nothin $480K Tax Break Tabled | New Haven Independent

$480K Tax Break Tabled

IMG_0068.JPGPoised to approve a $480,000 tax break for a politically connected family, a city panel agreed to table the matter to better scrutinize the deal.

The Litigation Settlement Committee, a panel of high-powered city execs and two aldermen, was set to vote Wednesday on three tax assessment appeals from the Anastasio family at a meeting Wednesday in City Hall. The matter was tabled at the request of Corporation Counsel John Ward, to allow time to probe a few concerns.

Andrew Anastasio, Jr. and Sr., are seeking a tax break on three properties on Clinton and Middletown Avenues. The land holds a transfer station and a father-and-son trucking operation. The family is well-known around the city, with a track record of supporting elected officials’ campaigns, including the mayor’s gubernatorial bid.

Hill Alderman Jorge Perez told the room that after he raised concerns about the family’s tax break proposal to a city attorney, he got a flurry of phone calls from public officials who worried he was blocking” the deal.

IMG_0070.JPGIn his 12 years on the committee, I’ve never been lobbied before the way I’ve been lobbied on this,” said Perez. Three aldermen and the head of one city commission all placed calls to him pleading on the Anastasios’ behalf, Perez told the board.

Break Sought

CSX Railroad, a railroad company, owns the three properties in question. The land is leased to three separate entities, all run by the Anastasios: Circle of Life LLC, a transfer station; Nicesca LLC, a real estate company; and A Anastasio & Sons Trucking Company. Each parcel is appraised at over a million bucks.

Circle of Life fought hard with neighbors and the state Department of Environmental Protection for a permit to consolidate solid waste and ship it out to the Midwest by train. In 2003, the DEP awarded them a five-year permit, and the trash-crunching was ready to go.

When the 2003 grand list was created, the (since departed) city assessor looked at the length of the leases and the way the land was being used and decided the corporations should be taxed just like everybody else.

The Anastasios, however, appealed their assessments. They argued they deserve a tax break on all three.

They based their case on a state tax exemption for railroad companies: CT General Statute 12 – 555 says property owned by railroad companies and used exclusively for railroad purposes” shall be exempt from local tax. The Anastasios argued that they merit the exemption because the land is owned by a railroad company and the train tracks are in use.

The total amount of city revenue in question, over the four years of this appeal, totals $480,903. If a tax exemption is warranted; they wouldn’t have to pay any of it.

City Hall Attorneys Advocate Break

The city, hoping to settle the pending lawsuit filed on behalf of the Anastasios by attorney Jeffrey M. Sachs of Biller, Sachs, Raio and Zito, has recently revisited the case. In an opinion given to the Litigation Settlement Committee, the city’s Office of Corporation Counsel sided with the Anastasios. It said the assessor’s decision should be reversed and the tax break awarded.

No one discussed the merits of the tax break at Wednesday’s meeting. Perez focused on the aftermath of his questioning the proposal.

Perez told the panel that the only people he aired concerns to were two members of the Office of Corporation Counsel. Why, then, did four public officials call him, concerned he was blocking” the deal? Perez asked the room.

Ward, the head of the Office of Corporation Counsel, later replied: Obviously I don’t want anybody lobbying anybody. As far as I know, it didn’t come out of this office.”

Ward told the committee that he had just received a six-page memo answering some outstanding questions on the Anastasio case. He suggested tabling the three items so members could digest the memo and vote at a later date.

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