OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ¯ (860) 240-0200

http: //www. cga. ct. gov/ofa

sHB-5776

AN ACT CONCERNING THE CONVEYANCE OF CERTAIN PARCELS OF STATE LAND.

As Amended by House "A" (LCO 5397)

House Calendar No. : 318

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 07 $

FY 08 $

Department of Transportation

TF - Potential Loss of Asset Value

More than $0. 352 mil.

None

Treasurer; Prop. Review Bd.

GF - Cost

Minimal

None

Policy & Mgmt. , Off.

GF - Savings

Minimal

Minimal

Note: TF=Transportation Fund; GF=General Fund

Municipal Impact:

Municipalities

Effect

FY 07 $

FY 08 $

Various Municipalities

Gain of Asset Value

More than $0. 352 mil.

None

Various Municipalities

Revenue Loss

Minimal

Minimal

Various Municipalities

Revenue Gain

Potential

Potential

Explanation

The impact to the Transportation Fund is a loss of asset value of more than $0. 352 million. The General Fund cost for making the conveyances is minimal (less than $1,000 each). There is also a minimal General Fund saving to the state for payments-in-lieu-of-taxes (PILOT) for state owned property. The conveyances represent a potential revenue loss to the state to the extent that the state could have sold or leased the properties at fair market value.

The land conveyances are subject to the review and approval of the State Properties Review Board, which is required to review each conveyance within 30 days. Deeds or any other instruments necessary for the conveyances must be executed and delivered by the State Treasurer. These activities are part of the respective agencies normal operations and can be accomplished with existing staff and resources.

Municipal

The municipal impact for the towns listed in the table below is: (1) a gain in asset value to certain municipalities; (2) a minimal revenue loss for PILOT payments to the degree that the parcels are eligible for PILOT; and (3) a potential revenue gain to various municipalities for those properties that are used for economic development purposes and become fully taxable.

Further Explanation

The tables below summarize each section of the bill. Table 1 summarizes property conveyances and shows the fiscal impact of each. The parcels must be used for the purposes specified in the bill (labeled “Use Restriction”) or the property will revert to the state. Table 2 summarizes adjustments in the conditions of prior land conveyances. Table 3 summarizes other provisions of the bill.

Table 1: Property Conveyances

Sec.

From

To/Location

Acres

Estimated Value

Use Restriction

7

DOT

New Britain

0. 373

$106,400

Economic development

8

DOT

Windsor Locks

20,000 sq ft

$50,000

Municipal purposes

9

DOT

Norwalk

. 020

$13,000

Economic development

12

DOT

Goodwin College,

East Hartford

. 65

$28,580

Transportation and education

14

DPW

East Lyme

2. 24

N/A1

Public highway

16

DOT

Wallingford

0. 2295

$5,000

Municipal purposes

18

DOT

Middlefield

1. 92

$150,000

Open space

   

Transportation Fund Total

$352,980

 

1 The land is part of a roadway and towns do not determine an assessed value for

such land.

Table 2: Changes to Prior Conveyances

Sec.

From

To/Location

Reference

Language Change

1

DMHAS

Ledyard

PA 96-249,

Sec 11

Land may used for municipal/economic

development rather than agriculture

2

State of

CT

Newtown

PA 05-279,

Sec 29

Easement through Fairfield Hills property

granted by town to state

3

DoAG

Newtown

PA 04-186,

Sec. 10

Right-of-way granted to state by Newtown

4

DOT

East Hartford

SA 02-9,

Sec. 8

Remove easement provision

6

DOT

Haddam

PA 98-255,

Sec. 16

Remove use restriction

22

DEP

Killingworth

SA 84-54,

Sec. 24(a)

Waiver of repayment of a dam repair grant-in-

aid

23

DOT

Meriden

SA 99-17,

Sec 6

Repeal of conveyance of . 56 acres to city

for open space

Table 3: Other Provisions

Sec.

From

To/Location

Acres

Use Restriction

Provision

5

DEP

Mary Lou Rood, Windham

3 parcels

None

Land is being returned after being mistakenly conveyed to DEP.

10

DEP

CT Antique Machinery Assoc, Kent

14. 94

Open space and

recreation

25-year lease at $1 per year

11

DoED

Waterbury

Less

than 1

Trumpet Brook

storm water

culvert

Easement related to a storm water conduit

13

DEP

Somers Sportsmen's Association

21. 8

None

Exchange state-owned land for 21. 9 acres owned by association

15

DPW

East Lyme

Sewer line

None

Easement granted so town can service line

17

DEP

F&F Concrete Corporation/

Southington

Driveway

Transporting

vehicles from

8 to 5, Monday

through Friday

Driveway easement

19

DOT

Route 11 Greenway Authority Commission/

Salem

8. 5

Open space and

recreation

Transfer property under provisions of CGS Sec. 13a-142e

20

DEP

John Morhardt

and Lynda Morhardt/

Vernon

4,960 sq ft

None

Exchange state-owned land for 5,000 sq ft near wildlife management area

21

DEP

Heidi Zibello

and Richard Zibello/Morris

. 027

None

Exchange state-owned land for . 027 acre near Camp Columbia State Forest

House “A” strikes the original bill and has the fiscal impact stated above.

The Out Years

The annualized ongoing fiscal impact for the state is the General Fund cost saving for payments-in-lieu-of-taxes (PILOT) to towns. The annualized ongoing fiscal impact for municipalities is the revenue loss from PILOT payments and the potential revenue gain if the property used for economic development purposes becomes fully taxable.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either House thereof for any purpose.