Yankee Pedlar Enters Receivership

The City of Torrington and the long-established Torrington Development Corporation, created to help implement downtown revitalization efforts, has become the second entity in the state to be awarded receivership under Public Act 19-92.

Under the act, a “receiver” is a person or entity that is given specific authority by a Connecticut Superior Court to correct conditions contributing to blight and deterioration. It is not ownership, but full property management authority overseen by the court. To be awarded receivership, at least 3 of 8 criteria outlined in the statute must be supported by compelling evidence. Appointment of a receiver does not terminate the owner’s debt, or environmental obligations related to the property.

Receivership also allows for funds used to stabilize and improve the building to be recovered through liens attached to the deed. Everything a receiver does must be reported to the court. Only 120 days are given for a receiver to develop a plan of action and submit it to the court for approval.

Since filing the petition for receivership over 3 years ago, the City was required to appear in court several times, persistently making its case that as building conditions continue to deteriorate, successful reuse is jeopardized which would have significant negative impact on the economic vitality of downtown. The prolonged court case was punctuated by multiple extensions granted to the owner to demonstrate reasonable progress in addressing building conditions, secure funding for the development, and disclose their intent for the building.

All of this came to an end on July 23rd when the owner failed to provide the court required evidence of financing, after being granted extensions to do so.

“It has taken three long years for this decision, and we are more than ready,” Mayor Elinor Carbone declared. “When fully functioning, this building provided jobs, accommodations for tourists and supported the hospitality needs of the local manufacturing businesses. The building is not only on the National Register of Historic Places and occupies a prominent location downtown, but it also carries significance to several generations as a hotel and restaurant and host to business, social and political events. We need this property to be back into use.”

Prior to bringing this action to court, Mayor Carbone, as a member of the Torrington Development Corporation, asked its board to consider taking on responsibility of receivership. The Corporation welcomed the challenge as it had been seeking a more active role in downtown revitalization.

While the proceedings dragged on, the TDC launched into a strategic and organizational overhaul. Greg Perosino, President of the TDC, is confident that progress will be made. “We must quickly assess the condition of the building and carry out measures to stabilize the structure. Then, we can begin examining options for future development.” Those options, he explained, must be sustainable, while noting that this is the first receivership in the state so there are no examples to follow. He also noted that during this time, a soon-to-be launched website will keep Torrington citizens informed.

Valarie Ferro – Good Earth Advisors, Consultant to the TDC