New London – With a final public hearing held Monday, the decision on whether to name a preferred developer for the former Lighthouse Inn appears to now rest in the hands of the City Council.

A dozen people spoke on Monday, mostly urging the City Council to choose a developer who would rehabilitate the historic but aging vacant inn and open it back up to the public. Others urged caution in accepting any intensification of the use.

Joe Caldrello summed it up by saying, “it’s got to be neighborhood and it also has to be tourist friendly.”

The council is considering proposals from four developers.

Michael Dattilo and Eric Hamburg have each pitched different plans to renovate the mansion and build high-end condominiums on the property. Roger Bennett and the team of Norman Nadeau and Anthony Morascini have offered to restore the inn and open it back up to the public and special events.

The city's office of Development and Planning is working to vet the developers and their financial resources.

Resident Tim Ryan said he was most concerned about long-term viability of the proposals and financial solvency of developers. He sand the goal should be returning the property to the tax rolls. He warned that abandoning food and beverage service could have long-term consequences because of the inn's non-conforming zoning status.

Katherine Goulart urged the council to choose the developer with the deepest pockets, to require performance bonds and choose a developer not asking for tax abatements. Roger Bennett, under the name Lighthouse Inn Investors LLC, was the only developer not to ask for abatements.  

“New London does not need to be left with a beautiful property that’s not generating any tax income,” Goulart said.

Laura O’Reilly, of Parkway South, worried about the intensification of use, the noise, lack of parking and traffic. She asked not to rush any decision simply because the city wants it back on the tax rolls.

It is unclear how the City Council will proceed in its task of choosing a developer but is likely to hold closed door sessions during their discussions.

Frank McLaughlin, a member of the Economic Development Commission and head of a study group investigating the four proposals, said his group concluded that none of the four proposals “comply with the goals of the city or surrounding neighbors.”

“Any of the proposals could be made to work with some adjustments to their applications,” McLaughlin added.

The committee’s findings were based on a survey of neighbors, a review of the city’s request for proposals and meetings with all of the developers.

Results of the survey showed that 58 percent of the 36 respondents did not want the inn demolished and 70 percent wanted a full service inn but seemed willing to consider a smaller footprint for public access. While 52 percent of the respondents said condominiums were acceptable, a majority of those replying wanted 10 or less new units, McLaughlin said.

“The ultimate goal is to preserve the inn with reasonable access to its traditional service,” McLaughlin said.

Tax abatements, the commission concluded, would not exceed what the city has offered to other developers. Inn owners must have a definite operating plan, a national reservations system, and working capital to sustain the operation for at least the first startup year.

McLaughlin also said all developers “must show a clear proof of adequate funds to implement their plan and provide a bond or escrow account to the benefit of the city for stipulated non-performance and the right of reversion of the property.”

g.smith@theday.com

Twitter: @SmittyDay