Connecticut 2019 Regular Session

Connecticut House Bill HB05123 Latest Draft

Bill / Comm Sub Version Filed 04/17/2019

                             
 
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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general statutes is repealed and the following is substituted in lieu 2 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repealed and the following is substituted in lieu thereof (Effective 11 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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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(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 
 
 
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(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 
 
 
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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 
 
 
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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 
 
 
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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.