PUBLIC HEARING MINUTES
November 15, 2010
7:30 p.m.
South Windsor Council Chambers
PURPOSE: To receive citizen input on the Use of TIF Financing for the Connecticut Studios Project
Mayor Pelkey called the Public Hearing to order at 7:30 p.m.; and requested that the Clerk of the Council read the call of the meeting (a copy of which is attached hereto). There were approximately forty-five (45) people present in the audience.
Mayor Pelkey asked if there was anyone from the public that would like to speak.
Mr. Don Gonsalves, 40 Bayberry Trail came forward and stated that he is not against the project, but is totally against the method of financing. Three major changes have occurred with this project, the 80/20 split on the property taxes is now 100/0 which means the Town will not receive property taxes for 30 years; the Town has to create a special tax zone; and the road that the Town was supposed to own is now an easement. The Town Council needs to discuss these changes and make a decision regarding them. The other concern Mr. Gonsalves stated is that a lot of the project is based on State aid and there is only one letter from two years ago. When that letter was writer on February 11, 2009, the financing of the State of Connecticut were totally different then they are today. This project should not go forward
until another letter from the same organization is given to the Town telling us what the current status is.
Mr. Larry Torff, 521 Quarry Brook Drive, came before the Town Council and requested that the presentation on TIF Financing be put on the Town’s website. This project appears to be grasping at creative techniques such as TIF Bonds, special taxing district and selling tax credit to cover the underlying issue that it is under capitalized. Foregoing real estate property taxes to pay of $14,600,000 of debt plus interest at a rate of 8% imposes a huge premium on the $7,500,000 of infrastructure improvements. Mr. Torff then questioned who would be responsible to maintain the infrastructure, snow plowing the road, and who pays for lighting? Other questions posed were how much personal property and associated tax will there be it just phase I is built? It is important that the Town Council has properly expressed
concerns that there is adequate taxable real estate property to cover the payments require don the TIF bonds but equally important is the ability of the Studios owner to generate sufficient cash flows from operations of these assets to service its debt.
Mr. Mike Sullivan, 24 Jared Court, stated that the items being changed at the last minute create questions regarding the credibility of this project. The site plan which has changed was supposed to go back to the Planning & Zoning Commission, but to date has not happened. Mr. Sullivan questioned the definition of a “true public infrastructure”? Then said that if the public infrastructures were complete and the project did not go any further, who is to say the next person who develops the land will like where the public infrastructures are located. Mr. Sullivan then wondered why it would cost $7,500,000 for one road and a parking lot to be constructed. Could the Town sustain two hotels, one proposed for this project and the other proposed for Evergreen Walk? Mr. Sullivan stated that he looks
forward to receiving some answers to this various questions.
Public Hearing Minutes – Use of TIF Financing for CT. Studios
November 15, 2010
Page 2
Ms. Cindy Beaulieu, 19 Cody Circle came before the Town Council and stated that she felt that the Town would be lucky to get an 8% interest rate in light of the current financial market. This proposal before the Town Council would leave no room for error and is being done way too tightly to try to clear this market.
Mr. Peter DeMallie, 35 Peterson Way stated that he is in support of this project and feels it is very important for the Town and for the region economically.
Mayor Pelkey asked for a Straw Vote, the results of which were as follows:
Those in support of using TIF Financing for the Connecticut Studios project: - 17
Those in opposition of using TIF Financing for the Connecticut Studios project: - 8
The public hearing was closed at 7:52 p.m.
Respectfully submitted,
________________________________
Deborah W. Reid, Clerk of the Council
Public Hearing Notice – Exhibit A
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