Subject to Connecticut General Statutes (C.G.S.) Sections 12-65b
and 12-65h, the Town of East Granby (sometimes referred to herein
as the “Town”) may, by affirmative vote of its Board of
Selectmen (BOS), enter into a written agreement with any party owning
or proposing to acquire an interest in real property in the Town or
with any party who is the lessee of, or proposes to be the lessee
of real property in the Town, or an interest in real property upon
which is located as defined in subdivision (72) of C.G.S. § 12-81,
fixing the assessment of the real property and all improvements to
be constructed thereon, which is the subject of the agreement in accordance
with provisions of this article.
The purpose of the Tax and Business Incentive Program (the “Program”)
is to attract new businesses to the Town, promote expansion of existing
businesses (including home-based businesses relocating into commercial
and industrial zones), and to encourage rehabilitation and reuse of
vacant commercial and industrial buildings. It is the intent of the
Town: 1) to assist in the creation of jobs for local area residents,
2) to create long term tax base growth through the replacement, reconstruction,
expansion and remodeling of existing business facilities where appropriate
and not injurious to the surrounding environment , 3) to encourage
construction of new commercial and industrial facilities, and 4) to
encourage substantial investment in new machinery, equipment and other
personal property subject to taxation within the Town.
The East Granby Economic Development Commission (EDC) acting
through the Director of Community Development, shall provide any property
owner or lessee with general information concerning the Program, prepare
and supply interested parties with a fact sheet about the Town, an
Application to participate in the Program and any other information
that may be reasonably requested by an interested party.
A. For purposes
of this article, an “interested party” is one who owns
or proposes to acquire an interest in real property in East Granby
or otherwise meets the definition of an owner or lessee of real property
as defined in C.G.S. § 12-65b and who is considering replacement,
reconstruction, expansion, or remodeling of existing business facilities
located or to be relocated in East Granby.
B. The EDC,
or its designee, may perform research about any party applying to
participate in the Program and may request of such party any relevant
information that in the opinion of the EDC or the Board of Selectman
(BOS) bears upon consideration of the Application. The EDC, or its
designee, shall obtain from the Tax Assessor an opinion of the impact
of any proposed abatement of taxes on the applicable Grand List and
on future Grand Lists.
All business uses enumerated in subdivision (b) of C.G.S. § 12-65b,
provided that the business use is consistent with Town ordinances,
regulations, rules, and codes and with the East Granby Plan of Conservation
and Development, may apply under the provisions of this article. However,
an applicant applying for the Tax and Business Incentive Program will
not be eligible if they have already been approved for the Brandley
Development Zone tax abatement program and receiving both incentives
at any time for same project is strictly prohibited.
All applicants should have no fines or violations assessed against
the applicant or its subsidiaries by state or federal agencies regarding
environmental or health codes and be able to demonstrate adequate
documentation on the proposed capital investment being proposed for
the improvements and expansions to the real property that would be
the subject of the agreement. Applicants shall apply for new business
development or expansion abatement, or commercial lease vacancy abatement
as set forth in this article.
The East Granby Assessor shall determine the assessment of the
real property and any and all improvements constructed or to be constructed
on or in the real property which is the subject of the agreement and
report those findings to the Board of Selectmen before any final approval
is voted on by the Board of Selectmen
Pursuant to C.G.S. § 12-65b(a) the assessment of real
property and all improvements in or on or to be constructed in or
on said real property may be abated for a period of not more than
five years. The level of abatement shall be dependent upon the value
of the applicant’s investment into the property as defined below.
A. New business
development or expansion abatement: For commercial real property investments,
expansions, and new construction. "New business development" shall
be defined as an eligible project involving real property, new construction,
or renovation, or tenant buildout, for either a new-to-Town business,
or the relocation of a Town business to new project site. "Business
expansion" shall be defined as an eligible project involving an addition
or renovation, or tenant buildout, of the applicant’s existing
property and/or facilities.
(1) Applicants
making an investment of $500,000 shall receive an abatement of 50%
of their increased tax assessment.
(2) Applicants
making an investment of $1,500,000 shall receive an abatement of 55%
of their increased tax assessment.
(3) Applicants
making an investment of $3,000,000 shall receive an abatement of 60%
of their increased tax assessment. Additionally, such applicants shall
also receive a 15% discount on all required building permits.
(4) Applicants
making an investment of $6,000,000 shall receive an abatement of 65%
of their increased tax assessment. Additionally, such applicants shall
also receive a 25% discount on all building permits.
B. Commercial
lease vacancy abatement: If the applicant is a tenant operating under
a written lease, the term of the lease must be for no less than five
years. Additionally, the lessee must lease from the lessor a minimum
of 15,000 square feet of commercial space. The agreement and the tax
incentives must be clearly recited in said lease and be for a period
no less than the applicable term of the tax abatement period. A copy
of said lease shall be submitted at the same time as the Application
to enter the Program.
(1) Applicants
leasing space that has been previously vacant for a period of at least
a year shall receive an abatement of 50% of their total tax assessment
for the space as it applies to the lease, for a period of three years,
provided that the real property taxes are the responsibility of the
applicant pursuant to the lease.
(2) Applicants
leasing space that has been previously vacant for a period of three
years or more shall receive an abatement of 100% of their total tax
assessment for the space as it applies to the lease, for a period
of five years, provided that the real property taxes are the responsibility
of the applicant pursuant to the lease. The fixed assessment period
shall commence the first fiscal year for which a tax list is prepared
on the October 1 immediately following the issuance of a certificate
of occupancy for construction of the buildings, additions, and all
improvements in or on the real property which is the subject of the
agreement.
C. In the
case of new construction or improvements to an existing facility,
such construction shall commence within six months of approval of
the Agreement by the Town Meeting and shall be completed no later
than twenty-four months from date of approval by the Town Meeting.
The times for commencement and completion of the construction are
mandatory except the owner's or lessee's performance may be excused
when the owner or lessee is prevented from performing by causes beyond
the owner’s or lessee’s control including natural disasters,
fires, or other calamities or a state or national declared state of
emergency.
The agreement between the Town and the owner and/or lessee of
real property shall not be assigned by the owner or lessee to any
person(s) or business organization or entity or estate or trust without
the express consent of the BOS. A conveyance of the real property
or a transfer of ownership of the business or substantially all of
the assets of the business, which is the subject of the agreement,
to a person or business organization or entity that is not owned or
controlled by the owner of the real property and/or the owner of the
business who are parties to the agreement with the Town, shall not
constitute a valid assignment of the agreement or vest any rights
under the agreement in the grantee of the real property or transferee
of the business or of the assets of the business or allow for enforcement
of any obligations of the Town against the Town by the grantee of
the real property or transferee of the business or of the assets of
the business including but not limited to any remaining tax abatements
under terms of the agreement. For purposes of this section a “controlled
entity” means a business of which 80% or more is owned by the
grantor or transferor, as the case may be.
All references to C.G.S. §§ 12-65b or 12-65h
or 12-81 or any other section of C.G.S. made herein shall include
all amendments to such statutes enacted and signed into law subsequent
to the effective date of this article.
This ordinance shall take effect 15 days after publication of
a summary of its provisions pursuant to Connecticut General Statutes
Section 7-157(b).