New Haven Independent

posted by: dissapointed neighbor on January 6, 2009  10:02am

Aren’t the alders part of the check and balance system??  Why did they feel obligated to say “aya” simply because the Mayor signed some deal. This is wrong and its too bad the Mayor didn’t see this and the alders didn’t put up a bigger fight. It seems that only one paying attention was Alderman Perez (thank you!!). The fact that there was no dissention and all alders voted yes to this is disturbing.  Someone should have had the cojones to say no…even if they were out-voted.

I’m sure some tax break is in the works for Gateway Terminals next right???  Why not give all the polluters and bad businesses a break!

This is just unsettling and feels dirty…someone got swindled and again, I think it was us, the citizens of New Haven.

posted by: City Hall Watch on January 6, 2009  11:31am

The connected trucking company is Anastasio and Sons, Inc. and their related businesses - dumpsters, demolition, real estate and a restaurant by the same name. Restaurant is on Wooster Street. For a company who gives so little to the community and takes so much, at very least, the mayor should get over there and instead of asking for campaign contributions, should tell them to start making payments in lieu of taxes like other major non-profits. If Anastasios don’t want to do that, the public should boycott the businesses. There are lots of dumpster providers, real estate firms and italian restaurants.

posted by: Moti Sandman - Alderman Ward28 on January 6, 2009  12:55pm

Hi All:

I would like to clarify the process and sequence of events around the Tax Abatement Committee (of which I am the Chair) and then the full Board of Aldermen decision to refund tax payments to CSX Railroad.

Railroads, under Federal law, do not pay local property taxes to each municipality but pay a gross receipts sales tax to the state. In our case CSX Railroad leased part of their New Haven yard to an entity called “Circle of Life”. The assessor’s office opined that Circle of Life is not either a railroad company or engaged completely in railroad activities. The City sent the owner of the property, CSX, a bill for local taxes as we felt that the land use was not exempt. CSX disagreed with the assessor but paid the taxes under protest. They then started proceedings to sue the City.

Prior to going to court the City has a committee that reviews litigation suits to see if it pays for the City to go to Court or settle. This committee is given its power and authority by the City Charter. This is the same document that gives power to the Board of Aldermen and the Mayor. This committee has the authority to enter the City into a legally binding settlement agreement.

In the case of CSX & Circle of Life vs. the City of New Haven, the City’s attorney - the Corporation Council - said that the city did not have a case and would probably lose. The charter authorized Litigation Settlement Committee agreed with the Corporation Council and voted to refund the payments.

I am not sure why the issue had to come in front of the BOA but it did. We heard the item and learned that our hands were tied in regard to denying the refund as the City was already legally bound to refund the payments. What we did do was ask the President of the Board - Carl Goldfield - to engage outside council to give an opinion if we should go after the upcoming years and suggest a strategy to pursue this with.

Sorry for the long write up but this is a pretty complicated issue and needs clarity.

Moti