The City Council approved two more tax real estate abatements, adding to a number of other abatements provided to developers in the city recently, but one of the tax reduction plans was slightly scaled-back after a brief delay in a Council committee.
An abatement plan that was tabled in the Council’s Committee on Administration, Finance and Law on October 4th was brought back up for consideration at a special meeting of that committee tonight, a hour before the regular Council meeting.
Both plans were approved by the Council.
The plan that was temporarily held up originally would have provided a limit of taxes owed by the owner at 102 West Main Street, “to $700.00 per residential and commercial unit,” for fifteen years, “with annual real estate property tax increases of 2% for each succeeding assessment date.”
The property at 102 West Main Street MidConn Bank building, presently owned, according to the Council resolution, by Avon at 102 LLC, whose, “managing partner” is Amit Lakhotia, who, the resolution says, “has exhibited plans to convert the building into 79 residential apartment units and 2 commercial units—and maintaining 16 deed-restricted low income units for 30 years.”
The plan was changed so that it will, instead, limit the owner’s taxes on the property to $800 per unit, with 4% increases per year over 13 years.
Jack Benjamin, an official in the administration of Mayor Erin Stewart (R), said that the abatement is needed in order to lower the owner’s costs and make the project attractive to lenders.
But Ald. Aram Ayalon (D-3) questioned why any public subsidy was required for the development to occur, in light residents’ citywide paying high property taxes and an existing high demand for real estate development. Benjamin said that the abatement was needed to support the 16 affordable housing units that will be a part of the 79 units in the building.
But, Ald. Ayalon voted to oppose the plan, saying that the city needs a consistent plan for how tax subsidies are applied in development proposals.
The other tax abatement that was approved is for, “the former Plimpton and Hills building at 189 Chestnut Street.” That plan, for thirteen years, “limits real estate property taxes to the 2022 payment of $14,949 for two (2) years, $900 per residential unit for four (4) years, $1,000 per unit for four (4) years, and $1,200 per unit for three (3) years.”
That plan is for Alpha Acquisitions LLC, whose “managing partner”, according to the Council resolution, is Alex Opuszynski. The resolution says Opuszynski, “has exhibited plans to convert the building into 30 residential apartment units and a suite of amenities for building residents.”
Ald. Luz Ortiz-Luna (R-AL) joined Ayalon in opposing the second of the two plans.
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