Nov. 27—EAST LYME — The Inland Wetlands Agency has backed an effort by the East Lyme Land Trust to preserve a 5.1-acre tract of land on Pattagansett Lake.
The proposal first emerged last month when Land Trust President Arthur Carlson said the city could buy the property or let a private developer build homes there. He acted as an intermediary for investors represented by former resident Steve Harney, who was instrumental in the city’s purchase of three different parcels for $2.3 million earlier this year.
Carlson described further development of the lakefront area as a threat to the underlying aquifer that feeds one of the city’s largest public springs.
The wetlands agency wrote in a Nov. 19 letter in support of a grant application submitted by the land trust to the state Department of Energy and Environmental Protection’s (DEEP) Open Space and Watershed Land Acquisition grant program.
In the letter authored by Wetlands Enforcement Officer Gary Goeschel and signed by agency President Kristen Chantrell, they said leaving the land undeveloped will help ensure water quality in the lake and prevent the type of surface water runoff inherent in residential development that could endanger health. of the sensitive hydrological system.
“This applies to all cities, but especially in East Lyme due to the location of municipal drinking water sources downstream, the city’s proximity to Long Island Sound, and high water use during the summer months,” the letter said.
The axe-shaped property is adjacent to 120 acres of land that was sold to the city earlier this year as part of its multi-million dollar open space purchase. The land trust acquired the so-called Hathaway Property in 2022 from a limited liability company associated with Harney, changing the company from owner to lender.
Harney carved out the 5-acre parcel from the Hathaway property before selling the rest to the land trust. In a phone interview on Wednesday, he said he’s ready to unload and take advantage of the tax breaks.
Harney placed a price tag of about $450,000 on the land, which he said he offered to the city for $600,000 during negotiations for the original purchase.
“Everyone accused us of taking the best part,” he said. “Now I’m offering it back to them for probably 30% less than two years ago.”
When asked why, the North Carolina transplant said now is the right time for him and his fellow investors.
“Just because I want to get on with my life, and it really makes sense for me to do it fiscally,” he said. “It’s just timing because we’re not going back there.”
Harney said he is waiting for assurances from city officials that they are interested in preserving the land as open space.
“If I have any confidence that they’re going to do it, I’ll sign a contract with the Land Trust,” he said, echoing the process that played out earlier this year.
The city would then purchase the property from the land trust and transfer the awarded grant.
According to the DEEP, the land trust has until December 2 to submit an application and until January 6 to have an appraisal done. Subsidies can be awarded up to a maximum of 65% of the fair market value.
Possible audit issues
Among the requirements is proof of audits going back three years for organizations that have received state grants worth more than $300,000.
The land trust received $560,000 in 2020 for what was then called the Nehantic Nature Preserve, which covers 320 acres on the Montville border.
As of June, DEEP was not aware that any audits had been filed, according to a spokesperson. The state’s online reporting system has stopped showing any documents since then.
The agency was unable to provide updated information Wednesday on the land trust’s compliance with audit requirements.
Carlson said in a phone call Wednesday that he does not know if an audit is being prepared.
“We can’t skip it,” he said. “I just don’t know what the status is, and who the people are who are working on it.”
He said the land trust is reorganizing after the death of President Ronald Luich last year.
“It’s very difficult in small organizations when only one or two people take the lead,” he said. “If one of them passes, it becomes very confusing.”
First Selectman Dan Cunningham said Wednesday he hopes to visit the site soon.
It will be up to the Board of Selectmen to see if there is an appetite among taxpayers to purchase more open space.
“I think we’re still thinking about whether this is something that the city wants or needs or not,” he said.
e.regan@theday.com
