New Canaan First Selectman Letter of Intent to purchase 220 Elm Street for $6.1 million

First Selectman Kevin Moynihan announced that he has signed a Letter of Intent with Bankwell Financial Group (“Bankwell”) to purchase the office building owned by Bankwell located at 220 Elm Street in New Canaan for $6.1 million.

First Selectman Moynihan also stated that, subject to Board of Education approval, the New Canaan School District’s administrative offices and the NCPS Launch and alternative programs currently occupying rental space at 39 Locust Avenue in New Canaan will be relocated to approximately 54% of the 220 Elm Street building by December 2022.  The other 46% of the building will be sold to two private investors as condominium office units.  The net purchase cost of the space for the School District is about $2 million, which will be bonded over 20 years at currently very low municipal bond interest rates.

Since the 220 Elm Street building was constructed in 2001, the Town of New Canaan has owned the land under the building and the building is currently subject to a 99-year ground lease.  The building tenants are also entitled to parking spaces on adjacent Town-owned land and in the adjacent Lumberyard parking lot owned by the Town.  As part of the purchase of the building, which is planned to close before December 31st, the ground lease will be ended and the land will become owned by the three condominium owners with undivided ownership interests.

First Selectman Moynihan commented:  “The purchase of the 220 Elm Street space for the Board of Education and School District presents a once in a generation opportunity to return to ownership of space for an essential local governmental function.  The economics of owning versus renting for the BOE’s needs are compelling, and we are very happy to be able to acquire from Bankwell a property that the bank no longer needs.  We thank Bankwell for working with the Town for many months to achieve this mutually beneficial transaction.”

Superintendent Bryan Luizzi commented: “This is our 30th year at 39 Locust Avenue, and while we’ve been very happy with and grateful for our landlord and the service provided by Plaza Realty, we are excited by this opportunity to adapt the space at 220 Elm Street to meet the needs of our school district offices and programs.  I want to thank First Selectman Moynihan for his vision and persistence.  This plan is a long-term solution that supports the Board of Education as well as the students, staff, and families involved with our Launch and alternative programs.  We look forward to continuing our partnership as we work through the next phases of this exciting move.”