Town officials are alleging that Housatonic Wire owner Alex Budzinski set himself up as a $30,000 paid “consultant” in connection to the cleanup at his burned-out former factory.
First Selectman Kurt Miller is questioning the arrangement because the money allegedly being paid to Budzinski is coming from a $200,000 low-interest loan from the state that was supposed to be used to clean up the site, which was destroyed by fire Sept. 11, 2010.
Miller went public with the allegation during Tuesday’s Board of Selectmen meeting.
“As a taxpayer I just find this offensive,” Miller told the Valley Indy. “It’s a no-interest loan and to find out it is being used in this way is just disturbing. There are a lot of other businesses out there that could use a loan like this and would have used it in the right way. For Mr. Budzinski to use money in this way, I just find it very offensive.”
A message seeking comment was left Wednesday on Budzinski’s cell phone. His lawyer is Francis Teodosio, who said he was not aware of Miller’s public statements. Teodosio said he could not comment further.
The $200,000 loan was given to Budzinski’s Housatonic Wire from the state Department of Economic and Community Development (DECD). Budzinski is using the money to hire contractors to clean up the site and demolish the remaining structures.
A spokesman for the DECD said his agency is reviewing the matter.
What The?
The delays in the Housatonic Wire cleanup have frustrated town officials and residents because the property is one of the most visible in town. The cleanup and lack of progress was even a political issue in the last First Selectman campaign.
The demolition work at the property on River Street is running 30 to 45 days behind schedule, Miller said. The remaining damaged structures should have been removed by now, Miller said.
The First Selectman said town officials learned that work had stopped at the site due to a dispute over money between Budzinski and EnviroGuard, the Seymour-based company handling the cleanup.
Miller said last week he sent Seymour Economic Development Director Fred Messore to meet with Budzinski and EnviroGuard owner Mark Constantini in an attempt to mediate the dispute.
Budzinski and EnviroGuard were arguing about when Budzinski was supposed to make payments to the contractor, Messore told the Valley Indy.
To help mediate the argument, Messore said he asked to see a copy of the contract between Housatonic Wire and EnviroGuard.
Budzinski’s consulting fee was revealed as he argued with Constantini, Messore said.
A message seeking comment was left with Constantini.
The Agreement
Messore said he eventually received a contract which included an agreement by which Housatonic Wire was to be paid $30,000 in three $10,000 payments for consultant work related to providing “historic structural, environmental and subterranean advice” to the project.
A copy of the contract, which was released to the Valley Indy through a Freedom of Information Request to the Town of Seymour, is posted at the bottom of this article.
Messore said neither town officials, town attorneys, nor the state of Connecticut were aware of the consulting agreement. Messore said Budzinski’s own attorney wasn’t aware of the consulting agreement, either.
Messore and Miller said the loan from the state to Housatonic Wire was supposed to be used to cleanup the site and demolish buildings — and nothing else.
“This agreement was made solely by Alex to entice or use leverage on who he would select to do the job, so he could then say if you are selected you have to pay me a consultant fee,” Messore said.
EnviroGuard signed the document because they wanted the job, Messore said.
Meanwhile, a contractor who monitored air quality at the site complained Budzinski owed him $5,000 for his work. The cleanup at the site can’t proceed to its next phase until the state receives a sign-off letter from the air quality consultant, Miller said — and the air quality contractor isn’t signing the letter until Budzinski pays him.
Miller said the air quality contractor wasn’t paid because Budzinski was looking for his “consulting” payment.
“There wasn’t enough money available because money was earmarked to Mr. Budzinski,” Miller said.
The “addendum” setting up Housatonic Wire as a $30,000 consultant is dated Jan. 6. The contract describing the scope of work between EnviroGuard and Housatonic Wire is dated Jan. 12.
The dates are a concern to Seymour officials.
“Why would you sign an addendum to a contract before you signed the contract?” Miller asked. “Supposedly he has already received $10,000 but Mr. Budzinski understands he can not receive the remaining $20,000.”
Next Steps
Messore said the cleanup at the site can continue, as long as Budzinski stops asking for the $30,000.
“At the end of the day someone is going to have to be accountable for what the expenditures for this contract,” Messore said. “I don’t think, based on my conversations with the state, they are going to support funds going to the owner to be paid for consultant work. It’s supposed to be used for demolition work.”
In addition to reporting the situation to the state, Miller said town lawyers are looking into the matter. When asked if Seymour may file a civil lawsuit, Miller said:
“I don’t know, to be honest. I’ve asked town counsel to review all possible scenarios for the town.”
