The Assignment
GOMAN+YORK, on behalf of the Town of West Hartford, reviewed a proposal and request for a real property tax abatement (per Sec. 12-65b C.G.S. and hereafter referred to as tax abatement) by a developer submitted to the Town in connection with its proposed purchase and redevelopment of certain portions of the property currently known as 27 Park Road and 14 Ringgold Street, West Hartford, Connecticut (the “Property” or ”One Park”). The Developer requested a tax abatement and GOMAN+YORK evaluated the costs and benefits to the Town of providing one.
Additionally, GOMAN+YORK conducted its own, independent financial modeling analysis of the proposed development, informed by industry-standard metrics and our proprietary research. The general approach of our methodology is to make conservative assumptions, given the high-risk nature of real estate development and market uncertainty.
Services Provided
- A review of the development cost pro forma and any related information, as provided by the Town of West Hartford,
- A review of the pro forma Operating Statement for the completed project, as provided by the developer or the Town of West Hartford. In the absence of pro forma operating information, G+Y will provide our best estimate of Net Operating Income for purposes of project valuation,
- Creating a valuation analysis of the completed project, based upon the available information,
- Estimating the costs to the Town of providing a tax abatement,
- Assessing the impact of the 20% affordable housing requirement,
- Estimating the net increase in property taxes that the Town can reasonably expect to receive from the new development,
- Estimating the anticipated impact on the assessed value of properties surrounding the new development and the resultant increase in property taxes.