Date: Fri 08-Nov-1996

Publication: Bee

Author: STEVEB

Quick Words:

EDC-tax-deferral

Full Text:

EDC Proposes Tax Deferral

The Economic Development Commission (EDC) has proposed a tax deferral program

in the hopes that it would help promote desired business development in

Newtown.

Members of the EDC presented their plan to the Legislative Council Wednesday,

saying the offering of tax incentives on a case-by-case basis as a tool to

attract new businesses to the town and promote existing companies to expand.

As EDC members Bob Geckle, Edward Rudisill and Rick LaBash pointed out, many

neighboring towns already have such programs in place, which "automatically

puts Newtown in a less desirable position to attract outside investment."

According to the EDC, Danbury appears to have the most aggressive and complete

program, and it includes a detailed tax-deferral ordinance plus free sewer

hook-ups and other incentives.

An example of such an incentive, according to Liz Stocker, the director of

community development, would be granting an incentive to a company that would

redevelop a non-performing or under-performing property (Dual Lite/Noranda

Metals/Church Hill Business Forms/Newtown Shopping Center), for an existing

business expansion or to a business that will improve a neighborhood business

district.

Examples of that can be provided include infrastructure improvements,

engineering assistance, waivers of building permit fees and the fixing of real

estate and personal property taxes.

The EDC has created a long list of criteria needed in order for a company to

be eligible for incentives, including building size, architecture and

employment.

Mrs Stocker says her phone has been ringing off the wall from businesses

looking around the area to build. She said the first thing they always ask is

does the town offer any tax incentives.

The Legislative Council, which is expected to review the plan again at future

meetings.