The whole $7 million, returned to taxpayers? Maybe.
With a zone change for multifamily on 10 acres in the works, and potential buyers looking at three other areas, First Selectman Rudy Marconi believes the town may be within reach of recovering its $7-million investment in the former Schlumberger property.
“All of it, and more — potentially, optimistically speaking,” he said Tuesday.
Townspeople approved spending $7 million on the 45-acre property in late 2011 — a $6-million purchase price and $1 million for costs such as surveying, lawyers, and demolition of the firm’s abandoned research complex.
A significant step toward recovering something close to the $7 million is the zone change proposed for 10 acres along Sunset Lane — an area the state Department of Energy and Environmental Protection (DEEP) deems suitable for development without concern about pollution on the site.
The town has proposed a zone change to the Multi-Family Development District, or “MFDD zone,” currently on the Planning and Zoning Commission’s books. The zone change application was put together by Glenn Chalder of Planimetrics, a consultant to the selectmen, and has been scheduled for a June 11 public hearing by the Planning and Zoning Commission.
The zone, which was used to build the nearby Quail Ridge condominiums, allows up to six units an acre, with an option allowing eight units an acre if 20% are affordable, which allowed the construction of Ballard Green.
But Mr. Marconi envisions a process under which the selectmen might prefer something less dense, and could enforce their preference with deed restrictions.
“Let’s say we got an approval for the zone change,” he said. “We’d put together an RFP calling for bids with plans showing the architectural renderings of the type of buildings, number of units, number of bedrooms, locations, etc., along with a proposed purchase price … an ‘RFP’ — request for proposals — that will call for concept plans, along with a bid for the 10 acres,” he said.
“Once that concept plan is reviewed by the Board of Selectmen, and any changes or modifications are made to it as required by the Board of Selectmen, the contract for sale would specifically detail the approved plan: number of units, location, style, all of that.”
Further zoning approval would still be needed.
“The applicant would then need to proceed with an application to P&Z for approvals to construct,” he said.
With the state DEEP having already ruled that the 10 acres along Sunset Lane may be marketed without further pollution studies or cleanup, the selectmen have been focused on that.
“Hopefully, we can make it through the Planning and Zoning Commission’s process by the end of July,” Mr. Marconi said.
There’s also been progress on roughly 30 acres between Sunset Lane and Old Quarry Road, Mr. Marconi said. The area includes the bulk of Schlumberger’s old research “campus,” and needs environmental cleanup, or “remediation,” mostly because of old heating oil tanks that leaked.
The cleanup is being done at Schlumberger’s expense, with its consulting firm, GZA Environmental, preparing a “remedial action plan” under the oversight of the DEEP.
“Things are moving along the channels that we’d hoped they would,” Mr. Marconi said last week. “We’re expecting approval of the ‘RAP’ — remedial action plan — by the DEEP sometime in the beginning of June, I’d say, the next three to five weeks.
“That approval will allow us to commence with the remedition plan that hopefully will be completed in the next year, along with necessary demolition.”
The cleanup is being handled by Schlumberger, its consultants, and the DEEP, but demolition is a town job.
“The demolition specs have been put together by our town engineer, Charles Fisher, and they are quite extensive,” Mr. Marconi said.
The goal, eventually, is to see if portions of the 30-acre area can be sold.
“We are having many discussions with different parties about possible sales,” Mr. Marconi said. “But, remember, we cannot really sell anything until the remediation has been completed and signed off by the DEEP.”
Mr. Marconi couldn’t say how much time that may take.
“A lot of it is going to be dictated by DEEP and the remediation that has to take place,” he said. “The remediation issue has to do with leaking oil tanks. There were several tanks, some minor locations, but one major area.
“This does not impact the 10 acres located along Sunset Lane,” he added.
The town is still talking to a potential buyer who is interested in about 13 acres of the old Schlumberger campus with the thought of saving some of the buildings — including the Philip Johnson building, the library and, possibly, the theater — for use housing a large art collection.
“We continue to move forward with negotiations,” Mr. Marconi said.
But the town doesn’t want to go through with a sale of this part of the property until after the environmental cleanup has been completed and approved by the state — to do so would increase the town’s legal responsibility over the environmental work. So the selectmen are looking for an arrangement that would protect everyone’s interests.
“We want a full contract to purchase, with an understanding the occupancy would take place prior to the actual purchase date under some kind of special arrangement in consideration for some type of mandatory down payment,” Mr. Marconi said.
“I’m in the process of negotiating. But progress is being made,” he said.
The first selectman said he has also been approached by a potential buyer for a five-acre parcel across Old Quarry Road from the rest of Schlumberger, between the Ridgefield Fitness Center and the town sand and salt barn overlooking the highway garage.
“We have an offer on the five acres. And negotiations continue for that particular parcel,” Mr. Marconi said.
The town has been approached about one other area, part of the larger 40-acre area between Sunset Lane and Old Quarry Road, which also includes the 10-acre being rezoned, the area the art collector is interested in, and some open space.
“I haven’t discussed it with the Board of Selectmen, but I have an inquiry: Would it possible to do this? We’re interested,” Mr. Marconi said.
There remains the issue of whether some land should be kept for later “town use” — a police station, a fire station?
“The question that begs is, Do we want to sell everything we have, other than some open space and wetland area, without considering the future demands of the town, whatever those many be 25, 30 years from now?” Mr. Marconi said.
The price land brings in from developers depends on how much can be built there. That’s why the town wants multifamily on Sunset Lane.
The first selectman said he’s looked at possible scenarios with Assessor Al Garzi, with an eye toward reaching the $7 million spent acquiring the 45-acre property.
“I always sit with a calculator and begin estimating: The 10-acre parcel, let’s say we’re in the 32-to-35-units range, and you can get $125,000 a unit — Al feels that should not be any problem, I was at $100,000 but he feels $125,000 is certainly feasible. That’s $4 million,” Mr. Marconi said.
“If we can generate $2.5 to $3 million for the 13 acres, another $750,000 to $1 million for the five acres, I think we’ve covered ourselves. …
“But again, this is speculation at this point,” he said. “We won’t really know until the ink dries on the contracts — none of which exist at this point.”