Renzullo’s tax lien offer sent back to the drawing board

WINSTED — After a 40-minute discussion at a meeting on Monday, Aug. 1, the Board of Selectmen decided to reject Selectmen Michael Renzullo’s offer to purchase tax liens on the old Capitol Products building.Renzullo, who recused himself from the discussion, leads the nonprofit organization Laurel City Revamp.The organization purchased the long-vacant Capitol Products building at 35 Willow St. through a quitclaim deed.At a previous selectmen’s meeting, Renzullo offered the town $25,001 to purchase the town’s tax liens on the property.The now defunct Capitol Products company has owed the town $84,203 in back property taxes since 2004.At the previous selectmen’s meeting, the board directed Town Attorney Kevin Nelligan to draft an agreement between the town and Laurel City Revamp concerning the tax liens.In response to the draft agreement written by Nelligan, attorney Patsy Renzullo, who is also Michael Renzullo’s father and is representing Laurel City Revamp, sent a letter to Nelligan that the agreement drafted by Nelligan is unacceptable.“[The organization] has offered $25,000 for the town’s uncollectable tax liens of approximately $85,000, period,” Patsy Renzullo wrote in his letter. “Although a mortgage to secure the $25,000 payment would be acceptable, due in 36 months, the mortgage can contain no provisions for interest, default or otherwise, or contain other conditions, such as rigid deadlines for completion of the project, because at this stage the date is impossible to accurately predict.”Patsy Renzullo added that there are many factors still up in the air concerning the project, including limitations on rehabilitation loans, building inspection provisions, the structure of future financing for the project and whether the property is currently in violation of town regulations, codes and ordinances. Patsy Renzullo then sent a revised agreement back to Nelligan for both him and the selectmen to review.At Monday’s meeting, Mayor Candy Perez said that Nelligan’s draft agreement and Patsy Renzullo’s draft agreement were very different from one another.“I think each side wants to have something to happen,” Perez said. “We all want things to move [on the property]. We have not had anybody come forward.”Selectman George Closson said that he also is in favor of the project moving forward, but that any agreement on purchasing the town’s tax liens should be tabled until both Laurel City Revamp and representatives of the town could meet and iron out any differences to come up with a suitable agreement.“I would like to take back what we received from Renzullo’s office and send it over to the town manager and get representatives from each political side to negotiate,” Closson said. “We should have the objective of making this agreement as a model and precedent setting.”Selectman Lisa Smith said she thought Nelligan’s proposed agreement was acceptable and protected the town’s rights.Smith made a motion to accept Nelligan’s agreement, with Selectman Karen Beadle seconding.The board voted against Smith’s motion 4-2, with Smith and Selectman Ken Fracasso voting in favor of it while Perez, Closson, Beadle and Glenn Albanesius votied against it.

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