New Britain Committee on Administration, Finance, Law and Public Services Meeting - September 4, 2024

The Committee on Administration, Finance and Law and Public Services held a public hearing and regular meeting on Wednesday, September 4, 2024, at 6:35 PM in Council Chambers, City Hall. The primary item was a proposed 39-year Payment in Lieu of Taxes (PILOT) agreement of $750 per rental unit between the City, the New Britain Housing Authority, and JHM Group for the redevelopment of the Mount Pleasant housing complex at 292 Linwood Street. The meeting included a public hearing, discussion of a substitute resolution, and a unanimous vote to refer the item with a neutral recommendation.

Public Comments & Testimony

• John (speaker, no last name given): Expressed support for the project, calling it a "good deal." He noted JHM Group's experience in Hartford and Bridgeport, mentioned that the second phase of the Mount Pleasant project was recently completed, and stated that the third phase is estimated to cost around $30–$39 million. He hoped the project would proceed more quickly than previous phases.

Discussion Items

• Item No. 36576 – Cooperative Agreement and PILOT Agreement: The committee considered a resolution to authorize a 39-year PILOT agreement with the New Britain Housing Authority and JHM Group, setting a flat payment of $750 per rental unit per year for the redevelopment of the Mount Pleasant complex. Key points discussed:
  • Substitute Language: A revised resolution was introduced to clarify property addresses (100 Richard Street, 62 Bond Street, and Armistice Street addresses), remove an erroneous reference to property valuation, and reference the existing 2012 cooperation agreement that will be partially supplanted.
  • Why 39 Years: The term matches the length of the loan (40 years), but state law caps such agreements at 39 years.
  • Why $750 per Unit: The PILOT is not a tax abatement; without it, the housing authority would pay nothing. The amount was negotiated as fair given the city's assistance with grants, entitlements, and a land deal with Stanley Black & Decker. The money will come from the project's operating budget (rents and federal funds).
  • Project Phases and Unit Counts: Phase one will demolish 63 units (affecting 48 families) and replace them with 79 units (including 28 one-bedroom units and five-bedroom units to accommodate current needs). Phase two will demolish 18 units (13 families) and an office, replacing them with 72 units. The total project has four phases, with a fifth phase for elderly housing at Bond Street. All units in phase one will be 100% affordable (rents controlled by tax credits).
  • Relocation and Tenant Rights: Residents have the right to return to an appropriately sized unit in the development, but not necessarily the same unit. The housing authority is conducting regular meetings with residents and providing 90-day notices before any moves. No residents will be displaced; they will be moved within the development.
  • Set-Asides: Phase one will include set-aside units for homeless individuals or victims of domestic violence (in partnership with Prudence Crandall). Phase two is exploring set-asides for youth aging out of foster care.
  • Management Company: The project will be managed by Imagineers, selected as part of JHM's co-development proposal. Concerns were raised about Imagineers' past performance, but the housing authority noted that the RAD program ensures rents remain income-based and that residents are protected.
  • Land Ownership: The housing authority retains ownership of the land (99-year ground lease), while buildings are owned by a third-party entity formed by the housing authority and JHM. The housing authority has an out clause if JHM is non-responsive.
  • Future Approvals: The committee will see future grant applications and approvals for subsequent phases, likely through the Commission on Community and Neighborhood Development.

Key Outcomes

• Motion to Accept Substitute Language: A motion to accept the revised resolution as substitute language was made by Alderwoman Beloin Savedra, seconded by Alderman Russell. After a brief recess, the motion was approved unanimously.
• Vote on the Amended Resolution: The resolution (as substituted) was moved with a neutral recommendation by Alderwoman Beloin Savedra, seconded by Alderman Santiago. The committee voted unanimously in favor (all ayes, no nays). The motion carried.
• Next Steps: The resolution will be forwarded to the full Common Council with a neutral recommendation. The project will proceed phase by phase as funding is secured.