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    Saturday, May 04, 2024

    Economy blamed for further lag in developing Occum property

    Norwich - The poor economy killed the $200 million proposed Byron Brook Country Club resort in Occum last summer, and now the real-estate agent marketing the sprawling property for $13.75 million says the economy is to blame for sluggish response by potential developers.

    The project encompassing the former Tarryk and DoLittle farms in Occum and several other parcels initially called for a golf course, clubhouse and 658 condominiums. Developers Robert Arnone and Joseph Manzi first scaled back the project before withdrawing the plan in June.

    The 335 acres is the largest undeveloped tract of commercial land in the city.

    Arnone said this week that the project was a "casualty" of the economic downturn, "like so many others throughout the United States." Country clubs have suffered major membership losses, and no new golf courses are being designed, he said. The market study that showed desire for second homes in eastern Connecticut near the region's two casinos evaporated, and Arnone said it could take seven to 10 years before the housing market recovers from the crash.

    "It would have been disastrous if we moved forward with our original plans even with final approvals within our grasp, only to have barren foundations riddling a beautiful landscape," Arnone said.

    The two New York developers put the entire property on the market as one piece at the $13.75 million price, including the more than 30 acres of commercial land that fronts Route 97 in Occum.

    The commercial land required a new road from Route 97 along the narrow, dead-end School Avenue that also would have been the main access to the resort land. Much of the farmland fronts narrow residential streets, including Canterbury Turnpike and Lawler Lane. Arnone said a new road would still be necessary and would cost developers approximately $2.5 million.

    Jane Macy Pfeffer, senior sales associate at William Pitt Sotheby's International Realty in Essex, said she has shown the property to several parties but hasn't seen a lot of interest to date. She has marketed the property to international investors in the Asian and European arenas, but economies there are also are in difficult times, she said.

    Arnone said the developers might consider separating out the Route 97 commercial property if a buyer comes forward.

    Most of the property is zoned as Planned Development District, which allows resorts, hotels, convention centers, commercial recreation facilities and housing as an accessory use with a special permit, said Peter Davis, Norwich director of planning and development.

    Davis stressed that the former resort plan is defunct and that any new developer would have to submit new plans.

    City officials have also tried to coax interest in the Byron Brook property, and Norwich Community Development Corp. Executive Director Robert Mills visited the property with prospective developers, including one Davis termed of "serious interest."

    Arnone said attracting a large business developer to the property could take city involvement and city tax incentives. The area is not covered in the downtown revitalization district and is not part of an enterprise zone that carries tax breaks.

    Mayor Peter Nystrom said tax deferral deals could be worked out with prospective developers, noting that costs to build roads and bring utilities to the area would be high.

    "Most groups I'm finding right now are really hedging their bets and not exposing themselves to any debt right now," Nystrom said. "It's different if you have your own capital."

    c.bessette@theday.com

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