Valley Independent Sentinel

Derby Settles Downtown Lawsuit

by Eugene Driscoll | Oct 22, 2009 9:49 pm

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Posted to: Derby

The city’s Board of Aldermen voted unanimously Thursday to settle a lawsuit involving downtown development for $1.75 million.

The vote came after the Aldermen discussed the matter in a lengthy executive session.

Executive session meetings are closed to the public, which is allowed in certain cases, such as when officials discuss legal strategy with their attorney.

The vote to settle — taken in public, after the executive session — effectively ends the lawsuit brought on in 2008 by Ceruzzi Derby Redevelopment, LLC, the developer who partnered with Derby on a large downtown redevelopment project.

Ceruzzi had been hired when Democratic Mayor Marc Garofolo was in office.

Citing a lack of progress, the Republican controlled Aldermen Board voted to throw Ceruzzi off the job in December 2007. The company sued for breach of contract, but made an offer to settle Sept. 25.

The settlement offer had a deadline of Oct. 25. Derby tried to get that pushed until after the Nov. 3 election — a move that irked Ceruzzi’s lawyer and local Democrats trying to unseat the Republicans.

Ceruzzi Derby Redevelopment, LLC, in its lawsuit, claimed they were owed at least $4.5 million for services performed.

Derby officials put the number at about $1 million.

Ken Hughes, the president of the Board of Aldermen, read a statement into the record at the Aldermen meeting Thursday.

“The offer presented to us by the developer includes money we know we owe them per the original contract, therefore we feel it is in the best interest of the taxpayer to settle this case with the developer for $1.75 million,” Hughes said.

Click the video to hear Hughes’ entire statement.

Anita Dugatto, a member of the Democratic Town Committee and a candidate for the city’s tax board, was miffed that part of Hughes’ statement was tinged with politics.

“It’s now about politics? Then what’s this?” Dugatto said, pointing to a line in Hughes’ statement that read, in part, “Now, with the shadow of the past administration finally lifted . . .”

Still Dugatto and Rob Hyder, a Democratic candidate for the city’s Third Ward, said they were glad the city is opting to settle the lawsuit.

Hyder, however, said the Board of Aldermen should not have thrown Ceruzzi off the job.

“I’m glad to see it’s resolved, but unfortunately it’s going to cost the taxpayers almost $2 million,” Hyder said.

The settlement still has to go to a judge for review —- a formality.

How Derby will pay the money remains to be seen. That’s up to the city’s Board of Taxation and Apportionment, officials said.

Carl Yacobacci, who owns land and a building on Main Street in the redevelopment zone, said he was glad to see the case resolved.

“I do believe the contract had to be broken,” said Yacobacci, who, at times, has been in conflict with Mayor Anthony Staffieri’s administration over the redevelopment project.

On July 1, a judge ruled that the relationship between the city and Ceruzzi Derby Redevelopment, LLC was beyond repair.

That ruling allowed the Staffieri administration to entertain other ideas for redevelopment.

John Guedes, of the Primrose Companies in Bridgeport, appeared over the summer at a meeting of the city’s Redevelopment Agency, offering a concept that would see several different companies build different parts of the redevelopment zone.

“I’ve seen more progress in the last four-to-five months compared to the last five years,” Yacobacci said.

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