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Questions about tax revenues are taking the forefront during Costco’s public hearings. Coscto’s attorney revealed an economic impact estimate if the whole development is built, but told the Eagle he doesn’t know the impact for just Costco.
And people want to know.
The Planning and Zoning (P&Z) Commission wants to know, residents want to know and State Sen. Ted Kennedy wants to know.
Bill O’Brien Photo
Attorney Tom Cody (pictured), who represents Costco, answered questions Thursday night that were raised at the first two public hearing sessions, and disclosed revisions to the original plans in response to those issues. Then the P&Z commissioners raised some new tough questions.
Also on Thursday, businesses started to weigh in with their concerns about the impact of the big box store. About 100 people attended the third hearing on the Costco proposal in the auditorium at Branford High School. The hearing will continue next week at the regular P&Z meeting May 7 at 7 p.m., which will also be held in the high school auditorium.
It’s All About Tax Revenue
P&Z commissioner Joe Chadwick said many people have claimed there will be an economic benefit to the town, while others questioned the effect on public services. “Has anyone quantified what the net economic impact is going to be?” Chadwick asked.
Cody said Stanley Gniazdowski, an economic consultant hired by Costco, did a fiscal impact study of the Master Plan and determined there would be a gross tax generation between $850,000 and $900,000 from the full 44-acre Master Plan. Cody said the consultant interviewed the police and fire chief and members of town staff but he said the town staff felt it was premature to predict the impact on services. Cody said the consultant estimated the services’ impact would be no more than $200,000 per year, which would result in a net tax revenue of $650,000 per year.
Following the meeting, the Eagle asked Cody what the tax generation would be for just Costco—not including the other seven proposed buildings. Cody said he had no figures for just Costco. “We only looked at it as just the Master Plan,” he told the Eagle.
Gniazdowski, president of Realty Concepts Inc., a Guilford-based consulting group, was the same consultant used by the developers of the proposed Atlantic Wharf project on Meadow Street. Gniazdowski estimated that the 7.5 acre Atlantic Wharf development would generate about $987,000 from property taxes, car taxes, and restaurant taxes. He calculated there would be about $319,000 in costs for education, police, fire and ambulance coverage, which would result in more than $600,000 in potential tax generation each year from Atlantic Wharf. The project includes 205 upscale apartments, and a total of about 20,000 square feet of retail and restaurants. Click here to read about it.
Costco and the two main property owners are requesting that five parcels totaling about 44 acres be designated as a Planned Development District (PDD), which would allow commercial and retail development on the site which is currently zoned General Industrial 2 (IG-2).
According to the plans, the first phase of the project would be the construction of a 158,070 square-foot Costco store on about 22 acres at 572 E. Main St. owned by the Wayne Cooke and the Cooke family.
In the second or subsequent phases, plans call for seven retail buildings totaling about 86,775 square footage. These would be built on the western half of the PDD, on approximately 16 acres at 569 E. Main St. owned by Charles E. Weber Jr. and Al Secondino through their 595 Corporate Circle corporation.
Bringing a Costco to Branford was one of First Selectman Jamie Cosgrove’s campaign pledges, stating that Costco would be an economic boost to the commercial tax base. He has told various groups since that time that Costco’s tax generation will help taxpayers.
Bill O’Brien Photo
Stony Creek resident Dan Bullard (pictured), who spoke later in the meeting, said according to his calculations, tax revenue of $650,000 per year would amount to about $20 per person. “Are we willing to trade our town for $20?” he asked. Bullard, who is president of the Stony Creek Association, said he was not speaking on behalf of the association which has not taken a stance on the issue.
Kennedy Asks Questions
State Sen. Ted Kennedy, Jr., who lives in Branford, filed a letter with the P&Z about the Costco proposal, saying he was doing so as a “concerned Branford citizen.”
Kennedy, who attended the first hearing, said that while he knows the “fate of this plan” will be decided by the P&Z, “I believe that the citizens of Branford are entitled to meaningful and informed input in this critical decision-making process.” The letter was dated April 15, 2015.
As chairman of the state legislature’s Environment Committee, Kennedy noted the complexity of “the potential economic and environmental issues, as well as the scope of the proposed Costco development.” He wrote that “my fellow Branford residents need further details in order to make an informed decision as to the viability of this proposal and whether this plan is in keeping with the overall character of the community.”
He then asked the P&Z to ensure that Costco provide additional information to the town’s residents on a variety of topics, including additional traffic studies, tax revenue data, expected costs for municipal services, the impact on local business, storm water management, the impact on bio-tech development and “other competing proposals, if any, for the development of the site in question.”
A Revised Master Plan
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Cody, Costco’s attorney, gave a 30-minute presentation to answer questions raised at the two previous public hearing sessions. He discussed several issues—- including storm water management, impervious coverage, traffic and pedestrian circulation. He showed slides of how the Master Plan has been revised to address some of those issues. The P&Z moved to the front row of the auditorium to view Cody’s presentation.
“We went back and we looked at the Master Plan very carefully. What we found was that there definitely was room to add a number of sidewalks,” he said. Cody said there will be 8,800 linear feet, or 1.6 miles, of sidewalks along East Main, Leetes Island, and East Industrial roads; and also along the access driving across from Exit 56, and in the interior of the Master Plan.
“We have extensive pedestrian connections throughout the Master Plan,” he said.
Cody said he heard several questions at recent session about storm water drainage He said the engineers from BL Companies in Meriden put together a package of storm water information that was submitted this week to the P&Z Department.
He said the storm water management plans have been designed to be consistent with state and local regulations.
“We’re confident that the site plan and the Inland Wetlands permit application will be able to achieve consistency with your regulations and also consistency with the state guidelines,” Cody said. “While a Master Plan does not show all of the details, we have added considerable amount of details in materials that we recently submitted this week.”
Cody said a number of “best management practices” will be used, including catch basins with sumps, rain gardens, vegetated swales, hydrodynamic separators, and storm water management basins. He said but they are not all shown on the Master Plan, but that the site plans will show “robust” storm water plans.
Cody also said Costco has taken “great care” to design the Master Plan to minimize the direct impact on wetlands.
One of the questions raised by local environmentalist Bill Horne was the encroachment on the upland review area, which is the area near the wetlands. Cody did not say if any revisions were made to those areas. Click here to read the story.
Another issue raised at the last session by Horne and others was the amount of impervious coverage, which exceeded town regulations.
Cody said the initial plans included 76 percent impervious surface area ratio for the Connecticut Shellfish Company lot, but that the remaining area would be 65 percent. “A number of speakers didn’t believe that,” he said. “It was suggested we intended to have 76 percent across the entire site; that’s not true.”
He said the developers decided to revise the application to lower the amount of impervious coverage by adding about 1/3 acre to the Shellfish Company lot.
“We have amended the application to provide for 65 percent impervious surface area ratio,” across the whole PDD, Cody said.
Branford’s zoning regulations stipulate no more than 60 percent impervious surface area ratio in IG-2 zones.
Cody also discussed the semantics regarding impervious issues. He said Branford’s regulations about impervious surface area ratio require that the developer deduct areas that include steep slopes, wetlands and waterways—which he said would be more than 6 acres on this site. He said if those areas required by Branford’s regulations are not included in the calculations, then there would be 55 percent of impervious coverage.
Cody also said he feels the Master Plan is consistent with the town’s 10-year plan of Conservation and Development (POCD), which many people have disputed.
“We find considerable consistency,” Cody said, pointing out that the current IG-2 zones allow restaurants, small retail and gas stations—if special exception is granted. He said current development in the area includes the Stop & Shop grocery store, a gas station and a truck stop.
“The Master Plan as proposed, with the usages proposed, is in harmony with this area,” Cody said.
Commission Asks: Can a Better Box Be Built?
In addition to the question about economic impact, the P&Z commissioners asked questions about the location, aesthetics, and the design of the Master Plan.
Charles Andres (pictured), one of the commissioners, asked if Costco looked at Exit 53 as a possible location.
“It’s not as good a location as Exit 56,” Cody said.
Andres said the POCD refers to the importance of Branford’s gateways into town. He asked if something can be added to highlight the area as a gateway, and also to improve the aesthetics of the big box store. Andres asked if high quality construction materials could be used, and if other design features could be added. He asked if these issues could be included in the PDD or in the site plan stage.
Cody said some states allow aesthetic regulation. “But in Connecticut, I think our legal standard for aesthetic review is much more limited than the other states. So we will look to work within the context of the existing regulations that you have,” Cody said.
Andres asked if some review of aesthetics could be included in the PDD.
“I don’t see in your regulations that your PDD’s give you the authority to bring on a level of aesthetic review,” Cody said. “But certainly the PDD concept is intended to promote flexibility so we can work within the parameters of landscaping, grading and other improvements to the site to achieve an attractive site.”
Andres, who is an attorney, asked again if there can be provision for the commission to consider aesthetics details of the Costco building.
“I don’t know if the authority is there to do it,” Cody replied in regard to the town’s regulations.
P&Z commissioner Marci Palluzzi asked questions about the layout of the seven proposed commercial buildings, especially those near the Stop & Shop property.
John Mancini, a principal with BL Companies, said the placement of the proposed buildings had to accommodate several elements including power lines that cross the property, the wetlands and the grade of the land.
Voices in Favor
As at the previous two sessions of public hearings, people lined up to speak both for and against the proposal. On Thursday, the majority of speakers spoke against the project, but a few voiced their approval.
Jacey Wyatt, a member of the Parks & Open Space Authority, said she is in favor of the PDD.
“It’s time for Branford to start looking at change,” Wyatt said, suggesting even “bringing a Marriott to Stony Creek.”
Wyatt was the only member of the Authority to cast a negative vote against a statement the Authority presented at last night’s meeting. The statement asked that the P&Z “only approve the proposed PDD “if impervious surface is reduced to the standard 60 percent, and if plans are in place that meet or exceed Connecticut DEEP standards for best practices. ” Otherwise “the potential negative environmental impact on this open space property renders the PDD incompatible with the mission of the Authority of preserving and protecting the Town’s natural open space.”
Costco spokesman Joe Montesano (pictured) addressed the commission to discuss claims people made about biotech industries being a better option than retail. He said Costco fully supports biotech in Branford, and there are ample spaces for a science hub throughout the town. “We would love to have that hub built,” he said.
Montesano said most of Costco’s customers are middle- to high-income people, and that many bio-tech employees are Costco customers.
Small Businesses Protest Costco Master Plan
At this, the third public hearing, the small businesses in town began to make their voices heard. A total 35 businesses signed a petition asking the P&Z to respect its own 2008 Plan of Conservation and Development and deny the Costco application.
The businesses included those merchants who would now find themselves competing against Costco’s lower prices and high volume because Costco sells just about everything. Click here to read that.
Among those who signed the petition asking the P&Z to reject the Costco application were a number of gas stations and auto parts operations, liquor and jewelry stores, opticians, flower shops and local food markets here and in Guilford.
Gas stations are also essential to Costco’s operation. The Branford plans call for eight gas pump stations with 16 hoses. The plans say Costco will not service large trucks, which will help the truck-stop operation off Exit 56 at I-95.
Costco’s wine shops are world renown. Costco also sells eyeglasses, food, jewelry, flowers and many of the items in found in local markets, including fruit, vegetables, meat, chicken and seafood. It has many varieties of coffee and tea. Costco also has a coffee plaza within the store.
Barry Levine, owner of Willoughby’s Coffee and Tea shops in New Haven and Madison and in Branford, near the exit 56 interchange, sent a letter to the P&Z, which was read aloud at the meeting by one of his supporters.
Levine said Costco is a good company, but Exit 56 is a poor location. He said it will worsen traffic jams on I-95 that occur on weekends between May and October.
He also said Costco and the retail stores will affect small businesses, his and others.
“In fact, for every job Costco will bring another three local jobs will be lost, meaning there will be a net job loss to the community… In turn, smaller local businesses, the ones who know you and have served you for years will lose business to big box shoppers seeking the lowest price.”
Levine said Costco will change the unique character of Branford. “Must every town be turned into the sameness we see everywhere today?”
Jessie Laflamme (pictured), one of the owners of Pete and Gerry’s Organic Eggs in New Hampshire, said the family business almost folded before they began supplying eggs to Costco. He said they have prospered and expanded since the affiliation.
“Costco in your community is going to be an asset,” said Laflamme who came to Branford from New Hampshire to testify about the store’s fine reputation, a reputation opponents against placing the warehouse at Exit 56 agree with.
Karen Ragonese, the owner of Towne Pharmacy, a fixture in the heart of Branford, told the P&Z by letter that she is a resident, a business owner and a Costco club member.
“I oppose the Master Plan,” she wrote in a letter filed earlier with the P&Z.
She said she is fine with traveling 15 miles to shop at Costco in Milford and “enduring the traffic on the Post Rd so that my town does not turn into a Universal Drive in North Haven or a Boston Post Rd in Orange/Milford. The trip is well worth it.”
In her letter, Ragonese said “the hype has been on promoting Costco not the Master Plan and the additional 80,000 square feet of retail spaces. This has been demonstrated daily through face book, Email blasts and other social media. When I ask people, the vast majority have no idea about that phase of the plan. This is a case of bait and switch.”
She said she was concerned “not only for my business but for all the small businesses of Branford because those who shop at Costco on an occasional basis “will be more apt to shop it on a weekly or daily basis due to its more attractive location.”
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The survey shows that 65% of residents polled are in favor of the Costco plan BUT we don't know what the full plan is as we do not know what the remainder of the site is earmarked for.
Karen Ragonese is absolutely correct in that up till now it is all hype about Costco but until we know what the total plan is all about we don't know enough to answer surveys that don't ask the right questions: Are you in favor of having a major shopping center that includes a Costco or would you prefer just having a Costco store? Some clarity please.