PUBLIC HEARING MINUTES
December 6, 2010
7:15 p.m.
South Windsor Council Chambers
PURPOSE: To receive citizen input on the Appropriation of $15,000,000 for the Financing of The Connecticut Studios Project and Authorizing the Issuance and Sale of not Exceeding $15,000,000 Special Obligation Revenue Bonds of the Town of South Windsor, Connecticut to Meet said Appropriation
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 one hundred and seventy (170) people present in the audience.
Mayor Pelkey asked if there was anyone from the public that would like to speak.
Mr. Roy Normen, 158 Homestead Drive stated that everyone is in favor of the project and moving ahead with it but there are a few concerns with the financing. One is that the Town is giving up 100% of the taxes on the property for a certain period of time and secondly there are conditions that have to be satisfied with this TIF financing, and it seems that a lot of these should be satisfied before the Town moves ahead with authorizing the TIF financing. The other thing that should be looked at is the interest rate for TIF financing which is very high and as a municipality there are interest rates that could be used that are much lower.
Mr. Peter DeMallie, 35 Peterson Way came forward and voiced his support for the TIF financing with reasonable terms and conditions. In order to sell the bonds it has been recommended that there be up to 100% of the real property taxes which would go towards the retirement of the bonds. There are other revenue sources that the Town will have such as personal property taxes, motor vehicle taxes, building permits fees, electrical permit fees, etc. The Town presently collects a marginal amount of money for this vacant land and with the development of this project the Town certainly will have substantial monies. The risk factor is outweighed by the tremendous up side of this project. Urged the Town Council to move forward with this project because it should be a significant economic impact to the Town and jobs are
needed.
Mr. John Livingston, 315 Ferry Lane stated that he is in favor of the TIF financing and feels the project will bring jobs, positive response and revenue to the community. There are a lot of individuals that need these jobs.
Ms. Cindy Beaulieu, 19 Cody Circle said she has been before the Council previously speaking about the concerns she has regarding the TIF financing and those concerns have not gone away. TIF financing is a great source of financing and it can be used in the market place at times when the economy is good. When the economy is struggling and you have a transaction like this one where it is so tightly capitalized and little equity there is a concern about using TIF financing. If general obligation bonds were used for this project the interest rate is half if not more than half, than the interest rate for TIF financing. Biggest concern tonight is that the TIF financing will be voted on tonight with limited information. A feasibility study should be done.
Public Hearing – TIF Financing for CT. Studios
December 6, 2010
Page 2
Mr. Randy Reagan, 99 Talcott Ridge Road came to speak in support of the financing and felt the Town Council should find a way to make this project a reality.
Mr. Robert Hertel, 20 Stephanie Lane said he is in favor of the way this project is being financed as well as the project itself. This is an opportunity for income to come into the Town and jobs.
Mr. Philip Kenny, Connecticut Representative to Local 52IATSC with the Studio Mechanics. We actually work in the studios and shoot the movies. This project is about the jobs and the jobs will come. Film/Video is the second largest export that this country produces. There are a lot of people employed in this business.
Mr. Robert Gagnon, 215 LeFoll Boulevard came forward and stated that he is in full support of this project which will help build the economy in South Windsor and the State of Connecticut.
Mr. Al Hare, President and property owner at 260 Ellington Road stated he is in favor of the financing and in total support of the project. Need jobs going forward and the community and the State need this project.
Mr. Steve Wagner, 181 Tumble Brook Drive came forward speaking on behalf of himself and his wife. Mr. Wagner stated that he and his wife are very supportive of this project which can provide an opportunity for the Town to improve its government financing as well as improve the housing picture in this Town. Encourage the Town to act on this tonight.
Mr. Steve Andross, 1583 Ellington Road stated that he is in favor of this project.
Mr. Roger Thorpe, 2916 Ellington Road came before the Town Council and stated that he is in favor of the financing. The citizens of South Windsor deserve this opportunity to build this facility which should be done through the PLA and through the organization of Organized Labor who does high quality.
Mr. Tom Lines, 43 Wedgewood Lane stated that he is concerned that this is going to keep going on and would like some action on this tonight.
Mr. Scott Antosik, 216 Smith Street stated that this is a great project for the Town and State. There is an opportunity here and the Town Council should take advantage of what is presented and approve it.
Mr. Tom Berstene, 95 Rimfield Drive came forward and stated that he would like to see this project happen just like everyone else. There is almost $500,000 in projected revenues from permits supporting this years budget so it would be nice to have some action but Mr. Berstene stated that he is also concerned and does not want to rush into something without making sure this is the right deal. Would like to support taking a look at using General Obligation Bonds.
Mr. Chuck Morris from East Windsor, Connecticut stated he is the past President of Local 84 and member of Local 52 Studio Mechanics in New York City. This project will bring other businesses to the Town which will feed this project. Hopes the Town Council considers the impact this project will bring to the whole area which will be a positive changes to the area.
Public Hearing – TIF Financing for CT. Studios
December 6, 2010
Page 3
Ms. Diane Behler, 30 Willow Street came forward and urged the Town Council to support the TIF financing for this project.
Ms. Diane Hawkins, 703 Dzen Way came before the Town Council explaining that she is a member of the Connecticut Studios Committee and has a very good understanding of the TIF financing. The financing and this project is a win win situation for everyone.
Mr. Chuck Oates, Cinnamon Springs explained that he is an Employment Consultant with an Entertainment background. He stated he is relying on the experts with all of the details. The Town Council needs to take a chance with this project.
Mr. Bart Pacekonis, 39 Blue Ridge Drive came forward to support the TIF financing and felt this project should move forward.
Mr. Galligan, Town Manager came forward with additional information for the Town Council members who wanted an explanation of the difference of TIF Bonds versus General Obligation Bonds, as shown in attached Exhibit B. Mr. Galligan stated that he has been very conservative with these numbers. An industry study will be done by the Underwriters and a PLA Agreement will be done.
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: - 45
Those in opposition of using TIF Financing for the Connecticut Studios project: - 3
The public hearing was closed at 7:59 p.m.
Respectfully submitted,
________________________________
Deborah W. Reid, Clerk of the Council
Public Hearing Notice – Exhibit A
Comparison of TIF Financing versus General Obligation Bonds – Exhibit B
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