Selectmen request legal review and public hearing for proposed 60 Church Street PILOT; developers say agreement aids financing

The Hebron Board of Selectmen reviewed a proposed 30-year payment-in-lieu-of-taxes (PILOT) agreement requested by the Commons Community Development Corporation for a proposed development at 60 Church Street and voted to move the item forward with additional legal review and a public hearing.

The resolution read at the meeting invoked Connecticut General Statutes section 12-65b, the state law that authorizes local agreements for tax relief to support certain housing projects. Several members said the draft agreement they received the night of the meeting included improvements from earlier drafts but still contained wording they wanted clarified before final authorization.

One Selectman urged additional edits to payment schedules and limitation language in the draft, saying those sections were “vague” and should be tightened. Another Selectman said the public needed an opportunity to ask questions and recommended a public hearing to let residents raise project-specific concerns. A developer representative said a municipal endorsement and a signed local agreement would strengthen the project's competitive applications for state tax credits and grant funding. The representative added the PILOT is primarily a financing tool and that having a local agreement helps secure third-party financing.

After discussion, the board approved an amendment to the resolution directing the town manager to finalize and sign an agreement on behalf of the town following legal review and to schedule a public hearing so the community can review the final language. The board asked the town attorney to review and clear outstanding language issues identified by Selectmen before the hearing.

Why this matters: a PILOT or long-term tax abatement changes revenue timing for the town and can be a decisive factor in whether a development secures low-income housing tax credits or other competitive funding. Several board members said they supported the concept generally but wanted clearer contract language and a public question-and-answer session before final town-level approval.

The board also discussed alternative PILOT durations, noting 30 years is the maximum allowed by statute and that shorter terms (15——20 years) could be considered during negotiations if needed for taxpayer comfort. Town staff and the project team said they would work on revised language and return with the final documents and a public-hearing date.