Committee approves beer garden

The New London Economic Development Committee recommended that the New London Common Council approve a beer garden.

Under a developer’s agreement, a city-owned parcel at Wolf River Avenue and Smith Street would be sold to Der Wolf Garden LLC.

The recommendation came at the Dec. 10 Economic Development Committee meeting.

In July, the committee had directed New London City Administrator Chad Hoerth to negotiate a developer’s agreement with Kim Chonos, owner of Der Wolf Garden, for the proposed beer garden.

The New London Common Council was scheduled to act on the recommendation when it met Dec. 17.

Developer’s agreement
The proposed beer garden, which would also include a tap room and outdoor event space, would be constructed on .44 acres of property that Der Wolf Garden would purchase from the city of New London. The property is located just to the east of the SC Swiderski apartment development.

Hoerth told the committee that he worked with the city’s assessor, and determined that the current rate for vacant land in that area is about $105,000 per acre.

“So, in his opinion the market value for said parcel of .44 acres is about $46,200,” Hoerth said.

Hoerth said the minimum construction cost according to the developer would be at least $550,000.

Hoerth added that the city’s assessor feels that the minimum assessed value for the development would be at least $400,000.

Part of the developer’s agreement would have the city “work on improvements on the west side of the parcel.” This would include installing curb and gutter in that area, as well as continuing the sidewalk from the city’s current sidewalk to the north to get to the river.

“It makes it a cleaner path, a safer path to get to the riverfront property that we have there north of said development,” Hoerth said.

According to the developer’s agreement, these improvements would occur in conjunction with the reconstruction of Pearl Street, which is anticipated to occur prior to 2030.

Since the property is located within the boundaries of the city’s Tax Incremental Finance District No. 5, Hoerth said there were discussions about a TID incentive on the backend of the property. He said through the negotiations, it was determined it would be better for the developer to have the city give a development incentive grant equal to the sum of what the determined value of the property is.

“Essentially we are saying the property is valued at $46,200, we are countering that by saying that we are going to provide a development incentive grant of $46,200, so that there will be no exchange of money for the purchase of the property,” Hoerth said. “But again, there is no TID increment grant provided after that. So, the city would collect 100% of the TID increment that is going to be created by the development.”

If approved, all parties agree to execute the sale and conveyance of the property to the developer no later than March 1, 2025.
Hoerth added that the agreement includes a clause, that if the development is not started by July 1, 2025, the parcel of land would revert back to the city.

The development agreement also includes stipulations about “substantial completion of the project.”

“So that we can start collecting the TID increment on the parcel itself,” Hoerth said.

Parcel history
Hoerth said he researched the history of the parcel of land the city would be selling to Der Wolf Garden. He said the site used to house Wolf River Lumber Company, and was donated to the city, which at the time also included the parcel of land the SC Swiderski development currently sits on, in 2004.

“There was no money that the city had (to use) to purchase the property,” Hoerth said.

In 2006, Hoerth said the city was responsible for razing the buildings that were on the property. It cost the city $86,500 to raze the buildings and excavate and clear the land.

“Maybe the city has spent $8,000-$9,000 over time on that parcel (to be purchased by Der Wolf Garden),” Hoerth said. “So, it’s not like the city has spent a lot of money up to this point on the parcel. But it’s really exciting, and something we want to see development occur.”