Fairfied Hills Redevelopment

You asked for options on how the town of Newtown could oversee the redevelopment of the Fairfield Hills property.

Newtown could use a wide variety of mechanisms under existing law to oversee the redevelopment of the property. These include using the town’s existing economic development commission or establishing a special services district or a development or redevelopment agency. These entities have broad powers to acquire and redevelop property. Municipalities can issue revenue bonds on behalf of several of these entities.

Alternatively, the legislature could amend the statutes governing such entities to address the specific needs associated with the redevelopment of the Fairfield Hills property. Or it could create (or authorize the town to create) an entity specifically to oversee only the redevelopment of the property. One model would be the Capital City Economic Development Authority, the state authority that is responsible for overseeing the redevelopment of downtown Hartford in the Adriaen’s Landing project. Another, previously proposed in bill form, would be an oversight committee appointed by the town’s selectman.

Under CGS Sec. 7-136, a municipality can establish an economic development commission to promote the development of the municipality’s economic resources (Newtown already has such a commission). The commission can (1) hire employees, (2) conduct research, (3) make recommendations to appropriate municipal officials and agencies regarding actions to promote the municipality’s economic development. The municipality can appropriate up to . 05% of its taxable grand list for the commission.

Under CGS Sec. 7-339m et seq. , a municipality can form a special services district to promote the economic and general welfare of its citizens and property owners. Among other things, the district can (1) acquire and convey real and personal property; (2) contract; (3) borrow money for up to one year backed by district revenues; (4) recommend to the municipality’s legislative body that it impose a separate tax on property in the district to support its operations; (5) build, own, maintain, and operate public improvements; and (6) provide any service that a municipality can provide, other than education. Voters in the district must approve its establishment at a referendum. In practice, districts have been formed in areas that have already been developed, such as downtowns.

Under CGS Sec. 8-124 et seq. , the legislative body of a municipality can create a redevelopment agency or designate an existing agency for this purpose. The agency has broad powers over a redevelopment area in the municipality, which is defined as an area that is deteriorated, deteriorating, substandard, or detrimental to public health or safety. The area can consist of vacant land as well as land with structures. The agency may prepare a redevelopment plan for the area, which it may approve if the plan if its implementation will materially improve conditions in the area, among other criteria. The municipality, acting through the agency, can also (1) issue revenue bonds to carry out the plan and (2) accept grants and other forms of financial assistance from the federal or state governments.

Under CGS Sec. 8-186 et seq. , the legislative body of a municipality with a planning commission can create a development agency, which can be its economic development commission, redevelopment agency, or a non-profit development agency. The development agency can take several steps in connection with a development project, under which the municipality assembles, improves, and disposes of land that will be primarily used for business or industrial uses. The agency can prepare a project plan for the project, which must include a financing plan among other things. The Department of Economic and Community Development commissioner can additionally require that the plan include a marketability and land use study. The agency’s plan is subject to the approval of the municipality’s legislative body. The municipality, acting through the agency, can (1) issue revenue bonds to carry out the plan and (2) accept grants and other forms of financial assistance from the federal or state governments.

Finally, CGS Sec. 7-194 gives municipalities broad powers to manage and control real and personal property owned by the town and to provide for the sale or transfer of such property. It appears that Newtown could use this provision to establish a body to oversee the redevelopment of the Fairfield Hills property.

If none of the existing mechanism suits the town’s purposes in redeveloping Fairfield Hills, the legislature could adopt a bill creating an entity to oversee the property’s redevelopment. Among the questions that could be addressed in such legislation are:

1. the entity’s powers and responsibilities;

2. who appoints its members;

3. its relationship with the town;

4. the role, if any, of state agencies in the property’s redevelopment; and

5. how redevelopment would be financed.

One model for such an entity is the Capital City Economic Development Authority, which was created by PA 98-179 to oversee the development of the Adriaen’s Landing project. The authority has a wide range of powers, including the ability to enter into contracts; issue bonds and other obligations; borrow money; acquire, lease, and dispose of personal property; employ staff; and invest funds it does not need for immediate use in specified instruments. In order to go forward with the project, the authority had to study its financial feasibility, considering planning, siting, construction costs, revenue and expense projections, and operations.

In 2003, legislation was proposed to create a Fairfield Hills Authority, whose members would be appointed by the Newtown selectman. The proposal, which was not adopted, would have given the authority the power to develop plans for the property, make infrastructure improvements, lease the property, and employ staff.


September 7, 2004		2004-R-0689
FAIRFIELD HILLS REDEVELOPMENT

By: Kevin E. McCarthy, Principal Analyst