From the New London Day my question is this, was Eminent Domain worth it?


'New London - Citing“turmoil” in the national lending market, New London Development Corp. President Michael Joplin said he has“grave doubts” that the Corcoran Jennison company will meet a crucial May 29 deadline to secure financing for its long-delayed Fort Trumbull housing development.

”It's almost impossible, so we have to start dealing with reality,” said Joplin, who broached the“most difficult topic” at Tuesday night's annual meeting of NLDC's full membership in the Crocker House Ballroom.

If Corcoran Jennison doesn't meet the deadline, the Boston-based developer would violate a December extension document in which it agreed to secure a loan and enter a construction contract for an $18.7 million, 80-unit development of rental apartments and townhouses.

The project, whose uncertain groundbreaking could now be delayed months if not years, would represent the first new, ground-up construction since eminent domain cleared portions of the peninsula for redevelopment.

Joplin's announcement of yet another blown deadline by Corcoran Jennison could renew calls for the NLDC to sever ties with the company, which is currently redeveloping the former Naval Undersea Warfare Center into an office complex - an $18 million project unaffected by the delay of the housing proposal.

Joplin said the NLDC“is very close” to parting with the company on the roughly 3-acre housing project. In fact, by failing to secure the financing alone, the developer forfeits its right to develop the parcel, and Joplin didn't rule out letting the development agreement simply expire next month.

”The question is on the table,” said Joplin, who, at the time of the December extension agreement, told The Day:“It is time for them to perform. At the end of six months, there is no tomorrow.”

But Joplin said his overriding goal is to see housing come to the peninsula in 18 months - a task that, in the current economy, no other developer would be willing to take on, he said.

”If you simply dispose of Corcoran Jennison out of frustration or the history, you could really be shooting yourself in the foot,” Joplin said.

Despite the history of delays, Joplin said he believes Corcoran Jennison remains truly interested in building the rental housing.“That's why she's here,” Joplin said of Corcoran Jennison President Marty Jones.“Otherwise, she would have stayed in Boston and gone to dinner.”

Jones told the NLDC members,“We're not ready to fold our tent and cut our losses and walk away.”

Between the office complex and preconstruction work on the housing project, the company has roughly $5 million of its own money invested in Fort Trumbull, according to Joplin and Jones.

”We have been in New London for close to eight years now,” Jones said in an interview after the meeting.“Our intention here was always in a comprehensive development,” not only a commercial building, she said.

”We are not walking away,” Jones said.“We want to complete all parts of the deal.”

But barring a sudden economic upswing, any deal on the housing project will rely on what both Joplin and Jones referred to as“creative” options - possibly government-backed loans - to close the widening“financing gap.”

Based on a recent assessment, Joplin said the company is looking to receive a $11.5 million loan and is willing to put up as much as 20 percent of the $18.7 million project cost, or nearly $4 million. Those sources combined leave a roughly $3 million to $3.5 million gap.

”We are trying to fill that gap through creative thinking and creative financing. I'm not sure that we'll succeed. I'm just putting it out there,” Joplin said to NLDC members.

He said securing the additional money will be a“tremendous task” that will take months of application paperwork for lenders and any state programs that could help close the gap.

When asked if the company would be willing to boost its share above 20 percent, Jones said,“We have to negotiate what make sense for everybody.” She said the project's financing will have to incorporate“other sources that are not on the table right now.”

Jones said she understand that“people are very frustrated that it's taken a long time to get something done. I hope that New London is willing to continue to work with us to make the deal work.”

New London Mayor Kevin Cavanagh said he was assured by his conversation with Jones Tuesday night that Corcoran Jennison wants to bring the housing to Fort Trumbull.

When asked if it may be time for the city to part with the company, Cavanagh said:“I'm sort of like, 'Take it one step at a time.' The onus is on Corcoran Jennison to come up with a solution - no doubt about it.”