2008-09-02
Redevelopment Agency Meeting – 9/02/2008
BERLIN REDEVELOPMENT AGENCY
Tuesday, September 2, 2008
240 Kensington Road, Berlin, CT
Town Council Chambers @ 6:00 p.m.
Minutes
Mayor Adam Salina called the Berlin Redevelopment Agency meeting to order at
6:07 p.m.
Members present: Councilor Dacey, Councilor McGee,
Councilor Morelli, Councilor Rochette,
Mayor Salina
Members absent: Councilor Carey, Councilor William Watson, III
1.Approve minutes of July 29, 2008
Councilor Dacey moved to accept the minutes of July 29, 2008 as presented.
Seconded by Councilor Rochette.
Those voting in favor were: Councilor Dacey, Councilor McGee,
Councilor Morelli, Councilor Rochette
Mayor Salina.
Vote being 5-0. (MOTION CARRIED)
2.Discussion of the Sherwood Tool Project
?
Review of Redevelopment Plan
?
Referral of Redevelopment Plan to the Planning and Zoning
Commission and the Housing Authority
?
Discussion of Environmental Condition of the Site
?
Discussion of Financial Assistance to the Project
James Mahoney, Economic Development Director explained that the reason we
have this Redevelopment Plan is due to the uniqueness and age of the Sherwood
Tool project and properties in terms of their potential of having a positive benefit
to the Town. The Town is faced with a choice between having a quality
redevelopment facility or having a large vacant property being a negative area in
the Town. The Town is very fortunate that CIL has purchased the property. The
total approximate cost is 2.6 million dollars for the environmental remediation
and they are asking for 1.1 million dollars from the Town to help with the cost to
get the project going in a timely manner.
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Redevelopment Agency Meeting – 9/02/2008
James Mahoney explained that there is a statute in the C.G.S. that states the
components of a Redevelopment Plan. It requires that the Plan contain a
discussion of the existing buildings in the area, existing utilities, etc. and the
proposed redevelopment. The CIL site plan for the project has already been
approved by the Planning and Zoning Commission and it has gone through the
Inland/Wetlands and Water Courses Commission’s process. The next step is a
public hearing on the Redevelopment Plan for the project, then back to Planning
and Zoning Commission and to the Berlin Housing Authority for their approval.
Mr. Mahoney then gave an overview on the project. He explained that there are
three properties involved: 1 Main Street, 10 Main Street and 0 Maple Street
(parking lot). The Sherwood Mill is approximately 100,000 sq. ft. and the
Sebethe River runs along the back of the building. The structure is a narrow
wood frame structure with column space and ceiling heights that were designed
for manufacturing use but are not longer efficient for that use. There is a metal
warehouse located next door to the mill. The mill will be reconstructed for 72
condominium units and the one-story building across the street, which is 35,000
sq. ft., will be demolished and 14 new condominium units will be constructed in
that location.
Marty Legault, President of CIL, stated that they will not be doing a demolition of
the Mill buildings on the Sherwood Tool side, only the one-story building across
the street and a couple of the out buildings on the Mill site will be demolished.
He stated that there will be two parking spaces per unit. The average square
footage for the proposed Sherwood Mill condominiums is 1,100 sq. ft. and for the
condominiums across the street it will be 1,600 sq. ft.; and they will all be
handicapped accessible.
James Mahoney added that CIL Plans to provide to the Town or the Berlin Land
Trust a conservation easement along the south side of the property to allow for a
walking trail along the brook.
John Hankins, Vice President of Fuss & O’Neill stated that they were hired by
CIL to do an environmental evaluation on the property but they were not the first
company to do an investigation on the property. They did an intensive
investigation of the soil and water to get a good understanding of the
environmental costs and the history of the site. A Phase I site investigation was
done and they discovered that it was originally a foundry and coal fill has been
found on the back slope along the river. There is some contamination of the
groundwater due to the solvents that were previously used, but it is a low
concentration and Mother Nature will take care of this issue over the long term.
John Hankins stated that the CT Property Transfer Laws applies to properties that
are in the process of being transferred and have generated hazardous waste over
the years. CIL has signed a Form Filing indicating that they would investigate
and clean up the property to meet the requirements of the CT Property Transfer
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Redevelopment Agency Meeting – 9/02/2008
Laws and DEP. He then addressed the map showing the areas and the degrees of
contamination on the property and how they plan to clean it up. He presented
sketches of the areas that will be paved and landscaped. The clean up plans are
currently in the review process with the CT DEP. The total cost of the
environmental remediation is 2.4 million dollars; $375,000 is for testing,
$1,985,000 for soil remediation and $50,000 for removal of lead paint and
asbestos.
James Mahoney gave an overview of the bond issue. He stated that they are
anticipating that it will be a tax exempt issue. They have estimated an interest
rate of 4.5% after discussing it with the bank and assuming that the Town will be
issuing the bond itself. Currently the Town is receiving $40,000 in taxes on the
property and Mr. Mahoney is projecting that the taxes after the project is
completed will be $280,170 in real property and additional taxes from motor
vehicles. He also did a 10-year amortization on the possible bond issue for the
project and with the interest rate at 6% he is projecting a net increase in taxes in
excess of debt service of $82,911. Under this scenario he estimates that the
Town will be dedicating 65% of the increase in tax revenue to the bond issue. The
Town has also applied for a State of CT Brownsfield Pilot grant of $550,000 and
if received it will bring the Town’s contribution to the project down significantly.
He feels that this project will be a good investment for the Town.
Councilor Dacey inquired if the Town has any liability as far as the remediation
on that property.
James Mahoney explained that the Town does not own the property and CIL has
signed on with the DEP as the responsible party for the remediation.
Councilor Dacey asked as to when the Town would be able to go out to bond.
Marty Legault stated that it all depends on how long the DEP takes to approve the
remediation plan. They have been told that it could be anywhere from six weeks
to nine months.
Councilor Dacey asked how long it would take to complete the project once they
obtain DEP approval.
Marty Lagault stated that it would take approximately 36 months from the time
that they close with bank.
Mayor Salina stated that CIL has taken on a tremendous project and commitment
to the community that will also bring in additional taxes for the Town.
Councilor Morelli moved to schedule a public hearing for October 7, 2008 at 6:00
p.m. for the Sherwood Mill Properties Redevelopment Project.
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Redevelopment Agency Meeting – 9/02/2008
Seconded by Councilor Dacey.
Those voting in favor were: Councilor Dacey, Councilor McGee,
Councilor Morelli, Councilor Rochette
Mayor Salina.
Vote being 5-0. (MOTION CARRIED)
Councilor Morelli moved to refer the Sherwood Mill Properties Redevelopment
Project Plan to the Planning and Zoning Commission and to the Berlin Housing
Authority.
Seconded by Councilor Rochette.
Those voting in favor were: Councilor Dacey, Councilor McGee,
Councilor Morelli, Councilor Rochette
Mayor Salina.
Vote being 5-0. (MOTION CARRIED)
3. Other Business
4. Adjournment
Councilor Dacey moved to adjourn the meeting at 6:54 p.m.
Seconded by Councilor Morelli.
Those voting in favor were: Councilor Dacey, Councilor McGee,
Councilor Morelli, Councilor Rochette
Mayor Salina.
Vote being 5-0. (MOTION CARRIED)
Submitted,
Kathryn J. Wall
Clerk of the Meeting ______________________________
Adam Salina, Mayor
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