Two schools closed in moves to consolidate the system in the 2000s have been sold to an Hoosier State developer. Mayor Nancy R. Rossi announced this week her team, headed by Planning and Development Commissioner Fred A. Messore, has negotiated the sale of the long-vacant Edgar C. Stiles and Clarence E. Thompson elementary schools to an Indiana real estate developer for $852,000.
The city recently issued a request for proposals for both properties, with Indianapolis-based KCG Development LLC submitting the highest offer with the best plan for the sites, Messore said.
“Our entire team is honored to have been chosen to collaborate with the city of West Haven on these important projects,” said Joel Silver, vice-president of KCG, a nationally respected developer that operates in 21 states and specializes in adaptive reuse projects. “We look forward to bringing new life to these schools and adjacent property by creating a vibrant mixed-income and mixed-use community.”
Messore said the Thompson building, 165 Richards St., would be a mixed-use approach that would include commercial and business incubator spaces and about 71 market-rate housing units.
The Stiles building, located at 575 Main St. in the Transit-Oriented Development District around the train station, would be composed of about 50 market-rate housing and studio units that would be marketed to millennials because of their proximity to the station and Interstate 95, Messore said.
Rossi said the former schools have been vacant for years with no real plans for development.
Stiles closed in 2004 and Thompson in 2010.
In 2016, former Mayor Ed O’Brien’s administration sold the Thompson building to the West Haven Housing Authority for $10, but the financing for senior housing fell through and the property reverted back to the city.
“These buildings have been vacant, quickly deteriorating and off the tax rolls,” Rossi said. “This agreement would generate needed tax revenue and would be promoted to commuting millennials and others because of their location with easy access to public transportation and I-95. Neither one of these properties includes any tax abatements, which will make them fully taxable on day one.”
The mayor added, “I will be submitting a package and all the details to the City Council shortly, so they can set up a public hearing and vote on the proposal.”
According to city officials, the estimated value of the renovated Stiles building will be about $13 million, with an assessment for taxation of about $9.1 million that will generate an estimated $330,000 in annual tax revenue for West Haven. The renovated Thompson building will be valued around $10 million, with an assessment of $7 million that will produce about $254,000 in annual tax revenue for the city.
“The one-time influx of cash from the sales will further improve the city’s fiscal health, but beyond the short term, these properties will generate about $584,000 in tax revenue a year,” Rossi said. “With this transaction, we will be growing our grand list, relieving the burden of ownership on the city’s taxpayers, and anticipating the improvements that come with restoration and modernization.”
The mayor continued: “The developer has agreed to retain some of the historic features of both buildings, as they have been part of the character of those neighborhoods for a long time. We are looking forward to working with KCG Development and welcome them to West Haven.”