Pulaski Highway, in between Fitzpatrick Road and Farrel Drive.
ANSONIA – An Ansonia landowner is accusing the city of twisting the rules to devalue land the city wants to purchase for a new middle school.
In a lawsuit brought before U.S. District Court in Connecticut, Ansonia Orchard LLC sued the city over a zoning regulation change that it says allowed the city to shave a property’s value from $5 million to $1.5 million. It said the city is attempting to take its land without paying them fairly.
The property in question is a 25-acre tract of land at 64 – 78 Pulaski Highway. Half a mile from Ansonia High School, city officials have been eyeing it as the possible site for a new middle school for years.
The lawsuit alleges that the city’s planning & zoning commission repealed a zoning regulation which would have allowed the company to build apartments on the property. By taking away that permission, the lawsuit argues, the city was able to assess the land for far less than it’s actually worth.
“This case is a textbook example of a local government abusing its zoning power to amend its zoning regulations to devalue property identified for acquisition for public use and reduce its just compensation obligation,” the lawsuit states.
Background
Ansonia Orchard LLC – a subsidiary of New York real estate firm Fortitude Capital – purchased the land in July 2022 for $1.15 million. Discussions between the company and the city began in 2021, while the company was still working to buy the property.
According to the lawsuit, a city-obtained appraisal valued the property at as high as $5 million in September 2021. The city then offered $1.7 million in December 2021. The company said no.
At the time, the property fell under a “cluster zone” regulation. The lawsuit states that that regulation would have allowed the company to build multi-family housing on the property, which is normally zoned for single-family residential.
However, in July 2022, the planning & zoning commission repealed the section of its regulations regarding cluster zones. The lawsuit states that this decision lowered the value of the property – and that the city didn’t tell the company about the change.
In 2024, the city renewed its efforts to acquire the property after budgeting $100 million for the construction of a new middle school. Under a state bill passed last year, the city is eligible to get 87 percent of that cost reimbursed, leaving it liable for just $13 million of construction costs.
In September 2024, the city obtained two appraisals for the property. Both appraisals valued the land at $1.5 million – significantly less than the $5 million earlier claimed by the company. The city offered to buy the land for $1.5 million that same month.
The lawsuit accuses the city of engaging in “inverse condemnation.”
The lawsuit asks for the zoning regulation change to be overturned; for the city to be required to make a higher offer if it wants the land; and for damages and legal fees to be paid by the city.
City Reaction
The city has until March 16 to respond to the complaint. It hasn’t taken any action yet, though two attorneys from Wethersfield law firm Howd & Ludorf have filed appearances on behalf of the city.
Ansonia Corporation Counsel John Marini told The Valley Indy that the lawsuit is meritless. He said the company misunderstood the zoning regulations, and that the land was never worth $5 million.
He said the city had asked for its two recent appraisals of the land to be revised as if cluster zoning were still allowed. He said he expects the revised appraisals to be done in three to four weeks.
Note: this story was revised to eliminate a confusing direct quote.
