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Meridian - Creating extraordinary values in real estate

Ideal Forging cleanup revived

Published: March 17, 2009

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By Leslie Hutchison

Record-Journal

March 17, 2009

SOUTHINGTON – It’s been almost a year since Meridian Developers of new York City moved one step forward – and then two steps back – on its plans to renovate the old Ideal Forging site near Mill and Water streets.

The state legislature last spring approved a bill that would have allowed the developer to create a special tax district to fund the cleanup of the 14-acre factory property. In June, however, Gov. M. Jodi Rell vetoed the bill, saying other projects that had been added to it would cost the state money.

Meridian is now back with a new bill, which was unanimously approved by the Joint Committee on Planning and Development on march 10. The Greenway Commons Improvement District bill could now go before the House Finance, Revenue and Bonding Committee or straight to the House floor, said state Re. Bruce P. “Zeke” Zalaski, D-Southington.

“It will move right along. They all know it has to move quickly,” Zalaski said. He said the legislation could be approved sometime in April.

Zalaski said he told his colleagues in the House and Senate not to try to attach any bills to the original legislation. That action last year is what caused the bill to fail, Zalaski has said. Last May, both Norwalk and Naugatuck added last-minute wording to the bill.

Economic Development Coordinator Louis Perillo III testified in February before the planning committee in Hartford.

“It’s a good thing they submitted testimony,” Zalaski said. “The town is in full throttle.”

Howard Schlesinger, a partner with Meridian, also testified in February. He said the legislation will allow the creation for a special tax district that will issue bond without any cost to Southington. He said the bonds will pay for extensive environmental cleanup, as well as infrastructure and pollution control improvements.

“Our development plan is to transform this blighted property into a new, vibrant community,” Schlesinger told the committee. He said the success of the project will show that the public and private sector can work together to benefit a community.

Perillo said the Meridian project may be built in phases, rather than all at once.

“(Schlesinger) will be proactive to the times,” he said. “He’ll develop the structures to be more (in line) with the market’s demands.”

The project calls for 22,500 square feet of retail space and more than 200 residential units in three buildings. The development could be built with retail first, Perillo said, and just one set of condos rather than all three at once.

Board of Finance member Kevin R. Beaudoin said approval of the bill would be a win for Southington.

“That land is just going to sit there for years” without Meridian’s involvement, he said. “I give the developer credit. He could have packed his bags,” Beaudoin said.

“I think it’s representative of the quality and strength of the developer,” Perillo said.

If the bill is approved, it would take effect on July 1, according to the wording of the legislation.

Meridian Memos:

"Repositioning the United States"
June 2009
by Michael G. Clark, Principal

From the time we sent An Awakening out in January until now, the government has taken unprecedented steps toward the goal of stabilizing the U.S. economy.

This herculean effort/spending binge has been met with an overall increase in confidence by the marketplace that can mainly be attributed to the diminished fear of the Great Depression 2.0.

However, America’s rebound in confidence and the rise of the stock market should not be a bellwether of an imminent return to economic sanctity.

Talks of “green shoots” have dominated the press, but let us not confuse a lack of bad news with growth, or an increase in confidence with progress.


To Read More, Click Here


"An Awakening"
8 January 2009
by Michael G. Clark, Principal

The decline of Rome was the natural and inevitable effect of immoderate greatness. Prosperity ripened the principle of decay; the causes of destruction multiplied with the extent of conquest.
- Edward Gibbon, The Decline and Fall of the Roman Empire.

One of Meridian Development Partners’ New Year’s resolutions is to provide regular commentary on many of the changes that will reshape economic behavior and define opportunities and risks over the coming years.

This particular piece is intended to provide a broad-based reflection on 2008, as well as set the stage for future focused commentaries on specific initiatives and their implications for real estate investing.

Our goal is to generate an ongoing dialogue and debate with our colleagues and partners. 

Through this we hope that our knowledge will be expanded and that we will all come out a little bit smarter for it.


To Read More, Click Here