The former famed Monterey jazz club, one of 4 Ocean-owned buildings on Dixwell Ave. that the city is looking to buy for $1.3 million.
Thomas Breen file photo
LCI's Evan Trachten: Ocean has "had the site for several years and failed to develop it."
The Elicker Administration plans to purchase a handful of rundown Dixwell Avenue properties from affiliates of Ocean Management for $350,000 more than those properties’ combined city-appraised value — and for $800,000 more than what the megalandlord paid to buy those same buildings six years ago — as part of a public effort to develop affordable housing in a revitalizing stretch of the Dixwell neighborhood.
That plan won the endorsement of the City Plan Commission Wednesday night during the local land-use board’s latest online monthly meeting.
As presented by Livable City Initiative (LCI) Acquisition & Disposition Coordinator Evan Trachten, city government is looking to pay affiliates of Ocean Management $1.3 million to publicly acquire 262, 263, 265 and 269 Dixwell Ave. Included among those properties are the derelict former home of the famed Monterey jazz club, a shuttered deli, and two multi-family houses.
Now that this plan has won the recommended approvals of both the City Plan Commission on Wednesday and LCI’s Property Acquisition and Disposition Committee (PAD) on Nov. 16, it advances to the LCI Board of Directors for further review before heading to the full Board of Alders for a final debate and vote.
Trachten told the City Plan Commission that the city hopes to buy these Dixwell Avenue properties from Ocean in order to build affordable housing units that the megalandlord had previously promised to develop along that very Dixwell corridor.
Ocean had public intentions to transform the commercial properties at 265 and 269, specifically, into apartment buildings with three- and four-bedroom units, 40 percent of which would have been subsidized for low-income renters. Two years after the concept was presented by Ocean to the Dixwell Community Management Team, no progress has been made to build up those properties into new, occupied places to live.
According to the city assessor’s database, the Ocean Management affiliates bought those four Dixwell Avenue properties in 2016 and 2017 for a grand total of just $500,000.
During last year’s citywide property revaluation, the city appraised these four properties for tax purposes as worth a combined sum of $942,400.
According to this new plan, the Elicker Administration is looking to pay Ocean $1.3 million to buy for those same properties before another developer can swoop in and potentially stall yet another plan to broaden New Haven’s limited housing stock.
“They’ve had the site for several years and failed to develop it,” Trachten said on Wednesday about Ocean Management’s ownership of the sites.
Why is the city willing to pay so much more than the city-appraised value of these properties to a megalandlord that has repeatedly been in trouble with LCI over persistent housing code violations at other local Ocean-owned rental properties?
East Rock Alder Anna Festa asked a version of that very question — at least, in regards to the city purchase price vis-a-vis city appraisal price — during the Nov. 16 PAD Committee meeting.
“The purchase price was negotiated by LCI,” the written minutes for that meeting read in response to Festa’s question. “There is a community benefit and staff don’t expect the City to be overpaying by $400,000 relative to the assessed value. The area will be cleaned up and this will eliminate the blight and vacancies, which will have a huge impact on this area.”
Ocean Management Principal Shmuel Aizenberg, whose affiliate companies own hundreds of mostly low-income rental properties around the city, did not reply to multiple requests for comment by the time of this article’s publication.
The potential acquisition of these properties is also part of the city’s broader and ongoing effort to revitalize the Dixwell neighborhood through local government acquisition of properties such as Walt’s Cleaners, located at 310 Dixwell Ave., and through the support of projects like ConnCORP’s redevelopment of Dixwell Plaza and the city’s rebuilding of the Dixwell Community “Q” House nearby.
On Wednesday, Trachten described this latest proposed land purchase as a move “to protect the neighborhood and create affordable housing opportunities.”
Nora Grace Flood photo
Former location of the Monterey.
LCI’s Board of Directors will next take a vote on whether or not the city should buy these four Dixwell Avenue properties. If they vote yes, the alders will then get a final say on the proposed land purchases.
If the deal goes through, the city would adopt two, two-family homes and likely sell them to non-profits who could rehabilitate the buildings, according to Trachten. Although those two houses are currently home to multiple tenants, Trachten said nobody would be at risk of displacement.
The mixed-used properties, 265 and 269 Dixwell Ave., include the old Monterey club, where performers like Duke Ellington, Billie Holiday and Charlie Parker once played, and a vacant convenience store, both of which have residential second floors.
None of those buildings will be demolished, Trachten told the City Plan Commissioners on Wednesday, if the city completes the purchase. Rather, if the city were to succeed in buying them, the properties would be renovated to better accommodate the needs of the Dixwell neighborhood, according to Trachten. For example, above the ground floors of the two commercial properties are primarily studio apartments that the city may try to resize into larger units, Trachten said.
Trachten said that the exact plan for what to do with the properties and which agencies the city will partner with to make that happen has yet to be determined. “We might rehab ourselves or put out an RFP,” Trachten said. In the meantime “we want to make sure it doesn’t get sold to another developer.”
Ultimately, he promised, “we’re gonna bring a positive impact to the neighborhood through our acquisition and we really see a community benefit to this endeavor.”
City Plan Commission Chair Leslie Radcliffe commended the city for aiming to acquire properties not only “near and dear to the city of New Haven, but to the Dixwell neighborhood in particular.”
Commissioner and Westville Alder Adam Marchand, along with the rest of the commission, expressed enthusiasm for the concept.
“There are several goals in our Comprehensive Plan that would be served by this endeavor,” he said, such as increasing New Haven’s housing stock and affordability.
“This is an example of the city putting in the work in the direction that we’ve been talking about so often,” he stated.
The commissioners then voted unanimously to recommend approval of the deal.
"LCI Does Not Want An Investor To Acquire This Portfolio"
Multifamily houses at 265 and 262 Dixwell (below), part of the proposed city-Ocean deal.
... And another at 262.
The meeting minutes from the LCI PAD Committee’s Nov. 16 meeting shine further light on this proposed city-Ocean property deal.
“Evan told the committee the City is proposing to acquire a portfolio of properties owned by Ocean Management affiliates for $1,300,000,” those minutes read. “The properties consist of two partially occupied two-family houses at 262 & 263 Dixwell Avenue, as well as two mixed-use vacant properties at 265 & 269 Dixwell Avenue. 265 Dixwell Avenue is the former “Monterey Club” and 269 Dixwell Avenue is a vacant convenience store with residential uses above.”
Those minutes point to the redevelopment of the nearby former Joe Grate’s site, the planned redevelopment of the former Walt’s Cleaner’s site, the renovation of an adjacent church, and the planned development of 308 Dixwell Ave. as just some of the revitalization activity taking place on this stretch of Dixwell, not to mention Dixwell Plaza and the Q House.
“Evan told the committee it is vital for the City to acquire this portfolio of properties for site control,” those PAD Committee meeting minutes continue. “The current owner has talked about redeveloping this site since the days of the Harp Administration, but nothing has occurred. The City would like to take control of this area. The City is proposing to conduct a simultaneous acquisition and disposition of 262 & 263 Dixwell Avenue and not hold title to occupied properties. LCI is working to select a non-profit to take title to 262 & 263 Dixwell Avenue as part of the acquisition- disposition. The City will retain 265 & 269 Dixwell Avenue and rehabilitate the property for mixed-use purposes. The City is in the process of obtaining appraisals for all the properties. These properties are in the heart of the revitalization area on Dixwell Avenue.”
Those minutes state that the city has dedicated federal Community Development Block Grant (CDBG) funds to acquire these properties.
“LCI does not want an investor to acquire this portfolio. Acquiring this cluster of properties is key to the revitalization of Dixwell Avenue. As part of our rehabilitation of 265 & 269 Dixwell Avenue, the City will control how many residential units are developed. The properties currently contain several one-bedroom units and LCI may want to create larger units. This acquisition will support the other investment in the Dixwell Avenue corridor.”
City Deputy Economic Development Administrator Steve Fontana then spoke up in favor of the proposal, according to the PAD Committee minutes.
“Steve understands the concerns expressed by the Alders. Steve said this is precisely the time to utilize scarce City resources to act as a catalyst to further the development of this corridor. The City hasn’t been able to act quickly to acquire sites like this and this is a great opportunity. Steve noted he understands Clay’s concerns [that is, concerns expressed by city economic development official Clay Williams about how much tax revenue would be lost by publicly acquiring these four properties] but based on his experience in development this is exactly what needs to be done.”
Thomas Breen contributed to this report.
I love this city. Born here and spent most of my life here. Raised several children here. But for me this is the last straw. If the city pays $350,000 more than those properties’ combined city-appraised value — and for $800,000 more than what the megalandlord paid for them, essentially doubling his money for letting these properties sit and rot, then I am done. I'm going to serve out the rest of my term, sell and move somewhere where the leaders respect my hard earned tax dollars. Or better yet, maybe I'll lease my house at exorbitant rents, don't put any money into rehab, and then sell it for crazy money when it is falling apart.