City Council

~AD HOC REPORT~ Application for Deferral of Tax Assessment Increase - 11 Boughton Street (Meeting #2) Tuesday, November 19, 2024 Chairman Britton called the meeting to order at 6:39p.m. on Tuesday, November 19, 2024. Present was Committee Member William McAllister; Absent was Committee Member Elmer Palma. From the City were Les Pinter, Deputy Corporation Counsel; Dan Garrick, Finance Director; Waleed Albakry, Director of Planning; Terry Duffy, Assistant Tax Assessor; and Farley Santos, Mayor’s Office. Ex Officio Members present were: Ben Chianese, Peter Buzaid, and Duane Perkins. Also present were Jim Maloney, Consultant to CIFC (Petitioner); Thomas Beecher, Attorney for Petitioner; and Joe Walkovich, Director of Advancement, CIFC. Mr. Pinter provided an overview of the deferral application process thus far, noting that the ad hoc for this matter last met in May of 2023. He confirmed that the project site plan had been submitted and approved by Planning in 2011 with conditions regarding the number of units were made with that approval so that the project would meet standards for affordable and senior housing. He pointed out that updates have been made to the project since, with clarification of how to value this type of housing, and those updates were provided in comminications earlier this year (2024). The explained that this committee with new membership is now charged with reviewing the updates, and making a recommendation regarding the economic benefits of this project in order for it to be granted a tax deferral. Mr. Maloney introduced himself and noted the absence of CIFC CEO Katie Curran due to a previous commitment. He clarified that the intent is to have all 79 units be affordable units, he noted the additional changes are that it is going from a five story building to a 3 story building over a two story garage, and buildings footprint changed shape. Member McAllister asked about building security and parking; Mr. Maloney confirmed security gates and housing management will be present to assure safety, he confirmed that the project will comply with downtown requirements. Chair Britton asked about the economic development benefits of this project; Mr. Farley spoke on the city’s continued efforts to incentivize downtown development and discussed the need for age-in-place housing that is affordable for seniors, noted the jobs the project will bring and long-term business needs for the new residents. He also discussed minimal student impact on schools and long-term tax benefits that will come after the tax deferral. Chair Britton asked if statutes presented in the memo are still valid; Mr. Maloney and Mr. Beecher confirmed. Member McAllister spoke on the positive affects that CIFC has had on the community. Mr. Chianese spoke on the statement that the housing would not take place without the tax deferral. Mr. Maloney clarified that financing over the last fifteen years has changed and that the project now could not move forward as envisioned with 100% low income elderly housing without the tax deferral. Mr. Chianese spoke on the need for two bedrooms for senior aids and aging in place needs; Mr. Maloney clarified that this is not supportive housing. Mr. Chianese explained his concerns with the tax abatement due to unknown future budget needs. Mr. Chianese asked if the land is part of the tax exemption; Mr. Maloney confirm the property is taxed on the value. Mr. Beecher added that the deferral is on the value of the whole package. Mr. Chianese asked about the timeline; Mr. Maloney said that once the tax deferral is in place and presented to the state the project can move forward with a start time likely in 2026. Mr. Duane Perkins stated that low income residents do not have much disposable income to assist with downtown development, he asked about the size of the parking garage; Mr. Maloney confirmed 103 spaces with one space for every unit and discussed the continued need for elderly housing in the Danbury area. Mr. Peter Buzaid asked if taxes are currently being paid on the land at 11 Boughton Street; this was not confirmed. Mr. Buzaid asked about the length of tax deferrals; Mr. Pinter confirmed tax deferrals can be given for any number of years and have been given for 2 or 3 years in the past. Mr. Buzaid also asked about Mr. Maloney’s need for a “subsidy” from the city for the project; Mr. Maloney stated it is a tax expenditure but is referred to as a tax deferral/abatement is used for the scope and cost of the project. Mr. Buzaid noted his understanding of the importance of the project but spoke about the fiscal cliff that the city’s school budget is facing and expressed his concern with the deferral. Mr. Maloney confirmed for Mr. Chianese that the cost of the finished project is about $33.5 million, Mr. Duffy confirmed that the property is taxed on the income that it produces. Mr. Pinter stated that one of the reasons that the item was recommitted was due to addition questions including; the type of housing (clarified in this meeting as low-income senior housing), compliance with the state’s multi-year obligations and income requirements (30%), how will the property be valued (actual vs. low market rent). Mr. Pinter asked if the application provided today differs from what was already approved? Mr. Albakry asked about past approvals; Mr. Beecher noted revised site plans that the department approved; Mr. Albakry explained the need to update and confirm the minimal unit requirements. Mr. Pinter reiterated the need for the number and types of units be set before moving forward. He further clarified that the council needs to act on the satisfactory review of all of the conditions of the project, and that all questions have been answered, in order to effectuate a positive approval. Chair Britton noted that information is dated and that the departments should be allowed to further review and update their information and recommendation. A motion made by Member McAllister, and seconded by Chair Britton, to continue this ad hoc subject to the call of the Chair. The motion carries unanimously. A motion made by Member McAllister, and seconded by Chair Britton, to adjourn. The motion carries unanimously. The meeting adjourned at 7:09 p.m. Respectfully submitted, Joseph Britton, Chair William McAllister