(A) (Conn. Gen. Stat., § 12-65b). Subsequent to an affirmative vote of the Legislative Council, the town (through the Mayor) may enter into a written agreement with any party owning or proposing to acquire an interest in real property in the Town of Hamden, or with any party owning or proposing to acquire an interest in air space in the town, or with any party who is the lessee of, or who proposes to be the lessee of, air space in the town in such a manner that the air space leased or proposed to be leased shall be assessed to the lessee pursuant to Conn. Gen. Stat., § 12-64, subject to the provisions set forth below.
(B) The provisions of division (A) above shall only apply if the improvements are for at least one of the following: 1) office use; 2) retain use; 3) permanent residential use; 4) transient residential use; 5) manufacturing; 6) warehouse, storage or distribution use; 7) structured multi-leveled parking use necessary in connection with a mass transit system; 8) information technology; 9) recreational facilities; or 10) transportation facilities.
(C) Based on the cost of improvements, the Assessor shall determine the net increase in assessed value. The increased value shall be the basis of the amount of the deferral.
(D) Payback period. If the owner or lessee receiving the incentive substantially reduces its operations on its real property, attempts to assign its rights under this agreement, or sells or otherwise transfers the real estate during the relevant payback period noted above, the town may terminate the incentive program and may require full pay back of all deferred taxes. In order to maintain eligibility the town may require property owners or lessees to submit eligibility affidavits annually.
(E) Any tax agreement entered into pursuant to this policy shall be recorded in the Hamden land records and shall constitute a priority lien against the property benefited until the conditions of the tax abatement have been fulfilled and the agreement has expired. Upon default under the terms of the agreement, or material misrepresentation in the application, the taxes abated shall immediately become due and payable, with interest as provided by law, and may be liened; and the lien may be foreclosed in the same manner as provided by law for tax property liens generally.
(F) Effective date for deferrals. Assessment deferrals on real property made under this section shall commence on the October 1 Grand List following the issuance of a certificate of occupancy from the Building Department.
COST OF IMPROVEMENTS
| PERCENT DEFERRED OF THE INCREASED ASSESSMENT
| TIME PERIOD | PAY BACK PERIOD |
(for businesses not located or locating in a Neighborhood Revitalization Zone) | |||
Over $15 million | year 1 - to maximum of 70% year 2 - to maximum of 60% year 3 - to maximum of 50% year 4 - to maximum of 40% year 5 - to maximum of 30% year 6 - to maximum of 20% year 7 - to maximum of 10% | 7 years | 10 years |
$3 million to $15 million | year 1 - to maximum of 70% year 2 - to maximum of 60% year 3 - to maximum of 50% year 4 - to maximum of 40% year 5 - to maximum of 30% year 6 - to maximum of 20% | 6 years | 10 years |
$500,000 to $2,999,999 | year 1 - to maximum of 70% year 2 - to maximum of 60% year 3 - to maximum of 50% | 2 years | 5 years |
$25,000 to $499,999 | year 1 - to maximum of 50% year 2 - to maximum of 40% year 3 - to maximum of 30% | 3 years | 5 years |
(Ord. 428, passed 12-4-00; Am. Ord. 446, passed 10-1-01; Am. Ord. 510, passed 2-7-05; Am. Ord. 562, passed 7-7-08; Am. Ord. 613, passed 1-3-12; Am. Ord. 654, passed 1-5-15)
Statutory reference:
Authority, see Conn. Gen. Stat., § 12-65b