City officials took two steps Tuesday meant to kick start redevelopment along Main Street.
First, the city’s Redevelopment Agency formally endorsed a “mixed use” concept in the 22-acre zone, which stretches along the Housatonic River from the Derby-Shelton Bridge to the Route 8 entrance ramps.
Second, the agency authorized Sheila O’Malley, the city’s Economic Development Director, to divide the redevelopment zone in chunks and draft requests for proposals (RFP) for the different parts.
The city’s RFP would include a description — meant to be read by developers — describing, in general, the types of activity Derby wants there.
The moves indicate city officials are confident at least one portion of the redevelopment zone — specifically the former Lifetouch property and the former Housatonic Lumber Co. — will be redeveloped fairly quickly.
That portion of the zone, next to Route 8, is zoned for commercial use.
At least one developer — Southern Realty and Development of Warwick, N.Y. — has expressed an interest in purchasing the property and converting it into a grocery store, pharmacy and, possibly, movie theater.
However, the Housatonic Lumber property entered foreclosure and was purchased by someone other than Southern Realty at a public auction. How that issue will resolve itself remains to be seen.
Still, Alderman Ken Hughes asked whether O’Malley could have a RFP ready by the Redevelopment Agency’s next meeting, scheduled for Dec. 8.
O’Malley said she would work on it.
Michael Kelleher, a member of the Redevelopment Agency, said any potential developer interested in downtown must provide a detailed resume — including financial data showing the company can get the job done.
“We don’t want fly-by-nighters,” Kelleher said.
Workshop?
In September, the Redevelopment Agency passed a motion saying they would have a workshop on the downtown redevelopment project. Agency members said they wanted to invite public officials, residents and developers for a brainstorming session on the project.
Hughes told the Valley Independent Sentinel last week he didn’t think such an event was necessary and doubted whether it would take place.
The about face caused some public outcry at Tuesday’s meeting.
Carl Yacobacci, who owns land and a building on Main Street in the redevelopment zone, urged the agency to hold the meeting.
“I would hope that the board would reconsider, because that was something the public … was really looking forward to,” Yacobacci said.
Former Mayor Marc Garofalo also urged the Agency to hold the workshop, as promised.
“Clearly, people in September had an understanding that was going to take place because the board voted unanimously to that end,” Garofalo said. “Nothing happened in two months during that time, so as not to have a discussion during an election cycle.”
Agency members did not respond directly to the comments, but during the course of the meeting, noted any project would face the scrutiny of the various city boards and be subject to public hearings.
Members also said the “mixed use concept” — that is, redeveloping the area with a mix of retail and residential use — has been on the table for many years.
Later in the meeting, O’Malley revealed another reason the Redevelopment Agency has suddenly picked up speed — a new potential funding source that could lure developers to invest downtown.
Federal money scheduled to arrive to the state via the American Recovery and Reinvestment Act of 2009 includes a program that could see the state issue bonds to developers willing to invest in downtown Derby.
The money from the program would then be used to cover 45 percent of the interest on the bond, O’Malley said.
However, the program is meant for “shovel ready” projects — which means the Redevelopment Agency has to move quickly if it wants the city to qualify.
The state wants a list of potential projects by early December, O’Malley said.
