Selectmen Hear About Sewers, Economic Development Issues

By John Voket

The Board of Selectmen received information about the anticipated benefits of further developing public sewers in the Hawleyville section of town during a regular meeting September 17. In addition, selectmen unanimously approved a resolution requesting a half-million-dollar grant from the state that would be used to complete a section of sidewalk in Sandy Hook Center, as well as providing nominal reimbursements to businesses that undertook “streetscape” improvements at their own expense.

The board also unanimously approved an application by developer Michael Burton for benefits under the town’s Business Incentive Plan, which sent that application to the Legislative Council for review and final approval.

Public Works Director Fred Hurley was on hand to update the officials with changes to information he first presented to the board last spring, which indicated there could be as much as a $1.5 million short-fall between the costs for development of new sewer line extensions in Hawleyville, versus what the town could expect to recoup in related fees and assessments from the project.

Mr Hurley, who also advises Newtown’s Water and Sewer Authority, said he always looks at “whether or not having sewers is costing us development.” He explained that since the spring, an appraisal firm has indicated that recent revaluations of existing commercial properties and the prospect of developing the area as a “sewer district with mandatory hookups” are “significant game changers.”

He said new assessments on previously undervalued undeveloped commercial land have increased by about $3.2 million. That would have a direct correlating value for sewer assessments, which Mr Hurley said would generate $509,568 more than anticipated in the spring.

The public works chief also said commercial property values have increased about seven percent since the last sewer benefit analysis in 2002, which would add another $137,053 in revenue. An increase in the residential rate for mandatory sewer hookups increased from $13,000 to $15,000, providing an additional $80,000 revenue gain.

Another $14,000 would come from an increase per pad at a Hawleyville trailer community tied to the elevated commercial assessment hike, Mr Hurley said. Selectman Will Rodgers expressed concern that outside parties might question those valuations, however, and Mr Hurley agreed that the outcomes of any assessment appeals is an unknown.

Despite that unknown, he advised the selectmen that consideration of a sewer development project in the area is advised. “Is the big project worth going forward? I think the answer is ‘yes.’”

Sewer Capacity Benefit

Town Development Director Elizabeth Stocker was on hand, and told selectmen that all of the frontage on Route 6 in the area of the proposed development is zoned for commercial use.

“Commercial zoning with increased sewer capacity increases the zoning potential by increasing coverage allowances and the number of stories [a commercial building could be],” she said, adding that any development of multifamily housing in the area would be an added revenue benefit.

“Numerous studies all led to less cost and more revenue from service to that particular type of housing [development],” Ms Stocker added.

Mr Hurley said even with the unknowns, increasing sewer access in the area is worth exploring.

“Historically, sewers have generated development,” he said citing sewer installations in the Newtown Borough, “which generated $100 million to $200 million [in previously unanticipated] commercial development,” he said.

First Selectman Pat Llodra reminded the board that the town has an obligation to find ways to lift the significant property tax burden from private singe-family homeowners, and that currently, commercial properties account for only seven percent of the property taxes collected in town.

“If we’re not willing to challenge that, it will not change,” Mrs Llodra said. “We have to open our minds to an area of town that is viable for development — this is the last exit off Interstate 84 that remains undeveloped.”

In other news, the selectmen unanimously approved a resolution supporting Ms Stocker move to apply for a $500,000 Main Street Investment Fund grant. She told selectmen that if awarded, $350,000 of the grant could be used to assist eligible commercial property owners in Sandy Hook, who have made various property improvements that enhance the overall streetscape and image of the village district on lower Church Hill, Glen, and Riverside Roads and Washington Avenue.

While the grant is accessible for this purpose, its distribution would be handled by the town.

Church Hill Sidewalk

Ms Stocker said the balance of the grant, if awarded, would be used to supplement an existing sidewalk plan that would extend the pedestrian walkways between Dayton Street and the Interstate 84 ramps for Exit 10.

While Selectman James Gaston and Mrs Llodra noted that they would also like to see the completion of sidewalks up Church Hill Road to Main Street at the flagpole, Mr Gaston wondered if the Borough of Newtown could apply for a grant as a separate municipal entity for that project.

Ms Stocker said she would further research that possibility, while at the same time ensuring that such an application would not bump or jeopardize the current application process. The approved resolution supporting the $500,000 grant went to the council for further discussion and approval.

During the discussion, Ms Stocker noted that providing such reimbursements to individual property owners is also part of the town’s Business Incentive Program (BIP), but that it remains an unfunded aspect of the program. Mr Rodgers noted that he would like to see such a program funded first by state grants before any local taxpayer funds are designated for that aspect of the BIP.

Discussion segued into the board’s consideration of an application to the viable aspect of the BIP for Mr Burton, related to his redevelopment of the historic structure at 107 Church Hill Road. That request first came before the town’s Economic Development Commission in 2008, at which time it was postponed until substantial redevelopment was completed at the site.

Mr Burton said he has made a $2.3 million investment to preserve the existing structure, versus seeing that structure razed and replaced with a contemporary office or mixed-use building. That project is more than two-thirds complete, according to the application, and the first phase of the project — the primary redeveloped structure — is fully occupied with commercial tenants.

In his application, Mr Burton requests a total property tax abatement of $1,865 per year for three years. That represents 25 percent of the increase in the property’s commercial assessment.

The application states that assessment increased from $418,190 to $724,240. The application was approved by the selectmen and sent to the council for final approval.