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The Georgetown Special Taxing District-A First for Connecticut

Critical to financing the redevelopment of Georgetown was petitioning the state legislature to pass a law creating a special tax district for what Stephen Soler, president of the Georgetown Land Development Company, calls "essentially a town within a town."

Separate taxing districts are not uncommon in Connecticut, and their formation is covered under existing law. But this one was significantly different.

Since it was considered a Brownfield site and cleanup had to occur before residences and businesses could be put in place, there were not the required 15 residents living on the property to "act upon" a petition creating the taxing district (which would then need to be presented to the Town of Redding Board of Selectman). The owners-Georgetown Land Development Company and Georgetown Redevelopment Corporation-would have to vote to create the district. And that had never been done.

With special tax district status, the development could collect monies to (1) clean up and redevelop the contaminated property and provide quality-of-life services, and (2) issue bonds to build the new community's infrastructure.

In June 2005, the special act was unanimously passed by both houses of the state legislature and signed into law by Governor M. Jodi Rell. The petition was approved by the town shortly thereafter. It was the first time the state had allowed for this type of district (no residents) and the first time the designation had been used for a Brownfield site.

District Receives Designation to Issue "Green Bonds"

As part of the 2004 American Jobs Creation Act, which contains the "Brownfields Demonstration Program for Qualified Green Building and Sustainable Design Projects," the U.S. Treasury provides tax-exempt bond designation for qualified projects that meet strict criteria, including developing LEED-certified buildings and providing employment for at least 1,500 people.

These financing instruments are known as "Green Bonds."

The Georgetown Special Taxing District applied for designation as a Green Building and Sustainable Design Project in November 2005.

In January 2006 the Department of the Treasury informed the district that the project qualified for designation under Section 142 of the IRS Code. And in February 2006, the IRS issued notice PRESP-15672-05 allocating $72,225,000 in tax exempt private activity bonds.

The nature of the application and designation required a huge team effort that involved the Town of Redding, the State of Connecticut Office of Policy and Management, the Governor's office, and the offices of Senators Dodd and Lieberman and Congressman Shays.

Stephen Soler, president of the Georgetown Special Taxing District (until governance is turned over to a board of community residents), said of the designation, "It confirms our commitment to the community and the environment and gives us the resources we need to implement the best available green technology."