Simsbury, CT - Board of Finance Minutes

Paul Henault, Chairman, called the Special Meeting of the Board of Finance to order at 7:34 a.m. in the Main Meeting Room of the Simsbury Town Offices. The following members were present: Candace Fitzpatrick, Peter Askham, James Belfiore and Mary Glassman. Michael Wade arrived at 7:48 a.m. Also present were Kevin Kane, Finance Director, Richard Sawitzke, Town Engineer, Paul Fetherston, Assistant to the First Selectman, and other interested parties.

Ms. Glassman questioned the cost difference between purchasing the Flamig Farm parcel fee simple versus purchasing the development rights. Mr. Sawitzke stated that the price difference is $3,000. He confirmed that the Town has a five year option to purchase the second parcel. Mr. Sawitzke stated that the BOS felt that purchasing the development rights would allow the agricultural part of the property to be preserved. He stated that the Town does not want to be in the farm lease business. Ms. Glassman questioned what the Town would do if they wanted to use the land for something like soccer fields. Mr. Sawitzke stated that the Town would have to buy out the difference.

Mr. Askham questioned the effect of not purchasing tract 2, noting that the appraisal is based on both tract 1 and tract 2. He pointed out that the Town does not have the funding in place to purchase tract 2. Mr. Sawitzke stated that the Town has applied for a state grant which would pay 40% of the cost of tract 2. He noted that the agreement includes allowing the owner to build a house on the second tract and the value of that land will be subtracted from the cost of the parcel.

Mr. Belfiore questioned what the Town would do if they receive complaints regarding the site, such as occurred with the Dewey property. Mr. Sawitzke pointed out that the Town owns the Dewey parcel and will not own the Flamig Farm parcel. Mr. Belfiore questioned whether the Town leases other farmland. Mr. Sawitzke stated that the Town does lease farmland. Mr. Belfiore questioned whether there have been problems with leasing farmland. Ms. Glassman stated that the Town has not experienced problems with leasing farmland. Mr. Sawitzke stated that the potential farm lease problem usually involves animals, particularly if an animal needs to be put down.

Ms. Fitzpatrick questioned whether the owner is willing to sell his land. Mr. Sawitzke stated that the owner only offered to sell the development rights. Ms. Fitzpatrick noted that funds to purchase development rights will not be available again until the fifth year of this agreement and therefore the BOS has to commit to using their capital in the fifth year for the purchase of tract 2. She questioned whether it is the consensus of the sitting policy makers to commit to the second tract. Ms. Glassman questioned the amount which would need to be budgeted each year to obtain enough funds for the purchase of the parcel. Mr. Kane stated that $160,000 would need to be budgeted each year. He suggested that the 1% of RESERVES available for the purchase of real estate may not include the purchase of development rights.

Mr. Sawitzke stated that the Town has prioritized the purchase of parcels in the following order: (1) Flamig Farm, (2) Hall Farm, and (3) the Blazis property in Tariffville. He stated that the Town has a pending state grant for Hall Farm which would include the purchase of 11 acres of development rights. He noted that the owner of Flamig Farm wanted the Town to purchase development rights for both tracts, but the Town could not afford to purchase both at this time.

Mr. Askham expressed his concern that the Town will only receive the value from the purchase of Flamig Farm if they purchase both tracts. Mr. Sawitzke stated that the Town will pay $28,000 per acre for tract 1 and $35,000 per acre for tract 2. Mr. Askham questioned whether the Planning Commission approval of the purchase agrees with the supposition that the land could be sold as 18 buildable lots. Mr. Sawitzke stated that the land was appraised on the basis of 18 buildable lots, 9 of which are on tract 1.

Mr. Belfiore expressed his concern with paying fair market value versus the value of farmland when purchasing the parcels. He voiced his concerns regarding: (1) whether this is open space or farmland, (2) whether the purchase of development rights is more prudent than purchasing the land, and (3) where the house would be located on tract 2. Mr. Belfiore questioned why the farm across the street is not being purchased. Mr. Sawitzke stated that the Town looked at the farm parcel, where 3 lots could potentially be developed, but the Town doesn’t want to be in that business.

Chairman Henault expressed his concern that using these valuation formulas the Town will be setting a precedent for other acquisitions. Mr. Sawitzke stated that each parcel will be taken individually with its own formula. Chairman Henault questioned why the Town missed the opportunity to apply for the State program on the purchase of tract 1. Mr. Sawitzke stated that the funding is announced randomly and when negotiations on this parcel began, prior to November, the Town was not aware of the State program. Chairman Henault questioned how the State values the property. Mr. Sawitzke noted that the State depends on the Town’s appraisal. He stated that the Town has applied for State funding on the purchase of development rights on tract 2 and they should know if they’ve received State funding in March. Mr. Sawitzke noted that the Town will then have 4 months to commit to the purchase. He stated that the request for matching funds would be added to next year’s budget. He explained that when the Town informs the State that the funds have been placed in the budget the Town can delay the closing date up to 18 months. Mr. Sawitzke stated that the cost for tract 2 would be $470,000 if the Town receives the 40% State grant. He noted that the State has indicated that they have no problem funding the purchase of development rights.

Chairman Henault questioned whether the purchase of Flamig Farm would fall under the State grant program. Mr. Sawitzke stated that the purchase of the property would fall under the State grant program, but the application would need to be modified. He noted that the owner has indicated that he wants to stay in business and the Town did not discuss the purchase of his land. Ms. Glassman pointed out that if the owner is considering selling his land to a developer, then he is obviously willing to sell the land. Mr. Sawitzke noted that the purchase of the land by a developer would be conditional upon approval of the lots. Chairman Henault suggested possibly purchasing the development rights on tract 1 and purchasing the land on tract 2. Mr. Sawitzke stated that purchasing tract 2 can be discussed with the owner. He confirmed that receiving State funding would include restrictions being placed on the property.

Mr. Askham stated that if the purchase of tract 1 is part of a long-range plan for Flamig Farm then there is value in the purchase. He stated that he supports the purchase of development rights which allows the families to continue to farm. He suggested that the Town partner with the land trust on these types of purchases in the future. Mr. Wade agreed with Mr. Askham’s statements and noted that the BOS needs to plan for open space and development rights purchases in their capital budget.

Mr. Belfiore expressed his concern with the fact that the BOF was given short notice to approve this deal. He stated that this is a good program and parcel, but if the BOF needs to approve deals and are ignored in the future it will be done with the potential peril of not obtaining approval. Ms. Glassman stated that she will not support this purchase because the information received by the BOF is incomplete. She noted that the document received by the BOF states a 7 year option to purchase tract 2, but the final document states a 5 year option.

Ms. Fitzpatrick agreed with the concern that the BOF is not receiving information in a timely fashion and then are given a deadline for making a decision. She stated that she will attend meetings regarding these purchases as the BOF liaison. She suggested that the issue of the location of the house on tract 2 should be resolved prior to the purchase of the development rights on tract 1 because it effects the value of tract 2. Mr. Wade pointed out that the BOS needs to approve the location of the house on tract 2. Mr. Sawitzke stated that if the proposed house is in a location that devalues the land the Town will have a new appraisal done on the property. He noted that the Town will not purchase the development rights on the housing lot. Chairman Henault questioned whether the subtraction of the housing lot will be based on acreage or the value of the lot. Mr. Sawitzke stated that it will be based upon $35,000 per acre.

Chairman Henault questioned Charles Houlihan, the owner’s attorney, as to whether his client would consider the outright purchase of the land by the Town. Mr. Houlihan stated that the purchase of the land introduces a lot of issues. He noted that the 5 year option gives the owner a lower value in 5 years, selling the second tract outright would cause the value of the land still owned to decrease, and sale of the land would not allow succession to the next farmer. Mr. Houlihan stated that the decision matrix is different for the sale of the land and the owner has not considered that option.

Chairman Henault suggested that a letter be sent to the First Selectman regarding the approach to this situation and requesting that a better process be followed in the future. Mr. Belfiore suggested that the letter also discuss Ms. Fitzpatrick’s role as a liaison and that she be included in any substantive discussion of property which requires approval by the BOF. The BOF agreed that Chairman Henault should send a letter to the First Selectman.

Mr. Sawitzke stated that there is no contamination on the Tariffville property based on the Phase 2 study. Chairman Henault questioned how this property is considered open space. Mr. Sawitzke stated that it is considered an urban park. Mr. Belfiore questioned the statement that the parcel will be developed according to the wishes of the populace of the village. Mr. Sawitzke stated that this is a perception, not an agreement. Mr. Fetherston stated that the BOS plans to hold a Charette for the village of Tariffville and at this point has no planned use for the property.

Chairman Henault noted receipt of a letter from John Nagy (Addendum 1). Mr. Fetherston stated that the Denalsky property is a residential home which is currently on the market for $200,000. Chairman Henault questioned whether the purchase of the Tariffville property would negatively impact the purchase of other parcels coming forward. Mr. Sawitzke stated that after the purchase of Flamig Farm, Hall Farm and the Tariffville property the Town will have no funds remaining for the purchase of open space and development rights.

Mr. Askham stated that he does not oppose the purchase of this property, but has concerns regarding utilizing funding when other deals are pending. Mr. Belfiore expressed his agreement with Mr. Askham’s statement. Ms. Glassman stated that the BOS sent this parcel forward so it must be a priority for them and it is up to the BOS to determine their priorities. Mr. Belfiore stated that when BOF approval is necessary the priorities of the BOF become important. Ms. Glassman noted that the BOS will need to approve the purchase of this property knowing that they will not receive any additional funds above the $282,000 left in the fund. Mr. Belfiore stated that the BOF needs to know what ultimately will be coming before the BOF.