Ansonia Aldermen are considering whether tax breaks could help spur development in the city, particularly downtown, where there is a swath of old factories.
Alderman John Marini introduced a “tax incentive program” at the Oct. 9 Aldermen meeting. It was referred to the Aldermen’s finance committee for further review.
The resolution offers tax incentives to a host of land uses, including manufacturing, office, retail, storage, information technology, restaurants and athletic facilities.
Owners — or potential buyers — who redevelop or improve their properties could see breaks on their property assessments, based on how much work is involved with a given project.
Example — a developer who invests $10 million to refurbish an abandoned commercial building could see up to a 100 percent abatement on the property’s increased assessment for up to seven years, according to Marini’s resolution.
The Board of Aldermen would have the ability to offer a smaller abatement if they so choose, Marini said.
The resolution also proposes something Marini called “Ansonia First” incentives. Those items offered additional abatements for companies that hire Ansonia residents or use city-based companies for things such as construction or ongoing maintenance.
Marini said the tax incentives will show the city is serious about breathing new life into its economic base.
“It’s not enough to just hope the right investor comes to town,” Marini said.
The Aldermen seemed to be in favor of the tax incentive idea, but wanted more time to review it.
Bart Flaherty, chairman of the city’s Planning and Zoning Commission, suggested the Aldermen hold off on adopting the plan until it has been reviewed by Richard E. Stoltz, a project leader for Bartram and Cochran, the firm hired recently to create an economic development master plan for the city.
Other Aldermen questioned the inclusion of “permanent residential use” on the tax incentive list. Still others questioned whether companies would take advantage of the tax break and then leave Ansonia within a few years.
Marini said if a company rehabs a problem property then leaves, at least the city will have a marketable property on its tax rolls. He suggested the board keep the list of uses broad because no one knows what the economy will bring down the road.
“This isn’t reinventing the wheel. These are tried and true techniques,” Marini said.
Seymour has a similar plan in place.
Marini’s resolution is embedded below.
