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2004-05-10 TOWN OF BERLIN ECONOMIC DEVELOPMENT COMMISSION MINUTES OF MONDAY, MAY 10,2004 Approved Minutes MEMBERS IN ATTENDANCE: Edward Egazarian, Chairman Ronald Stack, Treasurer Peter Campanelli James Mahoney, Economic Development Director Juliet Benjamin, Secretary Dave Cyr Lawrence Siembab ABSENT: Patricia Maerz Christine Fairwood GUESTS: Myles Dempsey, Sr., Tech Air Myles Dempsey, Jr., Tech Air Katherine Fuechsel, Executive Dir. Berlin Chamber of Commerce Chairman Egazarian called the meeting to order at 7:00 P.M. 1. AUDIENCE OF CITIZENS: Kate Fuechsel reviewed current events regarding the Berlin Chamber of Commerce. She noted that the Chamber Golf Tournament would be held on Wednesday, June 9. The Chamber will be co-chairing a table with the Economic Development Commission at the Upbeat Picnic on Thursday, May 27,2004. The Member Directory is still under construction. The "Starting a Business" Seminar was a success and Kate has been asked to do the seminar again at a future date. She also noted increased interest in new membership in the Berlin Chamber of Commerce. 2. MINUTES OF MONDAY. APRIL 12. 2004: Commissioner Stack MOVED to accept the Minutes of Monday, April 12, 2004 as written. SECONDED by Commissioner Campanelli & UNANIMOUSLY APPROVED. 3. FINANCIAL REPORT: Dir. Mahoney noted that budget accounts are on track. He is working in cooperation with the Finance Dept. on a presentation to the Towns bond rating agencies. Dir. Mahoney reviewed a list of the Capital Improvements Program Page 2 - Town of Berlin - Economic Dev. Commission - May 10, 2004 through fiscal year 2008-09, which contains proposed amounts for Economic development projects within the Town. *Chairman Egazarian asked that the Commission return to Item # 1 - Audience of Citizens to give Mr. Myles Dempsey, Sr. and Mr. Myles Dempsey, Jr., principals of Tech Air, an opportunity to address the Commission. The Dempseys are requesting to have the Commission consider increasing the amount of their proposed infrastructure loan for their new 10,000 square foot building on Christian Lane. The Messrs. Dempsey explained that cost estimates for construction have increased considerably over the last few months due to increases in steel and other building materials. They noted a projected cost for infrastructure improvements of $7,000 for a force main sewer line to be run from New Britain, $10,115 for a sewage pump station, $3,091 for electrical and telephone extension and $3,480 to connect and provide water service. They asked the Commission to consider asking the Town Council to increase the projected infrastructure loan from the Town from $10,000 to $23,686, which would completely cover the cost of infrastructure improvements. The Dempseys also noted that they are negotiating with the City of New Britain to purchase an easement for a 400 square foot section that the sewer line must cross. Dir. Mahoney noted that in addition to the $10,000 Infrastructure Loan, TechAir has been granted tax abatement for 40% in the first year, 20% in the second year and 10% in the third year. Chairman Egazarian thanked the Dempsey's for explaining their situation to the Commission and noted that the Commission would discuss their request and they could call Dir. Mahoney for the results of their decision. 4. STATUS OF LEGION SQUARE LLC PROJECT: Dir. Mahoney noted that the Inland Wetlands & Watercourses approval for the Legion Square LLC project has been appealed, but there is some question about the appeal being served within the required amount of time. Chairman Egazarian expressed concern over whether the project will go forward and be reviewed by the Planning & Zoning Commission while it is under appeal. Dir. Mahoney stated that he was unsure whether the Planning & Zoning Commission would now go forward with their review and comments. 5. PROMOTION: . Advertising in Chamber Directory - As stated in the Directors Report, the Town will be sharing the cost of a 1f4 page ad in the directory. . Central Connecticut Economic Development Alliance - Possible brokers golf event - Dir. Mahoney noted that the CCEDA Golf Event has been set for Wednesday, June 16,2004. A request for waiver of the greens fees is going to the Town Council for their consideration. . Upbeat Picnic - Dir. Mahoney encouraged all Commissioners to come out and meet the people of Berlin and participate in the Economic Development table at the Upbeat Picnic on Thursday, May 27th, from 5:00 to 8:00. Page 3 - Town of Berlin - Economic Dev. Commission - May 10, 2004 6. PLAN OF CONSERVATION AND DEVELOPMENT UPDATE: Dir. Mahoney noted that he had no update regarding the plan at this time, but formation of an Implementation Committee is still being discussed. 7. INCENTIVE PROGRAMS: . Worthington Ridge Investments LLC - Dir. Mahoney discussed the primary use of the new building. Evidently the developer plans a mixed use of commercial office and retail space. This mixture of uses will require an interpretation under the Town's Tax Abatement Policy. Dir. Mahoney noted that one way a decision can be made is based on the predominant use of the building. Chairman Egazarian stated that he was pleased with the architecture of the building. Commissioners agreed that predominant office use combined with retail fit in well with the neighborhood. Dir. Mahoney noted that another approach could be to have an evaluation of the tax incentive decision for this building made after tenants are in place. After discussion, Commissioner Siembab MOVED to resubmit the application of Worthington Ridge Investments LLC to Town Council, and to recommend approval because the majority of the building will be used for office and that it will have special benefits for the community because of its complementary design. SECONDED by Commissioner Stack & UNANIMOUSLY APPROVED. . Changes recommended by the Incentives Committee (see Directors Report) - Dir. Mahoney stated that the Town Council has accepted the recommended changes to the Tax Abatement, including adopting one schedule of 50% in year 1, 40% in year 2 and 30% in year 3. He noted that Town Council had asked whether he asks applicants if they are current with taxes on their property taxes. He felt that most people planning to develop their land try to keep their taxes paid up. Dir. Mahoney noted that the Town Council has asked the Incentives Committee for further review and consideration of the tax delinquent Issue. . Request from Tech Air - Commissioners discussed the request from TechAir for an increase in the amount of infrastructure loan for their proposed building on Christian Lane. Commissioners discussed how this project compared with other recent projects and the amount of infrastructure loans approved for each project. Commissioners also took into consideration the fact that only $25,000 is available for infrastructure loans this year. Dir. Mahoney noted that Tech Air was granted the $10,000 loan due to the fact that the force main was required. He recommended the Commission not increase the Infrastructure Loan, but instead consider using the newly approved tax abatement policy of 50% in year 1, 40% in year 2 and 30% in year 3 for this project. After discussion, Commissioner Stack MOVED to approve as a re-submittal of the application to the Town Council to recommend the increased tax abatement amounts of 50% in year 1, 40% in year 2 and 30% in year 3, tax abatement for Tech Air. Commissioners agreed Page 4 - Town of Berlin - Economic Dev. Commission - May 10, 2004 that the basis for re-submittal would be that the project has not started and therefore approvals can be revised. Motion SECONDED by Commissioner Siembab & UNANIMOUSLY APPROVED. 8. SMALL TOWN ECONOMIC ASSISTANCE PROGRAM - HERITAGE CROSSING, TOWN CENTER: Heritage Crossing - Dir. Mahoney noted that the developer is moving along with relation to the STEAP Grant from the State of Connecticut. He stated that the project has been redefined to have the grant agreement cover just remediation. The STEAP Grant is between the Town of Berlin and the State. Town Center - Dir. Mahoney noted that the McGuire Group is finishing up on the remedial action plan. A meeting with the DEP is set for Wednesday. 9. LEGISLATION: None. 10. DIRECTOR'S REPORT: Dir. Mahoney noted that the Adult Housing Plan for Beckley Road has come in for a zone change from Industrial to OT-2 and the Planning & Zoning Commission has set a date for a public hearing on the request. The developer plans to be at the next Economic Development Commission meeting with more information on number of units, etc., and more information will be available at that time. Jeske's Catering on Main St., next to Mommy & Me, is planning to open a small restaurant in the building, in addition to the catering business. The Zoning Board of Appeals approved a variance for Liberty Industries. Hunter Development's proposal for a gas station & carwash at the Newman Brothers property on the Berlin Turnpike was approved by the ZBA. They now have to go before Planning & Zoning. Dir. Mahoney plans to organize a meeting at the Kensington Fire Dept building with business owners in the Farmington Ave. & New Britain Rd. area. 11. OTHER MATTERS: Commissioner Stack noted that Kone has purchased the Dwight Foote business. He understands that there will no longer be fabrication at the building, once all existing orders have been filled. The building will be used in the future for sales and repair of cranes. Kate Fuechsel noted that on May 27 @ 10:00 a.m., Robin Morrell of Coldwell Banker will be having a ribbon cutting at their new location in the former A&S Travel building on Mill St. An Open House will also be held that evenIng. 12. ADJOURNMENT: Commissioner Stack MOVED to adjourn the meeting at 8:30 P.M. SECONDED by Commissioner Cyr & UNANIMOUSLY APPROVED. Page 5 - Town of Berlin - Economic Dev. Commission - May 10, 2004 Respectfully submitted, Juliet K. Benjamin, Secretary