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03/10/2022 11:00 PMThe Town of Branford will continue offering real estate tax abatements for the property containing Parkside Village 1, which is poised for redevelopment for low-to-moderate income families. The property, located at 115 South Montowese St., is owned by Branford Housing Authority (BHA). A vote by the Representative Town Meeting (RTM) supported continuing a long-standing tax abatement arrangement, for which no formal record had been located until recently; intiated by the Town in 1974 with BHA.
After a lengthy discussion, by a roll call vote of 20 – 5, the Representative Town Meeting (RTM) voted March 9 to approve a cooperation agreement between BHA and the Town of Branford for an abatement of real estate taxes for a period of 20 years, with two 10-year extensions upon approval by the Board of Selectmen. BHA is an entity authorized by state law that was formed at the option of the Town of Branford. Members are appointed by the Board of Selectmen. BHA has purview over Parkside Village 1 and Parkside Village 2 on Block Island Road.
The decision arrived by majority vote of the RTM following discussion where some concerns were raised, including whether the property developer, Beacon Communities (MA) would be the beneficiary of the tax abatements.
BHA chair Robert Imperato explained to the RTM that the tax abatement will only benefit BHA; and will continue some 50 years of abatements which have benefited BHA.
"Really, who benefits from this is Branford Housing Authority. We seem to be going down a path where it's about Beacon. It's not about Beacon. It's about the Branford Housing Authority," said Imperato, speaking to the full RTM ahead of the vote. "It's been here for 50 years as abatement, and we shouldn't be doing anything else but continuing on with that."
Beacon's redevelopment of Parkside Village 1 falls under the state's affordable housing statute (§ 8-30g) and will bring in a 67-unit, multi-family development in a three-story building. Parkside Village 1 was originally built in 1974, with 40 one-bedroom and 10 studio units to provide affordable housing to Branford senior citizens and adults with disabilities.
"It's going to again house low- to moderate-income folks that comply with the department of housing and the federal statutes," said Imperato of the redeveloped Parkside Village 1. "We're not doing anything different than we've done in the past. What's going to happen is the town is going to get a brand-new facility, state of the art, where these folks are going to enjoy a better lifestyle. The benefit really runs to the housing authority. We own the dirt underneath it – the property – and we own the improvements. So I don't understand why folks are thinking there's two separate entities that are going to own this. Let me make it clear: the Branford Housing Authority will own both the land and the improvements."
Rep. Peter Black (R- District 3) said he would be voting against the abatement due to the financial impact; which he said was $75,000 per year; and due to the fact that, "...there are other affordable housing complexes in town which pay taxes." He noted Rice Terrace pays $150,000 annually and non-profit Rosenthal Gardens pays $16,000 annually, among the other affordable housing complexes in town which are also paying property taxes.
Rep. Carolyn Sires (D, District 5) said while she had no objection to the redevelopment project; she felt Branford's tax payers should not be burdened with this tax abatement; especially in "a time of hyperinflation."
In response to a question from Black regarding the length of the ground lease for the redevelopment, Annika Singh Lemar, counsel for BHA, explained, "It is a 98-year lease. The deed restriction with the state runs for 40 years. The affordability requirements run beyond the 40 years, because of the restrictions in the lease, so the affordability covenants to the state also are made to the housing authority. The abatement before you, however, is 20 [years] plus 10 plus 10, so it lines up with the 40–year regulatory agreement with the state. But it's a 98-year lease to the housing authority."
Lemar also clarified the lease is between owner/landlord BHA and the Parkside 1 redevelopment owner/entity limited liability company (LLC).
Town Attorney Bill Aniskovich answered a question from Rep. Tracy Everson (D-District 5) regarding why the abatement request was being brought before the RTM, as she had been given to understand the RTM has no authority over BHA.
Aniskovich said that while the operation of BHA is beyond the scope of the authority of the RTM, the granting of tax abatements is within the authority of the RTM. He also outlined that enabling legislation in state statues allows for a town to abate taxes that would be paid by the fee owner of land and improvements; so long as that abatement is related to the provision of low- and moderate-income housing. He noted there is, as well, as a statute with the phrase "...solely for low- and moderate-income housing." With at least 7 housing authority projects in the state operating in very similar ways under that definition, "...therefore, we concluded that this item, legally, in content and in form, is properly before you, as a matter of law," said Aniskovich.
By roll call vote, the 20 RTM members voting to approve the tax abatement were Maryann Amore (D, District 4); Tricia Anderson (R, District 1), Judith Barron (D, District 1), Josh Brooks (D, District 2), Don Conklin (R, District 5), Tracy Everson (D, District 5), Linda Erlanger (D, District 3), Kevin Healy (R, District 7); Peter Hentschel (D, District 2), Chris Hynes (R, District 2), Ray Ingraham (R, District 5), Donna Laich (D, District 7); Barbara Maresca (R, District 7), Edward Prete (R, District 6), Marc Riccio (R, District 6), Ram C. Shrestha (D, District 4), Chris Sullivan (D, District 6), Clare Torelli (D, District 1), Victoria Verderame (R, District 4) and Charles Witkowski (R, District 4).
Voting against were Anthony Alfone (R, District 6), Peter Black (R, District 3), Carolyn Sires (R, District 5), James Stepanek (R, District 4) and Frank Twohill (R, District 1).