Simsbury, CT - Economic Development Commission Minutes

The regular meeting of the Economic Development Commission was called to order at 7:30 AM in the Main Meeting Room of the Simsbury Town Offices. Chairman Louis George and Commission members David Balboni, Mark Deming, Alan Levesque, Nancy Haase, and Charles Minor were present. Also in attendance were Alison Sturgeon, Commission Clerk, as well as other interested parties.

Chairman George stated that an application regarding River Oaks was previously submitted and withdrawn so that the Town could work on the mixed-use regulation. For the EDC to get an economic understanding at this point concerning this project is something that has been done with other projects in the past. Since this application was before this Commission in the past, it was thought appropriate to have it before this Commission again for a pre-application presentation.

Mr. Donohue, representative of the Simsbury River Oaks project, stated that they are very appreciative of the EDC’s proactive leadership regarding issues of economic development growth of this community. He stated that they are currently at a pause in their process because the Town first must pass a mixed-use zone, which will then enable them to come forward with their plan.

Mr. Goman, Chief Executive Officer of Konover Development, stated his concerns regarding some people in Simsbury today and that misinformation and deceit seem to be acceptable tactics. People have said that the outcome of the PDD would allow 7-Elevens and homes on side streets. This is not at all what a PDD does or envisions. Some people are saying that the review and discussion of this project has not been done in the open. This is not true; this project has received more public discussion than most applications. He stated that many of the Commissions in Town have discussed this project, in which most had a time for public input.

Mr. Goman stated that his request of the EDC is to help Simsbury avoid those who would oppose new ideas and anyone who would try to keep reasonable and fair developers from coming here and getting a fair hearing. He stated that this is all they would like, a fair hearing, based upon the facts. The EDC is vital to Simsbury and although this Commission does not have the authority to tell the other land use boards what they should or should not do, it is important that they understand that economic viability of the community is linked to their ability to be open to all ideas by credible development professionals.

Mr. Goman continued his comments regarding a description of Konover and the primary engines of economic growth in this area and the process used to select market areas of projects. He also discussed the unmatched potential of this site. He stated that mixed-use is now the most popular form of development around the United States and is a more responsible form of development. The process is to analyze the site; they look at the Town and surrounding properties and the balance of businesses in the community. They also look at the land use policies. Regarding the River Oaks project, their analysis shows that their concept is very much in sync with the Planning Commission’s thinking around mixed-use, and also in sync with a large number of Simsbury residents. A high quality, mixed-use project will thrive in this location. This is the highest quality site in Simsbury for this kind of commercial development. It has access, infrastructure, sewer and water capacity already in place, and the site conditions are excellent; there is no better site in Simsbury for development. This has the potential to spur the greatest possible investment in this Town. Because of the location and quality of this site, they are confident that the site will support high quality residential, retail and office uses in this TND (Traditional Neighborhood Development) setting.

Mr. Klepper-Smith employed by DataCore Partners, LLC, stated his role is to first provide objective and accurate measures of net fiscal impacts to Simsbury. He wrote a report, which includes assumptions, calculations and documentation. Mr. Klepper-Smith presented a Power Point presentation of the highlights of his analysis and summarized the key points:

Mr. Klepper-Smith stated that the conclusion of the River Oaks project is that there are real and tangible net fiscal benefits to be had by the Town of Simsbury. Fiscal impact analysis is a projection of the direct, current public costs and revenues association with residential or commercial growth. Indirect impacts are not treated due to the near impossibility of predicting, accurately, secondary consequences and because of the potential for double counting.

Regarding the residential component, Mr. Klepper-Smith stated that they used the per capita multiplier method. This method is the classic average costing approach for projecting the impact of population change on local Municipal and school district costs and revenues. Regarding the commercial portion, the proportional valuation method is used to project the impact of non-residential or commercial and industrial development on local costs and revenues.

Regarding the process of estimating fiscal impacts, Mr. Klepper-Smith stated that they looked at expenditures from the latest Town budget, using 100% of the Town’s non-education budget. Education expenses get treated separately, due to ECS Grants. They also looked at projections of future mill rates. He stated that they also looked at projected tax revenues for personal property and inflation factors. He then talked to the Commission regarding student and demographic multipliers. For this study, DataCore used the highest possible multipliers for estimating student and residential counts, thereby producing conservative measure of net fiscal impacts.

Mr. Klepper-Smith talked about the treatment of local educational expenditures. He stated that the bottom line is that when they looked at student costs in Simsbury, the total cost was approximately $10,877 with approximately 89.9% of that being paid by local property taxes. He also talked about residential construction and the net fiscal impacts. The River Oaks project is proposing 210 units of 2, 3, &4 bedrooms. Regarding net fiscal impacts, the Town, between 2008 and 2012, will receive an incremental $798,300 in new net taxes as of 2010 using conservative consumptions.

In his final analysis, Mr. Klepper-Smith stated that he feels this development represents a great opportunity for the Town of Simsbury. Looking at the current economic environment, it is safe to say that this project is fiscally stimulative to Simsbury’s finances and that these fiscal benefits extend beyond the study period.

Commissioner Minor questioned what the average taxpayer would see in their taxes. Mr. Klepper-Smith stated that this is potential property tax relief; it all depends on how the Town chooses to spend these net fiscal benefits. Chairman George stated that this additional revenue could be used by the Town to do other projects and to leverage the additional revenue and how bonding comes into effect. Mr. Goman stated that 8% of the Town’s budget could be used to bond projects; the bonding rate is approximately 5%, although, it is ultimately the Town’s decision how to use the additional revenue. Attorney Donohue reminded the Commission that one of the most important things to remember about bonding and public expenditures on this project is that it is proposed with no public infrastructure costs; they are proposing privately owned streets. This is truly a significant fiscal impact for the positive.

Commissioner Balboni stated that some people are skeptical about this project because of the assurance that, if the Town approves this project, what will be imposed on the developer to be sure that the project is completed. From a market standpoint, Mr. Goman stated they will build only what they can sell. Everything in this presentation is supported by extensive market research, which shows demand for the uses and the amounts of those uses. There is a tremendous market interest in this project. He talked about many people already wanting to give him deposits for houses; they would like to live in this development and move their businesses in there, also. Many people would like to be able to walk to work. From a regulatory and land use standpoint, Mr. Donohue stated that they believe traditional bonding would be one part of this, and that the PDD will have a phasing concept, which would have a phasing plan approved as part of the final approval. There would be traditional bonding, Town timing of the investment in the infrastructure with bonding, and the phasing plan, which would control that there would be a balance of uses.

Commissioner Deming questioned if there were similar types of projects in New England, or elsewhere, that have been completed. Mr. Goman stated that there is not much similar to this in New England, although, Evergreen Walk is being expanded to include residential and office. This is a new form of development in the New England area, although it has been common in other parts of the United States for over 20 years. Commissioner Deming also questioned if the design of this project was based on another project within the United States, or if this project’s design was driven by market data only. Mr. Goman stated that this project is based on other similar projects around the country. He will be getting a list of projects from around the country to the Commission, which Commissioner Deming thought would be very helpful.

Chairman George asked if the applicant had a response to those people who say they love the project, but would not like to see the “big box” as part of the development. Mr. Donohue stated that the big retailer brings the energy, which enables the whole rest of the array of uses on the site. To reduce the key component of energy for that site is to reduce the entire site and to destroy the economics of it, which would, in turn, make it something else. He stated that they have designed what can be the greatest investment in Simsbury and the greatest contribution of our lifestyle of anything that has ever been proposed in Simsbury.

Commissioner Balboni stated that some people say that if this project is built, it will destroy the center of the Town. He would be very interested in seeing a study regarding the effects and impacts of the downtown section when there is a big investment outside of the downtown area. Mr. Goman stated that the retailers for River Oaks are enthusiastic about the format of the project. Their long-term plan is to open stores in the Farmington Valley. A downtown merchant will, sooner or later, face increased competition that comes to Town. Retailers, with their data, see that there is a substantial customer base in the Valley and that they need to get closer in order to serve. The question for Simsbury is, do we want those retailers to go into other Towns and pay taxes to other Towns and generate economic activity around them in other Towns? From a downtown retailer’s standpoint, if these strong competitors are coming into the Valley, where best should they locate? The reality is that the closer the retailer is to other businesses, the better off they will be from an economic activity standpoint.

component. Mr. Donohue stated that a part of a project could be proposed for PDD treatment. There would be intense, very controlling exercises of Town powers, with 40’ scale drawings, to know exactly what will be built within it. Only certain parcels will be capable of this. There are only 3-5 parcels in Simsbury that could handle this.

Commissioner Balboni stated that his personal concern is that he does not see many cars within this project. He questioned if there had been any thought to underground parking. Mr. Goman stated that the current design can handle the amount of cars that need to be parked on the site. There has been extensive thought to the idea of structured parking. They will need to go through the Zoning process before this issue can be determined.

Chairman George stated that this Commission voted on this last month to get signed up. Commissioner Haase stated that Hiram is proceeding with generating the paperwork for this. Chairman George stated when this is done, they can start getting items onto the site, and then they can develop some type of marketing that they can let people in Town know that it is available for them to use and get their properties on the site. Commissioner Haase stated she would like this Commission to see the presentation of the website, which she has already seen. Chairman George agreed. Commissioner Minor stated that he would like to open this presentation up to the community so business owners can be aware of this website and its functions. Jeff Vose agreed that having property owners attend would be a good idea. Commissioner Haase stated that if this Commission is going to reach out to the business community, it would help for them to first have a basic understanding of CERC.

Main Street – Rich Correia stated that Bill Selig Jewelers would be celebrating their 30^th anniversary on Tuesday, October 16^th. He is inviting the community to attend. Also, in November, Mr. Selig will be renovating the inside of his store; he will be open the entire time during the renovation. He will then be having another Grand Opening celebration. He stated that Holloway’s would be celebrating their anniversary soon, also.

Mr. Correia stated that Preserve America has received a grant from the Federal Government and from the State of Connecticut in the amount of $30,000. The way the program works is that they have to spend the money and then will get reimbursed. They will be having several fundraisers to help raise money. They will be having an auction on November 10, 2007 from 5:30p.m. – 8:00 p.m. at the Simsbury Bank. Tickets will be on sale for $30. All of the food for this event has been donated by The Riverview. Also, in either April or May, Main Street will be sponsoring a Bridal Expo. It will be hosted at The Riverview; they will be having over 50 vendors, hopefully attracting brides from all over the region to come to Simsbury and maybe even get married on Simsbury’s Main Street.

Also, Mr. Vose stated that they had just finished a 5-day study north of Interstate 84 in Hartford where the vacant land is and of the adjacent neighborhoods. He stated that it was a great experience. The amount of work they did in a week’s time was amazing. A lot of the concepts that were seen in the River Oaks presentation were incorporated in that study. Mr. Vose will be sending the link to the study to the Commission; the full report will be coming out in a few months.

Chairman George stated that he did receive correspondence in regard to the Simsbury Chamber of Commerce’s decision to discontinue sponsoring September Fest. Mr. Jansen stated that, to Board and Committee members, it was a very quick decision. There will be another meeting tomorrow to discuss this issue and to make sure that the decision making process was correct.

A member of the Board of the Chamber of Commerce stated that the Board was given information from the September Fest Committee, which helped them to look at this event. It is an investment of time and energy of the Chamber; they looked at how best to serve all of the members of their Chamber. The Chamber has changed from 150 members to over 550 currently. No matter what happens, there will be an excellent, probably lively discussion about what is next and how an event like September Fest fits in.

Commissioner Balboni stated, understanding the workload of the Chamber, the EDC would like to be in a position to help if they can in any way. Instead of aborting the event without outside discussion, which was shocking to many people, many organizations may wish to help also. Commissioner Haase stated that many people think the Chamber is in trouble, although, it is not. Like any good organization, they occasionally re-evaluate what they are doing.