Economic Development Commission

City Middletown, CT Economic Development Committee Minutes from the Economic Development Committee Meeting January 12, 2021 Meeting was conducted via video conference call Present: V. Loffredo, T. Gennaro, P. Pessina, J. Blackwell, E. McKeon Absent: Executive: Mayor Benjamin Florsheim Staff: J. Samolis, T. Marano, L. MacPherson Minutes NOTES 1. Call to Order: Chairman V. Loffredo called the meeting to order at 7:15 PM. 2. Minutes: E. McKeon seconded by P. Pessina made a motion, seconded by E. McKeon to approve the minutes of the Regular Meeting of December 8, 2020. Vote: Unanimous in favor of the motion. 3. Public Session: There were no comments from the public. V. Loffredo closed the public session. 4. Communications: V. Loffedo stated Brig Smith, Office of General Counsel, sent a letter of formal opinion concerning Base Assessments for Tax Fixing Agreements, specifically as regards Landmark Development’s request for a tax abatement agreement for its proposed project on Newfield Street. The letter states the decision rests with the legislative body. It was dated 1-12-21. Vote: No vote was taken. 5. Old Business:  Chairman Loffredo moved the Small Business Grants to later in the agenda when appropriate staff was in attendance.  Landmark Development Tax Incentive Proposal 1 J. Samolis reviewed Mr. Russo’s new proposal. The company has lowered its request for a tax abatement to approximately $12 million. It retained its request for a full waiver of the building fee estimated to be $893,489. Mr. Glenn Russo of Landmark Development reviewed his proposal to construct a 414-unit apartment complex on Newfield Street which he developed from comments by the members. The members discussed the project and proposed tax abatement and fee waiver request. Staff was directed to compare other abatements, base assessments and costs and revenues. V. Loffredo directed the members to vote on the proposal at the next meeting. Vote: No vote was taken.  Middletown Small Business Loans Director Samolis gave an update on the Small Business Loan program. We only received two. We will need another Council resolution to continue in 2021. The members directed staff to reevaluate the program and make a recommendation at February’s EDC meeting. Vote: No vote was taken.  Middletown Applications for Economic Incentives - Lynda MacPherson, Community Development Specialist, gave an overview of the seven applicants for the CDBG grants. Members discussed the businesses. There are $75,000 available in the fund, enough for 15 more applicants. i. Small Business Grants 1. Avante Spa Corp - LMI 2. Bookkeeping Done Right Inc. – Micro enterprise 3. Hachi LLC - LMI enterprise 4. The Hair Affair - Micro enterprise 5. Main Switch LLC - Micro enterprise 6. MJP Enterprises LLC - Micro enterprise 7. Enve Hair Studio 165 LLC - Micro enterprise P. Pessina made a motion, seconded by E. McKeon, to approve the seven grants and forward them to the Common Council. Vote: Unanimous in favor of the motion 2   Small Business Loans – J. Samolis discussed a request from a loan recipient to extend its payments over 2 years. J. Pugliese of the Middlesex County Chamber discussed this request and the other applicant’s wishes to do the same. The members discussed the requests. E. McKeon made a motion, seconded by J. Blackwell, to allow the two applicants to extend their payments over two years Vote: Unanimous in favor of the motion  The members discussed what to do with the remaining funds in the loan program budget. E. McKeon made a motion, seconded by P. Pessina, the remaining funds from the loan program be returned to the budget for R. M. Keating Park(aka Remington). Vote: Unanimous in favor of the motion 7. New Business  Delmic Properties Tax Incentive Request – 339 Main Street, aka Bob’s Building Mr. Delmic requested the committee table his project until next month’s meeting. The members agreed to do so. Vote: No vote was taken  Miscellaneous Updates J. Samolis gave several updates. a. He reviewed the Riverfront RFP. There are, 21 respondents. Mayor Florsheim formed an informal evaluation committee including Councilwoman Jeanette Blackwell, Stephen DeVoto, Laney(sp?) Banks, Chamber President Larry McHugh, Mayor Florsheim. They are tasked with giving a recommendation of top 10 to the Common Council. The members discussed the process. Staff was directed to keep the committee updated. b. Parking analysis of 2008 is being updated with VHB. The first meeting is 1/13/21 with staff and VHB. c. P&Z to adopt POCD at its meeting of 1/13/21. d. T. Marano updated the committee on the status of Kawa Coffee Shop. He is helping the company look for a new space downtown. 3 8. Adjournment P. Pessina made a motion, seconded by E. McKeon, to adjourn the meeting. Vote: Unanimous in favor of the motion. The meeting was adjourned at 8:51 PM 4