Mark Zaretsky
BRANFORD — A major, mixed-use development project to put 10 buildings with 205 residential units on the former site of Atlantic Wire is up in the air again, with a new lawsuit the property owner has failed to do required environmental cleanup.
The developer of the Atlantic Wharf project, Metro Star Capital LLC, filed the lawsuit in February, claiming damages greater than $15,000 against property owner 1 Church Street LLC.
The 7.7-acre property is located along the Branford River, within walking distance to the center of town and the Shore Line East train station. The 10-building, mixed-use complex would feature 205 residential units that would be a mix of studio and one- and two-bedroom apartments, according to its zoning application.The development plan includes an underground parking garage with 195 spaces and a new road to be built through the complex near the side of the train tracks.
The property has been under contract for sale since Feb. 26, 2013, and the town approved the development initially in February 2015 and again in January 2017.
The developer agreed to buy it for $6 million, according to the lawsuit, first reported by the Branford Seven news site.The agreement “expressly obligates defendant to develop a remediation plan ... subject to approval by the Connecticut Department of Energy and Environmental Protection” and “then complete the work ... prior to the closing,” the lawsuit says.
The remediation plan, or RAP, was due by May 12, 2013, 75 days after the purchase agreement was executed. The lawsuit says 1 Church Street “provided an informal ‘Remedial Approach’ document’ on June 17, 2013 “that did not satisfy its RAP obligations.”
It alleges that “the closing has been held up because defendant is unwilling to expend the money necessary to properly remediate the property,” and that 1 Church Street “has failed to develop and fair and workable (remedial action plan) and has failed to conduct the required remediation.”
As a result “Metro Star is incurring present and future losses due to defendant’s wrongful and unfair delay,” the lawsuit says.
It says the delay “is jeopardizing Metro Star’s ability to complete the project given that construction is expected to take three years, and the zoning approvals are set to expire in April 2022.”
In addition, “defendant has engaged in unreasonable and imprudent demolition activities that have complicated the remediation issue and damaged the property that is to be conveyed,” the lawsuit states.
Among them, “defendant has caused additional harm by demolishing structures on the property without proper environmental management,” the suit says.Metro Star Capital and its CEO Robert Smith Jr. are represented by David Slossberg and Jeffrey Nichols of Hurwitz, Sagarin, Slossberg & Knuff of Milford; 1 Church Street and owner Kevin O’Neill are represented by Gerald Giaimo of Halloran & Sage of New Haven.
“I look forward to disproving the allegations in court,” Giaimo said Thursday.
There are actually three parcels involved, including 5.19 acres at 1 Church St., 1.19 acres at 256 Meadow St. and 1.27 acres described as Meadow Street Rear.
The property previously had been classified under the Transfer Act as an “establishment” where processes involving hazardous wastes took place, the lawsuit says.
DEEP advised 1 Church Street in April 2017 “the RAP must include a liner under the underground parking garage that is included in Metro Star’s project design” to contain contaminated soils benath the site of the old Atlantic Wire Mill, the suit says.
But 1 Church Street “proposed to install the liner either under the footings of the parking garage or in between the footing and the slab in order to make remediation cheaper for the defendent,” it says.
The U.S. Army Corps of Engineers approved the plan in early 2018.
Atlantic Wire manufactured industrial wire for 102 years. The company declared bankruptcy in 2008 and was charged with federal crimes and state violations for polluting the Branford River.
After Atlantic Wire officials pleaded guilty to the criminal charges, the owners began an extensive cleanup of the site as part of a deal with the state. A former vice president of Atlantic Wire was sentenced in 2009 to a year of probation for violating clean water regulations by failing to report toxic discharges into the Branford River.
Atlantic Wire LLC paid the state $1.5 million to settle allegations it repeatedly dumped toxic waste water into the Branford River between 2005 and early 2008.
Records show potential conflict with $3M Bridgeport contract
Bill Cummings
BRIDGEPORT — The city official fired over a scrap metal scandal now under FBI scrutiny didn’t directly recuse himself from discussions about a $3 million city garage built by a company in which he had a financial interest, city records show.
The record appears to contradict Mayor Joe Ganim’s claim that Joe Tiago recused himself from involvement with the multimillion dollar garage construction project, and nearly $700,000 in associated paving work, while he was deputy public facilities director.
The recusal would have been a way of avoiding a conflict of interest — the potential for Tiago to use his city position for his own personal business and profit.
Vaz Quality Works of Bridgeport submitted the low bid to build the garage in 2016 and was selected as the contractor.
Tiago in 2014 sold Seaview Avenue property to Luis Vaz, the owner of Vaz Quality Works, and held a $670,000 mortgage for Vaz, which meant he had a financial stake in the company’s success — which could be a conflict.
The public facilities department’s sale of scrap metal has drawn an FBI subpoena and a Grand Jury probe.Mark Anastasi, a former city attorney who now works part-time for the city, insisted Tiago recused himself and received internal city correspondence related to the garage only because of “routine procedure” by city departments.
“The garage project was one over which Tiago had general responsibility and jurisdiction,” Anstasti said. “Tiago did not participate in a decision-making process that determined Vaz would be awarded the bid and perform the project.”
Federal authorities also subpoenaed documents for city work done by Vaz Quality Works, G. Pic and Sons Construction and Seaview Equipment Rental and Sales, which is also owned by the Vaz family.
After learning Tiago held a mortgage for Luis Vaz, Ganim said last month that he was told that Tiago recused himself from the garage project.
“There is a protocol in business and in government, where there might be a conflict, to recuse yourself,” Ganim said.
City records show Tiago — at least on paper — was involved with the garage between 2016 and 2018. The records were obtained by Hearst Connecticut Media through a freedom of information request.
None of the documents released by the city include a letter in which Tiago informed his superiors he was recusing himself from the project or that he had a financial interest in Vaz Quality Works.
Tiago in February was fired as deputy director of the Department of Public Facilities after an internal review of scrap metal sales and the discovery of missing money from a so-called “Sunshine Fund” set up to pay for employee morale boosting activities.
Tiago did not return calls for comment on whether he recused himself from the garage project.
His criminal lawyer, John Gulash, also did not return calls seeking comment.
Paper trail
A review of city purchasing and other records related to the garage show Tiago was involved or informed about numerous aspects of the garage project.
For example, a September 2016 letter from the purchasing department to Tiago provided him the list of the five bids received for the garage.
Tiago was also copied — meaning he received a copy of the document — on an October 2016 letter to Ganim by Public Facilities Director John Ricci advising the mayor that Vaz Quality Works was low bidder and had been selected to build the garage.
Tiago was copied on a December 2016 letter from Ricci to Ganim alerting the mayor that documents for the project were ready for his signature.
Several 2017 letters relating to various aspects of the project also show Tiago received copies of the documents.
In a September 12, 2018 letter, Vaz Quality Works sent their price quotes to pave the garage parking lot to Tiago, records show.The next day Ricci sent a letter to the purchasing department requesting permission to give the paving work to Vaz Quality Works, noting the requested “qualified purchase” — a city term for not seeking competitive bids — would provide a lower cost because the company was already working on site.
Anastasi cited an October 2016 project review meeting in which Tiago was listed on an attendance sheet as having “excused himself” from the meeting as evidence of his “recusal” from the project.
The document does not say Tiago recused himself from the garage project and does not provide an explanation as to why he was not at the meeting.
The garage was the biggest construction project undertaken by the public facilities department in years.
Sticking with recusal
Anastasi said Tiago received copies of documents related to the garage because of his overall role as deputy director “in accordance with procedure,” adding as deputy director Tiago “initiated the original bid process for the garage.”
Anastasi said the information forwarded to Tiago was “appropriate.”
Anastasi said in addition to an ongoing internal look at the public facilities department, the city has hired Guidepost Solutions to audit city policies and procedures and “provide an assessment of potential improvements in procurement operations and practices.”
Tolls, pot stir concerns during Fairfield U. panel
FAIRFIELD — The Fairfield Masters of Public Administration Summit touched on various challenges and proposed solutions for Connecticut in the first months of Gov. Ned Lamont’s administration.
“I’m trying to see about tolls and see how realistic that is going to be,” Michael Crafter, a part-time MPA student who lives in Norwalk, said at the April 2 event. “It may cause a burden on people here, it’s also a budget situation.”
A potential tolling plan, unveiled in mid-February, would include 53 toll gantries on Interstates 84, 91, 95 and the Merritt and Wilbur Cross parkways.
Gov. Lamont’s Communications Director Maribel La Luz said that the administration’s approach was about a desire to listen at all levels.
“There’s appetite for a new style and a new willingness to listen and I think so far it’s working,” La Luz said.
Recently, Lamont hinted at a compromise with the Republican minority in both houses of the General Assembly, suggesting that short-term borrowing could be a solution for transportation and infrastructure projects before any toll revenues reach state coffers, expected to be by 2023 if passed.Liz Kurantowicz, a GOP strategist and political analyst, was more skeptical about toll revenues, noting that despite a statewide approval of a special transportation fund lockbox, funds would be diverted given the chance.
“The toll money will never be enough, it’ll go somewhere it’s not supposed to go,” Kurantowicz said. “We’ll have this discussion in 30 years.”
However, all of the topics addressed -- marijuana, paid family leave, tolls and even sports betting -- are inherently tied to the state budget.We have to see how (legislators are) going to piece all of these proposals together in a form they can pass,” Emilie Munson, a Hearst Connecticut Media reporter, said. “(These issues) seem to be independent but there’s a lot of negotiation.”
On the topic of marijuana legalization, which Lamont remains optimistic would pass this year in Hartford along with paid family leave and a $15 minimum wage, there are still pending questions.
La Luz said that the governor supported the expungement of criminal records for previous offenders if marijuana legalization came to pass. Potential revenues from marijuana sales were not presented in Lamont’s budget due to “conservative” planning La Luz said.
The panel also included Patrick McCabe, managing partner of Capitol Strategies, and Mark Barnhart, Farfield’s Director of Community and Economic Development. Max Reiss, political reporter for NBC Connecticut, moderated the discussion.