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