Council gets status update on Yankee Pedlar receivership; hearings continued to early August

Corporation counsel and city staff updated the Torrington City Council on Aug. 4 about ongoing litigation concerning the Yankee Pedlar property and the receivership overseeing the asset.

Council members were told that a recent day-long hearing addressed a petition filed by the property owner’s entity (Jason Hospitalities) seeking termination of the receivership and to block a court-authorized sale. The hearing ran about three hours and the judge continued evidence and arguments, scheduling a continuation on Aug. 6 and a wrap-up on Aug. 12. The council was told the hearings address two discrete issues: (1) a petition to terminate the receivership and (2) a request that the court authorize the property’s sale to a developer selected through an RFP process; the termination decision is expected to be resolved first and will affect the sale request.

City and Torrington Development Corporation (TDC) counsel said they have been actively litigating to maintain the receivership and obtain authority to sell the property to a chosen developer. The council and mayor reiterated the city’s longstanding position that the property’s condition—leaks, structural damage and safety hazards—has been harmful to the downtown and that the city has pursued court action to compel remediation or transfer to a party that will perform redevelopment. Council members asked about costs and were told legal expenses are being paid from blight funds and that the city expects to recover these expenses when the property is sold or otherwise resolved in court.

Ending: Counsel expects further proceedings in early August and said they will report back to the council after the upcoming hearings; the council said it intends to have the TDC and the chosen developer present details to the council if the court authorizes a sale.