Does a certain hedge fund capital have a going problem?
Greenwich officials have commissioned a study on the role that the sophisticated investment pools, private equity firms and the financial services industry in general has on the local economy.
The town's hedge fund universe lost a major star last month when ESL Investments, the $9 billion private investment fund of Edward Lampert, packed its bags for Miami, a destination with no state income tax and a lower corporate tax than Connecticut.
"We're not taking these people for granted," First Selectman Peter Tesei said Thursday. "It's easy to vilify (them) based upon an image."
Tesei's comments came during the biweekly meeting of the Board of Selectmen, where he announced that a volunteer economic advisory committee that reports to his office will conduct a broad analysis of the impact financial services companies have on Greenwich and report its findings by the fall.
Among the committee's 10 members is Greenwich Chamber of Commerce Executive Director Marcia O'Kane and Paul Settelmeyer, who represents the town on the South Western Regional Planning Agency.
"We feel that it is an important undertaking because the town is dependent on it," Tesei, the town's chief elected official, said of the financial services industry.
Hedge funds, which invest in stocks, commodity futures, options and emerging market debt, are complex investment pools that cater to high-net-worth individuals.
Lampert, the force behind the Sears and Kmart merger, is currently the 367th richest person in the world, with a net worth of $3.1 billion, according to Forbes.com.
Representatives of is hedge fund declined to say what precipitated the firm's exodus from Connecticut or how many people it employed at its 200 Greenwich Ave. headquarters when it revealed it was relocating.
Tesei acknowledged that the loss of ESL Investments set the wheels in motion for the town conduct an analysis of its own.
"What does that mean for Greenwich?" Tesei said. "What does that mean for the state?"
In other business, the selectmen voted unanimously to go back to two-way traffic on New Lebanon Avenue in Byram after experimenting with a one-way traffic pattern for 90 days that was widely panned by residents of the neighborhood.
Byram Neighborhood Association Chairman Michael Bocchino criticized the town's conduct of the trial and what he characterized as a lack of communication by the Department of Public Works about changes to the street and signage.
"With all that, the community is completely and utterly frustrated that the town's Department of Public Works missed the boat on all these items," Bocchino said. "We the people of Byram deserve a little bit more, as does the town of Greenwich."
Jim Michael, the town's chief engineer, agreed that the road should be returned to two-way traffic in what he called a "compromise."
Michael noted that New Lebanon Avenue is being repaved and will get new sidewalks and granite curbing. There will be eight on-street parking spaces on New Lebanon Avenue, in addition to 21 on William Street, which intersects it.
The Board of Selectmen also received an update from Ian MacMillan, the town's harbor master, who said it would cost $2 million to $2.5 million to dredge the mouth of the Mianus River and $8 million to $10 million to dredge Greenwich Harbor, based on new figures from the U.S. Army Corps of Engineers.
"If we're able to recover our harbors, that would be stunning, just stunning," MacMillan said.
The selectmen also discussed the framework of a 10-year lease extension with Abilis, which was formerly known as ARC of Greenwich, to maintain a group home on the Pomerance property in Cos Cob.
There is a ongoing debate on whether the renewal of the $1-per-year lease requires the approval of the Representative Town Meeting.
Town Attorney John Wayne Fox told that selectmen that any time town property is conveyed, final authority rests with the RTM.
But Town Administrator John Crary suggested that the renewal is automatic so long as there are no changes to the terms of the lease and Abilis wants to remain on the property, which it does.
"Personally speaking, I think it's an excellent use of the facility," Tesei said. "I think it's a wonderful organization."
The selectmen, who are expected to take up formal language of the lease renewal at their Aug. 9 meeting, voted 2-1 to refer the item to the Planning and Zoning Commission for municipal improvement review.
Selectman Drew Marzullo cast the lone dissenting vote, saying that Abilis serves a valuable purpose for the community and shouldn't have to go through a protracted renewal process and red tape.
"This is a waste of time, in my opinion," Marzullo said. "I don't think they should have to go through this process."
neil.vigdor@scni.com; 203-625-4436; http://twitter.com/gettinviggy
