City updates council on Yankee Peddler receivership; judge denied termination and defendant appealed

Corporation counsel updated the Torrington City Council on the legal status of the Yankee Peddler property, saying Superior Court Judge Lynch denied a motion by Jason Hospitality to terminate the receivership and that Jason Hospitality has appealed that decision to the Connecticut Appellate Court.

Corporation counsel said the city is scheduled to appear in Superior Court on Sept. 23 on motions related to a proposed sale of the property and that the appeal could affect the timing of the sale. The city may retain outside appellate counsel: counsel noted the city previously consulted an appellate firm and may re-engage outside counsel for the appeal because appellate practice is a specialized area.

The council was reminded that the city previously agreed to allow up to $60,000 from blight funds to pay for building stabilization and legal work related to the receivership and that, if the property sells, there is a standard distribution (a “pecking order”) by which the city’s expenses could be reimbursed from sale proceeds. Corporation counsel said the city’s legal fees and stabilization costs were being funded from blight funds rather than the general-taxpayer fund, and that reimbursement would be sought if proceeds are available.

Council members asked about total legal costs to date; corporation counsel said the matter is ongoing and that she would bring more detailed billing and strategy information to a future meeting. The council requested that the Torrington Development Corporation be invited to present on stabilization work, grant applications and next steps at an upcoming council meeting.