MINUTES
SPECIAL MEETING
CITY COUNCIL & WPC AUTHORITY
DECEMBER 21, 2005
A SPECIAL MEETING of the City Council & WPC Authority was held on Wednesday, December 21, 2005, in the Council Chambers.
Those in attendance included Mayor Ryan J. Bingham, City Councilors James F. McKenna, Thomas C. Jerram, Andrew J. Slaiby, Marie P. Soliani, and Drake L. Waldron, Corp. Counsel Albert Vasko, City Planner Martin Connor, Tax Assessor Donna Patchen, and Economic Development Coordinator Christina Emery.
Absent was Councilman Rick E. Dalla Valle.
Mayor Bingham called the meeting to order at 5:02 p.m.
TAX ABATEMENT: TORRINGFORD DEVELOPMENT LLC #030
On a motion by Councilor Jerram, seconded by Councilor Slaiby, a discussion was held on the request for a Tax Abatement from Torringford Development LLC.
Economic Development Coordinator Christina Emery introduced the owner of the project, Abe Kaoud, and his attorney Peter Herbst. She noted that the particular parcel of land for the project was on Route 202 just passed WalMart, and that Mr. Kaoud has already received permits from the Inland Wetlands Commission, the Planning & Zoning Commission and Architectural Review, and that he has spent two years working with the DEP and the Army Corps of Engineers on wetland issues.
The project is a 133,000 square foot anchor store and two smaller retail buildings. The proposed tenants will create between 250 to 275 jobs and another 100 jobs in construction. It was noted that Mr. Kaoud was applying for a seven year tax abatement on the building, and that negotiations with his tenants were based on receiving said abatement, and without it, the project will fail.
Currently, the land is assessed at $111,030 and the city collects approximately $3,637.00 annually in taxes. If the development is to occur, the city will receive increased taxes on the improved land value. The land will bring in approximately $62,000.00 a year in taxes. Over a seven year tax abatement, the city will get an increase of $409,000.00 in new tax revenue. This amount does not reflect personal property that the tenants may have.
Mrs. Emery noted that the City Council voted to exclude retail from a Tax Abatement Policy in August of 2005, however, Mr. Kaoud clearly began his development project prior to this change being approved.
Mrs. Emery urged the Council to support the request from Mr. Kaoud. She reported that an anchor store of this size could not fit downtown, and it was her hope that the type of tenant coming in would help attract other national retailers to the Torrington market and downtown was the only land left for retail. Mrs. Emery stated that the tax abatement only applied to the improvements of the property.
Councilor McKenna inquired about the traffic impact.
Mrs. Emery indicated that the development occurring at that intersection was taken into consideration.
City Planner Martin Connor stated that the Planning & Zoning Commission approved a zone change from industrial to local business use when this project started several years ago. Planning & Zoning carefully considered the use of the property as it was previously zoned and again as it was zoned local business. A traffic study was conducted during the site plan review as part of the approval process. Route 202 will be widened and a new traffic light will be installed. Planning & Zoning has been obtaining interconnects amongst the different property owners during the planning processes for all the new developments on that stretch of Route 202 so that people could go from one center to another. Mr. Kaoud has volunteered to build a connector to the WalMart property line, but they still needed
WalMart’s approval.
Councilor McKenna inquired about the proposed jobs from this project.
Mr. Kaoud stated that the average yearly payroll for the anchor tenant is $2,500,000.00, nationally. Based on that number, you could add another $800,000.00 from the remaining space. Roughly, the payroll would be $3,300,000.00 a year. He didn’t know how many full time employees vs part time employees, however, the anchor store is open from 8:00 a.m. to 10:00 p.m. and normally employees are asked to report to work a half hour to one hour before the store opens and leave a half hour to one hour after the store closes, which amounts to almost two shifts.
Atty. Herbst stated that this project was important for his client as well as the city. He assured the Council that Mr. Kaoud has a national level tenant for his project. If the tenant were not to get the tax abatement, the tenant would not remain with the project. It is his opinion that, in bringing this tenant to Torrington, others will follow. Those that follow will presumably be smaller and will potentially fit into the downtown development. He urged the Council to give Mr. Kaoud favorable consideration.
Councilor Jerram inquired how long the tenant would be subject to the lease beyond the seven year tax abatement.
Mr. Kaoud said the average lease is fifteen years, but this anchor store doesn’t normally leave once they come into an area.
Councilor Jerram inquired whether the tax abatement would impact anything the WPCA in sewer user fees and/or connection fees.
Mrs. Emery didn’t have an answer.
Councilor Jerram inquired about the design of the building.
Mr. Connor stated that the project went through the Architectural Review Committee and that it was a good looking building. Any major modifications would have to come back before the Architectural Review Committee.
Mayor Bingham asked Mr. Kaoud to explain the campaign he went through in regard to the neighbors, which was one of his concerns.
Mr. Kaoud indicated that he did hear some concerns from several of the neighbors. He reported that, when he was going through the approval process, Mr. Connor insisted on a 75 foot buffer between Mr. Kaoud’s property and the neighbors instead of a 25 foot buffer, which the law requires. He met with all the neighbors, and minor issues were addressed. He promised each one a 10% discount.
VOTE #450
Councilor Jerram amended his motion to the following: that the City of Torrington provide a 100% Tax Abatement on the improvements to Mr. Kaoud’s project for a term of seven years, subject to items A through D contained in Christina Emery’s memorandum. (Attached to the minutes.) Councilor Slaiby amended his second. The vote was unanimous.
ADJOURNMENT #500
On a motion by Councilor Jerram, seconded by Councilor McKenna, the Council voted unanimously to adjourn at 5:20 p.m.
ATTEST: JOLINE LeBLANC
ASST. CITY CLERK
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