Economic Development Incentive Program Approved

Residents attending a Town Meeting on October 26, 2006 approved of a new Economic Development Incentive Program (EDIP) that would provide a tax rebate to private sector developers who install roadways and extend utility lines in the Industrial and Planned Development Industrial Park zones. Currently hundreds of acres of land in these two zones lack appropriate roadway and utility access and hamper efforts to market the properties. The lands that would benefit from this program are located along Route 75 in the vicinity of Bradley International Airport and off of Route 159 in the vicinity of the Hood plant. Under the program, the Town of Suffield would reimburse the developer for up to 100% of the costs of the public improvements, including design and installation, upon receipt of documentation of expenses incurred. The reimbursement period is seven years or until 100% of the costs have been reimbursed, whichever comes first. The reimbursement is based on the new tax revenue generated from the project as a result of the infrastructure improvement. It is in the developer’s interest to market the property and get buildings constructed so that they earn the full reimbursement. The benefit of the EDIP is that there are no up-front costs to the town and previously inaccessible land or land not serviced by appropriate utilities will be opened up for commercial and industrial development.

Currently, there are hundreds of acres of land that are not development ready. As such, the Town only has the possibility of property tax receipts on the value of the land. With the adoption of the EDIP the town will benefit not only from taxes derived by the value of the land, but also the buildings and personal property located thereon. In today’s economic development environment, businesses are looking for “shovel-ready” sites when they are in the market for new locations. The EDIP will help ensure that Suffield has an inventory of shovel-ready sites to offer businesses.

The program will cover the extension of public roadways and water, gas, and sewer lines. Also covered will be storm drainage improvements and rail sidings. Suffield has one of the few areas left in the state with land available along an existing rail line. Interested developers will make an application to the Town to be reviewed by staff. If the application is complete, it will be brought to the Economic Development Commission for its recommendation. The Board of Selectmen has the authority to approve the applications. Should the Board of Selectmen approve a project then an agreement would be executed between the Town and developer.

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