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Renzullo optimistic about Laurel City Revamp plan

WINSTED — Despite some concerns expressed by skeptics, selectman Michael Renzullo said he is confident that his new organization, Laurel City Revamp, will not only be approved for nonprofit status by Internal Revenue Service (IRS), but will start rehabilitating old factory buildings in Winsted in early 2011.

Following the release of an opinion by the town’s ethics board stating that Renzullo would not be in violation of ethics rules if he pursues his plan, the selectmen said he must obtain two more pieces of paperwork before his company is fully legitimate. The first is a certificate of charitable organization recognition from the state Department of Consumer Protection. The second is approval of 501(c)(3) nonprofit status by the IRS.

“I think there has been a little bit of skepticism on some people’s part, but that it’s gradually going away,� Renzullo said. “I think people think it’s generally a good idea, and I think people would feel terrible if we squandered a chance at brownfields money.�

One of the driving factors in Renzullo’s decision to start a nonprofit property rehabilitation company is the fact that Winsted has $500,000 in federal brownfields money available to clean up old factory properties in town, but access to the funds expires in February 2011.

Last month, Renzullo gave a PowerPoint presentation to fellow board members outlining the business model for Laurel City Revamp. The company would purchase polluted properties such as the old Lambert Kay factory building, apply for grant money to clean them up and then market the renovated properties to potential buyers.

“There are a lot of private people who have come out of the woodwork who are interested in different properties,� Renzullo said. “I have been reaching out to those people who are interested and trying to get a deal going where we sign a sort of lease-purchase agreement. When we get everything finished, these people could either move in and lease for a period of time or purchase the building.�

Renzullo’s plan would rely on the charity of current owners of old industrial properties in Winsted, who would be asked to sell properties for as little as $1 for the purpose of getting them cleaned up. After cleanup, the properties would be sold to developers, with profits going back into the business. Renzullo said he would take a salary from the company, at about the median income for the area, which is about $60,000.

To get the company off the ground, Renzullo registered with the secretary of state’s office in October to incorporate the company and started collecting private donations. Once he receives approval of nonprofit status from the IRS, donations will become tax deductible.

Renzullo said he wants to focus initially on the south side of Main Street and has set his sights on buildings formerly occupied by Barrett Boat, Capital Products, Lambert Kay and Winsted Furniture.

“Ideally, we want to sell these properties, but if all we can get is a lease, we’ll take it,� he said.

While Renzullo acknowledged that some people seemed skeptical when he made his initial presentation to selectmen last month, he noted that the ethics board’s opinion has put people at ease and that he will not be involved in any board decisions regarding Laurel City Revamp.

Fellow selectman Ken Fracasso brought the issue up during a recent meeting to discuss issuing a letter of support for the project from the board. That letter is expected to help Laurel City Revamp obtain state certification, which would in turn make it easier to gain nonprofit status.

“I have every reason to believe this application will be approved,� Renzullo said. “I think we have the qualifying criteria to make us a nonprofit.�

Though Renzullo also has his own building and alternative energy businesses, this is his first foray into full-scale redevelopment, and he said he expects there to be a learning curve.

“I’m still a novice, and I’m learning everything along with everyone else,� he said. “But I also have experience that will go a long way. I’m optimistic and I think things are moving forward.�

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