File No. 841

Senate, May 24, 2011

The Committee on Finance, Revenue and Bonding reported through SEN. DAILY of the 33rd Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

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

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (Effective from passage) (a) Notwithstanding any provision of the general statutes, the Commissioner of Correction shall convey to the town of Cheshire a parcel of land located in the town of Cheshire, at a cost equal to the administrative costs of making such conveyance. Said parcel of land has an area of approximately five acres. The conveyance shall be subject to the approval of the State Properties Review Board.

(b) The town of Cheshire shall use said parcel of land for parking purposes. If the town of Cheshire:

(1) Does not use said parcel for said purposes;

(2) Does not retain ownership of all of said parcel; or

(3) Leases all or any portion of said parcel,

the parcel shall revert to the state of Connecticut.

(c) The State Properties Review Board shall complete its review of the conveyance of said parcel of land not later than thirty days after it receives a proposed agreement from the Department of Correction. The land shall remain under the care and control of said department until a conveyance is made in accordance with the provisions of this section. The State Treasurer shall execute and deliver any deed or instrument necessary for a conveyance under this section, which deed or instrument shall include provisions to carry out the purposes of subsection (b) of this section. The Commissioner of Correction shall have the sole responsibility for all other incidents of such conveyance.

Sec. 2. (Effective from passage) (a) Notwithstanding any provision of the general statutes, the Commissioner of Transportation shall convey to the town of Wethersfield two parcels of land located in the town of Wethersfield, at no cost. Said parcels of land have an area of approximately .36 acre and .0006 acre respectively, and are identified on the following maps "Compilation Plan Town of Wethersfield, Map showing land released to the Town of Wethersfield by the State of Connecticut Department of Transportation, Maple Street (Route 3) at Spring Street and Middletown Avenue, January 2010, Town 159, Project No. 159-17, Serial No. 4A" and "Town of Wethersfield, Map showing land acquired from Morningside Village Association by State of Connecticut Department of Transportation for Spring Street Relocation, July 1998, Town 159, Project No. 159-176, Serial No. 1". The conveyance shall be subject to the approval of the State Properties Review Board.

(b) The town of Wethersfield shall use said parcels of land for municipal purposes. If the town of Wethersfield, in the case of either parcel:

(1) Does not use said parcel for said purposes;

(2) Does not retain ownership of all of said parcel; or

(3) Leases all or any portion of said parcel,

the parcel shall revert to the state of Connecticut.

(c) The State Properties Review Board shall complete its review of the conveyance of said parcels of land not later than thirty days after it receives a proposed agreement from the Department of Transportation. The land shall remain under the care and control of said department until a conveyance is made in accordance with the provisions of this section. The State Treasurer shall execute and deliver any deed or instrument necessary for a conveyance under this section, which deed or instrument shall include provisions to carry out the purposes of subsection (b) of this section. The Commissioner of Transportation shall have the sole responsibility for all other incidents of such conveyance.

Sec. 3. (Effective from passage) Notwithstanding certain restrictions contained in section 34 of special act 03-19 and in a quit claim deed from the state of Connecticut, Department of Transportation to the town of Tolland, that the parcel of land designated by the Department of Transportation as File No. 142-44-4A be used for open space purposes and not be sold or leased, said parcel may be used for economic development purposes and the town of Tolland may sell or lease said parcel and said restrictions are released and relinquished and shall have no further force and effect, provided the town of Tolland pays the Department of Transportation the fair market value of said parcel. The fair market value of said parcel shall be determined by the average of the appraisals of two independent appraisers selected by the commissioner.

Sec. 4. (Effective from passage) (a) Notwithstanding any provision of the general statutes, the Commissioner of Transportation shall convey to the town of Fairfield a parcel of land located in the town of Fairfield, at no cost. Said parcel of land has an area of approximately .20 acre and is adjacent to the Merritt Parkway. The conveyance shall be subject to the approval of the State Properties Review Board.

(b) The town of Fairfield shall use said parcel of land for open space purposes. If the state requires said parcel for transportation purposes, or if the town of Fairfield:

(1) Does not use said parcel for said purposes;

(2) Does not retain ownership of all of said parcel; or

(3) Leases all or any portion of said parcel,

the parcel shall revert to the state of Connecticut.

(c) The State Properties Review Board shall complete its review of the conveyance of said parcel of land not later than thirty days after it receives a proposed agreement from the Department of Transportation. The land shall remain under the care and control of said department until a conveyance is made in accordance with the provisions of this section. The State Treasurer shall execute and deliver any deed or instrument necessary for a conveyance under this section, which deed or instrument shall include provisions to carry out the purposes of subsection (b) of this section. The Commissioner of Transportation shall have the sole responsibility for all other incidents of such conveyance.

Sec. 5. Number 365 of the special acts of 1963 is amended to read as follows (Effective from passage):

(a) The state park and forest commission shall sell a building owned by the state and located in the town of Coventry east of the Nathan Hale birthplace, to the Coventry Historical Society, Inc., for one dollar. [, to be used as a museum and meeting place.]

(b) Notwithstanding a certain condition contained in a deed from the State of Connecticut to the Coventry Historical Society, Inc., dated September 11, 1963, and recorded in the Coventry land records at volume 111, page 273 and in a quit-claim deed from the State of Connecticut to the Coventry Historical Society, Inc., dated August 2, 1965, and recorded on August 2, 1965, in the Coventry land records at volume 172, pages 62 and 63, the Coventry Historical Society, Inc. is authorized to sell, free of any restriction that the property be used for museum and meeting place purposes, the building described in this section and land described in number 365 of the special acts of 1963 and said deeds recorded in the Coventry land records, subject to the approval of the State Properties Review Board. The net proceeds from any such sale shall be used for maintenance or related costs of the other properties owned by the Coventry Historical Society, Inc.

Sec. 6. (Effective from passage) (a) Notwithstanding any provision of the general statutes, the Commissioner of Transportation shall convey to the town of Farmington a parcel of land located in the town of Farmington, at a cost equal to the administrative costs of making such conveyance. Said parcel of land has an area of approximately 1.6 acres and is identified as "Release Area = 1.60 acres" on a map entitled "Compilation Plan, Town of Farmington, Map Showing Land Released to by the State of Connecticut, Department of Transportation, CT Route 9 at Goodrich Road, Thomas A. Harley, P.E., May 2010". The conveyance shall be subject to the approval of the State Properties Review Board.

(b) The town of Farmington shall use said parcel of land for open space and recreational purposes. If the state requires said parcel for transportation purposes, or if the town of Farmington:

(1) Does not use said parcel for said purposes;

(2) Does not retain ownership of all of said parcel; or

(3) Leases all or any portion of said parcel,

the parcel shall revert to the state of Connecticut.

(c) The State Properties Review Board shall complete its review of the conveyance of said parcel of land not later than thirty days after it receives a proposed agreement from the Department of Transportation. The land shall remain under the care and control of said department until a conveyance is made in accordance with the provisions of this section. The State Treasurer shall execute and deliver any deed or instrument necessary for a conveyance under this section, which deed or instrument shall include provisions to carry out the purposes of subsection (b) of this section. The Commissioner of Transportation shall have the sole responsibility for all other incidents of such conveyance.

Sec. 7. (Effective from passage) (a) Notwithstanding any provision of the general statutes, the Commissioner of Transportation shall convey to the town of Tolland a parcel of land consisting of approximately 1.3 acres located in the town of Tolland in exchange for a parcel of land totaling approximately 2.2 acres located in the town of Tolland, provided the parcel conveyed by said town contains improvements that are comparable to those contained on the parcel conveyed by the department, as determined by the commissioner. The exchange of said parcels of land shall be made simultaneously and each in consideration of the other. The parcel of land to be conveyed by the Commissioner of Transportation in said exchange is identified as the portion of Lot 142-61-5 containing a commuter lot on "Connecticut Department of Transportation Right of Way Map, Town of Tolland, Interstate 84, from the Vernon town line easterly to Cathole Road, Number 142-07, Sheet No. 9 of 11, dated February 4, 1994". The parcel of land to be conveyed by Tolland in said exchange is identified as Lot 1, Block L, on Tolland Tax Assessor's Map 28. The exchange of said parcels of land shall be subject to the approval of the State Properties Review Board.

(b) The State Properties Review Board shall complete its review of the exchange of said parcels of land not later than thirty days after it receives a proposed agreement from the Department of Transportation. The state land shall remain under the care and control of said department until a conveyance is made in accordance with the provisions of this section. The State Treasurer shall execute and deliver any deed or instrument necessary for a conveyance of state land under this section. The Commissioner of Transportation shall have the sole responsibility for all other incidents of such conveyance.

Sec. 8. (Effective from passage) (a) Notwithstanding any provision of the general statutes, the Commissioner of Transportation shall convey to the town of Bristol a parcel of land located in the town of Bristol, at a cost equal to the fair market value of the property, as determined by the average of the appraisals of two independent appraisers selected by the commissioner, plus the administrative costs of making such conveyance. Said parcel of land has an area of approximately .11 acre and is identified as 308 Pine Street, located on the corner of Pine Street and Poplar Street. The conveyance shall be subject to the approval of the State Properties Review Board.

(b) The State Properties Review Board shall complete its review of the conveyance of said parcel of land not later than thirty days after it receives a proposed agreement from the Department of Transportation. The land shall remain under the care and control of said department until a conveyance is made in accordance with the provisions of this section. The State Treasurer shall execute and deliver any deed or instrument necessary for a conveyance under this section. The Commissioner of Transportation shall have the sole responsibility for all other incidents of such conveyance.

Sec. 9. (Effective from passage) (a) Notwithstanding any provision of the general statutes, the Commissioner of Transportation shall convey to the town of Monroe a parcel of land located in the town of Monroe, at a cost equal to the fair market value of the property, as determined by the average of the appraisals of two independent appraisers selected by the commissioner, plus the administrative costs of making such conveyance. Said parcel of land has an area of approximately .5 acre and is identified as a certain parcel on Monroe Tax Assessor's Map 18, that abuts Lots 38, 39, 40 and 41 on said map. The conveyance shall be subject to the approval of the State Properties Review Board.

(b) The State Properties Review Board shall complete its review of the conveyance of said parcel of land not later than thirty days after it receives a proposed agreement from the Department of Transportation. The land shall remain under the care and control of said department until a conveyance is made in accordance with the provisions of this section. The State Treasurer shall execute and deliver any deed or instrument necessary for a conveyance under this section. The Commissioner of Transportation shall have the sole responsibility for all other incidents of such conveyance.

Sec. 10. (Effective from passage) (a) Notwithstanding any provision of the general statutes, a public hearing having been held on the matter on March 21, 2011, by the joint standing committee of the General Assembly having cognizance of matters relating to government administration, the Commissioner of Environmental Protection shall enter into an agreement with Riverhouse Properties, LLC to exchange lands or other consideration of approximately equal value. The land to be conveyed by the state is approximately 17.40 acres and is identified as Haddam Assessor's Lot 22-2 Bridge Road, Haddam, CT. Such land is further identified as Lot 1 and Lot 2 on a map prepared by William B. Bergan, dated February 11, 2003, with revisions dated March 12, 2009, and with such revisions titled "Division of Former Eagle Land Corp. Prop. – 2 Lots". Such land to be conveyed by the state shall not include any land with frontage along the Connecticut River. The land or other consideration to be conveyed by Riverhouse Properties, LLC may include all or a portion of an approximately 87.70 acre parcel of land on the east side of High Street in the Higganum section of Haddam, CT. Such land is further identified as Parcels #42-1, 43 and 44 on Haddam Assessor's Map 24 and Parcel 92 on Map 14, and is further identified as land conveyed from Walkley Heights Associates via a deed dated May 26, 2004, as recorded in Volume 278 at Page 287 of the Haddam land records. The specific description of land or other consideration to be conveyed between the Department of Environmental Protection and Riverhouse Properties, LLC shall be established by mutual agreement of such parties, and such parties shall make all reasonable efforts to reach such agreement on or before December 31, 2011. Said specific description of land to be conveyed shall include, but need not be limited to, an identification of the portion of the 17.40 acre parcel conveyed by the state that shall remain open to the public. Said exchange shall be subject to the approval of the State Properties Review Board.

(b) The State Properties Review Board shall complete its review of the exchange of said parcels of land or other consideration not later than thirty days after it receives a proposed agreement from the Department of Environmental Protection. The state land shall remain under the care and control of said department until a conveyance is made in accordance with the provisions of this section. The State Treasurer shall execute and deliver any deed or instrument necessary for a conveyance under this section.

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:

Note: TF=Transportation Fund; GF=General Fund

Municipal Impact:

Explanation

The bill has the following fiscal impact:

1. A Transportation Fund revenue gain of approximately $280,000 from the sale of properties to two towns at fair market value;

2. A Transportation Fund loss of asset value of approximately $525,000 from the transfer of property to three towns;

3. A General Fund loss of asset value of approximately $269,000 from the transfer of property to Cheshire;

4. A minimal General Fund cost (less than $1,000 each) to the Office of the State Treasurer and the State Properties Review Board for making the conveyances;

5. There is no fiscal impact to the General Fund related to payments-in-lieu-of-taxes (PILOT) on state-owned property because the appropriation is insufficient to fully fund the grants and all payments are reduced on a pro rata basis.

6. 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.

The municipal impact for the towns listed in the table below is:

1. A total gain in asset value of $794,000 to four towns;

2. A total cost of $280,000 to two towns; and

3. A revenue loss for PILOT payments on state-owned property to the degree that the parcels are eligible for PILOT. It should be noted that PILOT payments are made in arrears so this transfer of land would be reflected on the 2011 Grand List and would be reimbursed by the state in FY 14.

Further Explanation

Table 1 summarizes sections of the bill with state fiscal impacts. 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 changes in the conditions of prior land conveyances. Table 3 summarizes other provisions in the bill.

The Out Years

State Impact: None

Municipal Impact: The minimal loss of PILOT payments noted above would continue into the future.

OLR Bill Analysis

sSB 1196

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

SUMMARY:

This bill (1) authorizes conveyances of state property in Cheshire, Wethersfield, Fairfield, Farmington, Bristol, and Monroe; (2) authorizes land exchanges in Tolland and Haddam; and (3) releases deed restrictions on properties in Tolland and Coventry.

EFFECTIVE DATE: Upon passage

NEW CONVEYANCES

The bill requires the following conveyances from the agencies to the towns named for the purpose specified:

1. the Department of Correction to Cheshire for parking (5 acres for administrative costs of the conveyance),

2. the Department of Transportation (DOT) to Wethersfield for municipal purposes (two parcels totaling .3606 acre at no cost),

3. DOT to Fairfield for open space (.2 acre at no cost),

4. DOT to Farmington for open space and recreation (1.6 acres for the administrative costs of the conveyance),

5. DOT to Bristol (.11 acre at fair market value plus administrative costs), and

6. DOT to Monroe (.5 acre at fair market value plus administrative costs).

Each conveyance is subject to the State Properties Review Board's (SPRB) approval within 30 days. Conveyances with a specified purpose (all but the Bristol and Monroe properties) revert to the state if the recipient uses the parcel for any purpose other than that specified in the bill. Additionally, the Fairfield and Farmington parcels revert to the state if the state requires them for transportation purposes.

When an agency conveys property at fair market value, the value is determined by the average appraisals of two independent appraisers chosen by the agency's commissioner.

LAND EXCHANGES

Tolland

The bill authorizes a land exchange between DOT and Tolland. It requires DOT to convey a 1.3 acre parcel to Tolland in exchange for a 2.2 acre parcel. It requires the Tolland parcel to contain improvements comparable to those on the DOT parcel, as determined by the DOT commissioner. The exchange (1) must be made simultaneously and in consideration of the other and (2) is subject to SPRB approval.

Haddam

The bill requires the Department of Environmental Protection (DEP) and Riverhouse Properties, LLC to enter into an agreement to exchange parcels of land in Haddam or other consideration of approximately equal value. DEP must convey a 17.4 acre parcel to Riverhouse in exchange for land or other consideration which may include all or a portion of an 87.7 acre parcel owned by Riverhouse. It prohibits DEP from conveying any land with frontage along the Connecticut River. The exchange is subject to SPRB approval.

The bill also requires (1) the specific description of land or other consideration conveyed to be established by mutual agreement and (2) DEP and Riverhouse to make all reasonable efforts to reach the agreement by December 31, 2011. The agreement must identify the portion of the land conveyed to Riverhouse that will remain open to the public, but the bill does not require any portion of the parcel to remain open to the public.

DEED RESTRICTIONS RELEASED

The bill releases a deed restriction on a 9.7 acre parcel conveyed in 2003 from DOT to Tolland. It allows Tolland to (1) use the parcel for economic development rather than open space purposes and (2) lease or sell the property. These uses are prohibited by the deed restriction. However, Tolland must pay DOT fair market value for the parcel in order to release the deed restriction (the prior conveyance was made for administrative costs).

The bill also removes a deed restriction that required a certain building owned by the Coventry Historical Society, Inc. to be used for museum and meeting place purposes. It authorizes the society to sell the building free of these deed restrictions, subject to SPRB's approval. The society must use proceeds from the sale for maintenance or related costs of its other properties.

BACKGROUND

Legislative History

The Senate referred the bill (File 609) to the Finance, Revenue and Bonding Committee, which reported a substitute that (1) eliminates a requirement that DEP hold a public hearing on the Haddam land exchange and (2) requires the agreement between DEP and Riverhouse to identify which portion of the land conveyed by DEP will remain open to the public.

COMMITTEE ACTION

Government Administration and Elections Committee

Joint Favorable Substitute

Finance, Revenue and Bonding Committee

Joint Favorable Substitute