Hartford council OKs agreement with Broan-NuTone

By JOE VANDELAARSCHOT - Daily News Staff

Jan. 24, 2018

A semitruck is seen pulling out of Broan-NuTone on Tuesday afternoon in Hartford.
John Ehlke/Daily News

HARTFORD — In September, the city’s Common Council approved the creation of new Tax Incremental Finance District No. 11 covering about 39 acres on the city’s northwest side. The creation of the new district was prompted to aid Broan-NuTone as it completes a major expansion of its facilities within that district.

On Tuesday night, during their regular monthly meeting at City Hall, aldermen unanimously approved a memorandum of understanding between the two parties that puts in writing certain conditions for managing the new TIF District through the 20 years it will exist.

“Per the terms of the MOU the city will disperse 60 percent of the increment (increase in property taxes due to improvements in the district) created by the (newly expanded) Broan distribution center and other accessible property improvements back to Broan-NuTone on an annual basis for 20 years,” said City Planner Justin Drew. “The city will receive 40 percent of those funds to use for possible improvements within the district.”

Drew said Broan-NuTone wanted the agreement so “they could show they have a guaranteed revenue stream to help pay for the costs for the project and for additional equipment.”

“They also wanted a guarantee that the TIF District would remain open for the entire 20 years so they would receive its full benefit,” Drew said.

A TIF district uses additional property taxes generated within its borders through increased economic development to pay for building infrastructure such as sewer and water, storm water management, roads, access to electricity and natural gas as well as other improvements needed to spur development.

The city has discussed using some of the TIF funds to build a new bridge on North Wacker Drive, construct a new water main in the area and complete some other needed work.

Construction on Broan-NuTone’s project began in September. It involves creating a 140,000-square-foot addition to the company’s complex along Madison Drive. The city and consultants have estimated the new TIF District could generate an additional $5.9 million in tax revenue during the 20 years it will exist.

Broan-NuTone officials have told city leaders the project and a proposed office addition could not have taken place without the implementation of the new TIF district. The development of the project for expanded manufacturing use requires a major capital investment beyond the financial capability of Broan-NuTone, Drew said earlier.

“The proposed addition is for new offices, a conference room and restrooms as well as a new lab and test space,” Drew said. “The anticipated result will be a model, high tech industrial facility offering higher employment and a larger property valuation than would have been possible under any other land use.”

Alderman Roger Randolph said he thought the agreement was “a great move.” Other members of the Council agreed.

City officials said earlier the company already averages about 350 trucks each day at the facility and after the expansion and other changes are completed that number will increase.

Drew said normally an MOU is followed by a full-fledged development agreement.

“However, in this case, the MOU is comprehensive for the purposes of the projects undertaken by Broad and the incentive provided by TIF 11 and a development agreement is not needed,” Drew said.

<<EARLIER: Site plan OK’d for office addition at Broan-NuTone in Hartford

<<EARLIER: Hartford Common Council approves creating new TIF district

<<EARLIER: Permit approved for expansion