TOWN COUNCIL MAJORITY OFFICE
TAX POLICY COMMITTEE
SEPTEMBER 23, 2008
PRESENT William P. Horan, Jr., Chair; Councilors Marc Weinberg and Eric Thompson
ALSO Melody Currey, Mayor
PRESENT Michael Walsh, Finance Director
Jeanne Webb, Development Director
Susan Skowronek, Member of the Economic Development Commission
Donald Pitkin, Town Council Minority Leader
Barbara Rossi, Town Councillor
Jeffrey Hoffman, Hoffman Auto Group
CALL TO ORDER
Chair Horan called the meeting to order at 6:25 p.m.
APPROVAL OF MINUTES
February 19, 2008
MOTION By Eric Thompson
seconded by Marc Weinberg
to approve the minutes of the February 19, 2008
Motion carried 3/0.
OPPORTUNITY FOR RESIDENTS TO SPEAK
Review and Approve Request for Proposals re:
1. Tax Lien Sales – Mobile Home Delinquencies (36)
2. Tax Lien Sales – Real Property ($821M)
Mike Walsh, Finance Director, noted that the Town Council has not yet referred this matter to the Committee, but it will be on the next Town Council agenda on October 7, 2008 for either a referral to the Tax Policy Committee or for action by the Council acting as a whole.
MOTION By Marc Weinberg
seconded by Eric Thompson
to remove from the agenda item 5.C., Review and Approve Request for
Proposals re: Tax Lien Sales – Mobile Home Delinquencies and Tax Lien
Sales – Real Property.
Motion carried 3/0.
OLD BUSINESS
None
NEW BUSINESS
Hoffman Motors Business Incentive
Jeanne Webb, the Development Director, gave a brief introduction regarding a business incentive being sought by the Hoffman Auto Group and explained that the Economic Development Commission (EDC) has supported a three-year tax assessment freeze for the Hoffman Enterprise. Jeffrey Hoffman discussed the Hoffman history in East Hartford, and the longstanding practice (4th generation) of his family’s car dealerships on Connecticut Boulevard for seventy years. Mr. Hoffman also discussed the effect of the economy on the car industry, and the fact that the Hoffman Auto Group has spent in excess of $10M on its dealerships on Connecticut Boulevard. Mr. Hoffman explained that he is seeking a tax assessment freeze for five years, and not a tax reduction. Five years is the amount of time experts say it will
take for the auto industry to bounce back. He does not want to reduce his payroll or employment levels (263 employees), and, in fact, the EDC made this a requirement for the award of the tax assessment freeze recommended by them. He also noted that the businesses pay over $8M in sales tax to the State of Connecticut, as well as real estate taxes and personal property taxes to the Town of East Hartford.
Documents provided by Ms. Webb show that the Hoffman businesses (herein after “Hoffman”) paid in the three years of 2005 through 2007 an average of $177K in real estate taxes, $32K in personal property taxes, and $40K in motor vehicle taxes, for a total of approximately $250K per year. A general discussion of the $10M of Hoffman improvements followed.
Councillor Pitkin pointed out that the EDC recommended only a three-year tax assessment freeze, not five-year. Ms. Webb noted that the incentive package is within state guidelines. Mr. Hoffman noted that his area on Connecticut Boulevard is the “gateway to East Hartford.” Councillor Thompson opined that the situation becomes a slippery slope for other business owners to request a similar tax incentive package, and expressed concern with what would happen once the incentive package expires. Mr. Hoffman said his business and family is on Connecticut Boulevard to create a beautiful gateway to the town with well-appointed buildings, employment opportunities for 263 workers, and will continue to pay taxes, with the hope that the business over time will grow and expand.
Ms. Webb spoke in general terms that the tax savings to Hoffman would be approximately $70K-$80K per year. Councillor Weinberg noted the family’s seventy years on Connecticut Boulevard and the stellar reputation of the Hoffman Auto Group. Mr. Weinberg also expressed grave concerns regarding the economy and its effect on businesses in the next few years. Ms. Webb noted that the five-year assessment freeze would also be within the state guidelines.
Susan Skowronek, a member of the EDC, and Barbara Rossi, one of the Town Council’s representatives to the EDC, spoke in support of the five-year package. Both also noted that Hoffman Auto Group has always been a good business citizen and active in the community.
MOTION By Marc Weinberg
seconded by Bill Horan
to recommend to the Town Council to award Hoffman Auto Group an
assessment freeze for five Grand List years, beginning the next taxable
year, consistent with an agreement to be drafted by the Corporation
Counsel with provisions regarding the current employment levels being
maintained, and containing appropriate claw-backs regarding tax savings
in the event of any breaches of the incentive agreement.
Motion carried 2/0. Abstain: Thompson
Tax Lien Sales:
150-174 Park Avenue, 141 Prestige Park Road
Mike Walsh initiated a general discussion regarding 150-174 Park Avenue and 141 Prestige Park Road, both of which parcels are owned by David Caron. Mr. Walsh requested permission to contact the five bidders from the June 4, 2008 Request for Proposal (RFP) and notify them that these two parcels are available. Assistant Corporation Counsel Rich Gentile has opined, per Mike Walsh, that this is an acceptable procedure, without the need for a new RFP.
MOTION By Marc Weinberg
seconded by Eric Thompson
to recommend that the Town Council direct the Administration to request
bids from the bidders from the June 4, 2008 RFP for the parcels located
at 150-174 Park Avenue and 141 Prestige Park Road.
Motion carried 3/0.
333 Roberts Street
Mike Walsh initiated a general discussion on the property at 333 Roberts Street (Days Inn). Mr. Walsh noted that a receiver has been appointed and that the property is scheduled to be sold. Mr. Walsh requested permission to contact the five bidders from the June 4, 2008 Request for Proposal (RFP) and notify them that this parcel is available. Assistant Corporation Counsel Rich Gentile has opined, per Mike Walsh, that this is an acceptable procedure, without the need for a new RFP.
MOTION By Eric Thompson
seconded by Marc Weinberg
to recommend that the Town Council direct the Administration to request
bids from the bidders from the June 4, 2008 RFP for the parcel located at
333 Roberts Street.
Motion carried 3/0.
ADJOURNMENT
MOTION By Eric Thompson
seconded by Marc Weinberg
to adjourn (8:17 p.m.)
Motion carried 3/0.
cc: Town Council
Mayor Currey
Mike Walsh, Finance Director
Jeanne Webb, Director of Development
| 
