Submitted by Dan Quigley
The Town of Greenwich is exploring ways to fully renovate and reimagine the Havemeyer Building located at 290 Greenwich Avenue in the downtown Greenwich Historic District. There is now a compelling proposal on the table that addresses these issues through private funding, removing the burden of another costly project from taxpayers.
The Havemeyer Building was constructed in 1890 with funds provided by Henry Havemeyer to serve as a school for Greenwich. For the last approximately 75 years, the Board of Education has used portions of the building as the location for the vast majority of the Board’s administration and staff. Over the last several years, due to the building’s age and the attendant increase in ongoing maintenance costs, there have been repeated discussions about either renovating the building at considerable cost to the Town or relocating the BOE staff to another more suitable central location. Given that the BOE only occupies a portion of the building, these discussions also focused on potential new uses for a renovated Havemeyer building.
In the 2017 Greenwich Public Schools Facilities Master Plan, which was requested by the BET, the Havemeyer renovation costs were listed at $26 million. This amount is no longer viable as construction costs have risen sharply in the interim. For example, the costs being incurred for replacing Central Middle School have increased well beyond what was projected in 2017. As a result, those involved in capital planning for the Town estimate that a Havemeyer renovation would cost at least $50 to $60 million dollars if work could be started now. With the inevitable delays associated with an initiative of this nature, it is safe to assume renovation costs will be significantly higher.
It is worth examining how we arrived where we are today. Initially, the First Selectman appointed a Havemeyer Advisory Committee (HAC) which focused on the current status of the building, its history, legal standing and the prior efforts to repurpose it. The HAC’s findings led them to conclude that the Town should issue a Request for Proposal (RFP). Subsequently, the First Selectman formed an RFP Committee who’s task was to solicit proposals that would address the dual needs of possibly relocating the BOE and renovating the Havemeyer Building for other potential uses.
The RFP Comittee is comprised of a bipartisan group of current and former members of the BET and BOE, as well as local citizens with experience in commercial real estate projects of this size. This group ultimately issued an RFP carefully designed to elicit proposals for the renovation and use of the Havemeyer Building. The Committee received six responses, and after much deliberation they unanimously voted to recommend a proposal that would renovate and convert the building to a hotel and event space and also build a new building on adjacent land for the BOE staff.
In my experience, recent Town RFP responses have left something to be desired, however in this case, the benefits of the endorsed proposal are surprisingly persuasive. The BOE will be able to occupy a new modern office building at last. The Town gets a completely renovated Havemeyer building, saving millions of dollars in costs; new uses for a repurposed Havemeyer building that will add significantly to the attractiveness of the historic district; additional parking being proposed and a facility that will generate millions of dollars in new tax revenue and lease payments for the Town. It is important to note that the Town has never received any tax revenue for the Havemeyer property because it was always occupied by a Town entity. It is estimated that it will generate $650,000 dollars annually, with the expectation that this number will rise in conjunction with the Mill Rate over time.
As compelling as this proposal is, the Havemeyer RFP Committee’s first presentation attracted more naysayers than supporters. There were complaints about the lack of process for selecting an approach and use for the building before forming a committee and issuing an RFP. The Committee’s RFP provided guidance as to the various Town needs that should be addressed in the proposals. If the RFP had been too specific and/or limiting in its scope, it’s likely that there would have been few or no responses. It is important to understand that the appointment of the Committee and its subsequent RFP issuance is just the very beginning of the process to attract potential proposals that may or may not be acceptable to the Town.
As the chair of the RFP Committee said at the public meeting, “We are just crossing the starting line not the finish line.” There will be other forthcoming presentations to the public, P&Z, the RTM and the BET before any final decisions are approved. The “Process” is just beginning, so I encourage everyone to participate and be patient as it plays out.
Another concern raised by those attending the first presentation was giving up ownership of the building by signing a 99-year ground lease agreement. To be clear, the Town would retain ownership of the Havemeyer Building, and at the end of the lease, would have the option of assuming control of the building again. Ground leases of 50-99 years are very common in commercial real estate. In fact, in 1967 Lowell Weicker, as First Selectman, signed a 99-year ground lease with the Ashforth Company that allowed them to develop the large office buildings known as Greenwich Plaza on the south side of the railroad tracks. Under the terms of the ground lease, Ashforth made annual lease payments to the Town that increased periodically, and they paid annual property taxes that increased with the mill rate and grand list changes. The lease terms provided that, in 2066, the Town can either renew the lease or assume ownership of the portion of the buildings situated on Town property. The proposal supported by the Committee suggests an upfront fee of $10.5 million for the ground lease. The terms and conditions of the lease will need to be negotiated, and the Committee will retain counsel with ground lease experience to help determine the real value of the Havemeyer property and guide it in the negotitations.
Over the last several years, there has been much debate over the capital needs for our schools. Central Middle School is currently under construction, there are ongoing renovations at Julian Curtiss and Old Greenwich School, and planned renovations for Riverside, North Street and Parkway Schools. Recently it was discovered that Greenwich High School also needs a new swimming pool which is estimated to cost at least $30 million dollars. Finally, at some point, the Town will need to spend something in excess of $40 million to rebuild the Dorothy Hamill Rink somewhere in Town. A Rink Task Force has been assembled and is working hard toward an appropriate solution. These looming capital projects strongly suggest that not having to spend in excess of $50-$60million dollars renovating the Havemeyer Building will go a long way toward helping with these expected and necessary capital needs that the Town will confront over the next few years.
The Havemeyer proposal is a nonpartisan initiative and should not become partisan. Irrespective of which party the First Selectman belongs to, or who controls the BET or BOE, there needs to be a resolution to the Havemeyer issue that has been lingering for far too long. The current proposal represents the start of a process that could ultimately result in what I believe will be significant economic and developmental benefits for the Town. You don’t need to be a Republican or a Democrat to see those benefits. I encourage everyone to fully inform themselves with the current proposal, ask questions and participate in the process. If we let this opportunity slip through our fingers due to apathy or partisan politics, it will be a mistake that Greenwich could regret for a long time.
Dan Quigley
RTM Land Use Committee Chair
(The opinions in this piece are my own and are not intended to represent those of the Land Use Committee or its members)