Town Council Special Meeting - Action Minutes

TOWN COUNCIL

 

TOWN OF SOUTH WINDSOR

 

Action Minutes                                            Page 1                                         August 26, 2015

 

 

TOWN COUNCIL – Special Meeting

Council Chambers – South Windsor Town Hall

 

1.      Call Meeting to Order

 

Mayor Anwar called the Special Meeting to order at 7:30 p.m.

 

2.      Roll Call

 

Members Present:      Mayor M. Saud Anwar

                                       Deputy Mayor Edward Havens

                                       Councilor Thomas Delnicki

                                       Councilor Carolyn Mirek

                                       Councilor Andrew Paterna

                                       Councilor Liz Pendleton

                                       Councilor Janice Snyder

                                       Councilor Stephen Wagner

 

Others Presents:         Matthew B. Galligan, Town Manager

                                       Keith Yagaloff, Town Attorney

 

3.      Executive Session

 

At 10:54p. m. Councilor Wagner made a motion to go into Executive Session to discuss documents containing financial information provided in confidence and exempt from disclosure pursuant to C.G.S. §1-200 (6) and §1-210(b)(B) regarding The Connecticut Studios project.  Councilor Pendleton seconded the motion; and it was approved, unanimously.

 

The following individuals were invited into Executive Session:  Mayor Anwar, Deputy Mayor Edward Havens, Councilor Delnicki, Councilor Mirek, Councilor Paterna, Councilor Pendleton, Councilor Snyder, Councilor Riley, Councilor Wagner, Town Manger Matthew Galligan, Town Attorney Keith Yagaloff, and Dan Marsh from the National Development Council.

 

At 11:27 p.m. Councilor Wagner made a motion to adjourn the Executive Session.  Councilor Pendleton seconded the motion; and it was approved, unanimously.

 

6.      Special Business

 

B.     Resolution Concerning Fuel Cell Payment Agreement

 

WHEREAS, the Town of South Windsor has been negotiating with CTS Energy, Connecticut Studios, and DCK regarding the development of land located along Ellington Road in the I-291 Corridor; and

 

WHEREAS, the negotiations involve a mixed use development that is intended to bring a significant amount of tax revenue to the Town of South Windsor; and

 

WHEREAS, the negotiations involve the construction of a 4.98 megawatt fuel cell electric generation facility, such fuel cell not being taxable by the Town; and

 

WHEREAS, the development previously was intended to involve the construction of a movie studio facility, a portion of the taxes from which would pay for the public infrastructure for the project; and

 

WHEREAS, the current owner and developer of the project has determined that the movie studio project does not appear to be financially viable, at least in its full scope and scale; and

 

WHEREAS, the fuel cell will provide certain benefits to the Town and the developer (including the generation of stable and uninterrupted electricity for the Town’s emergency use and for the project’s tenants), revenue from the sale of electricity, and an opportunity to build a microgrid to which cost is reimbursable through a State grant; and

 

WHEREAS, the current owner and developer has proposed a mixed use development containing:  (a) up to five buildings totaling up to 225,000 gross square feet for commercial uses; (b) one or two large scale buildings totaling up to 150,000 gross square feet for industrial uses; (c) one full service restaurant; and (d) up to 50,000 gross square feet of retail space and additional or alternative facilities and improvements; and

 

WHEREAS, the Town has negotiated an agreement with the owner and developer, whereby the owner and developer will pay the Town $514,000 per year which sum shall be used to pay for certain infrastructure improvements

 

NOW, THEREFORE, BE IT RESOLVED that the Town of South Windsor hereby authorizes the Town Manager to sign a fuel cell payment agreement between the Town and the owner and developer which provides for the following:

 

The fuel cell will provide stable and uninterrupted electricity to the developing through a microgrid.

 

1.  The Town will form a  single purpose 501c3 entity which will issue tax exempt revenue bonds to fund:  $2,750,000 for the microgrid, $3,500,000 public infrastructure improvements related to the Development, and up to $2,000,000 for emergency service improvements.
 

2.  The Developer will build a 4.98 megawatt fuel cell electric generation facility to generate revenue from the sale of electricity as set forth in the Power Purchase Agreement between CTS Energy and Eversource Energy.
 

3.  The Town will apply for a microgrid design and installation grant of $2,750,000 from the Mircrogrid Pilot Program facilitated by Connecticut Department of Energy and Environmental Protection (“DEEP”).
 

4.  Public infrastructure improvements shall be up to $3,500,000 which shall run from the entrance on Chapel Road to the roundabout/cul-de-sac as depicted on various site proposals.
 

5.  Emergency services improvements shall be up to $2,000,000 and may include onsite public sheltering, an onsite transformer pad that would provide the Town with access to emergency power from the fuel cell, extending power lines from the microgrid to the Town facilities for emergency sheltering.
 

6.  The Town agrees to support amendments to the PPA and assist in obtaining support from the State, including the Connecticut Department of Economic Development, Eversource, and regulatory approval from the Public Utilities Regulatory Authority.

 

7.  When the fuel cell becomes operational, CTS Energy will pay the Town $514,000 annually for a total of twenty (20) years.

8.  The $514,000 payment obligation shall be binding upon CTS Energy and its assigns, and shall remain binding upon the lawful owner of the fuel cell, and this obligation shall not be dischargeable in bankruptcy.
 

9.  The $514,000 payment obligation shall be due and owing the Town regardless of whether the Developer has undertaken the development.

 

Was made by Councilor Wagner

Seconded by Councilor Pendleton

 

Councilor Wagner made a motion to extend the meeting to 11:45 p.m.  Deputy Mayor Havens seconded the motion; and it was approved, unanimously.

 

Councilor Delnicki made a motion to postpone consideration of this motion until the September 8, 2015 meeting.  Councilor Riley seconded the motion and it failed on a roll call vote of 4 to 5 with Councilor Delnicki, Councilor Mirek, Councilor Riley and Councilor Snyder voting in favor of the motion; and Mayor Anwar, Deputy Mayor Havens, Councilor Paterna, Councilor Pendleton and Councilor Wagner voting in opposition of the motion.

 

Councilor Wagner made a motion to call the question.   Councilor Pendleton seconded the motion and it passed on a roll call vote of 6 to 3 with Mayor Anwar, Deputy Mayor Havens, Councilor Mirek, Councilor Paterna, Councilor Pendleton and Councilor Wagner voting in favor of the motion; and Councilor Delnicki, Councilor Riley and Councilor Snyder voting in opposition of the motion.

 

Mayor Anwar called for a vote on the motion; it passed on a roll call vote of 5 to 3 with Mayor Anwar, Deputy Mayor Havens, Councilor Paterna, Councilor Pendleton, and Councilor Wagner voting in favor of the motion; and Councilor Delnicki, Councilor Mirek, Councilor Riley and Councilor Snyder voting in opposition of the motion.

 

 

Respectfully submitted,

 

                                                                      

Deborah W. Reid

Clerk of the Council