TOWN OF SOUTH WINDSOR
WORK SESSION MINUTES
TOWN COUNCIL MONDAY, July 6, 2009
COUNCIL CHAMBERS TIME: 7:00 P.M.
1. Call Meeting to Order
Mayor Prague called the meeting to order at 7:02 p.m.
2. Roll Call
Members Present: Mayor Cary Prague
Deputy Mayor Gary Bazzano
Councillor Edward Havens
Councillor Kathryn Hale
Councillor Lisa Maneeley
Councillor Paul Oates
Councillor Keith Yagaloff
Members Absent: Councillor Kevin McCann
Councillor John Pelkey
3. Public Participation
None
4. Communications
None
5. Town Manager’s Report
None
6. Items for Discussion
- Presentation regarding TIF Financing for the Connecticut Studios (Dave Panico from Robinson & Cole presenting)
Mr. Craig Stevenson, Economic Development Coordinator for the Town of South Windsor came forward to update the Town Council on the TIF process. He explained that the Bond Council and some of the consultants will come in to make a presentation on exactly what is Tax Incremental Financing, how it works, and how it relates to the Connecticut Studios.
Councillor Hale requested that a work session be scheduled to go over some hypothetical scenarios with Robinson and Cole and/or the Municipal Development Group regarding Tax Incremental Financing.
Work Session – Town Council
July 6, 2009
Page 2
ITEM
6. Items for Discussion
A. Presentation regarding TIF Financing for the Connecticut Studios (Dave Panico from Robinson & Cole presenting) (Continued)
Attorney Dave Panico, Robinson & Cole came forward and introduced a draft resolution to the Council. He explained that this resolution allows any money that is spent prior to the bonds being issued, to be reimbursed from the tax exempt bonds with the approval of the Town Council. The bond will then be repaid with the projects revenue, not taxpayer’s money.
Answering questions from the Council, Attorney Panico stated that this practice is reasonable and customary. The type of expenses that could be incurred and reimbursed by the tax incremental financing is road improvements, storm drainage and sanitary sewer connection, infrastructure improvements, etc. In the resolution it says the Town Council authorizes the Town Manager to make reimbursements pending the issuance of the bonds, but the Town Manager is not authorized to spend any money unless the Town Council approves the appropriation. If everything goes as planned, thee bonds will be paid off in fourteen years.
Answering further questions by the Council, Mr. Stevenson explained that it is the Town Council who determines what the developer will be reimbursed for through this bond. Councillor Oates felt that some of the language in the resolution should be changed to make issues more clear.
Attorney Panico explained to the Council that if the project fails to generate the amount of taxes to pay the interest that is due or the principle that is due on the bonds, then the bond holders would have the option to foreclose if they so choose, but again, it is not an obligation of the Town. If a foreclose does happen, the property would go to Bankruptcy Court, and when the property is sold, the bond holders would get their 80% and the Town would get its 20%.
Mr. Tim Moriarty of 90 Skyline Drive came before the Town Council and voiced concern regarding the Tax Incremental Financing process.
Mr. Michael Sullivan of 24 Jared Court came forward and voiced concern regarding the need for this bonding issuance.
Mayor Prague recessed the Work Session in order to call the Regular Meeting to order and then recessed the Regular Meeting in order to finish the Work Session.
Further questions were answered and concerns were discussed.
7. Executive Session
None
Work Session – Town Council
July 6, 2009
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ITEM
8. Adjournment
At 8:15 p.m. Deputy Mayor Bazzano made a motion to adjourn the Work Session. Councillor Maneeley seconded the motion; and it was approved, unanimously.
Respectfully submitted,
Deborah W. Reid
Clerk of the Council
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