Groton — State Sen. Heather Somers, R-Groton, has asked legislators to support a bill that would reduce the tax burden of Fairview, Odd Fellows Home of Connecticut, which is in a court dispute over taxes with the Town of Groton.

Fairview runs the senior living community at 235 Lestertown Road in Groton and built dozens of new homes in the last two years. Last year, the nonprofit filed a lawsuit in New London Superior Court after receiving its Oct. 1, 2015 tax assessment and challenging it as excessive and unlawful. The suit was transferred to New Britain Superior Court and a hearing is scheduled March 21.

At issue is whether Fairview’s property was assessed fairly, and whether the nonprofit should be assessed on the full value of its property. The General Assembly granted an exemption to Fairview in 1893, and the exemption has been raised over the years to its current level of $25 million. The real estate and personal property of Fairview was assessed in 2015 as having a combined full market value of $25,408,771.

The 2015 assessment was the first time Fairview's assessment exceeded the $25 million limit. The town believes Fairview should now pay taxes on the total value of its property, except for its skilled nursing facility. Fairview believes it should pay taxes only on the amount over the exemption.

Somers’ bill would specify that taxes apply only to the amount over $25 million. The bill is in draft, and also includes language that would raise the exemption level from $25 million to $35 million.

But Somers said Monday that she included that for discussion purposes only. The bill also isn't intended to be retroactive, but to protect a nonprofit that provides a vital service, she said.

More than half the patients at Fairview are on Medicaid, and the senior living community employs nearly 300 people, most of whom live in Groton, she said.

“This organization is too important to Groton and the community at large to provide an unbudgeted expenditure that could severely curtail services, lead to job losses and issues with family members,” she said.

James Rosenman, chief executive officer of Fairview, testified before the legislature’s Planning and Development Committee that the exemption has always been interpreted to mean the property is exempt from taxation, except for the amount over the dollar threshold.

But Mary Gardner, assessor for the town, testified that the General Assembly has increased the exemption six times since it was originally set at $100,000.

Today, the Fairview property includes a 120-bed, five-star nursing facility, 24 assisted living apartments, a clubhouse, a full-service restaurant and 40 independent living units that were recently built in two phases, she said.

“Residents who sign up pay contract entrance fees upfront that range from $340,000 to $475,000 per unit and in addition, agree to pay monthly rents between $1,900 and $2,400 per unit, she said.

“It is the responsibility of the assessor to understand and follow existing statutes to equitably value all property in town,” she said. “This insures the fair and equitable distribution of the tax burden for our residents.”

Town Mayor Bruce Flax said the Town Council doesn’t want to change the spirit of the law originally enacted for Fairview, but must also consider town taxes.

"I think there's more talking to be done," he said.

d.straszheim@theday.com