A Google Maps image showing 2 Factory St. in Derby.
DERBY – U.S. Rep. Rosa DeLauro announced on March 6 that she secured $1 million in funding for downtown Derby.
In general, the money is being used for “transportation-oriented development,” which refers to development built near public transit hubs.
In Derby, city government could use the cash infusion to make its redevelopment zone between Main Street and the Housatonic River more attractive to developers – a goal for decades.
The Derby redevelopment zone is within a transit hub.
It’s within walking distance of the Derby-Shelton train station and Valley Transit’s bus headquarters, and it’s next to Route 8. Currently, contractors working for the state Department of Transportation are expanding heavily travelled Main Street, also called Route 34, to improve traffic flow.
Specifically, the money is going toward two Derby initiatives:
To help the city purchase a scrapyard
To build a road that will extend Factory Street through Caroline Street and connect to Main Street opposite Elizabeth Street
The press release from Rep. DeLauro does not name the scrapyard, but Derby government has been negotiating to acquire a property on Factory Street for years. Click here to learn more about DeLauro’s request.
The property at 2 Factory St. has been a scrapyard for decades. It is owned by Andrew Jacobs, according to land records. A tenant, Rubino Brothers, Inc., currently operates the business.
The city wants to see the scrapyard removed or relocated because developers have said it’s a hindrance to development. A market rate apartment next to a scrapyard might not be an easy sell, developers have said.
In 2021, Mayor Rich Dziekan’s administration offered $915,000 for the property, which the city said was based on an appraisal. However, the property owner, through attorney Dominick Thomas, had an appraisal showing the property was worth $1.6 million.
The 2021 offer was rejected, but the city and the property owner kept negotiating.
There was also talk in Derby of taking the scrapyard property through eminent domain, and an internal debate within Derby government as to whether eminent domain would be cheaper than a purchase. If taken through eminent domain, the property would have to be used for the public, such as a municipal parking lot. If a straight buy the city would presumably work a deal with a developer.
In 2023, the Dziekan administration brought forth a plan to purchase the property for $1.35 million – and to help the tenant move the scrapyard to land behind BJ’s on Division Street.
However, the Board of Aldermen & Alderwomen never acted on the contract, and Dziekan was not re-elected in November.
The money being released was requested under Dziekan’s administration.
Thomas, the attorney representing the property owner at 2 Factory St., said his client is ready to sign the deal worked out last year.
Thomas said the announcement from DeLauro’s office is “very promising.”
“My clients are looking, hopefully, to proceed along the terms of the agreement we had with the city,” Thomas said.
A March 2023 email to the Dziekan administration from the state Department of Economic and Community Development (DECD) shows the DECD was willing to reimburse Derby $915,000 of the $1.35 million purchase price.
Rep. DeLauro’s $1 million announcement does not specify how much of the money goes toward purchasing 2 Factory St. and how much goes toward extending Factory Street.
The Valley Indy reached out to Mayor Joseph DiMartino for comment. His office referred a reporter to the DeLauro press release in which he thanked the Congresswoman for the money, which will help downtown Derby.
“TOD (transportation-oriented development) is the bedrock of our strategically positioned City center adjacent to the Transportation Center, Train Station, Bus Route and junction of Route 8 and Route 34,” according to the statement attributed to Mayor DiMartino.
There wasn’t specific information available this week on the construction of a new road in the redevelopment.
However, in the past the city has talked about building a U‑shaped road through Derby’s redevelopment zone. The road would start at Factory Street, run west through undeveloped land parallel to Main Street, and then curve north to connect to Main Street across from Elizabeth Street.
This illustration by Jasmine Wright using Google Maps shows what the 'u-shaped' road in Derby's redevelopment zone could look like.
