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Under the Revised State of Connecticut City and Town Development Act, effective Oct 1, 2016, Connecticut Municipal Officials are no longer required to hold a referendum prior to voting to Lend money to those who cannot obtain financing from banks or othe

Under the Revised State of Connecticut City and Town Development Act, effective Oct 1, 2016, Connecticut Municipal Officials are no longer required to hold a referendum prior to voting to Lend money to those who cannot obtain financing from banks or other traditional lenders.  Read Much More Below 

 

 

 

October 9, 2016

 

 

From:  The Federation of Connecticut Taxpayer Organizations
Contact:  Susan Kniep, President
Website: 
http://ctact.org/
Email: fctopresident@aol.com
Telephone: 860-841-8032

 

 

CONNECTICUT TAXPAYERS 

 

 

 

EFFECTIVE OCT 1, 2016, YOUR LOCAL ELECTED OFFICIALS WERE GRANTED EXTENSIVE POWERS BY THE STATE LEGISLATURE UNDER

 

 

THE STATE OF CONNECTICUT

CITY AND TOWN DEVELOPMENT ACT

 

 

WHILE DENYING YOU

A VOTE AT A PUBLIC REFERENDUM,

YOUR LOCAL LEGISLATIVE BODY CAN

APPROVE A RESOLUITION TO

 

 

 

 Acquire, develop, and improve property,

 

*********

 

Lend money to those who cannot obtain

 

financing from banks or other

 

traditional lenders,

 

  

*********

 

Convey property to private developers,

 

 

*********

 

Grant a 100% property tax exemption for up

 

to 20 years for property developed

 

under the act.

  

*********

 

 

You can view the Act in its entirety at

 

https://www.cga.ct.gov/current/pub/chap_114.htm#sec_7-488

 

 

Included within the Table of Contents are

 

Sec. 7-488. Power of municipality to make loans

 

 

Sec. 7-491. Issuance of notes and bonds and much more.

 

 

Sec. 7-495. Municipal default or noncompliance. Appointment of trustee.

 

 

 

 

Click PA 16-133 where you will find an explanation of the revisions of the Act to include redefining the property affected.  Instead of property carrying a Blight designation as contained within the Original Act, under the Revision any and all property within a municipality could be impacted.

 

And of course the most relevant question is why would any Town consider

 

Lending money to those who cannot obtain

 

financing from banks or other traditional

 

lenders!?!?!

 

 

Read the Summary below to get a clearer understanding of these new powers your local elected officials have.  If you are concerned you might ask your State Legislators who voted for the Revisions – Why would they rob you of your right to cast your vote at a Referendum on such an important issue!!!!

 

 

ALSO PLEASE READ THE FOLLOWING WHICH IS

 

CONTAINED ON THE STATE WEBSITE

 

 

 

PA 16-133sHB 5484

Planning and Development Committee

 

AN ACT CONCERNING THE CONNECTICUT

 

CITY AND TOWN DEVELOPMENT ACT

 

 

SUMMARY: This act relaxes requirements for municipalities to use the economic development authority granted by the Connecticut City and Town Development Act.

 

 

By law, the legislative body of a municipality seeking to use this authority must adopt a resolution determining that specific conditions exist in the municipality.

 

Under prior law, the resolution did not become effective unless it was subsequently submitted to the municipalitys electors and approved by them in a referendum. The act makes the submission to the electors optional, rather than mandatory.

 

 

The act also broadens the conditions under which a municipality may implement the development acts authority. Prior law required the resolution to include, among other things, a finding that the municipality contains blighted and deteriorated conditions. The act instead requires it to include a finding that (1) parts of the municipality contain these conditions or (2) the municipality would substantially benefit from commercial or residential property renovation, rehabilitation, or construction.

 

 

Prior law also required municipalities to include a finding that the private sector is not meeting the municipalitys need for housing, employment, and blight reduction. Under the act, municipalities may include an alternative finding that the private sector is not meeting the need for commercial or residential property renovation, rehabilitation, or construction.

 

 

 

EFFECTIVE DATE: October 1, 2016

BACKGROUND

City and Town Development Act

 

The Connecticut City and Town Development Act (CGS 7-480 et seq. ) allows municipalities to (1) acquire, develop, and improve property; (2) convey property to private developers; and (3) lend money to those who cannot obtain financing from banks or other traditional lenders. Municipalities may grant a 100% property tax exemption for up to 20 years for property developed under the act. By law, a resolution to use the acts authority is valid for up to five years and may be reauthorized.

 

https://www.cga.ct.gov/2016/SUM/2016SUM00133-R01HB-05484-SUM.htm

 

 

 

 CHAPTER 114

CONNECTICUT CITY AND TOWN DEVELOPMENT ACT

Table of Contents

Sec. 7-480. Short title.

Sec. 7-481. Declaration of legislative policy.

Sec. 7-482. Definitions.

Sec. 7-483. Powers granted to municipalities.

Sec. 7-484. Actions to be undertaken by means of separate resolutions.

Sec. 7-485. Required municipal findings and determination. Mandatory referendum.

Sec. 7-486. Delegation of powers.

Sec. 7-487. Laws governing city and town development.

Sec. 7-488. Power of municipality to make loans.

Sec. 7-489. Sale, lease, disposition and use of development property.

Sec. 7-490. Imposition and collection of facility charges.

Sec. 7-491. Issuance of notes and bonds.

Sec. 7-492. Capital reserve fund established. Petition. Referendum.

Sec. 7-493. Bonds and notes to be special obligation of municipality. Applicability of statutory debt limitation.

Sec. 7-494. Municipal moneys to be deposited in separate accounts. Annual audits.

Sec. 7-495. Municipal default or noncompliance. Appointment of trustee.

Sec. 7-496. Notes and bonds made securities.

Sec. 7-497. Income from notes and bonds tax-exempt; exception.

Sec. 7-498. Development property may be tax-exempt.

Sec. 7-499. Agreement with bond holders.

Sec. 7-500. Exclusive procedure for issuance of bonds.

Sec. 7-501. Competitive or public bidding requirements.

Sec. 7-502. Applicability of payment bond, prevailing wage and other employee benefit laws.

Sec. 7-503. Chapter grants no authority for municipality to acquire, own, develop or improve real property outside its borders.

 

Continue your review at https://www.cga.ct.gov/current/pub/chap_114.htm#sec_7-488