City bank­ing on new tax in­cen­tives to boost busi­ness

New Haven Register (New Haven, CT) - - LOCAL NEWS - By Jean Falbo-Sos­novich

DERBY — To help grow its grand list, en­tice new busi­nesses and en­cour­age ex­ist­ing ones to ex­pand, the city has adopted a new or­di­nance of­fer­ing tax in­cen­tives.

The Board of Al­der­men Thurs­day unan­i­mously ap­proved Derby’s first-ever tax in­cen­tives or­di­nance, and the tim­ing couldn’t be bet­ter.

“Now is the right time be­cause Derby is a dis­tressed city and we have had years of stag­na­tion and in­abil­ity to at­tract large de­vel­op­ment to the south side of Main Street,” said the city’s Chief of Staff An­drew Bak­lik. “This is a tool that we can use to at­tract the type of de­vel­op­ment that will in­crease our tax base and make Derby a des­ti­na­tion in­stead of a cut-through to the sur­round­ing cities and towns.”

Bak­lik was one of sev­eral mem­bers who sat on the or­di­nance com­mit­tee that cre­ated the tax in­cen­tive pack­age over the last sev­eral months. Bak­lik said the com­mit­tee looked to the nearby towns of Orange, Trum­bull, Bea­con Falls and Sey­mour, which have tax in­cen­tives in place, and “tweaked some of the de­tails to re­flect what made sense for us eco­nom­i­cally.”

Un­der the new or­di­nance, Bak­lik said any new con­struc­tion that in­creases the as­sessed value of a prop­erty over $5 mil­lion will be en­ti­tled to a seven-year tax abate­ment that gives 70 per­cent in the first year, 60 per­cent the sec­ond year and so on.

Any new con­struc­tion that in­creases the as­sessed value of a prop­erty over $1.5 mil­lion will be en­ti­tled to a five-year abate­ment that gives a 50 per­cent dis­count in the first year

“Now is the right time be­cause Derby is a dis­tressed city and we have had years of stag­na­tion and in­abil­ity to at­tract large de­vel­op­ment to the south side of Main Street.”

City’s Chief of Staff An­drew Bak­lik

all the way down to 10 per­cent in the fifth year, ac­cord­ing to Bak­lik.

Any new con­struc­tion that in­creases the as­sessed value of a prop­erty over $750,000 will be en­ti­tled to a three-year abate­ment that gives 30 per­cent the first

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