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09/09/2024 11:19 AMThe Clinton Town Council is holding a public hearing on Sept. 18 at 6:30 p.m. in Town Hall over a proposed tax abatement ordinance for developers building low- and moderate-income housing. If approved, the abatement could be used by the potential developers of the Pierson School.
On Aug. 27, the Clinton Town Council heard an update about the potential sale of the Pierson School from former Town Manager Karl Kilduff. At the meeting, Kilduff explained that a proposed ordinance had been approved by the town attorney.
The ordinance would allow for a tax abatement that focuses on nonprofits and would allow the Town Council to approve abatements with developers propping to build low- and moderate-income housing.
“This would set in motion the ability to negotiate the abatement with Xenolith Partners,” Kilduff explained during the meeting. Xenolith Partners and the Hope Partnership are proposing to build a mix of senior living and senior community space on the former Pierson School property. The sale of the building is pending.
In general terms, tax abatements are sought after by developers taking on a project such as an expansion or new development and who have limited capital at the beginning of the project. The developers can ask for an abatement on some tax payments until the development is open and is making money. The idea is for the Town to help developers out at the beginning of a project, with the expectation that, in the long term, the development will benefit the town.
Kilduff said the proposed ordinance in Clinton would have narrow parameters and apply only to nonprofit entities. Kilduff said the abatement would allow for the Town Council to negotiate specific terms with any potential developer that fits the parameters, but the Town would not be obligated to grant an abatement.
Under the proposed abatement, the council may vote to grant an agreement “provided that each such housing agreement shall require that the owner apply the money equivalent of the taxes abated to one or more of the following specified purposes; a.) to reduce rents below the levels which would be achieved in the absence of abatement and to improve the quality and design of such housing; b.) to effect occupancy by persons and families of varying income levels, within limits determined by the Commissioner of Housing by regulation; or c.) to provide necessary related facilities or services in such housing.”
The abasement “shall terminate at any time when the housing agreement is terminated in accordance with its terms, including without limitation when the property for which tax abatement had been granted is not used solely for low- or moderate-income housing,” per the proposal.
At the public hearing, interested parties can speak in favor, oppose, or neutrally on the ordinance.
The proposed ordinance is the latest in a recent flurry of activity concerning the Pierson School.
On Aug. 27, the council announced that a public information session about the potential redevelopment of the school would be held on Sept. 11 (after press time for this article) and that a town meeting for residents to approve the potential sales agreement is set for Sept. 25.
Developers Xenolith Partners and HOPE Partnership agreed to a purchase and sale agreement with the Town to turn the former middle school into a mix senior housing and senior programming while the Town retains some of the space for community use. The proposed sale calls for the school to be sold for $500,000.