Both the Town of Griswold ("Town") and its Economic Development
Commission recognize that a global marketplace exists, and in an effort
to attract, retain, expand and diversify the commercial tax base,
promote job growth, high-quality economic development and investment
within the Town, the Town hereby adopts this Business Incentive Tax
Abatements Ordinance ("article").
Pursuant to the authority set forth in Connecticut General Statutes
("C.G.S.") §§ 12-65b and 12-65h, as amended, this article
authorizes the Town, following the affirmative vote of its legislative
body, to enter into written agreements with actual or proposed owners
or lessees of real property or air space within the Town to fix tax
assessments of real property, personal property and air space for
prescribed periods of time and in the manner set forth in, and subject
to, this article.
The Town will consider, in addition to such other factors or
requirements as deemed appropriate by the Town in its sole discretion,
the following factors or requirements in analyzing whether to enter
into any fixed assessment agreement authorized by this article:
A. The applicant must be a for-profit business that is authorized to
do business in the State of Connecticut. A for-profit business may
include but shall not be limited to, a publically traded business.
B. The applicant must not be in violation of any applicable law, order,
requirement, permit, approval or agreement with the Town and/or any
federal, state or local government and/or commission or agency thereof.
C. No real estate or personal property tax or other tax, fee or municipal
charge due to the Town or any of its departments, officials, commissions,
boards, or agencies shall be unpaid at the time an application is
submitted and/or while it is being processed. Any resulting fixed
tax assessment agreement shall contain language allowing for termination
of such agreement if the applicant fails to pay any such tax, fee
or charge during the term of the agreement.
D. If the applicant is a tenant operating under a proposed lease of
real property or air space within the Town, the lease must be in writing
and the term of the lease must be for no less than the term of the
proposed fixed assessment. A copy of the written lease shall be submitted
as part of the application. Any resulting fixed tax assessment agreement
shall require the terms of such agreement to be reflected in an amendment
to said written lease, and the Town reserves the right to terminate
a fixed assessment agreement simultaneously with the termination of
the lease.
E. If an applicant is relocating a business within the Town, the application
shall include a history of applicant's tax assessments and payments
to the municipality(ies) and/or other political subdivision(s) in
which the business has been operating for the five years immediately
preceding the date of the application.
F. The applicant's proposed project must be a permitted use at
the proposed location under the Griswold or Borough Zoning Regulations
and must receive all necessary approvals, licenses and permits from
the Griswold Planning and Zoning Commission and other Town, State
of Connecticut and federal agencies, boards, commissions and officials
having jurisdiction with respect to the project and/or property.
G. The applicant and its parent and subsidiary(ies) must be in environmental
compliance with the Connecticut Department of Energy and Environmental
Protection and/or its successor.
H. The proposed project must have a clear economic benefit to the Town.
The application shall include a description of benefits to be realized
by the Town if the application is approved.
I. A complete application on a form approved by the Town's Board
of Selectmen, with all required information, must be submitted.
For the purposes of this article:
Real Property Tax Abatement Schedule Approved by the Town
of Griswold
|
---|
Project Value
(Measured by Cost of Improvement)
|
Maximum Period and Percentage of
Assessment Fixing Agreement
|
---|
$3 Million and Above
|
10 Years After Improvement
|
Year 1
|
90% abatement of assessed value of cost of improvements
|
Year 2
|
80% abatement of assessed value of cost of improvements
|
Year 3
|
70% abatement of assessed value of cost of improvements
|
Year 4
|
60% abatement of assessed value of cost of improvements
|
Year 5
|
50% abatement of assessed value of cost of improvement
|
Year 6
|
40% abatement of assessed value of cost of improvement
|
Year 7
|
30% abatement of assessed value of cost of improvement
|
Year 8
|
20% abatement of assessed value of cost of improvement
|
Year 9
|
10% abatement of assessed value of cost of improvement
|
Year 10
|
0% abatement of assessed value of cost of improvement
|
$500,000 to $2,999,999
|
2 Years After Improvement
|
Year 1
|
60% abatement of assessed value of cost of improvements
|
Year 2
|
40% abatement of assessed value of cost of improvements
|
Smaller Projects with Project Value Less Than $500,000
|
|
(Measured by Increased Assessment)
|
|
Minimum $25,000 Cost of Improvement
|
3 Years After Improvement
|
Year 1
|
50% abatement of the increased assessment
|
Year 2
|
40% abatement of the increased assessment
|
Year 3
|
30% abatement of the increased assessment
|
For the purposes of this incentive policy:
MACHINERY AND EQUIPMENT
As defined in C.G.S. § 12-81(72), as amended, and
intended to qualify for tax relief pursuant to § 12-65h,
as amended, shall have a depreciable useful life of five or seven
years for federal income tax purposed.
PERSONAL PROPERTY
Any property that is not real property and that is movable
or not attached to the land.
PROJECT VALUE
As set forth below shall refer to the increase in assessed
value of such personal property in the facility or wholesale and retail
business, as set forth in C.G.S. § 12-64h, as such increase
is determined by the Town's Tax Assessor.
Personal Property Tax Abatement Schedule Approved by the
Town of Griswold
|
---|
Project Value
|
Maximum Period and Percentage of
Assessment Fixing Agreement
|
---|
$3 Million and Above
|
7 Years After Installation of Personal Property
|
Year 1
|
90% abatement of assessed value
|
Year 2
|
80% abatement of assessed value
|
Year 3
|
70% abatement of assessed value
|
Year 4
|
60% abatement of assessed value
|
Year 5
|
50% abatement of assessed value
|
Year 6
|
40% abatement of assessed value
|
Year 7
|
30% abatement of assessed value
|
$500,000 to $2,999,999
|
2 Years After Installation of Personal Property
|
Year 1
|
60% abatement of assessed value
|
Year 2
|
40% abatement of assessed value
|
Smaller Projects with Project Value less than $500,000
|
|
Minimum $25,000 Value of Personal Property
|
3 Years After Installation of Personal Property
|
Year 1
|
50% abatement of the increased assessment
|
Year 2
|
40% abatement of the increased assessment
|
Year 3
|
30% abatement of the increased assessment
|
This article, by specifically referencing the authority set
forth in C.G.S. §§ 12-65b and 12-65h, as amended, is
not intended to limit the Town's ability, in its sole discretion,
to enter into, grant or allow for fixed tax assessment agreements,
tax abatements or other tax incentives which may be available under
other provisions of the C.G.S. and/or applicable law.