From Brian Lockhart, CT Post:
Mayor Bill Finch’s administration hopes by late summer to have persuaded a majority of the 20-person City Council to finally back a controversial tax-credit deal for mixed-income housing promoted as revitalizing the East Side.
After wrangling at the committee level for most of this year, the full council last month dealt an at least temporary, but stunning loss to Finch, barely shooting down a 35-year tax break for Phase 2 of the JHM Group’s ambitious, high profile 177-unit development.
Once Finch cooled off–he was subsequently accused of angrily approaching two of the “no” votes after the council meeting and briefly grabbing one by the back of his neck–the administration got to work trying to salvage the project.
At stake, according to David Kooris, the mayor’s economic development chief, is around $10 million in state housing funds conditionally awarded Stamford-based JHM.
Full story here.
What is with this guy Finch?
Let’s see, more low-cost housing means more Section 8 people who don’t want to be Section 8, but they will be dumped there. That’s more taxes for me and you, more social services etc. It’s actually more B.S. from that “visionary” Finch, our own Helen Keller.
G.E., please rent a circus train, a long one, so we all can go with you.
Finch, we promise to leave the clown car for you and your driver Timpanelli, you guys can continue to drive in circles where it’s vacant and you won’t hurt yourselves. Try Steal Point.
I will guarantee you these buildings will not be standing in 35 years. The contractor is getting $10 million from the state and 35 years tax break from us. Great.
What is the actual abatement? I can’t know if it is a bad deal unless I know numbers. I am not opposed to giving a long abatement. Who in hell is going to build in that part of B’port for the honor of paying the outrageous mil rate in this city?
Tax abatements = reduced tax payments to the city. This developer has state tax credits, minority business grants, guaranteed federal income via section 8 rents, and now they want full use of city services for reduced tax payments also, this developer is not going to walk away from this project. We gave them 60 years on another project. I too understand incentives to develop in struggling urban areas, but must we give anyone this much of our tax dollars, state, local and federal?
Right now the city is getting ZERO. What is the alternative? If there is something better, I am all for it. That part of the city currently looks like something from a dystopian sci-fi movie.
The alternative is–how about 10 years? That seems reasonable.
Fifteen years sounds reasonable. Thirty-five, omg.
Corporate welfare is a term that analogizes corporate subsidies to welfare payments for the poor. The term is often used to describe a government’s bestowal of money grants, tax breaks, or other special favorable treatment on corporations or selected corporations, and implies that corporations are much less needy of such treatment than the poor. The term is used interchangeably with crony capitalism; to the extent that there is a difference, the corporate welfare might be restricted only to direct government subsidies of major corporations, excluding tax loopholes and all manner of regulatory and trade decisions, which in practice could be much larger than any direct subsidies. The term, “Corporate Welfare” was reportedly invented in 1956 by Ralph Nader; conservatives like Grover Norquist prefer “Crony capitalism.”
This is the same developer who has Malloy in his back pocket. His company was given the $500 million Stamford train station deal.
There is big money in the “transit-oriented” redevelopment of Bridgeport into the super worker dormitory of Fairfield County serving the Gold Coast.
Where did this plan come from, and who are its architects? With whom does JHM rub elbows down-county?
If Jim Himes, Richard Blumenthal and Dan Malloy think it’s good for the Gold Coast to pack housing and put a train station in the East Side of Bridgeport and their dear friend JHM deserves to make some campaign-donation money/political-job positions from the deal, it will pass the Bridgeport Council via a comfortable majority vote.
Why don’t we open that area up to bring in industry that not only will pay taxes but supply jobs?
What kind of industry? I’m sure if Google wants to move their corporate headquarters there, Finch will okay it.
Who wouldn’t?
So a developer gives Finch $4000 for his campaign, in return, with a wink and a nod, Finch has to get this deal through council as a “thank you” to McClutchy. When the council surprisingly voted it down, Finch, so irate, marched right down and confronted Mr. Castillo, putting his hand around his neck in anger. So now we’re to believe Finch cares so much about those people who will move in there, resulting in his assault of a council person??? Come now, Finch cares more about making McClutchy satisfied, he could give a s**t about anything else. Pay-to-play is alive in Bpt!
Exactly.
Jennifer and Harvey, just so I understand the anti-Finch rhetoric, you two believe Finch is a pay-to-play administration and he is paying this developer back with a 35-year tax abatement. Would that be a correct assessment? The developer gave $4000 to the Finch campaign and this 35-year tax abatement is payback? Honestly, are you two idiots? If this were true, I would have to support Joe Ganim for being so much smarter in that he was going to get $500,000 for Steelpointe. You’d have to give me 25 times that amount to get a 35-year abatement. This is so absurd that idiot is the only word I can think of to describe your belief system. If this were true, I would have to believe Finch is a moron! He is not!
Steve, the $4000 contribution is what is public record, obviously for a developer to give that much money to a candidate there is a relationship there, who knows what else was given/promised to Finch? Surely you don’t want us to believe Finch was so angry at the outcome of the vote, causing him to physically assault a councilperson, because he really cares about the people who would benefit from the development, do you? If you believe that, idiot is the only word I can describe your belief system. Steve, take a step back and look at it. Finch assaulted a councilperson because a vote didn’t go his way for God’s sake. What if the next vote gets shot down? There’s no telling what might happen, as sad as this may sound, I hope there is a few more police in the chambers that night just in case.
Harvey, it is very disturbing to make the accusations you are making. Harvey, you are attempting to create a narrative that is sad. If I thought Finch were a thief I wouldn’t be supporting him. I do not think he is. Any major developer gives a donation without some special consideration. I wouldn’t call that a pay to play. This project will improve the area, bring in life, clean up derelict properties and bring future development. This is the big picture you are not considering. Do you think any mayoral candidate is not talking to donors? Really?? Is Finch saying if you do not contribute to my campaign you will not be able to develop? Get with the program!
Harvey, it should also be noted developers will give money to a campaign when they believe in the leadership and do not want to change it. It is plain and simple. Are any developers current or future contributing to Ganim and Foster? At this point, mentioning any other candidate is just not worth it.
Steve,
So you are an expert on finances when it comes to campaigns but only care about the number of years for an abatement. What are the guts of the deal we, the City of Bridgeport Council is being asked to approve? If it starts at 33% of what the tax would otherwise be and increases by 3% per year what does that look like over time? What if the base rate of inflation increases, does the 3% sit on top or ignore the base rate?
If the land right now is paying no taxes I understand but then the police and fire are not often called out to provide services for that land, and there is no education required. What is the overall sense? What are all the details that affect Bridgeport, to say nothing of all the assembled goody bag of benefits from the State and tax authorities? Will they be disclosed before a vote is requested again? Time will tell.
JML, I am no expert when it comes to campaign finances. I do believe this is a good project for the neighborhood and may get the ball rolling for future interest in the underserved, litter-strewn, high-unemployment neighborhood. Let there be hope and energy and construction workers. Let the council approve a more realistic abatement. I totally support an abatement for this project. I am an expert in one thing. You do not have money for a campaign? You are done! I am sure the developer would agree to less than 35 years, if not tell him to fuck off, thank you and try another town. We do need housing, we do need to clean up that area. I go through that area weekly, not just for the schools but I visit St. Michaels and Habitat for Humanity. You bloggers need to stop being an obstacle to every attempted project in the city. People deserve to live in nice apts. and the slumlords need to go, especially the absentee landlords.
I am hopeful the Mayor will come back with a more reasonable plan the council can support. Coming back with the same 35-year abatement will not fly.
Honestly! Doesn’t anyone else see the bigger picture for future development, jobs and taxes or do we just stop all projects and expect our taxes to go down without development? That in a nutshell is one of the biggest problems with the Foster campaign and look at her advisers, sad and Ganim really? What in hell can he really say about this project? Who really loses here? We all do! Even those who wouldn’t step foot in that neighborhood. If we all embraced the entire city we would realize how important it is to clean up and build up the neighborhoods to attract development.
Does anyone on this blog support the Habitat for Humanity resale store? Or any business on Stratford Ave?
Ron Mackey, do you honestly believe this is not a plus for the neighborhood or are you just upset with the outrageous abatement??? Who is fighting for these underserved people who are dismissed and marginalized? Just WHAT would JESUS do! Ask yourself!
“Does anyone on this blog support the Habitat for Humanity resale store?”
ReStore, you mean. Yes.
Thanks Pete. I am glad some people do!
The tax abatement is not the issue nor should it be viewed as anti-Finch. It’s the length of the abatement that is unreasonable, and hopefully will not be approved. I’ve voted to approve many tax abatements while serving on the Council, and I’ve voted against some I felt were not appropriate. This particular proposal should be questioned.
Very interesting quote in the latest article in the Post discussing the “boot and tow” operations in Bpt.. Councilwoman Martinez says about the Finch admins, and I quote, “They don’t want nothing to be looked at” in response to Finch having Anastasi stonewall the towing procedures inquiry. Very interesting indeed. Gee, why don’t the admins want “nothing to be looked at”???
This is the most corrupt, dishonest, unscrupulous, dishonorable, unprincipled, unethical, amoral, untrustworthy, venal, underhanded, double-dealing, fraudulent, bribable, criminal, illegal, unlawful, nefarious; shady, dirty, sleazy administration in the history of Bridgeport, bar none!
Jimfox // Jun 7, 2015 at 9:03 pm
Kissing Lydia Martinez’ ass and hoping for a yes vote! When Finch and Hamilton Burger return with the 170 units of housing on the East Side.
Blumie cashes those same checks in Stamford as well as Mayor Finch. The Queen of the ABs will sell her City Council vote for a parking lot, while she taxes the BBOE with overcrowding and undertaxing this city for the next 40 years! Just watch how fast she’ll switch her vote now, folks!
Really Fox–ironic really, a Ganim spokesman! Does it get any more embarrassing? Mario Testa said Finch was squeaky clean. That is impressive from a longtime friend of GANIM!
That’s like asking Willy Sutton if Bernie Madoff is a good investor. Really!
Bill Finch needs this deal and he doesn’t care if his effort fails, he owes those who have donated to his campaign and for the positions he has promised. If he fails in changing the vote outcome he is in the same position as Gov. Malloy, he’s looking and hoping to get a job in DC if the Democrats keep the White House. Finch won’t do the right thing because he has nothing to lose.
This tax incentive has CORRUPTION written all over it. Who will be getting the under-the-table money for this one? I’ll give you a clue, first letter of the last name is F and the last letter is H.
Let’s assume for a moment there is no pay-to-play involved at any step in this deal. Let’s look at it just as an investor with an opportunity. Of the total to be invested, what percentage of the entire deal is being put in by said investor, after accounting for land acquisition, loan incentives, tax credits, property tax rebates, and other fiscal advantages flowing from governmental bodies rather than traditional financial organization in private industry? Why are the citizens of Bridgeport being asked to support the majority of City expenses for these residences in the development for so many years into the future in the name of “economic development” when if we were asked one by one whether we wished to invest or subsidize we would likely say NO. Is housing the priority at this moment over qualified instructors in classrooms for instance? The Mayor has shown no attraction to trying to solve those types of serious questions in over seven years in office though had he, he might have the renown he seeks by using the empty phrase “things are getting better every day.” Where are the numbers and lists of City abatements that exist at this time? How much money has been forgiven by Councils through the years? Where is the info on housing needs in the City for City residents (rather than those who are being attracted by the presence of newer units as they become available)? Has anyone taken a look at what housing changes do to local families and especially to the children where as many as 30-40% may be new to a school in a given year? Don’t families and kids need to grow roots to feel secure in a home, to be known in a neighborhood, to establish relationships with adults in schools, businesses and houses of worship? Where is sustainability if certain residents are asked to shoulder their own 100% plus the portion abated by developers from out of town? Time will tell.
BR, it’s the administration’s responsibility to go find willing industries and lure them in, but that would take smarts, vision and a plan. Like the dozen or so industries that have made Shelton home in the last couple years.