MINUTES
ECONOMIC DEVELOPMENT COMMISSION SPECIAL MEETING
MADDEN ROOM THURSDAY, January 15, 2015
SOUTH WINDSOR TOWN HALL TIME: 7:30 P.M.
PRESENT: Chairperson Louise Neary, Dwight Johnson, William Jodice, James Murray, Susan Burnham, Alternate Paul Burnham sat for Mark Lillis, Joseph Kennedy, Wayne Kilburn
ABSENT: Linda Jeski, Mark Lillis, Edwina Futtner, Alternate Mohammad Quaraishi and Alternate John Mitchell
1. Call Meeting to Order: Chairperson Neary called the meeting to order at 7:30 pm.
- Roll Call: The above-mentioned members were introduced.
- New Business - A presentation by Peter DeMallie from Design Professionals regarding a major project proposed for the corner of Sullivan Avenue and RT 5.
Mr. DeMallie introduced Jill Marcotte, Development Manager of Scannell Properties #205, LLC and Attorney Wayne Gerlt, legal counsel for Scannell Properties. Mr. DeMallie stated that the subject property is located in an area that has been zoned for industrial development for many years and is currently categorized as such in the Town’s Plan of Conservation and Development. The Schweir and Patria properties which are involved in this project have been on the market a considerable length of time with the intent for industrial development as zoned. The property is located on the corner of RT 5 and Sullivan Avenue. The total acquisition by Scannell consists of three lots, the largest of which, lot 2 is the subject property for development at this time. The first part of the project consists of
a 292,000 square foot building to be used as a regional distribution center for a major company, with office space, parking, loading docks and an access at the light at the Rye Street intersection. This access will serve all three lots upon development, which will ultimately have a building on each lot. Lot #1 does not yet have a prospective tenant at this time and no building is currently proposed. Lot #3’s conceptual plan proposes a 176,400 square foot building at some point in the future. The tax abatement being requested would help attract tenants to these sites. The terms of tax abatement being requested are identical to that which was previously endorsed by EDC and subsequently approved by the Town Council for the Fed Ex Building and the Aldi Facility - 70% for 7 years for all three buildings. Mr. DeMallie referenced the financial information that was provided to the Commissioners in regard to the value of the building construction and
personal property associated with this proposed facility. The Town Manager’s recommendation for the project had also been provided in the meeting packet. Mr. DeMallie stated that this is a large industrial track comprised of several properties with a developer proposing three large buildings that would add jobs and increase the tax base, including personal property and motor vehicles. This unique opportunity fits into the design of the Plan of Conservation and Development and current zoning regulations. Mr. DeMallie also stated that the Design Review Board issued a favorable opinion regarding landscape architecture, site lighting and building design. Mr. DeMallie stated that this site is the preferred site of three that were under consideration by the applicant, one of which was in Massachusetts, the other in another town in Connecticut.
Attorney Gerlt explained that the 7 year term of the tax abatement would be for each building as it is completed.
Mr. DeMallie stated that the distribution center is for a global manufacturer of high value products. Ms. Marcotte stated that the distribution center is for automotive parts and there would be over 20 employees located at the facility. The company has a presence on the east coast but not currently in this area.
Attorney Gerlt stated that no sales will occur at this facility. It will be only for distribution to retail auto parts stores.
Mr. DeMallie stated that the traffic volume generated by shipping and receiving will be very, very low. Transportation will be via tractor trailers during the hours of 6:00 am and 6:00 pm on a weekday basis. Ms. Marcotte stated that approximately 10 semis would be coming in and leaving during the day.
There was a proposed view of the building provided. Mr. DeMallie stated that it will be a 40 foot high structure, 32 foot clear, approximately 140 feet from the road. The predominant access to the property will be at the light at Rye Street for all three properties. However, strong consideration to right turn in/right turn out as recommended by town staff, would be off RT 5. This access road to all three properties would run parallel to Sullivan Avenue. Landscaping and berming would be located between the access road and Sullivan Avenue. Ms. Marcotte said the building will be visible from RT 5, but not the loading docks located on the east side of the building, and that once Lot 1 is developed that structure will partial screen this building. There will be landscaping
between the building and RT 5. Mr. DeMallie stated that the loading docks will also be screened from Sullivan Avenue by landscaping.
Mr. DeMallie stated that a determination has not yet been made as to what will be done with the historical house on the corner of Lot 1 other than it is going to remain. Options include use as an office building, remaining a residence or possible relocation to Main Street. Scannell is looking for input from residents and town staff. It will not be demolished.
Mr. DeMallie stated that a percentage of the low volume truck traffic into the site will be from RT 5 and a percentage of the traffic into the site will be from Sullivan Avenue. The design of the access drives will be to accommodate the largest vehicles entering the site. Based on recommendations of the traffic engineer will determine what, if any, improvements need to be done for access off Sullivan Avenue. Likely, a left hand turn lane westbound on Sullivan will be needed to get into the site.
Attorney Gerlt clarified for the commissioners how the tax abatement will work regarding this multi-phase project. As each building is completed and a CO is issued the 70% for 7 years will commence (i.e., first building completed – begin 7 year abatement for this building; second building completed – begin 7 year abatement for second building, etc). Each building has its own abatement which goes into effect upon completion of the building. The 7 year term is not just for one but each will have its own 7 year term. Attorney Gerlt stated that the total construction cost for the three buildings would be approximately $25 million. This is the amount the abatement is calculated on. The land cost is not being abated and is now zoned for industrial use which increases its value. The
first building will have at least $10 million in personal property, which is also not included in the abatement. There will be significant taxes generated by this property and the abatement will allow South Windsor to be competitive in this economy.
A motion was made by Commissioner Kilburn and seconded by Commissioner Kennedy to approve the 7 year 70% tax abatement as requested by Scannell Properties #205, LLC for property at 135 Sullivan Avenue and was unanimously approved. Motion passed.
- Adjournment: A motion was made by Commissioner Jodice and seconded by Commissioner Johnson to adjourn at 8:26pm and was unanimously approved. Motion passed.
Respectfully submitted,
Donna Thompson
Recording Secretary
Approved as corrected: February 25, 2015
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