Politics & Government

South Windsor Council Approves Resolution Concerning Sale of Hi-G Building

Closing between developer and owner is scheduled for May 24.

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Ted Glanzer, Patch StaffVerified Patch Staff Badge

South Windsor Town Council on Monday took another step toward getting the infamous Hi-G building back on the tax rolls by approving a resolution enabling the Town Manager to help facilitate a sale from the current owner to a developer.

Town Attorney Kari Olson said that a deal between the agency that owns the rights to the 4-acre parcel - 85 Nutmeg Road LLC - and developer Dr. Constantinos Constantinou was set to close on May 24.

For the deal to move forward, the town identified four areas of concern related to the purchase and sale document to their respective attorneys.

Those areas include:

  1. That the two lots that currently make up the property be merged and that such action be noted on any deed.
  2. The town is not willing to provide for any further tax abatements once the sale takes place.
  3. The town understands that the value of the property, to date, is around $420,000.
  4. The town must receive a general release from any previous agreement with 85 Nutmeg Road LLC principal Jan Exman in respect to a former contract.
One of the major sticking points on Monday was that Exman wanted a release from the Town, which councilors struck from the language of the resolution that was unanimously approved.

Because of the history of the property, councilors were wary of giving up any legal rights associated with a release with regard to Exman.

The Council also agreed to amend the resolution so that the closing must take place by June 15, or the resolution is nullified.

The Council’s trepidation is based on the Hi-G building’s history, which has been fraught with promises unfulfilled.

After more than 20 years of laying dormant, action to eventually develop the site where a former military defense contractor once operated occurred on Feb. 27, when an entity called 85 Nutmeg Road LLC recorded a committee deed with the town stating that it acquired the property from Hi-G Company through a foreclosure proceeding for $700,000. The alleged transaction is dated Nov. 12, 2010. Exman is listed as the principal of 85 Nutmeg Road LLC, according to the Secretary of the State’s office.

Councilors were hopeful, but wary of any deal that moves forward.

Councilor Ed Havens summed up the attitude of his fellow councilors.

“This is better than nothing,” Havens said.

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