TOWN OF SOUTH WINDSOR
WORK SESSION MINUTES
TOWN COUNCIL MONDAY, OCTOBER 18, 2010
COUNCIL CHAMBERS TIME: 7:00 P.M.
1. Call Meeting to Order
Mayor Pelkey called the meeting to order at 7:00 p.m.
2. Roll Call
Members Present: Mayor John Pelkey
Councillor Gary Bazzano
Councillor Tom Delnicki
Councillor Janice Favreau
Councillor Kathryn Hale
Councillor Kevin McCann
Councillor Cary Prague
Councillor Keith Yagaloff (arrived at 7:15 p.m.)
Members Absent: Deputy Mayor Edward Havens
Also Present: Matthew Galligan, Town Manager
3. Public Participation
Ms. Daria Plummer of 235 Orchard Hill Drive came before the Town Council to question if Orchard Hill Drive will be patched or resurfaced at least from Crestwood Drive to Avery Street as promised?
4. Communications
Councillor Hale wanted to respond to Ms. Plummer question. Councillor Hale explained that two years ago the Town Council cut the road resurfacing budget to zero. There was then a resolution to fund some road resurfacing through long term bonding this year but that resolution did not pass. Councillor Hale stated that she does not think there is any money to resurface the road and the only thing that could possibly be done are some small patches.
5. Town Manager’s Report
None
6. Items for Discussion
A. Double Sided Ballot (Registrar of Voters to be present)
Ms. Sue Burnham, Republican Registrar of Voter and Ms. Sue Larsen, Democratic Registrar of Voter came before the Town Council to explain and have the Town Council and public view the double sided ballot as shown in attached Exhibit A.
ITEM:
6. A. (Continued)
Answering questions from the Council, Ms. Burnham explained that the voters are allowed to use a privacy sleeve which will protect their ballots from being seen by others. The person who watches the machines that the ballots go in are standing approximately four feet from the machine so they can not see the way the voter is voting when the voter slides the ballot through the voting tabulator.
Answering further questions, Ms. Sue Larsen explained that most of the Town of South Windsor’s municipal elections are two sided ballots because the number of offices, so this is not the first time that the Town has had two sided ballots and the tabulator does accept the two sided ballot. Ms. Larsen then explained that the machines are touchy so if the ballot comes back out the first time, voters should just send it through a second time and chances are the machine will accept it.
B. Tax Abatement for ECHN (Craig Stevenson, Economic Development Coordinator to be present)
Mr. Craig Stevenson, Economic Developer Coordinator for the Town of South Windsor came before the Town Council. Mr. Stevenson explained that Evergreen Medical Associates II LLC is proposing a third building consisting of 29,500 square feet for Class A medical offices to be located at the Evergreen Walk property at 2600 Tamarack Avenue. The value of the building is about $6,100,000. Construction began in the Summer of 2010. The application is for a five year period with a 50% abatement which would equate to approximately $118,876.80 ($59,438.40 per year) for the first two years and 30% abatement which would equate to approximately $106,989.12 ($35,663.04 per year) for the following three years. The total value of the abatements comes to approximately $225,865.92. The total new revenue to
the Town of South Windsor over a seven year period from this project would be approximately $834,172.68 which includes the required municipal building permit fee of $91,485. The new annual revenue to the Town from this project immediately is approximately $106,098.24.
Answering questions from the Council, Mr. Stevenson explained that these numbers are estimates and would not be a true value until the building is complete, the Assessor goes out to inspect the building and the mill rate is up-to-date.
Councillor Hale stated that she feels this project should be supported by the Town Council because the two existing buildings are an asset to this community in addition to bringing in revenue for the Town. The Town will be receiving immediately personal property taxes which are not part of the abatement.
Councillor Prague stated that he would be supporting this tax abatement because ECHN presently has two buildings constructed and almost completely rented out. Building has begun on building three and giving this tax abatement for this building may lower the rent slightly in order to attract doctors or practices that are at the end of their lease that are in the ECHN
ITEM:
6. B. (Continued)
network. This could also give incentive to have ECHN build another building in this area.
Mr. Galligan explained that having these medical offices will bring in a group of people who will be working at Evergreen Walk or going to see a doctor and hopefully these same people will be shopping, eating and enjoying some of the attractions in South Windsor.
Councillor Prague added that tax abatements are investments in the future of South Windsor and future revenues. These abatements give companies an incentive to come to South Windsor.
Councillor Delnicki stated that this issue was voted down in August. If the Town Council goes forward with this abatement, the taxpayers of South Windsor will be paying $158,000 per year for three years for a building which will be constructed whether an abatement is given or not. The Town Council has never given a tax break at Evergreen Walk prior to this point and Councillor Delnicki stated that he is concerned that doing so as the building is being constructed would be opening up the flood gates for future businesses looking at Evergreen Walk. This is a fine building and a good organization, but Councillor Delnicki stated that he is bothered because the Town Council voted this item down previously and is now trying to bring it back.
At 7:30 p.m. Mayor Pelkey recessed the Work Session in order to call the Special Meeting to order. Mayor Pelkey then recessed the Special Meeting and reconvened the Work Session.
Councillor Yagaloff stated that this tax abatement was voted down in August because the building is already being constructed and a tax abatement would not be serving as an incentive. Tax abatements are incentives to bring new businesses into Town, not a reward to a business for doing business in South Windsor. ECHN is an excellent corporate citizen and they bring a lot of business to the Town, but they need to come in earlier with their request for an abatement so the Town would be giving them an incentive, not just a reward.
Answering questions from Councillor Favreau, Mr. Stevenson explained that ECHN did come in with a request prior to breaking ground on the third building. The Economic Development Commission recommended this tax abatement and it was put on the Town Council agenda as quickly as possible. The Town of South Windsor has a tax abatement policy which is called “The Tax Partnership Program” and the policy speaks to the type of business that the Town will extend benefits to, the commitment that a business would have to make to the Town and a demonstration of the economic impact that the business has. Based upon the criteria outlined in that policy ECHN meets and exceeds all of the requirements.
ITEM:
6. B. (Continued)
Councillor Favreau felt that the Town Council should feel very lucky to be having new businesses opening up in Town. This tax abatement will help ECHN to fill the building and the Town will be able to collect on the personal property taxes which will help the Town of South Windsor. Councillor Favreau stated that she is in favor of this item.
Mayor Pelkey stated that the purpose of a tax abatement program is to encourage new businesses in Town, but it goes further than that and is also to encourage expansion of businesses in Town. DST expanded twice and received tax abatements from the Town each time. Mayor Pelkey reviewed other tax abatements given to certain businesses. The Town is forgiving ½ of the taxes for a few years and if this company were not expanding here there would not be any additional taxes generated.
Councillor McCann said that unless there is something that comes as a total surprise between now and the time that this is voted on, Councillor McCann stated that he is in favor of this application.
Concillor Delnicki brought to the Council’s attention and to the public’s attention that the taxpayers will be the ones to lose revenue in the amount of $158,000.
7. Executive Session
The Council discussed holding an Executive Session to discuss the draft contract with the Ambulance Corp. It was decided that this item would be discussed at the next scheduled meeting.
8. Adjournment
At 7:44 p.m. Councillor Delnicki made a motion to adjourn the Work Session. Councillor Hale seconded the motion; and it was approved, unanimously.
Respectfully submitted,
Deborah W. Reid
Recording Secretary
Attachments:
2010 Double Sided Ballot – Exhibit A
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