PA 16-133—sHB 5484
Planning and Development Committee
AN ACT CONCERNING THE CONNECTICUT CITY AND TOWN DEVELOPMENT ACT
SUMMARY: This act relaxes requirements for municipalities to use the economic development authority granted by the Connecticut City and Town Development Act.
By law, the legislative body of a municipality seeking to use this authority must adopt a resolution determining that specific conditions exist in the municipality. Under prior law, the resolution did not become effective unless it was subsequently submitted to the municipality's electors and approved by them in a referendum. The act makes the submission to the electors optional, rather than mandatory.
The act also broadens the conditions under which a municipality may implement the development act's authority. Prior law required the resolution to include, among other things, a finding that the municipality contains blighted and deteriorated conditions. The act instead requires it to include a finding that (1) parts of the municipality contain these conditions or (2) the municipality would substantially benefit from commercial or residential property renovation, rehabilitation, or construction. Prior law also required municipalities to include a finding that the private sector is not meeting the municipality's need for housing, employment, and blight reduction. Under the act, municipalities may include an alternative finding that the private sector is not meeting the need for commercial or residential property renovation, rehabilitation, or construction.
EFFECTIVE DATE: October 1, 2016
City and Town Development Act
The Connecticut City and Town Development Act (CGS § 7-480 et seq. ) allows municipalities to (1) acquire, develop, and improve property; (2) convey property to private developers; and (3) lend money to those who cannot obtain financing from banks or other traditional lenders. Municipalities may grant a 100% property tax exemption for up to 20 years for property developed under the act. By law, a resolution to use the act's authority is valid for up to five years and may be reauthorized.
OLR Tracking: RP; TA; VR; bs