ANSONIA — The city could become the new owner of 32 acres in the Fountain Lake Industrial Park. Mayor David Cassetti’s administration is in talks to receive the land as a gift, in exchange for forgiving back taxes owed by the property owner.
The land in question is located at 405R Birmingham Blvd. in the Fountain Lake Industrial Park. It is currently zoned industrial and is owned by the Downtown Cabaret Theater in Bridgeport.
Hugh Hallinan, the Cabaret’s executive director/producer, sent city corporation counsel John Marini a letter Jan. 23, saying the theater wants to donate the land to Ansonia.
Hallinan did not specify a reason in the letter about why he wanted to give Ansonia the land.
The Valley Indy reached out to Hallinan via email and phone seeking comment but did not hear back.
Marini said the property has been on the city’s foreclosure list for failing to pay taxes.
The property has $148,567.65 in back taxes going back to 2019, according to the city’s tax office.
According to the tax office, the property’s previous owner, Fountain Lake LLC, transferred the property to the Cabaret Theater in Dec. 2020. A tax bill was sent to the new owner on Jan. 2, 2021, according to the city.
That bill was not paid. Subsequent tax bills for each year thereafter were also mailed to the Cabaret Theater.
“No payment was ever made and is still outstanding,” Ansonia Assistant Tax Collector Gloria Caulfield said. “Additionally, the 2020 and 2021 taxes are past due, as well.”
Caulfield said the delinquent bills were turned over to the city marshal.
City officials said the theater company owes the taxes even though it is a nonprofit entity.
The theater was advised to file paperwork locally with the tax assessor to become tax exempt, but the company never did so, according to the Ansonia tax office and the corporation counsel.
The Valley Indy confirmed with The Connecticut Community Nonprofit Alliance that nonprofits are required to file for exemption status.
Seven days after the company sent a letter asking to donate the land last month, members of the Ansonia Planning and Zoning Commission issued a positive “8 – 24” referral to the city to accept the donation of land in lieu of back taxes. The 8 – 24 is a requirement under state law compelling a city to get input from its PZC on land deals.
Marini said the next step is to bring the matter to the Ansonia Board of Aldermen and have them weigh in on the donation.
That could happen at the Aldermen’s Feb. 14 meeting.
Marini said if the Aldermen vote to accept the land donation, then the city would obtain a fair market value appraisal and consider its options.
“The city has an interest in facilitating development,” Marini said. “Stagnant properties do not help our taxpayers, schools or services.”
Marini said acquiring the land by a “friendly foreclosure” would be less expensive than taking the property owner to court for a formal foreclosure process.
According to the latest information from the city’s assessor’s office, the 32-acre parcel has an appraised value of $1.6 million, and an assessed value of $1.1 million.
Marini said if the city were to accept the land and ultimately try to sell it, the city needs to obtain an updated appraisal.
“The property would likely be placed out to bid thereafter. As always, the city would be looking for the highest and best use. This property is located adjacent to the Farrel Corporation and the emerging paintball complex. We would expect a commercial use. It makes sense to accept the property in lieu of taxes, so we can get it back on the tax rolls.”
Another Option For A New Middle School?
Tony Levinsky, a member of the Ansonia commission, told The Valley Indy acquiring the land would be a win for the city, especially since the city and the Ansonia Board of Education are scouting the city for a new location for Ansonia Middle School.
Levinsky is also part of a committee searching for a new middle school location. He said the property could be another option, potentially.
Marini and Ansonia Economic Development Director Sheila O’Malley said the land is best suited for commercial and or industrial development — but it could also be evaluated as a potential site for a new school.
O’Malley estimated that between eight and 10 acres are developable, out of 32 acres.
The city is currently negotiating with the owner of a 27-acre parcel 64 – 78 Pulaski Highway in an attempt to acquire that property for a new middle school. City officials have called that property a front runner for a new middle school, but there’s been no decision yet.
The current middle school on Howard Avenue is nearly 90 years old.
Josh Shuart is the president of the Ansonia Board of Aldermen and the chairman of the middle school building committee.
“The committee will hopefully do due diligence on any piece of property. We are not there yet in terms of site selection for the middle school,” Shuart said.
The building committee is scheduled to meet again on Feb. 16.
The Cassetti administration previously expressed an interest in purchasing the property in 2021.
City officials told The Valley Indy in September 2021 that there were two manufacturing companies interested in the parcel. The city did not pursue a purchase. Robert Scinto (of Fountain Lake LLC) was the previous landowner. His company donated the land to the Downtown Cabaret Theater in December 2020.
A Google Map showing the area of Birmingham Boulevard on Ansonia, close to the Seymour border.
