Substitute House Bill No. 6102
Special Act No. 21-38
AN ACT CONCERNING A SPECIAL TAXING DISTRICT WITHIN THE
CITY OF WEST HAVEN.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (Effective from passage) (a) For the purposes of this section:
(1) "District" means that certain real property, situated in the City of
West Haven, County of New Haven and the State of Connecticut, the
West Haven Special Improvement District, a body politic and corporate,
consisting of the area bounded and described as follows: Beginning at a
point located on the southerly side of Elm Street and at the northeasterly
corner of lands now or formerly of SZS Enterprises, LLC, said point
being the northwesterly corner of the parcel described in this section;
thence running N64°23'05"E a distance of 752.16 feet along the southerly
street line of Elm Street to the mean high water line of New Haven
Harbor; thence running in a southerly direction a distance of 1,951.3 feet
along the mean high water line of New Haven Harbor to the
northeasterly corner of lands now or formerly of Bayview
Condominiums; thence running S66°27'52"W a distance of 263.4 feet
along the northerly line of lands now or formerly of Bayview
Condominiums to the easterly street line of Bayview Place; thence
running S66°27'52"W a distance of 50 feet crossing Bayview Place to the
westerly street line of Bayview Place; thence running S23°32'08"E a Substitute House Bill No. 6102
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distance of 104.6 feet along the westerly street line of Bayview Place to
lands now or formerly of Christopher W. and Bonnie A. Jones; thence
running S67°06'19"W a distance of 143 feet along the northerly line of
lands now or formerly of Christopher W. and Bonnie A. Jones to a point;
thence running S23°32'08"E a distance of 5.32 feet to lands now or
formerly of Brittany M. Shaw; thence running S66°05'44"W a distance of
144.19 feet to the easterly street line of First Avenue; thence running
N24°14'02"W a distance of 280.93 feet along the easterly street line of
First Avenue to a point; thence running N34°18'02"W a distance of
1,293.57 feet along the easterly street line of First Avenue to the
southerly line of lands now or formerly of SZS Enterprises, LLC; thence
running N36°06'22"W a distance of 100 feet along lands now or formerly
of SZS Enterprises, LLC, to the point and place of the beginning. The
parcel described in this section contains 1,142,714 square feet or 26.233
acres of land. The project boundaries shall also include any off-site
locations mandated by any permitting agency for improvements
associated with the project's traffic management requirements.
(2) "Voter" means (A) any person who is an elector of the district, (B)
any citizen of the United States of the age of eighteen years or more who,
jointly or severally, is liable to the district for taxes assessed against such
citizen on an assessment of not less than one thousand dollars on the
last-completed grand list of such district, as the case may be, or who
would be so liable if not entitled to an exemption under subdivision (17),
(19), (22), (23) or (26) of section 12-81 of the general statutes, or (C) any
holder of record of an interest in real property within the district.
(3) "Holder of record of an interest in real property" means an owner
of a fee simple interest in such property.
(b) (1) Upon the petition of fifteen or more persons eligible to vote in
the city of West Haven, specifying the district for any or all of the
purposes set forth in this section, the mayor of such city shall call a
meeting of the voters to act upon such petition, which meeting shall be Substitute House Bill No. 6102
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held at such place within such city and such hour as the mayor
designates, not later than thirty days after such petition has been
received by the mayor. Such meeting shall be called by publication of a
written notice of the same, signed by the mayor, at least fourteen days
before the time fixed for such meeting in two successive issues of a
newspaper published or circulated in such city. Not later than twenty-
four hours before such meeting, (A) two hundred or more voters or ten
per cent of the total number of voters of such proposed district,
whichever is less, may petition the mayor, in writing, for a referendum
of the voters of such proposed district, or (B) the mayor in his or her
discretion may order a referendum of the voters of such proposed
district, on the sole question of whether the proposed district should be
established. Any such referendum shall be held not less than seven or
more than fourteen days after the receipt of such petition or the date of
such order, on a day to be set by the mayor for a vote by paper ballots
or by a "yes" or "no" vote on the voting machines, during the hours
between twelve o'clock noon and eight o'clock p.m.; except that such
city may, by vote of its city council, provide for an earlier hour for
opening the polls but not earlier than six o'clock a.m., notwithstanding
the provisions of any special act. If voters representing at least two-
thirds of the assessments of holders of record within the proposed
district cast votes in such referendum in favor of establishing the
proposed district, the mayor shall reconvene such meeting not later than
seven days after the day on which the referendum is held. Upon
approval of the petition for the proposed district by voters representing
at least two-thirds of the assessments of holders of record within the
proposed district present at such meeting, or if a referendum is held,
upon the reconvening of such meeting after the referendum, the voters
may name the district and, upon the vote of voters representing a
majority of assessments of holders of record within the proposed
district, choose necessary officers therefor to hold office until the first
annual meeting thereof; and the district shall, upon the filing of the first
report filed in the manner provided in subsection (c) of section 7-325 of Substitute House Bill No. 6102
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the general statutes, thereupon be a body corporate and politic and have
the powers provided in sections 7-324 to 7-329, inclusive, of the general
statutes, not inconsistent with the general statutes or this section, in
relation to the objects for which it was established, that are necessary for
the accomplishment of such objects, including the power to lay and
collect taxes. The clerk of such district shall cause its name and a
description of its territorial limits and of any additions that may be made
thereto to be recorded in, and a caveat be placed upon, the land records
of the city of West Haven.
(2) At the meeting called for the purpose of establishing the district
as provided in subdivision (1) of this subsection, the voters may
establish the district for any or all of the following purposes: To
extinguish fires, to light streets, to plant and care for shade and
ornamental trees, to plan, lay out, acquire, construct, maintain and
finance roads, sidewalks, crosswalks, drains, sewer infrastructure,
parking facilities, open space, bulkhead repairs, environmental
remediation and other public and private infrastructure improvements,
including related site preparation and demolition costs, to acquire,
construct, maintain and regulate the use of recreational facilities, parks,
playgrounds and public artwork, to plan, lay out, acquire, construct,
reconstruct, repair, maintain, supervise and manage a flood or erosion
control system, to plan, lay out, acquire, construct, maintain, operate,
finance and regulate the use of a community water system, all as
referred to in this section as the "improvements". The district may
acquire, operate, maintain, repair and replace the improvements and
may contract with a town, city, borough or other district for carrying out
any of the purposes or the purchase or sale of any of the improvements
for which such district was established. Any transfer to the district of
real property and the improvements related to such real property shall
be deemed development for municipal purposes and shall be expressly
excluded from the purposes for which a subdivision, as defined in
section 8-18 of the general statutes, may be made. Substitute House Bill No. 6102
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(3) At the meeting called for the purpose of establishing the district
as provided in subdivision (1) of this subsection, the voters shall fix the
date of the annual meeting of the voters for the election of district
officers and the transaction of such other business as may properly come
before such annual meeting. At such organizational meeting of the
district, the voters shall elect five directors and four officers as follows:
A president, a vice-president, a clerk and a treasurer; provided, upon its
organization and at all times thereafter, one director may be appointed
by the mayor of the city of West Haven. The directors not appointed by
the mayor shall be elected to serve for terms of one, two, three and four
years, respectively, and thereafter at the annual meeting such directors,
as each term ends, shall be elected to serve for a term of four years. Not
less than three members of the board of directors shall be residents of
the state of Connecticut. Subject to the provisions of subdivision (4) of
this subsection, not fewer than fifteen voters of the district shall
constitute a quorum for the transaction of business at such
organizational meeting of the district; and if fifteen voters are not
present at such meeting, the mayor may adjourn such meeting from
time to time, until at least fifteen voters are present. Special meetings of
the district may be called on the application of ten per cent of the total
number of voters of such district or twenty of the voters of such district,
whichever is less, or by the president or any three directors upon giving
notice as provided in this section. Any special meeting called on the
application of the voters shall be held not later than twenty-one days
after receiving such application. Notice of the holding of the annual
meeting and all special meetings shall be given by publication of a notice
of such meetings in a newspaper having a general circulation in such
district at least ten days before the day of such meetings, signed by the
president or any three directors, which notice shall designate the time
and place of such meetings and the business to be transacted at such
meetings. Two hundred or more persons or ten per cent of the total
number of voters of such district, whichever is less, may petition the
clerk of such district, in writing, at least twenty-four hours prior to any Substitute House Bill No. 6102
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such meeting, requesting that any item or items on the call of such
meeting be submitted to the voters not less than seven or more than
fourteen days thereafter, on a day to be set by the district meeting or, if
the district meeting does not set a date, by the board of directors, or a
vote by paper ballots or by a "yes" or "no" vote on the voting machines,
during the hours between twelve o'clock noon and eight o'clock p.m.,
except that any district may, by vote of its board of directors, provide
for an earlier hour for opening the polls but not earlier than six o'clock
a.m. The paper ballots or voting machine ballot labels, as the case may
be, shall be provided by the clerk. When such a petition has been filed
with the clerk, the president, after completion of other business and after
reasonable discussion, shall adjourn such meeting and order such vote
on such item or items in accordance with the petition; and any item so
voted may be rescinded in the same manner. The clerk shall phrase such
item or items in a form suitable for printing on such paper ballots or
ballot labels. Subject to the provisions of subdivision (4) of this
subsection, not fewer than fifteen voters of the district shall constitute a
quorum for the transaction of business at any meeting of the district;
and if fifteen voters are not present at such meeting, the president of the
district or, in such president's absence, the vice-president, may adjourn
such meeting from time to time, until at least fifteen voters are present;
and all meetings of the district where a quorum is present may be
adjourned from time to time by a vote of a majority of the voters voting
on the question. At any annual or special meeting, the voters may, by a
majority vote of those present, discontinue any purposes for which the
district is established or undertake any additional purpose or purposes
enumerated in subdivision (2) of this subsection.
(4) (A) A quorum for the transaction of business at the meeting called
for the purpose of establishing the district, as provided in subdivision
(1) of this subsection, shall be either fifteen voters of such district or a
majority of the holders of record of interests in real property within such
district, as long as the assessments of such holders of record constitute Substitute House Bill No. 6102
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more than one-half of the total of assessments for all interests in real
property within such district. If fifteen voters or a majority of the holders
of record of interests in real property within such district are not present
at such meeting or the assessments of such holders of record constitute
less than one-half of the total of assessments for all interests in real
property within such district, the mayor may adjourn such meeting,
from time to time, until at least fifteen voters or a majority of the holders
of record of interests in real property within such district are present
and the assessments of such holders of record constitute more than one-
half of the total of assessments for all interests in real property within
such district.
(B) For the transaction of business at any meeting of the district other
than a meeting described in subparagraph (A) of this subdivision, a
quorum shall be either fifteen voters of the district or a majority of the
holders of record of interests in real property within such district, as
long as the assessments for such holders of record constitute more than
one-half of the total of assessments for all interests in real property
within such district. At any meeting of the district other than a meeting
described in subparagraph (A) of this subdivision, each holder of record
of an interest in real property shall be entitled to cast one vote for each
interest in real property that it owns within the district, except as
provided in subparagraph (B) of subdivision (1) of subsection (d) of this
section. All actions, resolutions and proceedings at such meeting at
which a quorum is present shall require a majority vote, each, of (i) the
voters of the district present and voting, and (ii) the holders of record of
interests in real property within the district representing at least one-
half of the assessments of all holders of record of interests in real
property within the district, present and voting; provided, the
provisions of this sentence may be amended at an annual or special
meeting of the district at which a quorum is present only upon a
majority vote, each, of (I) all of the voters of the district, and (II) all of
the holders of record of interests in real property within the district Substitute House Bill No. 6102
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representing at least two-thirds of the assessments of all holders of
record of interests in real property within the district. For the purpose
of determining a holder of record of an interest in real property within
the district as used in this subdivision, such term shall mean an owner
of a fee simple interest in such real property. If fifteen voters or a
majority of the holders of record of interests in real property within such
district are not present at such meeting or the assessments of such
holders of record constitute less than one-half of the total assessments
for all interests in real property within such district, the president of the
district, or in such president's absence, the vice-president, may adjourn
such meeting, from time to time, until at least fifteen voters or a majority
of the holders of record of interests in real property within such district
are present and the assessments of such holders of record constitute
more than one-half of the total of assessments for all interests in real
property within such district.
(5) In any case in which an action for a vote by the voters of the district
is to be initiated by the petition of such voters, in addition to such other
requirements as the general statutes or any special act may impose, such
petition shall be on a form prescribed or approved by the clerk of such
district, and each page of such petition shall contain a statement, signed
under penalty of false statement, by the person who circulated such
page, setting forth such circulator's name and address, and stating that
each person whose name appears on such page signed such page in
person in the presence of such circulator, that the circulator either knows
each such signer or that the signer satisfactorily identified himself to the
circulator and that all the signatures on such page were obtained not
earlier than six months prior to the filing of such petition. Any page of
a petition that does not contain such a statement by the circulator shall
be invalid. Any circulator who makes a false statement in the statement
required to be contained on each page of such petition shall be subject
to the penalty provided for false statement. No petition shall be valid
for any action for a vote by the voters at any regular or special district Substitute House Bill No. 6102
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meeting unless such petition was circulated by a voter eligible to vote in
such district.
(c) Whenever the officers of such district vote to terminate its
corporate existence and whenever a petition signed by ten per cent of
the total voters of such district or twenty of the voters of such district,
whichever is less, applying for a special meeting to vote on the
termination of the district is received by the clerk, the clerk shall call a
special meeting of the voters of such district, the notice of which shall
be signed by the officers thereof, by advertising such notice in the same
manner as provided in section 7-325 of the general statutes. Not later
than twenty-four hours before any such meeting, two hundred or more
voters or ten per cent of the total number of voters, whichever is less,
may petition the clerk of the district, in writing, that a referendum on
the question of whether the district should be terminated be held in the
manner provided in section 7-327 of the general statutes. If, at such
meeting, a two-thirds majority of the voters present vote to terminate
the corporate existence of the district, or, if a referendum is held, two-
thirds of the voters casting votes in such referendum vote to terminate
the corporate existence of the district, the officers shall proceed to
terminate the affairs of such district. The district shall pay all
outstanding indebtedness and turn over the balance of the assets of such
district to the city in which the district is located, if the legislative body
of the city authorizes such action. No district shall be terminated under
this section until all of its outstanding indebtedness is paid unless the
legislative body of the city in which the district is located agrees in
writing to assume such indebtedness. On completion of the duties of the
officers of such district, the clerk shall cause a certificate of the vote of
such meeting to be recorded in the land records of the city in which the
district is located and the clerk shall notify the Secretary of the Office of
Policy and Management.
(d) (1) (A) Except as provided in subparagraph (B) of this subdivision, Substitute House Bill No. 6102
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for the purposes of voting at meetings held by such district, any tenant
in common of any interest in real property shall have a vote equal to the
fraction of such tenant in common's ownership of such interest. Any
joint tenant of any interest in real property shall vote as if each such
tenant owned an equal fractional share of such real property. A
corporation shall have its vote cast by the chief executive officer of such
corporation, or such officer's designee. Any entity that is not a
corporation shall have its vote cast by a person authorized by such entity
to cast its vote.
(B) The district shall not have a vote for any interest in real property
within the district owned by such district.
(2) No holder of record of an interest in real property within the
district shall be precluded from participating in any district meeting or
referendum because of the form of entity that holds such interest,
whether such holder of record is (A) a corporation, partnership,
unincorporated association, trustee, fiduciary, guardian, conservator or
other form of entity, or any combination thereof, or (B) an individual
who holds interests jointly or in common with another individual or
individuals, or with any one or more of the entities listed in
subparagraph (A) of this subdivision.
(e) Notwithstanding any provision of the general statutes, the district
shall have the power to assess, levy and collect benefit assessments upon
the land and buildings in the district that, in the judgment of such
district, are benefited by the improvements.
(f) (1) Notwithstanding any provision of the general statutes, the
district shall have the power to fix, revise, charge, collect, abate and
forgive reasonable taxes, fees, rents and benefit assessments, and other
charges for the cost of the improvements, financing costs, operating
expenses and other services and commodities furnished or supplied to
the real property in the district in accordance with the applicable Substitute House Bill No. 6102
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provisions of the general statutes that apply to districts established
under section 7-325 of the general statutes, and this section and in the
manner prescribed by the district. Notwithstanding any provision of the
general statutes, the district may pay the entire cost of any
improvements, including the costs of financing such improvements,
capitalized interest and the funding of any reserve funds necessary to
secure such financing or the debt service of bonds or notes issued to
finance such costs, from taxes, fees, rents, benefit assessments or other
revenues and may assess, levy and collect said taxes, fees, rents or
benefit assessments concurrently with the issuance of bonds, notes or
other obligations to finance such improvements based on the estimated
cost of the improvements prior to the acquisition or construction of the
improvements or upon the completion or acquisition of the
improvements.
(2) Notwithstanding any provision of the general statutes, whenever
the district constructs, improves, extends, equips, rehabilitates, repairs,
acquires or provides a grant for any improvements or finances the cost
of such improvements, such proportion of the cost or estimated cost of
the improvements and financing thereof as determined by the district,
may be assessed by the district, referred to in this section as "benefit
assessments", in the manner prescribed by such district, upon the
property benefited by such improvements and the balance of such costs
shall be paid from the general funds of the district. The district may
provide for the payment of such benefit assessments in annual
installments, not exceeding twenty, and may forgive such benefit
assessments in any single year without causing the remainder of
installments of benefit assessments to be forgiven. Benefit assessments
to buildings or structures constructed or expanded after the initial
benefit assessment may be assessed as if the new or expanded buildings
or structures had existed at the time of the original benefit assessment.
For the purposes of this section, the provision of open space, whether
within the district or in the city of West Haven, shall be deemed a benefit Substitute House Bill No. 6102
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to all the property in the district.
(3) In order to provide for the collection and enforcement of its taxes,
fees, rents, benefit assessments and other charges, the district is hereby
granted all the powers and privileges with respect thereto as districts
organized pursuant to section 7-325 of the general statutes, and as held
by the city of West Haven or as otherwise provided in this section. Such
taxes, fees, rents or benefit assessments, if not paid when due, shall
constitute a lien upon the premises served and a charge against the
owners thereof, which lien and charge shall bear interest at the same
rate as delinquent property taxes. Each such lien may be continued,
recorded and released in the manner provided for property tax liens and
shall take precedence over all other liens or encumbrances, except that
any such lien of the district shall be subordinate to any lien for taxes,
blight, sewer user fees or any other amounts due and owing to the city
of West Haven or any political subdivision of said city and any fire
district operating within the limits of said city as a collector of such
taxes, user fees or amounts. Each such lien may be continued, recorded
and released in the manner provided for property tax liens.
(4) The budget, taxes, fees, rents, benefit assessments and any other
charges of the district of general application shall be adopted and
revised by the board at least annually no more than thirty days before
the beginning of the fiscal year in accordance with the procedures to be
established by the board at a meeting called by the board, assuring that
interested persons are afforded notice and an opportunity to be heard.
The board shall hold at least two public hearings on its schedule of fees,
rates, rents, benefit assessments and other charges or any revision
thereof before adoption, notice of which shall be delivered to the mayor
and city council of the city of West Haven and be published in at least
two newspapers of general circulation in the city of West Haven at least
ten days in advance of the hearing. Not later than the date of the
publication, the board shall make available to the public and deliver to Substitute House Bill No. 6102
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the mayor and the city council of the city of West Haven the proposed
schedule of fees, rates, rents, benefit assessments and other charges. The
procedures regarding public hearing and appeal provided by section 7-
250 of the general statutes shall apply for all benefit assessments made
by the district except that the board shall be substituted for the water
pollution control authority. If the benefit assessments are assessed and
levied prior to the acquisition or construction of the improvements, the
amount of the benefit assessments shall be adjusted to reflect the actual
cost of the improvements, including all financing costs, once the
improvements have been completed, provided the actual cost is greater
than or less than the estimated costs. If the benefit assessments are
assessed and levied after the acquisition or construction of the
improvements, the amount of the benefit assessments shall reflect the
actual cost of the improvements, including all financing costs, and such
costs may be included in the bonds or budget of the district, as
determined by the board. Benefit assessments shall be due and payable
at such times as are fixed by the board, provided the district shall give
notice of such due date not less than thirty days prior to such due date
by publication in a newspaper of general circulation in the city of West
Haven and by mailing such notice to the owners of the property
assessed at their last-known address.
(g) (1) (A) Notwithstanding any provision of the general statutes,
whenever the district has authorized the acquisition or construction of
the improvements or has made an appropriation therefor, the district
may authorize the issuance of up to forty million dollars of bonds, notes
or other obligations to finance the cost of the improvements, the creation
and maintenance of reserves required to sell the bonds, notes or
obligations and the cost of issuance of the bonds, notes or obligations,
except that, until such time the district enters into an interlocal
agreement with the city of West Haven to share said city's revenue from
incremental increase in real property taxes on property within the
district, in accordance with the procedures provided by section 7-339c Substitute House Bill No. 6102
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of the general statutes, including at least one public hearing on the
proposed agreement and ratification by the city council of said city, no
bonds secured by a pledge of revenues derived from the interlocal
agreement shall be issued. The bonds, notes or other obligations may be
secured as to both principal or interest by (i) the full faith and credit of
the district, (ii) fees, revenues or benefit assessments, or (iii) a
combination of subparagraphs (A)(i) and (A)(ii) of this subdivision.
Such bonds, notes or obligations shall be authorized by resolution of the
board.
(B) Not less than sixty days prior to the issuance of any bonds, the
district shall notify the mayor of the city of West Haven, the Secretary
of the Office of Policy and Management and the State Treasurer of the
district's intent to issue such bonds and shall include with such notice
(i) an analysis of the method by which the district proposes to fund such
bonds, including, but not limited to, providing for taxes, fees, rents,
revenue sources and assessments and other charges of the district; (ii)
an explanation of the district's investment strategic plan for such bonds;
(iii) a three-year district budget and financial plan, including the major
assumptions and plan of finance for such bonds; (iv) documentation of
the district's authorization of the issuance of such bonds, including, but
not limited to, a certified copy of the resolution authorizing the issuance
of such bonds, the vote on such resolution, the minutes of the meeting
at which such vote was taken and an opinion of nationally recognized
bond counsel as to the due authorization of the issuance of such bonds;
(v) documentation that the district has complied with the provisions of
this subsection and subsections (b) and (f) of this section; (vi) the
methodology used and assumptions that will be utilized to calculate the
necessary assessment for the defeasance of such bonds; (vii) a draft
official statement with respect to the issuance of such bonds; (viii) a copy
of the interlocal agreement between the district and the city of West
Haven; (ix) a copy of the district's audited financial information and
balance sheet and of the auditor's report and full findings; and (x) such Substitute House Bill No. 6102
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other information and documentation as reasonably required and
requested by the mayor, the Secretary of the Office of Policy and
Management or the State Treasurer to carry out the provisions of this
section, provided (I) the mayor, the secretary or the State Treasurer
requests such other information and documentation not later than sixty
days after the district's provision of the notice described in this
subparagraph, and (II) such other information and documentation is
submitted not later than two days after such request. After the
conclusion of the sixty days set forth in this subparagraph, the district
shall issue bonds in accordance with the provisions of this section.
(C) The district is authorized to secure such bonds by the full faith
and credit of the district or by a pledge of or lien on all or part of its
revenues, fees or benefit assessments. The bonds of each issue shall be
dated, shall bear interest at the rates and shall mature at the time or
times not exceeding twenty years from their date or dates, as
determined by the board, and may be redeemable before maturity, at
the option of the board, at the price or prices and under the terms and
conditions fixed by the board before the issuance of the bonds. The
board shall determine the form of the bonds, and the manner of
execution of the bonds, and shall fix the denomination of the bonds and
the place or places of payment of principal and interest, which may be
at any bank or trust company within the state of Connecticut and other
locations as designated by the board. In case any officer of the district
whose signature or a facsimile of whose signature shall appear on any
bonds or coupons shall cease to be such an officer before the delivery of
the bonds, the signature or facsimile shall nevertheless be valid and
sufficient for all purposes the same as if such officer had remained in
office until the delivery.
(2) While any bonds or notes issued by the district remain
outstanding, the powers, duties or existence of the district shall not be
diminished or impaired in any way that will affect adversely the Substitute House Bill No. 6102
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interests and rights of the holders of the bonds or notes. Bonds or notes
issued under this section, unless otherwise authorized by law, shall not
be considered to constitute a debt of the state of Connecticut or the city
of West Haven, or a pledge of the full faith and credit of the state of
Connecticut or the city of West Haven, but the bonds or notes shall be
payable solely by the district or as special obligations payable from
particular district revenues. Any bonds or notes issued by the district
shall contain on their face a statement to the effect that neither the state
of Connecticut nor the city of West Haven shall be obliged to pay the
principal of or the interest thereon, and that neither the full faith and
credit or taxing power of the state of Connecticut or the city of West
Haven is pledged to the payment of the bonds or notes. All bonds or
notes issued under this section shall have and are hereby declared to
have all the qualities and incidents of negotiable instruments, as
provided in title 42a of the general statutes.
(h) (1) The board may authorize that the bonds be secured by a trust
agreement by and between the district and a corporate trustee, which
may be any trust company or bank having the powers of a trust
company within the state of Connecticut. The trust agreement may
pledge or assign the revenues. Either the resolution providing for the
issuance of bonds or the trust agreement may contain covenants or
provisions for protecting and enforcing the rights and remedies of the
bondholders as may be necessary, reasonable or appropriate and not in
violation of law.
(2) All expenses incurred in carrying out the trust agreement may be
treated as a part of the cost of the operation of the district. The pledge
by any trust agreement or resolution shall be valid and binding from
time to time when the pledge is made; the revenues or other moneys so
pledged and then held or thereafter received by the board shall
immediately be subject to the lien of the pledge without any physical
delivery thereof or further act; and the lien of the pledge shall be valid Substitute House Bill No. 6102
Special Act No. 21-38 17 of 19
and binding as against all parties having claims of any kind in tort,
contract or otherwise against the board, irrespective of whether the
parties have notice thereof. Notwithstanding any provision of the
Uniform Commercial Code, neither this subsection, the resolution or
any trust agreement by which a pledge is created need be filed or
recorded except in the records of the board, and no filing need be made
under title 42a of the general statutes.
(i) Bonds or notes issued under this section are hereby made
securities in which all public officers and public bodies of the state of
Connecticut and its political subdivisions, all insurance companies, trust
companies, banking associations, investment companies, executors,
administrators, trustees and other fiduciaries may properly and legally
invest funds, including capital in their control and belonging to them;
and such bonds shall be securities which may properly and legally be
deposited with and received by any state or municipal officer or any
agency or political subdivision of the state of Connecticut for any
purpose for which the deposit of bonds or notes of the state of
Connecticut is now or may hereafter be authorized by law.
(j) Bonds may be issued under this section without obtaining the
consent of the state of Connecticut or the city of West Haven, and
without any proceedings or the happening of any other conditions or
things other than those proceedings, conditions or things that are
specifically required thereof by this section, and the validity of and
security for any bonds issued by the district shall not be affected by the
existence or nonexistence of the consent or other proceedings,
conditions or things.
(k) The district and all its receipts, revenues, income and real and
personal property, except when such property is used for commercial
purposes, shall be exempt from taxation and benefit assessments and
the district shall not be required to pay any tax, excise or assessment to
or from the state of Connecticut or any of its political subdivisions. The Substitute House Bill No. 6102
Special Act No. 21-38 18 of 19
principal and interest on bonds or notes issued by the district shall be
free from taxation at all times, except for estate and gift, franchise and
excise taxes, imposed by the state of Connecticut or any political
subdivision thereof, provided nothing in this section shall act to limit or
restrict the ability of the state of Connecticut or the city of West Haven
to (1) tax the individuals and companies, or their real or personal
property, or any person living or business operating within the
boundaries of the district, or (2) enforce any lien, fee, ordinance or future
lien, fee or ordinance.
(l) The board shall at all times keep accounts of its receipts,
expenditures, disbursements, assets and liabilities, which shall be open
to inspection by a duly appointed officer or duly appointed agent of the
state of Connecticut or the city of West Haven. The fiscal year of the
district shall begin on July first and end on the following June thirtieth
or as otherwise established by section 7-327 of the general statutes. The
district shall be subject to an audit of its accounts in the manner
provided in the general statutes.
(m) (1) The clerk of the district shall submit project activity reports
quarterly to the Secretary of the Office of Policy and Management and
to the chairpersons of the joint standing committee of the General
Assembly having cognizance of matters relating to finance, revenue and
bonding. Such reports shall provide information and updates on the
projects undertaken by the district, including the status of the design,
financing, construction, sales of commercial and residential property
and such other items as the secretary or chairpersons may request.
(2) The district shall take affirmative steps to provide for the full
disclosure of information relating to the public financing and
maintenance of improvements to real property undertaken by the
district. Such information shall be provided to any existing residents
and to all prospective residents of the district. The district shall furnish
each developer of a residential development within the district with Substitute House Bill No. 6102
Special Act No. 21-38 19 of 19
sufficient copies of such information and provide each prospective
initial purchaser of property in such district with a copy, and any
developer of a residential development within the district, when
required by law to provide a public offering statement, shall include a
copy of such information relating to the public financing and
maintenance of improvements in the public offering statement.
(n) (1) This section shall be deemed to provide an additional,
alternative and complete method of accomplishing the purposes of this
section and exercising the powers authorized hereby and shall be
deemed and construed to be supplemental and additional to, and not in
derogation of, powers conferred upon the district by law and
particularly by sections 7-324 to 7-329, inclusive, of the general statutes;
provided insofar as the proceedings of this section are inconsistent with
any general statute or special act, or any resolution or ordinance of the
city of West Haven, this section shall be controlling.
(2) Except as specifically provided in this section, all other statutes,
ordinances, resolutions, rules and regulations of the state of Connecticut
and the city of West Haven shall be applicable to the property, residents
and businesses located in the district. Nothing in this section shall in any
way obligate the city of West Haven to pay any costs for the acquisition,
construction, equipping or operation and administration of the
improvements located within the district or to pledge any money or
taxes to pay debt service on bonds or notes issued by the district except
as may be agreed to in any interlocal agreements executed by the city of
West Haven and the district.
(o) This section being necessary for the welfare of the city of West
Haven and its inhabitants shall be liberally construed to affect the
purposes hereof.