Haddam Land Swap Parcel Used as Loan Collateral

The Haddam Bulletin is reporting that the developer-owned 87-acre parcel involved in the controversial land swap was recently put up as collateral for a substantial commercial loan.

According to the Bulletin, the loan documents were filed with the Haddam town clerk on Nov. 18, 2011. The paperwork shows that Riverhouse Properties LLC received a series of commercial loans provided by Liberty Bank totaling $2,433,000. The loans were secured by putting up the entire 87-acre property as collateral.

The property being used as collateral for a commercial loan only adds fuel to the fire as concerns continue to grow about the value of both properties involved in the swap. Property values are central to the land swap controversy because Connecticut law requires that any state land involved in a swap be of greater or equal value to the property for which it would be traded. If the 87-acre parcel has financial restrictions attached to it, it needs to be cleared up for the land swap deal to happen.

In addition, land evaluations on both properties that have not been released to the public yet, show a discrepancy between the property values. Dwayne Gardner, a spokesman for the DEEP, said the agency can not release the appraisals, or details of them, because it still in the process of trying to swap the state land for the Higganum parcel.

“I can say that the land being offered to the state in exchange for the state property along the CT River has been appraised at a dollar amount lower than the state property.” 

Dennis Schain, communications director for the state's Department of Energy and Environmental Protection, said in an earlier report that "the public act authorizing this and DEEP’s policies require that any swap be for lands of equal value. We will not deviate from that standard. If a package of land and/or money determined to be of equal value to the state-owned land is not offered this transaction will not move forward.”

Negotiations between Riverhouse Properties and the DEEP are ongoing behind closed doors in an effort to equalize the value of the properties involved in the land swap.