With a handful of tenants remaining, The Bristol Industrial Park (BIP) is still set to close at the end of March after Mosaico BCDC, which owned the complex since purchasing it in 2010 (while also in …
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With a handful of tenants remaining, The Bristol Industrial Park (BIP) is still set to close at the end of March after Mosaico BCDC, which owned the complex since purchasing it in 2010 (while also in receivership), failed to make improvements to bring the buildings up to state fire code.
The property is once again in receivership, and Richard Land, the court-appointed receiver, is currently putting together a marketing package to promote the property for sale. Existing tenants may remain in place while the receivership process runs its course.
There are currently two note-holders and four notes on the property. The Town of Bristol holds two notes, one for $274,000 (for the previous owner’s unpaid taxes prior to the 2009 receivership) and one for $225,000 in program income (which is a revolving Community Development Block Grant loan program).
Immediately prior to closing on the acquisition from the receiver nearly a decade ago, the town offered to forgive the note for the back taxes, as they were not a liability incurred by the newly formed corporation. Mosaico accepted the offer but delayed its effectuation so the debt forgiveness could be used, if needed, as a match for future grant funds.
Bristol Funding LLC, the former owner, holds two notes, one for $700,000 and one for $850,000. No principal or interest on any of the four notes has been paid.
Two key players would seem to disagree as to the viability of the property as an investment. In an earlier interview, Merritt Meyer, former board chairman of the Mosaico BCDC, suggested that the requirement to satisfy the outstanding code and brownfield issues would serve as strong disincentives to any potential investor.
“In my view, a strong possibility exists that the BIP will become blighted for a long term,” he said.
In contrast, Town Administrator Steven Contente has been more optimistic about the possibility of avoiding blight at the 500 Wood St. location. For one, the property is now an official opportunity zone, thanks to the efforts of Economic Development Coordinator Chris Vitale, with all the attendant benefits, such as no capital gains tax.
“It is not going to sit vacant like it did through the ’80s and ’90s,” Mr. Contente said. “All indications are that this is a highly marketable property, zoned for general business and manufacturing.”