A Stamford real estate developer must spend at least $9.7 million to receive a $25 million taxpayer contribution toward a waterfront remediation project according to documents obtained from the Department of Economic and Community Development.
DECD provided two agreements related to the proposed site for the future headquarters of the world’s largest hedge fund, Bridgewater Associates, in response to a Freedom of Information Act request.
None of the publicly available documents appear to mention Bridgewater, but the company could be referenced in documents that remain secret.
DECD made the agreements with three limited liability companies related to lead developer Building and Land Technology to support the Bateman Way remediation project.
In addition to the $25 million in public money destined for BLT and its partners, DECD plans to give Bridgewater another $115 million to partially fund its move from Westport to Stamford.
As of October, there was still no agreement between DECD and Bridgewater.
The company’s $750 million headquarters spanning 850,000 square feet is intended for Stamford’s South End, part of the $3.5 billion Harbor Point redevelopment project.
BLT is also landlord for two other companies that received aid from the administration of Gov. Dannel Malloy: Deloitte, which will get $14.5 million, and Starwood Hotels, $90 million.
The State Bond Commission approved $7 million for the Bateman Way project in January. DECD completed an agreement with the companies involved on March 19.
The bond commission approved another $9 million in April. An agreement dated June 14 governs that $9 million payment and a possible future payment of another $9 million. The second $9 million still needs bond commission approval.
According to the agreements, state funding cannot exceed 72 percent of the project’s cost. If the bond commission approves the last payment of $9 million, the developer must spend a total of $34.7 million to receive the $25 million from the state.
If the last payment does not come through, the developer must spend $6.2 million of its own money to receive the state’s $16 million contribution.
The state’s agreements are with three related limited liability companies: The Strand/BRC Group, Harbor Point Holding Company and TL76 Holdings.
TL76 Holdings, a real estate operating company, is the direct recipient of the state money.
Harbor Point Holding Company LLC is the sole member of TL76 Holdings, which means Harbor Point effectively owns TL76.
In addition to directly controlling TL76, Harbor Point indirectly controls The Strand/BRC Group, which owns the 14-acre parcel being developed by TL76.
Harbor Point is the managing member of The Strand/BRC and owns 1 percent of the company. The remaining 99 percent is owned by Admirals Wharf LLC.
According to the Secretary of the State’s website, Harbor Point Holding Company also controls Admirals Wharf.
Carl Kuehner III and Paul Kuehner, the brothers behind BLT, serve on Harbor Point’s board of managers. They are joined by Gerald Ronon and Jane Smith, executives with Lubert-Adler Real Estate Funds, BLT’s Philladelphia-based partner on the project.
Initially, Lubert-Adler partnered with Antares Investment Partners on the Harbor Point project. After taking unrelated losses during the financial crisis, Antares withdrew and BLT took its place, making a $200 million investment, according to the Wall Street Journal.
Harbor Point, the joint venture between BLT and Lubert-Adler, recently sold an apartment building, Infinity Apartments, for $98.8 million.
The Strand/BRC has applied for an Army Corps of Engineers permit to dredge part of the West Branch of Stamford Harbor. Public comments on the application were due last month.
Update: The March 19, 2013, agreement is here. The June 4, 2013, agreement is here.