TOWN COUNCIL MAJORITY OFFICE
TAX POLICY COMMITTEE
JULY 21, 2010
PRESENT William P. Horan, Jr., Chair; Councilors Marc Weinberg and Pat Harmon
ALSO Mayor Melody Currey
PRESENT Jeanne Webb, Development Director
Brian Smith, Assessor
Rich Kehoe, Town Council Chair
Eric Thompson, Town Council Minority Leader
Joe Kronen, 56 Farnham Drive
Josh Silvia, Journal Inquirer Reporter
CALL TO ORDER
Chair Horan called the meeting to order at 6:04 p.m.
APPROVAL OF MINUTES
March 30, 2010
MOTION By Marc Weinberg
seconded by Bill Horan
to approve the minutes of the March 30, 2010 meeting.
Motion carried 2/0. Abstain: Harmon
OPPORTUNITY FOR RESIDENTS TO SPEAK
Joseph Carlson, 1392 Silver Lane, the Town’s Treasurer, inquired about the possible incentives to Hoffman Enterprises.
OLD BUSINESS
None
NEW BUSINESS
Hoffman Enterprises: 600 Connecticut Boulevard
Development Director Jeanne Webb initiated a general discussion regarding tax incentives sought by Hoffman Enterprises. Assessor Brian Smith discussed the taxes on the land and on the property for Hoffman, and opined that the improvements will not be making the building(s) bigger, so the tax would/should not increase, and even revaluation should have no impact on the value. Hoffman’s plans to spend $500,000, or more, permits the Town to allow a tax abatement. Mr. Smith also explained the difference between the value of a home increasing for improvements like vinyl siding whereas commercial property values are not affected by façade improvements, such as those Hoffman intends to make. Councillor Eric Thompson noted that Hoffman’s application indicated that ten jobs would be created by the improvements;
Ms. Webb will check with Hoffman to see if the 108 employees included the ten new jobs or if it would grow to 118 and will report back to the Committee. Councillor Pat Harmon discussed the Hoffman Enterprise in Simsbury and the tax incentives offered to Hoffman there.
MOTION By Marc Weinberg
seconded by Bill Horan
to send the following resolution to the Town Council for approval as drafted:
PROPOSED RESOLUTION FOR HOFFMAN FORD BUSINESS INCENTIVE
WHEREAS, Hoffman Ford, Inc. “the Developer”, is about to undertake a renovation of its holdings in East Hartford (600 Connecticut Boulevard) Hoffman Ford (the “Project”); and
WHEREAS, the proposed cost of the Project is in excess of $1,200,000; and
WHEREAS, completion of the Project will continue to provide employment for 108 individuals; and
WHEREAS, the Town will benefit from the development of the Project, the enhancement of one of the most visible gateways of the Town of East Hartford, the prospect of new jobs for the area and increased personal property taxes; and
WHEREAS, the Town’s goals are to preserve and create jobs, create a stable long-term tax base and encourage the growth of new and existing businesses; and
WHEREAS, Connecticut General Statutes, Section 12-65b, as amended, provide the legal authority for a municipality to enter into an assessment fixing agreement for a period of 2 years based on the proposed investment in this property; and
NOW THEREFORE, the East Hartford Town Council does authorize the Mayor, Melody A. Currey, to execute a tax assessment agreement in accordance with the terms of the Connecticut General Statutes.
Motion carried 2/0. Abstain: Harmon
ADJOURNMENT
MOTION By Marc Weinberg
seconded by Pat Harmon
to adjourn (6:33 p.m.)
Motion carried 3/0.
cc: Town Council
Mayor Currey
Jeanne Webb, Development Director
Brian Smith, Assessor
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