Categorized | BARKHAMSTED

Barkhamsted To Consider Tax Abatement For New Medical Facility

At a Special Town Meeting that has been called for this coming Wednesday, February 6, Barkhamsted residents will be asked to consider a tax abatement for the builder of a new medical facility on Route 44. More than half of that facility will house the Charlotte Hungerford emergency center and medical services which are currently located at the Winsted Health Center in the former Winsted Hospital building. Following is information on the specifics of the proposed tax abatement which First Selectman Don Stein has mailed to Barkhamsted residents. Please be sure to attend the Special Town Meeting on Wednesday and vote on the tax abatement for this project which will bring important infrastructure to a section of Route 44 in Barkhamsted.

The information below has been mailed to Barkhamsted residents by First Selectman Don Stein. You may contact Don at 860 379-8285 or at dstein@barkhamsted.us.

There will be a Special Town Meeting on Wednesday, February 6 at 7:00 PM in the Elementary School. There are three items on the agenda:

1) a new ordinance to set the fees for folks to recover their dogs who have been impounded;

2) a new ordinance to allow the Town to recover the fees charged to the Town when we have to notify the State of overdue taxes on an automobile; and

3) the approval of a tax abatement agreement between the Town and the developer of the proposed medical center on Route 44.

The proposal is from Borghesi Building, operating as Barkhamsted Hospital LLC, to build a 19,000 sq. ft. medical center, to house a modern emergency department, cardiac and pulmonary rehab programs, laboratories, a sleep center and doctors’ offices just west of the Mallory Brook shopping plaza. Borghesi’s plan includes leasing the building for 40 years to the Charlotte Hungerford Hospital and the site will include a helicopter landing pad to allow Lifestar to service the facility.

Charlotte Hungerford made the decision to relocate from the Winsted Health Center as part of its commitment to providing the greater Winsted area with the best emergency medical care possible. The Hospital chose the Barkhamsted site after an extensive process that included reviewing the current facility on Spencer Street and five other Winsted area properties. It was concluded as part of that process that the current location did not present a cost-effective alternative to the option of a new building, due to the age, site limitations, and the condition of the current space at the Health Center.In order for the project to meet the developer’s and the hospital’s economic assumptions, the Town’s Economic Development Commission and the Board of Selectmen have approved taxIn order for the project to meet the developer’s and the hospital’s economic assumptions, the Town’s Economic Development Commission and the Board of Selectmen have approved tax abatements for the developer for 5 years at 100%, the 6th year at 50% and the 7th year at 25%. This is consistent with the State statute that allows for 7 years of tax abatements for certain types of improvements to real estate, as long as the total investment is in excess of $3 million. This new medical center meets the State criteria and, along with the new building, the developer would bring water and sewers to the area along Route 44 near Mallory Brook Plaza and Lombard Ford. Winsted has agreed to provide water and sewer for the project. These utility installations will cost the developer in excess of $750,000. Other near-by businesses would be able to hook into the sewers and water, if they so choose.

Under the terms of the proposed agreement, the Town would continue to receive the same taxes on the property as we do today. In addition, the developer would pay full taxes during the construction period and the town would be able to receive additional taxes on eligible personal property (equipment) in the doctors’ offices throughout the abatement period. We do not lose any property taxes we are collecting today, and if the agreement is approved, we would see a potential increase in tax revenue throughout the period of the abatement. The full taxes on the building and improvements would phase in per the agreement. The investment by the developer in sewers and water (>$750,000) is estimated to be about 3 times higher than the value of the potential taxes that are proposed to be abated, estimated to be between $250,000 and $300,000.

Please review the material in this flier and come to the meeting.

health-center_fl

South elevation of the proposed medical facility on Route 44 in Barkhamsted.
Image courtesy of Borghesi Building and Engineering Co., Inc.

 

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