The Board of Selectmen (BOS) will informally hold off on considering more applicants for a tax abatement program after several issues were brought up in the wake of the first two applications for the program, with BOS members and town counsel expressing concern that the policy could apply to an overly broad swath of development and open up the town to criticism.

Though it appears those first two applications will continue to move forward, First Selectman Peggy Lyons was joined by the rest in the BOS in choosing to delay consideration of any further applicants.

The two current applicants are Milano Development, which is in the process of constructing about 16,000 square feet of commercial and warehouse space at 175 Fort Path Road between Boston Post Road and I-95, and Davis Realty, which is building 30 apartments at 110 Bradley Road. Both those projects were approved by the BOS, but still must pass the Board of Finance (BOF) and town meeting.

Lyons brought up the idea of calling an official moratorium, saying that the policy needed to be refined and could potentially cause controversy or end up applying to projects for which it was not intended.

“There have been some controversial cluster housing development projects here in town over the last year, so we kind of had that experience to go through. I want to make sure that we’re just mindful of what we’re trying to achieve with the policy,” she said.

Essentially, the program works by deferring incremental increase in taxes corresponding to the increase in property value added. If approved under the policy, a developer will pay the same taxes that were due on the unimproved property, frozen from when construction began, until the project is completed. The tax increase will then be phased in over the deferral period, ranging 5 to 10 years depending on the value added to the town’s Grand List, with minimum value starting at $250,000 and rising to $8 million and higher.

Madison’s policy only offers one discriminating criteria, the $250,000 minimum added value; the underlying state statute that the policy is built on allows a broad range of projects to qualify for an abatement, ranging from parking garages to information technology office space.

“I’d hate to have the [BOS] have to weigh in and start having to pick one project over another,” Lyons said.

Economic Development Commission (EDC) Chair Ryan Duques said he appreciated the conversation, but wanted to let potential developers know that the town was still committed to offering these kinds of tax breaks. He pointed out that any developer applying for the incentive must already have received approval from every other relevant board and commission.

“These are projects that have already passed the scrutiny to ensure that they meet the character of our town,” he said.

Duques admitted that the EDC’s potential endorsement to send a developer to the BOS to receive the abatement was based on “some subjectivity.”

The town could limit the types of construction eligible for the tax break, according to Town Counsel Kari Olson, and it currently “appears” to developers that every type of project is on the table.

“The question that was raised to me is, do we really want to give tax incentives to multifamily housing if what we’re really focused on is economic growth? I am not here to weigh in on whether that’s appropriate or not appropriate. I don’t set policy, you do,” Olson said. “You certainly have discretion.”

A developer could “arguably” petition and be considered at a town meeting even if the BOS ignored its application, according to Olson, and likely some would complain if a similar application was approved and their project was rejected.

It is up to the BOS to decide how to define what is worthy of a tax abatement, according to Olson, which can be straightforward as far as type of use or more subjective focusing on planning objectives and contributions to the community. Lyons specifically mentioned upcoming recommendations from a citizens committee focused on affordable housing.

Selectman Al Goldberg said he would like the BOS to reach out to Planning & Zoning Commission, EDC, and other town leaders to help determine what projects should be offered an abatement before any other projects are considered.

“My fear is without some criteria, this board and its successive board is going to end up with incredible inconsistencies in how this policy gets applied,” he said.

Selectman Bruce Wilson proposed adding a “cover letter” in the meantime to generally let developers know what kind of projects the town was amenable to, which would not be as binding or onerous as changing the policy.

The BOS chose not to approve an official moratorium, saying its would further consider the policy at its next meeting in August.