The Connecticut Supreme Court is set to take up a taxation and foreclosure case involving Redding and the Georgetown Land Development Company.  The town and the Georgetown Fire District brought the initial legal action to foreclose municipal liens on 51 acres of land almost entirely owned by GLDC, which started but hasn't finished a mixed-use development on the site. 

The defendant, RJ Tax Lien Investments, argued that the liens they have on the property should take priority to the town's and the fire districts.  A trial court ruled in favor of Redding and ordered a strict foreclosure, and RJ Tax appealed. 

The Supreme Court will hear arguments at 11am. 

The  Georgetown Special Taxing District was created by special act to help with the acquisition and financing of the public infrastructure and facilities needed for the development.  The special act granted the district "all the powers of collection and enforcement of taxes as held by municipalities.  Districts created under state law have equal lien priorities, but this special act said its liens "shall take precedence over all other liens or encumbrances except a lien for taxes of the town of Redding." 

The trial court determined that the language meant the liens are equal in priority to the town's liens and not superior to them.  The court noted that the interpretation by RJ Tax of the special act would lead to an absurd result that would both empower and incentivize GLDC, the district's sole taxpayer and voter, to render the town's taxes virtually unenforceable by levying, but not paying, a tax against itself.