Bill Text: CT HB05500 | 2012 | General Assembly | Introduced
Bill Title: An Act Concerning An Adjustment To Certain Dates Relating To The Financing Of Steel Point In Bridgeport.
Spectrum: Bipartisan Bill
Status: (Passed) 2012-06-15 - Signed by the Governor [HB05500 Detail]
Download: Connecticut-2012-HB05500-Introduced.html
General Assembly |
Raised Bill No. 5500 | ||
February Session, 2012 |
LCO No. 2186 | ||
*02186_______FIN* | |||
Referred to Committee on Finance, Revenue and Bonding |
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Introduced by: |
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(FIN) |
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AN ACT CONCERNING AN EXPANSION OF TAX INCREMENTAL FINANCING AND AN ADJUSTMENT TO CERTAIN DATES RELATING TO THE FINANCING OF STEEL POINT IN BRIDGEPORT.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective July 1, 2012) (a) A municipality undertaking a redevelopment project pursuant to chapter 130 of the general statutes, a development project pursuant to chapter 132 of the general statutes or a project pursuant to section 32-23zz of the general statutes, as amended by this act, may, upon approval of the plan for such project by the Secretary of the Office of Policy and Management and the Commissioner of Economic and Community Development pursuant to this section, have such project financed, in whole or in part, by the incremental revenues from the personal income tax and sales and use taxes attributable to such project, as provided in section 2 of this act.
(b) To apply for approval of such project, a municipality shall prepare a plan for the area of the project, and submit such plan to said secretary and commissioner. Such plan shall be in addition to any plan required by chapter 130 or 132 of the general statutes, or section 32-23zz of the general statutes, as amended by this act, and shall include, but need not be limited to:
(1) A legally-recognized survey of the measurements of the boundaries of the area wherein such project is located;
(2) Details of all infrastructure improvement plans for the project area, to the extent reasonably anticipated upon the date of submission of such plan, and the estimated costs of the infrastructure improvements;
(3) The most recent assessed value of the real property located within the project area, and an estimate of the assessed value of such real property upon completion of such project;
(4) The total number of persons currently employed within the project area of the project, with separate listings of full-time, part-time and temporary positions, and an estimate of the total number of such persons and positions upon completion of such project;
(5) The number of persons estimated to be employed for purposes of implementing such project, with separate listings of full-time, part-time and temporary positions;
(6) A list of the public investments that have been made in the project area, and that will be necessary in the future to support infrastructure or other improvements;
(7) Estimates, and a description of the sources of funds to pay for project costs, including the (A) type and terms of bonds, notes or other obligations of the state that may be necessary, (B) type and source of other public funds, and (C) type and source of any private funds;
(8) Details of any financial commitments currently in place to pay for project costs;
(9) Details of any private development project planned for the project area, and whether such private development project anticipates using public funds, if known;
(10) A list of all development subsidies that any business located in the project area has received and the entity supplying such subsidies;
(11) A cost-benefit analysis of such project, including a study of the fiscal impact of such project on the state;
(12) A market study for the project area;
(13) A list of the community and economic benefits expected to result from such project; and
(14) Certification by the chief elected official of the applying municipality that the plan is accurate as of the date of submission.
(c) To apply for a specified portion of the sales and use taxes generated by such project to be used as part of such project's financing plan, a municipality shall submit to the Commissioner of Economic and Community Development and the Secretary of the Office of Policy and Management, in addition to the plan described in subsection (b) of this section, the following information:
(1) The amount of sales and use tax revenues received by the Department of Revenue Services from all businesses within the boundaries of the project area in the base year, where "base year" means the average of the five years preceding the date of submittal of this information; and
(2) An estimate of the increase in the amount of sales tax revenue from existing and new businesses within the completed project area, and the estimated dates of such increase.
(d) To apply for a specified portion of the personal income tax withheld by employers pursuant to section 12-707 of the general statutes, located in the project area that is to be used as part of such project's financing plan, a municipality shall submit to the Commissioner of Economic and Community Development, in addition to the plan described in subsection (b) of this section, the following information:
(1) The gross wages, amount of federal personal income tax withheld, and amount of personal income tax withheld by employers within the boundaries of the project area in the base year, where "base year" means the average of the five years preceding the date of submittal of this information;
(2) An estimate of the number of new jobs, listing the number of full-time, part-time and temporary positions, created in the completed project area, and the increase in the amount of withholding taxes paid to the state by employers on behalf of new and existing employees within the completed project area, and the estimated dates of such increase; and
(3) An analysis of the impact of such project on employment patterns, including whether certain businesses will relocate within such project area, and whether completion of the project will reduce employment at any other site, within or outside the state.
(e) (1) Either the Commissioner of Economic and Community Development or the Secretary of the Office of Policy and Management may request further information from any municipality applying for approval under this section. Both the commissioner and secretary shall approve or deny approval not later than ninety days after the date of the completed application, provided the municipality, the commissioner and the secretary may agree to extend this deadline if necessary for complete review and consideration of such project.
(2) Upon approval of such municipality's project, the commissioner and secretary shall, together with representatives from such municipality, develop a plan of development and redevelopment for the project area, and a proposal for financing such plan, subject to the limitations on the use of incremental tax revenues under section 2 of this act and section 32-23zz of the general statutes, as amended by this act.
Sec. 2. (NEW) (Effective July 1, 2012) (a) For purposes of this section, "baseline year" means the calendar year during which a project was approved as provided in section 1 of this act.
(b) If the Commissioner of Economic and Community Development and the Secretary of the Office of Policy and Management approve the plan for a project as required pursuant to section 1 of this act, such project may be financed by incremental tax revenues, provided the amount of such incremental tax revenues available for such project in any one year shall not exceed seventy-five per cent of such incremental tax revenues. Twenty-five per cent of such incremental tax revenues shall be retained by the state. The municipality shall submit an annual report to the commissioner and secretary updating the plan required pursuant to section 1 of this act and providing such other information as the commissioner and secretary may require.
(c) With respect to sales and use taxes generated by businesses located within the project area: (1) The incremental increase in sales and use tax revenue for a business located within the project area shall be measured by subtracting the sales taxes paid in the baseline year from the sales taxes generated by such business during each year thereafter; and (2) the incremental increase in sales and use tax revenue for a business either formed or relocating within the project area shall be measured by subtracting the sales and use tax paid by such business during the last full calendar year prior to such formation or relocation, from the sales and use taxes generated by such business during each year thereafter.
(d) With respect to withholding taxes remitted by businesses located within the project area pursuant to section 12-707 of the general statutes: (1) The incremental increase in withholding taxes remitted by a business located within the project area shall be measured by subtracting the withholding taxes remitted by such business during the baseline year from the withholding taxes remitted by such business during each year thereafter; and (2) the incremental increase in withholding taxes remitted by a business either formed or relocating within the project area shall be measured by subtracting the withholding taxes remitted by such business during the last full calendar year prior to such formation or relocation, from the withholding taxes remitted by such business during each year thereafter.
(e) Notwithstanding the provisions of subsections (c) and (d) of this section, if a project is being financed pursuant to section 32-23zz of the general statutes, as amended by this act, the provisions of said section 32-23zz regarding the calculation for incremental sales and use taxes and withholding taxes shall control.
Sec. 3. Section 32-23zz of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2012):
(a) For the purpose of assisting (1) any information technology project, as defined in subsection (ee) of section 32-23d, which is located in an eligible municipality, as defined in subdivision (12) of subsection (a) of section 32-9t, [or] (2) any remediation project, as defined in subsection (ii) of section 32-23d, or (3) any project for redevelopment, as provided in chapter 130, or any municipal development project, as provided in chapter 132, the Connecticut Development Authority may, upon a resolution of the legislative body of a municipality, issue and administer bonds which are payable solely or in part from and secured by: (A) A pledge of and lien upon any and all of the income, proceeds, revenues and property of such a project, including the proceeds of grants, loans, advances or contributions from the federal government, the state or any other source, including financial assistance furnished by the municipality or any other public body, (B) taxes or payments or grants in lieu of taxes allocated to and payable into a special fund of the Connecticut Development Authority pursuant to the provisions of subsection (b) of this section, or (C) any combination of the foregoing. Any such bonds of the Connecticut Development Authority shall mature at such time or times not exceeding thirty years from their date of issuance and shall be subject to the general terms and provisions of law applicable to the issuance of bonds by the Connecticut Development Authority, except that such bonds shall be issued without a special capital reserve fund as provided in subsection (b) of section 32-23j and, for purposes of section 32-23f, only the approval of the board of directors of the authority shall be required for the issuance and sale of such bonds. Any pledge made by the municipality or the Connecticut Development Authority for bonds issued as provided in this section shall be valid and binding from the time when the pledge is made, and revenues and other receipts, funds or moneys so pledged and thereafter received by the municipality or the Connecticut Development Authority shall be subject to the lien of such pledge without any physical delivery thereof or further act. The lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the municipality or the Connecticut Development Authority, even if the parties have no notice of such lien. Recording of the resolution or any other instrument by which such a pledge is created shall not be required. In connection with any such assignment of taxes or payments in lieu of taxes, the Connecticut Development Authority may, if the resolution so provides, exercise the rights provided for in section 12-195h of an assignee for consideration of any lien filed to secure the payment of such taxes or payments in lieu of taxes. All expenses incurred in providing such assistance may be treated as project costs.
(b) (1) Any proceedings authorizing the issuance of bonds under this section may contain a provision that taxes or a specified portion thereof, if any, identified in such authorizing proceedings and levied upon taxable real or personal property, [or both,] taxable sales, taxable personal income withheld and remitted by an employer pursuant to section 12-707 or any combination thereof, in a project each year, or payments or grants in lieu of such taxes or a specified portion thereof, by or for the benefit of any one or more municipalities, districts or other public taxing agencies, as the case may be, shall be divided as follows:
[(1)] (A) (i) In each fiscal year that portion of the taxes or payments or grants in lieu of taxes which would be produced by applying the then current tax rate of each of the taxing agencies to the total sum of the assessed value of the taxable property in the project on the date of such authorizing proceedings, adjusted in the case of grants in lieu of taxes to reflect the applicable statutory rate of reimbursement, shall be allocated to and, when collected, shall be paid into the funds of the respective taxing agencies in the same manner as taxes by or for said taxing agencies on all other property are paid; and [(2)] (ii) that portion of the assessed taxes or the payments or grants in lieu of taxes, or both, each fiscal year in excess of the amount referred to in [subdivision (1) of this subsection] subparagraph (A)(i) of this subdivision shall be allocated to and when collected shall be paid into a special fund of the Connecticut Development Authority to be used in each fiscal year, in the discretion of the Connecticut Development Authority, to pay the principal of and interest due in such fiscal year on bonds issued by the Connecticut Development Authority to finance, refinance or otherwise assist such project, to purchase bonds issued for such project, or to reimburse the provider of or reimbursement party with respect to any guarantee, letter of credit, policy of bond insurance, funds deposited in a debt service reserve fund, funds deposited as capitalized interest or other credit enhancement device used to secure payment of debt service on any bonds issued by the Connecticut Development Authority to finance, refinance or otherwise assist such project, to the extent of any payments of debt service made therefrom.
(B) (i) In each fiscal year that portion of the sales tax which would be produced by applying the sales tax revenues generated by the project in the calendar year prior to the date of such authorizing proceeding shall be allocated to and, when collected by the Department of Revenue Services, shall be paid into the General Fund; and (ii) that portion of the sales tax revenues each fiscal year in excess of the amount referred to in subparagraph (B)(i) of this subdivision shall be allocated to and, when collected by the Department of Revenue Services, shall be paid into a special fund of the Connecticut Development Authority to be used in each fiscal year, in the discretion of the Connecticut Development Authority, to pay the principal of and interest due in such fiscal year on bonds issued by the Connecticut Development Authority to finance, refinance or otherwise assist such project, to purchase bonds issued for such project or to reimburse the provider of or reimbursement party with respect to any guarantee, letter of credit, policy of bond insurance, funds deposited in a debt service reserve fund, funds deposited as capitalized interest or other credit enhancement device used to secure payment of debt service on any bonds issued by the Connecticut Development Authority to finance, refinance or otherwise assist such project, to the extent of any payments of debt service made therefrom.
(C) (i) In each fiscal year that portion of the personal income tax withheld pursuant to section 12-707 which would be produced by applying the withholding tax remitted by companies affected by the project in the calendar year prior to the date of such authorizing proceeding shall be allocated to and, when collected by the Department of Revenue Services, shall be paid into the General Fund; and (ii) that portion of the personal income tax withheld pursuant to section 12-707 and remitted each fiscal year in excess of the amount referred to in subparagraph (C)(i) of this subdivision shall be allocated to and, when collected by the Department of Revenue Services, shall be paid into a special fund of the Connecticut Development Authority to be used in each fiscal year, in the discretion of the Connecticut Development Authority, to pay the principal of and interest due in such fiscal year on bonds issued by the Connecticut Development Authority to finance, refinance or otherwise assist such project, to purchase bonds issued for such project or to reimburse the provider of or reimbursement party with respect to any guarantee, letter of credit, policy of bond insurance, funds deposited in a debt service reserve fund, funds deposited as capitalized interest or other credit enhancement device used to secure payment of debt service on any bonds issued by the Connecticut Development Authority to finance, refinance or otherwise assist such project, to the extent of any payments of debt service made therefrom.
(2) Unless and until the total assessed valuation of the taxable property in a project exceeds the total assessed value of the taxable property in such project as shown by the last assessment list referred to in subparagraph (A) of subdivision (1) of this subsection, all of the taxes levied and collected and all of the payments or grants in lieu of taxes due and collected upon the taxable property, taxable sales or taxable personal income in such project shall be paid into the funds of the respective taxing agencies. When such bonds and interest thereof, and such debt service reimbursement to the provider of or reimbursement party with respect to such credit enhancement, have been paid in full, all moneys thereafter received from taxes or payments or grants in lieu of taxes upon the taxable property, taxable sales or taxable personal income in such development project shall be paid into the funds of the respective taxing agencies in the same manner as taxes on all other property, sales or personal income are paid. The total amount of bonds issued pursuant to this section which are payable from grants in lieu of taxes payable by the state shall not exceed an amount of bonds, the debt service on which in any state fiscal year is, in total, equal to one million dollars.
(c) The authority may make grants or provide loans or other forms of financial assistance from the proceeds of special or general obligation notes or bonds of the authority issued without the security of a special capital reserve fund within the meaning of subsection (b) of section 32-23j, which bonds are payable from and secured by, in whole or in part, the pledge and security provided for in section 8-134, 8-192, 32-227 or this section, all on such terms and conditions, including such agreements with the municipality and the developer of the project, as the authority determines to be appropriate in the circumstances, provided any such project in an area designated as an enterprise zone pursuant to section 32-70 receiving such financial assistance shall be ineligible for any fixed assessment pursuant to section 32-71, and the authority, as a condition of such grant, loan or other financial assistance, may require the waiver, in whole or in part, of any property tax exemption with respect to such project otherwise available under subsection (59) or (60) of section 12-81.
(d) As used in this section, "bonds" means any bonds, including refunding bonds, notes, temporary notes, interim certificates, debentures or other obligations; "legislative body" has the meaning provided in subsection (w) of section 32-222; and "municipality" means a town, city, consolidated town or city or consolidated town and borough.
(e) For purposes of this section, references to the Connecticut Development Authority shall include any subsidiary of the Connecticut Development Authority established pursuant to subsection (l) of section 32-11a, and a municipality may act by and through its implementing agency, as defined in subsection (k) of section 32-222.
(f) In the case of a remediation project, as defined in subsection (ii) of section 32-23d, that involves buildings that are vacant, underutilized or in deteriorating condition and as to which municipal real property taxes are delinquent, in whole or in part, for more than one fiscal year, the amount determined in accordance with subdivision (1) of subsection (b) of this section may, if the resolution of the municipality so provides, be established at an amount less than the amount so determined, but not less than the amount of municipal property taxes actually paid during the most recently completed fiscal year. If the Connecticut Development Authority issues bonds for the remediation project, the amount established in the resolution shall be used for all purposes of subsection (a) of this section.
Sec. 4. Section 32-462b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
In accordance with the provisions of section 32-462, during the period commencing January 1, 2010, and ending June 30, [2012] 2015, any agency, as defined in section 32-462, may provide financial assistance from existing programs to the Steel Point project for the purposes of development and improvements to property in the city of Bridgeport, in said time period, in an aggregate amount not to exceed forty million dollars.
Sec. 5. Subsection (o) of section 2 of public act 05-289 is repealed and the following is substituted in lieu thereof (Effective from passage):
(o) At the option of the city of Bridgeport by vote of the city council of the city of Bridgeport, the district shall be merged into the city of Bridgeport if no bonds are issued by the district not later than [four] ten years after the effective date of this section or after the bonds authorized by this section are no longer outstanding and any property which is owned by the district shall be distributed to the city of Bridgeport.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
July 1, 2012 |
New section |
Sec. 2 |
July 1, 2012 |
New section |
Sec. 3 |
July 1, 2012 |
32-23zz |
Sec. 4 |
from passage |
32-462b |
Sec. 5 |
from passage |
PA 05-289, Sec. 2(o) |
Statement of Purpose:
To allow a municipality to include incremental state sales taxes and personal income taxes as part of the financing plan for a redevelopment project, and to adjust certain dates related to the financing for the Steel Point project in Bridgeport.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]