This is a printer-friendly version of an article from Zip06.com.
12/15/2023 02:00 PMAt a Board of Selectmen (BOS) meeting on Dec. 12, the board approved a tax incentive policy that proponents hope will attract new businesses as well as help expand ones already in town. The move will need to be approved at a town meeting, which has not been scheduled at press time.
Earlier in 2023. Economic Development Commission (EDC) Chairman Jim Crawford presented the case for creating a tax incentive policy to the BOS. After nearly a year of work, a final proposed policy was presented at the Dec. 12 meeting.
While the BOS approved of the plan, according to Crawford, since the new policy is technically an ordinance, the town attorney recommended that it be approved at a town meeting. That meeting has not yet been scheduled.
Tax incentive policies are not new, and several area towns have adopted similar policies in the last five years. In general, the polices work by giving interested developers who meet certain criteria working on large projects in town the option to apply for the policy.
Often, a developer or existing business owner taking on a project such as an expansion or new development will have limited capital at the beginning of the project. To counter that, it’s common for developers to ask for an abatement on some tax payments until the development is open and makes money.
Under the proposed policy in Westbrook, the EDC and Board of Finance can help review the project, but the BOS has the final say on whether abatement is granted. If the town approves the application, the developer will be helped with their taxes over a certain amount of years.
Crawford called the move “a tool we need” to spur development at the meeting.
“The policy is designed for real estate only. The business will still pay taxes on existing property, but the taxes are phased in by year depending on the size of the improvements,” Crawford explained.
Once a project is completed, the tax increase will be phased in over the deferral period, which Crawford said is based on the project size. The exact terms are negotiated by the BOS. Crawford also clarified at the BOS meeting that the abatement would not be applicable for personal property, just real estate.
The plan to come up with the policy began out of conversations to help the downtown, though Crawford noted the policy would apply to businesses or potential developments located anywhere in town.
“We’ve been talking a long time about helping business in the downtown, but when we looked at it, it became obvious that it was something that would help the whole town,” Crawford said.
Crawford singled out Westbrook Town Planner Peter Gillespie as being particularly helpful with crafting the policy.
Still, Crawford said that the policy goes hand in hand with addressing the wastewater concerns in downtown Westbrook as part of a longer-term goal of revitalizing Westbrook’s town center.
The date of the town meeting to approve the plan will be set in the coming weeks.