Option to Lease 35 Leroy Gets RTM Committee Riled

Can the Representative Town Meeting Rules Committee sue the town? No. But at Monday night’s meeting, they considered it. When the Option to Lease Agreement for 35 Leroy Avenue was brought to the table for discussion, the language of the option came under scrutiny, and a politically charged discussion ensued.

In April of this year, the Board of Selectmen and the Town Counsel drafted an Option to Lease 35 Leroy Avenue to a prospective developer, Mutual Housing Association (MHA). That draft was presented to the RTM on April 27, and over four months later, it’s causing a stir.

The final draft of the Option to Lease, which was approved by the Board of Selectmen on August 3, is a roughly two-year agreement that will allow MHA to approve land use and secure financing for the proposed project; both are necessary steps in the future drafting of a ground lease. The option does not constitute or necessitate a sale or lease in the future, and the town may render the option null and void at any point prior to expiration.

But while the Board of Selectmen has approved the option, some members of the RTM are less approving of their action. In a Sept. 8 letter to the editor, RTM member Ted Hawkins expressed concern over the potential 200-year lease term. Hawkins then asked RTM Rules Committee Chair and Moderator Karen Armour to put discussion of the option on Monday night’s agenda.

“The RTM feels like they have been disdained in this process,” said Armour. “And while I don’t sense a groundswell of ‘no affordable housing at the library,’ in the larger community, I don’t think you can ever over-communicate. I want to let people talk.”

And so began Monday evening’s two-hour discussion over the option, which the majority of the board admitted they had not read. The document was only made available within 30 minutes of the meeting, said Armour; and for that, RTM Rules committee member and RTC member Flora Smith pointed fingers at First Selectwoman Evonne Klein for not participating “in the spirit” of town government. Klein later informed members that the draft had been readily available since its approval in early August.

Subsequent discussion revolved around RTM Rules Committee Member and Republican Town Committee (RTC) Chairman Harry Artinian’s suggestion that the committee hire a lawyer to take a close look at the terms and potential consequences of the option, which was drawn up by Darien’s own town counsel. Artinian said that the option to lease puts the town at great financial risk, as the developer could potentially hold the town liable if the proposed affordable housing plan is not approved.

Committee member Jack Davis said there was no such risk, as the contingency clause states: “If any contingencies are not satisfied prior to the expiration of this Option, then this Option shall be null and void and of no further force or effect as of the date of such denial.”  

But committee member Robert Young was not so confident.

“That’s not realistic,” he said “No developer is going to just walk away from the project. He’ll want to recover his losses.”

John Price, also of the committee, pointed out that hiring a lawyer for an indeterminate period of time could cost the town upwards of $200,000. Davis said he was not comfortable spending that much money just to get a lawyer’s perspective, during a time of economic uncertainty.

“It’s also disrespectful of Town Counsel,” said Armour.

Price questioned whether there was any benefit to the process at all.

“If we do get an opinion, it will cost taxpayers quite a lot. Then what do we do with it?” said Price.

Smith asked if the RTM could sue the Town. Half the committee chuckled and looked askance to the audience.

“I’ve had a number of lawyers look at this, who say that it’s well worth our time to have someone else take a look at the language,” said Artinian, who would not cite his lawyers. “If we don’t, we’ll have indicated by acquiescing that we’re okay with the lease.”

Selectman David Bayne who was sitting in the audience said, “It’s not a lease; it’s an option.”

“These people are nuts,” said Selectwoman Linda Santarella.

Armour called on First Selectwoman Klein who was sitting in the audience. Klein briefed the board—much to Smith’s disapproval—on the history of the option, and reminded the committee “for the record” that this document is an “option to lease” and not a “lease” as it had been referenced throughout the discussion.

“Are you questioning the action of the Board of Selectmen or Town Counsel?” asked Klein, before returning to her seat. Her question was not answered.

As the meeting hit the two-hour mark, Armour moved to vote on Artinian’s independent counsel proposal, which would then be brought to the RTM meeting on Sept. 28 for the full RTM’s opinion. Only two members voted in favor: Artinian and Eugene Coyle, both members of the RTC.

All members of the Board of Selectmen left shortly thereafter. Later in the meeting, when it came time to set the agenda for the RTM’s meeting on Sept. 28, the committee decided to present an “informational update,” on the option and what was discussed at Monday’s meeting. Armour will lead that presentation, along with lawyer and RTM Town Government Structure and Administration Committee member Samuel Schoonmaker, who was sitting in the audience at Monday’s meeting.

Regardless of that outcome, the option to lease agreement for the property at 35 Leroy Avenue has been approved, and the Board of Selectmen and MHA will move forward, said Armour.

“It’s academic. This is when we get to the mental telepathy part of it, and it’s fair to say that some people are politically motivated to talk,” said Armour. “For my money, I think we’re spinning our wheels.”

An “Informational Update” on the Option to Lease Agreement will take place during the next regular RTM meeting, Sept. 28, 8 p.m. at Town Hall.