MANCHESTER – Mayor Ted Gatsas tipped a 7-7 tie vote in favor of an amended contract with developer Richard Danais, releasing his realty company from his pledge to build a new fire station on Hackett Hill.

Aldermen Patrick Arnold, Joyce Craig, Ron Ludwig, Ed Osborne, Garth Corriveau, Dan O'Neil and Joe Kelly Levasseur voted against the new contract.

Danais' company Danais Realty Group and the city entered an agreement last year to build a new fire station on Hackett Hill in exchange for a 123-acre portion of undeveloped land in the Northwest Business Park off of Hackett Hill Road. Since then, Danais has struggled to find financing for the more than $2 million station. Although the aldermen had questioned Danais about the slow pace of the project, objection did not heat up until his plans to build a shipping and warehousing hub stalled and was replaced by a private prison proposal.

The amendment to the purchase-and-sales agreement releases Danais from his responsibility to build a fire station. In return, he would pay $2.6 million for the land, with an interest rate of 6 percent. No payments would be required for the first two years, but interest would accrue. Danais would have until 2018 to pay it off. The city would also no longer have to pay Danais the previously agreed upon $225,000 for road repairs the developer made in the park.

The deal frees up the city to build a fire station with city funds.

Those opposed questioned why the city would enter into an adjusted deal instead of taking Danais to court.

“We should take him to court and get out of this bad contract,” said Craig. “What has he showed us that makes us believe he is going to fulfill the modifications before us? Nothing.”

“I believe the terms of this amended contract are friendly to the developer,” said Corriveau. “We need to say to Mr Danais you have 60 days, you have 90 days. Start digging. I don't know why this board is not taking this course.”

But those who favored the new deal said it allows the city to move on from what they admitted has proven to be a bad deal for the city.

Alderman Patrick Long said the contract protects the city if Danais goes bankrupt or if he stops paying, allowing the city to get its land back under the terms of the contract.

“Telling Danais you have 90 days isn't going to do anything,” said Long.

Arnold requested the item return to the board in two weeks for reconsideration under the rules of the board. At that time, the aldermen will again vote on the item.