Tiff over TIF Grant

    Formerly contaminated and uninhabitable, the recently remediated and developer-supported North Haven Commons across from Target was on the voting ballot for the residents of North Haven during a special meeting last week. The site was seen as more than just new development–supporters say it represents North Haven’s new approach to businesses though opponents feel it’s too much gvernment involvement.

    The special meeting called forth several resolutions, including the most contested one: approving Tax Incremental Financing (TIF) for North Haven Commons, which passed in a vote of 31 to 15.

    Town Attorney John Parese explained the details of the TIF.

    “Conceptually, a developer applies to the municipality, in this case North Haven, for a grant to help him remediate property that is classified as contaminated,” said Parese. “That money is used to help offset the cost of cleaning up the site so the land can be put to profitable use. The town agrees to repayment of the grant with six percent interest over the term, in this case 15 years, with half of the additional real estate taxes generated by the new development.”

    Parses called the plan a “win, win, win.”

    “The developer wins because it offsets his cost, the town wins because our tax base is increased, plus we get personal property taxes that are generated by new economic development, plus jobs on a site that was previously uninhabitable…The state wins because the site is cleaned up and put to proper use,” said Parese.

    According to Parese, the project has been in the works for more than a year and was started under the previous administration.

    Third Selectman Michael Freda took the microphone to express his support for the project at last week’s meeting.

    “This wonderful project will generate approximately 7.5 million dollars in tax revenue for North Haven and that’s a great thing,” said Freda.

    The town will, in accordance with TIF regulations, repay $3.6 million over the course of 15 years by using half the money generated yearly from the development.

    “The original buyers came in, looked at the environmental damage, and decided it would have to be cleaned,” said North Haven Treasurer William Gambardella. Developer and president of Eclipse Development “Doug Gray came in and said he could do this, got the seller to reduce the price, and came to the town for help. It’s important the town follow through on business willing to give us jobs and tax dollars. We cannot be seen as a town that makes it hard for businesses.”

    Not everyone thought they won in this scenario. Resident Sherman Katz said he feels the town needn’t have gotten involved, as his comments to Gray reflected.

    “You’ve undertaken this whole project, which is fantastic and great…but it’s [TIF] not necessary because you will finish the project anyway, so I don’t think the town should have to repay this loan when the development will happen if you’re given the money or not,” Katz stated. “I’m against borrowing money to support the project that is almost complete.”