The Economic Development Commission held a regular meeting on Tuesday, May 15, 2012, in meeting room 3 at the Municipal Center, 3 Primrose Street, Newtown, CT 06470.
The meeting was called to order by Co - Chair Donald Sharpe at 7:06pm and Walter Motyka seconded the motion.
PRESENT: Co – Chair Donald Sharpe, Vice – Chair Walter Motyka, Martin Gersten, Joseph Humeston, Joseph Tarshis, Elana Bertram, Jean Leonard, Bob Rau
Absent: Thomas Murtha and Co – Chair Margaret Oliger
Also Present: Elizabeth Stocker, Director of Economic and Community Development, Phil Clark President of Claris Construction
Acceptance of Minutes: Upon motion of Martin Gersten, the minutes of April 17, 2012, seconded by Walter Motyka and unanimously accepted as presented.
Public Participation and invited Guests:
Phil Clark, Claris Construction-
Phil Clark is a resident of Newtown, and President of Claris Construction a local construction company. Currently, office space is being leased at 153 South Main Street and the lease is going to be up in 2014. The company approached Liz Stocker, Director of Economic and Community Development about relocating to Fairfield Hills which in turn would possibly influence others that are interested in development. The building that is proposed for the relocation is Woodbury Hall which is the building behind the security office at the entrance of Fairfield Hills.
The proposal is to demolition the building and abatement because unfortunately the building cannot be saved, and use the same method as the Newtown Youth Academy with brick process and concrete in order to keep the design and architecture relative to the other buildings within the complex. Trying to make the building a sustainable building by using solar panels, geothermal heat and having super insulation. The first floor would mainly contain retail such as a donut shop, a yogurt place, and the end unit would contain a bank. The top two floors each containing 10,000 square feet would basically contain all office space. Claris Construction would have one half of the available space which would leave about 5 addition suites available for other professionals. Phil is very eager to build the
building in Newtown because there are other towns and locations available, but he is a resident of Newtown and would like to see the growth and developments influencing a jump start in Fairfield Hills. Also, in the proposed lease was the maintenance of the island in front of the building and that Claris maintain it themselves with the permission from the town. The Fairfield Hills Authority has formed a subcommittee to negotiate a lease between Claris Construction and the Real Estate agent. What Claris is responsible for is remaining sight work, utilities, demolition of the building, and abatement. Standard procedure of the town is to demolition the building themselves but since the town funds are scarce, Claris Construction proposed that they take on the sight work up front which would cost approximately cost around $800,000 in return for a very long term lease and not pay rent for certain length of time. The abatement would then approximately cost the amount of the rehab.
The rough estimate of the cost was drafted which outlined an estimated cost of between $175-250 a square foot in value which would have a market rate of 5.25 to 7.5 million dollars. This value would relate to $3.7 million in assessment and would equate too roughly between $92-130,000 dollars in taxes a year based on 25 mills. This would in turn be the amount of abatement. The proposed abatement is a tapered system which abates taxes at 100% the first year then 80%, 60%, 40%, 20% over a phase in process. The one issue is that the program indicates the commission can abate on a sliding scale for a period of 3 years only and the sliding scale is based on the investment money.
Marten Gersten made a motion to accept the proposal given by Phil Clark of Claris Construction subject to negotiation with the Fairfield Hill Authority which includes his bearing of cost to demolition and remediation which includes an improvement of roughly $5.5 Million. As well as, support a tax abatement over 5 years at 20% intervals. Joe Humeston seconded the motion which was unanimously passed.
Reports:
Director of Economic and Community Development-
Liz Stocker outlined in her monthly report that there is continued activity and several project that were started in December are still alive and well. Potential for another interested party for the Children’s Center which will attend the meeting next month. 50 acres of land approved for lease to have a community garden that volunteers will tend to and care for. Elana Bertram brought up the two vacant buildings on the corner of Church Hill Road and The Boulevard and if there was plan for their use. Part of the marketing is the problem that there are two dwellings attached to the property that are unable to be subdivided. There have been a couple offers for retail space but the borough only allows professional office.
Hawleyville Sewer Study Project-
Walter did an excellent job on outlining the history and present status. The options to be considered are outlined and the alternative approach. A decision was made because of all the factors working against the approach the option of putting project on the back burner for the time being. Walter brought in a map outlining the Bethel, Danbury, and Newtown sewer line and the progress. The anticipated developments that have already been approved would tie into the existing sewer line along with high density businesses and make use of the sewer system. Also, to go along up 84 to pick up more commercial and industrial business type operation to support this system and promote more business growth. The master plan in the long run was to pay for it which is a $2 million dollar investment plus and
provide the line being extended. Fred Hurley is currently conducting a study which has a deadline of June 4. Need to figure out the requirements of getting the job accomplished and who is going to pay for the sewer connection. Desirable spot for new development because of the location and how close the accessibility is to the main interstate, and it would have the least impact on the center of town. Commission needs to back the zone change from M-2 to M-2A in order to bring in potential development that is seeking such a desirable location which would possible have sewer hookup. The key issue is if a buyer were to take the land and depending on the density would have to have own sewage plant with leeching fields and systems on sight which would use up a large portion of the land. Need to look at a cost to what it would be to do it on sight and how much land would have to go away to be supportive of business versus putting in a dia digestive system and a high pressure
line to connect to existing system. A gravity system will be used. The existing transmission line ends roughly where Mobile Home Park is on Mount Pleasant Road. The Planning & Zoning commission is proposing to allow for multifamily housing in the area that could open up some of the properties on the South side of Route 6 and in that specific area. The Grace Christian Fellowship they would like to sell a parcel of land on Hawleyville Road for multifamily housing with roughly 60-70 units, but P&Z proposed somewhere between 4-6 units per acre. The multifamily housing such as Liberty, The Homesteads, etc. met the criteria for economic development because of the amenities at the complexes which created a good quantity of jobs. There are currently projects that are approved but not yet underway such as the parcel next to Hollandia’s which is approved for 18,000 square foot of medical office. There are two other projects for office use and mixed use that are roughly
20,000-25,000 square feet. Liz Stocker also brought up drawing up a municipal development plan for the piece of property on the corner of route 6 and Hawleyville Road when it designates land for the development by the town. The property is currently for sale for $14 million dollars and the board discussed that if the sewer line is installed the value of the property will also increase which will make the property more marketable. The board also discussed if the buyer offered more money up front in order to pay for the sewer installation and then charge the rights to surrounding parcels that are hooked up to the system as warranted. Mr. Sharpe brought up that the commission needs to make a decision as far as the position the commission has on the sewer installation plan. If the sewer system was installed every parcel would have an assessment but would have the option of connecting to system and paying a usage fee. Mr. Sharpe felt the commission was not at a clear point yet to
make a decision based on the information gathered based on that the commission doesn’t favor anything other than the concept of what is in favor and what isn’t in favor. Liz Stocker suggested that instead of stating that the whole project be postponed reword the writing to put in a more positive light that commission supports project dependent upon what the commission decides. Marten Gersten suggested that all commission members review the position statement and send suggestions to Walter for him to input within the paper and then redistribute by e-mail. Mr. Gersten asked whether the town ever had any special revenues that were bonded, but Mrs. Stocker suggested that it should be input as an alternative of special revenue bonding and tax incremental financing. Mr. Sharpe stated that position paper needs to be submitted by June 4 and whether a special meeting should be called to vote on the revisions and final draft. A special meeting was scheduled for Tuesday, May 29,
2012 at 7pm to make a final vote. Final comments and revisions need to be submitted by Monday May 21, 2012 to Walter Motyka.
EDC Road Map- No progress at this time.
Small Business Workshops-
Elana Bertram attended three out of the four small business development center workshops that were over two weeks and were on Tuesday and Thursday nights at the High School. The workshops were very well attended between 10-20 attendees at each of them and a variety of people from different areas. Elana pointed out that they were high quality seminars, and had a huge amount of resources available for business owners. It explained the different services available that are funded in part by the federal small business administration and funded in part by private donors and nonprofit organizations. Margaret Oliger attended two of the workshops and Liz Stocker attended one of the workshops. Liz pointed out how she has the attendance list to the workshops and that a possible e-mail can be sent out to the
people that attended to reach out to and do a follow up. Joseph Tarshis also volunteered his resources if they are needed.
Small Business Incubator Project-
Mrs. Stocker also shared that Sacred Heart students are going to hold some focus group meetings at the Senior Center next Thursday night. Grouped all of home businesses into different sections and pulled out various groups such as culinary & home baking, marketing & graphic internet based, and professional businesses. Each section will be roughly an hour and will pose the same questions to each focus group, and that project is going to wrap up on June 26, 2012.
Brownfield Updates-
Mr. Gersten submitted his comments on the Brownfield Updates. Mr. Sharpe questioned what the next step was going to be. Mrs. Stocker suggested that presentation should be made to the First Selectman and then the Board of Selectman, but first consults with town attorneys to verify if it complies with the town Charter. Mr. Gersten suggested the first thing is the position needs to be put on commissioner’s letter head and then forwarded over the Pat Llodra, and then have a meeting as far as the suggestions as to what should be done. Mr. Gersten is going to forward it to Mrs. Stocker who will put it on the commissioners letter head and then forward it over to Mrs. Llodra. Mrs. Stocker wanted to ad that the deadline for the Sand Hook Auto and Marine for entering the property to conduct and
environmental review has passed. Mrs. Stocker has received two LEP’s who have agreed to do the next phase of discovery that is needed. Batchelder has finally made connections with Brownfield partnership and two grants that run parallel and Mrs. Stocker talked with Matt D’Amico for an estimate.
All Other-
Joseph Tarshis has put the last person in place to create an executive board for an entity of Best of Newtown.Org and it has an IEN number and is registered nonprofit. Will have first meeting sometime in June and then will bring back all committees and that all registrations will stay in place until next year. Those funds from registration will be allocated to start identity creation on marketing and get a nice head start. Mr. Sharpe pointed out how an ad is going to be placed in The Newtown Bee for an Economic Development Coordinator as a part time consultant and funding is available in budget. Mr. Motyka has been approached by Ted Krenick about the potential for an Arts & Crafts Center and the old storage building is being evaluated. Mr. Motyka did get estimated last year on the cost of a new
roof and new windows. Mr. Motyka and Mr. Krenick will meet next week and do an inspection of the building and it was also brought up the idea of incorporating a senior center as well. Mrs. Stocker mentioned how she had spoken to someone from the state last week about a possible environmental review of the building as well. Mr. Motyka also has the previous environmental report of the building.
New Business: NA
Executive Session: NA
Adjournment: Motion to adjourn the meeting at 9:18pm by Joseph Tarshis. Elana Bertram seconded the motion which unanimously passed.
Mindy Kovack, Clerk
MOTIONS
The Economic Development Commission held a regular meeting on Tuesday, May 15, 2012, in meeting room 3 at the Municipal Center, 3 Primrose Street, Newtown, CT 06470.
PRESENT: Co – Chair Donald Sharpe, Vice – Chair Walter Motyka, Martin Gersten, Joseph Humeston, Joseph Tarshis, Elana Bertram, Jean Leonard
Also Present: Elizabeth Stocker, Director of Economic and Community Development, Phil Clark President of Claris Construction
Not Present: Thomas Murtha and Co – Chair Margaret Oliger
Co – Chair Don Sharpe called the meeting to order at 7:06pm and Walter Motyka seconded the motion.
The minutes from the previous meeting held on April 17, 2012 were approved as submitted. Moved by Martin Gersten and seconded by Walter Motyka. Unanimously passed.
Martin Gersten made a motion to accept the proposal given by Phil Clark of Claris Construction subject to negotiation with the Fairfield Hills Authority which includes his bearing of cost to demolition and remediation which includes an improvement of roughly $5.5 Million. As well as, support a tax abatement over 5 years at 20% intervals. Joe Humeston second the motion which unanimously passed.
Motion to adjourn the meeting at 9:18pm by Joseph Tarshis. Elana Bertram second the motion which unanimously passed.
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