[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]
[1]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).
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.