§ 44-67. Real property tax abatement in connection with remediation of environmentally impacted sites.

(a)

Preamble, general findings and authority. Whereas, the Connecticut General Assembly has authorized municipalities to grant property tax abatements to owners who undertake redevelopment and remediation of environmentally impacted properties; and whereas promoting economic growth within the City of Danbury while encouraging the remediation of environmentally impacted sites represents an opportunity to further important goals deemed to be in the best interests of the City; now, therefore, pursuant to the provisions of C.G.S. § 12-81r, the City does hereby provide for the abatement of real property taxes in accordance with the further provisions hereof.

(b)

Application and eligibility. An application to the City for an abatement of all or a portion of the real property taxes due on eligible real property during a period of redevelopment and environmental remediation of the site, not to exceed a period of seven (7) years, may be made by the party owning any such property. In order for an applicant to be eligible for the benefits provided by this section, upon receipt of a report from the Coordinator of Environmental Services of the City of Danbury, the City Council must find that:

(1)

The applicant's property is in need of redevelopment or remediation as a result of environmental contamination or pollution.

(2)

The applicant proposes to conduct, or is conducting, environmental site assessment, demolition, remediation or other clean-up activities on the property in question.

(3)

The applicant is prepared to commence said activities promptly, if he has not already done so, and continue said activities during the term of the tax abatement, which shall not exceed seven (7) years.

(4)

The applicant proposes to enter into a written agreement with the City establishing, among other things, a method for determining the amount of the tax abatement to be granted during the term of the agreement. The amount of said abatement shall be determined on a quarterly basis and, subject to the limitations established in subsection (b)(5) of this section, shall be equal to the expenses incurred by the applicant for environmental site assessment, demolition, remediation, or other clean-up activities during the calendar quarter immediately preceding the due date of each quarterly real property tax payment. Each such application shall also include the applicant's estimate of the cost of the environmental site assessment, demolition, remediation or other clean-up activity upon which the tax abatement is to be based.

(5)

The amount of any tax abatement provided for hereunder shall not exceed one thousand two hundred fifty dollars ($1,250.00), per applicant, per calendar quarter, nor shall the amount of any such tax abatement in any given quarter exceed the real property tax due in said year with respect to the property which the applicant proposes to redevelop and remediate.

(c)

Application procedure.

(1)

All applications shall be submitted to the Coordinator of Environmental Services on forms supplied by said coordinator.

(2)

The Coordinator of Environmental Services shall review each application so submitted and shall forward each such application to the City Council within thirty (30) days of receipt, together with the coordinator's report concerning whether or not the application meets the eligibility criteria contained in this section. Such report shall include specific reasons in support of the findings expressed therein.

(3)

Upon receipt of an application and report from the Coordinator of Environmental Services, the City Council shall either approve the application, reject the application, or return the application to the coordinator for further information. If an application is rejected, the City Council shall state its reasons for rejection upon the record. The applicant may file a revised application with the Coordinator of Environmental Services which addresses the reasons for rejection by the City Council.

(4)

In the event of approval, the City Council shall adopt a resolution authorizing the Mayor to enter into an agreement with the owner of the property, as specified herein.

(d)

Tax abatement agreement:

(1)

The tax abatement agreement shall be signed by the owner and the Mayor and shall refer to and incorporate the application as approved by the City Council, shall reflect the environmental condition that requires redevelopment or remediation, and shall specify the period of such redevelopment and remediation which shall commence, if it has not already done so, on the date of the agreement and continue during the term thereof.

(2)

The tax abatement agreement shall provide a method for determining the amount of the tax abatement.

(3)

The tax abatement agreement shall be contingent upon the continuation of the redevelopment and remediation process with respect to the property for those purposes specified in the agreement creating such abatement and such abatement shall cease and the tax abatement agreement shall terminate upon the sale or transfer of the property for any other purpose unless the City shall have consented thereto.

(4)

The tax abatement agreement shall provide for a recapture of any tax previously abated in the event of sale, provided that such recapture shall not exceed the original amount of taxes abated and may not go back further than the date of the agreement.

(5)

The tax abatement agreement shall not apply to taxes levied under section 40-48 applicable to downtown special services district taxes.

(6)

The tax abatement agreement shall be in effect for a period of seven (7) years or until all environmental site assessment, demolition, remediation or other clean-up activities have been completed, whichever occurs first. The agreement shall also terminate if at any time the Coordinator of Environmental Services, determines that the owner of the property is in default under the terms of said agreement, and has failed to cure said default after notice and an opportunity to do so. In the event of such termination, the owner of the property, as herein provided, shall be liable for any taxes for which he would have been liable in the absence of such agreement. The agreement shall further provide that a property owner may apply to the Coordinator of Environmental Services for an extension of time in which to complete the work which, for good cause shown, the coordinator may approve, but in no event shall such extension of time exceed a period of one (1) year or extend the total time for completion beyond seven (7) years.

(7)

The tax abatement agreement shall further provide that the agreement is contingent upon the following conditions:

a.

The property shall be subject to inspection and certification by the Building Inspector and Health Director, as being in conformance with such provisions of the state building and health codes and local housing codes as may apply, and by the Zoning Enforcement Officer to ensure conformance with the zoning regulations, as required;

b.

That tax abatement shall cease if at any time during the term of the tax abatement agreement there is any delinquency in the payment of taxes or sewer or water charges or assessments on or related to the use of the property; and

c.

That the tax abatement shall cease upon the sale or transfer of the improvements unless the new owner of such property shall enter into a new contract with the City incorporating all the terms of the agreement with the former owner, as herein provided.

(e)

Miscellaneous provisions.

(1)

The Coordinator of Environmental Services shall have the sole responsibility for determining the cost of the activities to be performed pursuant to the tax abatement agreement.

(2)

A copy of any tax abatement agreement entered into pursuant to the provisions of this section shall be forwarded to the Tax Collector, who shall adjust the tax records of the City accordingly.

(3)

The Coordinator of Environmental Services shall advise the Tax Collector of the amount of the tax abatement to which the applicant is entitled in each calendar quarter during which an abatement agreement is in effect. In the event that the tax abatement agreement is terminated as a result of a default by the owner, the coordinator shall so advise the Tax Collector, who shall readjust the tax records of the City in accordance with the provisions of this section.

(4)

Any agreement entered into under the provisions of this section shall be recorded on the land records of the City.

(5)

The Coordinator of Environmental Services is authorized to establish written procedures and technical specifications for the administration of this section.

(6)

The City Council shall establish a limit on the number of applications to be approved in any fiscal year. Applications shall be processed on a first-come, first-served basis.

(Code 1961, § 18-27; Ord. No. 534, 11-5-1998)