New London – A committee of the City Council on Monday recommended dropping one of the five proposals for redevelopment of the Lighthouse Inn, a plan for the complete demolition of the site that some councilors had called unpalatable.

The proposal submitted by Timothy A. Londregan, a partner in Londregan Commercial Real Estate Group, to demolish the historic former inn also runs counter to the recommendations of the city’s Office of Development and Planning.

Londregan had offered $250,000 for the property and proposed demolition of all of the buildings and the construction of an events facility with a year-round food and beverage facility and guest room facility for wedding receptions and special events. He also wanted tax abatements for 20 years.

Economic Development Coordinator Ned Hammond had recommended whittling the proposals to four during an update for the council’s Economic Development Committee, which met prior to Monday's City Council meeting.

“Since demolition of the mansion is a key element of Mr. Londregan’s proposal, we don’t feel that at this time we should pursue further investigation of Mr. Londregan’s proposal, unless directed otherwise,” he said.

Hammond and the Office of Development and Planning continue to work to gather information on the proposals with an eye toward proof of financial backing and development experience.

Of the remaining four proposals, two call for restoring and operating the inn while the other two propose to renovate it but concentrate on residential uses for the property with a mix of high-end apartments or townhouse-style units.

The proposed purchase prices ranged from $1 to $350,000 with investments ranging from $3 million to $10 million, some with tax abatement requests.

In an email to Hammond dated Monday afternoon, however, Grand Slam Holdings LLC upped its purchase price from $100,000 to $400,000. Partners in the proposal, Norman Nadeau and Anthony Morascini, had offered a 6-year, $6 million plan to restore all of the buildings and operate it as a traditional inn and resort. They propose extensive use of green technology.

Over the past week, Hammond said, they also modified their proposal to ask for a one-year tax deferment instead of a tax exemption.

The only other developer to propose reopening the inn, Certified Public Accountant Roger Bennett of Bloomfield, cried foul upon hearing about the revision. He said the bid increase by Grand Slam Holdings was “not the most forthright” move since developers had already “showed their hands.”

Bennett has proposed a $3 million project to include renovation of the mansion and a total rebuild of the carriage house, a spa and possibly a pool, deck and gardens to create a wedding venue. He has offered $350,000 for the property.

“We were the appropriate high bidder,” Bennett said.

In a follow-up call for requests for prior work experience, Hammond said Bennett noted 20 years as a tax planner and business consultant with affiliation with real estate developers, restaurateurs and property managers. He also has affiliation with Mario LaGuardia, a principal at MLG Architects with a list of projects that includes the first phase of Mohegan Sun, the Groton Marriott and renovations projects at Renaissance Providence Hotel and the Hotel Syracuse in New York.

One consultant listed with Bennett’s team is John Voloshin, a developer with previous land development proposals in Montville and New London who was sentenced in 2012 to 33 months in prison for defrauding individuals and lenders of more than $1.5 million through multiple fraud schemes, according to the U.S. Attorney’s Office. Following his release from prison he was ordered to serve additional prison time in 2014 for misleading his probation officers by concocting an elaborate scheme in order to travel to London.

His actual involvement in Bennett’s proposal was not immediately clear.

The request for proposals states that “a developer, development partner or team member may be disqualified by the City if the entity or person has been convicted of a crime chargeable as a felony within the past five years…”

Grand Slam Holdings partner Anthony Morascini has past criminal convictions that include felony narcotics convictions that led to time in to prison. Those convictions, however, date back to 2003 and 2006.

In a previous interview, Nadeau had said Morascini was “a mature man now,” and it was Morascini’s brother, David, who would run the tavern at the inn.

Hammond said all interested parties were notified that past financial dealings, criminal convictions and failed projects were likely to become public as the City Council weighed the reputations of developers and looked to name a preferred developer.

In his update Monday, Hammond also included a letter from an attorney from Guthrie Beach Inc. stating they were not a consultant or partner with Grand Slam Holdings, which was indicated in their proposal. The inn traditionally had the use of a nearby beach but has since lost those privileges.

In addition to the proposals to reopen the inn, two have proposed a more residential use, including Michael Dattilo, principal at Water’s Edge Resort and Spa in Westbrook, and Industrial Renaissance principal Eric Hamburg.

Dattilo offered the lowest purchase price at $1, with plans to renovate the mansion and demolish the so-called carriage house and beauty salon to make way for up to 30 townhouse-style units “similar to Victorian row houses.” Dattilo has said he has liquid financial capital to undertake the project without outside financing and could begin immediately. Hammond said Monday that Dattilo's financial resources appear to be substantial enough to build and complete the project though he did not elaborate.

Hamburg offered $165,000 for the property and plans to invest a total of between $7 million and $10 million on the project with plans for renovation of the mansion into 20 or more luxury apartments with no inn services and 25 to 50 high end apartments or condominiums in a cluster.

The city wants the 4.2-acre property at 48 Guthrie Place back on the tax rolls. It was acquired by the city in a tax foreclosure auction in 2013 and has been deteriorating ever since. There are three buildings on the property and main building is referred to as the mansion and had 27 guest rooms, a restaurant, a lounge and meetings rooms.

Monday was the first opportunity for the public to give their opinions on the proposals. Some attributed sparse attendance at Monday’s meeting to the fact that the notice of the meeting did not appear on the city’s website.

The Economic Development Committee plans to invite developers for presentations at a meeting tentatively scheduled for Sept. 28. The council is expected to vote on dropping Londregan's proposal at a Sept. 8 meeting.

While the sentimental favorites may be the ideas to reopen the inn, Hammond said, many hotel, inn and banquet facility owners who had walked through the property discounted its reuse because of the huge cost for renovations coupled with the concerns of running an inn.

Hammond said it will be an ongoing process for the city to not only determine which use is most appropriate but also which developer has the financial backing and experience to actually accomplish what they have proposed.

“It goes to the fact the building is old. It’s very inefficient and has been unoccupied for going on seven years now and taking a beating. It will take a lot of money to rehabilitate the building just to open the doors,” Hammond said.

He said while the greatest profit to operators may come from the inn’s use of a special events facility, the greatest tax revenue for the city is likely to come from a mixture of residential use.

The Office of Development and Planning estimates that restoration and operation of the inn would produce $161,763 in annual tax revenues for the city versus an estimated $151,834 if the inn were converted into apartments and additional apartments built on site. Restoration of the inn and combining it with townhouse-style condominium units on the property would produce the highest revenue at an estimated $246,249 a year.

“One of the more important factors in my mind is their financial resources to do the project and their experience in doing similar projects,” Hammond said. “In my judgment, experience plays a huge role.”

g.smith@theday.com

Twitter: @SmittyDay