As published in the Record Journal on Monday February 18, 2013
By Andrew Ragali
Record-Journal staff
aragali@record-journal.com
(203) 317-2224
Twitter:@AndyRagz
WALLINGFORD - Joe Gouveia, a local winery owner who planned to purchase the former American Legion building on South Main Street, said Friday that he has rescinded his offer, leaving the controversial building in the ownership of the town and without any potential buyers.
After Gouveia received approval from the Planning and Zoning Commission in January to turn the building into two apartments, it seemed the town was only a stone’s throw away from its objective of selling the property. But after the Town Council failed to reach an agreement last week on how to address the building’s sewer issues, Gouveia decided, “It’s time to call it quits.”
On Friday, Gouveia said he told his attorney, Jerry Farrell Jr., to send a letter to inform the town “that we are no longer interested in the building.”
The town purchased the building in 1994 for $190,000 with the intent of razing it and using the property for Town Hall expansion or additional parking. But after years of litigation, a New Haven Superior Court judge ruled in February 2011 that the building, which is listed on the National Register of Historic Places, could not be demolished.
After the court ruling, the town decided to put the building up for sale. Several interested parties were turned down because their plans were not in line with town objectives. After the building was put back out to bid last fall, Gouveia submitted the only offer, for $75,000. After working with the town on several occasions, Gouveia settled on turning the building into two apartments.
The only obstacle blocking the sale was a sewer problem discovered earlier this winter. An investigation by the Water and Sewer Division determined that the sewer line hooking the South Main Street building up to a main on Center Street was broken. Vincent Mascia, a senior engineer with the town, said the break in the line appears to have occurred near a handicapped ramp that protrudes from the building at 33-35 S. Main St., a property owned by the First Congregational Church. The Town Council looked to address the sewer issue during its meeting last Wednesday.
After a lengthy discussion, Councilor Jason Zandri proposed a motion to make the town 50 percent financially responsible, up to $20,000, for a new sewer line from the building, through the Parade Ground, connecting to the main on South Main Street. The motion failed on a 4-4 tie vote.
After the meeting, Gouveia said he had already invested about $13,000 into purchasing the building and was frustrated a deal could not be finalized Wednesday night. Running the new sewer line could cost from $27,000 to well over $30,000, according to rough estimates obtained by Gouveia. Several councilors asked Gouveia if he could wait for a solid estimate before they took any action, but Gouveia felt that would take weeks to months and that costs would keep piling up.
Gouveia hinted at backing out of the deal after the meeting, but made his intent clear on Friday.
“Sometimes the best deals are the ones you don’t make,” he said, adding that he doesn’t want to blame anyone for the failed purchase.
Councilor Nick Economopoulos voluntarily took partial blame for the inaction during Wednesday’s meeting. Economopoulos did not support Zandri, a fellow Democrat on the council, in his motion. Republicans Rosemary Rascati, Robert Parisi and Vincent Cervoni also didn’t support the motion.
“I feel terrible,” Economopoulos said. “I stuck to a principle and I didn’t support my fellow councilman.”
The councilor said he didn’t support the motion because he felt further investigation into who was responsible for the sheared sewer line should be done. He felt whoever was found responsible should have to pay for a new sewer line.
Ron Graziani, a trustee of First Congregational Church, said the handicapped ramp was built in 1999, that “all work was done with permits” and that there was no record of any sewer line in the area. Graziani said the church would accept no liability for the sewer line. If the town did decide the church was liable, legal action would be taken by the church, Graziani said.
“I really blew this one,” Economopoulos said, adding that the only option now is to fix up the building and put it back up for sale.
Councilor John LeTourneau, a Republican, called the failed purchase “a very sad thing for Wallingford.”
“Unfortunately, there were councilors up there that didn’t understand what was being proposed, and that really is a shame,” he said.
LeTourneau said he’s frustrated because he put time and effort into getting the building sold, and to see the sale fall apart because of a “lack of understanding on a motion” is upsetting.
“I’m just on a tirade with this,” he continued. “They just don’t get it,” LeTourneau said of the councilors who rejected the motion on Wednesday. “We strive for mediocrity.”
During the meeting, Parisi said he was against Zandri’s motion because he wanted a more solid estimate on a new sewer line first. Rascati agreed with Parisi.
Cervoni was of the same opinion, and wished Gouveia had attended Wednesday’s meeting with more information. During the meeting, he said he wasn’t against reducing the price of the building, but didn’t want to go overboard. On Friday, he said “I take no pleasure in Mr. Gouveia’s decision.”
The property is now unmarketable, Cervoni said, and he thinks the town should consider going back to court to get the injunction blocking the building’s destruction lifted.
Zandri said Friday it was no surprise Gouveia said he was not pursuing the building anymore after what happened at the council meeting.
“I think it’s unfortunate some of the discussion surrounded ‘a more solid price,’ ” he said, explaining that his motion would only make the town liable up to $20,000 at most, and if the project cost less than $40,000, the town would be even less financially liable.
With his suggested deal, Zandri said, “at the very worst, the town would have received $55,000 for the building.”
“Now we’re going to get zero,” he said.
As for what’s next, Zandri said the building will deteriorate to the point it falls down because he can’t see anyone else being interested in purchasing it. He took a similar stance to Cervoni, suggesting the town look into reversing the court injunction.
While Councilor John Sullivan, a Democrat, voted for Zandri’s motion, he too was surprised Gouveia didn’t come in with a solid estimate.
“I think it would have helped,” he said.
Sullivan said he believes putting the building back up for sale is the only option, but that he’s “sorry to see (Gouveia) go” because “I think he had good intentions.”
Tom Laffin, a Republican councilor, said he thinks Gouveia’s backing out is the “endgame for the building.”
He doesn’t think putting the building back up for sale will work, but sees no other option.
“I’m tired of hearing about the building,” Laffin said, adding that before the injunction he would have preferred to knock it down. “I’m not emotionally attached to the building like some are.”
On Friday, Mayor William W. Dickinson Jr. said the future of the building is in the Town Council’s hands.
“I think the council will have to determine where they want to head next,” he said.
LeTourneau said that no matter what happens next, the town loses. He said it will take $90,000 to knock the building down, and if it’s kept, “then we must put taxpayers’ dollars into the house.”
“Who won?” he asked. “Nobody won.”
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