Relax, Klondike
Road, it’s in Richmond.
They’ll get to you soon enough
They’ll get to you soon enough
By
Will Collette
The
notorious
Connecticut-based Copar Quarries have secured their third local mine site,
this time right on Route 138 in the heart of Richmond. The official address is
58-60 Kingstown Road, although those two addresses are actually the site of two
small buildings. I just found a lease Copar signed in April with Richmond
Realty to mine stone in the huge tract of land slated to become the Richmond
Commons mixed-use development.
The
plan for Richmond Commons includes just under 400 units of housing (333 apartments) plus business space. It will encompass 45 buildings and over 700,000 square feet
of residential and commercial space. If it is actually built, it will be the
largest development in Richmond’s history.
However, there is one aspect of the
lease with Copar that makes me wonder if this project will actually be carried
out.
Copar
will essentially mine the land in a way that prepares it for the developers to
build the Richmond Commons.
The lease stipulates that Copar will contour and grade the land and build permanent and temporary roads, in addition to blasting and crushing rock and excavating sand which they will sell to their customers.
The lease stipulates that Copar will contour and grade the land and build permanent and temporary roads, in addition to blasting and crushing rock and excavating sand which they will sell to their customers.
Click
here to read the lease. Click
here to read their blasting permit.
John
and Ann Marie Aiello of North Providence own Richmond Realty and its related
company, Aiello Realty. They signed a two-year lease with Copar that ends on April
30, 2015.
Copar’s
rent in the first year is $100,000. That rent rises to $150,000 in the second
year.
Copar
will be allowed to take out up to 8,333 tons per month royalty-free. After they
hit that level, they will pay the Aiellos a royalty of $1 a ton. In the second
year of the lease, Copar gets to mine up to 12,500 tons per month royalty-free,
after which the $1 a ton royalty kicks in. See pages 2-3.
In
case you’re puzzled by those royalty numbers, it basically works out to $1 a
ton for both years. If you multiply the number of royalty-free tons per month
that Copar can extract, it comes out to 100,000 tons for the first year and
150,000 tons in the second. At $1 a ton, that works out to the amount of the
rent.
In
2009, Copar CEO Sam Cocopard offered to sell gravel to Rhode Island waste
hauler Joe Vinagro for $2 to $3 a ton. Of course, at that time, Cocopard didn’t
actually have any gravel to sell and simply kept the $20,000 Vinagro paid him.
For that, Cocopard was convicted of larceny last January and is currently
serving an 18 month suspended sentence.
Is Richmond
Commons actually going to get built?
Phil Armetta (photo courtesy of Steven Devoto, Middletown Eye) |
Copar has the option to simply purchase
the property
from the Aiellos (see page 15-18) for $12 million - $3 million in cash and the
Aiellos are willing to give Copar a $9 million three-year 4.5% mortgage
so Copar can buy them out.
If Copar buys the property from the Aiellos, the deal would include “all plans, specifications, approvals, permits and licenses” for Richmond Commons, presuming that’s what Copar would want to do with the land.
If Copar buys the property from the Aiellos, the deal would include “all plans, specifications, approvals, permits and licenses” for Richmond Commons, presuming that’s what Copar would want to do with the land.
When
I saw this provision in the lease, it made me wonder whether the Aiellos are
having second thoughts about Richmond Commons. However, before they make any
further deals with Copar, they ought to have
a little talk with the Comolli family.
The
lease deal is signed by CEO Cocopard and Copar’s money man, Phil
Armetta.
Armetta’s
specialty throughout his long career – he’s now 82 – has been acquiring quarry
sites and turning them into waste disposal facilities.
The Richmond property is an attractive prospect for a large regional waste site – even more so than the Bradford or Charlestown Copar sites – because it is much bigger and far more accessible. As many area residents have noticed, there’s been a sharp uptick in the number of shiny purple Copar trucks on our area roads – I saw three of them in the span of five minutes at noon on September 20 in downtown Westerly.
The Richmond property is an attractive prospect for a large regional waste site – even more so than the Bradford or Charlestown Copar sites – because it is much bigger and far more accessible. As many area residents have noticed, there’s been a sharp uptick in the number of shiny purple Copar trucks on our area roads – I saw three of them in the span of five minutes at noon on September 20 in downtown Westerly.
Kleen Energy - an Armetta dream. A giant "recycling" plant inside an old quarry in Middletown, CT. Blew up killing six workers |
The
Richmond Commons site is right on Route 138 and practically next to the Exit
Three ramps for I-95.
A
careful reading of Phil Armetta’s history and widely varied interests also
shows that Phil has dabbled quite a bit in real estate and business
development.
That makes it possible that we could see Copar buy the property from the Aiellos, mine it for all its worth and then build the Richmond Commons project themselves.
That makes it possible that we could see Copar buy the property from the Aiellos, mine it for all its worth and then build the Richmond Commons project themselves.
Obeying the law
On
page six of the lease, Copar is required to abide by all federal, state and
local laws, regulations and administrative rules. Violations of the law may be
viewed by the Aiellos as a breach of contract by Copar. Copar is required to
indemnify the Aiellos and carry a lot of insurance (page 7). Copar can’t bring
any hazardous waste onto the site or store any hazardous materials except in
strict compliance with the law (pages 11-13).
Richmond
Town Clerk Tracy Nelson told me that Copar has not applied for a business
license in Richmond. I’m looking forward to when Copar does that because
Richmond has a simple “bad character” provision in its town ordinances:
A. No license or permit will be issued to,
or renewed for, any person or business in arrears in any tax or assessment
levied by the town. Verification of payment of taxes and assessments must be
submitted with any application for, or renewal of, a license or permit. Payment
of town taxes and assessments shall be a continuing condition of the license or
permit.
B. An applicant for a license or permit
must submit with the application or renewal an affidavit of compliance. The affidavit shall state
that the business is
currently in compliance with all town, state, and federal statutes, ordinances,
and regulations. Compliance with all town, state, and federal statutes,
ordinances and regulations shall be a continuing condition of the license or
permit.
Unfortunately,
Richmond does not require every business to apply to receive a business
license. I’ve asked for a legal opinion on whether Copar is required to get a
license. If they do, they will need to demonstrate they are in compliance – and
remain in compliance – with federal, state and municipal law.
If they submit an affidavit, they will need to admit their dozens of citations from the federal Mine Safety and Health Administration, plus their EPA, DEM and Town of Westerly violations. Most of those are still pending.
If they submit an affidavit, they will need to admit their dozens of citations from the federal Mine Safety and Health Administration, plus their EPA, DEM and Town of Westerly violations. Most of those are still pending.
An
honest reciting of their violations should lead to a denial of a business
permit from Richmond. If they don’t disclose their track record on the
affidavit, they could not only be denied the permit but could face criminal
charges if the Attorney General took an interest.
Copar’s amazing business history continues as they make yet another major acquisition
despite the criminal past and failed businesses of their management team.
Somehow, Copar seems to come up with the money to add more land and put more
trucks on the road.
In
my opinion based on my research, there are only two ways this can end. Either
the whole mess will collapse as have Sam Cocopard’s previous businesses,
leaving out-of-pocket creditors wondering where their money went.
Or
we could see Phil Armetta’s business model of taking old quarry sites and
turning them into waste sites become a major industry for the southwest corner
of Rhode Island.