AVTECH Move OK'd After DEM DelayDeal Might Have Fallen Through Had DEM Not Agreed On Contamination
WARREN - AVTECH, a Newport-based computer technology company, is scheduled to close a purchase and sales agreement by the end of the week to buy the Cutler Mills building, despite a regulatory hurdle that nearly scuttled the firm's planned move to Warren.
AVTECH president Michael Sigourney, who announced his intention to purchase the mill earlier this year, said construction should begin by the new year, and employees should be moving in by March. It's good news for the business owner, whose plans to move in had previously been stymied by the state Department of Environmental Management (DEM). He said that as late as last week, the sale was close to falling through as DEM had not certified the property free of contamination. Fortunately, he said, that certification ended up coming through.
"DEM could have blocked the sale of the property," said Mr. Sigourney.
According to Alan Crisman, executive director of the Mount Hope Enterprise Zone, a portion of the property housed a car dealership and welding business before it was purchased by Dave Wescott, the former owner. He worked with DEM to clean up contamination, and inspections revealed the site was safe. However, DEM required quarterly inspections at the site to monitor levels of hazardous chemicals.
"It's an old mill. There were things abandoned and Dave cleaned it up. [DEM] just wanted to be sure there was no risk to the community," said Mr. Sigourney.
Mr. Crisman added that DEM's biggest environmental concern was an underground storage tank filled with toxic chemicals located in the center of the property. DEM had required that it be remediated.
Though process was being made, AVTECH's move would have been blocked if DEM was still conducting inspections on the property by the time the purchase and sales agreement expired.
"If we had waited a week, [AVTECH] would have been gone," said Mr. Crisman.
Mr. Crisman, who believed Warren would have lost an asset if AVTECH was not able to move in, spoke to DEM officials and negotiated a solution; DEM issued the necessary certification last Thursday, Dec. 11.
"The property does not need any more work," said Mr. Crisman.
Mr. Sigourney expects to close the purchase and sales agreement with Coastway Credit Union and Ocean State Business Development Authority by the end of the week.
But more hurdles will have to be jumped over before the company can rest easy. To begin construction, Mr. Sigourney will have to meet with town officials to get building permits.
WARREN - AVTECH, a Newport-based computer technology company, is scheduled to close a purchase and sales agreement by the end of the week to buy the Cutler Mills building, despite a regulatory hurdle that nearly scuttled the firm's planned move to Warren.
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