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Committee raises oversight questions after discovery of license and arrears at 131 River Road
Summary
City staff told the committee that 131 River Road — acquired by the city in 2021 — has been occupied under a license that is now month-to-month; staff reported the tenant’s arrears were reduced to about $7,000 after recent payments and the committee directed staff to pursue a lease or other corrective steps and report back.
Committee members told staff they were concerned about how a month-to-month license at city-owned 131 River Road had been handled and directed staff to resolve outstanding financial and procedural issues.
Stacy Marks, director of economic and community development, said the city acquired 131 River Road on Sept. 13, 2021, and that the property has two small buildings that were once used by the Middletown Little League. The current occupier runs a small retail operation and a clothing swap on the second floor; staff placed the property into an RFP for property management because there had been limited oversight under prior arrangements.
Marks told the committee the original written license term read from Oct. 1, 2021, to Oct. 31, 2022, but the arrangement is now month-to-month. She said the tenant had been behind on payments historically but has been making consistent monthly payments of $1,000 for about eight months and the outstanding balance was down to roughly $7,000 after a check received at the meeting.
Councilwoman Jeanette Blackwell said she found no ordinance authorizing long-term license arrangements for occupying city property and said the committee needs consistent oversight: "There is absolutely nowhere in our city ordinance where this is appropriate," she said. Chair Phineas Lofredo directed staff to contact the occupant, pursue a cure for the arrears or convert the arrangement to a formal lease where appropriate, and to report back to the committee. Staff said they will follow up and return an agenda item with recommended next steps.
What’s next: Staff will contact the occupant to resolve arrears, examine legal authority for license arrangements, and prepare a recommendation to regularize the property's occupancy status or bring a proposed lease forward for committee review.
