Ely Center of Contemporary Art Sale/Leaseback FAQs
On April 1, ECOCA will transition from being an owner to a tenant of the 51 Trumbull Street building, under a lease with Capasso Enterprises that extends through June 30, 2025.
How did this development come about?
In 2022, ECOCA joined with Capasso Enterprises in an agreement to purchase 51 Trumbull Street from ACES/Educational Center for the Arts. ECA, an alternative educational school system in New Haven, purchased the building 7 years earlier but ultimately found it was unsuitable for their needs. ECOCA was fortunate to forge this arrangement via a loan agreement which carried a low interest rate for its first two years, as it allowed ECOCA to keep the building in service to the New Haven arts community.
Under the terms of the purchase/mortgage, Capasso Enterprises has the right, effective Spring 2024, to end the loan.
Since 2022, interest rates have risen substantially.
Now, Capasso Enterprises needs capital to help fund a large project the City of New Haven has just approved that they will undertake on River Street.
Capasso’s need to raise capital under current interest rate conditions precipitated their decision, which ECOCA was recently made aware of.
What happens next?
With the assistance of outside legal counsel, ECOCA has negotiated a 15-month lease agreement that provides for continued use of the building through June 30, 2025.
During this time, Capasso will conduct feasibility studies that may allow it to obtain zoning relief to turn the building into apartments. For the next 15 months, ECOCA’s galleries will continue to operate as before, and our Spring Keyhole Studio residency pilot will take place as planned with a new cohort of artists whose work will be exhibited June 16-August 4th.
Our new lease gives ECOCA the “right of first refusal” to match any offer that Capasso receives to purchase the building. This provides us the opportunity of purchasing 51 Trumbull should we be able to raise the funds.
ECOCA is forming an Ad Hoc Real Estate Advisory committee that will pursue two tracks of inquiry. One track will determine the feasibility of raising the funds to purchase the building again and create the necessary operating endowment to be able to care for it.
The other track will work to identify other suitable and affordable spaces in New Haven where our activities can continue. We look forward to forging partnerships and collaborations with interested real estate developers with empty storefronts, nonprofits with swing space, and the City of New Haven to make space for artists and audiences that strengthen the cultural fabric of our community.
How can I help? Who is the contact for more info?
We welcome your suggestions and questions regarding both tracks. Please click here to learn more about how you can help regarding the Facilities search. If you are interested in learning more about Board service, please contact our Nominating Committee Chair, Dan Burns, dburns@nhlegal.org