Panel OKs Tabor Settlement

Diana Stricker Photo

Board of Finance

The Branford Board of Finance voted unanimously Monday night to increase funds for a bond authorization to help finance a proposed $3.48 million settlement in the Tabor land case.

About $2.25 million plus of the settlement would go for expenses already incurred. In the end, the cost to taxpayers to make the case go away is an additional $935,000. 

The settlement, if approved by the Board of Selectmen and the Representative Town Meeting, would stop the case from going to the U.S. Supreme Court and would finally end years of litigation.

These things are bittersweet,” said First Selectman Anthony Unk” DaRos after the meeting. This is a step in getting it over and moving on.”

Republican Third Selectman John Opie told the Eagle after the meeting that he agreed with the BOF’s decision. It’s good to get it over,” Opie said. Given the risk factor, it’s the right thing to do.”

The finance board’s decision came after it met in executive session with the town’s top officials, its attorney and finance director. Opie was asked to join them. The vote was 5 – 0. One board member, Charles Shelton, Jr. was out-of-town. 

Click here to read a letter by the finance board concerning the vote.

Since Opie, the honorary leader of the Republican Party, supports the settlement, he is indicating he will vote in favor of it at the Board of Selectmen (BOS) at its Oct. 6 meeting. The question is what the Representative Town Meeting (RTM) will do. It is scheduled to meet Oct. 13 — two days before the deadline for settlement approvals.

Behind the scenes, the town’s top officials and its lawyers have been discussing a possible settlement for weeks.

The Tabor eminent domain case began in 2003 when DaRos, along with the town’s Board of Finance, BOS and RTM, agreed to seize by eminent domain the 77-acre property known as Tabor. The town said the land’s location adjacent to the contaminated town dump was potentially harmful. New England Estates (NEE), the prospective developer, wanted to build hundred of condos on the site but had no approvals to do so. It sued the town, won a $12.4 million jury verdict in lower court, then saw that settlement overturned by the Connecticut Supreme Court last February. NNE then appealed that decision to the U.S. Supreme Court.

Director of Finance James Finch, who was instrumental in raising the settlement issue, spoke about the financial impact before the vote was taken Monday night. He said it is unlikely that the U.S. Supreme Court will take the case. But if it does, the odds of the case being overturned are increased. He said a settlement will cost taxpayers an additional $935,000, compared to other scenarios. The doomsday scenario,” as he put it, would occur if the Connecticut Supreme Court’s decision were overturned. That scenario would cost the town $19.8 million. 

We have to put our stewardship hat on and defend the town against the worst case scenario,” Finch said.

He said that given all the risk factors, the wisest decision is to offer the settlement.

You will know you put this to bed and you immunized the town against future risk,” Finch told the Board of Finance.

Diana Stricker Photo

Jim Finch

He said the decision is not made lightly. It’s not something we’re going to be doing cartwheels in the halls about,” Finch said. It’s a bitter pill to swallow, but in the end it’s going to cure us.” 

Town Counsel William H. Clendenen Jr. also addressed the board and gave background information about the case. He said that throughout the lengthy legal process he was buoyed by the unified support of the Board of Selectmen, the Board of Finance and the Representative Town Meeting.”

He said that everyone breathed a big sigh of relief” when the Connecticut Supreme Court overturned the jury verdict of $12.4 million. We were sitting pretty strong at that point.” He said things changed when New England Estates decided to take the case to the U.S. Supreme Court. NEE’s late decision came when the U.S. Supreme Court ruled for the state in a Florida Beach taking case in June. It was then that NEE’s attorneys saw a way in. 

Clendenen said he opened a dialogue” with Steven Humphrey, who represents Thomas Santa Barbara, Jr. and Frank Perrotti Jr., the owners of the Tabor land. The two men were once the managers of the adjacent town dump. Humphrey is a partner at Robinson & Cole.

Humphrey and I both agreed that [going to the Supreme Court] wasn’t in anyone’s best interest.” He said Humphrey then spoke with attorneys at Shipman & Goodwin, the law firm for New England Estates.

We reached a tentative settlement,” Clendenen said. We negotiated a deadline of Oct. 15 to get all the approvals.” If that doesn’t happen, Clendenen said, We all turn the clock back on and spend hundreds of thousands of dollars.”

Clendenen also spoke about the need to move ahead with what he called recovery efforts.” He was referring to the town’s lawsuits against the Marcus Law Firm and the town’s insurers. 

As much as I would like to argue the case before the Supreme Court, my ego and needs are unimportant,” Clendenen said. What’s important are the needs of the citizens of this town.”

The motion that was approved last night would increase the Tabor appropriation and bond authorization from $10.9 million to a total of $13.8 million.

After the meeting Finch told reporters that the entire check of $ 3.48 million will be delivered to Robinson & Cole. Finch said he did not know how it will be divided after that. 

Although members of the Board of Finance did not state their opinions during the meeting, they are sending a letter to the RTM outlining their rationale. While we remain committed to presenting our arguments at the United States Supreme Court, we have a shared responsibility along with the RTM to be good financial stewards,” they wrote.

The letter then listed six issues that the board considered, most of which were discussed by Finch and Clendenen. The letter concludes: We feel that the settlement represents the best option for the Town of Branford by indemnifying the risk of future damages and preserving the financial capacity to proceed with desired and needed capital improvements. We therefore strongly encourage the RTM to approve this appropriation and bond authorization.”

The issue is expected to be discussed at an upcoming special meeting of the RTM’s Ways and Means Committee.

Diana Stricker Photo

Lorraine Young

Prior to the discussion about Tabor, the Board of Finance thanked Lorraine Young, who is retiring from the board after more than 18 years service.

We’ve all enjoyed her wisdom, her wit and her advice,” said Joseph Mooney, who chairs the board. She was given a round of applause.

Marcia Chambers contributed reporting to this article.

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