March 6, 2025 - by Paul Hughes, Republican-American - WATERBURY -- The city government and the Naugatuck Valley Development Corp. have settled a tax dispute concerning the assessment of the Brookside Housing Cooperatives on Fulkerson Drive.
The settlement was reached ahead of a scheduled hearing Wednesday on the tax assessment appeal in Waterbury Superior Court that the nonprofit Naugatuck Valley Development Corp. filed after the Board of Assessment Appeal upheld the contested $3,890,670 assessment in March 2023.
Mayor Paul K. Pernerewski Jr. said the city agreed to lower the assessment to $3,150,000 under the terms of the settlement that still must be formally approved by Judge John L. Cordani.
The city made a fair offer to settle the tax assessment appeal without a trial and the Naugatuck Valley Development Corp. accepted, said Robert S. Kolesnik, a Waterbury attorney for the nonprofit owner of Brookside Housing Cooperatives.
A coalition of churches, unions and citizen groups called the Naugatuck Valley Project established the Brookside Housing Cooperatives in 1991. It is a complex of 102 two-, three- and four-bedroom units within six individual co-ops at 140 Fulkerson Drive. Members own a limited equity share of the group.
Brookside is the oldest cooperative housing project in Connecticut, and it remains the largest in the Waterbury region. It was designed as affordable housing for people working toward being able to afford traditional homeownership. It was also intended to foster self-sufficiency within the low- and middle-income population.
The Naugatuck Valley Development Corp. claimed in its court appeal that the city had not followed a state law that required housing solely for low- or moderate-income persons or families be based on the capitalized value of the net rental income for a property. As a result, the tax assessment based on the 2022 grand list was excessive and unlawful.
"They thought the tax assessment was too high, and we did it wrong," Pernerewski said.
He said city officials reevaluated the city's position as the trial on the appeal neared, and a decision was made to reduce the assessment by $740,670.
"I think the settlement reflects the city's appreciation of the project, as well as the validity of the appeal," Kolesnik said.
About Paul Hughes
Paul Hughes is a reporter with the Republican-American. He has been with the Hearst Connecticut Media Group since 2025. When not working, he can be found playing golf, rooting for the New York Giants, and hanging out with friends and family.
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