A company with a track record of working on challenging properties is researching whether it wants to tackle the Derby downtown redevelopment project.
Representatives from Eclipse Development Group of Irvine, Calif. attended the March 18 meeting of the Derby Redevelopment Agency, where they were introduced by Sheila O’Malley, the city’s economic development director.
Read the minutes from the meeting at the end of this story.
O’Malley issued a press release (also posted below) late Monday afternoon saying the company has entered a due diligence period with the city, investigating whether it wants to launch a project in the redevelopment zone, a swath of land from the Derby-Shelton bridge along the Housatonic River to the Route 8 entrance ramps.
Track Record
While Eclipse is the latest in a series of developers to express an interest in downtown Derby, Eclipse has experience turning around problem properties.
The company is responsible for North Haven Commons at 300 Universal Drive in North Haven. The commercial center is home to Best Buy, a Red Lobster and an Olive Garden.
More importantly, North Haven Commons is roughly the same size (19 acres) as Derby’s redevelopment zone (22 acres), it is situated on the banks of a river — and it required a big environmental clean-up, just like downtown will need.
To pay for the clean-up in North Haven, the city applied for funds from the state’s Brownsfield Redevelopment Authority, which gave Eclipse the money needed to perform the clean-up.
Reaction
According to minutes from the March 18 meeting — a movie theater and restaurants are natural fits for the redevelopment zone.
“Big box” stores, such as Home Depot and Sam’s Club, will not be happening in the zone, officials said.
Joe Bomba, chairman of the Derby Redevelopment Agency and a city Alderman, noted Eclipse comes to Derby from a recommendation by the Connecticut Development Authority.
“I can say right now, it sounds promising,” Bomba said. “But there’s work to be done here, as everyone knows. What we don’t want to do is go backward. By that I mean getting locked into a deal like the city was strapped to previously.”
Bomba was referring to the stormy relationship Mayor Anthony Staffieri’s administration had with Ceruzzi Derby Redevelopment, LLC. A lawsuit between the city and Ceruzzi was settled in late October 2009.
The “work” Bomba refers to is tremendous — and referenced in the minutes of the March 18 meeting, where O’Malley said she laid it out for Eclipse, telling them:
- The city doesn’t own all the properties in the redevelopment zone
- There is environmental contamination
- There is a sewer treatment plant on the property
- Route 34 is scheduled to be expanded
“Also, did I mention that everyone is leery of the next step? There is a level of mistrust over the years that centered around a downtown deal that never materialized,” O’Malley told company officials.
Despite the challenges, the company is interested in Derby.
Eclipse is going to spend the next 120 days talking to potential tenants, talking to property owners in the development zone — and researching what needs to happen to make construction happen.
According to the meeting minutes, the city will not have to pay Eclipse for the work they are doing at the moment. The city, however, must agree that they will not speak to other developers while Eclipse does its due diligence.
“Within 18 months Eclipse would be looking at putting a conceptual and final plan together and put a shovel into the ground,” the meeting minutes state.
The Redevelopment Agency voted unanimously to direct City Hall staff to draft a contract with Eclipse.
