Deer Lake Update: Lawsuit Filed
With the deadline for a competing offer now passed, word comes that a Madison resident is suing the Connecticut Yankee Council for allegedly mishandling its non-profit status and violating state rules and regulations regarding development of dedicated preserved parcels. Madison resident David Stephenson, who could not be reached for comment, said in his filing that the council publicly established the sanctuary via “publication and the installation of signage proclaiming the use” and claims that official establishment mandates that the sanctuary section of the parcel must be maintained.
The focus of the suit stems from the Richard English Bird Sanctuary and the parameters that a formal dedication of a sanctuary may impose on the council’s ability to sell the property and also whether it can even be developed if sold.
If that position turns out to be a valid legal one, it could mean a large section of the parcel, or possibly all of it, would be off limits to development, or could put adjacent sections of the property into development limbo as well.
The suit is seeking a declaratory judgment that the Deer Lake Reservation was legally dedicated as a bird sanctuary. The action also wants a court to impose conditions that any sale of Deer Lake must mandate a conservation restriction prohibiting any changes to the property not consistent with its use as an established bird sanctuary, according to the filing.
According to the legal action and others familiar with the original bequest, in 1985 the council received donations from a New Haven ornithologist and philanthropist, Richard English, to establish an eponymous bird sanctuary on the 255-acre property.
According to the suit, after the English’s death in 2011, the Richard L. English Fund continued to make annual $100,000 donations to the council for upkeep of the sanctuary, further establishing the property as a protected parcel.
This suit will not affect the sale, according to town officials, which as of publication could not be confirmed to have officially taken place as scheduled on May 1. Neither Stephenson’s action, nor any information uncovered by Connecticut Attorney General William Tong’s office, which is currently investigating if the sale can be legally permitted, will only have an impact post-sale.
Tong’s office is delving into questions on several different fronts concerning the “legal status of the property and potential sale” to Margaret Streicker, an investor and developer, who has offered more than $4.6 million for the property. One question is whether a board member of a nonprofit, recused or not, can legally be involved in a transaction of this type.
More concerning is the question whether Streicker and the Yankee Council somehow colluded in inflating the value of the property. The actual value of the parcel has been a point of contention, since it went public that Streicker’s offer was nearly double the amount of an appraisal done by a New Haven nonprofit, The Trust for Public Land, which submitted a rejected $2.4 million offer for the property in February.
However, no evidence of any collusion or criminal activity has been made public by any official. Streicker has strenuously denied any wrongdoing and said that the deal is legal and conforms to all ethics of her position as a board member and the council’s responsibilities as a nonprofit.