The South
Windsor Movie Complex Debacle
By Susan Kniep– December 9,
2014
You may not hear – quiet on the set – let’s make a movie –
being yelled by directors and producers in South Windsor. But there could be Oscar buzz for the drama
which has been playing out over the past several years in the making of –
Connecticut
Studios: To Be or Not to Be?
The title wave of missteps in the debacle involving an
initially proposed $100 million movie studio complex for South
Windsor appears to have taken down more people than the number of
buildings which have yet to be developed.
An August 24, 2014 article captioned Trooper Log: A Fraudulent $200K Loan, Fugitive Wanted in ...
Warwick, EG by warwickpost.com was followed by
a news publication on Oct 18, 2014 by independentri.com captioned Developer says fraud charge will be dropped.
The developer referenced is Anthony DelVicario. DelVicario’s name first surfaced in
Connecticut as the principal of Halden Acquisition Group of Providence, Rhode Island. Initially, Halden partnered with California-based
Pacifica Ventures LLC to develop the South
Windsor project referred to as Connecticut
Studios, LLC.
Some allege that LLCs are used to conceal investors. Information stemming from the arrest of
DelVicario could lend some credibility to that assertion.
In a headlined article in October, 2009, captioned Studio A Potential Economic Catalyst - Hartford Courant, Dale Shannon, senior economist at Connecticut Economic
Resource Center (CERC) provided an analysis of the movie studio project
estimating that “ongoing economic activity of the proposed studio and related
businesses will create 4,590 jobs, lead to $786 million in sales, $623 million
of that from film production alone. “It is also expected to add $275 million to
personal incomes annually, Shannon said”. “The
developer's plan calls for developing an area of 750,000 square feet, roughly
17.2 acres, at a cost of $276 million.”
In June, 2011, the headlines read Connecticut Studios Developers Take $1.5M Mortgage On ...
Formerly Town-Owned Property noting South Windsor “Town officials are
concerned about a $1.5 million mortgage that has been placed on property the
town gave to Connecticut Studios, LLC, in 2009 but would take back if the
company's proposed movie studio doesn't materialize. “Connecticut Studios mortgaged the 20.7 acres
where the studio would be built to dck North America, LLC, to secure a $1.5
million loan.. “The developer had hired
dck North America, a construction company based in Pittsburgh, Pa.,
to handle the studio project.”
In Sept, 2013, emphasis was placed on Phase 1 of the project
which included the installation of a 5-megawatt fuel cell
power station, four sound stages in two buildings, renovation of an existing
building, and a 120-room hotel.
But soon the town would learn that a bankruptcy was on the
horizon. A January, 2014 Journal
Inquirer headline Studio owner files for bankruptcy, still gets extension ...
notes that “Despite the “involuntary bankruptcy
petition” filed by Connecticut Studios’ parent company, the Town Council voted
unanimously Monday night to extend — for the ninth time — the property’s
reverter deadline. “The $100 million
movie-making complex off John
Fitch Boulevard now has until March 6 to make good
on meeting financial and other obligations to the town, most importantly
closing on the $7 million bridge loan to get the project started. “The reverter clause was the town’s insurance
that the project would move forward because if the criteria were not met, the
23 acres given to Connecticut
Studios would revert back to town ownership. “But that insurance policy was
rendered moot last fall when a previous construction manager for Connecticut
Studios, dck North America, quietly executed a quit-claim deed taking ownership
of the land. Principals for both dck and Halden Acquisitions Group, the owner of
Connecticut
Studios, signed the deed.”
But March came and went with little activity.
The development consultant for Capital Studios is noted as Craig
Stevenson. According to his online bio
at About Us - Connected To Connecticut, LLC. Economic ...
Stevenson was “Chair East
Hartford Economic Development Commission”, had “Clerked General
Assembly’s Commerce Committee” and was “Formerly CERC’s Manager of Economic
Development”. Dale Shannon was
referenced as the senior economist at Connecticut Economic Resource Center
(CERC) who promoted the project as referenced within the 2009 article captioned
Studio A Potential Economic Catalyst - Hartford Courant.
Stevenson had previously also served as
campaign manager for former State Senator Gary LeBeau, who as the Chairman of
the State’s Commerce Committee, also promoted the South
Windsor project. LeBeau
“assured the council that the state considers itself a partner in the development.
"This is a tremendous project," LeBeau said.
Former Connecticut
House Speaker Thomas Ritter as the projects lobbyist was paid nearly $194,000
for his firm’s successful efforts according to the Hartford Courant.
It appears South
Windsor was not the first location considered by DelVicario, as we learn he was
involved in a failed movie studio development deal in Hopkinton,
Rhode Island before setting his sights on South Windsor.
But police reports note that DelVicario’s involvement with
the South Windsor project took on a more
sinister role.
Arrested by the Rhode
Island State Police Financial Crimes Unit in August,
2014, it was reported that he was charged with obtaining over $1,500 under
false pretenses.
According to the
news publication - independentri.com - police allege “DelVicario used his
interest in Connecticut
Studios LLC as collateral to secure a $200,000 personal loan. “ However, the
lender discovered that DelVicario had
already used his shares in Connecticut
Studios as collateral on a separate loan in June 2009.”
The following
excerpts from independentri.com provide further
insight into the Connecticut
Studios deal, which apparently also involved an unknown “inside partner”….
“I had a pending civil matter with the individual,”
DelVicario said, adding that unknown to him, the man filed a criminal charge
with state police. “DelVicario described him as an investor who was part of the
financing group for Connecticut Studios, the movie studio development deal in
South Windsor, Connecticut.
“That was an inside partner on the deal,” DelVicario said.
“He was supposed to wait until we closed the project, but he didn’t want to
wait. “He was paid four days after the state police charge was filed.”
The article is extensive in providing the history of
Connecticut Studios, LLC and refers to both Hartford Courant and Journal
Inquirer News Articles to include the following “According to The Journal
Inquirer, Halden Acquisitions filed for bankruptcy in March, and its 50 percent
interest was acquired by dck North America LLC of Delaware. “The newspaper
reported DelVicario’s company owed dck, the project’s former construction
management company, more than $2 million”.
Although we are just learning about the latest debacle
involving the South Windsor project, it appears South Windsor officials have
known of DelVicario’s arrest at least since October as independentri.com reports “In an interview
Tuesday, South Windsor Town Manager Matthew B. Galligan said he was aware of
DelVicario’s arrest, but said he and the Halden Acquisition Group ‘had been out
of [the development deal] for a while’……
“DelVicario said he is in negotiations to get back in on the project.”
Read the entire article by independentri.com at
http://www.independentri.com/independents/south_county/narragansett/article_9ef42db2-87ee-53c4-833e-0359297aebe3.html
Certainly, over many years it has been intriguing to watch
the movie complex saga unfold as it claims its victims, which more importantly
include the taxpayers of the State and the Town of South Windsor, whom it
appears could also lose some of their valuable real estate worth at least the
$1.5 million on which a mortgage was secured.
And what
about the money spent and/or pledged to the project? It has been reported that the developers
spent $5 million of their own money, received $14 million in film state tax
credits, a $14 million loan from First Niagara Bank, and a $5 million loan from
the State’s Department of Economic and Community Development.
Also, it was
reported that the $12 million in public infrastructure improvements by South Windsor is to be repaid by taxes generated from the
other project associated with the film studio’s development. A $30 million electric power generator.
Cts Energy, LLC in East Hartford, CT - Bizapedia Profile
provides insight into the principals involved with
CTs Energy LLC which includes both Stevenson and
DelVicario as noted within the following…..
Cts Energy, LLC is
a Connecticut
Domestic Limited-Liability Company filed on October 22, 2012. The company's
filing status is listed as Active and its File Number is 1086724. The Registered Agent on file for this
company is Craig R. Stevenson and is located at 52 Milwood Rd East Hartford,
CT 06118.
The company's principal address is 1300 Division Rd Ste 201 West Warwick, RI
02893 and its mailing address is C/O Ralph Palumbo Cpa 1300 Division Rd Ste 201
West Warwick, RI 02893. The company has
2 principals on record. The principals are Anthony Delvicario from Warwick RI and Ralph
Palumbo from W. Warwick RI.
In Jan 2014 the Journal Inquirer noted “The Connecticut
Studios-owned company created from the power station, CTS Energy LLC, will sell
power back to the Connecticut Light & Power Co. “Previous plans for a solar
power array were jettisoned in favor of the two fuel cells to maximize
renewable-energy tax credits. “The idea is that the plant would generate revenue
for the town no matter how busy Connecticut
Studios is.”
http://www.journalinquirer.com/page_one/studio-owner-files-for-bankruptcy-still-gets-extension/article_473d9020-883f-11e3-b7e6-0019bb2963f4.html
In January, 2014 the state announced that ClearEdge Power
was to receive a $1.4 million loan.
Also, in January, within an article captioned PureCell® fuel cell systems to provide clean and efficient
... energy solutions at the future Connecticut Studios project site
SOUTH WINDSOR, Conn/PRNewswire/ -- It is noted
that “ClearEdge Power, a manufacturer of scalable, distributed power systems,
today announced that CTS Energy, LLC, a wholly owned subsidiary of Connecticut
Studios, LLC, has agreed to acquire 12 PureCell® Model 400 fuel cell systems as
part of its full service, state-of-the-art motion picture and television studio
and production facility in the town of South Windsor, Conn. “As part of
the Connecticut
Studios project, CTS Energy is developing an electric generation facility using
the PureCell Model 400 fuel cells. The fuel cells will provide 4.98 MWs of
clean, efficient power to the local grid.”
On May 2, 2014 we learned that Fuel-Cell Producer ClearEdge Power Files for Bankruptcy ....
.
The State of Connecticut’s website, Concord, also lists
Craig Stevenson as affiliated with another company entitled SOUTH WINDSOR GENERATION, LLC .
According to bizapedia.com, South Windsor Generation, LLC in South Windsor, CT ...
South Windsor Generation, LLC is a Connecticut
Domestic Limited-Liability Company filed on July 30, 2013. The company's filing
status is listed as Active and its File Number is 1114111.
The Registered Agent on file for this company is Craig R. Stevenson and is
located at 52 Milwood Rd
East Hartford, CT
06118. The company's
principal address is 515 John Fitch Blvd South Windsor, CT 06074 and its
mailing address is C/O Craig Stevenson 52 Milwood Rd East Hartford, CT
06118.The company has 1 principal on record. The principal is Craig R.
Stevenson from East Hartford CT.
http://www.bizapedia.com/ct/SOUTH-WINDSOR-GENERATION-LLC.html
It is fair to also question if another victim is Craig
Stevenson, the “development consultant for Connecticut Studios”. His home at 52 Millwood Road in
East Hartford, where it appears he also has
his businesses, is referenced within HHD-CV-14-6053446-S
on the State’s judicial website.
What is to become of Connecticut
Studios is anyone’s guess although some might agree it is Time to abandon CT Studios project? | HartfordBusiness.com.
But, hopefully, not before state and local taxpayers are
made whole and the land is returned to its rightful owners – the taxpayers and
residents of South Windsor!
More can be learned at ….. http://www.independentri.com/independents/south_county/narragansett/article_9ef42db2-87ee-53c4-833e-0359297aebe3.html