City Council

~AD HOC REPORT~ BRT Brookview Commons LLC Application for Deferral of Tax Assessment Wednesday, January 17, 2024 Chairman Salvatore called the meeting to order at 6:35 p.m. on Wednesday, January 17, 2024. Present were Committee Members Andrea Gartner and Emile Buzaid. From the City were Dan Casagrande, Corporation Counsel; Dan Garrick, Director of Finance; Sharon Calitro, Planning Director; Jennifer Emminger, Asst. Planning Director; Donna Murphy, Tax Assessor; Farley Santos, Mayor’s Office; and Dan Bertram, BRT (Petitioner);. Ex Officio Members present: Michael Coelho, Dennis Perkins, Duane Perkins, and Peter Buzaid. Present from the public were Charlie Setaro; Tom Brown; Mark Riefberg; Al Robinson; and 2 unidentified individuals. Mr. Salvatore excused Antonio Iadarola, Director of Public Works and City Engineer, as he was called on by mistake. Mr. Casagrande provided a summary of the Tax Assessment Deferral application submitted by BRT, for the property located at 333 Main Street. The City previously approved a deferral on August 1, 2017. He provided a brief overview of the agreement’s extension history and FEMA delays. The City granted extensions due to COVID and financial hardships; and the original agreement was modified to extend the deadline of completion to December 31, 2023; however, the deadline was not met by the petitioner due to FEMA review delays. The City’s Planning Department informed the petitioner that a new application will need to be submitted, as the City ordinances do not allow extension beyond one year. In December 2023, the petitioner submitted a new application, which was approved by the Planning Commission. The City recommends the Committee adopt the motion recommending approval. Ms. Calitro discussed the letter she sent to City Council. Reiterating that the Planning Commission recommends the approval of the application. Ms. Murphy and Mr. Garrick stated they have no new information to provide. Mr. Bertram provided a brief overview challenges the project faced including: land acquisition (one year closing process), City approvals (received Planning Commission approval after two years), 2021 LOMA FEMA Plan, still pending State LOMA approvals, and larger than anticipated environmental remediation actions. The project is considered a public/private partnership to increase revitalization and market rate housing Downtown. Mr. Santos favors approving the new application to honor the City’s previous commitment. He explained that the City would be honoring the same seven-year deferral agreement that was executed on October 1, 2022 (Grand List). Mr. Bertram confirmed the FEMA LOMA approval is hindering completion of the project with Member Gartner. He explained the complexity of the LOMA review process to the Committee. Ms. Calitro noted that the City cannot issue the Certification of Occupancy and certify a tax deferral until the Planning Department receives a final LOMA approval. Chair Salvatore asked if ample lead time would be included in the agreement to prevent the need for another extension request. Ms. Murphy clarified the application details with Mr. Duane Perkins. Partial assessments took place in 2021 and part of 2022. The Tax deferral would begin on October 1, 2022, and only taxed on the value of the land and out buildings, or $1,092,140.00, for 7 years. The completed project is estimated to be taxed at just under $18 million. Mr. Bertram explained how the tax deferral benefits Downtown development. The tax deferral encourages developers to invest downtown, where environmental issues are still present and a deterrent. Environmental remediation is a very expensive process; offering a tax deferral is a cost savings incentive to support developmental growth Downtown. Member Gartner noted developers and this development are already paying into the Downtown Special Tax District. The project will provide sustainability benefits to CityCenter Danbury. Mr. Bertram confirmed for Mr. Coelho that the mill rate for the Downtown Special Tax District is about .15% of the assessed value. Furthermore, the project generates $24,000 to $25,000, annually for CityCenter. A motion was made by Committee Member Andrea Gartner, seconded by Chairman Salvatore, to recommend the adoption of the tax assessment deferred agreement between the City and Brookview Commons LLC (BRT) as presented by Corporation Counsel. 2 Yes, 1 Opposed (E. Buzaid). Motion carried. A motion made by Committee Member E. Buzaid, and seconded by Chairman Salvatore, to adjourn. The motion carries unanimously. The meeting adjourned at 7:13 p.m. Respectfully submitted, Frank Salvatore, Chair Andrea Gartner Emile Buzaid