Seymour Approves Assessment Freeze For Thule And Contractor Nation

SEYMOUR — The Seymour Board of Selectman unanimously approved tax abatements Tuesday for Thule, Inc. and for Larry Janesky’s Contractor Nation, which includes a network of companies, including Connecticut Basement Systems.

The agreement approved Tuesday comes after the two companies teamed to invest $11 million in The Silvermine Commerce and Technology Park, where both are headquartered.

Janesky built a $7 million, 80,000 square-foot building, part of which is being used to house cutting-edge Thule manufacturing equipment worth about $4 million.

The agreement stipulates that the companies will not pay new taxes on the new investments for seven years. That translates to roughly $2.8 million over seven years, Selectman Stephan Behuniak said.

First Selectman Kurt Miller’s administration has embraced tax abatements (also known as tax incentive programs or, in layman’s speak, tax breaks) as a way to attract new business to town and to keep current businesses from leaving.

Both Thule and Janesky’s company have received assessment freezes in the past, Miller noted. The latest agreement also states that Thule promises to stay in Seymour for about 10 years, or have to pay any taxes that were deferred, the First Selectman said.

Prior to approving the agreements, Selectwoman Trisha Danka said she supported the town’s tax abatement program. She said town residents have questions about the program, including how the programs compare to other towns. There is a feeling in town that residents carry a large part of the tax burden.

Are we offering things that are much more enticing? Or are we not being aggressive enough with the abatements?” Danka asked.

Miller said Seymour’s tax incentive is in line with other communities. He then said that Thule might have left Seymour had the incentive program not existed.

One of the reasons that the building was built, one of the reasons that Thule decided to stay in Seymour was because of this tax incentive project, this tax incentive plan,” Miller said. They were looking in Beacon Falls. They were looking in Milford. They were actively searching for a location to put this facility. Had it not been for the tax incentive plan, I don’t think Larry would have been as eager to build an 80,000 square-foot facility for them, which, in turn would have taken all these taxes, and brought them (elsewhere).”

The companies will pay a full tax bill in eight years. The First Selectman noted the two companies are among the town’s biggest private employers and tax payers. The First Selectman further noted that a manufacturer, Emery Winslow Scale Company, recently moved their operations to The Silvermine Commerce and Technology Park. That company will probably be requesting a tax abatement, too, Miller said.

Selectman Al Bruno was on the committee that drafted the town’s tax abatement policy.

It seems like it’s reaping the benefits that we were hoping it would,” Bruno said.

Behuniak, saying he was playing devil’s advocate in the discussion, questioned the philosophy underlying tax abatement programs. He noted that residents want to see their tax burdens lessened. 

I think the science is not settled on how effective these programs are,” Behuniak said.

After the discussion all members of the board voted to approve both agreements.

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