CONTRACT-LEASE
Motion/Request:
title
MOTION to set a Public Hearing (Hybird Format - Video Conference and In-Person) on Wednesday, July 8, 2026 at 6:15 p.m. to be held in the Council Chambers, 741 Colonel Ledyard Highway, Ledyard, to receive comment regarding the Town of Ledyard to sell town-owned property located 480R Shewville Road, (fka) Loftus Wellfield, for $150,000 to Mr. Kevin Blacker, of Groton, Connecticut; in accordance with CGS 07-163e.
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Background
CHAPTER 98*
MUNICIPAL POWERS
In accordance with
Sec. 7-163e. Public hearing on the sale, lease or transfer of real property owned by a municipality. (a) The legislative body of a municipality, or in any municipality where the legislative body is a town meeting or representative town meeting, the board of selectmen, shall conduct a public hearing on the sale, lease or transfer of real property owned by the municipality prior to final approval of such sale, lease or transfer. Notice of the hearing shall be published in a newspaper having a general circulation in such municipality where the real property that is the subject of the hearing is located at least twice, at intervals of not less than two days, the first not more than fifteen days or less than ten days and the last not less than two days before the date set for the hearing. The municipality shall also post a sign conspicuously on the real property that is the subject of the public hearing.
(b) The provisions of subsection (a) of this section shall not apply to (1) sales of real property, except parkland, open space or playgrounds, if the fair market value of such property does not exceed ten thousand dollars, (2) renewals of leases where there is no change in use of the real property, and (3) the sale, lease or transfer of real property acquired by the municipality by foreclosure.
Additional Background:
In 1993, the Town sought a new well field location to supply water to the Highlands subdivision (700+ homes), as the existing supply was failing. An agreement was reached with William and Dorothy Loftus to acquire the 11.46 acre parcel with a ROW only for access (no deeded frontage), now known as 480R Shewville Road for $275,000. The wells were installed and ultimately supplied water to the Highlands as well as Lakeside Condominiums. In 2010, Groton Utilities and the Town reached an agreement to provide water in parts of town, including the areas served by the Loftus Well Field, thereby terminating the need for the well field. Once connections were made, the Loftus wells were filled in and officially closed, equipment removed from the structure. Recognizing this as surplus property, we sought ways to re-use the parcel but soon learned a restrictive covenant prohibited any use but as a municipal well water supply. With that use extinguished, we had effectively no use of the property. The Mayor contacted legal counsel to determine the validity of the highly restrictive covenant, which was legally determined to be enforceable.
In addition, the Mayor started the legal research on the Loftus restrictive covenant on 7/7/2021 and completed that work with our then new Torn Attorney, Shipman & Goodwin in April 2023. This was a time consuming process that was not knee-jerk.
Finance Director Comment/Recommendation:
(type text here)
Mayor Comment/Recommendation:
I support the sale of the parcel to Mr. Blacker as he also has a contract with the Loftus family for the remaining farmlands that surround this parcel. Though the Town purchased the parcel for $125,000 more than the offer, the value in providing drinking water to residents in a time of need was the true value, so the residual value of $150,000 is fair to all parties.