South Windsor Town Council Grants Extension for CT Studios

The South Windsor Town Council on Thursday evening unanimously extended until Dec. 3 a land agreement it has with the developer of the much-delayed Connecticut Studios project.

The town, pursuant to the agreement signed Oct. 26, 2009, gave the developer - Connecticut Studios LLC - 20 acres of town-owned land for $1. But the deed provided that the developer had to begin construction of the $55 million project, which includes sound stages, a mill for the building of sets, a hotel and commercial space, by Oct. 26 - today - on the town land.

The developer started construction last week on a 600-square-foot security building, though it was unclear whether that would have met the requirements of the reverter clause.

By granting the extension, both sides - at least temporarily - averted what could have been a legal showdown on the matter.

After going into a nearly two-hour executive session with the developer, lawyers representing the town and Connecticut Studios, and Economic Development Coordinator Shari Fiveash, the town council emerged with a brief discussion followed by the 9-0 vote.

No specifics were available as to what requirements Connecticut Studios had to meet by Dec. 3, though the councilors who spoke showed some support for the project.

“We’re talking $1 million of tax revenue [to the town] once this project gets off the ground,” Mayor Tom Delnicki said, adding that the jobs the studio provides also will represent a “boost to the region.”

Still, with that said, Delnicki also offered a caveat.

“Again, the ball is in your court,” Delnicki said. “You’ve got your work cut out for you. I wouldn’t come back to the well again.”

Ralph Palumbo, a partner with Connecticut Studios LLC, thanked the Town Council for its patience and acknowledged what the mayor said.

“We do recognize that we have our work cut out for us,” Palumbo said. “We wouldn’t be here without the council’s [support].”

Delnicki said in an interview after the meeting that the developer has “measurable goals,” though he declined to elaborate what those goals were.

What’s more, it remains unclear as to whether the small building being constructed on the land provided by the town satisfies the reverter clause; the extension to the deed did not contain a provision that clarified that point.

What is at least clearer is the reason - or reasons - for the significant delay in the start of the construction of the project, at least according to the developer.

In a three-page letter addressed to the Town Council dated Oct. 25, Connecticut Studios principals Ralph Palumbo and Anthony DelVicario outlined at least some of the causes behind why an extension to the reverter clause was necessary.

If nothing else, the letter outlines how many moving parts are contained in the project.

Palumbo and DelVicario cited as reasons for the delay the following: a poor economic climate (“we have navigated the worst economic recession of [sic] since the Great Depression”), soil conditions that required a redesign of the site plan, regulatory issues and finalizing plans with the architects, engineers and other professionals.

The developer has also been in long-term negotiations to fund the infrastructure - roads, sewers and electricity - through the sale of electricity that is generated through a clean energy project.

“I can confirm that the project will generate enough taxes to pay the vast majority of the infrastructure payments and removes the risk of the Town’s existing taxpayers having to pay anything toward this,” Palumbo and DelVicario wrote. “We had hoped to be able to announce tonight that this agreement was signed but unfortunately like town government, the electric distribution company has a process and procedure system it must abide by.”

Palumbo and DelVicario said that the electric distribution agreement is the last step in the process.

“Please try to understand that we are trying to do an extraordinary thing during an extraordinary time,” they said before closing in requesting more patience in the form of an extension.

Town Councilor Keith Yagaloff said after the meeting that he believed that the developer showed it is making a good-faith effort to move the project forward.

Still, Delnicki added, “The ball is in their court.”

Correction: the origina piece said that Craig Stevenson was the author of the letter written by CT Studios. It was written by Ralph Palumbo and Anthony DelVicario. South Windsor Patch regrets the error.