Sec. 8-169jj. Purposes of authority. Powers.
Sec. 8-169kk. Written procedures for conduct of board of directors.
Sec. 8-169ll. Member municipalities; joint member entities. Appointment of local development board.
Sec. 8-169oo. Bonds, notes and other obligations of the authority.
Sec. 8-169aa. Appointment of receiver to rehabilitate abandoned and blighted property. Petition to superior court. Powers and duties of receivers. Disposition of property. Termination of receivership. Exceptions. (a) As used in this section:
(1) “Abandoned property” means any building that meets the conditions described in subdivision (2) of subsection (c) of this section;
(2) “Actively marketed” means (A) a sign has been placed on a property advertising sale of such property, (B) the owner of such property has (i) hired a real estate broker or salesperson, licensed pursuant to section 20-312, to include the property in the multiple listing service or to otherwise market the property, (ii) placed advertisements weekly, or more frequently, in print or electronic media, or (iii) distributed printed advertisements, and (C) such sign contains accurate contact information for such owner or real estate broker or salesperson;
(3) “Building” means a residential, commercial or industrial structure and the land appurtenant to such structure, including any vacant lot on which such structure was demolished;
(4) “Competent entity” means a person or entity, including a governmental unit, with experience in the rehabilitation of buildings and the ability to provide or obtain the necessary financing for such rehabilitation;
(5) “Costs of rehabilitation” means each expense for construction, stabilization, restoration, maintenance, operation or demolition of a building, or any action reasonably associated with the rehabilitation of a building, including, but not limited to, environmental remediation and architectural, engineering, legal, financing, permit and receiver's fees;
(6) “Development organization” means a nonprofit corporation established, in part, to carry out the purposes of blight remediation, community development, economic development, historic preservation or promotion or enhancement of affordable housing opportunities;
(7) “Historic property” means a property listed on the National Register of Historic Places, a contributing property in a national register historic district or a property located in an historic district established pursuant to section 7-147c;
(8) “Immediate family” means a parent, spouse, child or sibling;
(9) “Lienholder of record” means a lienholder owning a valid interest in the abandoned property, which interest is recorded in the land records of the municipality in which such abandoned property is located;
(10) “Municipal code” means any building, housing, blight, property maintenance, fire, health or other public safety ordinance enacted by a municipality;
(11) “Owner” means the holder or holders of title to, or of legal or equitable interest in, a building, and shall include, provided any such interest is a matter of public record, any heir, assignee, trustee, beneficiary or lessee of such building;
(12) “Party in interest” means any person or entity with a direct and immediate interest in a building, including (A) an owner of such building, (B) a lienholder or other secured creditor of such an owner, (C) a resident of or business owner in the municipality in which such building is located, provided such resident's residence or such owner's business is located less than one thousand feet from such building, (D) a development organization (i) in the municipality in which such building is located, and (ii) that has participated in a project in line with such organization's purpose within a five-mile radius of such building, or (E) the municipality in which such building is located;
(13) “Receiver” means any person or entity that takes possession of a building pursuant to the provisions of this section for the purpose of rehabilitating such building or otherwise disposing of such building; and
(14) “Substantial rehabilitation” means (A) the costs of any repair, replacement or improvement to a building exceed fifteen per cent of the value of such building after the completion of all such repairs, replacements or improvements, or (B) the replacement of two or more of the following: (i) Roof structures, (ii) ceilings, (iii) wall or floor structures, (iv) foundations, (v) plumbing systems, (vi) heating and air conditioning systems, or (vii) electrical systems.
(b) (1) In any municipality with a population of thirty-five thousand or more, a party in interest may file a petition for the appointment of a receiver to take possession and undertake rehabilitation of a building within such municipality, which petition shall be filed in the superior court for the judicial district in which such building is located. The proceeding on the petition shall constitute an action in rem.
(2) (A) The petition shall include a sworn statement of the petitioner that, to the best of his or her knowledge, the building meets the conditions described in subdivision (2) of subsection (c) of this section on the date the petition is filed. The petition shall also include, to the extent available to the petitioner after his or her reasonable efforts to obtain the following information, (i) a copy of any citation or order charging the owner of the building with being in violation of municipal code requirements or determining the building to be a public nuisance, blighted or unfit for human occupancy or use, (ii) a recommendation for appointment as receiver for the building, (iii) a preliminary plan detailing (I) initial cost estimates of rehabilitation of the building for purposes of compliance with the applicable municipal code and plan for the area adopted by the municipality in which the building is located, and (II) anticipated funding sources, and (iv) a schedule of each mortgage, lien or other encumbrance on the building.
(B) The petition may include any other property adjacent to the building, provided (i) such other property is owned by the same owner as the building, and (ii) the building and each such property are used for a single or interrelated purpose.
(3) A true copy of the petition shall be served on the owner of the building and each lienholder of record, including any municipality, unless such municipality is the petitioner, in the manner provided by section 52-57. In addition, the petitioner shall record a notice of lis pendens with the clerk of such municipality, in the manner provided by section 52-325.
(c) (1) The court shall hold a hearing on the petition and issue a decision after completion of the hearing.
(2) The court may appoint a receiver for the building if the court finds that, on the date the petition was filed, each of the following conditions applied:
(A) The building has not been legally occupied for at least the twelve months immediately preceding the date of such filing;
(B) The owner fails to present compelling evidence, as determined by the court, that the owner has (i) actively marketed the building during the sixty days immediately preceding the date of such filing, and (ii) made a good faith effort to sell the building at a price reflective of circumstances and market conditions;
(C) The building is not subject to a pending foreclosure action by an individual or nongovernmental entity;
(D) The owner fails to present compelling evidence, as determined by the court, that the owner acquired the building during the twelve months immediately preceding the date of such filing, except that the provisions of this subparagraph shall not apply when ownership of such building is in dispute in any other legal proceeding. For the purposes of this subparagraph, “compelling evidence” does not include evidence that (i) the prior owner is a member of the immediate family of such owner, unless the change in ownership resulted from the death of the prior owner, and (ii) such owner or the prior owner is a corporation, partnership or other entity of which an interest in excess of five per cent is held by a principal, or a member of the immediate family of such principal, of such owner or the prior owner; and
(E) The court finds at least three of the following:
(i) The building is a public nuisance, blighted or unfit for human occupancy or use pursuant to the applicable municipal code;
(ii) The building requires substantial rehabilitation, and no effort to rehabilitate the building has been made during the twelve months immediately preceding the date of such filing;
(iii) The condition and any vacancy of the building materially increase the risk of fire to the building and any adjacent property;
(iv) The building is susceptible to unauthorized entry and resulting potential health and safety hazards, and (I) the owner has failed to take reasonable and necessary measures to secure the building, or (II) the municipality has secured the building as a result of the failure by the owner;
(v) The building is an attractive nuisance to children as a result of the presence of abandoned wells, shafts, basements, excavations and other unsafe structures;
(vi) The building is an attractive nuisance for illicit purposes, including, but not limited to, prostitution, drug use and vagrancy;
(vii) The presence of vermin or the accumulation of debris, uncut vegetation or physical deterioration of the building creates potential health and safety hazards, and the owner has failed to take reasonable and necessary measures to remove such hazards; or
(viii) The appearance or other condition of the building negatively impacts the economic well-being of residents or businesses in close proximity to the building, which impact may include decrease in property values or loss of business, and the owner has failed to take reasonable and necessary measures to remedy the appearance or other condition.
(3) (A) Except as provided in subdivision (4) of this subsection, if the court determines that the building is an abandoned property and appoints a receiver pursuant to subdivision (2) of this subsection, the court shall certify the schedule of each mortgage, lien or other encumbrance on such abandoned property and may grant other relief as the court deems just and appropriate. Such certification shall be binding with respect to each mortgage, lien or other encumbrance, including any municipal lien, arising or attaching to the abandoned property prior to the date of such petition.
(B) The court shall give the most senior nongovernmental lienholder of record on the abandoned property first consideration for appointment as receiver.
(C) If such lienholder is found not competent or declines the appointment, the court may appoint a development organization or other competent entity as receiver, if such organization or entity agrees to serve as receiver. In appointing a receiver pursuant to this subparagraph, the court shall (i) consider any recommendation contained in the petition or otherwise presented by the petitioner or other party in interest, and (ii) give preference to a development organization or governmental unit over an individual.
(4) If the court determines that the building is an abandoned property and the owner represents that the conditions described in subdivision (2) of this subsection will be remedied in a reasonable period, the court may permit the owner to remedy the conditions by issuing an order that if the conditions are not remedied by the date set forth in the order, or if other specified remedial efforts have not occurred by the date or dates set forth in the order, the relief requested in the petition shall be granted.
(5) Upon a finding that the building is an abandoned property in accordance with subdivision (3) or (4) of this subsection, or that the owner is electing to sell the building, the owner shall reimburse the petitioner for all costs incurred in the preparation and filing of the petition as determined by the court.
(6) Upon appointment of the receiver by the court, the receiver (A) shall promptly take possession of the abandoned property and exercise the powers described in subsection (d) of this section, and (B) may file a lien against the abandoned property in an amount based on the costs incurred during the receivership, including, but not limited to, costs of rehabilitation, attorneys' fees and court costs, which amount may be adjusted as necessary.
(7) The court may remove the receiver at any time upon request of such receiver or showing by the petitioner or any party to such action that such receiver is not carrying out the duties described in subsection (d) of this section.
(d) (1) A receiver appointed pursuant to this section shall have all powers necessary and appropriate, as approved by the court, for the efficient operation, management and improvement of the abandoned property in order to bring the same into compliance with municipal code requirements and fulfill all duties described in this subsection. Subject to approval of the court, the powers and duties shall include, but not be limited to:
(A) Taking possession and control of the abandoned property and any personal property of the owner used with respect to the abandoned property;
(B) Collecting outstanding accounts receivable;
(C) Pursuing all claims or causes of action of the owner with respect to the property described in subparagraph (A) of this subdivision;
(D) Contracting for the repair and maintenance of the abandoned property, provided the receiver shall make a reasonable effort to solicit three bids for any contract valued at more than twenty-five thousand dollars unless the contractor or developer provides or obtains financing for the receivership, and each of which contract shall be appropriately documented and included in the reports and accounting required to be submitted or filed by the receiver pursuant to this section;
(E) Borrowing money and incurring credit in accordance with subsection (f) of this section;
(F) Contracting and paying for the maintenance and restoration of utilities to the abandoned property;
(G) Purchasing materials, goods and supplies to repair and operate the abandoned property;
(H) Entering into a rental contract or lease for a period of time not to exceed twelve months, provided the court shall approve any such contract or lease;
(I) Affirming, renewing or entering into contracts providing for insurance coverage on the abandoned property;
(J) Engaging and paying legal, accounting, appraisal and other professionals to assist such receiver in such receivership;
(K) If such building was designated an historic property prior to determination by the court as an abandoned property, consulting with the municipality's historical commission or board of historical and architectural review, or a local historic preservation organization, for any recommendation on preserving the historic character of such abandoned property;
(L) Applying for and receiving public grants and loans;
(M) Selling the building in accordance with subsection (g) of this section; and
(N) Exercising any right a property owner would have to improve, maintain and otherwise manage such property, including to the extent necessary to carry out the purposes of this section.
(2) While in possession and control of the abandoned property, such receiver shall:
(A) Maintain, safeguard and insure such property;
(B) Apply all revenue generated from such property consistent with the provisions of this section;
(C) Develop a receiver's plan for abatement of the conditions described in subdivision (2) of subsection (c) of this section or, if no such plan can feasibly be developed, a receiver's plan for alternatives such as the closing, sealing or demolition of all or part of the abandoned property, provided (i) if the building was designated an historic property prior to determination by the court as an abandoned property, the receiver's plan for abatement shall provide for the rehabilitation of architectural features that define the historic character of such property, and (ii) if demolition of an abandoned property located in an historic district is necessary, the receiver's plan for alternatives shall provide for the design of any replacement construction on the site of the demolition to comply with law;
(D) Implement the receiver's plan developed pursuant to subparagraph (C) of this subdivision, provided the court shall approve such plan; and
(E) Annually, or more frequently if the court deems appropriate, submit a status report to the court and each party to the action, which report shall include (i) a copy of any contract entered into by the receiver regarding the rehabilitation of the abandoned property, (ii) an account of the disposition of all revenue generated from such property, (iii) an account of all expenses, repairs and improvements, (iv) the status of developing and implementing the receiver's plan described in subparagraph (C) of this subdivision, and (v) a description of any proposed action to be taken in the six months following the date of submission of the status report to rehabilitate such property.
(3) (A) At the time such court appoints a receiver pursuant to subdivision (2) of subsection (c) of this section, the receiver may present for the court's approval a receiver's plan described in subparagraph (C) of subdivision (2) of this subsection. If no such plan is presented, the hearing date on such plan shall be set not later than one hundred twenty days after the appointment and the receiver shall submit such plan to the court and each party to the action not later than thirty days prior to the hearing on such plan.
(B) Such plan shall (i) include a cost estimate, a financing plan and either (I) a description of the rehabilitation to be done for the abandoned property, or (II) if rehabilitation is not feasible, a proposal for the closing, sealing or demolition of such property, and (ii) conform with the applicable municipal code, plan for the area adopted by the municipality in which such building is located and historic preservation requirements.
(C) At the time of the hearing on the receiver's plan, each party to the action may comment on such plan and the court shall consider all comments when assessing the feasibility of such plan and proposed financing. In making its determination for approving such plan, the costs of such receivership or sale of the abandoned property, the court shall give reasonable regard to the receiver's assessment of the scope and necessity of work to be done for rehabilitation or demolition, as applicable, of the property.
(D) The court shall issue a decision approving such receiver's plan or requiring that such plan be amended, in which case another hearing date shall be set.
(4) Upon implementation of such receiver's plan approved by the court, the receiver shall file with the court a full accounting of all income and expenditures during the time from approval of the plan to such implementation.
(e) (1) The receiver appointed pursuant to subdivision (2) of subsection (c) of this section shall be deemed to have powers and authority equivalent to ownership and legal control of the abandoned property for the purposes of filing plans with any public agency or board, seeking or obtaining construction permits or other approvals and submitting applications for financing or other assistance to public or private entities.
(2) Notwithstanding the provisions of subdivision (1) of this subsection, nothing in this section shall be construed to relieve the owner of a building that has been determined to be an abandoned property pursuant to subdivision (2) of subsection (c) of this section of any civil or criminal liability or of any obligation to pay any tax, municipal lien or charge, mortgage, private lien or other fee or charge incurred before or after the appointment of the receiver, and no such liability shall transfer to the receiver.
(3) Notwithstanding any provision of the general statutes, the receiver shall not be liable for any environmental damage to a building that has been determined to be an abandoned property pursuant to subdivision (2) of subsection (c) of this section, which environmental damage existed prior to such determination and the appointment of such receiver. The owner of the building shall be held liable for the environmental damage.
(f) (1) The receiver may borrow money or incur indebtedness in order to cover the costs of rehabilitation or otherwise fulfill any duty described in subsection (d) of this section.
(2) For the purpose of facilitating the borrowing of moneys for the costs of rehabilitation, the court may grant priority status to a lien given to secure payment on a debt incurred for the purposes authorized under this section, provided (A) the receiver sought to obtain the necessary financing from the most senior, nongovernmental lienholder and such lienholder declined to provide financing on reasonable terms for any reasonable improvement or other costs of rehabilitation, and (B) lien priority is necessary to induce another lender to provide financing on reasonable terms.
(3) If the most senior, nongovernmental lienholder agrees to provide financing for the costs of rehabilitation, any moneys lent to cover such costs shall be deemed added to such lienholder's preexisting first lien.
(4) The court may approve financing for the costs of rehabilitation, the terms of which may include deferred repayment and use restrictions. Such terms may remain with the rehabilitated property after the termination of the receivership and be assumed by (A) the owner of the building that was determined to be an abandoned property pursuant to subdivision (2) of subsection (c) of this section, if such owner regains possession of the rehabilitated property, or (B) a purchaser of the rehabilitated property pursuant to subsection (g) of this section.
(g) (1) If an abandoned property is sold by the owner or foreclosed upon by any lienholder, or if any interest in such property is transferred, the sale, foreclosure or transfer shall be subject to the receivership.
(2) Upon application of the receiver, the court may order the sale of the abandoned property if the court finds that (A) notice and an opportunity to provide comment to the court was given to each record owner of such property and each lienholder of record, (B) the receiver has been in control of such property for more than three months and the owner has not successfully petitioned to terminate the receivership pursuant to subsection (h) of this section, and (C) the terms and conditions of the sale are acceptable to the court and the purchaser of such property is reasonably likely to maintain such property.
(3) The court may authorize the receiver to sell the abandoned property free and clear of any lien, claim and encumbrance, provided the proceeds of the sale are distributed at settlement pursuant to subdivision (4) of this subsection and such distribution is approved by the court. If the proceeds are insufficient to pay each lien, claim and encumbrance, the proceeds shall be distributed according to the priorities set forth in said subdivision and each unpaid lien, claim and encumbrance that has not been assumed pursuant to subdivision (4) of subsection (f) of this section shall be extinguished.
(4) The proceeds of any such sale approved by the court shall be distributed as follows, in order of priority:
(A) Court costs;
(B) Except as provided in subparagraph (G) of this subdivision, liens of the state, liens for unpaid property taxes and properly recorded municipal liens, except as to any such lien that has been sold or transferred;
(C) Costs and expenses of sale;
(D) Principal and interest on any borrowing or incurrence of indebtedness that was granted priority over existing liens and security interests pursuant to subdivision (2) of subsection (f) of this section;
(E) Costs incurred by such petitioner in preparing and filing the petition in accordance with the requirements of subsection (b) of this section;
(F) Costs of rehabilitation and any fee or expense incurred by the receiver in connection with the sale or the safeguarding of the abandoned property for which the lien authorized under subparagraph (B) of subdivision (6) of subsection (c) of this section was filed;
(G) Liens of the state, liens for unpaid property taxes and properly recorded municipal liens that have been sold or transferred;
(H) Valid liens and security interests in accordance with the priority of the liens and interests;
(I) Unpaid obligations of the receiver; and
(J) The owner of the building that was determined to be an abandoned property pursuant to subdivision (2) of subsection (c) of this section.
(5) If at the time of the distribution of the proceeds of the sale the owner cannot be located, the proceeds of the sale that belong to the owner shall be (A) presumed unclaimed and forfeited, (B) subject to the custody and control of the municipality in which the sold property is located, and (C) used for all associated costs to the municipality for the security and remediation of blight and enforcement of any regulation enacted pursuant to subparagraph (H)(xv) of subdivision (7) of subsection (c) of section 7-148.
(6) At the conclusion of any such sale and distribution of proceeds, the receiver shall draft a deed stating that recognizable and marketable title to such property is vested in the purchaser of such property and that any prior ownership interest in such abandoned property has been extinguished. Upon approval of such deed by the court and filing in the land records of the municipality in which such property is located, transfer of ownership of such property shall be deemed fully effectuated.
(h) Upon request of the receiver or any party in interest, the court may order the termination of a receivership of an abandoned property if the court finds:
(1) The purposes of the receivership have been fulfilled, such as the remediation or abatement of the conditions described in subdivision (2) of subsection (c) of this section and the payment of or provision for each obligation, expense and improvement of the receivership, including any fee or expense incurred by the receiver;
(2) The owner, a mortgagee or a lienholder has requested the receivership be terminated and has provided adequate assurance to the court that the purposes of the receivership will be fulfilled, such as the remediation or abatement of the conditions described in subdivision (2) of subsection (c) of this section and the payment of or provision for each obligation, expense and improvement of such receivership, including any fee or expense incurred by such receiver;
(3) The abandoned property has been sold by the receiver and the proceeds of the sale have been distributed in accordance with subdivision (4) of subsection (g) of this section; or
(4) The receiver has been unable, after diligent effort, to (A) develop a receiver's plan pursuant to subparagraph (C) of subdivision (2) of subsection (c) of this section for approval by the court, (B) implement any court-approved plan, or (C) fulfill the purposes of the receivership for any reason.
(i) The provisions of this section shall not apply (1) to any commercial or residential building, structure or land owned by or held in trust for the United States government and regulated under the United States Housing Act of 1937, as amended from time to time, and regulations promulgated under such act, and (2) if the owner of a building that would be determined by a court to be an abandoned property pursuant to this section has vacated such building to perform military service in time of war or armed conflict or to assist relief efforts during a declared federal or state emergency as a member of the United States armed forces or any reserve component of such armed forces.
(P.A. 19-92, S. 1.)
History: P.A. 19-92 effective January 1, 2020.
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Sec. 8-169hh. Definitions. For purposes of this section and sections 8-169ii to 8-169ss, inclusive:
(1) “Authority” means the Connecticut Municipal Redevelopment Authority established in section 8-169ii;
(2) “Authority development project” means a project occurring within the boundaries of a Connecticut Municipal Redevelopment Authority development district;
(3) “Connecticut Municipal Redevelopment Authority development district” or “development district” means the area determined by a memorandum of agreement between the authority and the chief executive officer of the member municipality, or the chief executive officers of the municipalities constituting a joint member entity, as applicable, where such development district is located, provided such area shall be considered a downtown or does not exceed a one-half-mile radius of a transit station;
(4) “Designated tier III municipality” has the same meaning as provided in section 7-560;
(5) “Designated tier IV municipality” has the same meaning as provided in section 7-560;
(6) “Downtown” means a central business district or other commercial neighborhood area of a community that serves as a center of socioeconomic interaction in the community, characterized by a cohesive core of commercial and mixed-use buildings, often interspersed with civic, religious and residential buildings and public spaces, that are typically arranged along a main street and intersecting side streets and served by public infrastructure;
(7) “Member municipality” means (A) any municipality with a population of seventy thousand or more that opts to join the Connecticut Municipal Redevelopment Authority in accordance with section 8-169ll, or (B) any designated tier III or tier IV municipality. “Member municipality” does not include the city of Hartford or any municipality that is considered part of the capital region, as defined in section 32-600;
(8) “Joint member entity” means two or more municipalities with a combined population of seventy thousand or more that together opt to join the Connecticut Municipal Redevelopment Authority in accordance with section 8-169ll, provided no such municipality is considered part of the capital region, as defined in section 32-600;
(9) “Project” means any or all of the following: (A) The design and construction of transit-oriented development, as defined in section 13b-79kk; (B) the creation of housing units through rehabilitation or new construction; (C) the demolition or redevelopment of vacant buildings; and (D) development and redevelopment;
(10) State-wide transportation investment program” means the planning document developed and updated at least every four years by the Department of Transportation in compliance with the requirements of 23 USC 135, listing all transportation projects in the state expected to receive federal funding during the four-year period covered by the program; and
(11) “Transit station” means any passenger railroad station or bus rapid transit station that is operational, or for which the Department of Transportation has initiated planning or that is included in the state-wide transportation investment program, that is or will be located within the boundaries of a member municipality or the municipalities constituting a joint member entity.
(P.A. 19-117, S. 212.)
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Sec. 8-169ii. Connecticut Municipal Redevelopment Authority established. Board of directors; appointments; record of proceedings; action. Authority's procedures for conduct. Termination. (a) There is hereby established and created a body politic and corporate, constituting a public instrumentality and political subdivision of the state established and created for the performance of an essential public and governmental function, to be known as the Connecticut Municipal Redevelopment Authority. The authority shall not be construed to be a department, institution or agency of the state.
(b) The powers of the authority shall be vested in and exercised by a board of directors, which shall consist of the following members: (1) Two appointed jointly by the speaker of the House of Representatives and the president pro tempore of the Senate, one of whom shall be the chief executive officer of a member municipality in New Haven County; (2) two appointed jointly by the majority leaders of the House of Representatives and the Senate, one of whom shall be the chief executive officer of a member municipality in Hartford County; (3) two appointed jointly by the minority leaders of the House of Representatives and the Senate, one of whom shall be the chief executive officer of a member municipality in Fairfield County; (4) two appointed by the Governor; and (5) the Secretary of the Office of Policy and Management, the Labor Commissioner and the Commissioners of Transportation, Housing and Economic and Community Development, or their designees, who shall serve as ex-officio, voting members of the board.
(c) The Governor shall designate the chairperson of the board from among the members. All initial appointments shall be made not later than sixty days after October 1, 2019. All members shall be appointed by the original appointing authority for four-year terms. Any member of the board shall be eligible for reappointment. Any vacancy occurring other than by expiration of term shall be filled in the same manner as the original appointment for the balance of the unexpired term. The appointing authority for any member may remove such member for misfeasance, malfeasance or wilful neglect of duty.
(d) Each member of the board, before commencing such member's duties, shall take and subscribe the oath or affirmation required by section 1 of article eleventh of the Constitution of the state. A record of each such oath shall be filed in the office of the Secretary of the State.
(e) The board of directors shall maintain a record of its proceedings in such form as it determines, provided such record indicates attendance and all votes cast by each member. Any appointed member who fails to attend three consecutive meetings or who fails to attend fifty per cent of all meetings held during any calendar year shall be deemed to have resigned from the board. A majority of the members of the board then in office shall constitute a quorum, and an affirmative vote by a majority of the members present at a meeting of the board shall be sufficient for any action taken by the board. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the rights and perform all the duties of the board. Any action taken by the board may be authorized by resolution at any regular or special meeting and shall take effect immediately unless otherwise provided in the resolution. The board may delegate to three or more of its members, or its officers, agents or employees, such board powers and duties as it may deem proper.
(f) The board of directors shall annually elect one of its members as a vice-chairperson, and shall elect other of its members as officers, adopt a budget and bylaws, designate an executive committee, report semiannually to the appointing authorities with respect to operations, finances and achievement of its economic development objective, be accountable to and cooperate with the state whenever the state may audit the Connecticut Municipal Redevelopment Authority or an authority development project or at any other time as the state may inquire as to either, including allowing the state reasonable access to any such project and to the records of the authority.
(g) The chairperson of the board, with the approval of the members of the board of directors, shall appoint an executive director of the authority who shall be an employee of the authority and paid a salary prescribed by the members. The executive director shall be the chief administrative officer of the authority and shall supervise the administrative affairs and technical activities of the authority in accordance with the directives of the board. The executive director shall not be a member of the board.
(h) No member of the board of directors may receive compensation for the performance of such member's official duties.
(i) Each member of the board of directors of the authority and the executive director shall execute a surety bond in the penal sum of at least one hundred thousand dollars, or, in lieu thereof, the chairperson of the board shall execute a blanket position bond or procure an equivalent insurance product covering each member, the executive director and the employees of the authority. Each surety bond or equivalent insurance product shall be conditioned upon the faithful performance of the duties of the office or offices covered, issued by an insurance company authorized to transact business in this state for surety or such insurance product. The cost of each such bond or insurance product shall be paid by the authority.
(j) No board member, or member of his or her immediate family, as defined in section 1-91, shall have or acquire any financial interest in (1) any authority development project, or (2) any property included or planned to be included in any such project or in any contract or proposed contract for materials or services to be used in such project.
(k) The authority shall have perpetual succession and shall adopt procedures for the conduct of its affairs in accordance with section 8-169kk. Such succession shall continue as long as the authority has bonds, notes or other obligations outstanding and until its existence is terminated by law, provided no such termination shall affect any outstanding contractual obligation of the authority and the state shall succeed to the obligations of the authority under any contract. Upon the termination of the existence of the authority, all its rights and properties shall pass to and be vested in the state.
(P.A. 19-117, S. 213.)
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Sec. 8-169jj. Purposes of authority. Powers. (a) The purposes of the Connecticut Municipal Redevelopment Authority shall be to: (1) Stimulate economic and transit-oriented development, as defined in section 13b-79kk, within Connecticut Municipal Redevelopment Authority development districts; (2) encourage residential housing development within development districts; (3) manage facilities through contractual agreement or other legal instrument; (4) stimulate new investment within development districts and provide support for the creation of vibrant, multidimensional downtowns; (5) upon request of the legislative body of a member municipality, or the legislative bodies of the municipalities constituting a joint member entity, as applicable, in which a development district is located, work with such municipality or municipalities to assist in development and redevelopment efforts to stimulate the economy of such municipality or municipalities; (6) upon request of the Secretary of the Office of Policy and Management and with the approval of the chief executive officer of a member municipality, or the chief executive officers of the municipalities constituting a joint member entity, as applicable, in which a development district is located, enter into an agreement to facilitate development or redevelopment within such development district; (7) encourage development and redevelopment of property within development districts; (8) engage residents of member municipalities, or municipalities constituting a joint member entity, as applicable, and other stakeholders in development and redevelopment efforts; and (9) market and develop development districts as vibrant and multidimensional.
(b) For the purposes enumerated in subsection (a) of this section, the authority is authorized and empowered to:
(1) Have perpetual succession as a body politic and corporate and to adopt procedures for the regulation of its affairs and the conduct of its business, as provided in section 8-169kk;
(2) Adopt a corporate seal and alter the same at pleasure;
(3) Maintain an office at such place or places as it may designate;
(4) Sue and be sued in its own name, plead and be impleaded;
(5) Contract and be contracted with;
(6) (A) Employ such assistants, agents and other employees as may be necessary or desirable to carry out its purposes, which employees shall be exempt from the classified service and shall not be employees, as defined in subsection (b) of section 5-270; (B) establish all necessary or appropriate personnel practices and policies, including those relating to hiring, promotion, compensation, retirement and collective bargaining, which need not be in accordance with chapter 68. For the purposes of this subdivision, the authority shall not be an employer as defined in subsection (a) of section 5-270, and for the purposes of group welfare benefits and retirement, including, but not limited to, those provided under chapter 66 and sections 5-257 and 5-259, the officers and all other employees of the authority shall be state employees; and (C) engage consultants, attorneys and appraisers as may be necessary or desirable to carry out its purposes in accordance with sections 8-169ii to 8-169ss, inclusive;
(7) Acquire, lease, purchase, own, manage, hold and dispose of personal property, and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to carrying out the purposes set forth in this section;
(8) Procure insurance against any liability or loss in connection with its property and other assets, in such amounts and from such insurers as it deems desirable and procure insurance for employees;
(9) Invest any funds not needed for immediate use or disbursement in obligations issued or guaranteed by the United States or the state, including the Short Term Investment Fund and the Tax-Exempt Proceeds Fund, and in other obligations that are legal investments for savings banks in this state, and in-time deposits or certificates of deposit or other similar banking arrangements secured in such manner as the authority determines;
(10) Enter into such memoranda of agreement as the authority deems appropriate to carry out its responsibilities under this section; and
(11) Do all acts and things necessary or convenient to carry out the purposes of, and the powers expressly granted by, this section.
(c) In addition to the powers enumerated in subsection (b) of this section, the Connecticut Municipal Redevelopment Authority shall have the following powers with respect to authority development projects:
(1) (A) To acquire by gift, purchase, lease or transfer, lands or rights-in-land and to sell and lease or sublease, as lessor or lessee or sublessor or sublessee, any portion of its real property rights, including air space above, and enter into related common area maintenance, easement, access, support and similar agreements, and own and operate facilities associated with authority development projects, provided such activity is consistent with all applicable federal tax covenants of the authority; (B) to transfer or dispose of any property or interest therein acquired by the authority at any time; and (C) to receive and accept aid or contributions from any source of money, labor, property or other thing of value, to be held, used and applied to carry out the purposes of this section, subject to the conditions upon which such grants and contributions are made, including, but not limited to, gifts or grants from any department, agency or instrumentality of the United States or this state for any purpose consistent with this section, provided (i) the authority shall provide opportunity for public comment prior to any acquisition, transfer or disposal in accordance with this subdivision, and (ii) any land or right-in-land, aid or contribution received by the authority under this subdivision shall be subject to the provisions of chapter 10;
(2) To formulate plans for, acquire, finance and develop, lease, purchase, construct, reconstruct, repair, improve, expand, extend, operate, maintain and market facilities associated with authority development projects, provided such activities are consistent with all applicable federal tax covenants of the authority;
(3) To contract and be contracted with, provided if management, operating or promotional contracts or agreements or other contracts or agreements are entered into with nongovernmental parties with respect to property financed with the proceeds of obligations, the interest on which is excluded from gross income for federal income taxation, the board of directors shall ensure that such contracts or agreements are in compliance with the covenants of the authority upon which such tax exclusion is conditioned;
(4) To fix and revise, from time to time, and to charge and collect fees, rents and other charges for the use, occupancy or operation of authority development projects, and to establish and revise from time to time procedures concerning the use, operation and occupancy of facilities associated with such projects, including parking rates, rules and procedures, provided such arrangements are consistent with all applicable federal tax covenants of the authority, and to utilize net revenues received by the authority from the operation of such facilities, after allowance for operating expenses and other charges related to the ownership, operation or financing thereof, for other proper purposes of the authority, including, but not limited to, funding of operating deficiencies or operating or capital replacement reserves for such facilities and related parking facilities, as determined to be appropriate by the authority;
(5) To engage architects, engineers, attorneys, accountants, consultants and such other independent professionals as may be necessary or desirable to carry out authority development projects;
(6) To contract for construction, development, concessions and the procurement of goods and services, and to establish and modify procurement procedures from time to time in accordance with the provisions of section 8-169kk to implement the foregoing;
(7) To borrow money and to issue bonds, notes and other obligations of the authority to the extent permitted under section 8-169oo, to fund and refund the same and to provide for the rights of the holders thereof and to secure the same by pledge of assets, revenues and notes;
(8) To do anything necessary and desirable, including executing reimbursement agreements or similar agreements in connection with credit facilities, including, but not limited to, letters of credit or policies of bond insurance, remarketing agreements and agreements for the purpose of moderating interest rate fluctuations, to render any bonds to be issued pursuant to section 8-169oo more marketable; and
(9) To engage in and contract for marketing and promotional activities for authority development projects under the operation or jurisdiction of the authority.
(d) The Connecticut Municipal Redevelopment Authority and the Capital Region Development Authority, established pursuant to chapter 588x, may enter into a memorandum of agreement pursuant to which: (1) Administrative support and services, including all staff support necessary for the operations of the Connecticut Municipal Redevelopment Authority may be provided by the Capital Region Development Authority, and (2) provision is made for the coordination of management and operational activities that may include: (A) Joint procurement and contracting; (B) the sharing of services and resources; (C) the coordination of promotional activities; and (D) other arrangements designed to enhance revenues, reduce operating costs or achieve operating efficiencies. The terms and conditions of such memorandum of agreement, including provisions with respect to the reimbursement by the Connecticut Municipal Redevelopment Authority to the Capital Region Development Authority of the costs of such administrative support and services, shall be as the Connecticut Municipal Redevelopment Authority and the Capital Region Development Authority determine to be appropriate.
(e) The authority shall have the power to negotiate, and, with the approval of the Secretary of the Office of Policy and Management, to enter into an agreement with any private developer, owner or lessee of any building or improvement located on land in a development district providing for payments to the authority in lieu of real property taxes. Such an agreement shall be made a condition of any private right of development within the development district, and shall include a requirement that such private developer, owner or lessee make good faith efforts to hire, or cause to be hired, available and qualified minority business enterprises, as defined in section 4a-60g, to provide construction services and materials for improvements to be constructed within the development district in an effort to achieve a minority business enterprise utilization goal of ten per cent of the total costs of construction services and materials for such improvements. Such payments to the authority in lieu of real property taxes shall have the same lien and priority, and may be enforced by the authority in the same manner, as provided for municipal real property taxes. Such payments as received by the authority shall be used to carry out the purposes of the authority set forth in subsection (a) of this section.
(f) Nothing in sections 8-169ii to 8-169ss, inclusive, shall be construed as limiting the authority of the Connecticut Municipal Redevelopment Authority to enter into agreements to facilitate development or redevelopment of municipal property or facilities.
(P.A. 19-117, S. 214.)
History: (Revisor's note: In codifying this section, an incorrect reference to “section 8 of this act” was deemed by the Revisors to be a reference to “section 219” and codified as section 8-169oo).
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Sec. 8-169kk. Written procedures for conduct of board of directors. The board of directors of the Connecticut Municipal Redevelopment Authority shall adopt written procedures, in accordance with the provisions of section 1-121, for: (1) Adopting an annual budget and plan of operations, which shall include a requirement of board approval before the budget or plan may take effect; (2) hiring, dismissing, promoting and compensating employees of the authority, which shall include an affirmative action policy and a requirement of board approval before a position may be created or a vacancy filled; (3) acquiring real and personal property and personal services, which shall include a requirement of board approval for any nonbudgeted expenditure in excess of ten thousand dollars; (4) contracting for financial, legal, bond underwriting and other professional services, including a requirement that the authority solicit proposals at least once every three years for each such service that it uses; (5) issuing and retiring bonds, notes and other obligations of the authority; (6) providing loans, grants and other financial assistance, which shall include eligibility criteria, the application process and the role played by the authority's staff and board of directors; and (7) the use of surplus funds.
(P.A. 19-117, S. 215.)
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Sec. 8-169ll. Member municipalities; joint member entities. Appointment of local development board. (a)(1) Any municipality with a population of seventy thousand or more as determined by the most recent decennial census, except the city of Hartford or any municipality that is considered part of the capital region, as defined in section 32-600, may, by certified resolution of the legislative body of the municipality, opt to join the Connecticut Municipal Redevelopment Authority as a member municipality, provided such municipality holds a public hearing prior to any vote on such certified resolution. Any designated tier III or tier IV municipality, except the city of Hartford or any municipality that is considered part of the capital region as defined in section 32-600, shall be deemed a member municipality.
(2) The legislative body of each member municipality shall appoint a local development board to serve as liaison to the authority. Such board (A) shall include three individuals representing the municipality and the chief executive officer of such municipality, who shall serve as chairperson of the board, and (B) may include, but need not be limited to, representatives from local health or human services organizations, local housing organizations, a local school district or education organization, and a local business organization. Such board shall also include one member of the board of directors of the authority, chosen by the chairperson of the board of directors of the authority. Each legislative body shall make a good faith effort to appoint representatives of minority-owned businesses, advocates for walkable communities and members who are geographically, racially, socioeconomically and gender diverse.
(3) Any municipality that opts to join the authority as a member municipality or that is deemed a member municipality pursuant to subsection (a) of this section shall enter into a memorandum of agreement with the authority for the establishment of one or more development districts.
(b) (1) Any two or more municipalities with a combined population of seventy thousand or more as determined by the most recent decennial census may, by certified concurrent resolutions of the legislative bodies of each such municipality, together opt to join the Connecticut Municipal Redevelopment Authority as a joint member entity, provided (A) no such municipality is considered part of the capital region, as defined in section 32-600, and (B) each such municipality holds a public hearing prior to any vote on the certified resolution from such municipality. The concurrent resolutions shall set forth an agreement of such municipalities as to authority for decisions concerning projects in development districts within such municipalities.
(2) The legislative bodies of the municipalities constituting a joint member entity shall jointly appoint a local development board to serve as liaison to the authority. Such board shall (A) include two individuals representing each such municipality and the chief executive officer of each such municipality, who shall serve as cochairperson of the board with the other chief executive officers, and (B) may include, but need not be limited to, representatives from local health or human services organizations, local housing organizations, a local school district or education organization and a local business organization. Such board shall also include one member of the board of directors of the authority, chosen by the chairperson of the board of directors of the authority. The legislative bodies of the municipalities constituting a joint member entity shall make a good faith effort to appoint representatives of minority-owned businesses, advocates for walkable communities and members who are geographically, racially, socioeconomically and gender diverse.
(3) Any two or more municipalities that together opt to join the authority as a joint member entity shall jointly enter into a memorandum of agreement with the authority for the establishment of one or more development districts.
(c) In consultation with the board of directors of the authority, a local development board appointed pursuant to subdivision (2) of subsection (a) or subdivision (2) of subsection (b) of this section shall have, with respect to authority development projects, all the powers enumerated in subdivision (8) of subsection (b) of section 8-169jj and in subdivisions (1) to (6), inclusive, of subsection (c) of said section.
(P.A. 19-117, S. 216.)
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Sec. 8-169mm. Reports to the Governor, Auditors of Public Accounts and General Assembly. Annual compliance and independent financial audits. Contract compliance officer; report. (a) In lieu of the report required under section 1-123, within the first ninety days of each fiscal year of the Connecticut Municipal Redevelopment Authority, the board of directors of the authority shall submit a report to the Governor, the Auditors of Public Accounts and the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding. Such report shall include, but not be limited to, the following: (1) A list of all bonds issued during the preceding fiscal year, including, for each such issue, the financial advisor and underwriters, whether the issue was competitive, negotiated or privately placed, and the issue's face value and net proceeds; (2) a description of each authority development project in which the authority is involved, its location and the amount of funds, if any, provided by the authority with respect to the construction of such project; (3) a list of all outside individuals and firms, including principal and other major stockholders, receiving in excess of five thousand dollars as payments for services; (4) a comprehensive annual financial report prepared in accordance with generally accepted accounting principles for governmental enterprises; (5) the cumulative value of all bonds issued, the value of outstanding bonds and the amount of the state's contingent liability; (6) the affirmative action policy adopted pursuant to section 8-169kk, a description of the composition of the workforce of the Connecticut Municipal Redevelopment Authority by race, sex and occupation and a description of the affirmative action efforts of the authority; and (7) a description of planned activities for the current fiscal year.
(b) The board of directors of the authority shall annually contract with a person, firm or corporation for a compliance audit of the authority's activities during the preceding authority fiscal year. The audit shall determine whether the authority has complied with the authority's policies and procedures concerning affirmative action, personnel practices, the purchase of goods and services and the use of surplus funds. The board shall submit the audit report to the Governor, the Auditors of Public Accounts and the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding.
(c) The board of directors of the authority shall annually contract with a firm of certified public accountants to undertake an independent financial audit of the Connecticut Municipal Redevelopment Authority in accordance with generally accepted auditing standards. The board shall submit the audit report to the Governor, the Auditors of Public Accounts and the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding.
(d) The authority shall designate a contract compliance officer from its staff to monitor compliance of the operations of facilities and parking facilities associated with authority development projects that are under the management or control of the authority, with (1) the provisions of state law applicable to such operations, and (2) applicable requirements of contracts entered into by the authority relating to set-asides for small contractors and minority business enterprises and required efforts to hire available and qualified members of minorities, as defined in section 32-9n. Each year during the period of operations of facilities associated with authority development projects, such officer shall file a written report with the authority as to findings and recommendations regarding such compliance.
(P.A. 19-117, S. 217.)
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Sec. 8-169nn. Application or request for funds re authority development project. Economic development statement. Expenditure of funds. Coordination of resources. (a) Any person, including, but not limited to, a state or municipal agency, requesting funds from the state, including, but not limited to, any authority created by the general statutes or any public or special act, with respect to any authority development project shall, at the time it makes such request for funds from the state, present a full and complete copy of its application or request along with any supporting documents or exhibits to the authority for its recommendation and to the Secretary of the Office of Policy and Management. The Connecticut Municipal Redevelopment Authority shall, not later than ninety days after receipt of such application or request, prepare and adopt an economic development statement summarizing its recommendations with respect to such application or request and deliver such statement to the state officer, official, employee or agent of the state or authority to whom such application or request was made. The recommendations in such statement shall include contract provisions regarding performance standards, including, but not limited to, project timelines.
(b) Notwithstanding any provision of the general statutes, public or special acts, any regulation or procedure or any other law, no officer, official, employee or agent of the state or any authority created by the general statutes or any public or special act shall expend any funds on any authority development project, unless such officer, official, employee or agent has received an economic development statement prepared by the Connecticut Municipal Redevelopment Authority pursuant to subsection (a) of this section, except that if no such statement is received by the ninetieth day after the date of the initial application or request for such funds, such funds may be expended. If funds are expended pursuant to this subsection in a manner not consistent with the recommendations contained in an economic development statement for such expenditure, the officer, official, employee or agent of the state expending such funds shall respond in writing to the authority, providing an explanation of the decision with respect to such expenditure.
(c) The Connecticut Municipal Redevelopment Authority shall coordinate the use of all state, municipal and quasi-public agency planning and financial resources that are made available for any authority development project in which the authority is involved, including any resources available from any quasi-public agency.
(d) All state agencies, departments, boards, commissions and councils and all quasi-public agencies shall cooperate with the Connecticut Municipal Redevelopment Authority in carrying out the purposes enumerated in section 8-169jj.
(P.A. 19-117, S. 218.)
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Sec. 8-169oo. Bonds, notes and other obligations of the authority. (a) The board of directors of the Connecticut Municipal Redevelopment Authority is authorized from time to time to issue its bonds, notes and other obligations in such principal amounts as in the opinion of the board shall be necessary to provide sufficient funds for carrying out the purposes set forth in section 8-169jj, including the payment, funding or refunding of the principal of, or interest or redemption premiums on, any bonds, notes and other obligations issued by it, whether the bonds, notes or other obligations or interest to be funded or refunded have or have not become due, the establishment of reserves to secure such bonds, notes and other obligations, loans made by the authority and all other expenditures of the authority incident to and necessary or convenient to carry out the purposes set forth in section 8-169jj.
(b) Every issue of bonds, notes or other obligations shall be a general obligation of the authority payable out of any moneys or revenues of the authority and subject only to any agreements with the holders of particular bonds, notes or other obligations pledging any particular moneys or revenues. Any such bonds, notes or other obligations may be additionally secured by any grant or contributions from any department, agency or instrumentality of the United States or person or a pledge of any moneys, income or revenues of the authority from any source whatsoever.
(c) Notwithstanding any other provision of any law, any bonds, notes or other obligations issued by the authority pursuant to this section shall be fully negotiable within the meaning and for all purposes of title 42a. Any such bonds, notes or other obligations shall be legal investments for all trust companies, banks, investment companies, savings banks, building and loan associations, executors, administrators, guardians, conservators, trustees and other fiduciaries and pension, profit-sharing and retirement funds.
(d) Bonds, notes or other obligations of the authority shall be authorized by resolution of the board of directors of the authority and may be issued in one or more series and shall bear such date or dates, mature at such time or times, in the case of any such note, or any renewal thereof, not exceeding the term of years as the board shall determine from the date of the original issue of such notes, and, in the case of bonds, not exceeding thirty years from the date thereof, bear interest at such rate or rates, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable from such sources in such medium of payment at such place or places within or without this state, and be subject to such terms of redemption, with or without premium, as such resolution or resolutions may provide.
(e) Bonds, notes or other obligations of the authority may be sold at public or private sale at such price or prices as the board shall determine.
(f) Bonds, notes or other obligations of the authority may be refunded and renewed from time to time as may be determined by resolution of the board, provided any such refunding or renewal shall be in conformity with any rights of the holders of such bonds, notes or other obligations.
(g) Except as provided in section 8-169qq, bonds, notes or other obligations of the authority issued under the provisions of this section shall not be deemed to constitute a debt or liability of the state or of any political subdivision thereof other than the authority, or a pledge of the faith and credit of the state or of any such political subdivision other than the authority, and shall not constitute bonds or notes issued or guaranteed by the state within the meaning of section 3-21, but shall be payable solely from the funds as provided in this section. All such bonds, notes or other obligations shall contain on the face thereof a statement to the effect that, unless otherwise provided by law, neither the state of Connecticut nor any political subdivision thereof other than the authority shall be obligated to pay the same or the interest thereof except from revenues or other funds of the authority and that neither the faith and credit nor the taxing power of the state of Connecticut or of any political subdivision thereof other than the authority is pledged to the payment of the principal of, or the interest on, such bonds, notes or other obligations.
(h) Any resolution or resolutions authorizing the issuance of bonds, notes or other obligations may contain provisions, except as limited by existing agreements with the holders of bonds, notes or other obligations, which shall be a part of the contract with the holders thereof, as to the following: (1) The pledging of all or any part of the moneys received by the authority to secure the payment of the principal of and interest on any bonds, notes or other obligations or of any issue thereof; (2) the pledging of all or part of the assets of the authority to secure the payment of the principal and interest on any bonds, notes or other obligations or of any issue thereof; (3) the establishment of reserves or sinking funds, the making of charges and fees to provide for the same, and the regulation and disposition thereof; (4) limitations on the purpose to which the proceeds of sale of bonds, notes or other obligations may be applied and pledging such proceeds to secure the payment of the bonds, notes or other obligations, or of any issues thereof; (5) limitations on the issuance of additional bonds, notes or other obligations, the terms upon which additional bonds, bond anticipation notes or other obligations may be issued and secured, the refunding or purchase of outstanding bonds, notes or other obligations of the authority; (6) the procedure, if any, by which the terms of any contract with the holders of any bonds, notes or other obligations of the authority may be amended or abrogated, the amount of bonds, notes or other obligations the holders of which must consent thereto and the manner in which such consent may be given; (7) limitations on the amount of moneys to be expended by the authority for operating, administrative or other expenses of the authority; (8) the vesting in a trustee or trustees of such property, rights, powers and duties in trust as the authority may determine, which may include any or all of the rights, powers and duties of any trustee appointed by the holders of any bonds, notes or other obligations and limiting or abrogating the right of the holders of any bonds, notes or other obligations of the authority to appoint a trustee or limiting the rights, powers and duties of such trustee; (9) provision for a trust agreement by and between the authority and a corporate trustee which may be any trust company or bank having the powers of a trust company within or without the state, which agreement may provide for the pledging or assigning of any assets or income from assets to which or in which the authority has any rights or interest, and may further provide for such other rights and remedies exercisable by the trustee as may be proper for the protection of the holders of any bonds, notes or other obligations of the authority and not otherwise in violation of law. Such agreement may provide for the restriction of the rights of any individual holder of bonds, notes or other obligations of the authority. All expenses incurred in carrying out the provisions of such trust agreement may be treated as a part of the cost of operation of the authority. The trust agreement may contain any further provisions which are reasonable to delineate further the respective rights, duties, safeguards, responsibilities and liabilities of the authority, individual and collective holders of bonds, notes and other obligations of the authority and the trustees; (10) covenants to do or refrain from doing such acts and things as may be necessary or convenient or desirable in order to better secure any bonds, notes or other obligations of the authority, or which, in the discretion of the authority, will tend to make any bonds, notes or other obligations to be issued more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein; and (11) any other matters of like or different character, which in any way affect the security or protection of the bonds, notes or other obligations.
(i) Any pledge made by the authority of income, revenues or other property shall be valid and binding from the time the pledge is made. The income, revenue, such state taxes as the authority shall be entitled to receive or other property so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority, irrespective of whether such parties have notice thereof.
(j) The board of directors of the authority is authorized and empowered to obtain from any department, agency or instrumentality of the United States any insurance or guarantee as to, or of or for the payment or repayment of, interest or principal or both, or any part thereof, on any bonds, notes or other obligations issued by the authority pursuant to the provisions of this section and, notwithstanding any other provisions of sections 8-169ii to 8-169ss, inclusive, to enter into any agreement, contract or any other instrument whatsoever with respect to any such insurance or guarantee except to the extent that such action would in any way impair or interfere with the authority's ability to perform and fulfill the terms of any agreement made with the holders of the bonds, bond anticipation notes or other obligations of the authority.
(k) Neither the members of the board of directors of the authority nor any person executing bonds, notes or other obligations of the authority issued pursuant to this section shall be liable personally on such bonds, notes or other obligations or be subject to any personal liability or accountability by reason of the issuance thereof, nor shall any director, officer or employee of the authority be personally liable for damage or injury caused in the performance of such director, officer or employee's duties and within the scope of employment or appointment as such director, officer or employee, provided the conduct of such director, officer or employee was found not to have been wanton, reckless, wilful or malicious. The authority shall protect, save harmless and indemnify its directors, officers or employees from financial loss and expense, including legal fees and costs, if any, arising out of any claim, demand, suit or judgment by reason of alleged negligence or alleged deprivation of any person's civil rights or any other act or omission resulting in damage or injury, if the director, officer or employee is found to have been acting in the discharge of his or her duties or within the scope of his or her employment and such act or omission is found not to have been wanton, reckless, wilful or malicious.
(l) The board of directors of the authority shall have power to purchase bonds, notes or other obligations of the authority out of any funds available for such purpose. The authority may hold, cancel or resell such bonds, notes or other obligations subject to and in accordance with agreements with holders of its bonds, notes and other obligations.
(m) All moneys received pursuant to the authority of this section, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this section. Any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes of section 8-169jj, and the resolution authorizing the bonds of any issue or the trust agreement securing such bonds may provide.
(n) Any holder of bonds, notes or other obligations issued under the provisions of this section, and the trustee or trustees under any trust agreement, except to the extent the rights herein given may be restricted by any resolution authorizing the issuance of or any such trust agreement securing such bonds, may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights under the laws of the state or granted under this section or under such resolution or trust agreement and may enforce and compel the performance of all duties required by this section or by such resolution or trust agreement to be performed by the authority or by any officer, employee or agent of the authority, including the fixing, charging and collecting of the rates, rents, fees and charges herein authorized and required by the provisions of such resolution or trust agreement to be fixed, established and collected.
(o) The authority may make representations and agreements for the benefit of the holders of any bonds, notes or other obligations of the state which are necessary or appropriate to ensure the exclusion from gross income for federal income tax purposes of interest on bonds, notes or other obligations of the state from taxation under the Internal Revenue Code of 1986 or any subsequent corresponding internal revenue code of the United States, as amended from time to time, including agreement to pay rebates to the federal government of investment earnings derived from the investment of the proceeds of the bonds, notes or other obligations of the authority. Any such agreement may include: (1) A covenant to pay rebates to the federal government of investment earnings derived from the investment of the proceeds of the bonds, notes or other obligations of the authority; (2) a covenant that the authority will not limit or alter its rebate obligations until its obligations to the holders or owners of such bonds, notes or other obligations are finally met and discharged; and (3) provisions to (A) establish trust and other accounts which may be appropriate to carry out such representations and agreements, (B) retain fiscal agents as depositories for such funds and accounts, and (C) provide that such fiscal agents may act as trustee of such funds and accounts.
(P.A. 19-117, S. 219.)
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Sec. 8-169pp. State's pledge to not limit or alter rights of authority or holders of bonds, notes and obligations or parties to contracts. The state of Connecticut does hereby pledge to and agree with the holders of any bonds, notes and other obligations issued under section 8-169oo and with those parties who may enter into contracts with the Connecticut Municipal Redevelopment Authority or its successor agency, that the state will not limit or alter the rights hereby vested in the authority or in the holders of any bonds, notes or other obligations of the authority to which contract assistance is pledged pursuant to this section until such bonds, notes or obligations, together with the interest thereon, are fully met and discharged and such contracts are fully performed on the part of the authority, provided nothing contained herein shall preclude such limitation or alteration if and when adequate provision shall be made by law for the protection of the holders of such bonds, notes and other obligations of the authority or those entering into contracts with the authority. The authority is authorized to include this pledge and undertaking for the state in such bonds, notes and other obligations or contracts.
(P.A. 19-117, S. 220.)
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Sec. 8-169qq. State's protection of authority's directors, officers and employees from financial loss arising from claim. State's assumption of liability on debt authority unable to pay. (a) The state shall protect, save harmless and indemnify the directors, officers and employees of the Connecticut Municipal Redevelopment Authority from financial loss and expenses, including legal fees and costs, if any, arising out of any claim, demand, suit or judgment based upon any alleged act or omission of any such director, officer or employee in connection with, or any other legal challenge to, authority development projects within a Connecticut Municipal Redevelopment Authority development district, provided any such director, officer or employee is found to have been acting in the discharge of such director, officer or employee's duties or within the scope of such director, officer or employee's employment and any such act or omission is found not to have been wanton, reckless, wilful or malicious.
(b) In the event any bond, note or other obligation of the authority cannot be paid by the authority, the state shall assume the liability of and make payment on such debt.
(P.A. 19-117, S. 221.)
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Sec. 8-169rr. Economic development master plan. Development and submission to authority; review and approval. (a) For the purposes of this section, “economic development master plan” means (1) a comprehensive economic development plan that is designed to increase the tax base of a municipality, or the combined tax bases of two or more municipalities, as applicable, to a level that will allow the municipality or municipalities to provide an adequate level of municipal services, or (2) a comprehensive economic development plan developed pursuant to section 7-578.
(b) Prior to execution of a memorandum of agreement between the authority and the chief executive officer of a member municipality, or the chief executive officers of the municipalities constituting a joint member entity, as applicable, establishing a development district, the member municipality or joint member entity shall develop an economic development master plan and submit such plan for the authority's review and approval. Each member municipality or joint member entity shall provide for community and stakeholder input and a public comment process in the development of its economic development master plan, and such plan shall be approved by the legislative body of such member municipality or the legislative bodies of the municipalities constituting such joint member entity, as applicable.
(c) In determining whether to approve an economic development master plan developed under subsection (b) of this section, the authority shall consider whether such plan includes a clear and feasible path toward achieving as many of the purposes of the authority, as set forth in subsection (a) of section 8-169jj, as practical and appropriate in the context of the unique characteristics of a member municipality or the municipalities constituting a joint member entity, as applicable. The authority shall offer support to such municipality or municipalities in creating the economic development master plan, if requested by such municipality or municipalities.
(d) Any authority development project that receives support from the authority shall be consistent with (1) the economic development master plan of the member municipality, or the municipalities constituting the joint member entity, as applicable, in which such project is located, (2) the plan of conservation and development, adopted under section 8-23, of each such municipality, and (3) the Comprehensive Economic Development Strategy prepared under section 32-742.
(P.A. 19-117, S. 222.)
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Sec. 8-169ss. Encouragement to hire local employees. Workforce Training Authority assistance with training and recruitment. The authority, member municipalities and joint member entities shall encourage businesses, as appropriate, to hire local employees. Any business that receives financial assistance from the authority shall enter into an agreement with the Workforce Training Authority established pursuant to section 31-11ii for assistance with the training and recruitment of workers.
(P.A. 19-117, S. 223.)
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