Town of New Milford, CT Article IX Tax Deferral

§ 19-44 Preamble; general findings; statutory authority.

[Ord. of 6-4-2003]

Whereas, the Connecticut General Assembly has authorized municipalities to fix assessments for construction or improvements to real property in accordance with the provisions of Section 12-65b of the Connecticut General Statutes; and whereas the deferral of assessment increases attributable to new construction or improvements will encourage economic development within the Town of New Milford and the continued economic vitality of the Town; now, therefore, in accordance with Section 12-65b of the Connecticut General Statutes, the Town does hereby provide by ordinance for the deferral of assessment increases attributable to construction or improvements to real property within the Town of New Milford as specified herein.

§ 19-45 Application and eligibility.

[Ord. of 9-28-2015; Ord. of 7-13-2020]

An application to the Town for an abatement of assessment increases for real property or airspace attributable to all new improvements thereon or therein, and to be constructed thereon or therein, may be made by any party owning or proposing to acquire an interest in real property, or any party owning or proposing to acquire an interest in airspace, or any party who is the lessee of, or who proposes to be the lessee of, air space in such a manner that the air space leased or proposed to be leased shall be assessed to the lessee pursuant to Section 12-64 of the Connecticut General Statutes. In order to be eligible for the benefits provided by this section, a completed application form available from the Economic Development Director, or designated person, must be submitted to the Department, and upon receipt of a report from the Tax Assessor, the Town Council must expressly find, and recite for the record, that:

(a) The applicant proposes to use the construction of improvements to real property (or property subject to air rights) for the following principal uses where allowed in zoning districts in the Town of New Milford:

(1) If the real property is located in any business or industrial district, for manufacturing, assembly, storage or distribution uses, technology, offices, medical or health, hotel, hospitality, recreational facilities or entertainment facilities, transportation facilities, assisted living, or residential nursing care pursuant to Town zoning regulations; or

(2) Retail, restaurant, permanent residential use, assisted living, residential nursing care, hotel, hospitality, recreational or entertainment facilities, transportation facilities, office, technology and medical uses, or mixed use, located solely in the Village Center District.

(b) The subject real property is a qualified brownfield as defined by Connecticut General Statutes § 32-760(2) as set forth in § 19-47.

(c) The subject real property meets the definition of a blighted property and has been designated blighted by the Blight Prevention Board pursuant to Chapter 10 of the Town of New Milford's Code of Ordinances.

(d) The subject real property is located in a designated revitalization zone, and the construction of improvements is in keeping with the adopted revitalization plan.

(e) The applicant has, in the sole and exclusive judgment and discretion of the Town Council, provided sufficient evidence of the investment made or committed to the property for the purposes set forth in Subsection (a) or (b), including but not limited to receipts, invoices, and estimates. The total investment made or committed to property qualified under Subsection (b) shall not be limited to the cost of remediation.

(f) Neither the property owner nor the applicant is delinquent in the payment of any taxes owed to the Town, nor does the applicant have a history of tax delinquency in any municipality.

(g) The applicant agrees to enter into a written agreement with the Town fixing the assessment of the real property, airspace and all improvements thereon or therein and to be constructed thereon or therein upon such terms and conditions are provided for herein and therein.

(h) It is in the best interest of the Town of New Milford to grant the benefit to the particular applicant.

The determination to grant or deny the benefits authorized by this article shall be in the sole judgment and discretion of the Town Council.

§ 19-46 Application procedure.

[Ord. of 6-4-2003; Ord. of 7-13-2020]

(a) All applications shall be submitted to the New Milford Economic Development Director or designated department head on forms supplied by him/her. Each such application shall include the applicant's estimate of the cost of the construction or improvements subject to deferred assessment hereunder. The application shall include a site plan, proposed exterior facade elevations, interior layouts and other specifications, drawn to scale, indicating all existing and proposed construction and other improvements sufficient for the Tax Assessor to determine the assessment increase of the property after completion.

(b) The Economic Development Director or designated department head and Tax Assessor, after consultation with the Building Official, shall review each application submitted to him/her and shall forward each such application to the Town Council within 30 days of receipt, together with his/her report concerning whether or not the application meets the eligibility criteria contained in this section. Such report shall include specific reasons in support of the findings expressed therein.

(c) Upon receipt of an application and report from the Economic Development Director or designated department head, the Town Council shall either approve the application, reject the application, or return the application to the Economic Development Director or designated department head for further information within 30 days. The Town Council shall state its findings for approval or its reasons for rejection upon the record. The applicant may file a revised application with the Economic Development Director or designated department head which addresses the reasons for rejection by the Town Council.

(d) In the event of approval, the Town Council shall adopt a resolution authorizing the Mayor to enter into an agreement by the owner or lessee of the property as specified herein.

§ 19-47 Standard offer.

[Ord. of 9-28-2015; Ord. of 7-13-2020]

Notwithstanding the provisions of § 19-49 of this article, all qualified applicants, upon Town Council approval, may receive an abatement offer at the discretion of the Town Council, which, expressed as a percentage of the full additional assessment that would otherwise apply, shall be as set forth below:

Cost of Improvement	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7
>$50,000	100%	100%	100%	100%	100%

NOTES:
*	Consideration will be given to the overall economic impact of the project, including but not limited to the job creation and retention commitments as well as the wages and benefits of those jobs.

§ 19-48 Effective date of abatement.

[Ord. of 6-4-2003; Ord. of 9-28-2015]

(a) Abatement shall be effective upon completion of construction or improvements, upon certification by the Tax Assessor as hereinafter set forth, and upon issuance of a certificate of occupancy, and, in the case of new construction, after any assessment is applied for partial and/or full completion of the improvements. Abatement will be effective for the Grand List Year following issuance of the certificate of occupancy and applied on a pro rata basis, so that any scheduled first-year benefit, commencing with certificate of occupancy issuance, will be continued from one assessment year to the next, as required, and for subsequent assessment years as well until the scheduled benefit expires. Abatement continuance shall be subject to the default provisions set forth in § 19-49(c) of this article and the contingencies set forth in § 19-49(d).

(b) Abatement shall be subject to retraction upon confirmation that the subject property is not or has not been utilized in conformity with the authorized uses set forth or within the zones mandated for said use by § 19-45(a)(1) or (2). Said retraction of abatement shall be retroactively effective to the date upon which the property ceased to be used in conformity with § 19-45(a)(1) or (2).

§ 19-49 Deferral application and agreement.

[Ord. of 6-4-2003; Ord. of 9-28-2015; Ord. of 7-13-2020]

Upon the approval of an application for tax deferral for the uses set forth in § 19-45, the Town Council shall enter into individual deferral agreements pursuant to the standard offer and terms contained in §§ 19-45, 19-47, and 19-48, the provisions of this § 19-49 and on such other terms and conditions the Town Council shall determine and require in its sole discretion. The Town Council reserves the right, upon the applicant's request to enter into individual deferral agreements with individual applicants for deferral schedules other than the standard offer, within statutorily authorized limits, as may be set forth in Section 12-65b of the Connecticut General Statutes, and for all the uses set forth in § 19-45(a) of this article. Agreements shall be predicated upon a finding by the Town Council, with input from the Mayor and Tax Assessor, that it is in the best interest of the Town to grant the benefit and that the public benefit to the Town of New Milford likely to result from the proposed construction or improvements is sufficient to warrant special consideration.

(a) The application to be submitted by the applicant for such deferral shall identify the deferral incentive contained in §§ 19-45, 19-47, and 19-48 as consideration for which the applicant intends to commence the project.

(b) The assessment deferral agreement to be signed by the applicant and the Mayor on behalf of the Town shall refer to and incorporate the application as approved by the Town Council, shall reflect the assessment on the property immediately prior to the commencement of construction, and shall specify the percentage of deferral which shall begin with the certification of the Tax Assessor together with issuance of a certificate of occupancy for the improvements to be constructed, and, in the case of new construction, after any assessment is applied for partial and/or full completion of the improvements. Said deferral agreement will be effective for the Grand List Year following issuance of the certificate of occupancy, pursuant to § 19-48(a).

(c) The assessment deferral agreement shall provide that, upon completion of construction or improvements made in accordance with the terms of the agreement, and upon certification by the Tax Assessor, as hereinafter set forth, and upon issuance of the certificate of occupancy, and, in the case of new construction, after any assessment is applied for partial and/or full completion of the improvements, the increase in the assessment on the property due to such construction or improvements shall be deferred in accordance with a statutorily authorized schedule and this article, as determined by the Mayor and approved by the Town Council.

(d) The assessment deferral agreement shall provide that such construction or improvements shall be completed by a date fixed in such assessment deferral agreement. In the event that on the date so fixed for completion the Tax Assessor has denied certification that the construction or improvements have been performed in accordance with the eligibility criteria as set forth in this section and in accordance with the terms of the assessment deferral agreement, or at any time if the Tax Assessor determines that the owner or lessee of the property is in default under the terms of said agreement, and has failed to cure said default after notice and an opportunity to do so, the agreement shall terminate. In the event of such termination, the owner or lessee of the property, as herein provided, shall be liable for any increase in taxes for which he would have been liable in the absence of such agreement. The agreement shall further provide that a property owner or lessee, as herein provided, may apply to the Tax Assessor for an extension of time in which to complete the construction or improvement, which, for good cause shown, the Tax Assessor may approve, but in no event shall such extension of time exceed a period of one year.

(e) The assessment deferral agreement shall further provide that the agreement is contingent upon the following conditions:

(1) That, in addition to the certification requirement of § 19-49(b) of this article, the property shall be subject to inspection and certification by the Building Inspector and Health Director as being in conformance with such provisions of the state building and health codes and local housing codes as may apply, and by the Zoning Enforcement Officer, to ensure conformance with the zoning regulations, as required.

(2) The assessment deferral shall continue only as long as the use of the property remains a use authorized by §§ 19-45 and 19-49 of this article.

(3) That the assessment deferral shall cease if there is any delinquency in the payment of taxes on the property.

(4) That the assessment deferral shall cease upon the sale or transfer of the improvements unless the new owner or lessee, as the case may be, of such property shall enter into a new contract with the Town incorporating all the terms of the agreement with the former owner or lessee, as herein provided.

(5) That revocation of the abatement for breach of any term or condition of the deferral agreement shall be summary at a regular or at a special meeting of the Town Council called in accordance with the procedural requirements of the Charter.

§ 19-50 Additional provisions.

[Ord. of 6-4-2003]

(a) The Tax Assessor, after consultation with the Building Official, shall have the sole responsibility for determining the cost and value of the construction or improvements subject to a deferral of assessment increases hereunder.

(b) A copy of any assessment deferral agreement entered into pursuant to the provisions of this article shall be forwarded to the Tax Assessor, who shall adjust his records accordingly.

(c) The Tax Assessor shall forward a copy of its certification that the construction or improvements have been completed in accordance with the assessment deferral agreement to the Mayor. In the event that the Tax Assessor denies such certification, it shall send a copy of its denial to the Mayor (who shall inform the Town Council), and shall readjust his tax records in accordance with the provisions of this section.

(d) Any agreement entered into under the provisions of this article shall be recorded on the land records of the Town.

(e) The Tax Assessor is authorized to establish written procedures and technical specifications for the administration of this section.

(f) Properties upon which construction or improvements commenced prior to the adoption of this article, but which have not yet received a certificate of occupancy, may be eligible for the benefits set forth in this article, provided that they meet the requirements of and apply in accordance with the provisions of this article.