[Adopted 10-6-2009 by Ord. No. 93]
The purpose of the tax incentive program is to attract new firms
to the Town of Wolcott and to promote expansion of existing businesses
and industry. It is the intent of the Town to provide and create jobs
for local and area residents; to create long-term tax base growth
through the replacement, reconstruction, expansion and remodeling
of existing business and industrial facilities, where appropriate
and environmentally sound; to encourage the construction of new facilities,
when necessary; and to create the potential for generating new demands
for existing local businesses through a "spin off" effect of major
employers' business decisions. It is further the intent of the Town
of Wolcott to encourage substantial investment in new equipment and
other personal property subject to taxation within the Town.
A.
The following types of businesses, consistent with Town codes, shall
receive priority consideration for development incentives:
(1)
Manufacturing firms as defined in the Economic Development and Manufacturing
Assistance Act of 1990, as amended (C.G.S. § 32-220 et seq.).
(2)
Facilities designed for the management and administrative support
of business activity located elsewhere.
(3)
High technology firms.
(4)
Wholesale/Distribution firms.
(5)
New retail businesses.
B.
Notwithstanding the listing of the priority businesses, all companies
shall meet the following standards:
(1)
Possession of a good, recent environmental "track record"; or, through
relocation to an area with appropriate infrastructure, begins meeting
its environmental responsibilities.
(2)
Construction cost of $100,000 or more in new or rehabilitated facilities.
(3)
Creation of at least three new permanent, full-time jobs for new
construction and/or remodeling and renovation of 5,000 square feet
or less; in addition, there must be at least one new, permanent, full
-time job for each additional 1,500 square feet (example: 6,500 square
feet equals four new jobs, 8,000 square feet equals five new jobs,
etc.).
(4)
Provision of a solid financial base and growth potential through
the preparation of a business plan which demonstrates possession of
the capital necessary for reasonable business growth.
(5)
The applicant will be the sole occupant of the percent of the total
square footage of the improvement for which the abatement is requested
for the full term of the abatement.
Applicants for tax incentives under this program will be considered
under the following circumstances:
A.
The proposed project must be located in an appropriate zone as defined
in the Town of Wolcott's Zoning Regulations, subject to approval of
the land use boards and commissions.
B.
If the applicant is a tenant, the tax benefits must be reflected
in the lease and the lease must be for at least the term of the tax
abatement period. The lease must be on file in the Land Records of
the Wolcott Town Clerk's Office (C.G.S. § 12-64).
C.
There is no delinquency in any taxes or service charges due the Town of Wolcott. The applicant must be in compliance with Article IV, Issuance of Permits and Certificates and Contract Payments to Delinquent Taxpayers, of this chapter.
D.
The project should have a clear economic benefit to the Town of Wolcott
as follows: The benefits derived by the Town shall exceed the total
cost to the Town over the economic life of the investment or project,
not to exceed seven years.
To the extent feasible, the applicant shall commit to the utilization
of Town-based businesses and Town residents during both the construction
and operation phases. The following guidelines are offered to assist
in achieving these goals:
A.
To the extent feasible, the applicant shall commit to hire Town residents
for new positions created as a result of the development project.
B.
Applicants shall estimate the number of anticipated new hires, the
skills required and the timing of such new hires.
C.
Applicants shall provide a copy of their affirmative action/hiring
statement or plan.
A.
All tax abatement requests shall be made in writing on a form prescribed
by the Town of Wolcott. Two copies of the application must be submitted
simultaneously, one to the Mayor and the other to the Planning and
Zoning Office.
B.
The application for tax abatement shall first be referred to the
Tax Incentive Committee. This committee shall consist of the following:
the Mayor or his/her designee; a member of the Economic Development
Commission; a representative of the Planning and Zoning Commission;
the Assessor; the Tax Collector; a Town Council liaison (nonvoting
member of the committee).[1]
C.
Said committee shall review the application to determine if the application
conforms to and complies with the Town's requirements. Each completed
application shall be considered on an individual basis. Within 30
days of the receipt of the application, the committee shall forward
a recommendation to the Town Council.
A.
Pursuant to Section 12-65b of the Connecticut General Statutes, as
amended, the Town may enter into a written agreement with the owner
or lessee of real property, fixing the assessment of the real property
and all improvements thereon or therein to be constructed. Within
the parameters of Section 12-65b of the Connecticut General Statutes,
as amended, a business may be granted partial exemption from real
property taxation for a term of years which may vary in accordance
with the scale and/or economic impact of the new development.
B.
The fixed assessment period shall commence with the first fiscal
year of the Town of Wolcott for which a tax list is prepared on October
1 immediately following the issuance of a certificate of occupancy
for any construction. The assessment of the real property for the
period prior to the affixed assessment period shall be determined
in the normal course pursuant to state and local laws and ordinances.
C.
A business which has been granted a tax abatement will report to
the Tax Incentive Committee and the Town Council annually on or by
April 30 on a form prescribed by the Town of Wolcott to ensure that
it is in compliance with the terms of the tax abatement agreement.
D.
Pursuant to the Manufacturing Assistance Act,[1] the Town will assist all qualified businesses to obtain
tax relief from the state on equipment or personal property used in
manufacturing as defined in Section 12-65h of the Connecticut General
Statutes, as amended. Machinery and equipment must qualify for five-
or seven-year depreciation for federal tax purposes. New tangible
personal property acquired by lease or purchase must be used predominantly
in the manufacture or production of goods, research or development
design and engineering of manufactured products.
[1]
Editor's Note: See the Economic Development and Manufacturing
Assistance Act of 1990, C.G.S. § 32-220 et seq.
Within the parameters of C.G.S. § 12-65b, as amended,
a business will be granted partial exemption from real estate taxation
on improvements for a term of years which will vary in accordance
with the scale of development. The number of years of partial exemption
will be determined in accordance with Table A. The percentage of partial
exemption for each fiscal year following the certificate of occupancy
for the new improvement will be determined in accordance with Table
B.
|
Table A
Number of Years of Partial Tax Abatement Based on the
Value of Real Estate Improvements
| |
|---|---|
|
Number of Years
|
Value of Improvements
|
|
3
|
$100,000 to $2,999,999
|
|
5
|
$3,000,000 to $5,999,999
|
|
6
|
$6,000,000 to $9,999,999
|
|
7
|
$10,000,000 and over
|
|
Table B
| |||||||
|---|---|---|---|---|---|---|---|
|
Value of Improvements
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Year 6
|
Year 7
|
|
$100,000 to $999,999
|
50%
|
30%
|
10%
|
None
|
None
|
None
|
None
|
|
$1,000,000 to $1,999,999
|
50%
|
35%
|
20%
|
None
|
None
|
None
|
None
|
|
$2,000,000 to $2,999,999
|
50%
|
40%
|
25%
|
None
|
None
|
None
|
None
|
|
$3,000,000 to $5,999,999
|
70%
|
60%
|
45%
|
30%
|
15%
|
None
|
None
|
|
$6,000,000 to $9,999,999
|
80%
|
70%
|
60%
|
45%
|
30%
|
15%
|
None
|
|
$10,000,000 and over
|
90%
|
80%
|
70%
|
60%
|
45%
|
30%
|
15%
|
A.
All agreements shall contain a provision that any business granted
tax incentive abatement shall repay the Town the dollar amount of
any incentive contained in such agreement if such business does not
meet obligations contained in such agreement.
B.
Any agreement entered into pursuant to this program shall not be
subject to assignment, transfer or sale. In the event that any such
property whose owner or lessee has entered into an agreement with
the Town of Wolcott is assigned, transferred or sold, then and in
that event, the agreement shall terminate as of the effective date
of said assignment, transfer, or sale, and the full amount of the
tax that would otherwise be due to the Town of Wolcott shall immediately
become due and payable.
After approval of any application by the Town Council, construction
shall commence within six months and shall be completed and a certificate
of occupancy issued within 24 months. Any extension from this requirement
must be approved by the Tax Incentive Committee and the Wolcott Town
Council.
A.
Any and all decisions to grant an incentive, pursuant to the terms
of this article, shall be within the sole and absolute discretion
of the Town Council of the Town of Wolcott.
B.
The Wolcott Town Council is not required by this program to grant
tax abatement. Each applicant will be considered on an individual
basis.
