OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-1196

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

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 12 $

FY 13 $

Department of Transportation

TF - Revenue Gain

280,000

None

Department of Transportation

TF - Loss of Asset Value

525,000

None

Correction, Dept.

GF - Loss of Asset Value

269,000

None

Treasurer; Dept. of Administrative Services

GF - Cost

Minimal

None

Note: TF=Transportation Fund; GF=General Fund

Municipal Impact:

Municipalities

Effect

FY 12 $

FY 13 $

FY 14 $

Fairfield; Farmington; Wethersfield; Cheshire

Gain of Asset Value

794,000

None

None

Bristol; Monroe

Cost

280,000

None

None

Various Municipalities

Revenue Loss

None

None

See Below

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.

Table 1: Sections with a State Fiscal Impact

Sec.

From

To/Location

Acres

Est. Value

Use Restriction

Transportation Fund Loss of Asset Value

2

DOT

Wethersfield

0. 36

$75,000

municipal

4

DOT

Fairfield

0. 2

$50,000

transportation

6

DOT

Farmington

1. 6

$400,000

open space and recreation

     

Total

$525,000

 
           

Transportation Fund Revenue Gain

8

DOT

Bristol

0. 11

$65,000

None

9

DOT

Monroe

0. 5

$215,000

None

     

Total

$280,000

 
           

General Fund Loss of Asset Value

1

DOC

Cheshire

5. 0

$269,000

parking

Table 2: Changes to Prior Conveyances

Sec.

From

To

Act/Sec.

Provision

3

DOT

Tolland

SA 03-19, Sec. 34

Change in use restriction to permit leasing or sale for economic development if town pays fair market value for property

5

State of CT

Coventry Historical Society

SA 63-365

The Coventry Historical Society is authorized to sell the property

Table 3: Other Provisions

Sec.

Provision

7

DOT will convey 1. 3 acres to Tolland in exchange for 2. 2 acres provided that the two parcels have comparable improvements

10

DEP will convey 17. 4 acres to Riverhouse Properties, LLC in exchange for approx. 87. 7 acres

Sources:

Department of Transportation, Office of Policy and Management

The Out Years

State Impact: None

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