Fitzsimmons said the project would include the separation of all utilities from the city’s municipal building. Both buildings were built in the mid 1970s.
If Middletown City Council approves the sale of the building and a 12-year, 100-percent Community Reinvestment Area tax abatement, the project would start construction during the first quarter of 2018 and be completed by Dec. 31, 2018.
The agreement would also get another empty building and property and their maintenance costs off of the city’s books and placed back into productive use.
Council will hear a first reading of both proposals at its meeting Tuesday, with final approval slated for its Dec. 5 meeting.
In the agreement, the city would agree to sell the property to the developer, and the developer agrees to purchase the property for the purchase price of $300,000. The developer will pay $50,000 in cash payable to the city simultaneously with delivery of the deed. The developer would be granted a credit in the amount of $250,000 against the remainder of the purchase prices for completing the project as described in the development and sale agreement.
Also as part of the agreement, the city would be required to pay the Middletown City School District 25 percent of what the district would have received had this tax abatement not been in place, this is required as a part of the Comprehensive School Compensation Agreement passed in December 2015.