Blasts From The Past

JI On Enfield Tax Breaks

Enfield bank officials seek property
tax break for new headquarters

By Mike Cummings
Journal Inquirer
09/28/05

ENFIELD -- Enfield Federal Savings and Loan is seeking a property tax break on assessments for its new headquarters under construction at the corner of Elm and Enfield streets.

A proposed resolution circulated among Town Council members would authorize Town Manager Scott Shanley to sign an agreement providing a seven-year tax abatement on the property.

According to the proposed resolution, property taxes would be paid on 30 percent of the $3.2 million building's assessed value during the first year of the agreement.

The percentage increases steadily over the next six years until taxes are paid on 100 percent of the property's assessed value.

Towns occasionally use tax abatements to entice economic development and job growth.

Enfield Federal Savings and Loan, which is operated by New England Bancshares, Inc., employs 58 people full time at its current location at 660 Enfield St.

According to the resolution, it plans to add 39 jobs to its staff over the course of the proposed tax abatement.

Construction of the bank is considered important to the redevelopment of the intersection of Enfield and Elm streets.

The building was designed to compliment Town Hall, which occupies an opposite corner of the intersection.

The council is expected to discuss the proposed tax incentive Monday in executive session.

Councilman Scott Kaupin, Republican minority leader, said the discussion will occur behind closed doors because the proposal involves real estate negotiations.

Kaupin said property tax abatements are an effective tool for promoting economic growth when used responsibly.

"The council has been judicious in not handing out tax abatements left and right," he said Tuesday. "They are linked to job growth and new construction."

Since 1979, the town has authorized 19 tax abatements. They have ranged in length from three to seven years.

The following five companies currently have tax abatements in Enfield: The Martin-Brower Co., The Connecticut Wood Group, Sterling Machine Co., Camerota Truck Parts, and Bernie's appliance chain.

Other entities to receive tax abatements include Hallmark and Lego Systems Inc.

Deputy Mayor Lewis Fiore, a Democrat, said each of the current abatements was tied to job growth.

"We're very, very stringent and careful about tax abatements," he said Tuesday. "Nobody is giving the farm away."

Fiore and Kaupin said the town has rescinded tax abatements because job growth projections were not realized.

Kaupin said the proposed tax abatement is slightly unusual because Enfield Federal Savings and Loan does not own the property.

It will lease the 19,051-square-foot building from Troiano Professional Center, LLC.

"One of my questions is can we as a council or town provide an abatement to a business that is leasing a building," he said.

Fiore said the tax abatement would figure into the bank's lease with the property owner.


Property tax break approved
for bank headquarters

By Mike Cummings
Journal Inquirer
12/06/05


ENFIELD -- Enfield Federal Savings and Loan will receive a property tax break on assessments for its new headquarters under construction at the corner of Elm and Enfield streets.

The Town Council unanimously approved the seven-year tax abatement Monday. Many council members said the bank's history of community involvement and its decision to expand in Enfield makes it worthy of the tax breaks.

Economic Development Director Raymond Warren said the $3.2 million building project "is the largest private investment on this side of I-91 that I can remember."

According to the agreement, property taxes would be paid on 30 percent of the building's assessed value during the first year of the agreement.

The percentage increases steadily over the next six years until taxes are paid on 100 percent of the property's assessed value.

Towns occasionally use tax abatements to entice economic development and job growth.

District 3 Councilman Scott R. Kaupin, the Republican minority leader, said the bank qualifies for a tax abatement because it is expanding its operations in Enfield.

Enfield Federal Savings and Loan, which is operated by New England Bancshares Inc., employs 58 people full time at its current location at 660 Enfield St.

According to the resolution, the bank plans to add 39 jobs to its staff over the course of the tax abatement.

Warren said the job projections must be fulfilled for the bank to maintain the tax abatement.

"If they don't adhere to the agreement, they will lose the abatement," he said.

Construction of the bank is considered important to the redevelopment of the intersection of Enfield and Elm streets.

The building was designed to complement Town Hall, which occupies an opposite corner of the intersection.

Mayor Patrick L. Tallarita said the town is careful in deciding when to grant tax abatements for development.

"We don't hand them out freely," he said.

Since 1979, the town has authorized 19 tax abatements. They have ranged in length from three to seven years.

The following companies have received tax abatements in Enfield: The Martin-Brower Co., The Connecticut Wood Group, Sterling Machine Co., Camerota Truck Parts, Bernie's appliance chain, Hallmark, and Lego Systems Inc.

Warren noted the bank's record of community involvement, pointing out it recently donated $5,000 to local flood relief efforts.

He said the bank is working with the town to obtain grant money that would be used to fund a first-time homebuyers program targeted for the Thompsonville neighborhood.

Interim Town Manager Christopher Bromson said the bank has established a program to help police officers buy homes in Enfield to improve the Police Department's ties to the community.