Derby Redevelopment Zone Property Is For Sale Again, But Eclipse Still Wants It

PHOTO: Connecticut Realty GroupAn option for Eclipse Development to buy the former Lifetouch property at 90 Main St. has expired, and the 1.19-acre property is back on the market.

However, Eclipse is still trying work out a deal with Lifetouch to purchase the property.

Lifetouch hired Connecticut Realty Group, LLC about two weeks ago to begin marketing the property to other potential buyers, according to Frederick P. Petrella, the president and managing director of Connecticut Realty Group in New Haven.

The Lifetouch property is part of a conceptual redevelopment plan for downtown Derby. Eclipse has conceptual plans to build about 180,000 square feet of retail in an area stretching along the Housatonic River from the Derby-Shelton bridge through the Lifetouch property.

Eclipse had an option to purchase the property, which essentially meant Eclipse paid Lifetouch to keep the property off the market while Eclipse officials researched whether they wanted to buy it.

The option expired sometime after a September meeting of the Derby Redevelopment Agency.

Lifetouch has not returned calls for comment to the Valley Indy in several weeks.

The reason they (Lifetouch) retained us to market the property and sell it is because the Eclipse deal fell through,” Petrella said. Eclipse no longer has a contract on the property. Lifetouch decided not to move forward with Eclipse.”

However, Petrella said Eclipse still wants to make a deal.

Eclipse has contacted (Lifetouch) probably two or three weeks ago and said they are still going to try to close on the property by the end of the year, but there is no contract,” Petrella said.

Eclipse Reacts

When asked to comment on the situation in the redevelopment zone, Paul Bernard, Eclipse’s director of development, sent an e‑mail Wednesday saying they’re committed to the Derby redevelopment zone. Eclipse in based in California.

In response to your email, I want to make it clear that I have both plane and hotel reservations to be in New York the first week in December to have meetings which we hope will continue to push the development of downtown forward,” Bernard said.

My efforts on this project have been, and will continue to be extensive in what has been perhaps the worst economy in our Country since the Great Depression. The bottom line is that no development moves as quickly as any of us would like in a good, bad or stagnant economy.”

Bernard sent a second e‑mail Thursday, stressing Eclipse is still going after the Lifetouch property — along with other properties in the redevelopment zone.

We are still pursuing the acquisition of that property through continued due diligence,” Barnard said. As you know, the downtown redevelopment includes a number of pieces that we are doing our due diligence on and the acquisition of any parcels needs to not only be looked at individually, but also as a whole for the benefit of the most successful project possible.”

We are pleased with the activity to date, and information we have gathered, but we are still compiling all the due diligence we need to put together the best development we can,” he said.

What’s This All Mean?

Lifetouch is open to buyers other than Eclipse, as evidenced by the information on Connecticut Realty Group’s website.

However, the fact that 90 Main St. is back on the market could, potentially, speed up a deal between Eclipse and Lifetouch by forcing Eclipse’s hand.

Speaking generally, Petrella indicated when an option expires, the dynamics of the deal can become more intense.

It would be here’s the money, here’s the cash, let’s go. In essence, that’s what Lifetouch is in a position to request,” he said.

When asked if this is unusual for an option to expire, Petrella said:

No, it’s standard operating procedure when you go through a major redevelopment project like this,” he said.

Derby Official Reacts

Sheila O’Malley, Derby’s economic developer, said attorneys for Eclipse and Lifetouch area still talking to each other.

Eclipse switched financial partners several months ago, O’Malley said. The company’s new financial partners wanted more time to complete their due diligence, which delayed the purchase.

It essentially started the clock over,” O’Malley said.

Eclipse wanted to extend the option to keep the Lifetouch property off the market, O’Malley said, but that did not happen.

O’Malley said she is confident Eclipse will purchase the Lifetouch property.

Listen, they have to purchase the property to do the downtown deal. I have confidence in Eclipse. I solemnly believe they are doing the downtown deal. It is just a matter of time,” O’Malley said.

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