RECEIVED NOVEMBER 28, 2008 @ 8:30 A.M.
Michele R. Grande, Redding Town Clerk
4 pages
REDDING BOARD OF FINANCE
MEETING
November 24, 2008
Filed subject to approval
Present: Alvarez (Chairman), DeSalvo, Dolan, Simeonidis, Viscio
Also present: First Selectman Ketcham, Selectman Takacs, Selectman Miller, Controller Hutvagner, Treasurer O’Donnell, Assessor Ford, more than 30 members of the public and representative of the Redding Pilot.
Chairman Alvarez called the November 24, 2008 meeting to order at 7:30 pm.
Mr. Alvarez announced the resignation of Christina Kearney and thanked her for her service to the Board of Finance and the community. He announced that Rand Guffey was recommended by the Republican Town Committee to fill the vacancy until the next election.
Motion: move the Board of Finance name Rand Guffey to the position held by Christina Kearney. DeSalvo, Viscio. Approved. Unanimous
Mr. Guffey was sworn into office by the Town Clerk in later in the meeting.
APPROVAL OF MINUTES
Motion: move that the Board of Finance accept the minutes of the October 27, 2008 meeting as corrected. DeSalvo, Viscio. Approved. Unanimous.
Correction: page 1, paragraph 2 under report from Steve Soler, last sentence, “Should the project default or fail, the Town will still be obligated but the State will wait for the money plus interest.
Motion: move that the Board of Finance accept the minutes of the November 3, 2008 meeting as corrected. DeSalvo, Viscio. Approved. Unanimous.
Correction: page 1, comment by Tina Miller, last sentence “She also questioned why…”
PUBLIC COMMENT
Glen Berry, Picketts Ridge Road: commented that the Town and developer have something to win and something to lose, it is important
Robert Dean, representing the Planning Commission: Mr. Dean read a letter from the Planning Commission into the record.
Adam Lubarsky: asked if the Board of Finance had received other correspondence regarding the GLDC proposed TIF financing. Mr. Alvarez noted that other letters and emails were received.
Motion: move that the Board of Finance include all letters and emails received in the record of the meeting. Simeonidis, DeSalvo. Approved. Unanimous.
Rosalind Kopfstein, Commission on Aging: Ms. Kopfstein read a letter from the Commission on Aging into the record. The letter supported the financing proposal.
Bill Walsh, Ledgewood Drive: would like to see the project go forward as planned, but suggested the Town get a proportional portion of the equity.
Gene Connolly, Meeker Hill Road: supported the project and proposed financing but the Town should look for some additional incentive.
Nancy Silverman, Main Street Georgetown property owner: agreed with the plan, but urged the Town not to forget the Main Street of Georgetown.
Adam Lubarsky: commented on the history of the project, and added that the financing proposal only involves the commercial portion of the plan, not the residential properties.
Dan Heller: support for the financing, but the Town should not take an equity portion of the project.
Bob Dahms, Portland Avenue: support for the Town agreeing with the financing proposal.
2007-2008 PRELIMINARY FINANCIALS DISCUSSION AND ACCEPTANCE
Joseph Kask & Lisa Walsh of Blum Shapiro & Co. PC presented the draft audit report for review and discussion. Mr. Kask provided an overview of the various sections of the report. Questions and answers followed.
Motion: move that the Redding Board of Finance accept the draft of the 2007-2008 Audit Report as presented. Dolan, DeSalvo. Approved. Unanimous.
Town Clerk Michele Grande administered the oath of office to Rand Guffey.
CONTROLLER’S REPORT AND YEAR-TO-DATE FINANCIAL DOCUMENTS
Mr. Hutvagner provided a written report. He noted that tax revenue is on target, the conveyance fees are somewhat higher than anticipated, and the Building Department has issued several building permits.
The fuel consortium has locked in prices for the period 9/1/09 to 8/31/2010 at the following prices: oil, $2.4542; gas at $2.2387, and diesel at $2.6322. These numbers will be used in the preparation of the 2009-2010 budget.
The Board of Selectmen convened their meeting at 8:45 pm
Motion: move that the Board of Selectmen recess to executive session for a discussion of commercial and financial data given in confidence by GLDC. Miller, Takacs. Approved. Unanimous.
EXECUTIVE SESSION
Motion: move that the Board of Finance recess to executive session with the Board of Selectmen to discuss commercial and financial data given in confidence by GLDC. DeSalvo, Dolan. Approved. Unanimous.
The meeting recessed at 8:45 pm. Mr. Soler and Mr. Dean (for the Planning Commission) were invited to be present.
RECONVENE
Chairman Alvarez reconvened the Board of Finance meeting in public session at 11:05 pm.
First Selectman Ketcham reconvened the Board of Selectmen meeting in public session at 11:05 pm.
The Board of Selectmen addressed the issues of the proposed TIF financing. It was noted that the Board of Selectmen is the policy board that considers matters of this nature and then refers them to the Board of Finance for further review of the financial and economic aspects.
Mr. Takacs provided a list of provisions/requirements that need to be considered before action on the proposal is made. He noted that the Town’s loss of incremental tax revenue pursuant to the TIF is only on the commercial portion of the project. Mrs. Miller agreed with most of Mr. Takacs’ list and commented that the only certainty is that the future is unknown. She stressed the importance of balancing the benefits of the project with the costs, and that remediation of the road is necessary to the further development of the project as originally conceived by the Master Plan. Both Mr. Takacs and Mrs. Miller were in favor of recommending the proposal to the Board of Finance for further review. Mrs. Ketcham commented that it is in the Town’s best interest for the project to go forward.
Motion: move that the Redding Board of Selectmen recommends that the Town of Redding pursue the TIF financing proposal for remediation road work in the wire mill project and send the recommendation to the Board of Finance for it to do financial due diligence and to determine if it is financially viable and fiscally responsible for the Town. Miller, Takacs. Approved. Unanimous.
The members of the Board of Finance, having received the recommendation from the Board of Selectmen, addressed the proposal.
Mr. Simeonidis commented that the project is at risk if the TIF financing does not proceed. The Planning Commission has advised that the approved Master Plan has locked in uses for the property going forward.
Mr. DeSalvo commented that even after the road work is complete the completion of the project is dependent upon economic conditions. A meeting with the Connecticut Development Authority, the Board of Finance and Mr. Soler is the next step, and it is in the best interest of the town to take that next step.
Mr. Viscio commented that there are no certainties, and there is more work to do to review the situation and proposal.
Mr. Guffey noted that the economic conditions are difficult, and that the legal positions and responsibilities of all parties need to be clarified.
Mr. Dolan added that the change in the financial climate has made it difficult for GLDC, the request is realistic, and now the Board of Finance must be diligent to protect the Town’s interests.
Mr. Alvarez added that the TIF financing is for the remediation work for the road, and there is a benefit to the Town of Redding for that work because it makes the property more valuable. The proposal keeps the Master Plan intact. There is more work to do in assessing the risks and negotiating the terms.
Motion: move that the Redding Board of Finance ask the Board of Selectmen to proceed with setting up a 3-party meeting (Town, CDA & Mr. Soler) and prepare the preliminary CDA application to move forward, to include Mr. Alvarez and Mr. Dolan as representatives of the Board of Finance in the meetings, and further authorize Mr. Alvarez to do additional due diligence deemed necessary, and to report back to the Board of Finance for further action. Dolan, DeSalvo. Approved. Unanimous.
The Board of Selectmen adjourned their meeting at 11:38 pm.
ADJOURNMENT
Motion: move to adjourn. DeSalvo, Dolan. Approved. Unanimous.
The meeting was adjourned at 11:40 pm.
Respectfully submitted,
Mary Maday, Recording Secretary
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