Longtime business gets tax break

HAMDEN — The town recently announced that Rainbow Cleaners, an institution in the community for roughly 70 years, will receive a tax break in exchange for a $300,000 investment in the property.

HHJZ LLC will use the $300,000 to rehabilitate the property at 1540 Dixwell Ave., according to a release from the town.

In exchange, the town will waive 30 percent of the tax bill for the increased value of the property for three years and half the building permit fee, officials said.

The agreement was approved by the Legislative Council at its Sept. 17 meeting.

Dale Kroop, director of economic and neighborhood development, told the council in a letter submitted at the time that the town will waive approximately $5,000 in tax dollars and $2,000 in permit fees through the agreement.

He said the town, after the deal concludes, will garner approximately $15,000 per year in new tax revenue. Rainbow Cleaners also is planning to create four to six new jobs during the three-year period, he said.

“This is a long time Hamden business reinvesting in our community. Rainbow Cleaners plans to create additional jobs over the next three years as a result of this investment, and the Town ought to support these efforts,” said Mayor Curt B. Leng in the release. “Hamden’s tax incentives help to strengthen the Town’s business base and maintain our business friendly message, which in turn allows us to compete in expanding and rehabilitating our local commercial and industrial businesses.”

According to its website, Rainbow Cleaners was founded in 1948 by Richard and Arthur Verneris, and is now owned by Marc Verneris and his wife, Marga.