West Haven council approves tax deferral for developer on former Carroll Cut-Rate site
WEST HAVEN >> The City Council has unanimously approved a new, expanded tax deferral agreement for the developer building an $18 million, 67-unit apartment building over 15,000 square feet of retail on the former site of the Carroll Cut-Rate Furniture building on Route 1 in Allingtown.
The approval essentially updates a much smaller seven-year tax abatement agreement for what then was a much smaller, 30-unit, $8 million apartment building over 7,420 square feet of retail in the a converted former Carroll Cut-Rate building.
The developer, Starter sportswear founder David Beckerman’s Forest Manor LLC, ended up demolishing the former furniture store after the city’s building official declared it unsafe months after a subcontractor using heavy equipment damaged the building while removing a rear loading dock. Building Official Frank Gladwyn originally found the building to be structurally sound after the Feb. 9, 2015, mishap, but later changed his mind.
City Commissioner of Planning and Development Joseph Riccio Jr. ran interference for the plan through the council Monday night, with Beckerman, Forest Manor Executive Vice President Gary Letendre and attorney Mark Sklarz sitting in the audience.
“They have a lot of faith in West Haven, investing that amount of money,” Riccio said.
Riccio told the council’s Tax Deferral Committee, led by Councilwoman Stacy Riccio, D-4, who is not related to Joseph Riccio, that once finished, Forest Manor would pay taxes of $101,776 at the start of the seven-year abatement period.
That represents 30 percent of what the bill would be without the agreement — and is four times what the taxes were when Carroll Cut-Rate was in business, Joseph Riccio said in response to a question from Councilman David Riccio, R-At Large.
David Riccio, Stacy Riccio’s ex-husband, also is not related to Joseph Riccio.
The amount paid would rise over the life of the agreement to $135,701, $169,626, $203,551, $237,477, $271,402, $305,327 and finally $370,279, Joseph Riccio said.
David Riccio also asked about parking for the project, pointing out that when the city Zoning Board of Appeals approved it, some questioned whether parking was sufficient for the number of units.
Joseph Riccio said that “some of our parking regulations are not up to date,” and that in a college environment such as the neighborhoods around University of New Haven, which is just up the hill from the site, not everyone may have or need a vehicle.
Letendre later pointed out that the developers purchased an additional house on Taft Avenue after questions were raised about whether parking was sufficient. That property will provide an additional 18-20 spaces, he said.
Letendre told the council he hopes to break ground the first week of April and is hoping to complete construction by June 2017.
Several members of the council, which following the last election now includes 12 Democrats who all ran with Mayor Ed O’Brien, plus Republican David Riccio, spoke in favor of the project.
“I don’t see a lot of $20 million projects anywhere,” said Councilman Nick Ruickoldt, D-2. “It’s a shame that it took a mishap to get it” to happen, “but it’s great for us…
“The regulations are very antiquated,” Ruickoldt said.
Councilman Dave Forsyth Jr., D-At Large, called the development “great for Allingtown” and said it’s “going to help rebuild Allingtown.”
Councilman Sean Ronan, D-10, pointed out that “the revenue that we see in the first year is greater than Carroll Cut-Rate.”
“It’s a citywide project. It’s going to help everyone,” said Councilman Brent Watt, D-5.
Mayor O’Brien said the project will net the city $1.8 million over the life of the agreement — far greater that if “we do nothing and Mr. Beckerman walks away.
“We have put a lot of effort into changing the economic climate in West Haven,” O’Brien said. “This developer, David Beckerman, did not have to do this. I want to thank him.”
