Death of an Option

The announcement this past week of the chapter 11 filing of Erikson Retirement Communities should be the death knell for the Patriot Partners option and proposal to develop the Land Locked Land. As you know, Erikson was a key component of the proposal by Patriot, citing the enormous need for senior assisted type living in the region. The re-organization filing immediately begs the obvious question, if there is such an enormous need how is it they were not financially viable? They have 20 of these large communities and they could not pay their bills?

This event confirms the town's decision not to engage in any kind of a deal with the proponents. Can you imagine the financial complexities the town might have faced had a deal been in place and a bankruptcy resulted?

There is a certain irony in these events as the last two companies involved in the property have also gone into some kind of bankruptcy. In fact, the only reason Patriot has ownership of the option is because they purchased it from the Delaware bankruptcy court.

The events point out the need for the town to be ever more vigilant in any development proposals that are brought forth that includes any involvement by the community. Much of the same rhetoric was used by the original development proponent of the property over 20 years ago. Cadillac Fairview had trumpeted the opportunity that was available to the town and the tax revenue that would be generated and the wonderful companies that would be attracted to the development. Shortly after the town rejected the overtures, the company went out of business.

There seems to be still some glimmer of hope in some minds that the deal will still go through. Strangely, the town administrator is quoted, "if it is not Erikson, someone else will step into the void." He is further quoted in the weekly paper this way, "No decision has been made regarding the Landlocked Land." That is not entirely true since a multi board committee deliberated for several months two summers ago and rejected the idea of any further discussions and the town meeting ratified that decision. So to did the board of selectmen since they have been unwilling to enter into any discussions with Patriot.

According to Mr. Mercier, the next step is that a group favorable to Patriot will submit a petition to the board of selectmen asking for a referendum question in April. Considering the filing by Erikson, it will be interesting to hear the proponents justify how such a question would be in the town's best interest. Based on current events, the board is certain to reject such a request and will suggest to the proponents that they are free to collect the 1500 plus signatures necessary to put the question on the ballot themselves.

Even if those signatures are collected, whatever the language of the question, it would be non binding. Within a month of any election results, Patriot's option will run out and this chapter of the Land Locked Land saga will end.