Town Faces Tough Decisions in Proposed Eno Farms Sale

Simsbury town officials are facing a new challenge in finding a resolution to the Eno Farms ground lease situation as the end of a 15-year tax credit for the affordable housing complex approaches.

During a special workshop held by the Eno Farms subcommittee, which was charged with determining the next steps for the town's affordable housing complex, town officials announced that a potential buyer for the buildings on the town-owned property has been identified. The new development adds further complications to a situation that has left the town and residents of the development at a crossroads.

CHFA Small Properties, the current owner of the buildings on a 140-acre property deeded to the town of Simsbury by Amos Eno in 1882, has been searching for a buyer for the 50-unit complex after the previous owner, Corporation for Independent Living, faced a foreclosure for non-payment in 2009.

In May, the town sought to amend the existing 99-year ground lease to include new requirements for a future owner that would improve accountability and reinforce the Eno deed. The deed, which lies at the core of the issues surrounding the property, gifted the land to the town “to be used for the occupation, maintenance, and support” of the town’s poor population, according to the deed on file in the Simsbury Land Records.

Residents of the development voted to reject the proposed amendments for varying reasons, but mostly because the amendments were brought forward in a unified document.

"That was really the sticking point, I think, that made it difficult for anyone to agree with any of the amendments since they were grouped together and there was no motion to separate," Eno Farms resident Melissa Torriero said.

Town attorney Robert DeCrescenzo previously explained that the town's objective in amending the ground lease was to incorporate additional protections for residents of the complex before a new buyer takes ownership of the property.

Officials announced Monday that CHFA Small Properties has requested the town consider assigning the ground lease to Avon resident Jonathan Rutenberg, the president of the family-owned real estate investment company Equity Management Corporation, for an undisclosed amount.

The town was given 25 days to consider the sale of the affordable housing complex, adding further complications to the matter.

For a new owner of the improvements on the Eno property to be subject to an amended ground lease, the changes would have to be approved by town meeting prior to the sale. According to town policy, the amendments can only be passed by action of a town meeting and by consent of the current lessee, a process that could take up to 60 days.

"Now, presumably, we will have to negotiate," DeCrescenzo said.

Approximately half of Monday's workshop, which lasted nearly three hours, was spent addressing residents' concerns about the town's handling of issues that plagued the Eno Farms development during its early years. Those issues included the attempt by CIL to establish a Common Interest Ownership for tenants, questionable financing, and payments to the tenants for "sweat equity" that was invested in the individual units.

In light of the requested consideration of assignment of the ground lease to a new buyer, the conversation was redirected.

"We're talking about things, at this point, that quite frankly weren't in the amendments," Selectman Sean Askham said. "These are issues that are beyond our control."

Askham requested participants in the workshop to further explain what they would like to see included in negotiations with Rutenberg should the town decide to move forward with a sale.

Resident Tom Palmateer told the subcommittee that he hoped for an arrangement that would allow tenants who entered Eno Farms as low-income earners to remain in their home if their income rose above the 80 percent threshold, even if it meant paying increased rent.

Others expressed concern over having to submit to the cumbersome process of revalidating their income on an annual basis.

Raffi Khan told the subcommittee he would like to see the town ultimately purchase the property and reestablish the cooperative structure that CIL initially sought to create.

Moving forward, Eno Farms subcommittee members Sean Askham and Lisa Heavner will take the recommendations proposed by the workshop participants into consideration when determining their approach of negotiating the sale of the housing development.

According to a letter from CHFA Assett Manager Maura Hayden-Walker, the town has 25 days to respond to the offer from Equity Management Corporation.

"We've got a lot of work to do still in terms of digesting everything and making sure we try do right by not only the town but everyone here," Askham said.

The next regularly scheduled board of selectmen meeting, when Askham expects the issue to be addressed, will be held on June 25.