JOINT APPENDIX Volume I, Pages 1 to 212
WESLEY W. HORTON
 Counsel for Respondents.
 
SCOTT G. BULLOCK
Counsel for Petitioners. 

 [*1]  RELEVANT DOCKET ENTRIES

Connecticut Supreme Court

CASE NUMBER SC 16742
Filing Date Docket Text
12/20/00 Complaint

2/16/01 Answer of Defendants City of New London

and New London Redevelopment Agency

2/16/01 Answer of New London Development

Corporation

2/21/01 Pretrial Stipulation

3/13/02 Memorandum of Decision

4/1/02 Plaintiffs' Appeal

4/9/02 Cross-Appeal of Defendant New London

Development Corporation

4/9/02 Cross-Appeal of Defendants City of New

London and New London Redevelopment

Agency

5/8/02 Transfer Letter

7/2/02 Brief of Plaintiffs

7/2/02 Statement of the Issues of Plaintiffs

8/1/02 Brief of City of New London

8/1/2 Statement of the Issues of City of New

London

8/1/02 Brief of New London Development Corporation

8/1/02 Statement of the Issues of New London

Development Corporation

9/3/02 Reply Brief of Plaintiffs

9/20/02 Reply Brief of New London Development

Corporation

9/23/02 Reply Brief of City of New London


* * *

3/11/04 Supreme Court Decision by the Court

3/11/04 Supreme Court Decision by the Court


* * *

3/29/04 Motion for Reconsideration

3/29/04 Motion for Stay of Execution Pending

Decision by United States Supreme Court

4/20/04 Order Denying Motion for Reconsideration

4/20/04 Order Granting Motion for Stay Pending

Decision by United States Supreme Court

 
 [*3]  Fort Trumbull MDP Area - New London, Connecticut

Figure 2

[SEE FIGURE 2 IN ORIGINAL]
 
 [*4]  PLAINTIFFS' EXHIBIT VV

[SEE Figure IN ORIGINAL]

 [*5]  Fort Trumbull Development Plan

[SEE Figure IN ORIGINAL]

 [*6]  PLAINTIFFS' EXHIBIT B
 
NO. RED CV 00-
 
CITY OF NEW LONDON
 
V.
 
ROSE CIAVAGLIA,
WILHEMINA J. DERY
aka WILHEMINA DERY
and CHARLES DERY

SUPERIOR COURT

JUDICIAL DISTRICT OF

NEW LONDON AT

NEW LONDON

NOVEMBER 6, 2000

STATEMENT OF COMPENSATION

The CITY OF NEW LONDON, acting by and through the NEW LONDON DEVELOPMENT CORPORATION, the Condemner, represents and states:

1. The Condemner is a municipal corporation located in the County of New London and State of Connecticut.

2. The Condemner is acting herein by the NEW LONDON DEVELOPMENT CORPORATION, its duly designated development agency exercising the powers set forth in Chapter 132 of the Connecticut General Statutes.

3. On October 16, 2000, the New London Development Corporation duly voted to acquire the hereinafter described property, and found that the convenience and necessity of the Condemner requires the same, for the purpose and effectuating the Condemner's development project plan.

4. The property to be taken pursuant to this Statement of Compensation is located in the City and County of New London and State of Connecticut, consists of four buildings or residences on one parcel of land known as 28 East Street, 79 Walbach Street, 81-83 Walbach Street and  [*7]  87 Walbach Street and is more particularly bounded and described in Schedule "A" attached hereto.

5. The names of all persons having a record interest in the property are
ROSE CIAVAGLIA, WILHELMINA J. DERY
aka WILHELMINA DERY and CHARLES DERY
87 Walbach Street
New London, Connecticut


6. The Condemner has determined that the amount of the compensation to be paid to the persons entitled thereto for such property is $ 506,000.00, and this sum is being deposited with the Clerk of the Superior Court for the Judicial District of New London at New London in accordance with the provisions of Section 8-130 of the Connecticut General Statutes.

CITY OF NEW LONDON, acting by the NEW LONDON DEVELOPMENT CORPORATION

By /s/ Edward B. O'Connell

Edward B. O'Connell, of

Waller, Smith & Palmer, P.C.

Its Attorneys

SCHEDULE A

A certain piece or parcel of land, with the buildings and improvements thereon, located in the City and County of New London and State of Connecticut, more particularly described as follows:
Beginning at the southwest corner of Walbach and East Streets and running thence southerly  [*8]  by and along the westerly side of East Street one hundred sixteen (116) feet, more or less, to land now or formerly of Louis Brabander; thence running westerly by said Brabander land one hundred four and two-tenths (104.2) feet to land now or formerly of Eugene Callaghan; thence northerly by and along said Callaghan land one hundred sixteen (116) feet, more or less, to the southerly side of Walbach Street; thence easterly by and along the southerly side of Walbach Street one hundred eight and twenty-five hundredths (108.25) feet to the point and place of beginning.


 [*9]  PLAINTIFFS' EXHIBIT I

NEW LONDON

DEVELOPMENT CORPORATION

RECORD OF VOTE
 
At its Board meeting on October 16, 2000, the NLDC passed the following resolutions, copies of which are attached:
Resolution 001016-1
Resolution 001016-2
Resolution 001016-3

 
The board voted in one new member, and will continue to vote on new members at upcoming meetings. The new member is Judge Antoinete Dupont.

Resolution 001016-1
 
WHEREAS, the New London City Council has designated the New London Development Corporation, a nonprofit development corporation, as its development agency pursuant to the Connecticut General Statutes, and
 
WHEREAS, the New London Development Corporation has prepared a project plan for The Fort Trumbull Municipal Development Plan Area pursuant to Section 8-189 of the Connecticut General Statutes, and
 
WHEREAS, the project plan for The Fort Trumbull Municipal Development Plan Area has been duly approved and adopted pursuant to Section 8-191 of the Connecticut General Statutes, and
 
 [*10]  WHEREAS, it is necessary to acquire certain properties located in the Fort Trumbull Municipal Development Plan Area of New London in order to carry out and administer said project plan, and
 
WHEREAS, pursuant to Section 8-193 of the Connecticut General Statutes the New London Development Corporation has the approval of the New London City Council to acquire by eminent domain properties within the Fort Trumbull Municipal Development Plan Area.
 
NOW, THEREFORE, IT IS RESOLVED that the New London Development Corporation, in the name of the City of New London, acquire certain properties located in the Fort Trumbull Municipal Development Plan Area of New London through the exercise of the power of eminent domain as granted to it under Chapter 132 of the Connecticut General Statutes. Said properties are more particularly described as follows:
ADDRESS Map Bock Lot Owner
78 Smith Street 21 106 1 Thelma Brelesky

72 Smith Street 21 106 2 Carolyn A. Luzi

41 Goshen Street 21 106 8 Pataya Const. Ltd




Partship

49 Goshen Street 21 106 9 Pataya Const. Ltd




Partship

54 Goshen Street 22 107 24 Albert P. Anton

42 Goshen Street 22 107 28 Isabelle M. Rogovin

36 Walbach St. 22 107 30 Isabelle M. Rogovin

82 Trumbull Street 21 105 13 Foss & Bourke, Inc

8 East Street 21 105 11 Suzette T. Kelo

19-23 Smith Street 21 105 17 James R. & Laura A.




Guretsky

27 Smith Street 21 105 18 William von Winkle,




Trustee

31 Smith Street 21 105 19 William von Winkle,




Trustee

33-35 Smith Street 21 105 20 William von Winkle,




Trustee

216 Howard Street 22 107 32 William von Winkle,




Trustee

189 Howard Street 22 101 20 Antoinette Farrell

195 Howard Street 22 101 21 Lillian M. Del-Grosso,




Trustee

53 Goshen Street 21 106 10 Pasquale & Margaerita




Cristofaro

79 Walbach Street, 21 105 3 Rose Ciavaglia &
81-83 Walbach St.,


Wilhemina &
87 Walbach Street


Charles Dery
& 28 East Street

11-13 Smith Street 21 105 14 Edward & Josephine




Johnson

 
 [*11]  IT IS FURTHER RESOLVED, that the New London Development Corporation take such steps as are necessary to effectuate such acquisition in the manner provided in Sections 8-128 through 8-133 of the Connecticut General Statutes.

CERTIFICATE
 
I, Garon Camassar, Secretary of the New London Development Corporation, do hereby certify the above resolution was adopted at a meeting of the Board of Directors of the  [*12]  New London Development Corporation held on October 16, 2000 and that the said resolution is contained in the minutes of said meeting on file in the New London Development Corporation office, 165 State Street, Suite 313, New London, Connecticut, and that it has not been modified nor rescinded whatsoever.
 
Attest:
 
/s/ Garon Camassar
Garon Camassar, Secretary
New London Development Corporation

10/16/00

Date

NEW LONDON

DEVELOPMENT CORPORATION

NLDC BOARD RESOLUTION 001016-2
 
Whereas, the Fort Trumbull Municipal Development Plan was approved on January 18, 2000 by the New London Development Corporation, and subsequently approved by the City Council and the Connecticut Department of Economic and Community Development, and
 
Whereas, the Corcoran Jennison Companies were selected to develop a proposal for Municipal Development Plan Parcels 1, 2, and 3 in accordance with the Municipal Development Plan proposed land uses, and present their proposed plans for the designated parcels, and
 
Whereas, a preliminary plan depicting the layout and uses of the site was presented by Corcoran Jennison Companies on October 10, 2000,
 
 [*13]  It is hereby resolved that the Board of Directors of the New London Development Corporation approves and concurs with the preliminary plan for the layout and uses of Parcels 1, 2, and 3 of the Fort Trumbull Municipal Development Plan as set forth in the Corcoran Jennison Plan dated October 10, 2000.

CERTIFICATE
 
I, Garon Camassar, Secretary of the New London Development Corporation, do hereby certify the above resolution was adopted at a meeting of the Board of Directors of the New London Development Corporation held on October 16, 2000 and that the said resolution is contained in the minutes of said meeting on file in the New London Development Corporation office, 165 State Street, Suite 313, New London, Connecticut, and that it has not been modified nor rescinded whatsoever.
 
Attest:
 
___
Garon Camassar, Secretary
New London Development Corporation

___

Date

NEW LONDON

DEVELOPMENT CORPORATION

NLDC BOARD RESOLUTION 001016-3
 
Whereas, the Fort Trumbull Municipal Development Plan Map 3.8 (Proposed Streets) details proposed streets in the Fort Trumbull Municipal Development Plan Area, and
 
 [*14]  Whereas, the Fort Trumbull Municipal Development Plan Map 5.1 (Proposed Land Uses) details the land uses proposed for the Fort Trumbull Municipal Development Plan area, including the land uses for Parcels 1, 2, and 3 in accordance with that plan, and
 
Whereas, a preliminary plan dated October 10, 2000 was presented by Corcoran Jennison that details land uses consistent with the Fort Trumbull Municipal Development Plan in terms of use, intensity, and location; such plan being received and approved by the Board of the New London Development Corporation on October 16, 2000, and
 
Whereas, the Fort Trumbull Municipal Development Plan states that "More specific traffic and street plans will be developed based upon . . . further refinement of development plans of the MDP area," and
 
Whereas, said refinements are consistent with and not substantial modifications of the Municipal Development Plan,
 
Now therefore, It is hereby resolved that the Board of Directors of the New London Development Corporation approve the attached Map 5.1A and 5.1B as supplemental documents to Map 5.1 and Map 3.8 which more particularly set forth descriptions of Parcels 1, 2, and 3 and proposed streets.
 
It is further resolved, that the following text changes be made to retain consistency with the plan as modified by the supplemental maps:
 
Page 5-1;
 
-- Proposed Land Uses for Parcel 1: add reference to "health club and fitness facility" to description of hotel/conference center complex.
 
 [*15]  Page 5-2;
 
-- Parcel 2; change parcel size to 6 acres. Add reference to "This parcel will also accommodate approximately 25 extended stay hotel units." Delete reference to Coast Guard Museum.
 
-- Parcel 3; change parcel size to 11 acres. Delete reference to health club complex.
 
Pages 5-24, 5-28, 5-29, 5-32, and 5-33;
 
-- Change references describing the principal pedestrian spine, Village Green access, and division between residential and office parcels from "Smith Street" to "East Street."

CERTIFICATE
 
I, Garon Camassar, Secretary of the New London Development Corporation, do hereby certify the above resolution was adopted at a meeting of the Board of Directors of the New London Development Corporation held on October 16, 2000 and that the said resolution is contained in the minutes of said meeting on file in the New London Development Corporation office, 165 State Street, Suite 313, New London, Connecticut, and that it has not been modified nor rescinded whatsoever.
 
Attest:
 
___
Garon Camassar, Secretary
New London Development Corporation

___

Date

 [*16]  FORT TRUMBULL MUNICIPAL DEVELOPMEN PLAN

MAP 5.1A

[SEE MAP 5.1A IN ORIGINAL]

 [*17]  MAP 5.1B

Fort Trumbull Development Plan

October 10, 2000

[SEE MAP 5.1B IN ORIGINAL]

 [*18]  PLAINTIFFS' EXHIBIT II

New London Development Corporation

181 Broad Street, New London, CT 06320

December 15, 1997
 
George M. Milne, Jr.
President
Pfizer Central Research
Groton, CT 06340
 
Dear George:

The directors of the New London Development Corporation are pleased to make the commitments outlined below to enable you to decide to construct a Pfizer Central Research facility in New London. This commitment is presented in conjunction with the State of Connecticut and the City of New London.

We have been working with the renowned firm of Wallace, Roberts and Todd to design a land plan to ensure that the new Pfizer facility will be the centerpiece of a concentrated reuse of the area surrounding the former New London Mills (see Appendix A). In addition to your facility the project includes the development of the state's fourth biotechnology incubator, the refurbishment of historic Fort Trumbull, the reuse of the vacant Naval Underwater Warfare Center and the development of mixed retail and residential space that will be fully integrated into the surrounding neighborhoods of the City of New London. In order to achieve these goals, it will be necessary to relocate the Calamari Bros. scrap dealer, upgrade utilities and infrastructure, and acquire a number of surrounding properties.

 [*19]  Based on the commitments from the state (see Appendix B) and city (see Appendix C), the New London Development Corporation will:
1. Calamari Bros. -- Acquire and perform environmental testing on this site which will serve as the entry way to the research facility. The status of negotiations are summarized in Appendix D. Environmental testing would be needed on the current site and would require funding. The cleanup costs of any contaminants found on the site prior to its transfer to Pfizer will be identified as part of the testing program and funds made available subsequent to the conclusion of testing.
 
2. Surrounding Properties -- Residential and commercial properties in the area including abandoned buildings and vacant lots will be acquired for integration into the overall design plan. Every effort will be made to ensure the highest and best use of all properties. Consideration will also be given to improvements to the approaches and access points to the site along Howard Street and other roads. Appendix E describes estimated costs and the manner in which options will be acquired and the purchases executed.
 
3. Fort Trumbull State Park -- Some of the sites mentioned in paragraph "2" above will be utilized in the development of Fort Trumbull State Park. Appendix F outlines the Connecticut Department of Environmental Protection's timetable and plan.
 
4. Utilities and Infrastructure Upgrades -- Utilities and infrastructure in the project area will require upgrades in order to guarantee utilities consistent with the requirements of the new facilities. See Appendix G.
 
 [*20]  5. Biotechnology Incubator -- The proximity to the Pfizer research facility creates a tremendous opportunity to create another asset -- a new biotechnology incubator facility. The mission of this organization will be to support the early phase development of biotechnology firms until they are successful enough to move to permanent locations elsewhere in Connecticut. The location in the project area will be a significant positive attribute in recruiting startup ventures to this facility. Site acquisition costs and methods are outlined with other properties in Appendix E. Additional funding will be needed for construction or renovation of buildings and relocation of current tenants.
 
6. Former Naval Underwater Warfare Center -- The portion of this site, excluding Fort Trumbull State Park and land occupied by the United States Coast Guard Station New London will be acquired from the Department of Defense as described in Appendix I.


Thank you very much for your consideration of this proposal. We will work with you to refine this proposal to meet Pfizer's requirements. We will also work closely with you at the appropriate time to plan an announcement that is befitting the magnitude of this project.

Cordially,

/s/ Claire L. Gaudiani

Dr. Claire L. Gaudiani

President
 
CLG:dcb
97-667-2

 [*21]  PLAINTIFFS' EXHIBIT PP1
 
Serbia, James
 
From: Serbia, James
Sent: Wednesday, October 21, 1998 1:42 PM
To: Milne, George M
Subject: Ft. Trumbull MDP
 
Importance: High
 
Dr Milne (Questions shown in red and CAPS)
 
I have left for you 3 drawings depicting some the latest concept plans that NLDC has put together. There seems to be some confusion regarding the expectation that Pfizer (you in particular) has regarding development of the peninsula (Something I know you have heard before -- bear with me). This confusion has caused some friction between NLDC and DECD/DEP.
 
NLDC indicates that an original conceptual plan put together by Wallace Roberts Todd (WRT) was used at two key meetings -- one involving you/state/city/NLDC and the other being the CMC meeting (IS THIS YOUR RECOLLECTION?). NLDC indicates that this plan represents "the commitment" to Pfizer. The State feels that "the commitment" is more along the lines of what is outlined in the letters from DECD to Pfizer.
 
I think what it boils down to is whether or not Pfizer is flexible regarding the development plans -- I believe the answer is yes per all of our previous discussions on this -- as long as some key components are included:
 
-- a residential component which would be attractive to professionals
 
-- a hotel/conference component
 
 [*22]  -- treatment plant upgrades/state park/etc and commercial or retail development to make the area an attractive place to visit/work.
 
DOES THIS SOUND ABOUT RIGHT?
 
The State, from a public policy perspective, has difficulty in supporting residential areas located in a floodplain, and in condemning/taking an existing residential area and replacing it with a more upscale residential district. They do indicate that they can accomodate an upscale residential component, but that they would have some difficulty if this portion of the development became substantial.
 
Can you clarify the following:
 
1. WOULD APPROXIMATELY 70-80 HIGH END RESIDENTIAL UNITS FIT WITH YOUR EXPECTATION?
 
2. THE LARGEST HOTEL AREA THAT IS CURRENTLY SHOWN ON ANY OF THE PLANS IS FOR 250 UNITS. THIS SEEMS LOW TO ME. HIGH, LOW, OR OK?
 
3. YOU MENTIONED THAT I SHOULD KEEP AN EYE OUT REGARDING PLANS FOR AN AMPHITHEATER. THE ORIGINAL WRT PLAN SHOWED ONE, BUT IT DOESN'T APPEAR THAT THIS IS STILL IN THE PLANS. IS IT SOMETHING YOU WOULD LIKE TO SEE OR IS IT SOMETHING WE WOULD PREFER NOT BE INCLUDED IN THE DEVELOPMENT?
 
Thanks for your help and patience.
 
Jim

 [*23]  PLAINTIFFS' EXHIBIT PP2
 
(LOGO)

Central Research Division

Pfizer Inc

Eastern Point Road

Groton, CT 06340

Tel 860 441 4844 Fax 860 441 6204

___

Central Research

George M. Milne, Jr., Ph.D.

President
 
March 8, 1999
 
Dr. Claire Gaudiani
President, New London Development Corporation
Connecticut College
270 Mohegan Avenue
New London, CT 06320
 
Dear Claire:
 
On behalf of Pfizer Inc., I am pleased to affirm my support of the New London Development Corporation's application for an Economic Development Conveyance for the Naval Undersea Warfare Center (NUWC) property.
 
Pfizer Inc is a research-based global health care company that discovers, develops, manufactures, and markets innovative medicines for both humans and animals. This will be the headquarters for Central Research, Pfizer's R&D Division, based in Southeastern, Connecticut. We are building a $ 270 million Global Development Facility (GDF) in New London to open by October 1, 2000. This facility will employ more than 2,000 Ph.D.s, M.D.s and other scientists, researchers, and clinical specialists. Our New London expansion requires the world class redevelopment planned for the adjacent 90 acres in the Fort  [*24]  Trumbull Municipal Development plan including the 16 acres of the NUWC property.
 
The Fort Trumbull area is integral to our corporate facility and to the plan for the revitalization of New London to a world class standard. The Amended Reuse Plan will provide a waterfront hotel with about 200 rooms, a conference center and physical fitness area, extended-stay residential units and 80 units of housing. We will use the proposed hotel and conference facility as an extension of our facility committing to 100 of those rooms on a daily basis for visiting international staff and other professionals. In addition we require conference space and are exploring a "virtual" Pfizer University to keep our researchers up to date on the most recent breakthroughs in biotechnology. The extended stay housing will provide for researchers who often stay for periods of up to 3-6 months. Year round quality housing is also crucial to recruiting top scientists. The waterfront residential neighborhood envisioned provides a one-of-a-kind housing option desired by many of our employees. As a result, the NUWC property is and has been key to our investment in the area.
 
We are prepared to enter into agreements with the NLDC and developers to build the type of facilities we require, but this is not just about Pfizer. The plan developed by the NLDC is intended to transform New London and is destined, we believe, to become a model for high impact, high value public/private partnerships. We have also requested the NLDC to expedite the development as quickly as possible to meet our schedule and the OpSail 2000 target for the unveiling of the new, New London. The transfer of NUWC and the completion of the developments proposed in the Amended Reuse Plan are fundamental to the  [*25]  success of these efforts and of our Global Development Facility in New London.
 
We greatly appreciate the assistance of the Department of the Navy in making the Fort Trumbull and NUWC redevelopment a national example of which we may all be proud.
 
Sincerely,
 
/s/ George M. Milne, Jr., Ph.D.
 
cc: Governor John G. Rowland, State of Connecticut Timothy West, Mayor City of New London

 [*26]  DEFENDANTS' EXHIBIT 12

MINUTES OF THE CITY COUNCIL OF NEW LONDON

1/18/00 -- 6
 
7.8 Fort Trumbull Municipal Development Plan

Upon motion of Councilor Burdick, seconded by Councilor Curtin, it was voted 6-1: To approve resolution number 011800-3 concerning the New London City Council approving the Fort Trumbull Municipal Development Plan and making certain findings. The Clerk reads the resolution by title only, all Councilors having copies, and the subject resolution is adopted by Roll Call Vote. Those voting in favor: Burdick, Pero, West, Curtin, Nossek, Hewett. Those voting against: Beachy.
 
RESOLUTION NUMBER 011800-3
 
Certified Resolution
 
By the NEW LONDON CITY COUNCIL approving the Fort Trumbull Municipal Development Plan and making certain findings.
 
WHEREAS, it is desirable and in the public interest that the New London Development Corporation prepare a Development Plan for a Municipal Development Project for purposes of contributing to the economic welfare of the municipality and the state pursuant to the provisions of Chapter 130, Chapter 132 and Chapter 588(1) of the Connecticut General Statutes as amended; and
 
WHEREAS, the New London Development Corporation prepared a Development plan for the project known  [*27]  as the Fort Trumbull Municipal Development Plan; and
 
WHEREAS, the Fort Trumbull Municipal Development plan was referred to the Planning and Zoning Commission of the City of New London and the regional planning agency known as the Southeastern Connecticut Council of Governments Regional Planning Commission; and
 
WHEREAS, thereafter the New London Redevelopment Agency held a public hearing on the Fort Trumbull Municipal Development Plan on January 13, 2000, pursuant to the provisions of local law, state statutes, Chapter 130 of the Connecticut General Statutes, as amended, and thereafter approved said Plan; and the New London Development Corporation held a public hearing on the Fort Trumbull Municipal Development Plan on January 13, 2000, pursuant to the provisions of local law, state statues, Chapter 132 and Chapter 588(1) of the Connecticut General Statutes, as amended, and thereafter, approved said plan;
 
NOW THEREFORE, the New London City Council hereby resolves:
 
(1) That the Fort Trumbull Municipal Development Plan is hereby approved;
 
(2) That the land and buildings within the Fort Trumbull Municipal Development Plan project area will be used principally for industrial, business, housing and recreational uses; that the land and buildings within the boundaries of the Project Area will be used primarily for economic base business purposes or business support services; and that the Plan is essential to the purpose of redevelopment of the area;
 
 [*28]  (3) That the Fort Trumbull Municipal Development Plan is in accordance with the City of New London Plan of Conservation and Development, and that it is in accordance with the Plan of Development for the Southeastern Connecticut Council of Governments Regional Planning Commission;
 
(4) That the Fort Trumbull Municipal Development Plan is not inimical to any statewide planning program objectives of the state or state agencies as coordinated by the Secretary of the Office of Policy and Management;
 
(5) That the Fort Trumbull Municipal Development Plan project will contribute to the economic welfare of the City of New London and the State of Connecticut; and
 
(6) That to carry out and administer the project, public action under Chapters 130, 132 and 588(1) of the Connecticut General Statutes as amended is required; and, for the purposes of carrying out this project, that the New London City Council approves and bestows upon the New London Development Corporation all rights and powers that are permitted to accrue to a development agency or implementing agency under Chapters 130, 132, and 588(1) of the Connecticut General Statutes as amended, including the power of eminent domain with the project area in the name of the City of New London per Chapter 130, Section 8-128, and Chapter 132, Section 8-193.
 
(7) That all properties in the Fort Trumbull Municipal Development Plan listed as "to be acquired" shall be acquired prior to December 31, 2002, unless this date is extended by the City Council.
 
(8) That the Chief Operating Officer of the New London Development Corporation is hereby authorized to submit the resolution of approval of the Fort Trumbull Municipal Development Plan as approved by the New London City Council to the Connecticut Department  [*29]  of Economic and Community Development for approval.

Upon motion of Councilor Pero, seconded by Councilor Curtin, it was unanimously voted: To recess the meeting at 12 midnight.

Attest: /s/ Michael J. Tranchida

Michael Tranchida, Assistant City Clerk
 
grm

 [*30]  PLAINTIFFS' EXHIBIT HHH
 
MEMO

CORCORAN JENNISON COMPANY, INC.
 
DATE: JANUARY 12, 2001
 
TO: JOSEPH E. CORCORAN

GARY JENNISON

SCOTT DUMONT

HARRY NASH

ELIZA EDELSBERG
 
FROM: MARTY JONES
 
RE: COMMERCIAL OFFICE STUDY ON NEW LONDON
 
Here is the commercial office study prepared by Jay Hooper on New London. We need a document for NLDC to show we are working on this. Please give me your comments. We plan to seek brokers in February to keep the community aware the deal is moving forward.
 
Harry is working on a detailed analysis of Building 2 systems which will be added to update the cost side of the proforma.

CORCORAN JENNISON COMPANIES, INC.

MARKETING PLAN FOR COMMERCIAL DEVELOPMENT SPACE

Fort Trumbull Development

New London, CT

Corcoran Jennison Companies, Inc.

150 Mount Vernon Street, Suite 500

Boston, MA 02125

 [*31]  Table of Contents
 
1. Project Description
 
2. Market Study Summary
 
3. Commercial Development Program
 
4. Financial Feasibility Study of Commercial Development
 
5. Conclusions of Financial and Market Study
 
6. Target Market for Commercial Space
 
7. Marketing Strategy
 
8. Marketing Execution Plan
 
9. Project and Marketing Schedule
 
10. Marketing Budget
 
11. Addenda
. Sample Draft of Broker Request for Proposals
 
. New London Office Absorption History (Miner & Silverstein Appraisal Company)
 
. Comparable Office Lease Data


Project Description
 
Background
 
The New London Development Corporation (NLDC), in association with the Connecticut Department of Economic and Community Development (DECD), has undertaken a municipal planning project targeting an area adjacent to the Thames River in New London, Connecticut. Known as the Fort Trumbull Municipal Development Plan (MDP), the MDP area encompasses approximately 90 acres immediately south of downtown New London and adjacent to historic Fort Trumbull, which has been developed into a  [*32]  state park. The principal catalyst for development in this area is the construction of Pfizer Inc.'s 790,000-square-foot Global Development Facility immediately south of the MDP area. This facility is the headquarters for Pfizer's worldwide research operations.
 
The NLDC selected Corcoran Jennison Companies as the developer of a 30-acre waterfront parcel adjacent to Fort Trumbull. The majority of the parcel consists of the U.S. Navy's closed Naval Undersea Warfare Center (NUWC). The balance is made up of an aging working class neighborhood and an Amtrak rail yard.
 
Project Description
 
Corcoran Jennison Companies has proposed a mixed-use development, to include a four-star hotel, housing, and commercial space, for the 30-acre parcel. The attached site plan, labeled the Fort Trumbull Development Plan, depicts the latest proposed development plan for the Fort Trumbull site. New public roadways and infrastructure will be built to support the development. Total development costs are projected to be approximately $ 100 million.
 
The hotel will be situated on the northernmost section of the site. The residential development will be located on the southeastern portion of the site, adjacent to the existing Coast Guard rescue station facility and north of Fort Trumbull. The commercial development will be located on the southwestern portion of the site; an existing Italian Dramatic Club located here will be kept and incorporated into the development plan. Plans also include the "River-walk" a waterfront park along the shoreline. It will connect to the Fort Trumbull State Park, and provide  [*33]  opportunities for the general public to walk, bike and picnic along the water.
 
Hotel/Conference Center
 
The proposed hotel development is a key component to the overall transformation of the Fort Trumbull area. An extension of Nameaug Street, to be built as a tree-lined boulevard, will be the gateway to the hotel, leading guests from Walbach Street to the hotel. The planned hotel will be built in two phases and will consist of 225 rooms, a 12,000 square foot of conference/meeting facility, and a restaurant when completed. Construction will commence on the first phase of 100 rooms as soon as possible, which is anticipated to be August 2001. The hotel will be designed with considerable green space around it, as well as lots of glass to take advantage of sweeping views of the Thames River, Long Island Sound, and downtown New London.
 
Residential
 
The proposed residential development consists of a three-story, 24-unit extended stay inn with furnished apartments; a six-story, 48-unit apartment building; and 40 two- and three-story townhouses arranged in three traditional urban clusters near the cove. The residential development will be used to focus activity toward the water. The Riverwalk, which will be a dedicated public pedestrian and bicycle path that runs along the water's edge and connects the Fort Trumbull development with Fort Trumbull State Park and the Pfizer development, will be a valuable amenity for the residential development.
 
 [*34]  Commercial
 
At present, approximately 300,000 square feet of commercial space is envisioned for the site. This will be comprised of an existing commercial building containing approximately 91,000 gross square feet, identified as Building 2 by the U.S. Navy, and two proposed buildings of 100,000 square feet each. The MDP called for the inclusion of office or bioscience-related commercial space. While the new buildings could be developed for either use depending upon market conditions, the existing Building 2 is best utilized for office use given its current construction. Building 2 is a four-story, steel frame, brick and glass structure completed in 1991 as sonar research and development space for the Navy. It is in reasonably good condition and can be easily renovated to Class A office space for the New London market. The new buildings will be sited between Building 2 and Walbach Street and will be developed as market conditions warrant.

 [*35]  [SEE FIGURE 1.1-2 IN ORIGINAL]

Figure 1.1-2

Project Location Map
 
Fort Trumbull MDP Area- New London, Connecticut
Draft Environmental Impact Evaluation - November 1998

 [*36]  [SEE FIGURE IN ORIGINAL]

 [*37]  [SEE FIGURE IN ORIGINAL]

Fort Trumbull Development Plan

October 10, 2000

 [*38]  Market Study Summary
 
OFFICE MARKET
 
The New London commercial real estate market is continuing its recovery from the last recession of the early 1990s. While rental rate and occupancy trends have been generally positive over the past few years, market values are still well below replacement cost and new construction is generally not feasible. As a result, little new construction has taken place over the last decade in the New London area. The following discussion provides a summary of the New London commercial/office market. The chart on the following page presents a snapshot of the New London office market as of October 2000.
 
Supply
 
New London contains approximately 815,000 square feet of Class A and B office space, with approximately 545,000 square feet considered Class A and approximately 270,000 considered Class B. Most of New London's Class A space was built in the 1980s. Roughly one-half of the Class A space is located in Shaw's Cove Business Park, which currently consists of six buildings containing approximately 275,000 square feet. Shaw's Cove is located between downtown New London and the Fort Trumbull development. The vast majority of the Class B space is located in downtown New London.
 
New construction activity in the market has been minimal and generally limited to end-user/owner-occupant facilities, such as the new space under construction for Pfizer. There are two proposed developments of Class A space that are commonly mentioned in the marketplace, one in  [*39]  New London and one in nearby Groton. These developments are as follows:
 
Shaw's Cove 7 & 8, New London
. Proposed 60,000 to 70,000 s/f in 2 buildings
. Developer -- Julian Enterprises
. No pre-leasing activity to date
. Asking $ 20.00 Gross
. Considering ground floor retail due to greater demand
. U.S. Properties, Inc. -- marketing/leasing agent

 
Mystic Executive Park, Groton
. Proposed 104,000 s/f
. 4 Stories (26,000 s/f floorplates)
. Located at Exit 88 off Rt. 95 adjacent to Marriott Hotel under construction
. Developer -- Wolman's/Waterford Hotel Group
. No pre-leasing activity to date
. Asking $ 23.00 Gross (includes basic tenant improvements)
. CB Richard Ellis -- marketing/leasing agent

 
 [*40]  NEW LONDON OFFICE MARKET SURVEY
October 2000
Source: U.S. Properties, Inc.




Available

Property Address Built Size (S/F)
Class A  1 Shaw's Cove One
1984 12,492

 1 Shaw's Cove Two
1986 31,228

 1 Shaw's Cove Three
1988 70,286

 1 Shaw's Cove Four
1988 32,731

 1 Shaw's Cove Five
1989 37,114

 1 Shaw's Cove Six
1990 89,000

 2 Columbus Corner 470 Bank Street 1989 21,632

 3 Mariner Square 125 Eugene O'Neill Dr. 1982 84,000

 4 Citizens Bank 63 Eugene O'Neill Dr.
37,414

 5 194 Howard Street
1984 47,000

 6 Union Plaza 1 & 2
1968 52,480

 7 400 Bayonet Street
1987 30,617


   Subtotal

545,994

Class B  8 A & T Technical 238-258 Bank Street
58,518

 9 Columbus Park Howard Street 1988 25,000

10 Harris Place 165 State Street 1885 66,354

   Manwaring Building 225 State Street
25,848

   Exchange Building 190 Governor Winthrop 1935 41,000

   Dewart Building State Street 1914 43,896

   19 Jay Street

9,300


   Subtotal

269,916

Class A & BTotals
815,910

* - Excludes sublease space



S/F Vacancy Rate Comments
Class A - 0.0%

790 2.5% $ 20.00 Gross

8,300 11.8% $ 20.00 Gross

- 0.0%
Medical Building

2,155 5.8% $ 20.00 Gross

2,841 3.2% $ 20.00 Gross

- 0.0%

1,000 * 1.2% $ 20.00 Gross 26,000 s/f for sublease

1,400 3.7% $ 14.00 NNN

- 0.0%

4,000 7.6%

4,800 15.7% $ 19.00 + Elec.


25,286 4.6%

Class B 21,000 35.9% $ 12.00 NNN

1,300 5.2% $ 13.50 Gross

13,985 21.1% $ 14.00 + Elec.

25,848 100.0% $ 14.00 + Elec.

26,950 65.7% $ 11.00 + Elec.

43,896 100.0% N/A Temporarily off market

9,300 100.0% $ 14.00 NNN


142,279 52.7%

Class A & BTotals 167,565 20.5%

* - Excludes sublease space

 
 [*41]  Another proposed development that could impact the New London market is the planned development of the former Norwich State Hospital, located north of New London in Norwich, CT. A master plan was recently unveiled for turning the 470-acre site into a 3 million square foot office park. No prospective tenants have been announced, although discussions reportedly have occurred in the past with Pfizer. Spaulding & Slye Colliers is marketing this site.
 
While New London has limited land available for new commercial construction, some additional parcels will be made available in the Fort Trumbull MDP area for development subsequent to the development of the Fort Trumbull site. Additionally, the surrounding region has abundant land available for commercial development should future market conditions warrant it.
 
Based on conversations with people connected with the proposed office developments, replacement cost for new office development is estimated to be between $ 120 and $ 150 per square foot, depending upon construction, type of parking, etc.
 
Demand
 
As can be seen in the preceding chart, although the overall market exhibits a 20.5% vacancy rate, the Class A market is quite healthy, with only 4.6% of the Class A space not leased. If the 26,000 square feet available for sublease in Mariner Square were included, then the Class A vacancy rate would rise to 9.4%, which is still not an unhealthy level for the market.
 
 [*42]  The Class B market, on the other hand, is clearly struggling with over half of the space presently unoccupied. Brokers, however, report that much of the Class B space is functionally obsolete and has inadequate and/or inaccessible parking, which exacerbates the vacancy level.
 
A report published by Miner & Silverstein Appraisal Company (see Addenda) indicates that there has been positive demand for Class A & B office space over the past four years. Between October 1996 and October 1999, approximately 185,000 square feet were absorbed in New London. As of November 1999, Miner & Silverstein had forecast additional absorption of approximately 25,000 square feet through mid-2000; based on market information provided by U.S. Properties, actual absorption through October 2000 appears to have exceeded this projection.
 
Brokers indicate that typical tenants in the market require between 3,000 and 7,500 square feet of space. While there are some requirements between 10,000 and 20,000 square feet, reportedly there are relatively few above 20,000 square feet. Given the relative size of the New London market, this would appear reasonable.
 
Typical office tenants in the New London market include the "Main Street" mix of lawyers, accountants, and medical practitioners, as well as other service-oriented companies, community organizations, and government agencies. Some of the larger users in New London are Pfizer, General Dynamics, CSC (Computer Science Corp.), and Ortronics. Ortronics, which reportedly recently tripled in size to 36,000 square feet, is in the telecommunications and structured cable industry.
 
 [*43]  It should be noted that over the past few years, Pfizer has represented one of the largest sources of demand in the southeastern Connecticut region, buying or leasing large blocks of space outside of its Groton campus and its New London campus that is under construction. Reportedly, Pfizer will remain in the vast majority of this space as it occupies its new Global Development Facility being built in New London.
 
According to local brokers and business people, New London has experienced limited organic growth, aside from Pfizer, in recent years. In addition, the region has experienced very limited growth as a result of companies relocating to the area to be proximate to Pfizer or other companies. Nonetheless, one source of future demand for commercial space may be the result of companies doing business with Pfizer that desire proximity to the new Global Development Facility. Brokers have noted a few inquiries from companies representative of Pfizer-related demand, but no significant demand has been evidenced over the past several years.
 
Rental Pricing
 
Recent leases for Class A office space in New London show rents ranging between $ 18.00 and $ 21.00 per square foot, on a gross basis with the tenant only paying for the additional cost of janitorial cleaning within the leased premises. A summary of comparable lease data over the past three years has been included in the Addenda for reference purposes. Lease terms are typically between 5 and 10 years, with smaller tenants sometimes wanting 1-to 3-year terms and larger tenants sometimes executing 15-year terms.
 
 [*44]  Tenant improvement allowances vary based on recent deals. With the market tightening, some deals have been done with no or minimal (painting and carpet cleaning) tenant improvements. On the other hand, some deals in Shaw's Cove Business Park have had tenant improvement allowances around $ 15.00 to $ 17.00 per square foot.
 
Operating Expenses
 
Brokers indicate that operating expenses, including real estate taxes and utilities, for office buildings in New London generally vary between $ 6.00 and $ 7.00 per square foot. Of this amount, real estate taxes generally range between $ 1.00 and $ 2.00 per square foot. Typical real estate taxes for buildings in Shaw's Cove are between $ 1.70 and $ 2.00 per square foot. Utilities usually comprise between $ 1.50 and $ 2.00 per square foot, with the balance reflecting common area and other operating expenses.
 
Sale Prices
 
Recent sales of office buildings in New London have ranged between roughly $ 40 and $ 70 per square foot. The two most recent sales of larger Class A buildings sold for prices ranging between approximately $ 57 and $ 67 per square foot. The only office buildings currently being marketed for sale are Class B properties with asking prices ranging between $ 26 and $ 63 per square foot.
 
BIOTECH/BIOSCIENCE MARKET
 
The biotech/bioscience market is in its infancy in Connecticut. Aside from Pfizer, a biotech/bioscience market does not really exist in the New London area. Connecticut  [*45]  is promoting a bioscience cluster concept, with New Haven, Hartford, and New London being the three locations targeted for developing the cluster concept. Although New Haven is making some progress in attracting bioscience companies, New London and Hartford have not had any meaningful success to date.
 
New Haven has two major developments either underway or proposed. One is Science Park, an 80-acre master planned site that will include renovation and new construction of office, laboratory, and research and development space. Lyme Properties has recently been selected to take over development of the project, which will be in excess of 1 million square feet. The other development is the Hamden Bioscience Campus, a proposed 1 million square foot park for biotech/bioscience companies.
 
The general impression in the market is that, at this time, it is difficult for New London to compete with New Haven for biotech/bioscience users. New London has a competitive disadvantage in that it lacks a major university that grants post-graduate degrees and a major research hospital, as well as significant venture capital money to support emerging companies. SECTER, a southeastern Connecticut business recruitment organization, indicates that they have been unable to generate any interest for bioscience in the New London area for the past few years.
 
With development costs for bioscience space generally in a broad range between $ 250 and $ 350 per square foot, depending on the tenant improvements required, it is not economically feasible to develop this space at this time without an end user in hand that will pay the rent necessary to support the cost. Ultimately, corporate or government sponsorship will be required to create a feasible  [*46]  environment for development of biotech/bioscience space in New London. Connecticut Innovations, a state-sponsored agency, has a $ 40 million Bioscience Facilities Fund to support development of biotech, wet laboratory space. To date, reportedly $ 20 million have been committed, almost entirely for companies in the New Haven area. Funds are mainly for tenant improvement loans and residual balance guarantees for lenders, and have yet to be used to fund speculative real estate development.

Commercial Development Program
 
The commercial development program for the Fort Trumbull development will consist of at least two phases, and possibly more depending upon the amount and type of demand that is generated for the 200,000 square feet of proposed commercial space. The first phase of commercial development will involve the renovation and redevelopment of the existing Navy Building 2 into a multi-tenant Class A office building for the New London market. Future phases will involve new construction of either Class A office space or biotech/bioscience space, as demand warrants. The present plan for the proposed commercial space includes the development of two 100,000 square foot buildings along Walbach Street, south of the existing Building 2.
 
Phase 1 -- Office
 
Building 2 was built in 1991 and consists of a four-story, steel-frame brick and glass office building containing 91,000 gross square feet. Preliminary analysis indicates an approximate net rentable area of 86,000 square feet. The building was constructed for single-tenant occupancy  [*47]  and will require renovation to accommodate multi-tenant occupancy as appropriate for the New London office market. A first-floor lobby will need to be added, as well as common area on each floor depending upon the space requirements of future tenants. Also, the entrance to the building is currently on the east side and most likely will need to be relocated to orient it to the street grid planned for the Fort Trumbull development. In designing the space for multi-tenant occupancy, it should be kept in mind that loss factors for common area, as generally accepted and paid for by tenants, typically do not exceed 15%.
 
Building systems will need to be evaluated to determine their appropriateness for reuse. It is known that a heating system will need to be added because Building 2 was previously heated by a system supporting several other Navy buildings. Also, analysis will need to be completed to determine whether the existing elevator and rest rooms are adequate for multi-tenant office use in the current market, or whether additions are required.
 
Parking will be provided around the building, with excess parking for the near future provided on the adjacent land that will support the future commercial development. It is anticipated that parking will be provided at market-oriented levels, approximately 3.5 spaces per 1,000 square feet of rentable area.
 
Future Phases -- Office and/or Bioscience
 
The program for the future phases is uncertain and will depend upon the type and quantity of demand that is generated through marketing efforts. It is currently envisioned that there will be two 100,000 square foot buildings, most probably multi-story buildings. Given the  [*48]  uncertainty regarding the demand/feasibility of biotech/bioscience space, as well as the fact that any additional office development, in all likelihood, will be subsequent to completion of Building 2, any design should be kept flexible to accommodate various types of demand.
 
If biotech/bioscience space is programmed, the typical product type involves single or multi-story space with floor heights between 18 and 20 feet, wet lab improvements (sinks, cabinets, and hoods), animal areas, filtration systems, a small amount of office area, high HVAC capacity, and heavy floor load capacity.
 
Consideration should be given to initially programming a good quality "flex"-type building that could be expanded in phases as demand warrants. This building would most likely be one story and would have the look and feel of an office building. However, it would have high floor heights (20 +/- feet) to accommodate a variety of uses, such as office, research and development, laboratory, and assembly. Depending upon the interest generated through broker marketing efforts, a small initial phase of 15,000 to 20,000 square feet could be built to test the market. This strategy would allow for less upfront investment than pure biotech/bioscience space, enhancing the potential feasibility, and would help compensate for the uncertain demand at this time.

 [*49]  [SEE FIGURE IN ORIGINAL]

Navy Bldg. 2.

 [*50]  Financial Feasibility Study Of Commercial Development
 
In analyzing the feasibility of the commercial development space at Fort Trumbull, we have focused on the renovation of Building 2. Considering market conditions, as well as anticipated development costs and net operating income levels, new construction of office and/or biotech/bioscience space is not feasible at this time.
 
On the following pages, three scenarios are presented for the renovation of Building 2. Each scenario involves a different level of cost for the rehabilitation. A summary of the major assumptions for each scenario is as follows:

Minor Moderate Major

Rehab Rehab Rehab
Total Development Cost $ 5,094,339 $ 6,737,530 $ 8,664,291
Per S/F $ 59.24 $ 78.34 $ 100.75

Hard Costs (Per S/F) $ 38.22 $ 51.95 $ 70.63
Soft Costs (Per S/F) $ 18.06 $ 22.48 $ 25.08

Construction Period 4 months 6 months 6 months
Lease-up Period 20 months 18 months 18 months

Market Rent $ 16.00 $ 20.00 $ 20.00

Equity Required $ 652,310 $ 105,581 $ 2,032,342

Unleveraged

Return on Development
Cost 13.9% 16.1% 12.0%
IRR (3-year Hold) 20.7% 30.3% 12.0%

Leveraged

Return on Equity 33.8% 318.7% 16.6%
IRR (3-year Hold) 46.1% 95.0% 10.2%

 
 [*51]  As illustrated, all three scenarios indicate the general economic feasibility of redeveloping Building 2 given current and anticipated future market conditions. This analysis presupposes that the remainder of the Fort Trumbull development proceeds as planned and that Building 2 is not an isolated development.

 [*52]  CORCORAN JENNISON COMPANIES

Confidential
 
FORT TRUMBALL
Building 2 Feasibility Analysis
Development Assumptions
MINOR REHAB
Gross Area 91,000 s/f Market Rent $ 16.00 Per s/f
Rentable Area 86,000 s/f Operating Expenses $ 7.25 Per s/f





(base year)



Capital Reserve $ 0.30 Per s/f
Initial Equity $ 500,000
Stabilized Vacancy 10.0%
Permanent Equity $ 652,310



Permanent Financing

Construction Period 4 Months Mortgage Interest 9.25%



Rate
Lease-up Period 20 Months LTV Ratio 70%



Amortization 25 Years
Valuation at Sale

Cap Rate -- 11.5%



Financing

Cap Rate 12.0%
Sale Costs 5.0%


Preliminary Development Cost Budget

Amount Per S/F % Comments
Hard Costs
  Building $ 1,820,000 $ 20.00
On Gross Area
  Site $ 450,000
  Tenant Improvements $ 860,000 $ 10.00
On Rentable Area
  Contingency $ 156,500
5.0%

  Subtotal $ 3,286,500 $ 38.22

Soft Costs
  Design/Engineering $ 180,000
  Permits/Insurance $ 49,298
1.5%
  Legal/Professional $ 75,000
  General, Admin. & Overhead $ 100,000
  Taxes/Fees $ 20,000
  Financing Costs $ 72,000
2.0% $ 3,600,000 Loan




Estimate for




Calculation
  Marketing/Leasing $ 430,000 $ 5.00
  Concessions/Free Rent $ -    
  Construction Interest $ 462,500

$ 2,500,000 Average




Balance for 24 Months
  Miscellaneous/Contingency $ 164,325
5.0%

  Subtotal $ 1,553,123 $ 18.06 47.3%
Development Fee $ 254,717
5.0%

Total Development Cost $ 5,094,339 $ 59.28
Development Period NOI $ 856,203

Net Development Cost $ 4,238,136 $ 49.28

Capital Sources

Permanent Financing $ 3,585,826
70.4%
Equity $ 652,310
12.8%
Development Period NOI $ 856,203
16.8%

Total Development Cost $ 5,094,339 $ 59.24 100.0%

 
 [*53]  FORT TRUMBULL
Building 2
Pro Forma -- Commercial Development Feasibility
MINOR REHAB


Year 0 Year 1 Year 2
Development Costs $ (254,717) $ (3,820,755) $ (1,018,868)

5% 75% 20%

Development Period NOI
$ 181,303  $ 674,900 

Net Development Cost $ (254,717) $ (3,639,451) $ (343,968)

Gross Potential Rent
Allowance for Vacancies
Effective Gross Rent

Operating Expenses
Capital Reserve
Net Operating Income

Return on Development Cost

Add Back Constr. Int. & Financing
$ 267,250  $ 267,250 
Net Sale Proceeds

Unleveraged Development Cash Flow $ (254,717) $ (3,372,201) $ (76,718)

Internal Rate of Return 20.7%

Leveraged Analysis


MINOR REHAB


Stabilization

Year 3 Comments
Development Costs

Development Period NOI

Net Development Cost $

Gross Potential Rent $ 1,376,000  Level Rent for First 5 Years


of Lease
Allowance for Vacancies $ (137,600)
Effective Gross Rent 1,238,400 

Operating Expenses $ (623,500) Pass Through Increases Over


Base Year
Capital Reserve $ (25,800)
Net Operating Income $ 589,100 

Return on Development Cost 13.9%

Add Back Constr. Int. & Financing
Net Sale Proceeds $ 4,868,478 

Unleveraged Development Cash Flow $ 5,455,578 

Internal Rate of Return

Leveraged Analysis






Stabilization

Year 0 Year 1 Year 2 Year 3
Initial Equity Investment $ (254,717) $ (245,283)
Cash Out (In) -- Perm.

$
Financing

(152,310)
Net Operating Income


$ 589,100 
Permanent Debt Service


$ (368,500)
Debt Coverage Ratio


1.60 

Cash Flow after Debt Service


$ 220,600 

Return on Equity


33.8%

Net Sale Proceeds after Debt


$ 1,319,065 

Net Equity Cash Flows $ (254,717) $ (245,283) $ $ 1,539,665 



(152,310)

Equity IRR 46.1%

 
 [*54]  FORT TRUMBULL
Building 2
Supporting Calculations
MINOR REHAB

Stabilized Value Estimate


Amount Per S/F
Stabilized NOI $ 589,100  $ 6.85
Cap Rate 11.5%

Value Estimate $ 5,122,609  $ 59.57

Permanent Financing

Estimated Value for Financing $ 5,122,609 
LTV Ratio 70%
Permanent Loan $ 3,585,826  $ 41.70
Interest Rate 9.25%
Amortization 25 
Annual Debt Service $ 368,500 
Debt Coverage Ratio 1.60 

Excess Cash Flow from Permanent Financing

Permanent Loan $ 3,585,826 
Net Development Costs $ 4,238,136 

Cash Flow from Financing $ (652,310)
Initial Equity $ 500,000 

Cash Out (In) from Financing $ (152,310)

 
 [*55]  FORT TRUMBALL
Building 2
Occupancy/Absorption Projections   MINOR REHAB







Building


Rentable

Year 1 - Opening





Month
Floor Tenant Square Lease


Feet Term
1 2 3 4 5 6
1 1 7,600 7

2 7,500 6

3 7,750 7
2 4 22,750 10
3 5 4,500 6

6 4,500 6

7 4,500 7

8 4,800 7




4,500

9 4,750 6
4 10 10,000 10

11 - 7

12 4,000 6

13 3,750 5




3,760

Totals $ 80,000

- - - - 8,260 -
Cumulative


- - - - 8,260 8,260
Occupancy


0.0% 0.0% 0.0% 0.0% 9.6% 9.0%
Rate
Average Occupancy Year 1 27.1% 8 Months
Average Occupancy Year 2 70.0% 12 Months
Average Occupancy During 87.0% 20 Months
Lease-Up



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