Lundy loses potential tenant for Clinton Street redevelopment

Jun. 22—With no tenant for Clinton Street redevelopment, eyesore remains a concern

WATERTOWN — Developer Michael E. Lundy's plans to redevelop the old Medical Arts building have hit a brick wall with the recent loss of the main tenant bowing out of the project.

Lundy has confirmed that Kim Allen is no longer interested in creating corporate headquarters at the prime piece of downtown property for the businessman's financial consultant firm.

Allen, whose firm is now located at 19607 Route 3 in the town of Watertown, has moved on to "other opportunities," Lundy said, although the developer would not elaborate.

While Lundy said he understands why Allen is seeking other options, he is back to the drawing board to determine what comes next for the two vacant Medical Arts buildings at the conjunction of Clinton, Sherman and Mullin streets.

He's considering "a couple of options" but would not share what they are. He's also received interest from potential buyers of the property but has decided not to sell, Lundy said.

As part of the Allen project, Lundy was going to sell the property to Corry J. Lawler, owner of The Lawman Construction Group, and Allen, who owns United Professional Advisors. Plans called for a 28,500-square-foot office building.

The firm would have been the primary tenant. Other tenants would be sought.

After demolishing the one-story structure on the site, the other two-story building was going to undergo a complete renovation. A 4,400-square-foot addition also was planned.

Last July, the city Planning Commission approved the site plans and some minor modifications for the project.

The downtown property has sat idle since Lundy's company, Lunco, purchased the 2.5-acre site in 2016 for $525,000. At the time, he proposed another variation of an office building at the site that didn't materialize, partly because of the stunted national economy during the COVID 19 pandemic.

The property is adjacent to the Watertown Savings Bank's main branch, where a 14,000-square-foot addition to combine the bank's lending department is just finishing. Lundy has also been involved in the bank project.

Bank officials, who could not be reached for comment, wanted assurances that Lundy's property would be redeveloped as soon as the bank work was done.

In recent weeks, city officials have expressed frustration with the lack of progress and the deteriorating condition of the site over the past eight years.

In December, the city codes office instructed Lundy to clear the site of construction debris and to secure the two vacant buildings because people were getting inside.

Dana P. Aikins, code enforcement supervisor, said Thursday that Lundy acted quickly and cleaned it up.

During Monday's council meeting, City Councilman Benjamin P. Shoen and Mayor Sarah V.C. Pierce said they are receiving complaints from residents about the property's condition.

The subject came up when Shoen's father, Vaughan, remarked about it during the public comment portion of the meeting.

Later in the meeting, Councilman Shoen said he's been asked why the city doesn't do something more to get the property cleaned up, noting that the chain-link construction fence has been up for years.

Pierce said people have been calling her and stopping her in the grocery store to ask about its condition.

"It's really unsightly," she said, adding that vegetation and small trees are growing out from a large pile of dirt behind the one-story building.

But Lundy defended himself, saying that "a lot" of the debris, including the big hill, came from the bank project next door.

"It will get cleaned up," he said, adding that some old tar from the bank project was removed just last week.

He stressed that his priority is getting the bank project and a $20 million hatchery finished on Route 3 in the town of Watertown rather than cleaning up the debris at the site.

As he said in the past, Lundy said he plans to use the large hill to fill in the basement of the one-story building after it's been torn down and utilized in the redevelopment.

Pierce has asked City Manager Eric F. Wagenaar to look into the situation. On Wednesday, Wagenaar said he planned to contact Lundy to see how the city could help.

Later that afternoon, Wagenaar also met with city engineer Tom Compo and Aikins to discuss a strategy about how to handle the property.

The city will make sure that the site and construction fence remain secure and not a hazard, Aikins said. His office also will keep track of the construction debris.

As for the pile of dirt, the city has said it will ensure that rain runoff is not ending up on nearby properties. There's not much else that the city can do about the hill because it doesn't fall under building or other permits, Aikins said. The city engineer will still look into what can be done about the mound of dirt.

Earlier this week, Lundy repeated his response two more times.

"It will get cleaned up," he said.