South Windsor Mayor: Measurable Progress in CT Studios Project

The Connecticut Studios project - which has been in the works for nearly five years and has come under fire for a number of different reasons - appears to have cleared a major hurdle by having $14 million in executed commitment letters from First Niagra Bank, according to a town official.

Mayor Tom Delnicki said in a telephone interview Sunday that he saw the letters late last week and that they are available for Town Councilors to review in Town Manager Matthew Galligan’s office.

“I have seen these documents with my own eyes,” Delnicki said.

It’s a major step forward for the project, which has had its share of controversy, setbacks and delays, something that was not lost on Delnicki.

“It is great to see that this benchmark has been met and the project is coming together with measurable progress,” Delnicki said.

With that said, Delnicki added that a lot of work still needed to be done.
Indeed, the Town Council recently gave the developers an extension to April 25 to pull building permits on the proposed $55 million project.

The waning support for the project - which at one point inspired so much hope several years ago - was evident in the council’s split 6-3 vote.

The extension of time approved by the council Monday night was the third given to Connecticut Studios developers since October. The developers initially had three years (since October 2009) to start construction on the project as part of a deal that saw the town convey to Connecticut Studios 20 acres of land for $1.

Without the extensions, the land could revert back to the town.

In a possible effort to satisfy the reverter clause, Connecticut Studios began construction on a 600-square-foot security building in October 2012, though only a foundation was laid and no apparent efforts have been made to continue work on the shack.

The latest development concerning obtaining financing for the project was welcomed with open arms by Delnicki.

"Needless to say, we have more work to do, but the project is moving in the right direction," Delnicki said.

Connecticut Studios economic consultant Craig Stevenson said in a telephone interview that the developer is thrilled to have a respected financial institution like First Niagra on board.

The next step is to get the necessary approvals from the state concerning the project’s fuel cell component. The plan is to have the fuel cell generate electricity back to a distribution company, with the proceeds going to pay for the project’s public infrastructure.

Stevenson said that the distribution company wanted to see the project’s financial stack in place, as well as support from the state, before making any firm commitments.

The next phase, according to Stevenson, is to submit a power-purchase agreement to the public regulatory authority.

“Clearly this demonstrates that this was not just a vision in somebody’s head, but is a well-funded endeavor that has a firm place in reality,” Stevenson.