Prospect Town Council

May 1, 2007

The meeting was called to order by Joseph Commendatore, Chair at 7:00 p.m.

Members Present: Robert Doyon, Patricia Geary, Theresa Graveline, Frederick Harkins, Douglas Merriman, Dominick Mirabelle, Dominic Moschella and Joseph Commendatore.

Members Absent: Roger Kergaravat

Mayor’s Report:
The Mayor discussed the Resolution to be adopted on the Referendum for the Town Budget. He also mentioned a letter from the Town Clerk stating that a petition has been filed requesting a machine vote on the 2007-2008 Town Budget. The Mayor also submitted a letter regarding a legislative update discussing the possibility of the State taking over municipality medical insurance. The Mayor also submitted a flier on this week’s revenue for the Town Budget.

Mayor Chatfield recommended that the Council set a meeting to table the mill rate after the referendum.

The Mayor gave a brief history on the U.S. Cap property. He stated that the Town does not own this property. It consists of a five acre parcel on New Haven Road. In 2001 the Town received $900,000.00 in grants administered by the Federal and State Government to clean up the property. A few tanks and hundreds of yards of materials were removed from the property. Attorney John Knott representing the Town with this issue, asked Diane Lauber, Tax Collector for the Town of Prospect, how much is owed in back taxes for this property. She stated that through June of 2007 the back taxes amount of $359,000.00. Attorney John Knott mentioned the packet of information that was submitted to the Council. The Option Agreement, Exhibit A-the description of the property, Schedule B-Assigned Liens, Exhibit C- Agreement for Assignment of Certain Real Property Tax Liens, and Exhibit D-the Tax Abatement Agreement. The Town Meeting is for the purpose of giving authority to the Town to sell the tax liens. The Council has independent authority to grant and approve a tax abatement agreement. There was further discussion on the history of the property. The State allows people to come in and work on the property, with an arrangement to get the property cleaned up to a practical degree. The first option is for a six month period for $1,500.00 and then it is $10,000.00 for an additional one year period. The Tax Abatement agreement is for two years with various terms and conditions. If Fitzgerald Realty receives an indemnification from the DEP, eventually the Town will have this property on their tax roles at its then market value. P. Geary asked what has happened since the Council granted the McAllen’s approval to hook up electricity to the U.S. Cap building. Michael McAllen stated that they pulled the permit to put electricity into the building but it still hasn’t been hooked up yet. T. Graveline asked for clarification. She stated that the Town Council has the ability to approve the abatement agreement then the Town Meeting is the form of government to use in order to authorize the tax lien sale and the option agreement. Attorney Knott stated that the Option Agreement and Assignment of Tax Liens is really one thing. The Town Meeting would be to approve the Option Agreement and the Tax Lien sale but the Council is authorized to approve the Tax Abatement Agreement; the Town Meeting comes first. The Option Agreement is dependent and has been signed by Fitzgerald Realty, Christine and Michael McAllen; it doesn’t become effective until the Abatement Agreement is approved, which can happen the same night as the Town Meeting. Atty. Hess representing Fitzgerald Realty, Michael and Christine McAllen, stated that their plan is to ultimately find a solution and rehabilitate the existing structure and turn it into a nice project that will eventually generate tax revenue for the Town. P. Geary asked for clarification on the process again. Atty. Knott read the draft notice for the Town Meeting to take place possibly the first meeting in June. P. Geary also asked about check for $1,500.00 that is attached to the Option Agreement. Atty. Knott stated that the check is not cashed until the necessary approvals are granted.

Motion made by R. Doyon to set a Town Meeting for June 5, 2007 at 7:00 p.m. for the purpose of authorizing the assignment of liens filed by the Prospect Tax Collector to secure unpaid taxes on real property as provided under the provisions of Chapter 206 of the General Statutes for property located at 214 New Haven Road, with the regular Town Council meeting to follow. Motion seconded by T. Graveline.

Motion unanimous.

Chair’s Report: none

Guests: none

Public Participation: none

Approval of Minutes:

Motion made by R. Doyon to approve the April 9th, 2007 Budget Workshop Minutes as amended. Motion seconded by D. Merriman.

F. Harkins, D. Mirabelle, J. Commendatore abstained.

Motion carried.

Motion made by R. Doyon to approve the minutes of the April 16th, 2007 Budget Workshop Meeting as amended. Motion seconded by F. Harkins.

Motion unanimous.