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    Friday, October 11, 2024

    OPINION: New London insults taxpayers with deal to cut developer’s taxes

    I had one of those coffee-spitting moments recently while reading The Day, when I learned New London is considering giving substantial tax cuts to a developer the city is selling land to in Fort Trumbull on the cheap.

    That’s right, in the year 2024, with a housing crisis upon us and builders expensively putting up apartments all over the region as fast as they can, New London suggests the only way it can convince a developer to build on the fabulous waterfront Fort Trumbull peninsula is to shave $6.5 million off its long-term tax bills.

    Not only is the city proposing to sell the 6.2 acres of magnificent land on the waterfront and walkable to the region’s major jobs engine at Electric Boat for a mere $500,000, but it would then substantially cut the long-term tax bill too.

    The project would create 500 new apartments, none of them affordable, despite the substantial city discounts.

    Wow!

    I guess the swindle-the-suckers-in-New-London light is lit once again.

    When the light is on, apparently, developers feel free to ask the poor city to practically give away its prime waterfront land, and then propose a big tax cut.

    City officials are supposed to ignore the fact that residents’ tax bills have been soaring.

    But of course, there are no tax deals for existing taxpayers. Those giveaways are reserved for out-of-town developers proposing big new developments that will challenge the already underfunded and overwhelmed school system.

    The developer’s lawyer, William Sweeney, delivered an ultimatum at a recent meeting of a committee of the City Council, in which the sweet deal, blessed by the administration of Mayor Michael Passero, got a public unveiling.

    No tax deal, and the project “will halt” Sweeney warned the councilors.

    I hope the full council, scheduled to vote on the administration’s proposed tax giveaway Sept. 16, shows some resolve and gives the ultimatum-issuing attorney and his clients a big wave goodbye.

    RJ Development + Advisors, which has done other big projects in the city and gotten other tax deals, apparently has decided New London is an easy mark.

    RJ Development Chief Operating Officer Jason Rudnick is no stranger to controversial development deals in Connecticut cities and was at the center of controversy in Hartford in 2016 when the city canceled a contract with his firm for the development of the long-delayed Dunkin’ Donuts Park. Rudnick was president of project developer Centerplan at that time.

    Hartford last year settled a years-long lawsuit brought by Centerplan over the project cancellation. Mayor Luke Bronin said the city would have eventually prevailed in court but the legal fees would have cost more than the $10 million settlement.

    Attorney Sweeney told me he was not authorized to comment about Rudnick’s role in the fight with Hartford. Rudnick did not return specific messages left with his office.

    I would wager good money that Rudnick won’t appear personally before the New London City Council on Sept. 16, when they are asked to approve a $6.5 million tax gift to his company on top of the strangely low fire sale price of the property.

    Sweeney made some preposterous arguments in presenting his client’s take-it-or-leave it tax break deal to the council, saying the land has been undeveloped for a generation.

    Of course, a principal reason it hasn’t been developed for so long was state environmental restrictions on the number of allowed residential units on the peninsula, which have been recently eased.

    The attorney also complained about flood plain building rules and ledge at the sight.

    Boo hoo.

    The City Council needs to listen to city homeowners, still reeling from the increases in their own taxes and angry about a tax giveaway, and tell the administration to do their jobs and find a responsible developer willing to pay taxes like everyone else.

    After all, the city is practically giving away a prime development site, which the state spent tens of millions of state tax dollars to prepare. It has fabulous water views and is walkable not only to a regional jobs epicenter but a new community center being built with taxpayer funds.

    Lots of people lost their homes and neighborhood through eminent domain to create this amazing opportunity. The real estate market for rental housing is now finally red hot.

    And the mayor wants to give a big fat discount? Seems to me, at best, lazy.

    This is the opinion of David Collins.

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