Rnuagoapsaiii^ Town Urged to Start Sewage Plant

j 4 MANCHESTER HERALD, Wed,, March 9, 1983 A ra ise for owner? Small companies can profit by selling property, renting Soviets, Senators Supporters of hall Leasing a car rap Pentagon study elated by aid offer Is no hot deal By LeRoy Pope or owners of small corporations United Press International .. page 4 recognize the possibility of helping page 3 page 11 “When portions of both the corporation, and their NEW YORK — Many small and personal situation by such a middle-sized private companies net worth are tied up in property purchase, Abacus Group that need more operating funds will find them a mortgage loan. often are overlooking a ready reai estate, particuiariy Strauss warned it is necessary to asset, real estate with surplus proceed carefully in making such a value, says a Chicago mortgage reai estate which is sale and leaseback. investment expert. “ As a general rule, if the loan on In many cases it will pay these earning nothing, the the property is less than SO percent Continued cloudy; companies to sell the land and Manchester, Conn. company is overlook of the property’s value, it should be periods of rain buildings and rent them back in looked at closely in terms of Thurs., March 10, 1983 order to get capital. Jay J. Strauss, ing an important source refinancing," he said. “Jf the loan — See page 2 president of Abacus Group, said. to value ratio is 60 percent or more Single copy: 25<P Strauss said that just as the of revenue.” it could be left alone for a while iiattrhrBtPr H rralb home is the largest financial asset other than to rehrrange tax of most families, so company- situations.” owned real estate often is the When such a deal is made, largest asset of small Strauss said, the company will pay manufacturers. paid down so much that its surplus rent at such a level that the deal If the owner of the corporation value is an asset that is earning probably will have no appreciable can buy the real estate and lease it nothing for the company. effect on profit or loss. But the reql back to the business, he may The remaining 75 percent of estate then becomes a personal further benefit because the land smali and middle-sized corpora asset which entitles the owner to then becomes a personal asset on tions rent practically all the real take advantage of depreciation Town urged to start sewage plant which he can claim depreciation estate they use, he said. An and other personal tax benefit and other tax benefits, Strauss unincorporated business hasn’t the writeoffs that the real estate may said. same opportunity to benefit by offer. By Alex GIrelll not rigorou s ly en to rce il.s “ In some cases,” he said, "he selling its real property and Herald City Editor deadlines. can raise his salary with the renting it back. STRAUSS ALSO said the new corporation enough to cover the ”A typical smali American The town should start work on its The portion of the plant Jodaitis federal tax laws make such deals envisions building would provide interest payments on whatever he manufacturing company today sewage treatment plant improve more attractive to the company for a flow of 8.25 million gallons a borrows to buy the property, but he earns in the range of 15 to 22 owner who buys the property ments as soon as possible in order naust be able to show that his new percent on its net worth," he said. to get as much non-local funding as day compared to the 6.7 million because these laws allow much gallons a day of the present plant. higher salary is not excessive by “ When portions of net worth are more liberal depreciation on the possible and should plan to build the standards of the business the about 45 percent of it in a first Statistically that would serve an tied up in real estate, particularly buildings. A building that formerly company is engaged in.” added population of about 15,000. real estate which is earning had to be depreciated on a 50-year stage, Frank Jodaitis, head of the nothing, the company is overlook water and sewer department, told The cost of it would be $9 million or basis now can be depreciated in 15 $10 million. STRAUSS TOLD United Press ing an important source of years. the Conservation Commission International he believes perhaps Wednesday night. revenue." “ If it can be shown that mainte Its design year is 2000, that is, 25 percent of the small and nance of the business in a particu Building about half the plant designed for estimated sewage middle-sized corporations in the STRAUSS’S interest in this si lar area creates jobs, there also would give the town a facility loads of the year 2000. Jodaitis said United States have real property tuation is ' that of finding new may be an opportunity for the capable of doing everything the the town’s primary treatment that has appreciated so in value or mortgage investment opportuni owner to get tax-exempt financ plant should do except for remov plant was built in 1955 and its on which the mortgage has been ties for his clients. When the owner ing,” Strauss added. ing nitrogen from the effluent, the secondary plant about 15 years last step in sewage treatment. later. Thus is appears that 15 years And starting as early as possible is a standard. would give the town the best change to get the most state and If the town does not take action, Public Records federal funding in the shifting Jodaitis said, there is a good political picture of federal partici chance the DEP will issue a pation in the construction of moratorium against further Certificates of devise connections. property at 12B Ambassa topher A. Crowne, Notice of lease sewage treatment plants, Jodaitis Estate of George M. dor Drive. 31,619.14, indicated. The original estimate for the Last to Mable M. Last, 1 Seymour Kudlow to entire plant five year ago was $10 Internal Revenue Ser Bob Nichols Motorsports, The commission accepted Jodai- property at 48 Salem Release of lien vice releasing Douglas tis’s estimate of the situation and Herald pholo by Torqulnlo million. Now it has grown to $20 Road. premises at 681 Main St. million. Internal Revenue Ser and Elaine Russell, 115 Voted to urge the adminstration Elstate of Ethel P. Arm for five years from Feb. 1 FRANK JODAITIS AT MANCHESTER’S SEWAGE TREATMENT In the present system, about 75 vice releasing Chris Hemlock St., 31,200. 1983. and the Board of Directors to go PLANT strong to Elizabeth I. forward. .. new facility would be directly behind this one per cent of the town’s waste water Hansen, property at 17 enters the secondary treatment Quaker Road. percent of the cost, the state, 15 plant without primary treatment, THE K E Y to the planning seems any federal contribution, Jodaitis funding. It is that 55 percent percent and the town 10 percent. said. the town is under orders by the thus putting a strain on the plant. B liY O F F to be an elusive “ window of time” The future federal contribution Jodaitis wants to shoot for as a Lis pendens State thinking now in the Depart- federal Environmental Protection The new facility would cure that the town must aim for in its will ^ 55 percent with a state minimum outside contribution, Grace Bouchard Want ads get results AL SKFFERrS T N I T R U C K scheduling. inent of Environmental Protec Agency to resolve sewage treat problem. It would also move the contribution of 30 percent, and and 85 percent as a maxmimum. ag:-.inst James T. Bou tion, Jodaitis said, is that munici- ment problems and the deadline outfall of the plant from Hop Brook Under the old funding schemes, after the 1985 fiscal year, there is IN ANY EVENT, there appears chard, dissolution of mar ASAVEI palftes in the future should get 55 for compliance has actually to the Hockanum River, where the federal government paid 75 no guarantee that there would be to be no way to avoid construction riage, property at 28 percent state or 55 percent federal passed. As long as federal funds there will be more water to dilute Teresa Road. 3 DAY w — ■ of the plant, Jodaitis said, because were ample, he said, the E PA did the effluent Saving Bank of Manches ter against John W. Hub bard, foreclosure, prop erty at 131 St. John St. Ai siimrsSAYS... Threat suspect Attochnnents rnuagoAPSAiii^ Beverly Bronzi against John A. Barone, 31,500, WHY PAY MORE? said a danger : 'I became issue' Unit 114B2, Park Chestnut Condominiums. WASHINGTON (UPI) - Anne killing me." Lavallee Overhead BRIDGEPORT (U PI) — A Connecticut man watching on TV while she was Burford says she resign ^ as head of Mrs. Burford defended her record Door, Inc. against Wood- We bought a Tniddoad of Gi. mdicted for allegedly threatening to kill President standing there in her pantyhose.” haven Builders Inc. End of Winter the Environmental Protection at the EPA to the newspaper from her Environmentalists cheered at the Reagan "with a high-powered rifle” is diagnosed by Agency because “ I became the home state, saying, “ You guys 32,300, property in Blue doctors as psychotic, homicidal and suicidal. Sierra Club headquarters in San issue.” Despite her departure, critics haven’ t printed-it, but this president Trails Estates. Matthew Ackerman, 36, of Stamford, allegedly Francisco and members of Congress Thomas W.

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