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After debate, Torrington council approves $40,000 for TDC legal costs tied to Yankee Peddler
Summary
The Torrington Development Corporation asked the council for up to $100,000 from the blight fund for litigation and receiver costs tied to the Yankee Peddler; after an executive session and debate about oversight, the council amended the request and approved up to $40,000 for litigation expenses.
The Torrington Development Corporation presented to council on April 6 seeking a commitment of up to $100,000 from the city's blight fund to reimburse litigation and receiver costs tied to the Yankee Peddler receivership. TDC President Greg Perino and TDC Treasurer Lisa described the receivership work, stabilization efforts and legal costs to date.
Perino said the TDC assumed court‑appointed receivership in 2024 and has spent roughly $44,340 on legal and appraisal services plus about $20,000 on building management. He told the council that the requested funds would be used for attorney fees, expert testimony and costs associated with securing court approval to sell to a preferred developer, negotiating price and recovering receiver costs.
"This request will only be used for expenses incurred in the legal proceedings," the TDC presentation said. Lisa, the treasurer, confirmed the attorney's hourly rate is $250 but declined to disclose detailed hours in open session to avoid revealing legal strategy.
Council members pressed for more granular accounting and for a process that allows council review before large disbursements. One member said he would prefer invoices come to council for approval as they arrive rather than an upfront commitment of a large share of the blight fund. The council then voted to table the $100,000 request and added an executive session to discuss anticipated legal expenses. After the executive session the council amended the allocation and approved up to $40,000 to be used by the TDC for litigation costs (explicitly not for rehabilitation).
Council discussion highlighted competing concerns: the public benefit and downtown importance of resolving the Yankee Peddler property versus protecting a limited blight fund and avoiding unchecked legal spending. TDC representatives said invoices and time sheets have been available to city staff and that the TDC is open to whatever reimbursement and oversight cadence the council prefers.
What happens next: TDC will follow the agreed invoicing/reimbursement process; the city will continue to pursue the receivership petition to sell (court hearing noted for April 9). The council's commitment of up to $40,000 provides near‑term support for litigation and expert costs as the case proceeds.
