TOWN COUNCIL
TOWN OF SOUTH WINDSOR
Minutes Page 1 November 19, 2012
TOWN COUNCIL – Regular Meeting
Council Chambers – South Windsor Town Hall
1. Call Meeting to Order
Mayor Delnicki called the Regular Meeting to order at 8:00 p.m.
4. Roll Call
Members Present: Mayor Thomas Delnicki
Deputy Mayor Gary Bazzano
Councillor M. Saud Anwar
Councillor Cindy Beaulieu
Councillor Ed Havens
Councillor Kevin McCann
Councillor Cary Prague
Councillor Janice Snyder
Councillor Keith Yagaloff
Also Present: Matthew B. Galligan, Town Manager
Town Attorney Kari Olson
At 8:04 p.m. Mayor Delnicki recessed the Regular Meeting. The Regular Meeting was reconvened at 9:31 p.m.
Councillor Yagaloff stated that he would be willing to postpone discussion on Item 14. P. until the next meeting.
5. Public Input
Mr. John Bassilakis, 220 Laurel Street came before the Town Council and stated that he received his revaluation and it was lower then what he had heard the average was of 15% down in Town.
Mr. Don Gonsalves, 40 Bayberry Trail stated that even with record low interest rates presently there will not be a large savings even using a 63-20 Corporation.
Michael Sullivan stated that he does not understand why the 63-20 Corporation is a priority. The Town Council should be worrying about the elementary schools at this time and using Town resources toward that. Mr. Sullivan also stated that Evergreen Walk is not done, the hotel was part of the original master plan for that development and should not be given a tax abatement when it should have been done already.
ITEM:
5. Public Input
Mayor Delnicki requested that the Council receive a full recap of the monies that have been spent to date on the Town Attorney and consultants of the Town. Also the time of Town staff that has been spent to date.
Mr. Galligan explained that Dan Marsh is paid by a grant whether he does one project or fifty projects.
Mayor Delnicki stated that the Town Attorney’s are not paid by a grant and the Town staff is not paid by a grant.
Mr. Phil Crombie, 11 Briarwood Road came forward to speak in favor of Item 14. M. which is the resolution to transfer $14,560 from the Contingency account to the Fire Marshal’s part time account. There are 2,000 + condominium units that present the Town’s greatest fire and life safety challenge. Many are older with wood frame structures. None of the complexes are equipped with fire sprinkler systems. Fires in a condominium complex could potentially impact many families. These funds would allow for the retention of the Smoke Alarm Campaign Program to continue.
Ms. Mary Etter, Director of the South Windsor Public Library came forward to inform the Council about the program that will be held at the Library on November 28, 2012.
Mr. Matthew Riley, 12 Heatherwood Drive came before the Council to speak in favor of the 63-20 Corporation and stated that the transfer of risk is key to why the 63-20 needs to remain one of the options that are open to the Council. To get rid of the operating risk is huge and would transfer to the 63-20 and not the Town and the default risk on the bonds is gone. These or both tremendous assets associated with the 63-20 that need to be further explored.
Mr. John Bassilakis, 220 Laurel Street came forward and stated that he keeps hearing about transfer of risk and he understands how that risk would be transferred to the Corporation and not to the Town. Mr. Bassilakis stated that he also understands that the Town would need to pay for prevailing wages. There is a risk to this project even though the Town may be sheltered from risk, the Town’s reputation would be affected.
ITEM:
6. Environmental Health & Safety Message
Councillor Anwar informed the Council and the public that November is Lung Cancer Awareness Month. All of the deaths caused by breast cancer, colon cancer, prostate cancer, liver cancer, kidney cancer and melanoma are less then the death caused by lung cancer. The number one cause of lung cancer is cigarette smoking.
7. Adoption of Minutes of Previous Meetings
BE IT RESOLVED that the South Windsor Town Council approves the Minutes of the following Town Council Meetings: Work Session Meetings of October 15, 2012; Special Work Session Meeting of August 23, 2012; Regular Meeting of October 15, 2012; and Special Meeting of October 25, 2012.
Was made by Councillor Havens
Seconded by Deputy Mayor Bazzano
The motion was approved, unanimously
None
9. Communications from Officers and boards Directly Responsible to Council
None
10. Reports from Standing Committees
None
11. Reports from Temporary Committees
Councillor McCann reported that the Sidewalk & Bikeway Subcommittee met with a representative of Northeast Utilities regarding the potential use of rights of ways under power lines and along side power lines for connections within the Town for bikeways and multi-use paths. Northeast Utilities has a program that allows this type of activity. The Town will need to work with some property owners that own the underlying property rights. The Committee has decided to explore the possibility of going forward with a small portion of planning these connections. The Committee will report back to the Council with more information at a later date.
ITEM:
Councillor Yagaloff and Deputy Mayor Bazzano made a motion to approve Agenda Items 14. A., through 14. E. as the Consent Agenda. Councillor McCann seconded the motion; and it was approved, unanimously.
14. New Business
* A. Resolution Appointing Wayne McKinney (D) to the Demolition Delay Committee and Postponing Consideration of this Motion until the Town Council’s Next Regularly Scheduled Meeting
BE IT RESOLVED that the South Windsor Town Council hereby appoints Wayne McKinney (D) to the Demolition Delay Committee for a term ending December 31, 2014 and postpones consideration of this motion until the Town Council’s next regularly scheduled meeting.
(Approved by Consent Agenda)
* B. Resolution Appointing Walter Fitzpatrick (R) to the Demolition Delay Committee and Postponing Consideration of this Motion until the Town Council’s Next Regularly Scheduled Meeting
BE IT RESOLVED that the South Windsor Town Council hereby appoints Walter Fitzpatrick (R) to the Demolition Delay Committee for a term ending December 31, 2015 and postpones consideration of this motion until the Town Council’s next regularly scheduled meeting.
(Approved by Consent Agenda)
* C. Resolution Appointing Peter Jennings (R) to the Demolition Delay Committee and Postponing Consideration of this Motion until the Town Council’s Next Regularly Scheduled Meeting
BE IT RESOLVED that the South Windsor Town Council hereby appoints Peter Jennings (R) to the Demolition Delay Committee for a term ending December 31, 2016 and postpones consideration of this motion until the Town Council’s next regularly scheduled meeting.
(Approved by Consent Agenda)
ITEM:
14. New Business
* D. Resolution Appointing Lavina Wilson (R) to the Demolition Delay Committee and Postponing Consideration of this Motion until the Town Council’s Next Regularly Scheduled Meeting
BE IT RESOLVED that the South Windsor Town Council hereby appoints Lavina Wilson (R) to the Demolition Delay Committee for a term ending December 31, 2014 and postpones consideration of this motion until the Town Council’s next regularly scheduled meeting.
(Approved by Consent Agenda)
* E. Resolution Appointing Arthur Utay (U) to the Demolition Delay Committee and Postponing Consideration of this Motion until the Town Council’s Next Regularly Scheduled Meeting
BE IT RESOLVED that the South Windsor Town Council hereby appoints Arthur Utay (U) to the Demolition Delay Committee for a term ending December 31, 2015 and postpones consideration of this motion until the Town Council’s next regularly scheduled meeting.
(Approved by Consent Agenda)
F. Resolution Accepting the Resignation of Stephen Lewis (D) from the Zoning Board of Appeals
BE IT RESOLVED that the South Windsor Town Council hereby accepts with regret, the resignation of Stephen Lewis (D) from the Zoning Board of Appeals, said resignation effective immediately; and
BE IT FURTHER RESOLVED that the South Windsor Town Council extends its thanks to Stephen Lewis for the time he has dedicated to serving his community by his membership on the Zoning Board of Appeals.
Was made by Councillor Yagaloff
Seconded by Councillor Havens
The motion was approved, unanimously
ITEM:
14. New Business
- Resolution Authorizing the Town Manager to Enter into a Memorandum of Understanding with the Town of Newtown
BE IT RESOLVED that the South Windsor Town Council hereby authorizes its Town Manager, Matthew B. Galligan to sign and execute a Memorandum of Understanding with the Town of Newtown for the shared use of the South Windsor Dashboard; and
BE IT FURTHER RESOLVED that Town Manager, Matthew B. Galligan is also authorized to sign and execute any other necessary documents on behalf of the Town of South Windsor.
Was made by Councillor McCann
Seconded by Councillor Snyder
The motion was approved, unanimously
- Resolution Authorizing the Town Manager to Enter into a Contract with the State of Connecticut’s Department of Social Services for a SBG Home Management Grant
BE IT RESOLVED that the South Windsor Town Council hereby authorizes Town Manager, Matthew B. Galligan to enter into a Contract with the State of Connecticut’s Department of Social Services for a SBG Home Management Grant in the amount of $13,006.00, the term of which Contract is October 1, 2012 through September 30, 2013.
Was made by Councillor McCann
Seconded by Councillor Snyder
The motion was approved, unanimously
ITEM:
14. New Business
I. Resolution Authorizing the Town Manager to enter into a Facility Sharing Agreement for a Regional Animal Control Facility with the Town’s of East Hartford and Manchester
WHEREAS, to meet common needs for animal control facilities, the Town’s of South Winsor, Manchester and East Hartford desire to enter into a Facility Sharing Agreement for the creation and ongoing maintenance of a Regional Animal Control Facility to be located in the Town of South Windsor on land owned by South Windsor; and
WHEREAS, the facility will be built and equipped through funding from the State of Connecticut as part of the Regional Performance Incentive Grant Program, administered by the Capitol Regional Council of Governments, which program is intended to foster and enhance joint provisions of municipal services across Town borders
NOW, THEREFORE, BE IT RESOLVED that the South Windsor Town Council hereby authorizes its Town Manger, Matthew B. Galligan to sign and execute a Facility Sharing Agreement for a Regional Animal Control Facility with the Town’s of East Hartford and Manchester; and
BE IT FURTHER RESOLVED that Town Manager, Matthew B. Galligan is also authorized to sign and execute any other necessary documents on behalf of the Town of South Windsor.
Was made by Councillor Snyder
Seconded by Councillor Yagaloff
Answering questions from the Council, Mr. Galligan explained there are conditions under the grant that this is a regional approach and that responsibilities should be shared by all three Towns. The grant was done through Manchester and all Town’s will be putting funds into a capital account so that the facility can be taken care of when necessary. This deal is a regional cooperation and all Town’s are trying to do something good for the handling of animals. The operating costs and capital cost may be borne more by the other Town’s because South Windsor does not have the same amount of animals that the other two Town’s have and those costs are based upon the number of animals each Town has.
(Resolution Continued on Next Page)
ITEM:
14. I. (Continued)
Councillor McCann stated that if this agreement does not compensate the Town of South Windsor and recognize the contribution that the Town of South Windsor is making to the capital of this project, then he said he could not support this agreement.
Mr. Galligan explained that the Town’s are all trying to keep costs down to the taxpayers and if this is not done, South Windsor will have to spend $2,000,000 to $3,000,000 to take care of approximately 100 dogs for a year.
Councillor McCann stated that he feels East Hartford is getting a free ride and would like to see within the agreement a capital account and have South Windsor recognized for the capital that is being put into this facility. The Town can then be compensated for that capital account which could be spread out for a number of years. Mr. Galligan explained that the regional approach is all about relationships between Town’s and there may be a time when another Town will help South Windsor out.
Councillor Havens stated he would support this resolution but still feels it is not in the right location of Town and also feels the Town of South Windsor should be getting compensated.
Mr. Galligan explained that both East Hartford and Manchester had property where a facility like this could have been built, but it would have cost approximately $2,400,000.
Councillor Prague stated that when this facility is not used any longer for an animal facility, the Town of South Windsor will still own that building and property and can use it for another purpose or sell the property.
Councillor Yagaloff felt that the policy discussions were already held regarding this project and a decision was made to use this facility for a Regional Animal Control Facility. Councillor Yagaloff congratulated the Police Department, the Chief of Police, Town staff, Town Manager and the Town Council. It is a good contract and Councillor Yagaloff felt that the Council should support this resolution.
(Resolution Continued on Next Page)
ITEM:
14. I. (Continued)
Town Attorney Olson explained to the Council that the contract anticipates a capital fund for improvements so while it is the shared animal facility, all of the Town’s that use it will share on a prorated basis for those capital improvements which will be used to maintain this property. Town Attorney Olson also explained that there are protections in the contract for South Windsor. The current term of the agreement is for 10 years.
Mayor Delnicki called for a vote on this resolution; it passed on a roll call vote of 8 to 1 with Councillor McCann voting in opposition to approval.
J. Resolution Approving Offer of a Tax Assessment Agreement with Radius Hospitality
WHEREAS, a Request for Tax Abatement has been received from Radius Hospitality, the owners of units 7A and 7G at the entrance to the new Town Center area of Evergreen Walk in South Windsor, CT.; and
WHEREAS, the Town of South Windsor’s Tax Partnership Program established pursuant to Connecticut General Statutes Section 12-65b, is intended to encourage the development and expansion of quality businesses in Town through tax and other economic incentives, and is designed to retain and attract businesses that will generate substantial additional tax revenues and employment opportunities for the Town while providing quality goods and services; and
WHEREAS, pursuant to said program, that a tax assessment agreement be offered to Radius Hospitality as an incentive to invest an estimated $11,800,000 in total costs including land and building improvements, and to construct a hotel featuring 110 all-suite guestrooms, restaurant, lounge, lobby, business center, 1,000 square foot state-of-the art fitness facility, 1,300 square feet meeting space, indoor pool, spa, and guest laundry facility (the land and building improvements collectively referred to as the “Real Property”)
(Resolution Continued on Next Page)
ITEM:
14. J. (Continued)
NOW, THEREFORE, BE IT RESOLVED that the South Windsor Town Council is pleased to offer a tax assessment agreement between the Town and Radius Hospitality reducing the amount of the estimated increase of $180,183 in real property assessment of the Real Property by 100% for a period of years one through three, 80% for year four, 70% for year five, 60% for year six, and 50% for year seven with an estimated tax benefit reduction of approximately $1,042,625 total over the seven (7) years, commencing with the Grand List following the date the Certificate of Occupancy is issued for the Real Property; provided, however, that if such assessment is changed by any future Town revaluation, the new assessed value of the Real Property shall be reduced by the percentage applicable to the year within the seven (7) year period such
assessment is changed; and
BE IT FURTHER RESOLVED that the South Windsor Town Council’s offer is conditioned upon Radius Hospitality (1) meeting the estimated $11,800,000 construction cost figures and agreeing to the estimated assessment figure; and (2) continuing operations at the Real Property for a minimum of ten (10) years from the date the Certificate of Occupancy is issued; if Radius Hospitality fails to meet either of these conditions, Radius Hospitality shall refund the Town of South Windsor all of the tax benefit reductions it has received; and
BE IT FURTHER RESOLVED that the South Windsor Town Council’s offer is contingent upon Radius Hospitality execution of a written agreement reflecting the terms set forth in this Resolution and such other terms as the Town may require.
Was made by Councillor Anwar
Seconded by Councillor Yagaloff
Councillor Yagaloff explained that the developer came forward previously with a request for 100% abatement over 7 years. The Town Council said no to that request and they have come back with a reasonable request. This project will be positive for Evergreen Walk and help strengthen that area. Councillor Yagaloff stated that the reason he is willing to support this is because the project is a high quality hotel with affordable rates. This project will not take business away from any other business in Town.
(Resolution Continued on Next Page)
ITEM:
14. J. (Continued)
Councillor Prague stated that the Mayor suggested that an agreement be put into the abatement to hire South Windsor residents for the construction portion of this facility as well as when it is up and running. Mr. Galligan stated that the owner has made if very clear that they make every effort to use local people.
Mr. Scott Yaeger, President of Radius Hospitality came forward and explained that as far as construction and employees are concerned, the company has no problem using local employees or local construction companies provided that they are as talented as others and the pricing is compariable.
Councillor Prague amended the resolution “to require Radius Management to employ all best faith efforts to hire local South Windsor building construction personnel and when it comes to hiring staff, give South Windsor residents as long as they are qualified every opportunity to obtain positions within the hotel”. Councillor Anwar seconded the amendment.
Mayor Delnicki stated that he does not feel “good faith effort” is a strong enough term and should include a mandate in the language for South Windsor construction companies unless there is a responsible bid that is less and likewise terminology of offering the jobs to the residents of South Windsor first on a first right of refusal basis.
Councillor Yagaloff stated he would support the resolution as it stands with “best faith efforts to hire South Windsor residents” instead of mandating them to hire South Windsor residents. Other Towns could also say to only hire Town residents and this could ultimately hurt South Windsor residents. It is the company’s decision who they feel is most qualified for a job.
Councillor Anwar requested that a best faith effort be used. Mr. Yaeger explained that the hotel does not have any hidden agenda and explained that he would like the very best person he can find to do the job.
ITEM:
14. J. (Continued)
Deputy Mayor Bazzano said he would support this amendment but reminded the Council that businesses are brought to Town to support jobs.
Councillor Snyder stated she is not comfortable putting a requirement into the contract as proposed.
Councillor McCann said he would support the amendment with the best efforts as outlined by Councillor Prague. Councillor McCann stated he has concerns regarding the amount of the abatement.
Mayor Delnicki called for a vote on the amendment; it passed on a roll call vote of 6 to 3 with Deputy Mayor Bazzano, Councillor Anwar, Councillor Beaulieu, Councillor McCann, Councillor Prague and Councillor Yagaloff voting in favor of the amendment; and Mayor Delnicki, Councillor Havens and Councillor Snyder voting in opposition to approval of the amendment.
Councillor McCann explained that Vernon just passed an abatement for a hotel in that Town. Councillor McCann gave the abatement amounts and felt that created the perimeters.
Councillor Havens stated he would support the resolution because there is no one else looking to build there. This proposal will add to the community and will help the merchants.
Deputy Mayor Bazzano made an amendment to the resolution to change the abatement amounts as follows: 100% for the first year, 80% for the second year through the fourth year, 70% for the fifth year, 60% for the sixth year and 50% for the seventh year. Councillor McCann seconded the amendment.
Councillor Yagaloff stated that there are three tax abatements that the Council is supposed to vote on tonight which are all different. The Town Manager and hotel negotiated a certain abatement to make this a viable project. Hotels are very expensive to build and operate.
(Resolution Continued on Next Page)
ITEM:
14. J. (Continued)
Mayor Delnicki called for a vote on the amendment; it passed on a roll call vote of 5 to 4 with Mayor Delnicki, Deputy Mayor Bazzano, Councillor Beaulieu, Councillor McCann, and Councillor Prague voting in favor of the amendment; and Councillor Anwar, Councillor Havens, Councillor Snyder, and Councillor Yagaloff voting in opposition to approval of the amendment.
Mayor Delnicki then called for a vote on the amended resolution; it passed, unanimously.
The Resolution to read as follows:
WHEREAS, a Request for Tax Abatement has been received from Radius Hospitality, the owners of units 7A and 7G at the entrance to the new Town Center area of Evergreen Walk in South Windsor, CT.; and
WHEREAS, the Town of South Windsor’s Tax Partnership Program established pursuant to Connecticut General Statutes Section 12-65b, is intended to encourage the development and expansion of quality businesses in Town through tax and other economic incentives, and is designed to retain and attract businesses that will generate substantial additional tax revenues and employment opportunities for the Town while providing quality goods and services; and
WHEREAS, pursuant to said program, that a tax assessment agreement be offered to Radius Hospitality as an incentive to invest an estimated $11,800,000 in total costs including land and building improvements, and to construct a hotel featuring 110 all-suite guestrooms, restaurant, lounge, lobby, business center, 1,000 square foot state-of-the art fitness facility, 1,300 square feet meeting space, indoor pool, spa, and guest laundry facility (the land and building improvements collectively referred to as the “Real Property”)
(Resolution Continued on Next Page)
ITEM:
14. J. (Continued)
NOW, THEREFORE, BE IT RESOLVED that the South Windsor Town Council is pleased to offer a tax assessment agreement between the Town and Radius Hospitality reducing the amount of the estimated increase of $180,183 in real property assessment of the Real Property by 100% for the first year, 80% for a period of years two through four, 70% for year five, 60% for year six, and 50% for year seven with an estimated tax benefit reduction of approximately $968,149 total over the seven (7) years, commencing with the Grand List following the date the Certificate of Occupancy is issued for the Real Property; provided, however, that if such assessment is changed by any future Town revaluation, the new assessed value of the Real Property shall be reduced by the percentage applicable for the year within the seven (7) year period such
assessment is changed; and
BE IT FURTHER RESOLVED that the South Windsor Town Council’s offer is conditioned upon Radius Hospitality (1) meeting the estimated $11,800,000 construction cost figures and agreeing to the estimated assessment figure; (2) continuing operations at the Real Property for a minimum of ten (10) years from the date the Certificate of Occupancy is issued; and (3) implore all best faith efforts to hire local South Windsor building construction personnel and when it comes time to hire permanent staff, give qualified South Windsor residents every opportunity to obtain positions with the hotel; if Radius Hospitality fails to meet any of these conditions, Radius Hospitality shall refund the Town of South Windsor all of the tax benefit reductions it has received; and
BE IT FURTHER RESOLVED that the South Windsor Town Council’s offer is contingent upon Radius Hospitality execution of a written agreement reflecting the terms set forth in this Resolution and such other terms as the Town may require.
Councillor Prague made a motion to Suspend the Rules in order to move to Item 14. M. Councillor McCann seconded the motion; and it was approved, unanimously.
ITEM:
14. New Business (Continued)
M. Resolution Approving a Transfer of $14,560 from the Contingency Account to the Fire Marshal’s Part Time Account
BE IT RESOLVED that the South Windsor Town Council hereby approves a transfer of $14,560 from the Contingency Account to the Fire Marshal’s Part Time Account to cover costs associated with the Smoke Alarm Campaign Program.
Was made by Councillor Beaulieu
Seconded by Councillor McCann
Councillor Beaulieu stated that this seems like a small amount of money for a program that keeps the residents of this Town safe.
Councillor Anwar said that he spoke with individuals from the condominium complexes and they appreciate this program.
Councillor Yagaloff felt that this program is run by quality staff and saves lives. Councillor Yagaloff stated he would support this resolution.
Mr. Walter Summers, Fire Marshal thanked the Council members for support of the program and also thanked Police Chief Reed and the past and current Fire Chief’s of the Fire Department.
Mayor Delnicki called for a vote on this resolution; it was approved, unanimously.
- Resolution Approving Offer of a Tax Assessment Agreement with LCB Senior Living, LLC
WHEREAS, a Request for Tax Abatement has been received from LCB Senior Living, LLC, the potential owners of the property located at the corner of Buckland Road and Deming Street in South Windsor, CT.; and
(Resolution Continued on Next Page)
ITEM:
14. K. (Continued)
WHEREAS, the Town of South Windsor’s Tax Partnership Program, established pursuant to Connecticut General Statutes Section 12-65b, is intended to encourage the development and expansion of quality businesses in Town through tax and other economic incentives, and is designed to retain and attract businesses that will generate substantial additional tax revenues and employment opportunities for the Town while providing quality goods and services; and
WHEREAS, pursuant to said program, that a tax assessment agreement be offered to LCB Senior Living, LLC as an incentive to invest an estimated $14,743,500 in total costs, including land and building improvements, and to construct an 80 unit (studios, one-, and two-bedroom) assisted-living residency for area seniors. Included will be 25-30 Memory Impairment units for residents with early-stage Alzheimer’s disease (the land and building improvements collectively referred to as the “Real Property”)
NOW, THEREFORE, BE IT RESOLVED that the South Windsor Town Council is pleased to offer a tax assessment agreement between the Town and LCB Senior Living, LLC reducing the amount of the estimated increase of $250,920 in real property assessment of the Real Property by 50% for a period of five (5) years with an estimated tax benefit reduction of approximately $627,300 total over the five (5) years, commencing with the Grand List following the date the Certificate of Occupancy is issued for the Real Property; provided, however that if such assessment is changed by any future Town revaluation, the new assessed value of the Real Property shall be reduced by the percentage applicable to the year within the five (5) year period such assessment is changed; and
BE IT FURTHER RESOLVED that the South Windsor Town Council’s offer is conditioned upon LCB Senior Living, LLC (1) meeting the estimated $14,743,500 construction cost figures and agreeing to the estimated assessment figure; and (2) continuing operations at the Real Property for a minimum of ten (10) years from the date the Certificate of Occupancy is issued; if LCB Senior Living, LLC fails to meet either of these conditions, LCB Senior Living, LLC shall refund the Town of South Windsor all of the tax benefit reductions it has received; and
(Resolution Continued on Next Page)
ITEM:
14. K. (Continued)
BE IT FURTHER RESOLVED that the South Windsor Town Council’s offer is contingent upon LCB Senior Living, LLC execution of a written agreement reflecting the terms set forth in this Resolution an such other terms as the Town may require.
Was made by Councillor Prague
Seconded by Councillor McCann
Councillor Prague questioned Mr. Peter DeMallie what the last two senior living centers received for tax abatements.
Mr. Peter DeMallie, Design Professionals, Inc. came forward and answered that Summerville and The Village at Buckland Court both received a 5 year, 50% tax abatement which is identical to what the Town Manager has recommended.
Councillor Yagaloff stated that these senior living centers are high quality businesses and there is a tremendous need for the assisted living facility. The developer is providing a public service. Councillor Yagaloff said he is fully in support of this resolution.
Councillor McCann said he would support this abatement because it is the same as was given to the last two similar facilities.
Mayor Delnicki called for a vote on the resolution; it was approved, unanimously.
- Resolution Approving Offer of a Tax Assessment Agreement with American Eagle Federal Credit Union
WHEREAS, a Request for Tax Abatement has been received from American Eagle Federal credit Union, the owners of the property located at 512-530 Buckland Road; and
(Resolution Continued on Next Page)
ITEM:
14. L. (Continued)
WHEREAS, the Town of South Windsor’s Tax Partnership Program, established pursuant to Connecticut General Statutes Section 12-65b, is intended to encourage the development and expansion of quality businesses in Town through tax and other economic incentives, and is designed to retain and attract businesses that will generate substantial additional tax revenues and employment opportunities for the Town while providing quality goods and services; and
WHEREAS, pursuant to said program, that a tax assessment agreement be offered to American Eagle Federal Credit Union as an incentive to invest an estimated $2,679,370 in total costs, including land and building improvements, and to construct a 2,600 square foot building that will house a branch and employ 4-6 employees with an annual payroll of $200,000-$300,000 (the land and building improvements collectively referred to as the “Real Property”)
NOW, THEREFORE, BE IT RESOLVED that the South Windsor Town Council is pleased to offer a tax assessment agreement between the Town and American Eagle Federal Credit Union reducing the amount of the estimated increase of $35,009 in real property assessment of the Real Property by 50% for a period of three (3) years with an estimated tax benefit reduction of approximately $52,512 total over the three (3) years, commencing with the Grand List following the date the Certificate of Occupancy is issued for the Real Property; provided, however that if such assessment is changed by any future Town revaluation, the new assessed value of the Real Property shall be reduced by the percentage applicable to value of the Real Property shall be reduced by the percentage applicable to the year within the three (3) year period such
assessment is changed; and
BE IT FURTHER RESOLVED that the South Windsor Town Council’s offer is conditioned upon American Eagle Federal Credit Union (1) meeting the estimated $2,679,370 construction cost figures and agreeing to the estimated assessment figure; and (2) continuing operations at the Real Property for a minimum of ten (10) years from the date the Certificate of Occupancy is issued; if American Eagle Federal Credit Union fails to meet either of these conditions, American Eagle Federal Credit Union shall refund the Town of South Windsor all of the tax benefit reductions it has received; and
(Resolution Continued on Next Page)
ITEM:
14. L. (Continued)
BE IT FURTHER RESOLVED that the South Windsor Town Council’s offer is contingent upon American Eagle Federal Credit Union execution of a written agreement reflecting the terms set forth in this Resolution and such other terms as the Town may require.
Was made by Councillor Yagaloff
Seconded by Councillor Anwar
Deputy Mayor Bazzano made a motion to extend the meeting past 11:00 p.m. in order to finish this agenda item. The motion was seconded by Councillor Prague; and was approved, unanimously.
Councillor Yagaloff stated that the Town gave Farmington Bank the same abatement and this is a very reputable business. Councillor Yagaloff said he would support this resolution.
Answering questions from the Council, Mr. DeMallie explained that American Eagle Federal Credit Union purchased an additional lot and will be allowing the South Windsor Fire Department to use that property for training purposes.
Mayor Delnicki called for a vote on the resolution; it was approved, unanimously.
20. Adjournment
Councillor Havens made a motion to adjourn the meeting at 11:00 p.m. Councillor Snyder seconded the motion; and it was approved, unanimously.
Respectfully submitted,
Deborah W. Reid
Clerk of the Council
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