Village at Riverside (Arcade Redevelopment Project) - City staff continues to meet with the preferred developer to come to terms. The outlook is positive to move forward. Previously raised concerns in regards to the water table and the measures that will need be taken will be provided. 3. Riverfront Master Plan – Brian Gartner informed the committee members that progress continues to be made. Christine Marques elaborated that title searches for River Road have been completed, and Page 2 of 5  we are currently waiting for the contract to be sent by DECD. Chairman Loffredo inquired about issues regarding River Road resulting from rain levels. Christine Marques explained that there was a minor landslide, and Eversource had previously taken action prior to, but officials have been working determining what the cause was. Chairman Loffredo inquired about the location of the incident on River Road, and Christie Marques replied that the incident happened near pump station and natural gas plant, and that DOT and Public Works has been involved in clean-up and evaluation. 4. 80 Harbor Drive – Per the contractors schedule the interior portions of the building should be substantially complete by March 15th. We are hoping to have a temporary Certificate of Occupancy in place allowing the tenant to start their fit-out. Tenant anticipates opening on May 1 st. 5. R. M. Keating a. Brian Gartner informed the committee that a rental update will be electronically submitted to members, including February rents, when documents are available before the next scheduled meeting. Chairman Loffredo presented an issue to the committee, about a new practice the committee can adopted. New leases can be invited and come forward to the committee to discuss potential applications. 6. Grant Earmarks a. Community Investment Fund (CIF) - Title searches are ongoing for the various River Rd. properties. Once they are complete, the City will execute the assistance agreement. b. Brian Gartner updated the committee on grants the office has been working on; city staff will receive invoices, process and vet them, issue payments and seek reimbursement from the state. The Community Investment Fund is worth $12 million and will be used to remediate River Road properties. Chairman Loffredo asked if that money is in place yet, and Christine Marques responded that the state has received the title searches, and the state has to finalize contracts for the Mayors signature. The city has already completed their due diligence documents, and are waiting on the state to finish finalizing contractors. The three sites involved in this remediation grant are Jackson Corrugated, Wastewater Treatment Plant, and Peterson Oil, all city owned property. c. Community Challenge Grant – Brian Gartner provided updates about the Community Challenge Grant projects located at 418 and 422 Main Street owned by Dominic DeMartino. The buildings are substantially complete and are waiting on Eversource to finalize hookups. The buildings are mixed-use, ground floor commercial and residential above. Councilman Steven Kovach asked about where prospective tenants will park for the residential units on Main Street, and permit payments. a. 418 & 422 Main Street – Brian Gartner provided updates about the Community Challenge Grant projects located at 418 and 422 Main Street owned by Dominic DeMartino. The buildings are substantially complete and are waiting on Eversource to finalize hookups. The buildings are mixed-use, ground floor commercial and residential above. Councilman Steven Kovach asked about where prospective tenants will park for the residential units on Main Street, and permit payments. b. 584 Main Street - Construction continues on the former Shlien’s. The western third of the structure was demolished due to being structurally deficient. Rough Framing is mostly complete. Project will include 3,500 sq. ft. of commercial space on the first floor, and 12 market rate apartments on the second and third floors. The apartments are approximately 500 square feet. Chairman Loffredo Page 3 of 5  asked if grant money was received for this project, and Brian Gartner confirmed there was. c. 545 Main Street (former Skating Rink) - Construction is on-going, and progress continues to be made. New roof, windows, and siding have been installed. Chairman Loffredo presented the historical significance of the building regarding Mortimer acknowledged in the previous meeting. Chairman Loffredo asked ECD staff if there was an anticipated completion date, and Brian Gartner answered that there is no estimated date at this time. Christine Marques elaborated that there is residential units, mixed between smaller and medium sized floor plans. There are ten parking spaces being rented on the parking lot south of the building. d. Urban Act Grant for 545 Main Street – See above for 545 Main Street. Congressional Earmark, ECD staff continue to work with federal staff on one million dollar earmark for R.M. Keating redevelopment. There is also a $2 million Urban Act Grant. e. Urban Act Grant & Congressional Earmark (HUD) for R.M. Keating – City staff is working with HUD to furnish the necessary documents. Progress continues to be made. 7. 210 Dripps Road – a. The EDC voted to start the potential divestment process. Brian Gartner: letter circulated to departments, and requested a title search. The EDC voted to start the potential divestment process for the sale or disposition of 210 Drips Road. Councilwoman Blackwell set an email to the entire commission. Chairman Loffredo articulated that outside discussions through email regarding agenda items are not appropriate, and invited Councilwoman Blackwell to put on the record any statements pertaining to the email. Councilwoman Blackwell sent an email communication dated January 24 at approximately 9:52 a.m. to the entire commission to indicate that she had made a motion regarding moving Drips to the divestment process. She had verified public information on taxes and wanted to explore the feasibility of the current occupant leasing the property on a monthly rate for $383.88. b. Councilman Gennaro made note that he responded to Councilwoman Blackwell’s email, and noted his interest in exploring the idea. Chairman Loffredo explained the legal department should provide further consult on the issue. 8. 17 Miller Street – a. Title search is included with your packet. b. Brian Gartner updated the EDC on City Ordinance 242-7 to determine market value on property. Brian Gartner raises a question to the committee, regarding which direction the committee would like to pursue for 17 Miller Road, utilize the value provided by the tax assessor or seek outside services to assess property. A discussion ensued regarding the differences in tax assessor value and third party assessments, and which direction the committee should go. Chairman Vincent Loffredo inquired about the cost of hiring a third party tax assessor. Brian Gartner presented the appraised value for 17 Miller Street, $132,730, whereas the assessed is $92,910. Chairman Vincent Loffredo asked if anyone would like to put forward a motion to hire an appraiser, and the committee declined to motion to hire an appraiser. Damon Braasch, Tax Assesor provided the following on 12/4/24. Page 4 of 5  Currently listed as a single family in “fair” condition. 2022 value = $132,730. Zillow = $142,200 Trulia = $142,200 Redfin = $151,700 Realtor = $177,380 Councilman Kovach made a motion to use the information provided by the city tax assessor, seconded by Councilwoman Salafia to accept the value of the city tax assessor. The Chairman called for a vote, and the committee unanimously approved the motion. c. Councilman Kovach asked the committee if the Route 9 project affects the neighborhood development, in any way other than changing access. ECD staff responded that it does not. d. Councilman Steven Kovach made a motion to request a C.G.S. 8-24 review by the Planning and Zoning Commission for the potential sale of 17 Miller Street, seconded by Councilwoman Linda Salafia. Councilwoman Linda Salafia requested for clarification regarding the 17 Miller Street and 20 Portland Street properties, and what properties interested parties are asking for. Councilwoman Salafia requests that legal come up with an opinion ad written explanation on the process. If more than one person is interested in a property, what criteria determines who is sold the property. Chairman Vincent Loffredo called for a vote on the motion, and the committee unanimously approved. 9. 20 Portland Street – a. Brian Gartner provided an update to the committee and explained that the General Counsel provided a certificate of title. The owner of 18 Portland Street holds approximately a quarter of the property through an easement. At the last meeting Diana Martinez expressed there was another interested party. Brian Gartner reached out to Diana Martinez to get in contact with the party to acquire a letter of interest, and are awaiting a response. b. Councilman Steven Kovach motioned for a C.G.S. 8-24 review on the 20 Portland street property, and seconded by Councilwoman Linda Salafia, and passed unanimously. 10. Economic Development Fund Balance – Included within your meeting packet. a. Brian Gartner provided an update regarding the balance of the Economic Development Fund. Chairman Loffredo inquired about how the balance can be utilized, and Brian Gartner will provide a future update about what items are permissible at the next meeting. 11. National Register Designation for the Beman Triangle a. Christine Marques updated that staff will follow up with historical society. 12. Adjournment - There being no further business to come before the Committee Councilman Steven Kovach made a motion to adjourn, seconded by Linda Salafia, and unanimously confirmed. The Chairman adjourned the meeting at 8:20 p.m. Page 5 of 5