Substitute Senate Bill No. 906
Substitute Senate Bill No. 906
PUBLIC ACT NO. 97-211
AN ACT CONCERNING TRANSFER OF REAL PROPERTY UNDER
THE MANUFACTURING ASSISTANCE ACT AND PARTICIPATION
BY THE DEPARTMENT OF ECONOMIC AND COMMUNITY
DEVELOPMENT IN CERTAIN LOANS.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Section 32-228 of the general
statutes is amended by adding subsection (d) as
follows:
(NEW) (d) The Commissioner of Economic and
Community Development may, with the approval of
the Commissioner of Public Works, the Secretary of
the Office of Policy and Management and the State
Properties Review Board: (1) Enter into a contract
to purchase, lease or hold any real property,
other than property owned by the state or made
available by the federal government, if the
commissioner has entered into a contract to sell,
exchange or lease such property to another person
who will utilize such property for manufacturing
or other economic base business or for business
support services provided such sale or lease shall
close not later than one week after the
commissioner purchases, leases, holds or otherwise
acquires such property and further provided such
contract shall provide that the transferor shall
be liable for any costs associated with
remediation of environmental contamination of such
real property; and (2) sell, exchange or lease any
real property acquired by the commissioner under
subdivision (1) of this subsection. The
commissioner shall require, as a condition of any
sale, exchange, lease or agreement entered into
pursuant to subdivision (2) of this subsection,
that such real property be used primarily for
manufacturing or other economic base business or
for business support services. No such land may be
sold, exchanged or leased by the commissioner
under subdivision (2) of this subsection without
prior consultation with each municipality in which
such real property is located provided any person
who leases such property from the commissioner
under this subsection shall be liable to the
municipality for any tax due under chapter 203 as
if such lessee were the owner of such property.
The transferor shall be liable for any costs
associated with remediation of environmental
contamination of any property which the
Commissioner of Economic and Community Development
proposes to acquire under this section provided,
in the case of a property to be subsequently sold
by the commissioner under this section, the
commissioner may enter into a contract with the
subsequent transferee under which the transferee
shall be liable for such costs.
Sec. 2. Section 32-1l of the general statutes
is amended by adding subdivision (6) as follows:
(NEW) (6) To provide financial assistance for
economic development projects directly or in
participation with the Connecticut Development
Authority, to purchase participation interests in
loans made by the Connecticut Development
Authority and enter into any agreements or
contracts it deems necessary or convenient in
connection with such loans.
Sec. 3. Section 32-221 of the general statutes
is repealed and the following is substituted in
lieu thereof:
It is found and declared that the maintenance
and continued development of the state's
manufacturing sector is important to the economic
welfare of the state and to the retention and
creation of job opportunities within the state;
that the manufacturing sector of the state's
economy is facing increased competition from other
geographic areas of the world; that assistance
from the state can promote the retention,
expansion, and diversification of existing
manufacturing businesses and encourage
manufacturing and other economic base businesses
from other geographic areas to locate into the
state; that assistance from the state can enhance
employment opportunity and the tax base of
communities, particularly in the state's more
economically disadvantaged communities; that the
economic competitiveness of manufacturing and
other economic base businesses is dependent in
part upon the provision of adequate business
support services such as day care, job training,
education, transportation, employee housing,
energy conservation, pollution control and
recycling; that state assistance to promote the
retention and expansion and increase the
competitiveness of manufacturing and other
economic base businesses is an important function
of the state and is a public use for which public
moneys may be expended; that in certain cases
assistance and encouragement of diversification of
manufacturing businesses within the state may
promote the economic welfare of the state and is a
public use and purpose for which public moneys may
be expended; THAT THE PARTICIPATION AND
COOPERATION OF THE STATE'S AGENCIES AND
AUTHORITIES IN PROVIDING FINANCIAL ASSISTANCE WILL
IMPROVE THE TIMELINESS AND DECREASE THE COSTS TO
BUSINESSES OF PROVIDING SUCH ASSISTANCE; and
therefore the necessity in the public interest and
for the public benefit and good for the provisions
of sections 32-220 to 32-234, inclusive, is hereby
declared as a matter of legislative determination.
Sec. 4. Subsection (f) of section 32-222 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(f) "Eligible applicant" means any for-profit
or nonprofit organization, or any combination
thereof, provided, in the case of a defense
diversification project, "eligible applicant"
means any for-profit or nonprofit organization,
municipality, regional planning agency or any
combination thereof AND FURTHER PROVIDED, IN THE
CASE OF A LOAN MADE BY THE CONNECTICUT DEVELOPMENT
AUTHORITY IN WHICH THE DEPARTMENT PURCHASES A
PARTICIPATION INTEREST, "ELIGIBLE APPLICANT" MEANS
THE FOR-PROFIT OR NONPROFIT ORGANIZATION, OR ANY
COMBINATION THEREOF, THAT WILL RECEIVE THE
PROCEEDS OF SUCH LOAN.
Sec. 5. Subsection (h) of section 32-222 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(h) "Financial assistance" means grants,
extensions of credit, loans or loan guarantees,
PARTICIPATION INTERESTS IN LOANS MADE TO ELIGIBLE
APPLICANTS BY THE CONNECTICUT DEVELOPMENT
AUTHORITY or combinations thereof.
Sec. 6. Subsections (c) and (d) of section
32-223 of the general statutes are repealed and
the following is substituted in lieu thereof:
(c) No financial assistance shall be given to
an eligible applicant AND NO PARTICIPATION
INTEREST IN A LOAN MADE BY THE CONNECTICUT
DEVELOPMENT AUTHORITY FOR THE BENEFIT OF AN
ELIGIBLE APPLICANT SHALL BE PURCHASED BY THE
DEPARTMENT until the commissioner has approved the
application submitted in accordance with
subsection (a) of this section. NOTWITHSTANDING
ANY OTHER PROVISION OF THIS SECTION, IN THE EVENT
THAT THE FINANCIAL ASSISTANCE REQUESTED IS THE
PURCHASE BY THE DEPARTMENT OF A PARTICIPATION
INTEREST IN A LOAN MADE BY THE CONNECTICUT
DEVELOPMENT AUTHORITY, SUCH AUTHORITY MAY SUBMIT
SUCH APPLICATION AND OTHER INFORMATION AS IS
REQUIRED OF ELIGIBLE APPLICANTS UNDER SUBSECTION
(a) OF THIS SECTION ON BEHALF OF SUCH ELIGIBLE
APPLICANT AND NO FURTHER APPLICATION SHALL BE
REQUIRED OF SUCH ELIGIBLE APPLICANT. No financial
assistance shall exceed: (1) Except as otherwise
provided in subdivisions (2) to (5), inclusive, of
this subsection, fifty per cent of the total
project cost, (2) in the case of financial
assistance to any project in a targeted investment
community, ninety per cent of the project cost,
(3) when two or more municipalities which are not
targeted investment communities jointly initiate a
municipal development project in accordance with
the provisions of subsection (e) of section
32-224, seventy-five per cent of the total project
cost, (4) in the case of a municipal development
project jointly initiated by two or more
municipalities at least one of which is a targeted
investment community, the sum of: (A) Seventy-five
per cent of the portion of the total project cost
allocable to the participation of the municipality
or municipalities which are not targeted
investment communities and (B) ninety per cent of
the portion of the total project cost allocable to
the participation of any targeted investment
community or communities and (5) in the case of a
defense diversification project, ninety per cent
of the total project cost if the project involves
a municipal development project or the acquisition
or development, or both, of real property for an
unspecified occupant, and one hundred per cent in
the case of any other defense diversification
project. A municipality's share of the total
project cost, if any, may, with the approval of
the commissioner, be satisfied entirely or
partially from noncash contributions, including
contributions of real property, from private
sources, or, to the extent permitted by federal
law, from moneys received by the municipality
under any federal grant program.
(d) Financial assistance WHETHER provided
DIRECTLY to eligible applicants OR INDIRECTLY IN
THE FORM OF THE DEPARTMENT'S PURCHASE OF A
PARTICIPATION INTEREST IN A LOAN MADE BY THE
CONNECTICUT DEVELOPMENT AUTHORITY under sections
32-220 to 32-234, inclusive, may be used for (1)
the planning of a municipal development project or
business development project, including, but not
limited to, the reasonable cost of feasibility
studies, engineering, appraisals, market studies
and related activities; (2) the acquisition of
real property, machinery or equipment, or any
combination thereof, provided such financial
assistance shall not exceed fair market value; or
(3) the construction of site and infrastructure
improvements relating to a municipal development
or business development project; (4) the
construction, renovation and demolition of
buildings; (5) relocation expenses for the purpose
of assisting a manufacturing or other economic
base business to locate, construct, renovate or
acquire a facility; or (6) such other reasonable
expenses necessary or appropriate for the
initiation, implementation and completion of the
project, including, but not limited to: (A)
Administrative expenses of the eligible applicant
and (B) business support services in conjunction
with another state agency when such agency does
not provide adequate funds for such services or
when no other state agency provides such services.
THE DEPARTMENT MAY PURCHASE PARTICIPATION
INTERESTS IN LOANS MADE BY THE CONNECTICUT
DEVELOPMENT AUTHORITY FOR THE FOREGOING PURPOSES.
All relocation assistance provided under sections
32-220 to 32-234, inclusive, to persons residing
in the project area shall be in conformance with
chapter 135.
Sec. 7. This act shall take effect from its
passage.
Approved June 24, 1997