Tax Break Standoff
Editor's Note: These stories display good stenographic skills, but seem to be a wee bit short on context and background. The Cool Justice Report asks: Might there be other undeclared relationships with the business seeking the tax break?
Council Tables Vote On Proposal
Would Alter Tax Pact With Bank
By LARRY SMITH
Courant Staff Writer
August 2, 2007
Town council members tabled a vote Wednesday on a proposed amendment that would shorten the duration of a tax abatement agreement with Enfield Federal Savings & Loan Association.
During the special meeting, council members were considering a proposal that would make that and other changes to the agreement the council approved in December 2005. The vote was put off for a regular meeting.
The approval in 2005 was based in part on the new jobs the bank would create and on its efforts in helping to revitalize the Thompsonville section of town. The bank tore down buildings that were in poor condition in order to construct its 19,051-square-foot headquarters at Enfield and Elm streets.
Under the original seven-year agreement, the town set the bank building's assessed value at 30 percent of the total in the first year and 35, 45, 55, 65, 75 and 80 percent in years two through seven. In exchange, the bank guaranteed it would create 39 jobs at its offices in Enfield.
Bank officials later told the town that the 39 jobs would be spread throughout its offices including ones in other communities, according to the proposed resolution to amend the agreement.
The proposed amendment calls for the tax abatement period to be shortened to four years, with the bank building's assessment set at 50 percent in the first year, and 41, 41 and 37 percent in the succeeding years. In exchange, the bank would promise to create 21 full-time jobs in its Enfield offices.
Council tables tax abatement
for Enfield Federal Savings and Loan
ENFIELD - The Town Council on Wednesday tabled a vote on a proposal to shorten by three years the tax abatement agreement for the Enfield Federal Savings and Loan Association.
The proposal would have reduced the duration of the original agreement, approved by the council in 2005, from seven to four years.
The proposal included a provision that property taxes would be paid on 50 percent of the $3.2 million building's assessed value during the first year of the agreement. During two of the following years, taxes would be paid on 41 percent of the building's assessed value, then 37 percent.
Enfield Federal Savings and Loan, which is operated by New England Bancshares Inc., constructed a 19,051-square-foot, two-story building on the corner of Elm and Enfield Streets.
Under the original agreement, property taxes would be paid on 30 percent of the building's assessed value during the first year of the agreement.
During the next six years, that percentage increases steadily to 35, 45, 55, 65, 75, and 80 percent of the property's assessed value.
Towns occasionally use tax abatements to entice economic development and job growth.
Tied to the original tax abatement agreement was a promise by Enfield Federal Savings and Loan to add 39 full-time positions to its staff over the course of the agreement.
However, after the agreement was approved, bank officials indicated that the new positions would be spread over various branches and offices, including those in other towns.