New Haven Independent

Posted by: Brian | December 11, 2006 12:28 PM

This city needs a real tax base. Hard-working property owners continue to bear the brunt of the city's fiscal mismanagement. Where does all the money go? Where's the planning? Is it ineptitude, corruption or both?

Posted by: ConcernedCitizen | December 11, 2006 3:23 PM

Who's getting the breaks in the current re-valuation? From talking with friends and digging around online, it looks like Vision Appraisal has once again done a so-so job in handing out the new assessments.

In one downtown condo complex that I just delved into, all the one bedrooms had new assessments in the 70-90,000 range. Except for one that came in at 41,000! Whoopsy-daisy! We have a winner! (Not quite like hitting the Lotto, but how cool is it when your tax bill comes in at HALF of what your neighbors are stuck paying.)

Out of curiousity I looked up Joe Lieberman's old Westville home. It closed on 8/24/06 for $455,000. Yet five weeks later on 10/1/06, the city assigns it a value of only $407,000. Did this lucky owner just get close to a $1000/year tax break? Or did he over-pay on his purchase by $48,000?

Even worse is a five unit apartment house on Dwight Street that sold on 9/14/2006 for $390,000. Vision Appraisal's 10/1/2006 valuation? A scant $232,400 or less than 60% of what the investment property sold for. How can the market value a property at $390K, and Vision value it at $232K, just two weeks later?

These are the type of inequites hundreds of New Haven residents will discover when they take a look at their condo complexes or Summer of 2006 home sales. Virtually identical condos paying grossly different tax bills, or very recent sales that are sometimes valued at a full 100% of the 2006 sales price, and other times let off the hook at 90-80-70-60% of what would seem to be their fair market value. Hardly breeds confidence, now does it?

I don't blame the Mayor, and I probably don't blame Vision Appraisals. More than likely it's a matter of getting what you pay for. I'd be curious to learn what Vision got paid on a per property basis. Chances are, not much.

What I do know is that the system stinks of unfairness. Somewhere a fixed income grandmother will be chased out of her house by a doubling tax bill, yet the New Alliance Bank building will be getting a tax decrease! Even worse is 59 Elm Street, where Bob Matthews and his partners are going to get a significant tax break on their property. Your assessment might have doubled or tripled, but Matthews only saw a 13% increase in his assessment. This means Matthews, (Rowland's best buddy), is going to get something like a 30% SAVINGS after the mill rate gets lowered.

Ah, the injustice of it all!

Posted by: reality | December 11, 2006 5:21 PM

There are many issues here. First, mass valuation is not a reliable method for valuing a universe of property. In some neighborhoods there are few sales and the margin of error is significant. Second, the State sets the guidelines for statisical reval, and they do not allow for issues like historically low interest rates, flipping and representative condition adjustments. As pointed out many properties, when looked at individually will not have the same value a mass valuation kicks out. Third, commercial properties did not see the same increase in value as residential over the past years. Everyone is aware of the huge value increases in residential property. However, there was no significant change in rental rates or new office tenants moving into New Haven. New Haven has no commercial base. In fact, if you examine property use you will see that 80% is residental and only 12% commercial. So on that basis, the 12% pay a significant portion of the tax. I believe the chart shows a small change in the tax base on commercial from 36% to 34%. Non-profits are only 8%, but they account for almost 50% of the grand list. To make it hurt more the State does not reimburse at the statutory amount. New Haven has been shorted over $50,000,000 in the past four years. The system is flawed, for sure. But it is not the reval company or the city's fault. Citizens need to support the need for regionalized taxes. I ask, why should surrounding towns get the benefit of the healthcare facilities, education and culture organizations, but pay nothing to help support.

Even more disappointing is the fact that the information above is known, yet New Haven takes some of the most valuable and high profile property and makes it tax exempt.
Why has nothing been done with the area across for the train station? And now we have an economic development department headed by people with no experience, or limited knowledge of New Haven. How did an assistant to the Mayor become Deputy Director of Economic Development. I'd love to see the resume and track record of projects developed successfully by our new deputy of economic development. Nothing against the person, but another example of how the mayor is using jobs as reward for working on his gov, campaign. I find it hard to believe that this was the most qualified person, and in fact it is not fair to her to set her up in a job she has no experience in, and it is totally unjust hiring. Where is Human Resources on this? Doesn't the director of HR have a responsibility to ensure fair hiring? Why are they silent? Same answer..just do what the mayor wants and collect a paycheck.

It was amazing to see that the Board of Alderman were entrance by a developer whne he was saying nothing different than what the city should know already.

Someone should also look at how many special agreements are out there, and whether the city has an effective system to track and collect revenue on special agreements. I believe a company was hired about 5 years ago to review the agreements and concluded that they could not complete the job due to the fact that the city could not provide copies of all the agreements. Why audit the fire department. The offices of corporation counsel and economic development could use a review. I think we loose more money due to special agreements than we would ever lose in FD payroll. Not that I support errors in any department of the city. But New Haven is a mess and needs to clean houseA new mayor will find many injustices and it will take the city years to get a handle on where it is hemmoraging money

Posted by: ned | December 12, 2006 11:20 AM

Hey Reality: it is the city's fault that "New Haven has no commercial base." An example you cited is the area across from Union Station - a major transit asset with no direct link to downtown given over to a slum. The city government's corruption, the deals and payoffs to every "community" group that wants something everytime a commercial development is proposed, the ZBA's random demands, and the basically adversarial approach the city takes toward anyone looking to do business in New Haven are all the fault of the city government. In addition, compared to the rest of CT, New Haven schools suck, and produce a marginally employable, poorly educated workforce. Many streets are rutted and potholed and the many abandoned buildings make the city look menacing. New Haven could try something radical - like Houston, just get rid of zoning. Obviously New Haven needs to change, because what has been going on here isn't getting the city anywhere.

Posted by: TrueBlueCT | December 12, 2006 2:58 PM

A follow-up to Ned's remark. It is kind of nutty that across from our Metro North connection we have a crumbling housing project, the police station, and the Board of Ed building, none of which do squat to help our tax base.

As New Haven puts the Coliseum site out to bid, I hope it will consider a grander development scheme in which the Police Station and Board of Ed get moved, and that prime tract gets developed. And for God's sake, what's up with the Route 34 corridor. All that vacant land, and nothing to do with it? Worst case make it surface parking linked to downtown, the Hospital and Yale via shuttles. It'd be cheaper than building more parking garages! (plus the cost of parking downtown is beginning to get obscene.)

Posted by: reality | December 12, 2006 7:12 PM

Ned you may have misunderstood. I agree it is the city lack of a effective economic development plan that has failed to create a commercial base. That was the point of saying that no new tenants, either office, industrial or manufacturing have move to the city amd rents have not increased. I agree and strongly suggest that commercial uses be d3eveloped and downtown property should not be put to tax exempt.

I think the school construction projects were way out of line. Why does Celentano need to be an architects dream, when a solid building combined with community interaction with parents could produce greater returns. I'll know why...teh mayor needed money form construction interests. Try looking at the deferral program. The only people benfitting from it are the developers. The city will see minimal revenue for years to come for most of the downtown redevelopment.

Posted by: Josh Erlanger | December 12, 2006 10:41 PM

Over 50% of the property is Non-profit taxes are going to be high. Its no ones fault.
TrueBlueCT parking is 6 or 7 dollars if you think thats high your crazy!

Posted by: Cedar Hill Resident | December 13, 2006 8:28 AM

I am so sick over this!! How does the richer side of East Rocks Taxes go up less than the poor side?? HMMM I just don't get it??

I really hope they take a closer look at this and I hope that our Alderman can support us on it as well. They had made a mistake with us once before and I think they have again.