City Council

JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH February 17, 2015 A regular meeting of the Council of the City of Norwich was held February 17, 2015 at 6:30 PM in Council Chambers. Present: Aldermen Desaulniers, Noblick, Wilson, Eyberse, Bettencourt, Nash and Mayor Hinchey. Acting City Manager Bilda and Corporation Counsel Michael Driscoll were also in attendance. Mayor Hinchey presided. Ald. Nash read the opening prayer and Ald. Noblick led the members in the Pledge of Allegiance. Mayor Hinchey called for citizen comment. Melvin C. Mitchell, 49 Sunny Hill Dr., Uncasville, stated he is a military veteran and a retired Food Service Manager from the Board of Education and is asking for a cost of living raise as he feels it is long over due. Mark Cook, 62 Gulliver Circle, spoke about fully funding the Norwich Public Schools Board of Education budget. He gave some statistics dating back to 2010 about the numerous amounts of budget cuts and why it is necessary to fund the Board of Education to make Norwich a desirable place to live and attract new people. Joanne Philbrick, 10 Elm Ave., expressed shock over the resignation of City Manager Bergren. She explained that she recently attended a child’s birthday party in East Lyme. The main topic of discussion that day was why do we have to go to East Lyme and Lisbon to do things and why are the taxes in Norwich so high. People cannot afford to live in Norwich, people are just walking away leaving numerous vacant homes. David Crabb, 47 Prospect St., commented on the median income since 1984 the statistics indicated that the disposable income has not changed since then. He would like to see a flat tax for Norwich taxpayers. Abby Dolliver, 6 Deepwood Dr., spoke about a play put on by the Norwich Public Schools and the Norwich Arts Council through grant funding named “Robinhood and the Sherwood Hoodies”. The production was “second to none” and she said the Council will be getting dvd copies. John Blackburn, 15 Alice St., spoke about the Board of Education budget request being too high. This coupled with the higher utility rates he stated that things are getting out of hand. People aren’t getting pay raises to match this kind of demand. Taxes are too high especially in the CCD something needs to be done. Mayor Hinchey declared citizen comment closed. Mayor Hinchey called for a Public Hearing on AN ORDINANCE PROVIDING FOR THE ABATEMENT OF REAL ESTATE TAXES ON REAL PROPERTY IMPROVEMENTS AND THE WAIVER OF BUILDING PERMIT FEES FOR THE HISTORIC REDEVELOPMENT AND/OR REUSE OF PONEMAH BUILDING #1 Speaking in favor: Louis Kaufman, 241 Hudson St. Hackensack, NJ, requested approval of this ordinance explaining a brief past and present overview of the project stating that a lot of money has been put into this project 1 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH February 17, 2015 already by the development company and the support of this ordinance will be of great assistance to keep it moving forward. Jason Vincent, 77 Main St., NCDC, confirmed what the previous speaker said. He explained that he has experience with these types of projects and confirms the reality is that these take a long time in the making. He stated that this ordinance is only stretching out provisions that have already been agreed to by the city from a 7 year plan to 15 years. Joanne Philbrick, 10 Elm Ave., was not sure whether she is for or against this ordinance. She marveled at the fact the original company that occupied this building “Ponemah” was the largest textile business in the world and it really is a magnificent building. She questioned whether we need 300+ apartments in the city. Speaking in opposition: David Crabb, 47 Prospect St., stated that Norwich empty buildings are a magnet for developers. He doesn’t agree with the concept of tax abatements for economic development to reduce residential property taxes. There being no further speakers Mayor Hinchey declared the public hearing closed. Mayor Hinchey called for second reading and action on AN ORDINANCE PROVIDING FOR THE ABATEMENT OF REAL ESTATE TAXES ON REAL PROPERTY IMPROVEMENTS AND THE WAIVER OF BUILDING PERMIT FEES FOR THE HISTORIC REDEVELOPMENT AND/OR REUSE OF PONEMAH BUILDING #1 Upon a motion of Ald. Desaulniers, seconded Ald. Noblick, it was unanimously voted to waive the reading of the full text and incorporate it into the minutes. Assistant City Clerk read a letter submitted by the Commission on the City Plan. CITY OF NORWICH Department of Planning & Neighborhood Services 23 Union St. Norwich, CT 06360 (860) 823-3766 January 29, 2015 TO: Mayor Deberey Hinchey City Council Members FROM: Ralph Page, Chair Commission on the City Plan 2 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH February 17, 2015 SUBJECT: City Council referral; Abatement of Taxes for Ponemah Mill Relative to the proposed ordinance for the abatement of taxes on real property at 607 Norwich Avenue, commonly referred to as the Ponemah Mill Building # 1. In order to ensure that the proposed ordinance is consistent with the Mill Enhancement Program, a review of the Plan of Conservation and Development and Zoning Ordinances is required. The 2013 Plan of Conservation and Development recognizes that the Ponemah Mill Building #1 is an historic resource that should be redeveloped for adaptive reuse as part of the City’s overall economic development effort. The Mill Enhancement Program is embodied in the zoning ordinances. The program is intended to provide a mechanism for the City to preserve and maintain the mills as historic resources and move them towards a higher level of economic viability. It is noted, that Ponemah Riverbank, LLC purchased the subject property in March of 2006 and obtained all required land use approvals for this project. Said approvals are still valid and in place. Accordingly, the Commission on the City Plan is pleased to forward a favorable advisory report to the City Council. The Ponemah Mills Building # 1 adaptive reuse project is determined to be consistent with the 2013 Plan of Conservation and Development and the Mill Enhancement Program. If there are any further questions, please contact Director of Planning Peter Davis. Upon a motion of Ald. Bettencourt, seconded by Ald. Noblick, for adoption of the following ordinance on the floor introduced by Mayor Hinchey AN ORDINANCE PROVIDING FOR THE ABATEMENT OF REAL ESTATE TAXES ON REAL PROPERTY IMPROVEMENTS AND THE WAIVER OF BUILDING PERMIT FEES FOR THE HISTORIC REDEVELOPMENT AND/OR REUSE OF THE PONEMAH BUILDING #1 WHEREAS, The Council of the City of Norwich seeks to encourage development opportunities that will contribute to the economic stability of the city, encourage tourism and improve the quality of life for the residents of Norwich through the adaptive reuse, rehabilitation, and preservation of the historic and architecturally unique resources, including historic industrial mills, that reflect Norwich’s rich history; and WHEREAS, the Ponemah Mills are contributing structures to the Taftville National Register Historic District and are designated as a historic mill site in the “Feasibility and Planning Study: The Historic Mills of Norwich, Connecticut” published by the city of Norwich in 1992; and WHEREAS, the Council of the City of Norwich wishes to encourage the adaptive reuse and rehabilitation of the Historic Ponemah Mill Building #1 located at 607 Norwich Avenue in Taftville (the “Mill”) for an economically viable project; and WHEREAS, Ponemah Riverbank, LLC (“Ponemah Riverbank”), purchased the Mill on March 26, 2007 and began renovations investing significant sums in the same and has an anticipated completion date of 2020; and WHEREAS, Ponemah Riverbank has obtained the necessary local land use approvals for the mixed-use redevelopment and conversion of the Mill building for historically appropriate use; and 3 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH February 17, 2015 WHEREAS, Ponemah Riverbank has undertaken substantial environmental cleanup of the Mill Property and intends to utilize Federal Historic Rehabilitation Tax Credits which require the Mill to remain income producing for a minimum of five years; and WHEREAS, the Council of the City of Norwich finds that the Mill is historically and architecturally meritorious and it has authority pursuant to Section 12-127a of the Connecticut General Statutes and Sec. 7-121.5 of the Norwich Code of Ordinances to abate real estate tax revenue in whole or in part for such historic mill structures; and WHEREAS, the Norwich Commission on the City Plan has determined that both the redevelopment of the mill and the associated abatement of real estate taxes is consistent with the City’s mill enhancement program; and WHEREAS, the Council of the City of Norwich also has authority pursuant to Section4-7 of the Norwich Code of Ordinances to reduce or waive building permit fees in cases involving industrial buildings such as the Mill where it determines that such buildings or structures will be a benefit to the city; and WHEREAS, Ponemah Riverbank has paid and is anticipated to continue to pay the real estate taxes which have been assessed against the Mill to date and seeks an abatement of the taxes to become due for the improvements made to the Mill during renovations as set forth herein to assist it in obtaining financing for the project NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH that real estate taxes on the real property improvements associated with the historic redevelopment and adaptive reuse of the Mill shall be abated for a period of 15 years during its renovation (the “Construction Period”). The Construction Period shall commence at the time of the issuance of the first building permit for new construction after the date of approval of this ordinance but no later than July 1, 2020. The Construction Period shall terminate on July 1, 2020 or upon the issuance of the first Certificate of Occupancy (“CO”) for the property, whichever occurs first. AND BE IT FURTHER ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH that real estate taxes on real property improvements associated with the historic redevelopment and adaptive reuse of the Mill shall be abated for a period of 15 years in accordance with the following schedule commencing with the Grand List of October 1, 2020 or upon the issuance of the first CO for the property, whichever occurs first. Year Abatement Percentage on Taxation Percentage on Real Property Improvements Existing Real Property Assessment 1 75% 100% 2 75% 100% 3 75% 100% 4 75% 100% 5 75% 100% 6 50% 100% 7 50% 100% 8 50% 100% 4 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH February 17, 2015 9 50% 100% 10 50% 100% 11 25% 100% 12 25% 100% 13 25% 100% 14 25% 100% 15 25% 100% AND BE IT FURTHER ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH that the terms of and this schedule of abatement replaces that established in Ordinance 1670 adopted August 6, 2012 and to the extent this ordinance and Ordinance 1670 are inconsistent the terms of this ordinance shall be effective BE IT FURTHER ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH that pursuant to Sec. 7- 121.5 of the Norwich Code of Ordinances, if after taxes on the Mill have been abated, the Mill is demolished or remodeled in a way which destroys its architectural or historic value, the then owner shall pay the city an amount equal to the total amount of taxes which had been abated under this ordinance. BE IT FURTHER ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH All building permit fees associated with the historic redevelopment and adaptive reuse of the mill shall be waived with the exception of any costs related to state fees and necessary third party review of construction documents. The above ordinance passed unanimously on a roll call vote of 7-0. Gerry Paradis – gave an audit presentation done by Blum Shapiro PC. A presentation by Pamela Muccilli - presenting 3 awards - from the Historical District Commission of the Annual Preservation awards. Upon a motion of Ald. Wilson, seconded by Ald. Noblick it was unanimously voted to accept the report from the Commission on the City plan previously read by the Assistant City Clerk. Relative to an ordinance for the abatement of real estate taxes on real property improvements and the waiver of building permit fees for the historic redevelopment and/or reuse of Ponemah building #1. Acting City Manager John Bilda gave a brief oral report on the following; 1. Spending time educating himself on the budget process and feels confident in meeting the April 6, 2015 deadline for the budget. 2. Coordinating time with department leaders and is in the process of presenting a model to present to the Council of their activities and accomplishments. 3. Working with the City Clerk reviewing the current Boards and Committees vacancies to make 5 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH February 17, 2015 our citizens aware of what is available if they wish to become involved in government. 4. Tomorrow the city will have a bond sale with 5.6 million of untaxable debt and 1.1 million of taxable debt expected to capture very attractive rates based upon our financial rating. 5. Public Works continues fighting the recurring winter storms and reviewing the impact on the current budget . The City has submitted preliminary costs to FEMA for possible reimbursement with respect to the blizzard a couple of weeks ago. We continue asking the publics cooperation in clearing walks and to obey the on street parking regulations and the removal of snow around fire hydrants. 6. The city’s gas system has been reaching peak consumptions and there have been 70 call outs for frozen pipes and no heat. Mayor Hinchey called for citizen comment on resolutions. Jason Vincent, 77 Main St., spoke in support of resolution #2 for Connecticut Main Street Program in regard to the Reid & Hughes property. Joanne Philbrick, 10 Elm Ave., would like to see the Reid and Hughes issue go, it is long overdue with all the money that this city has spent and still nothing. Sheila Hayes, 288 Central Ave. favors the Main Street program and is happy to see it come back. It has real good benefits. David Crabb, 47 Prospect St., noted that the resolution is incomplete no money is inserted in this resolution. Mayor Hinchey declared citizen comment on resolutions closed. Upon a motion of Ald. Bettencourt, seconded by Ald. Eyberse, it was unanimously voted to adopt the following resolution introduced by Acting City Manager Bilda. RESOLVED, that the accounting firm of Blum Shapiro PC be and hereby is, appointed to perform the regular general audit for the City of Norwich (including the Board of Education, Department of Public Utilities, and Community Development) for fiscal year 2014-2015. Upon a motion of Ald. Desaulniers, seconded by Ald. Noblick, it was unanimously voted to put the following resolution on the floor introduced by Mayor Hinchey. Upon a motion of President Pro Tem Desaulniers, seconded by Ald. Bettencourt, it was unanimously voted to amend the following resolution to insert the dollar amount of “$750.00” in last paragraph. Motion passed unanimously. WHEREAS, the City of Norwich is the owner of the property located at 193-201 Main Street known as the Reid and Hughes Building; and 6 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH February 17, 2015 WHEREAS, the City of Norwich has entered into an Option Agreement with the Norwich Community Development Corporation which Option Agreement, permits the Norwich Community Development Corporation to acquire the Reid and Hughes Building from the City of Norwich, at an agreed upon price; and WHEREAS, the Connecticut Main Street Center with the support of the Connecticut Housing Finance Authority has offered to work with a consultant team, the Norwich Community Development Corporation and the City of Norwich and provide certain services as set forth in a proposed Memorandum of Understanding dated January 28,2015 attached hereto as Exhibit A; and WHEREAS, the Council of the City of Norwich finds it to be in the best interest of the City of Norwich to enter into said Memorandum of Understanding. NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF NORWICH that, acting City Manager John Bilda be and hereby is authorized and directed to enter into an execute said Memorandum of Understanding on behalf of the City of Norwich together with Mayor Deberey Hinchey as Mayor of the City of Norwich; and BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF NORWICH that, the sum of $750.00 be and hereby is appropriated from the Mayor and Counsel Project Contingency Account 01017-81000 for payment of the fee. Upon a motion of Ald. Bettencourt, seconded by Ald. Wilson it was unanimously voted to adjourn at 7:45 pm. ASSISTANT CITY CLERK 7