The former Lifetouch property on Main Street has two interested buyers — but neither of the suitors is Eclipse Development, the company trying to breathe life into Derby’s redevelopment zone.
Background
At a Derby Redevelopment Agency meeting last week, Douglas Gray, president of Eclipse Development, told city officials the company wanted to start work on a 30,000 square-foot retail center either in the spring or summer of this year.
Eventually the company wants to create about 160,000 to 180,000 square feet of retail space in the city’s downtown redevelopment zone. The other retail spaces would be created in phases, assuming the economy improves.
The redevelopment zone stretches from the Derby-Shelton bridge along the south side of Main Street all the way to the Route 8 south entrance ramp next to the Lifetouch property at 90 Main St.
In an interview with the Valley Independent Sentinel Feb. 8, Sheila O’Malley, Derby’s Economic Development Director, said Eclipse Development is finalizing a deal to purchase the former Lifetouch property. O’Malley said she based her statement on information from Eclipse.
No Deal
However, the information prompted Frederick P. Petrella, the president of the Connecticut Realty Group, LLC, to contact the Valley Indy.
Petrella is marketing 90 Main St. for Lifetouch, a company based in Minnesota.
Eclipse hasn’t been in contact with Lifetouch for months, Petrella said. There is no deal in the works, he said.
“I would love to have Eclipse step up and buy the property, but we just haven’t heard from Eclipse,” Petrella said.
Meanwhile, Lifetouch executives and Petrella exchange e‑mails about once a week, he said.
Petrella said he wants the community to know Lifetouch doesn’t have a deal because he is still trying to find a buyer for the 1‑acre property, which is on the market for $850,000.
“We have two parties that are flying around the site, doing their due diligence and trying to line up tenants,” Petrella said.
O’Malley said Eclipse is still interested in buying the Lifetouch property.
“I think it depends on how you want to look at it,” she said. “I know Doug (Gray) has spoken to them (Lifetouch) several times and knows what he needs to make a deal. I am quite certain Doug knows exactly what he needs to purchase Lifetouch.”
“It may be that from the seller’s perspective it can’t be sold fast enough,” O’Malley said.
Eclipse didn’t return messages.
In the past, the Lifetouch property has been identified as a key parcel for the potential redevelopment of the area.
What’s It All Mean?
If the Lifetouch property isn’t part of the Eclipse project in the Derby redevelopment zone, what does it mean for the Eclipse’s plans?
Not much, Petrella said.
“Right now, I think the master plan has Lifetouch being used as a means of ingress or egress,” Petrella said. Eclipse would simply have to move an entrance and exit to whatever they end up building in the redevelopment zone.
Petrella said any redevelopment of the Lifetouch property would also be retail — as opposed to industrial, which wouldn’t jive with Derby’s vision for the south side of Main Street.
Petrella said he spoke with O’Malley Feb. 10 to discuss the Lifetouch situation.
“I think she was concerned that we would try to get something in there that wasn’t conducive to the redevelopment project. I told her we’re discouraging an industrial use at the site.” Petrella said. “We’ve had many inquiries from industrial users, but we’ve said point blank ‘Don’t waste your time, the city won’t allow it and it is really prime for retail development.’”
Believe It Or Not, It Is Still Early
Any plans Eclipse has for the redevelopment zone are conceptual at this point. The company has not obtained permits from Derby City Hall or filed a formal site plan application with the city’s planning agency. The company still has to negotiate deals with several private property owners in the redevelopment zone.
Eclipse has spent the last year trying to line up tenants. They have enough interest to proceed with 30,000 square feet of commercial space, Eclipse told Derby officials last week.
Larger tenants have been reluctant to commit to the project because the retail world is still waiting for the economy to strengthen, Eclipse has said.
Petrella said he is going through the same experience locally. Major retailers such as WalMart and Target are already in the area. Plus, Boston Post Road in Milford, the closest large retail area, has several vacancies waiting to be filled.
Retailers are staying put, neither expanding nor contracting.
“The market just isn’t great right now, that is a fact,” he said.
It’s a tough, tough market, Petrella said — as evidenced by Lifetouch’s relatively low asking price of $850,000.
“We had recommended a higher price, but Lifetouch said ‘No, want to sell it, get it off our books and move on,’” he said.
Petrella said the Lifetouch property is somewhat constrained, but it is a good fit for something relatively small, such as a Dunkin Donuts with a Subway sandwich shop.
