LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05123-R02- HB.docx 1 of 12 General Assembly Substitute Bill No. 5123 January Session, 2019 AN ACT PROHIBITING THE USE OF EMINENT DOMAIN FOR CERTAIN COMMERCIAL P URPOSES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subdivision (1) of subsection (a) of section 8-127a of the 1 general statutes is repealed and the following is substituted in lieu 2 thereof (Effective October 1, 2019, and applicable to property acquired on or 3 after October 1, 2019): 4 (a) (1) No real property may be acquired by a redevelopment 5 agency by eminent domain pursuant to section 8 -128 under a 6 redevelopment plan under this chapter for the primary purpose of 7 increasing local tax revenue or for any purpose that produces income 8 from such real property for a private entity. 9 Sec. 2. Subdivision (3) of section 8-125 of the general statutes is 10 repealed and the following is substituted in lieu thereof (Effective 11 October 1, 2019, and applicable to property acquired on or after October 1, 12 2019): 13 (3) A "redevelopment plan" means a plan that includes: (A) (i) A 14 description of the redevelopment area and the condition, type and use 15 of the structures therein, and (ii) specification of each parcel proposed 16 to be acquired, including parcels to be acquired by eminent domain; 17 (B) the location and extent of the land uses, other than for any purpose 18 Substitute Bill No. 5123 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05123- R02-HB.docx } 2 of 12 that produces income from any such parcel acquired by eminent 19 domain for a private entity, proposed for and within the 20 redevelopment area, such as housing, recreation, business, industry, 21 schools, civic activities, open spaces or other categories of public and 22 private uses; (C) the location and extent of streets and other public 23 utilities, facilities and works within the redevelopment area; (D) 24 schedules showing the number of families displaced by the proposed 25 improvement, the method of temporary relocation of such families and 26 the availability of sufficient suitable living accommodations at prices 27 and rentals within the financial reach of such families and located 28 within a reasonable distance of the area from which such families are 29 displaced; (E) present and proposed zoning regulations in the 30 redevelopment area; (F) a description of how the redevelopment area 31 is deteriorated, deteriorating, substandard or detrimental to the safety, 32 health, morals or welfare of the community; and (G) any other detail 33 including financial aspects of redevelopment which, in the judgment 34 of the redevelopment agency authorized herein, is necessary to give it 35 adequate information; 36 Sec. 3. Subsection (b) of section 8-127 of the general statutes is 37 repealed and the following is substituted in lieu thereof (Effective 38 October 1, 2019): 39 (b) Before approving any redevelopment plan, the redevelopment 40 agency shall hold a public hearing on the plan, notice of which shall be 41 published at least twice in a newspaper of general circulation in the 42 municipality, the first publication of notice to be not less than two 43 weeks before the date set for the hearing. At least thirty-five days prior 44 to any public hearing, the redevelopment agency shall post the plan on 45 the Internet web site of the redevelopment agency, if any. The 46 redevelopment agency may approve any such redevelopment plan if, 47 following such hearing, it finds that: (1) The area in which the 48 proposed redevelopment is to be located is a redevelopment area; (2) 49 the carrying out of the redevelopment plan will result in materially 50 improving conditions in such area; (3) sufficient living 51 Substitute Bill No. 5123 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05123- R02-HB.docx } 3 of 12 accommodations are available within a reasonable distance of such 52 area or are provided for in the redevelopment plan for families 53 displaced by the proposed improvement, at prices or rentals within the 54 financial reach of such families; (4) the redevelopment plan is 55 satisfactory as to site planning, relation to the plan of conservation and 56 development of the municipality adopted under section 8-23 and, 57 except when the redev elopment agency has prepared the 58 redevelopment plan, the construction and financial ability of the 59 redeveloper to carry it out; (5) the planning agency has issued a 60 written opinion in accordance with subsection (a) of this section that 61 the redevelopment plan is consistent with the plan of conservation and 62 development of the municipality adopted under section 8-23; and (6) 63 (A) public benefits resulting from the redevelopment plan will 64 outweigh any private benefits; (B) existing use of the real property 65 cannot be feasibly integrated into the overall redevelopment plan for 66 the project; (C) acquisition by eminent domain is reasonably necessary 67 to successfully achieve the objectives of such redevelopment plan; and 68 (D) the redevelopment plan is not for the primary purpose of 69 increasing local tax revenues or for any purpose that produces income 70 from such real property for a private entity. No redevelopment plan 71 for a project that consists predominantly of residential facilities shall be 72 approved by the redevelopment agency in any municipality having a 73 housing authority organized under the provisions of chapter 128 74 except with the approval of such housing authority. 75 Sec. 4. Subdivision (1) of subsection (b) of section 8-193 of the 76 general statutes is repealed and the following is substituted in lieu 77 thereof (Effective October 1, 2019, and applicable to property acquired on or 78 after October 1, 2019): 79 (b) (1) The development agency may, with the approval of the 80 legislative body in accordance with this subsection, and in the name of 81 the municipality, acquire by eminent domain real property located 82 within the project area and real property and interests therein for 83 rights-of-way and other easements to and from the project area, in the 84 Substitute Bill No. 5123 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05123- R02-HB.docx } 4 of 12 same manner that a redevelopment agency may acquire real property 85 under sections 8-128 to 8-133, inclusive, as if said sections specifically 86 applied to development agencies, except that no real property may be 87 acquired by eminent domain pursuant to this subsection for the 88 primary purpose of increasing local tax revenue or for any purpose 89 that produces income from such real property for a private entity. 90 Sec. 5. Section 8-187 of the general statutes is repealed and the 91 following is substituted in lieu thereof (Effective October 1, 2019, and 92 applicable to property acquired on or after October 1, 2019): 93 As used in this chapter, (1) "municipality" means a town, city, 94 consolidated town and city or consolidated town and borough; (2) 95 "legislative body" means (A) the board of selectmen in a town that 96 does not have a charter, special act or home rule ordinance relating to 97 its government or (B) the council, board of aldermen, representative 98 town meeting, board of selectmen or other elected legislative body 99 described in a charter, special act or home rule ordinance relating to 100 government in a city, consolidated town and city, consolidated town 101 and borough or a town having a charter, special act, consolidation 102 ordinance or home rule ordinance relating to its government; (3) 103 "development agency" means the agency designated by a municipality 104 under section 8-188 through which the municipality may exercise the 105 powers granted under this chapter; (4) "development project" means a 106 project conducted by a municipality for the assembly, improvement 107 and disposition of land or buildings or both to be used principally for 108 industrial or business purposes and includes vacated commercial 109 plants; (5) "vacated commercial plants" means buildings formerly used 110 principally for business or industrial purposes of which more than fifty 111 per cent of the usable floor space is, or which it is anticipated, within 112 eighteen months, shall be, unused or substantially underutilized; (6) 113 "project area" means the area within which the development project is 114 located; (7) "commissioner" means the Commissioner of Economic and 115 Community Development; (8) "planning commission" means the 116 planning and zoning commission designated pursuant to section 8-4a 117 Substitute Bill No. 5123 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05123- R02-HB.docx } 5 of 12 or the planning commission created pursuant to section 8-19; (9) "real 118 property" means land, subterranean or subsurface rights, structures, 119 any and all easements, air rights and franchises and every estate, right 120 or interest therein; and (10) "business purpose" includes, but is not 121 limited to, any commercial, financial or retail enterprise, [and includes] 122 including any enterprise which promotes tourism, [and] but excludes 123 any real property that produces income for a private entity. 124 Sec. 6. Subsection (a) of section 8-189 of the general statutes is 125 repealed and the following is substituted in lieu thereof (Effective 126 October 1, 2019, and applicable to property acquired on or after October 1, 127 2019): 128 (a) The development agency may initiate a development project by 129 preparing a project plan in accordance with regulations adopted by the 130 commissioner pursuant to section 8-198. The project plan shall meet an 131 identified public need and include: (1) A legal description of the land 132 within the project area; (2) a description of the present condition and 133 uses of such land or building; (3) a description of the process utilized 134 by the agency to prepare the plan and a description of alternative 135 approaches considered to achieve project objectives; (4) a description 136 of the types and locations of land uses or building uses proposed for 137 the project area; (5) a description of the types and locations of present 138 and proposed streets, sidewalks and sanitary, utility and other 139 facilities and the types and locations of other proposed site 140 improvements; (6) statements of the present and proposed zoning 141 classification and subdivision status of the project area and the areas 142 adjacent to the project area; (7) a plan for relocating project-area 143 occupants; (8) a financing plan; (9) an administrative plan; (10) a 144 marketability and proposed land-use study or building use study if 145 required by the commissioner; (11) appraisal reports and title searches; 146 (12) a description of the public benefits of the project including, but not 147 limited to, (A) the number of jobs which the development agency 148 anticipates would be created by the project; (B) the estimated property 149 tax benefits; (C) the number and types of existing housing units in the 150 Substitute Bill No. 5123 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05123- R02-HB.docx } 6 of 12 municipality in which the project would be located, and in contiguous 151 municipalities, which would be available to employees filling such 152 jobs; (D) a general description of infrastructure improvements, 153 including public access, facilities or use, that the development agency 154 anticipates may be needed to implement the development plan; (E) a 155 general description of the development agency's goals for blight 156 remediation or, if known, environmental remediation; (F) a general 157 description of any aesthetic improvements that the development 158 agency anticipates may be generated by the project; (G) a general 159 description of the project's intended role in increasing or sustaining 160 market value of land in the municipality; (H) a general description of 161 the project's intended role in assisting residents of the municipality to 162 improve their standard of living; and (I) a general statement of the 163 project's role in maintaining or enhancing the competitiveness of the 164 municipality; (13) findings that (A) the land and buildings within the 165 project area will be used principally for industrial or business 166 purposes; (B) the plan is in accordance with the plan of conservation 167 and development for the municipality adopted by its planning 168 commission under section 8-23, and the plan of development of the 169 regional council of governments adopted under section 8-35a, if any, 170 for the region within which the municipality is located; (C) the plan 171 was prepared giving due consideration to the state plan of 172 conservation and development adopted under chapter 297 and any 173 other state-wide planning program objectives of the state or state 174 agencies as coordinated by the Secretary of the Office of Policy and 175 Management; and (D) the project will contribute to the economic 176 welfare of the municipality and the state; and that to carry out and 177 administer the project, public action under this chapter is required; 178 and (14) a preliminary statement describing the proposed process for 179 acquiring each parcel of real property, including findings that (A) 180 public benefits resulting from the development plan will outweigh any 181 private benefits; (B) existing use of the real property cannot be feasibly 182 integrated into the overall development plan for the project; (C) 183 acquisition by eminent domain is reasonably necessary to successfully 184 achieve the objectives of such development plan; and (D) the 185 Substitute Bill No. 5123 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05123- R02-HB.docx } 7 of 12 development plan is not for the primary purpose of increasing local 186 tax revenues or for any purpose that produces income from such real 187 property for a private entity. Any plan that has been prepared by a 188 redevelopment agency under chapter 130 may be submitted by the 189 development agency to the legislative body and to the commissioner 190 for approval in lieu of a plan initiated and prepared in accordance with 191 this section, provided all other requirements of this chapter for 192 obtaining the approval of the commissioner of the project plan are 193 satisfied. 194 Sec. 7. Subdivision (1) of subsection (i) of section 32-224 of the 195 general statutes is repealed and the following is substituted in lieu 196 thereof (Effective October 1, 2019, and applicable to property acquired on or 197 after October 1, 2019): 198 (i) (1) The implementing agency may, with the approval of the 199 legislative body of the municipality, and in the name of the 200 municipality, condemn in accordance with section 8-128 to 8-133, 201 inclusive, any real property necessary or appropriate for the project as 202 identified in the development plan, including real property and 203 interests in land for rights-of-way and other easements to and from the 204 project area, except that no real property may be condemned pursuant 205 to this subsection for the primary purpose of increasing local tax 206 revenue or for any purpose that produces income from such real 207 property for a private entity. 208 Sec. 8. Subsection (a) of section 32-222 of the general statutes is 209 repealed and the following is substituted in lieu thereof (Effective 210 October 1, 2019, and applicable to property acquired on or after October 1, 211 2019): 212 (a) "Business development project" means a project undertaken by 213 an eligible applicant involving one or more of the following: 214 (1) The construction, substantial renovation, improvement or 215 expansion of a facility; 216 Substitute Bill No. 5123 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05123- R02-HB.docx } 8 of 12 (2) The acquisition of new machinery and equipment; 217 (3) The acquisition, other than by condemnation for any purpose 218 that produces income for a private entity, improvement, demolition, 219 cultivation or disposition of real property, or combinations thereof, or 220 the remediation of contaminated real property; 221 (4) The creation at a facility, within twenty-four months of the 222 initiation of a hiring program, not less than ten new jobs or an increase 223 in the number of persons employed at the facility of twenty per cent, 224 whichever is greater; 225 (5) Economic diversification of the economy of an area of the state or 226 manufacturing or other economic base business where such area or 227 business is substantially reliant upon defense and related industry; 228 (6) Participation in the avoidance of an imminent plant closing or 229 relocation by a manufacturing or other economic base business or 230 assist or improve the economy of an area of the state which has been or 231 is likely to be significantly and adversely impacted by one or more 232 major plant closings or relocations; 233 (7) Support research and development or commercialization of 234 technologies, products, processes or techniques of a manufacturing or 235 other economic base business; 236 (8) Creation or support of organizations and activities specifically 237 leveraging federal resources that provide technical and engineering 238 assistance to small manufacturers or other economic base businesses to 239 assist them with the design, testing, manufacture and marketing of 240 new products, the exporting of state products and services, and the 241 instruction and implementation of new techniques and technologies; 242 (9) Support of substantial workforce development efforts; 243 (10) Promotion of community conservation or development or 244 improvement of the quality of life for urban residents of the state; 245 Substitute Bill No. 5123 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05123- R02-HB.docx } 9 of 12 (11) Promotion of the revitalization of underutilized, state-owned 246 former railroad depots and areas adjacent to such depots; or 247 (12) Promotion of export activities, including sponsorship of 248 programs that support exportation, assistance to companies in 249 accessing federal Department of Commerce services, and provision of 250 marketing materials and web site improvements for exporters; 251 Sec. 9. Subsection (b) of section 32-224 of the general statutes is 252 repealed and the following is substituted in lieu thereof (Effective 253 October 1, 2019, and applicable to property acquired on or after October 1, 254 2019): 255 (b) The implementing agency may initiate a municipal development 256 project by preparing and submitting a development plan to the 257 commissioner. Such plan shall meet an identified public need and 258 include: (1) A legal description of the real property within the 259 boundaries of the project area; (2) a description of the present 260 condition and uses of such real property; (3) a description of the 261 process utilized by the agency to prepare the plan and a description of 262 alternative approaches considered to achieve project objectives; (4) a 263 description of the types and locations of land uses or building uses 264 proposed for the project area; (5) a description of the types and 265 locations of present and proposed streets, sidewalks and sanitary, 266 utility and other facilities and the types and locations of other 267 proposed project improvements; (6) statements of the present and 268 proposed zoning classification and subdivision status of the project 269 area and the areas adjacent to the project area; (7) a plan for relocating 270 project area occupants; (8) a financing plan; (9) an administrative plan; 271 (10) an environmental analysis, marketability and proposed land use 272 study, or building use study if required by the commissioner; (11) 273 appraisal reports and title searches if required by the commissioner; 274 (12) a description of the public benefit of the project, including, but not 275 limited to, (A) the number of jobs which the implementing agency 276 anticipates would be created or retained by the project, (B) the 277 estimated property tax benefits, (C) the number and types of existing 278 Substitute Bill No. 5123 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05123- R02-HB.docx } 10 of 12 housing units in the municipality in which the project would be 279 located, and in contiguous municipalities, which would be available to 280 employees filling such jobs, (D) a general description of infrastructure 281 improvements, including public access, facilities or use, that the 282 implementing agency anticipates may be needed to implement the 283 development plan, (E) a general description of the implementing 284 agency's goals for blight remediation or, if known, environmental 285 remediation, (F) a general description of any aesthetic improvements 286 that the implementing agency anticipates may be generated by the 287 project, (G) a general description of the project's intended role in 288 increasing or sustaining market value of land in the municipality, (H) a 289 general description of the project's intended role in assisting residents 290 of the municipality to improve their standard of living, and (I) a 291 general statement of the project's role in maintaining or enhancing the 292 competitiveness of the municipality; (13) a finding that (A) the land 293 and buildings within the boundaries of the project area will be used 294 principally for manufacturing or other economic base business 295 purposes or business support services; (B) the plan is in accordance 296 with the plan of conservation and development for the municipality, if 297 any, adopted by its planning commission under section 8-23, and the 298 plan of development of the regional council of governments adopted 299 under section 8-35a, if any, for the region within which the 300 municipality is located; (C) the plan was prepared giving due 301 consideration to the state plan of conservation and development 302 adopted under chapter 297 and other state-wide planning program 303 objectives of the state or state agencies as coordinated by the Secretary 304 of the Office of Policy and Management; and (D) the project will 305 contribute to the economic welfare of the municipality and the state 306 and that to carry out and administer the project, public action under 307 sections 32-220 to 32-234, inclusive, is required; and (14) a preliminary 308 statement describing the proposed process for acquiring each parcel of 309 real property, including findings that (A) public benefits resulting 310 from the plan will outweigh any private benefits; (B) existing use of the 311 real property cannot be feasibly integrated into the overall plan for the 312 project; (C) acquisition by eminent domain is reasonably necessary to 313 Substitute Bill No. 5123 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05123- R02-HB.docx } 11 of 12 successfully achieve the objectives of such plan; and (D) the plan is not 314 for the primary purpose of increasing local tax revenues or for any 315 purpose that produces income from such parcel for a private entity. 316 The provisions of this subsection with respect to submission of a 317 development plan to and approval by the commissioner and with 318 respect to a finding that the plan was prepared giving due 319 consideration to the state plan of conservation and development and 320 state-wide planning program objectives of the state or its agencies shall 321 not apply to a project for which no financial assistance has been given 322 and no application for financial assistance is to be made under section 323 32-223. Any plan that has been prepared under chapters 130, 132 or 324 588a may be submitted by the implementing agency to the legislative 325 body of the municipality and to the commissioner in lieu of a plan 326 initiated and prepared in accordance with this section, provided all 327 other requirements of sections 32-220 to 32-234, inclusive, for obtaining 328 the approval of the commissioner of the development plan are 329 satisfied. Any action taken in connection with the preparation and 330 adoption of such plan shall be deemed effective to the extent such 331 action satisfies the requirements of said sections. 332 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2019, and applicable to property acquired on or after October 1, 2019 8-127a(a)(1) Sec. 2 October 1, 2019, and applicable to property acquired on or after October 1, 2019 8-125(3) Sec. 3 October 1, 2019 8-127(b) Sec. 4 October 1, 2019, and applicable to property acquired on or after October 1, 2019 8-193(b)(1) Substitute Bill No. 5123 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05123- R02-HB.docx } 12 of 12 Sec. 5 October 1, 2019, and applicable to property acquired on or after October 1, 2019 8-187 Sec. 6 October 1, 2019, and applicable to property acquired on or after October 1, 2019 8-189(a) Sec. 7 October 1, 2019, and applicable to property acquired on or after October 1, 2019 32-224(i)(1) Sec. 8 October 1, 2019, and applicable to property acquired on or after October 1, 2019 32-222(a) Sec. 9 October 1, 2019, and applicable to property acquired on or after October 1, 2019 32-224(b) Statement of Legislative Commissioners: In Section 5(10), "any property" was changed to "any real property" for accuracy and consistency. PD Joint Favorable Subst.