Hoping to woo Kimball Midwest, a national, Ohio-based industrial supplier, to establish a warehouse facility in town, officials unanimously approved a business incentive program request recommended by the Newtown Economic Development Commission (EDC). The decision came in a joint meeting of the Board of Selectmen and the Legislative Council, July 7.

The terms of the incentive would be a tax abatement over three years of approximately $5,500 per year.

If the company agrees to occupy and improve the property it purchased at 14 Prospect Drive, the former location of Hubbell Incorporated, it would be one of several economic development initiatives that have — or could — come to fruition locally to help fortify Newtown’s commercial tax base and Grand List.

The town recently approved a similar incentive program for Country Camper, and that family-owned business announced this week it would be developing a large retail and repair facility on the site of the former BlueLinx company off South Main Street. The town is also poised to announce whether one or more developers have been identified as prospects for a mixed-use commercial/residential project at Fairfield Hills.

Similarly, local officials are in the process of negotiating the sale of a large industrial parcel in the former “tech park” site off Commerce Road.

Kimball Midwest purchased the former Hubbell site for $4.4 million, and is proposing to make updates and repairs. The town hopes offering a business incentive will encourage Kimball Midwest to open a distribution center in town, which would create approximately 30 jobs.

First Selectman Dan Rosenthal stated that without the business incentive, Kimball may instead “simply sell the property to clip a quick return based on a deeply discounted sale price.”

During the joint meeting, some officials noted concerns about traffic, as the site is located near a number of residences. Brendan McCurdy of Kimball Midwest stated that he expected traffic would be similar to what was coming and going from Hubbell. “Neighbors wouldn’t see much of a change, other than fewer 18-wheelers,” McCurdy said.

Rosenthal noted the importance of attracting Kimball with a business incentive as, if Kimball doesn’t occupy the building, it could “languish” until new buyers are found. Economic Development Commission Chair Wes Thompson stated that Kimball Midwest is a “really good company.”

“It’s better to get someone we know who’s high caliber, than to wait and get someone else we don’t know,” Thompson said.

Kimball Midwest is a family-owned national distributor of products for the maintenance, repair, and operations (MRO) industries that has been in business since 1923. According to its website, the company services sales representatives and end-use customers from its corporate office and distribution center in Columbus, and from distribution centers located in Dallas; Reno, Nevada; and Savannah, Georgia.

Brendan McCurdy of Kimball Midwest told officials at the June 15 EDC meeting that Kimball has been active in the Northeast for close to five years and is now looking for property to establish a Northeast distribution center. EDC Chair Wes Thompson referred to Kimball Midwest as the “Amazon of the industrial business sector.”

McCurdy said Kimball found 14 Prospect Drive to be a great location despite its need to be updated, and that Newtown is an attractive location for Kimball due to its proximity to New York City, where MTA, one of their larger customers, is located. Kimball is not set on relocating to Newtown, however, and is reviewing a number of locations in the state, among them New Britain.

New Britain may present stiff competition, as it is a federally designated opportunity zone with “good tax incentives,” said Thompson.

If Newtown is not chosen, Kimball plans to renovate and resell the property. It has identified some challenges with the building, particularly the second floor; repairs are necessary to increase structural capacity to handle forklifts, and dividing walls must be installed to create sales training areas.

Kimball hopes to have its Northeast distribution center up and running by early 2022. McCurdy stated that Kimball has been reviewing the plans of 14 Prospect Drive with an internal operations team to ensure the building can handle what Kimball needs there. If the company comes to Newtown, it intends to occupy the entire building, as Kimball carries a large inventory.

The improvements and repairs Kimball plan for the building total approximately $2 million, including $100,000 to $200,000 for Phase I and Phase II environmental clean-up; $50,000 to $100,000 for parking lot improvements and repaving; $50,000 to $100,000 for demolition of the interior of the building; $900,000 for roof repairs; and $500,000 to $1 million for interior renovations to include floors, warehouse and offices, conference rooms, and bathrooms.

According to Christal Preszler, deputy director of Economic & Community Development for the town, the improvements will increase the assessment of the property from its current Grand List value of $2,868,025 to somewhere between $3,080,000 and $3,710,000. The median increase would be roughly $500,000.

The July 7 joint meeting represented the final step in the business incentive approval process.

Jim Taylor can be reached at jim@thebee.com.