Cheshire Town Council Approves Tax Deferral, Restaurant Incentive, and Cell Tower Lease Amid Pandemic

Town Council · Meeting of April 14, 2020

CT CHESHIRE — Cheshire Town Council approves blanket COVID-19 property tax deferral and a $94,300 restaurant tax incentive at April 14 virtual meeting. Meeting by video conference, the nine-member council unanimously extended the property tax grace period from 30 to 90 days — pushing the deadline to October 1 — and reduced the delinquent interest rate from 1.5 percent to 0.25 percent per month under Governor Lamont's Executive Order 7S, making both programs available to all taxpayers without an application requirement. Finance Director Jim Jaskat estimated the cost of the interest-reduction program at roughly $25,000, and said escrow payments from banks — projected at close to $17 million in July — are unaffected.

The council also approved a four-year tax abatement for Vivo Osteria restaurant owner Mr. Rondo, valued at $94,300 on the expansion of his 1641 Highland Avenue building. Health Director Maura Esposito reported 61 confirmed COVID-19 cases in Cheshire, seven residents hospitalized, and four fatalities as of April 14.

In the full story:

• The complete report — 1,035 words

Source: the Town Council meeting of April 14, 2020, reported from the official video recording and transcript.

CHESHIRE — April 14, 2020 — The Cheshire Town Council voted unanimously Tuesday on a package of measures including a COVID-19 property tax deferral program, a tax incentive for a local restaurant, a cell tower lease, library infrastructure repairs, and several capital project reassignments, all conducted via video teleconference under pandemic conditions.

The meeting, the second special or emergency-format session held in as many weeks, covered seven formal votes in addition to an extended update from town health, fire, and police officials. Town Manager Sean Kimball and Director of Health Maura Esposito reported 61 confirmed COVID-19 cases in Cheshire as of April 14, with seven residents hospitalized and four fatalities.

The Full Story

The most consequential action of the evening was the council's unanimous approval of two tax-relief options authorized under Governor Lamont's Executive Order 7S. The first option extends the property tax grace period from 30 days to 90 days, pushing the effective payment deadline from early August to October 1 for residents who choose to defer. The second reduces the delinquent-interest rate from 1.5 percent per month to 0.25 percent per month for a 90-day window beginning April 1. After debate, the council amended the motion to make both programs available to all taxpayers without requiring an individual application.

"I think we should be extending it to everybody. I think it's going to be a logistical nightmare to try to have people file for another application on something when so many are already filing for things." [No timestamp index supplied] — Council Chair Peter Talbot

Town Finance Director Jim Jaskat, who participated in the earlier budget committee review, told the council that escrow payments from banks are not subject to the deferral and that the town expects to receive approximately $17 million in July from those accounts alone. Jaskat estimated the cost of the reduced-interest program at roughly $25,000 in foregone interest revenue, and characterized the cash-flow impact of the deferral as manageable. Collector of Revenue Bill Donlan said the town's billing software vendor would print program details on every July tax bill mailing.

The council also unanimously approved a four-year tax incentive for VD NKR Inc., the ownership entity behind Vivo Osteria restaurant at 1641 Highland Avenue. Town Economic Development staffer Jerry Sitko told the council that owner Mr. Rondo had nearly doubled the building's footprint from 5,300 square feet, adding 1,400 square feet, and now carries more than $500,000 in personal property on the tax rolls. Under the program, the town will abate 50 percent of the assessed value of the addition only — not the land, personal property, or patio — for a tax break valued at $94,300 over the four-year period, with the town gaining an equivalent amount in new revenue from the full assessment.

On infrastructure, the council unanimously approved a $26,400 bid waiver to hire Silver Petrocelli and Associates for the second phase of the districtwide lavatory upgrade at Doolittle School, and approved reallocating $95,000 in existing bond appropriations to allow a combined library roof and HVAC replacement. Town staff reported the library's seven rooftop HVAC units are 24 years old and at the end of their useful life. The council also authorized the Public Building Commission to issue an RFP for a precast bathroom building at Quinnipiac Park, and voted to reassign a list of Public Building Commission capital projects to either the Board of Education or town staff, with technology projects supported by consultant Apex.

The council unanimously approved a five-year site license agreement with AT&T Corporation for a cell tower at 751 Higgins Road, subject to final review and approval of contract language by Town Attorney Smith. Police Chief Dreif explained that AT&T had reduced the monthly lease cost from $2,980 to $750 — a 75 percent reduction negotiated after the February council meeting — but that new contract language introduced uncertainty about a separate $570-per-month utility cost covering three equipment cabinets. He cited a September 30 acceptance-testing deadline as the reason the council needed to act without waiting for the May meeting.

"Apparently that is affected greatly by foliage. So if we wait until the late fall without foliage off the trees, we could get almost a false positive." [No timestamp index supplied] — Police Chief Dreif

Why It Matters

For Cheshire homeowners, the tax deferral and reduced-interest programs provide immediate financial flexibility during a period of widespread income disruption. The October 1 deadline and the below-market delinquent interest rate apply automatically to all taxpayers; residents who miss that new deadline, however, will owe the full statutory interest for the entire delinquency period. The cell tower lease, once finalized, is a critical step in a larger communications upgrade: the town faces a September 30 deadline to conduct radio-system acceptance testing while trees are in full leaf, and any further delay risks pushing that test into conditions that could mask coverage gaps. The next budget workshops are scheduled for April 21 and April 22, with a public hearing on April 28.

Key Motions & Votes

- Vote: Approval of minutes for the regular meeting and public hearing of March 10, 2020 and special meeting of April 7, 2020 Tally: Approved unanimously

- Vote: Consent calendar Tally: Approved unanimously

- Vote: Tax incentive for VD NKR Inc. (Vivo Osteria), 1641 Highland Avenue, four-year abatement valued at $94,300 Tally: Approved unanimously

- Vote: Bid waiver of $26,400 to hire Silver Petrocelli and Associates for second phase of Doolittle School lavatory upgrade Tally: Approved unanimously

- Vote: Authorization for Public Building Commission to issue RFP for precast bathroom building at Quinnipiac Park Tally: Approved unanimously

- Vote: Reallocation of $95,000 in existing appropriations for combined library roof and HVAC replacement Tally: Approved unanimously

- Vote: Reassignment of Public Building Commission capital projects to Board of Education and town staff Tally: Approved unanimously

- Vote: Adoption of property tax deferral and low-interest-rate programs under Executive Order 7S, extended to all taxpayers Tally: Approved unanimously

- Vote: Five-year site license agreement with AT&T Corporation for cell tower at 751 Higgins Road, subject to town attorney approval of final language Tally: Approved unanimously

- Vote: Adjournment Tally: Approved unanimously

Source

Cheshire's community access TV: Town Council meeting, April 14, 2020