New Haven Independent

Posted by: cedarhillresident | December 6, 2007 9:37 AM

Bravo Jorge for being the man you are! I can't really comment because we know little about this... I realize that they are asking for a tax break of a 1/2 a million.....wow....a bit of an over kill... they most likely would be happy with 300,000. but the guestion to me is(knowing where alot of this land is... is it worth that much?? Are they making enough to cover the taxes??? To many questions to give a real comment.

But I do have to say they must have enough if that many people where jumping through hoops for them.

Other question because I can not resist.... have they ever donated to the community that there RAIL YARDS are in??? hmmm sorry had to say it :) (wonder what community that is???) That is a NO they have not!

Posted by: Good to hear | December 6, 2007 10:27 AM

This is exactly what I meant when I said Jorge is better as an "outsider." By having the fight about who would be board president, an identifiable opposition was created. That opposition then does a good job holding the administration accountable.

While I would not want that opposition actually in power, since unfortunately it has too many quacks and cranks, it serves an incredibly important purpose. And I just don't see the Greens or the Republicans getting enough seats to be any force any time soon.

So for those who feel the BOA are all a rubber stamp because there are 28 Democrats, take heart, the opposition is apparently alive, well and serving its most important role.

Kudos for uncovering some pretty obvious shenanigans!

And it is good to see that the Independent appears to be moving back toward quality journalism and away from the bizarre NY Post attack style it was offering up for awhile there. Hopefully it stays the course. No one was called a terrorist, and both sides were presented while allowing the obvious glaring problems with the tax application to speak for themselves.

Posted by: Ned | December 6, 2007 10:29 AM

If churches can ride tax free, then why can't a trash consolidating business enjoy the same benefit? They're both in the same business: garbage.

Posted by: New Haven Tea Party | December 6, 2007 10:45 AM

The Anastasios should pay their fair share of operating a profitable set of businesses in New Haven. They don't live in New Haven so this is the city's one bite at the financial apple from this family.

The legal arguement is thin at best - The Anastasios are not a railroad company. They lease railroad property for a business unrelated to railroads. Over the years, they've expanded the size of the railroad property they lease which most likely includes an escalation clause for taxes. The law allowing an exemption for railroad property is based on the property being used for railroad purposes which for the most part, is not.

City Hall is supporting this only because the Anastasios are strange politcal bedfellows who are under the sheets with DeStefano through campaign contributions. Generally speaking, this family is conservative and anti-union. Their trucking firm is not unionized and they broke the union at Connecticut Limo which they also partially own, or used to own.

The bottom line is they are looking for a half million dollar taxpayer subsidy now, and an ongoing annual free ride of more than a $100,000 forever. My family is already subsidizing a lot of programs and people City Hall believes can't pay their own way. Now, the DeStefano machine wants me to pay for the wealthy too?

This city needs the money - we don't need more welfare for the well connected or well-heeled. The Anastasios can pay and should pay their fair share even as the city runs around foreclosing on homes and towing cars of those who can't. This family should consider it a contribution to a city that has given them everything they've ever wanted.

Posted by: Tim Kane | December 6, 2007 12:53 PM

Great. Just great. This looks like more tax breaks to the wealthy, due to connections with the current (and, no doubt, future) city administration. Some questions:
- Are any of the 3 companies listed as a railroad? (I realize I'm giving them an idea)
- If they are NOT a railroad - and nothing I see above leads me to that conclusion - what percentage of their business deals with rail transportation?
- Why are the City Hall attorneys advocating this tax break? Because it'll cost a lot less than spending years tied up in court? Anybody from the city want to answer?
- Doesn't anyone want to do the RIGHT thing anymore? Pay the taxes! I pay mine!!
- Is the 6-page memo mentioned in the article available for public view? How about some business tax returns from the 3 companies (not sure of the legality of this)?
- Does anyone else out there have a problem with our garbage being shuttled off to the 'Midwest'? Where, exactly, is all of this waste going?

Thanks, Jorge, for calling attention to this.

Posted by: Good to hear | December 6, 2007 1:08 PM

And that CT Limo has horrible service. They will just leave you in NYC if you buy a round trip ticket. More than enough reason to RAISE their taxes.

Posted by: Cat | December 6, 2007 1:10 PM

If this goes to court, city hall will lose. Jorge is merely showboating for the NHI reporter, as if his getting phone calls on legislative matters is some anomaly.

It would have been interesting if the reporter provided the assessor's view on things vs. providing a homogenous view out of city hall.

I hope NHI follows up on how this all turns out.

Posted by: New Haven Tea Party | December 6, 2007 1:50 PM

Cat: If I read the story correctly - the assessor's view is that the Anastasios owe the taxes. The rest of them are running around trying to figure out how to let them off the hook.

Tim: None of the Anastasio's businesses are operating a railroad. They leased the land from the railroad because as distributors of lumber products, they are shipped a lot of lumber via railroad. They started a building scrap business that ships out construction waste via railroad for the reverse trip. The railroad operator does not maintain the land, they maintain the tracks only because it's the stop where they load and unload. It is no different than if UPS drove up to your house.

I find it hard to believe we would lose in court. The law seems to say operators of a railroad are tax exempt - not businesses operating a completely different lines of work (trucking business distributing steel and lumber) real estate and construction debris that happen to be located on railroad property paying rent for said property. If this stands up, I'm seeking a tax exemption too - my daughter has a railroad in the basement.

Posted by: Tim Kane | December 6, 2007 2:26 PM

Yeah, and every homeowner in New Haven is getting 'railroaded' by the tax hike!

Posted by: Tim Kane | December 6, 2007 2:30 PM

sent the previous too soon...

I don't know if the City of New Haven would lose going to trial. I just think we might end up paying a lot more than $480,903 and the $120,000 each year in legal fees - because it doesn't look as though the Corporation Counsel of New Haven has any desire to fight this.

Posted by: New Haven Tea Party | December 6, 2007 3:56 PM

During the budget debacle, there was some small discussion about cutting Corp Council's budget and trimming back attorney fees at several city departments. Like all other suggestions, this too was turned aside with the rationale that we need the dollars in the budget to fight on equal par with the opposition's outside council.

I suggest we use the allocated dollars - there are plenty of them laying around - and fight for what's right. If I'm paying my share - the Anastasio's can pay theirs. It's interesting - they're fighting over this 4 years worth of taxes. The family has been operating the trucking business there for a lot longer - who's been paying the taxes those other years? The tax collector has been auditing firms in New Haven for tax payments - has the department audited this firm or any of these firms yet?

Posted by: charlie | December 6, 2007 5:30 PM

Yale University (the tax exempt part of it -- it is actually the largest taxpayer because of its many commercial properties) doesn't have to pay taxes either, but it voluntarily pays $5 million plus per year to the city.

Why can't this company, and the railroad that supposedly uses a part of the property it is on, show a little civic responsibility, and propose a voluntary payment too?

As far as the tax break, it seems pretty ridiculous to me on a lot of different levels. First, this is not a railroad property. Also, why are wealthy corporate railroaders getting a tax break in the first place? I'm sure that New Haven could tear up the tracks and put the land to a tax-generating use if it wanted to. Same goes with the interstate highways - the Federal Government should be paying taxes on them.

Posted by: robn | December 6, 2007 5:40 PM

The city appeal process for property tax is meaningless and the extraordinarily complicated process of appealing to the state tax court (their paperwork is more confusing than Joyce's Ulysses) is a travesty. Its not surprising that only the wealthy can get a meaningful appeal becaase its they who can afford legal representation.

Posted by: WEBbloger 1 | December 6, 2007 5:57 PM

"Anastasios argued that they merit the exemption because the land is owned by a railroad company and the train tracks are in use".

If the railroad company owns the land why are the Anastasios arguing the assessmets. According to state law, homeowners have to appeal their assessment to the assessment appeals board, and if denied, they then had 30 days to appeal to the Superior Court.
Why would it be any different for the owner of the property and railroad?

According to Anastasios: General Statute 12-555 says property owned by railroad companies and used "exclusively for railroad purposes" shall be exempt from local tax.

The question then is: Is the property used exclusively for rail road purposes, if so, what railroad purpose does Nicesca LLC, a real estate company; and Anastasio & Sons Trucking Company. Play in the railroad business.

No.. This proposal needs more than scrutiny by the Litigation Settlement Committee, who are not assessors, nor do they speak for the CT. State Superior Court system.

This proposal rightly belongs in a court of law

Posted by: fairhavendoc | December 6, 2007 6:53 PM

We have seen this before. The lawyers recommend that the city not take a strong stand, in order to avoid a drawn out legal battle, because that costs time and money. Do you think that the 'bad guys' haven't figured this out? If had had a feasible plan to bilk the city, I would threaten to sue too! Especially if I have seen a persistent pattern of the city backing down to such threats. If we don't start taking a stand, those with the means will just keep threatening to sue, knowing the city will back down easily. Sometimes you have to spend a little extra time and money in the short term to get back the time and money in the long term. This is a story of strange bedfellows indeed.

Posted by: josh jones | December 6, 2007 6:57 PM

This is easy. Go to court. If Anastasia wins okay, he gets the break. If the city wins it gets the taxes. All above board and fair. Is the Corpation Counsel too lazy to do this

Posted by: NHGreen | December 7, 2007 2:03 AM

If we don't start taking a stand, those with the means will just keep threatening to sue, knowing the city will back down easily. Sometimes you have to spend a little extra time and money in the short term to get back the time and money in the long term.

Posted by: New Haven Tea Party | December 7, 2007 10:48 AM

The Anastasios are no more in the railroad business than I am a conductor. The problem for this family arose when they took possession of all the adjacent land to the railroad tracks, owned by the railroad to expand their business. They thought the property tax exemption of the railroad, would pass through to them via their long term lease on the land. The tax assessor is dead on, and the Anastasio family is wrong. City Hall officials that are pushing this are also wrong and at a time, when we are choking on property taxes and the mayor is celebrating a 98% collection rate, I would suggest he visit his friend Andy Anastasio and collect our half million dollars. If he refuses, tow his trucks the way you do the rest of us and foreclose on that multi-million property.

Posted by: andy ross | December 7, 2007 4:43 PM

It seems pretty clear cut to me. In my opinion, the test should be if it is a business for profit, than it should pay taxes. If the law states otherwise, perhaps it is time to change the law. Some of these laws, concerning tax exceptions goe back years, and were needed to give certain types of industry an incentive to start up and provide jobs. Indeed even to stay in business during its building years, especially if it were a company that help public benefit.

This is like saying a night club can rent out a former church, and as long as the church still holds a meeting every so often the entire property is excempt.

We need money, the average New Haven tax payer is struggling to keep up. Someday this city will find its self facing bankruptcy if it continues to give pieces of it away through tax abetments, incentives and exemptions.

Posted by: Chris | December 7, 2007 4:57 PM

I was surprised to learn just how much money Anastasio and Co raised for various elected officials. Circle of Life regularly opperates out of compliance with thier permits. Who were these three "connected" alderpeople that called Jorge. I hope city hall can pass the sniff test on this one.

Posted by: New Haven Tea Party | December 10, 2007 3:27 PM

According to Governor Wanna Be DeStefano's last campaign report, the Anastasio Family gave nearly $6,000 to his campaign. Now they want a half million tax benefit - and a permanent property tax abatement for not being a railroad operator. That's a hell of a return on $6K - sounds like predatory lending redux, eh mayor? Or does that apply only to people you don't know?