RECEIVED NOVEMBER 10, 2008 @ 8:30 A.M.
Michele R. Grande, Redding Town Clerk
3 pages
REDDING BOARD OF FINANCE
MEETING
November 3, 2008
Filed subject to approval
Present: Alvarez (Chairman), DeSalvo, Dolan, Kearney, Simeonidis, Viscio
Also present: First Selectman Ketcham, Selectman Takacs, Selectman Miller, Controller Hutvagner, Treasurer O’Donnell, Assessor Ford, 21 members of the public and representative of the Redding Pilot.
Chairman Alvarez called the November 3, 2008 meeting to order at 7:30 pm.
PUBLIC COMMENT
Ron Wendschuh: commented on the thorough coverage of the GLDC proposal by the Redding Pilot; suggested that if Mr. Soler has a list of buyers he make that public; and asked if the town consider bailing out other developers/builders who run into financing difficulty.
Adam Lubarsky: provided a historical reflection on the developmental issues in the Georgetown area; commented that Mr. Soler has provided a plan for a good project and commented that the proposal if more of a tax lien on the property. He added that the project will stimulate economic activity in the area.
Steve Pomazi: expressed his belief that public money should not be used for a private enterprise.
Tina Miller: reflected on the minutes of a meeting on April 5, 2005 with the Board of Selectmen, Board of Finance and the WPCC where the financing options were discussed and the recommendation that the boards not look favorably on an incentive program. She also questioned by the proposal went to the Board of Finance before going to the Board of Selectmen.
Rand Guffy, Peaceable Street: questioned whether the Town of Redding had any financial commitment to the project. He added that Brownfields projects usually include some sort of civic financial support.
Ralph Bosch: commented that for many years the Gilbert & Bennett factory was a primary source of revenue for the Town of Redding and the Georgetown business area continues to provide Redding with a source of revenue and good tax base. The property needs to be developed.
Dirk Schwartz, Lee Lane: commented that the proposal does not seem to be a large risk to the town.
Deb Hawes: as a realtor, she stated that there is a market for the residential development, that the town should cooperate in the venture and the project will off in the future..
James Miller, Middlebrook Pond Road: asked if the proposal would go to a Town Meeting for approval and asked if the proposal was approved, could the contract with the state be cancelled should bonding financing become available in the market place..
Ed Sherrick, Kimberly Drive: asked if the proposal would solve the problem and would the project then be viable, or is it the tip of the iceberg. Asked that if granted, what happens should the project be terminated.
Jere Ross, Pine Tree Road: commented that additional information is needed, asked what the process was for approval, and added that he would support the project, it is important for the town to be partners in the project.
John Hartwell, Westport: commented that the project has a much wider impact, will impact all the surrounding communities and he hopes there will be a way for the project to go forward.
DISCUSSION ON GEORGETOWN LAND DEVELOPMENT COMPANY PROPOSAL FOR TAX INCREMENTAL FINANCING (TIF) THROUGH CONNECTICUT DEVELOPMENT AUTHORITY
First Selectman Ketcham introduced Attorney Lee Hoffman, with Pullman & Comley, LLC. Mr. Hoffman briefed the Board of Finance and audience on the work of the Connecticut Brownfields Redevelopment Authority and how the program works. He provided a sample application for the TIF program. He also provided a sample spreadsheet showing the impact of this type of financing on the tax revenue stream. Throughout his presentation, members of the Board of Finance asked questions and Mr. Hoffman provided responses.
At the conclusion, Chairman Alvarez opened the meeting to comments from the public.
Tina Miller: question regarding the relationship of the Georgetown Special Taxing District and what was being proposed. Response: the GSTD is over and above taxation of property values. Mrs. Miller noted that the Town was criticized for not contributing to the project, but she noted that the town sold the property for a $1,000,000 tax lien and the finished project will be work a lot more.
Steve Pomazi: question regarding the total value of the project and how the roadway was conveyed. Mrs. Ketcham responded that the total valuation is $14M, with the commercial piece valued at $4.9M. The road was abandoned by the town. The approved plan has a new road being built and GLDC will be responsible for the maintenance and upkeep of the road..
Adam Lubarsky: commented that the property was sold for the tax lien, there was no tax revenue from the property for 12 years, but Redding benefited from the payment of the tax lien and has benefited from the payment of taxes on the property since the purchase by Mr. Soler’s group.
Unidentified: commented that the CRB program is for remediation work. Mr. Hoffman responded that the site is a federally identified contamination waste site.
Unidentified: asked where the money goes when the state released the funding. Mr. Hoff man responded that the funds will be released for monies already spent on remediation work, or to be spent.
Steve Soler: commented that over $40M has been spent to date, with much of it on remediation work. GLDC received the abandoned road from the Town of Redding, but the road contains contamination and is required to be remediated and rebuilt. The money being sought is for the rebuilding of the roadway and associated work. The proposal under review applies only to the tax revenue for the commercial properties within the project, not the residential properties.
EXECUTIVE SESSION
Motion: move to executive session for a discussion of attorney/client communications. Simeonidis, Dolan. Approved. Unanimous. Mrs. Ketcham, Mr. Takacs, & Mrs. Miller were invited to be present.
Mrs. Kearney left the meeting at this point due to illness.
The meeting recessed at 9:03 pm.
RECONVENE
The Chair reconvened the meeting in public session at 10:17 pm.
Chairman Alvarez announced that a joint meeting of the Board of Selectmen and Board of Finance was scheduled for November 24, 2008 at 7:30 pm to discuss the proposal further.
DISCUSSION AND POSSIBLE ACTION ON CONTINUING MEMBERSHIP IN FUEL-BUYING CONSORTIUM AND FUEL PRICES FOR CURRENT PURCHASES
Mr. Hutvagner reported the fuel-buying consortium is considering locking in fuel prices for the 09-10 fiscal year. The current contract expires on August 31, 2009.
Motion: move that the Board of Finance approve continuation of participation in the fuel-buying consortium as presented. Simeonidis, Viscio. Approved Unanimous.
ADJOURNMENT
Motion: move to adjourn. DeSalvo, Dolan. Approved. Unanimous.
The meeting was adjourned at 10:35 pm.
Respectfully submitted,
Mary Maday, Recording Secretary
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