Renzullo offer rejected

WINSTED — After several months of discussions and negotiations, at a meeting on Monday, Aug. 15, the Board of Selectmen voted to reject an offer from Selectman Michael Renzullo to purchase tax liens on the Capitol Products building.In June, Renzullo, through his nonprofit organization Laurel City Revamp, purchased the long vacant building at 35 Willow St.After buying the building, Renzullo offered $25,001 to purchase the town’s tax liens on the former manufacturing company site.As he did at previous meetings, Renzullo recused himself from the discussion of the agreement at Monday’s meeting.The vote to reject Renzullo’s offer was 4-2, with Selectmen Ken Fracasso, Glen Albanesius, Karen Beadle and Lisa Smith voting against the offer.Mayor Candy Perez and Selectman George Closson voted for the offer.Before the vote, for over an hour at Monday’s meeting, the selectmen went over the details of a draft contract between the town and Laurel City Revamp written by town attorney Kevin Nelligan.Fracasso, who at a previous meeting accused Renzullo of having a conflict of interest in presenting the offer to the selectmen, once again expressed his objections to Renzullo’s offer.This time Fracasso told the board that he did not believe Renzullo had the funding or the skills to complete any remediation or renovation plans at the Capitol Products building.“While it may be true that no qualified or experienced developers are currently interested in the property, it should be kept in mind that entering into an agreement with [Laurel City Revamp], an entity with little or no relevant experience or current financial capacity to complete a project of this magnitude, effectively precludes us from working with any other well-financed developers that may come along in the future,” Fracasso said. “Along those lines, I think it has become inherently clear tonight that there is a major recurring problem [in Renzullo’s plans] in every step of the way, and it’s money. I just don’t think [Renzullo] has the financial backing to sustain a property of this magnitude. “I asked, along with the other selectmen, that we have some confirmation that he has some funding in place. [Renzullo] won’t do that. It’s a huge issue. If he does not get any brownfield [funding], how is he going to do this? I applaud Michael for having a well-intentioned idea, but if he does this I think he’s going to fall into a pit. A money pit.”Beadle agreed with Fracasso and said she wanted to see financial information relating to Laurel City Revamp before any agreement was reached between the town and the nonprofit organization.“Since [Laurel City Revamp] is a 501c3, we can get the financial information through the Freedom of Information Act and we should have access to those,” Beadle said. “I have concerns that we don’t have the financial information and this is not the first time [the selectmen] have brought this up. It has been one of the biggest concerns of the board that he has financial backing in place.”Closson once again voiced his support for the project, as he had at past meetings.“This property has been sitting there for a long time,” Closson said. “If someone has millions of dollars in assets, they are not jumping up and down and coming to town. This is a very unusual opportunity from the town’s standpoint that he owns the building. You have to explore unusual approaches to get this off the ground and act as a catalyst for other projects. I think we have to take some risks.”After the meeting, Renzullo said he was disappointed with the board’s vote and blamed it squarely on politics.“The Republicans are not interested in economic development,” Renzullo said. “This offer was overly generous. However, I do have a number of other avenues I can take. I’m now looking at plan b. But the truth is that [the selectmen’s] minds were made up before [the vote] ever happened. There was no way to satisfy them so that they would vote [for the plan]. Absolutely the decision was a political, not a doubt about it. One hundred percent political.”Because of the vote, Renzullo said any renovation work on the building would be limited.“The minute I increase the value of the building they [the town] can foreclose on it and eliminate all the work I have done,” Renzullo said. “I’ll clean up the exterior and do cosmetic repairs to the outside of the building. I will set up an office in the building, but I doubt that a restaurant will come into the building until the building is secured.”Renzullo said any prospective deal with any lender would be on hold until the building is free and clear of liens.“It’s going to take some time,” he said. “Honestly, the easiest way to do this is to wait for the election of a new Board of Selectmen who will probably be more amicable to progress in Winsted.”Economic Development Commission Chairman Bill Pratt said he sees and understands both sides of the issue.“I’m torn,” Pratt said. “I think [Renzullo’s] plans for the rehabilitation of the building are good and valid. By the same token, the question of financing is a catch-22. I don’t blame anybody [for the selectmen’s vote]. I don’t think it was a malicious decision. It was a decision made in the best interest of the town.”

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