Table of Contents Sec. 8-186. Declaration of policy. It is found and declared that the economic welfare of the state depends upon the continued growth of industry and business within the
state; that the acquisition and improvement of unified land and water areas and vacated
commercial plants to meet the needs of industry and business should be in accordance
with local, regional and state planning objectives; that such acquisition and improvement
often cannot be accomplished through the ordinary operations of private enterprise at
competitive rates of progress and economies of cost; that permitting and assisting municipalities to acquire and improve unified land and water areas and to acquire and improve
or demolish vacated commercial plants for industrial and business purposes and, in
distressed municipalities, to lend funds to businesses and industries within a project
area in accordance with such planning objectives are public uses and purposes for which
public moneys may be expended; and that the necessity in the public interest for the
provisions of this chapter is hereby declared as a matter of legislative determination. Sec. 8-187. Definitions. As used in this chapter, (1) "municipality" means a town,
city, consolidated town and city or consolidated town and borough; (2) "legislative
body" means (A) the board of selectmen in a town that does not have a charter, special act
or home rule ordinance relating to its government or (B) the council, board of aldermen,
representative town meeting, board of selectmen or other elected legislative body described in a charter, special act or home rule ordinance relating to government in a city,
consolidated town and city, consolidated town and borough or a town having a charter,
special act, consolidation ordinance or home rule ordinance relating to its government;
(3) "development agency" means the agency designated by a municipality under section
8-188 through which the municipality may exercise the powers granted under this chapter; (4) "development project" means a project conducted by a municipality for the
assembly, improvement and disposition of land or buildings or both to be used principally for industrial or business purposes and includes vacated commercial plants; (5)
"vacated commercial plants" means buildings formerly used principally for business or
industrial purposes of which more than fifty per cent of the usable floor space is, or
which it is anticipated, within eighteen months, shall be, unused or substantially underutilized; (6) "project area" means the area within which the development project is
located; (7) "commissioner" means the Commissioner of Economic and Community
Development; (8) "planning commission" means the planning and zoning commission
designated pursuant to section 8-4a or the planning commission created pursuant to
section 8-19; (9) "real property" means land, subterranean or subsurface rights, structures, any and all easements, air rights and franchises and every estate, right or interest
therein; and (10) "business purpose" includes, but is not limited to, any commercial,
financial or retail enterprise and includes any enterprise which promotes tourism and
any property that produces income. Sec. 8-188. Designation of development agency. Any municipality which has a
planning commission is authorized, by vote of its legislative body, to designate the
economic development commission or the redevelopment agency of such municipality
or a nonprofit development corporation as its development agency and exercise through
such agency the powers granted under this chapter, except that the Quinnipiac Valley
Development Corporation, organized and existing by virtue of the provisions of number
625 of the special acts of 1957, may be designated as a development agency, for the
purposes of this chapter, to act as such within the geographical area specified in section
2 of said special act. Any municipality may, with the approval of the commissioner,
designate a separate economic development commission, redevelopment agency or nonprofit development corporation as its development agency for each development project
undertaken by the municipality pursuant to this chapter. Sec. 8-189. Project plan. The development agency may initiate a development
project by preparing a project plan therefor in accordance with regulations of the commissioner. The project plan shall include: (a) A legal description of the land within the
project area; (b) a description of the present condition and uses of such land or building;
(c) a description of the types and locations of land uses or building uses proposed for
the project area; (d) a description of the types and locations of present and proposed
streets, sidewalks and sanitary, utility and other facilities and the types and locations of
other proposed site improvements; (e) statements of the present and proposed zoning
classification and subdivision status of the project area and the areas adjacent to the
project area; (f) a plan for relocating project-area occupants; (g) a financing plan; (h)
an administrative plan; (i) a marketability and proposed land-use study or building use
study if required by the commissioner; (j) appraisal reports and title searches; (k) a
statement of the number of jobs which the development agency anticipates would be
created by the project and the number and types of existing housing units in the municipality in which the project would be located, and in contiguous municipalities, which
would be available to employees filling such jobs and (l) findings that the land and
buildings within the project area will be used principally for industrial or business purposes; that the plan is in accordance with the plan of development for the municipality
adopted by its planning commission and the plan of development of the regional planning
agency, if any, for the region within which the municipality is located; that the plan is
not inimical to any state-wide planning program objectives of the state or state agencies
as coordinated by the Secretary of the Office of Policy and Management; that the project
will contribute to the economic welfare of the municipality and the state; and that to
carry out and administer the project, public action under this chapter is required. Any
plan which has been prepared by a redevelopment agency under chapter 130 may be
submitted by the development agency to the legislative body and to the commissioner
in lieu of a plan initiated and prepared in accordance with this section, provided all other
requirements of this chapter for obtaining the approval of the commissioner of the project
plan are satisfied. Sec. 8-190. Planning grants and special planning grants. The commissioner is
authorized to make planning grants and special planning grants to municipalities to
facilitate the planning of development projects, provided (a) no such grant shall be made
in an amount in excess of fifty per cent of the estimated reasonable cost of such planning
as determined by said commissioner and (b) the municipal share of such planning costs
may be paid in noncash contributions, the value of such contributions to be determined
by the commissioner. Planning grants and special planning grants may be made to any
distressed municipality, as defined in section 32-9p, in amounts up to one hundred per
cent of such planning costs if the commissioner determines that there is a substantial
likelihood that the planned development project will be consummated. Special planning
grants may be authorized for development projects consisting, predominantly, of industrial buildings, which it is anticipated, within eighteen months, shall have more than
fifty per cent of the usable floor area unused or substantially underutilized and shall
result in significant unemployment. Said commissioner may consult with and advise
any development agency in the preparation of a plan for a development project. Sec. 8-191. Adoption of plan. (a) Before the development agency adopts a plan
for a development project, (1) the planning commission of the municipality shall find
that the plan is in accord with the plan of development for the municipality; and (2) the
regional planning agency, if any, for the region within which such municipality is located
shall find that such plan is in accord with the plan of development for such region, or
if such agency fails to make a finding concerning said plan within thirty-five days of
receipt thereof by such agency, it shall be presumed that such agency does not disapprove
of such plan; and (3) the development agency shall hold at least one public hearing
thereon. Upon approval by the development agency, the agency shall submit such plan
to the legislative body which shall vote to approve or disapprove the plan. After approval
of the plan by the legislative body, the development agency shall submit the plan for
approval to the commissioner. Notice of the time, place and subject of any public hearing
held under this section shall be published once in a newspaper of general circulation in
such town, such publication to be made not less than one week nor more than three
weeks prior to the date set for the hearing. In the event the commissioner requires a
substantial modification of the project plan before giving approval, then upon the completion of such modification such plan shall first have a public hearing and then be
approved by the development agency and the legislative body. Any legislative body,
agency or commission in approving a plan for a development project shall specifically
approve the findings made therein. Sec. 8-191a. Effect of commissioner's failure to make environmental evaluation. No plan prepared and approved under sections 8-189 and 8-191, which includes
the findings enumerated in subsection (k) of section 8-189, shall be invalid and deemed
ineffective solely because of the commissioner's failure to comply with any provision
of sections 22a-1a to 22a-1f, inclusive. All actions taken by the commissioner between
February 1, 1975, and June 14, 1977, are validated. Nothing in this section or section
8-191, 8-193 or 8-196 shall relieve the commissioner from his obligation to comply
with sections 22a-1a to 22a-1f, inclusive, subsequent to June 14, 1977. Sec. 8-192. Bond issues. Connecticut Development Authority. Federal and
state aid. Taxes. Temporary notes. (a) For the purpose of carrying out or administering
a development plan or other functions authorized under this chapter, a municipality,
acting by and through its development agency, is authorized, subject only to the limitations and procedures set forth in this section, to issue from time to time bonds of the
municipality which are payable solely from and secured by: (1) A pledge of and lien
upon any or all of the income, proceeds, revenues and property of development projects,
including the proceeds of grants, loans, advances or contributions from the federal government, the state or other source, including financial assistance furnished by the municipality or any other public body pursuant to this chapter; (2) taxes or payments in lieu
of taxes, or both, in whole or in part, allocated to and paid into a special fund of the
municipality pursuant to the provisions of section 8-192a; or (3) any combination of
the methods in subdivisions (1) and (2) of this section. Any bonds payable and secured
as provided in this subsection shall be authorized and the appropriation of the proceeds
thereof approved by a resolution adopted by the legislative body of the municipality,
notwithstanding the provisions of any other statute, local law or charter governing the
authorization and issuance of bonds and the appropriation of the proceeds thereof generally by the municipality. No such resolution shall be adopted until after a public hearing
has been held upon such authorization. Notice of such hearing shall be published not
less than five days prior to such hearing in a newspaper having a general circulation in
the municipality. Such bonds shall be issued and sold in such manner; bear interest at
such rate or rates, including variable rates to be determined in such manner as set forth
in the proceedings authorizing the issuance of the bonds; provide for the payment of
interest on such dates, whether before or at maturity; be issued at, above or below par;
mature at such time or times not exceeding forty years from their date in the case of
bonds issued to finance housing and facilities related thereto or thirty years from their
date in all other cases; have such rank or priority; be payable in such medium of payment;
be issued in such form, including, without limitation, registered or book-entry form;
carry such registration and transfer privileges and be made subject to purchase or redemption before maturity at such price or prices and under such terms and conditions,
including the condition that such bonds be subject to purchase or redemption on the
demand of the owner thereof; and contain such other terms and particulars as the legislative body of the municipality or the officers delegated such authority by the legislative
body of the municipality shall determine. The proceedings under which bonds are authorized to be issued may, subject to the provisions of the general statutes, contain any
or all of the following: (A) Provisions respecting custody of the proceeds from the sale
of the bonds and any bond anticipation notes, including any requirements that such
proceeds be held separate from or not be commingled with other funds of the municipality; (B) provisions for the investment and reinvestment of bond proceeds until such
proceeds are used to pay project costs and for the disposition of any excess bond proceeds
or investment earnings thereon; (C) provisions for the execution of reimbursement
agreements, or similar agreements, in connection with credit facilities, including, but
not limited to, letters of credit or policies of bond insurance, remarketing agreements
and agreements for the purpose of moderating interest rate fluctuations; (D) provisions
for the collection, custody, investment, reinvestment and use of the pledged revenues
or other receipts, funds or moneys pledged for payment of bonds as provided in this
section; (E) provisions regarding the establishment and maintenance of reserves, sinking
funds and any other funds and accounts as shall be approved by the legislative body of
the municipality in such amounts as may be established by the legislative body of the
municipality, and the regulation and disposition thereof, including requirements that
any such funds and accounts be held separate from or not be commingled with other
funds of the municipality; (F) covenants for the establishment of maintenance requirements with respect to facilities and properties; (G) provisions for the issuance of additional bonds on a parity with bonds issued prior to the issuance of such additional bonds,
including establishment of coverage requirements with respect to such bonds as herein
provided; (H) provisions regarding the rights and remedies available in case of a default
to the bond owners, note owners or any trustee under any contract, loan agreement,
document, instrument or trust indenture, including the right to appoint a trustee to represent their interests upon occurrence of any event of default, as defined in any such default
proceedings, provided that if any bonds or bond anticipation notes are secured by a trust
indenture, the respective owners of such bonds or notes shall have no authority except
as set forth in such trust indenture to appoint a separate trustee to represent them; and
(I) other provisions or covenants of like or different character from the foregoing which
are consistent with this section and which the legislative body of the municipality determines in such proceedings are necessary, convenient or desirable in order to better secure
the bonds or bond anticipation notes, or will tend to make the bonds or bond anticipation
notes more marketable, and which are in the best interests of the municipality. Any
provisions which may be included in proceedings authorizing the issuance of bonds
under this section may be included in an indenture of trust duly approved in accordance
with this section which secures the bonds and any notes issued in anticipation thereof,
and in such case the provisions of such indenture shall be deemed to be a part of such
proceedings as though they were expressly included therein. Any pledge made by the
municipality shall be valid and binding from the time when the pledge is made, and any
revenues or other receipts, funds or moneys so pledged and thereafter received by the
municipality shall be subject immediately to the lien of such pledge without any physical
delivery thereof or further act. The lien of any such pledge shall be valid and binding
as against all parties having claims of any kind in tort, contract or otherwise against the
municipality, irrespective of whether such parties have notice of such lien. Neither the
resolution nor any other instrument by which a pledge is created need be recorded. The
legislative body of the municipality may enter into a trust indenture by and between the
municipality and a corporate trustee, which may be any trust company or bank having
the powers of a trust company within or without the municipality. Such trust indenture
may contain such provisions for protecting and enforcing the rights and remedies of the
bond owners and note owners as may be reasonable and proper and not in violation of
law, including covenants setting forth the duties of the municipality in relation to the
exercise of its powers pursuant to this section and the custody, safeguarding and application of all moneys. The municipality may provide by such trust indenture for the payment
of the pledged revenues or other receipts, funds or moneys to the trustee under such
trust indenture or to any other depository, and for the method of disbursement thereof,
with such safeguards and restrictions as it may determine. All expenses incurred in
carrying out such trust indenture may be treated as project costs. Such bonds shall not
be included in computing the aggregate indebtedness of the municipality, provided, if
such bonds are made payable, in whole or in part, from funds contracted to be advanced
by the municipality, the aggregate amount of such funds not yet appropriated to such
purpose shall be included in computing the aggregate indebtedness of the municipality.
As used in this section, "bonds" means any bonds, including refunding bonds, notes,
temporary notes, interim certificates, debentures or other obligations. Temporary notes
issued in accordance with this subsection in anticipation of the receipt of the proceeds
of bond issues may be issued for a period of not more than five years and notes issued
for a shorter period of time may be renewed by the issue of other notes, provided the
period from the date of the original notes to the maturity of the last notes issued in
renewal thereof shall not exceed five years. Sec. 8-192a. Allocation of taxes on real or personal property in a development
project. Any development plan authorized under this chapter or any proceedings authorizing the issuance of bonds under this chapter may contain a provision that taxes, if any,
identified in such plan or such authorizing proceeding and levied upon taxable real or
personal property, or both, in a development project each year or payments in lieu of
such taxes authorized pursuant to chapter 114, or both, by or for the benefit of any one
or more municipalities, districts or other public taxing agencies after adoption of the
development plan as provided by section 8-191 or such authorizing proceedings, as the
case may be, shall be divided as follows: (a) In each fiscal year that portion of the taxes
or payments in lieu of taxes, or both, which would be produced by applying the then
current tax rate of each of the taxing agencies to the total sum of the assessed value of
the taxable property in the development project on the effective date of such adoption
or the date of such authorizing proceedings, as the case may be, or on any date between
such two dates which is identified in such proceedings, shall be allocated to and when
collected shall be paid into the funds of the respective taxing agencies in the same manner
as taxes by or for said taxing agencies on all other property are paid; and (b) that portion
of the assessed taxes or the payments in lieu of taxes, or both, each fiscal year in excess
of the amount referred to in subdivision (a) of this section shall be allocated to and
when collected shall be paid into a special fund of the municipality or the Connecticut
Development Authority as issuer of such bonds to be used in each fiscal year, first to
pay the principal of and interest due in such fiscal year on loans, moneys advanced to,
or indebtedness, whether funded, refunded, assumed, or otherwise, incurred by such
municipality or the Connecticut Development Authority as issuer of such bonds to finance or refinance in whole or in part, such development project, and then, at the option
of the municipality or the Connecticut Development Authority as issuer of such bonds,
to purchase bonds issued for the project which has generated the tax increments or
payments in lieu of taxes and then, at the option of the municipality or the Connecticut
Development Authority as issuer of such bonds, to reimburse the provider of or reimbursement party with respect to any guarantee, letter of credit, policy of bond insurance,
funds deposited in a debt service reserve fund, funds deposited as capitalized interest
or other credit enhancement device used to secure payment of debt service on any bonds,
notes or other indebtedness issued pursuant to section 8-192 to finance or refinance such
development project, to the extent of any payments of debt service made therefrom.
Unless and until the total assessed valuation of the taxable property in a development
project exceeds the total assessed value of the taxable property in such project as shown
by the last assessment list referred to in subdivision (a) of this section, all of the taxes
levied and collected and all of the payments in lieu of taxes due and collected upon the
taxable property in such development project shall be paid into the funds of the respective
taxing agencies. When such loans, advances, and indebtedness, if any, and interest
thereon, and such debt service reimbursement to the provider of or reimbursement party
with respect to such credit enhancement, have been paid in full, all moneys thereafter
received from taxes or payments in lieu of taxes, or both, upon the taxable property in
such development project shall be paid into the funds of the respective taxing agencies
in the same manner as taxes on all other property are paid. Sec. 8-192b. Temporary notes. Extension of time for renewal. Notwithstanding
the provisions of subsection (b) of section 8-192 and any other public or special act or
charter or bond ordinance or bond resolution which limits the renewal of temporary
notes issued pursuant to said subsection in anticipation of the receipt of the proceeds of
bond issues to five years from the date of the original notes, any municipality may renew
temporary notes in accordance with the provisions of this section for an additional period
of not more than four years from the end of such five-year period. The officers or board
authorized to issue the bonds or determine the particulars of the bonds may adopt a
resolution authorizing the renewal of temporary notes for such additional period under
the following conditions: (a) All project grant payments and bond sale proceeds received
shall be promptly applied toward project costs or toward payment of such temporary
notes as the same shall become due and payable or shall be deposited in trust for such
purposes; (b) no later than the end of each period of twelve months after the end of such
five-year period a portion of such temporary notes equal to at least one-twentieth of the
municipality's estimated net cost of the project shall be retired from funds other than
project grants or land sale proceeds or note proceeds; (c) the interest on all temporary
notes renewed after such five-year period shall be paid from funds other than project
grants or land sale proceeds or note proceeds; (d) the principal amount of each bond
issue when sold shall be reduced by the amounts spent under subdivision (b) of this
section, and the principal of such bonds shall be paid in annual installments commencing
no later than one year from the date of issue; and (e) the maximum authorized term of
the bonds when sold shall be reduced by not less than the number of months from the
end of such five-year period to the date of issue. Any anticipated federal or state project
grants or land sale proceeds may be used in computing the municipality's net cost of
the project. Any municipality in which such resolution is passed shall include in its
annual budget or shall otherwise appropriate sufficient funds to make the payments
required by subdivisions (b) and (c) of this section. In no event shall any notes renewed
pursuant to the provisions of this section be due and payable later than June 30, 1988. Sec. 8-193. Acquisition and transfer of real property. General powers of
agency. (a) After approval of the development plan as provided in this chapter, the
development agency may proceed by purchase, lease, exchange or gift with the acquisition or rental of real property within the project area and real property and interests
therein for rights-of-way and other easements to and from the project area. The development agency may, with the approval of the legislative body, and in the name of the
municipality, acquire by eminent domain real property located within the project area
and real property and interests therein for rights-of-way and other easements to and
from the project area, in the same manner that a redevelopment agency may acquire
real property under sections 8-128 to 8-133, inclusive, as if said sections specifically
applied to development agencies. The development agency may, with the approval of
the legislative body and, of the commissioner if any grants were made by the state
under section 8-190 or 8-195 for such development project, and in the name of such
municipality, transfer by sale or lease at fair market value or fair rental value, as the
case may be, the whole or any part of the real property in the project area to any person,
in accordance with the project plan and such disposition plans as may have been determined by the commissioner. Sec. 8-194. Readjustment, relocation and removal of public service facilities.
As used in this section, "public service facility" includes any sewer, pipe, main, conduit,
cable, wire, pole, tower, building or utility appliance owned or operated by an electric,
gas, telephone, telegraph or water company. Whenever a development agency determines that the closing of any street or public right-of-way is provided for in a development plan adopted and approved in accordance with this chapter, or where the carrying
out of such a development plan, including the construction of new improvements, requires the temporary or permanent readjustment, relocation or removal of a public service facility from a street or public right-of-way, the agency shall issue an appropriate
order to the company owning or operating such facility, and such company shall permanently or temporarily readjust, relocate or remove the same promptly in accordance with
such order, provided an equitable share of the cost of such readjustment, relocation or
removal, including the cost of installing and constructing a facility of equal capacity in
a new location, shall be borne by the development agency. Such equitable share shall
be fifty per cent of such cost after the deduction hereinafter provided. In establishing
the equitable share of the cost to be borne by the development agency, there shall be
deducted from the cost of the readjusted, relocated or removed facilities a sum based
on a consideration of the value of materials salvaged from existing installations, the
cost of the original installation, the life expectancy of the original facility and the unexpired term of such life use. For the purposes of determining the equitable share of the
cost of such readjustment, relocation or removal, the books and records of the company
shall be available for the inspection of the development agency. When any facility is
removed from a street or public right-of-way to a private right-of-way, the development
agency shall not pay for such private right-of-way. If the development agency and the
company owning or operating such facility cannot agree upon the share of the cost to
be borne by the development agency, either may apply to the superior court for the
judicial district within which the street or public right-of-way is situated, or, if the court
is not in session, to any judge thereof, for a determination of the cost to be borne by the
development agency, and such court or such judge, after causing notice of the pendency
of such application to be given to the other party, shall appoint a state referee to make
such determination. Such referee, having given at least ten days' notice, to the parties
interested, of the time and place of the hearing, shall hear both parties, shall take such
testimony as such referee may deem material and shall thereupon determine the amount
of the cost to be borne by the development agency and forthwith report to the court. If
the report is accepted by the court, such determination shall, subject to right of appeal
as in civil actions, be conclusive upon such parties. Sec. 8-195. Development grants and special development grants. (a) The commissioner is authorized to make development grants to municipalities for development
projects, provided (1) no such grant shall be made for any such project until said commissioner has given approval to the plan therefor and (2) no such grant shall be made for
any such project in an amount exceeding fifty per cent or, in the case of grants to any
distressed municipality, as defined in section 32-9p, sixty-five per cent of the net cost,
excluding, except as provided in this subsection, planning costs and special planning
costs of such project as determined by said commissioner, and except that when two or
more towns jointly initiate such a project in accordance with the provisions of section
8-196, such grant may be in an amount not exceeding seventy-five per cent of the net
cost, excluding, except as provided in this subsection, planning costs and special planning costs of such project as determined by said commissioner. In distressed municipalities, as defined in section 32-9p, the commissioner may authorize such grants to be used
for loans to businesses and industries locating, constructing, expanding, renovating or
operating within development projects. Said commissioner may include planning costs
or special planning costs of such project if such costs have already been paid or reimbursed by the municipality. Any distressed municipality's share of the cost of development projects may, to the extent permitted by federal law, be paid entirely or partially
from amounts received by the municipality under any federal capital grant program.
Special development grants, as provided in subsections (b) and (c), may be made to any
municipality, regardless of whether or not it is a distressed municipality, in amounts up
to one hundred per cent of such costs. Sec. 8-196. Joint projects. Any two or more municipalities by vote of their respective legislative bodies may, through their respective development agencies, jointly initiate a development project where the project area is to be located in one or more of such
towns, and after approval by the commissioner of the project plan therefor if any state
aid is to be requested under section 8-190 or 8-195, enter into, and thereafter amend,
an agreement for the purposes of jointly carrying out the project plan through their
respective development agencies, which agreement may include provisions for furnishing municipal services to, and sharing costs of, and revenues, including property tax
and rental receipts, from, the development project. A proposed form of the agreement
to be entered into by such towns shall be included as part of the project plan. In furtherance of its obligations under such an agreement, each town which is a party thereto may
make appropriations and levy taxes in accordance with the provisions of the general
statutes and may issue bonds in accordance with section 8-192. Sec. 8-197. Furnishing of municipal services to other municipalities. Any municipality by vote of its legislative body may for consideration furnish municipal services
to, or have municipal services furnished to it by, one or more other municipalities. The
consideration for such services may be based, in whole or in part, upon a formula which
takes into account the taxes levied on so much of the real property situated in the municipality to which such services are to be furnished as, in the judgment of the legislative
body thereof, will be appreciably benefited by such services. Sec. 8-198. Regulations. The commissioner is authorized to make and enforce
reasonable regulations to carry out the provisions of this chapter. Sec. 8-199. Action to be taken in name of municipality. Any development
agency shall exercise its powers in the name of the municipality, and all bonds issued
pursuant to this chapter shall be issued in the name of the municipality and title to land
taken or acquired pursuant to a development plan shall be solely in the name of the
municipality. Sec. 8-200. Modification of development plan. Abandonment of plan and conveyance of property. (a) A development plan may be modified at any time by the
development agency, provided, if modified after the lease or sale of real property in
the development project area, the modification must be consented to by the lessees or
purchasers of such real property or their successor or successors in interest affected by
the proposed modification. Where the proposed modification will substantially change
the development plan as previously approved, the modification must be approved in the
same manner as the development plan. Sec. 8-200a. Conversion of balance of prior loans to grants-in-aid. The unpaid
balance of all loans made under the provisions of chapter 131 of the general statutes,
revised to 1966, shall, on May 23, 1969, become state grants-in-aid under the provisions
of this chapter and shall not be repaid to the state in whole or in part. Sec. 8-200b. Payment of administrative costs under prior law. Administrative
or other costs or expenses incurred by the state in connection with the carrying out of
the provisions of chapter 131 of the general statutes, revised to 1966, shall be paid from
the proceeds of bonds issued for grants-in-aid for industrial or research development
projects from funds available for the purposes of this chapter.
Sec. 8-186. Declaration of policy.
Sec. 8-187. Definitions.
Sec. 8-188. Designation of development agency.
Sec. 8-189. Project plan.
Sec. 8-190. Planning grants and special planning grants.
Sec. 8-191. Adoption of plan.
Sec. 8-191a. Effect of commissioner's failure to make environmental evaluation.
Sec. 8-192a. Allocation of taxes on real or personal property in a development project.
Sec. 8-192b. Temporary notes. Extension of time for renewal.
Sec. 8-193. Acquisition and transfer of real property. General powers of agency.
Sec. 8-194. Readjustment, relocation and removal of public service facilities.
Sec. 8-195. Development grants and special development grants.
Sec. 8-196. Joint projects.
Sec. 8-197. Furnishing of municipal services to other municipalities.
Sec. 8-198. Regulations.
Sec. 8-199. Action to be taken in name of municipality.
Sec. 8-200. Modification of development plan. Abandonment of plan and conveyance of
property.
Sec. 8-200a. Conversion of balance of prior loans to grants-in-aid.
Sec. 8-200b. Payment of administrative costs under prior law.
(1967, P.A. 760, S. 1; 1972, P.A. 87, S. 1; P.A. 74-184, S. 1, 10; P.A. 75-480, S. 1, 8; P.A. 84-243, S. 1.)
History: 1972 act included vacated commercial plants in provisions of section; P.A. 74-184 allowed demolition of
vacated commercial plants as well as acquisition or improvement; P.A. 75-480 included water areas in provisions of section;
P.A. 84-243 included reference to use of funds for loans in distressed municipalities.
Cited. 184 C. 51, 53. Cited. 206 C. 579, 581.
Cited. 35 CS 157, 159.
(Return to TOC) (Return to Chapters) (Return to Titles)
(1967, P.A. 760, S. 2; 1972, P.A. 87, S. 2; P.A. 74-184, S. 2, 10; P.A. 75-480, S. 2, 8; P.A. 77-614, S. 284, 587, 610;
P.A. 78-303, S. 85, 136; P.A. 79-582, S. 2, 4; P.A. 80-18, S. 1, 3; P.A. 81-98, S. 1; P.A. 85-50, S. 1; P.A. 93-158, S. 3, 11;
P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 98-237, S. 13, 15.)
History: 1972 act included buildings in definition of "development project" and defined "vacated commercial plants";
P.A. 74-184 defined "commissioner"; P.A. 75-480 included vacated commercial plants in definition of "development
project", deleted requirement that space not have been used for two years in definition of "vacated commercial plants"
and defined "planning commission"; P.A. 77-614 and P.A. 78-303 substituted commissioner of economic development
for commissioner of commerce, effective January 1, 1979; P.A. 79-582 required that fifty per cent of floor space rather
than seventy-five per cent be unused in definition of "vacated commercial plants"; P.A. 80-18 defined "real property";
P.A. 81-98 defined "business purpose"; P.A. 85-50 added to definition of "vacated commercial plants" buildings in which
more than fifty per cent of usable floor space is substantially underutilized or is anticipated to be unused or so underutilized;
P.A. 93-158 added definition of "legislative body" as Subdiv. (2), renumbering existing subdivisions as necessary, effective
June 23, 1993; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with
Commissioner and Department of Economic and Community Development; P.A. 98-237 redefined "business purpose" to
include property that produces income, effective June 8, 1998.
See Sec. 7-380b re issuance of bonds, notes or other obligations authorized before June 23, 1993.
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(1967, P.A. 760, S. 3; 1969, P.A. 404, S. 1; 1971, P.A. 86; P.A. 78-357, S. 10, 16; P.A. 82-55, S. 2, 3.)
History: 1969 act allowed consideration of Quinnipiac Valley Development Corporation as development agency; 1971
act allowed municipality to designate nonprofit development corporation as its development agency; P.A. 78-357 allowed
distressed municipalities to designate more than one development agency; P.A. 82-55 specified that municipality's designation of separate commissions for separate projects is contingent upon approval of the commissioner.
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(1967, P.A. 760, S. 4; 1969, P.A. 628, S. 14; 1971, P.A. 505, S. 2; P.A. 74-184, S. 3, 10; P.A. 75-480, S. 3, 8; 75-537,
S. 48, 55; P.A. 77-614, S. 19, 610; P.A. 81-98, S. 2; P.A. 86-232, S. 1.)
History: 1969 act substituted "state or state agencies as coordinated by the state planning council" for "Connecticut
interregional planning program"; 1971 act substituted Connecticut development commission for commissioner of community affairs; P.A. 74-184 substituted commissioner of commerce for Connecticut development commission, included building description in Subdiv. (b), building use study in Subdiv. (i) and findings concerning buildings in Subdiv. (j) and
substituted planning and budgeting division, department of finance and control for state planning council; P.A. 75-480
made studies under Subdiv. (i) necessary only if required by commissioner, made appraisal reports and title searches new
Subdiv. (j) and relettered former Subdiv. (j) as Subdiv. (k); P.A. 75-537 substituted department of planning and energy
policy for planning and budgeting division of finance and control department; P.A. 77-614 substituted commissioner of
economic development for commissioner of commerce, effective January 1, 1979, and substituted secretary of [sic] the
office of policy and management for department of planning and energy policy; P.A. 81-98 allowed for use of plans
prepared under chapter 130; P.A. 86-232 added new Subdiv. (k) requiring statement re jobs and housing to be included in
project plan and relettered remaining Subdiv. accordingly.
Cited. 184 C. 51, 69, 70.
Subsec. (k):
Cited. 184 C. 51, 54, 69, 70.
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(1967, P.A. 760, S. 5; 1971, P.A. 505, S. 3; P.A. 74-184, S. 4, 10; P.A. 75-480, S. 4, 8; P.A. 76-134, S. 1; P.A. 78-357,
S. 11, 16; P.A. 79-582, S. 3, 4; P.A. 85-50, S. 2.)
History: 1971 act substituted Connecticut development commission for commissioner of community affairs; P.A.
74-184 substituted commissioner of commerce for Connecticut development commission; P.A. 75-480 applied existing
provisions to special planning grants and added provision concerning special planning grants for projects involving underused industrial buildings; P.A. 76-134 changed maximum amount of grant from full estimated cost to fifty per cent of
estimated cost of planning and replaced provision deducting amount of planning grant from other development grant which
might be made with provision that municipal share of planning costs may be noncash contributions the value of which is
to be determined by the commissioner; P.A. 77-614 substituted commissioner of economic development for commissioner
of commerce, effective January 1, 1979; P.A. 78-357 allowed grants for full planning costs to distressed municipalities;
P.A. 79-582 changed unused floor space requirement from seventy-five to fifty per cent; P.A. 85-50 made industrial
buildings anticipated, within eighteen months, instead of within one year, to have more than fifty per cent of usable floor
area either unused or substantially underutilized, instead of only unused, eligible for special planning grants.
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(b) The provisions of subsection (a) with respect to submission of a development
project to and approval by the commissioner shall not apply to a project for which no
grant has been made under section 8-190 and no application for a grant is to be made
under section 8-195.
(1967, P.A. 760, S. 6; 1971, P.A. 505, S. 4; P.A. 74-184, S. 5, 10; P.A. 75-480, S. 5, 8; P.A. 77-410, S. 1, 5; P.A. 81-
98, S. 3.)
History: 1971 act substituted Connecticut development commission for commissioner of community affairs and deleted
provisions ceasing payments to municipalities not meeting deadlines for development of community development action
plans; P.A. 74-184 substituted commissioner of commerce for Connecticut development commission; P.A. 75-480 deleted
provision requiring public hearing before submission to regional planning agency, required regional agency to make finding
within thirty-five rather than sixty days and stated that plan presumed to be not disapproved if finding not made, deleted
provision that plan be submitted to legislative body after development agency commissioner's preliminary approval and
required that substantial modifications be approved by development agency and legislative body after public hearing; P.A.
77-410 added Subsec. (b) excepting certain projects from provisions of Subsec. (a); P.A. 77-614 substituted commissioner
of economic development for commissioner of commerce, effective January 1, 1979; P.A. 81-98 provided for a mandatory
vote on the plan by the legislative body of the municipality.
Cited. 184 C. 51, 54, 69.
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(P.A. 77-410, S. 4, 5.)
Cited (as P.A. 77-410 validating act). 184 C. 51, 55, 69.
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(b) For the purpose of carrying out or administering a development plan or other
functions authorized under this chapter, a municipality, acting by and through its development agency, may accept grants, advances, loans or other financial assistance from
the federal government, the state or other source, and may do any and all things necessary
or desirable to secure such financial aid. To assist any development project located in
the area in which it is authorized to act, any public body, including the state, or any city,
town, borough, authority, district, subdivision or agency of the state, may, upon such
terms as it determines, furnish service or facilities, provide property, lend or contribute
funds, and take any other action of a character which it is authorized to perform for other
purposes. To obtain funds for the temporary and definitive financing of any development
project, a municipality may, in addition to other action authorized under this chapter or
other law, issue its general obligation bonds, notes, temporary notes or other obligations
secured by a pledge of the municipality's full faith and credit. Such bonds, notes, temporary notes and other obligations shall be authorized in accordance with the requirements
for the authorization of such obligations generally by the municipality and the authorization, issuance and sale thereof shall be subject to the limitations contained in the general
statutes, including provisions on the limitation of the aggregate indebtedness of the
municipality. Notwithstanding the provisions of sections 7-264, 7-378 and 7-378a, and
any other public or special act or charter or bond ordinance or bond resolution which
limits the issuance or renewal of temporary notes issued in anticipation of the receipt
of the proceeds of bond issues to a period of time of less than five years from the date
of the original notes or requires a reduction in the principal amount of such notes or
renewal notes prior to the fifth anniversary of the date of the original notes, such temporary notes may be issued for a period of not more than five years and notes issued for
a shorter period of time may be renewed by the issue of other notes, provided the period
from the date of the original notes to the maturity of the last notes issued in renewal
thereof shall not exceed five years.
(c) Notwithstanding the provisions of subsections (a) and (b) of this section and
any other public or special act or charter or bond ordinance or bond resolution which
limits the renewal of temporary notes issued pursuant to said subsections in anticipation
of the receipt of the proceeds of bond issues to five years or less from the date of the
original notes, any municipality may renew temporary notes in accordance with the
provisions of this section for an additional period of not more than four years from the
end of such five-year period. The officers or board authorized to issue the bonds or
determine the particulars of the bonds may adopt a resolution authorizing the renewal
of temporary notes for such additional period under the following conditions: (1) All
project grant payments and bond sale proceeds received shall be promptly applied toward project costs or toward payment of such temporary notes as the same shall become
due and payable or shall be deposited in trust for such purposes; (2) no later than the
end of each period of twelve months after the end of such five-year period a portion of
such temporary notes equal to at least one-twentieth of the municipality's estimated
cost of the project shall be retired from funds other than project grants or land sale
proceeds or note proceeds; (3) the interest on all temporary notes renewed after such
five-year period shall be paid from funds other than project grants or land sale proceeds
or note proceeds; (4) the principal amount of each bond issue when sold shall be reduced
by the amounts spent under subdivision (2) of this subsection, and the principal of such
bonds shall be paid in annual installments commencing no later than one year from the
date of issue; and (5) the maximum authorized term of the bonds when sold shall be
reduced by not less than the number of months from the end of such five-year period
to the date of issue. Any anticipated federal or state project grants or land sale proceeds
may be used in computing the municipality's cost of the project. Any municipality in
which such resolution is passed shall include in its annual budget or shall otherwise
appropriate sufficient funds to make the payments required by subdivisions (2) and (3)
of this subsection.
(d) For the purposes of carrying out or administering a specified development plan
authorized under this chapter, the Connecticut Development Authority may, upon a
resolution with respect to such project adopted by the legislative body of the municipality, issue and administer bonds which are payable solely from and secured by the pledge
and security provided for in subsection (a) of this section subject to the general terms and
provisions of law applicable to the issuance of bonds by the Connecticut Development
Authority, except that the provisions of subsection (b) of section 32-23j shall not apply.
(1967, P.A. 760, S. 7; P.A. 74-319, S. 3; P.A. 76-51; P.A. 87-572, S. 3, 5; P.A. 88-233, S. 3, 5; P.A. 89-230, S. 3, 4;
P.A. 93-158, S. 4, 11; P.A. 98-237, S. 3.)
History: P.A. 74-319 amended Subsec. (a) by adding Subdivs. (2) and (3) re bonds payable from and secured by taxes
or by combination of taxes and lien on assets of project, by adding requirement that bonds secured by taxes or combination
be approved by local legislative body and by allowing deferral of principal payments; P.A. 76-51 amended Subsec. (b) to
extend limits on temporary notes and renewals from three to five years; P.A. 87-572 made extensive amendments in
procedures for issuance and payment of debt; P.A. 88-233 included payments made from payments in lieu of taxes; P.A.
89-230 amended Subsec. (a) to provide for forty-year maturity limits for bonds which finance housing and related facilities;
P.A. 93-158 amended Subsecs. (a) and (b) adding provision re authorization of temporary notes, substituting alphabetic
Subpara. indicators for numeric ones and making technical changes and added Subsec. (c) re renewal of temporary bonds,
effective June 23, 1993; P.A. 98-237 added new Subsec. (d) authorizing the Connecticut Development Authority to issue
bonds for a specified project upon approval of the legislative body of the municipality in which the project is located.
See Sec. 7-380b re issuance of bonds, notes or other obligations authorized before June 23, 1993.
See Sec. 8-192b re renewal of temporary notes.
Cited. 206 C. 579, 582, 583.
Subsec. (a):
Cited. 206 C. 579, 580, 585, 586, 589, 592, 594.
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(P.A. 74-319, S. 4; P.A. 87-572, S. 4, 5; P.A. 88-233, S. 4, 5; P.A. 98-237, S. 4.)
History: P.A. 87-572 made extensive amendments in procedures for issuance and payment of debt; P.A. 88-233 included
payments in lieu of taxes, provided for multiple jurisdiction projects and allowed for a municipally-fixed assessment
date for the valuation of taxable property; P.A. 98-237 applied provisions to personal property and inserted reference to
Connecticut Development Authority for consistency with other 1998 statutory changes.
Cited. 206 C. 579, 585.
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(P.A. 80-320, S. 2, 4; P.A. 82-24, S. 2, 5; P.A. 84-534, S. 2, 3; P.A. 86-387, S. 2, 3.)
History: P.A. 82-24 extended from two years to four years the period for which temporary notes may be renewed under
this section following renewal for five years from the date of the original notes as allowed under Subsec. (b) of Sec. 8-
192, with the extended period of renewal subject to the same conditions as renewal for the first two years under this section
and extended date by which any notes renewed under this section must be payable to June 30, 1984; P.A. 84-534 extended
date by which any notes renewed under this section must be payable to June 30, 1986; P.A. 86-387 extended date by which
any notes renewed under this section must be payable to June 30, 1988.
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(b) A development agency shall have all the powers necessary or convenient to
undertake and carry out development plans and development projects, including the
power to clear, demolish, repair, rehabilitate, operate, or insure real property while it is
in its possession, to make site improvements essential to the preparation of land for its
use in accordance with the development plan, to install, construct or reconstruct streets,
utilities and other improvements necessary for carrying out the objectives of the development project, and, in distressed municipalities, as defined in section 32-9p, to lend funds
to businesses and industries in a manner approved by the commissioner.
(1967, P.A. 760, S. 8; 1971, P.A. 505, S. 5; 1972, P.A. 87, S. 3; P.A. 74-184, S. 6, 10; P.A. 77-138, S. 2, 3; 77-410, S.
2, 5; P.A. 80-18, S. 2, 3; P.A. 84-243, S. 2.)
History: 1971 act amended Subsec. (a) by substituting Connecticut development commission for commissioner of
community affairs; 1972 act added power to rehabilitate real property in Subsec. (b); P.A. 74-184 substituted commissioner
of commerce for Connecticut development commission; P.A. 77-138 amended Subsec. (a) to delete phrase which had
restricted transfers of property by development agencies by allowing transfers only after completion of improvements
called for in plan; P.A. 77-410 required commissioner's approval of transfers if grants were made by the state for the
project in Subsec. (a); P.A. 77-614 substituted commissioner of economic development for commissioner of commerce,
effective January 1, 1979; P.A. 80-18 substituted "real property" for "land" and deleted reference to acquisition of real
property under Sec. 8-129; P.A. 84-243 amended Subsec. (b) to provide for loans to businesses and industries in distressed
municipalities.
Cited. 177 C. 749. Cited. 184 C. 51, 69.
Cited. 28 CA 622, 629.
Prior use doctrine. Property devoted to public use by one municipality cannot be taken through eminent domain by
another municipality if proposed use will either destroy existing use or so interfere with it as to destroy it, except when
there is expressed or implied legislative authority. 35 CS 157 et seq.
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(1967, P.A. 760, S. 9; P.A. 78-280, S. 2, 127.)
History: P.A. 78-280 substituted "judicial district" for "county".
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(b) The commissioner is authorized to make special development grants to municipalities to plan, install, construct or reconstruct utilities, sewerage and water lines and
systems, and water towers and to acquire rights-of-way, therefore, to the boundaries of
development projects. Such development grants may be made in amounts to their total
costs, but not to exceed, ten per cent of the estimated physical development costs within
the development project as last approved by the commissioner.
(c) The commissioner is authorized to make special development grants to municipalities for site improvement, utility, water, roads and sewerage facilities, renovation
of building space, related engineering services, and for relocation expenses for the purpose of assisting industrial and business firms to locate or expand within development
projects and which, upon such location or expansion, would result in a significant increase in employment or municipal real estate tax revenue to the municipality within
which such development projects are located. All relocation assistance shall be in conformance with the provisions of chapter 135. Such grants may be made in amounts to
their estimated total cost.
(d) In allocating funds available for the making of development grants, said commissioner is authorized to establish priorities among municipalities, taking into account
their relative needs for development projects, the effects of proposed projects on existing
housing and the extent to which particular projects are likely to advance the purposes
of this chapter.
(1967, P.A. 760, S. 10; 1971, P.A. 505, S. 6; P.A. 74-184, S. 7, 10; P.A. 75-109; 75-480, S. 6, 8; P.A. 76-134, S. 2;
P.A. 78-357, S. 12, 16; P.A. 79-229; P.A. 83-234; P.A. 84-243, S. 3; P.A. 85-50, S. 3; P.A. 86-232, S. 2.)
History: 1971 act substituted Connecticut development commission for commissioner of community affairs; P.A. 74-
184 substituted commissioner of commerce for Connecticut development commission; P.A. 75-109 allowed grants for up
to seventy-five per cent of net costs in project undertaken by two or more towns; P.A. 75-480 divided section into Subsecs.,
making former provisions Subsecs. (a) and (d) and inserting new Subsecs. (b) and (c) re special development grants; P.A.
76-134 excluded planning and special planning costs from consideration as part of net costs in determining amount of
grants under Subsec. (a), reversing previous provision for their inclusion in net cost; P.A. 77-614 substituted commissioner
of economic development for commissioner of commerce, effective January 1, 1979; P.A. 78-357 allowed grants for up
to sixty-five per cent of net cost to distressed municipalities, allowed use of federal grants to pay for distressed municipalities' share of cost and clarified applicability of special development grants in Subsec. (a); P.A. 79-229 allowed inclusion
of planning or special planning costs in net cost when planning costs already paid by municipality in Subsec. (a); P.A. 83-
234 provided that special development grants could be made for renovation of building space or for expansion within
development projects; P.A. 84-243 amended Subsec. (a) to provide for the use of funds for loans to businesses and industries
in distressed municipalities; P.A. 85-50 amended Subsec. (a) to authorize grants in distressed municipalities to also be
used for loans to businesses and industries renovating or operating within development projects; P.A. 86-232 amended
Subsec. (d) to require commissioner to take into account effects of proposed projects on existing housing.
Cited. 184 C. 51, 55.
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(1967, P.A. 760, S. 11; 1971, P.A. 505, S. 7; P.A. 74-184, S. 8, 10; P.A. 75-480, S. 7, 8; P.A. 77-410, S. 3, 5.)
History: 1971 act substituted Connecticut development commission for commissioner of community affairs; P.A. 74-
184 substituted commissioner of commerce for Connecticut development commission; P.A. 75-480 deleted requirement
that municipalities jointly initiating project be contiguous and simply required approval by commissioner rather than "final
approval"; P.A. 77-410 required approval of commissioner "if any state aid is to be requested under section 8-190 or 8-
195"; P.A. 77-614 substituted commissioner of economic development for commissioner of commerce, effective January
1, 1979.
Cited. 184 C. 51, 69.
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(1967, P.A. 760, S. 12.)
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(1967, P.A. 760, S. 13; 1971, P.A. 505, S. 8; P.A. 74-184, S. 9, 10.)
History: 1971 act substituted Connecticut development commission for commissioner of community affairs; P.A. 74-
184 substituted commissioner of commerce for Connecticut development commission; P.A. 77-614 substituted commissioner of economic development for commissioner of commerce, effective January 1, 1979.
See chapter 54 re uniform administrative procedure.
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(1967, P.A. 760, S. 15.)
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(b) If after three years from the date of approval of the development plan the development agency has been unable to transfer by sale or lease at fair market value or fair
rental value, as the case may be, the whole or any part of the real property acquired in
the project area to any person in accordance with the project plan, and no grant has been
made for such project pursuant to section 8-195, the municipality may, by vote of its
legislative body, abandon the project plan and such real property may be conveyed free
of any restriction, obligation or procedure imposed by the plan but shall be subject to
all other local and state laws, ordinances or regulations.
(1967, P.A. 760, S. 16; P.A. 80-41; P.A. 81-415, S. 3, 4.)
History: P.A. 80-41 substituted "development" for "redevelopment"; P.A. 81-415 added Subsec. (b) authorizing municipality to abandon project plan and convey real property in the project area if, after three years from the date of the plan's
approval the development agency is unable to sell or lease all or any part of the property.
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(1969, P.A. 259, S. 1.)
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(1969, P.A. 259, S. 2.)
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