ANSONIA — The city is proposing amending the tax agreement with Primrose Companies, the new owner of the 8.56-acre Olson Drive property, to enter into an agreement that greatly undervalues the property for nearly two decades. While tax breaks are sometimes used for development, this deal is weighted too far in favor of the developer, especially compared to taxes paid on other commercial properties in Ansonia. It gives the farm away and doesn’t tie tax breaks to performance standards like job creation.
The agreement calls for $0 payments in the first three years, $75,600 in payments for years 4 to 6, then a 5% increase for the next 10 years thereafter.
In the first 10 years of their sweetheart deal, this works out to $56,894 per year, or a whopping $6.95 per Ansonia household per year!
They sold this property at zero profit, and want to collect what works out to be less than $7 per household each year for the next decade. This is not a good deal.
When compared to similar properties, the amount being charged is ridiculously low – to the point it calls into question the integrity of the deal. Below are the most recent taxes paid by comparative properties:
—Stop & Shop Plaza, 100 Division St: 6.77 acres. 2021 tax bill: $332,621
—Burger King, 20 Pershing Dr: 2.05 acres. 2021 tax bill: $141,556
—Target Plaza, 20 W Main St: 9.2 acres. 2021 tax bill: $280,407
—Big Y Plaza, 403 Main St: 14.8 acres. 2021 tax bill: $512,160
The average tax cost per acre of these properties is $38,597.
Olson Drive is being taxed at only $9,308 per acre — 75% less than comparable commercial properties. For 8.56 acres, Primrose should be paying closer to $330,000 per year!
As a homeowner, I am flabbergasted at the egregious disregard for taxpayers, with City Hall insiders selling valuable downtown land at no profit, and with such a terrible tax “deal.” Who exactly is this a deal for? Certainly not Ansonia residents. Also, if I was a neighboring commercial property owner, I’d be livid. Why is this particular developer getting such a sweetheart deal?
What makes this even worse is that the current city administration is trying to distract residents from this terrible deal by touting a letter of intent from a different developer to rebuild the Ansonia Animal Shelter. No doubt, the shelter desperately needs improvements, and anyone would want to support that. I am an animal lover with rescue pets my whole life. However, this document is just a non-binding “thank you” letter from a different developer — nothing has been written into the Primrose tax agreement for Olson Drive, making the city’s claims inaccurate.
The tax incentive has NOTHING to do with the animal shelter. It’s a trick designed to distract you from the stench of this deal.
Don’t fall for it.
Olson Drive was grossly undersold, and now the city is proposing to under-tax it too. Ansonia taxpayers: this is your money being given away to a wealthy corporation for a private facility you’ll have to pay to use. I encourage all residents to voice your opposition to this sweetheart tax “deal” at the public meeting March 8 at 6:30PM at Ansonia City Hall. We deserve better.
John Feddern
Chairman
Ansonia Democratic Town Committee
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