DARIEN — The due diligence period for the town’s $103 million purchase of Great Island has been extended to March 6, 2023 and the closing moved to April 20, 2023 — adding more than seven months to the original closing date of Sept. 5.
First Selectman Monica McNally announced the extension at Monday’s town council meeting, just days after initial 75-day due diligence period ended.
“On Thursday, August 4th, the town and the Steinkraus family mutually agreed to amend the purchase contract, extend the due diligence period and take the necessary steps to address the outstanding issues and complete the purchase that will result in making Great Island available to all of our community for years to come,” she said. “The town remains excited about the purchase of Great Island and looks forward to finalizing its work in closing the transaction as soon as possible,” she said.
McNally said that over the past few months Darien officials, staff and consultants have been “hard at work, completing due diligence, reviewing documentation and land records and seeking to resolve any issues necessary to complete the acquisition of Great Island.”
At the June 27 RTM meeting, when Darien’s six districts approved the purchase, McNally said that due diligence would include environmental, operational and legal issues — but in an email to CT Examiner on Tuesday, she did not specify what types of issues had arisen.
“Our due diligence investigations have uncovered some important issues that must be adequately addressed before the Town can take ownership,” she wrote. “We and Sellers are working on those issues, and an extension of the due diligence period to March 6, 2023 and the date of closing on April 20, 2023 has been agreed upon to provide time to address them.”
There was no public comment on the time extension at Monday’s council meeting.
The town’s deposit on the property, set for 12 days after the June 27 RTM meeting, proceeded as originally planned, McNally’s office said in an email on Tuesday.
“The town put down a deposit of $1,030,000 and there are no changes to the terms. Due diligence will continue on all aspects of the property,” the email stated.