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ORDER OF THE NEW HAVEN BOARD OF ALDERS APPROVING (I) CLASSIFYING THE 10 LIBERTY PROJECT AS A PROPERTY USED FOR HOUSING SOLELY FOR LOW OR MODERATE INCOME PERSONS OR FAMILIES, (II) PROVIDING AN ABATEMENT OF REAL ESTATE TAXES FOR THE 10 LIBERTY PROJECT AND (III) AUTHORIZING THE MAYOR TO ENTER INTO A TAX ABATEMENT AGREEMENT WITH 10 LIBERTY OWNERS LLC IN ACCORDANCE WITH CONN. GEN. STAT. SEC. 8-215, ANNOTATED CHARTER OF THE CITY OF NEW HAVEN,ARTICLE IV, SECTION 6, AND CITY OF NEW HAVEN CODE OF GENERAL ORDINANCES, SECTION 28-4.
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WHEREAS, the 10 Liberty Project is a 150 unit multi-family affordable housing project for which Site Plan approval was granted by the New Haven City Plan Commission on February 16, 2022 (CPC Report 1602-04); and
WHEREAS, the building to be developed for the 10 Liberty Project (the “10 Liberty Building”) will be constructed on property that currently contains vacant industrial buildings that will be demolished and a surface parking lot, which property is located at 10 Liberty Street a/k/a 45 Spring Street (the “10 Liberty Property”) in the Hill neighborhood of New Haven; and
WHEREAS, the 10 Liberty Building will be five stories high, contain approximately 150,000 square feet and be comprised of 150 apartments (including studios and 1-3 bedroom units) as well as amenity space that includes a gym, a co-working space and a storage area for bicycles; and
WHEREAS, all of the residential units in the 10 Liberty Project will be set aside for individuals and families whose income on average is 60% of the Area Median Income (“AMI”) of persons and families living in the New Haven/Meriden area, as established by the United States Department of Housing and Urban Development; and
WHEREAS, there is a shortage of affordable rental units in New Haven, and the construction of the 10 Liberty Project will create additional affordable housing units needed in the City; and
WHEREAS, 10 Liberty Owners LLC (the “Applicant”) is the contract purchaser of the 10 Liberty Street Property; and
WHEREAS, the Applicant has applied to the Connecticut Housing Finance Authority for 4% Low Income Housing Tax Credits and to the Connecticut Department of Housing and the City of New Haven for loans to assist in the development of the 10 Liberty Project; and
WHEREAS, the Applicant has also applied to the City of New Haven’s Board of Alders (the “Board of Alders”) for a tax abatement for 15 Grand List years in the amount of $400 per unit plus a 3% annual increase after the first year of the tax abatement as well as a freeze on the assessment of the 10 Liberty Property during the first two years of the construction of 10 Liberty Project under the City of New Haven's program for Tax Abatement for Low Income Multi-Family Developments (the “LISHTA Program”) (the “Application”); and
WHEREAS, the Applicant has provided all of the information and materials required by the Board of Alders to make a determination regarding the Applicant's eligibility for the tax abatement requested; and
WHEREAS, the Applicant requires the tax abatement requested in the Application in order to develop the 10 Liberty Street Project; and
WHEREAS, the tax abatement requested by the Applicant is similar to tax abatements granted by the Board of Alders for comparable projects; and
WHEREAS, the Board of Alders finds that the tax abatement requested by the Applicant will be used to (i) reduce rents below the levels which would be achieved in the absence of the abatement and to improve the quality and design of the 10 Liberty Project, (ii) effect occupancy of the 10 Liberty Project by persons and families of varying income levels and (iii) provide necessary related facilities and services for the 10 Liberty Project; and
WHEREAS, the Board of Alders has the authority to grant the Application for a tax abatement pursuant to Conn. Gen. Stat. Sec. 8-215, the Annotated Charter of the City of New Haven Charter, Article IV, Section 6 and the City of New Haven Code of General Ordinances, Section 28-4.
NOW THEREFORE, BE IT ORDERED that the Application for a tax abatement is hereby approved.
AND BE IT FURTHER ORDERED that the City of New Haven (the “City”) and the Applicant shall enter into a tax abatement agreement (the “Tax Abatement Agreement”) which shall provide that the Affordable Unit Component will be entitled to a tax abatement for 15 consecutive Grand List years following a two year freeze of the assessment of the Property and which Tax Abatement Agreement shall further provide that the taxes levied during the abatement period shall be $450 per housing unit, which amount shall be increased by 3% for each year subsequent to the first year of the abatement period.
AND BE IT FURTHER ORDERED that the Tax Abatement Agreement shall also provide that the City will conduct an Annual Compliance Review of the 10 Liberty Project regarding its compliance with the affordability requirements of the LISHTA program and related matters and that the Tax Abatement Agreement shall be filed on the land records of the City.
AND BE IT FURTHER ORDERED that the Mayor of the City be and hereby is authorized to execute and deliver on behalf of the City the Tax Abatement Agreement together with such ancillary documents as may be necessary to implement the intent of this Ordinance and the City's LISHTA program.
AND BE IT FURTHER ORDERED that this Order and its approvals incorporated herein and by reference are contingent upon the developer or it successors or assigns for the 10 Liberty Project complying with all applicable city ordinances and specifically Sections 12 ½ and 12 ¼ of the Code of Ordinances of the City of New Haven.