SB 1110 — AN ACT AMENDING THE CONVEYANCE OF PARCELS OF STATE LAND TO THE NEW HAVEN PORT AUTHORITY.

Senate GeneralBill Assembly File No.

7401110 JanuaryPublic Session,Act 2021 Senate Bill No.

111021-146 Senate,AN MayACT 27,AMENDING 2021THE TheCONVEYANCE CommitteeOF onPARCELS GovernmentOF AdministrationSTATE andLAND ElectionsTO reportedTHE throughNEW SEN.HAVEN PORT AUTHORITY.

FLEXER of the 29th Dist., Chairperson of the Committee on the part of the Senate, that the bill ought to pass.

AN ACT AMENDING THE CONVEYANCE OF PARCELS OF STATE LAND TO THE NEW HAVEN PORT AUTHORITY.

Both parcels are further identified as SB1110the /parcels of land described in Department of Transportation File No.Number 92-932-37A.

740 1 SB1110 File No.

740 the parcels of land described in Department of Transportation File Number 92-932-37A.

(b)Senate TheBill NewNo. Haven Port Authority shall use said parcels of land for economic development purposes.

1110 (b) The New Haven Port Authority shall use said parcels of land for economic development purposes.

ThisVetoed actJuly shall13, take2021 effectPublic asAct followsNo. and shall amend the following sections:

Section21-146 12 fromof passage2 PA 18-154, Sec.

6 GAE Joint Favorable SB1110 / File No.

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740 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 22 $ Resources of the Special Transportation Fund TF - Revenue Up to Loss $245,000 Department of Transportation TF - Cost Potential Significant Note:

TF=Transportation Fund Municipal Impact:

Municipalities Effect FY 22 $ New Haven See Below See Below Explanation The bill modifies a conveyance of land from the Department of Transportation (DOT) to the New Haven Port Authority (PA 18-154 section 6) and results in significant costs to the DOT, along with potential cost reduction to the New Haven Port Authority.

The bill would reduce the cost of the conveyance from fair market value (approximately $245,000 based on the appraisals conducted for the original 2018 conveyance) by the "costs for investigating and remediating environmental contamination" on the related land, which has several fiscal impacts.

Preliminarytestingisanticipatedtocostapproximately$20,000.Prior to the testing, the level of remediation necessary to fulfill the requirements of the bill is unknown.

Costs to DOT, and/or the reduction of revenue from the sale of such property, for the required SB1110 / File No.

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740 remediation are likewise unknown, but are potentially significant.

For example, the State regularly provides grants up to $2 million per project for brownfield remediation.

If investigation and remediation costs are less than the fair market value of the property, any cost incurred under the terms of the conveyance would result in a loss of one-time revenue to the Special Transportation Fund and a decrease in cost to the New Haven Port Authority.

Under the modified terms of the conveyance, it is unclear whether DOT would be required to incur costs of remediation beyond the fair market value of the property.

If allowed, investigation and remediation costs beyond fair market value would potentially increase costs to DOT.

Additionally, the land in question was originally obtained using federal funds;

DOT agreements with the Federal Highway Administration (FHWA) require that such sites be sold at fair market value, with proceeds of the sale deposited in the Special Transportation Fund.

To the extent the FHWA does not approve of a modified agreementtoallowconveyanceofthelandatlessthanfairmarketvalue, DOT would be required to reimburse the FHWA for a portion of the current value, resulting in an unknown cost to DOT.

The bill also modifies the conveyance to require the land to be used for economic development purposes and allows lease of the land for the same purpose.

The asset would revert to state control if the recipient does not use the land for specified purposes.

Reversion to state control would mitigate the loss of asset allowed by the original conveyance.

SB1110 / File No.

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740 OLR Bill Analysis SB 1110 AN ACT AMENDING THE CONVEYANCE OF PARCELS OF STATE LAND TO THE NEW HAVEN PORT AUTHORITY.

SUMMARY This bill amends section 6 of PA 18-154, which required the Department of Transportation to convey two parcels of land in New Haven, totaling 0.69 acres, to the New Haven Port Authority for their fair market value plus administrative costs.