Due to inclement weather, a Town meeting at which voters were set to weigh in on a new tax incentive ordinance has been rescheduled for Thursday, March 14, at 7 p.m. at Town Hall.

At a Board of Selectmen (BOS) meeting on Dec. 12, 2023, the board approved a tax incentive policy that proponents hope will attract new businesses and help expand ones already in town. While the plan has already received BOS approval, the town attorney recommended it be approved at a town meeting since the new policy is technically an ordinance.

The town meeting was originally scheduled for Feb. 13 but was postponed due to a snowstorm. At a special meeting on Feb.15, the BOS rescheduled the meeting for March 14 at 7 p.m. at Town Hall.

While the tax incentive policy is the most notable item on the town meeting agenda, there are five other items on the agenda.

One is approving a sum not to exceed $15,000 be appropriated from the American Rescue Plan Act (ARPA) funds for the Women and Families Center Sexual Assault Crisis Services to facilitate sexual assault counseling, programs, and services.

Another is authorizing the first selectman to accept a grant from the Connecticut Secretary of State for $10,500 for costs related to early voting.

A third is to amend Chapter 5, Article 1, Section 5-4 of the Westbrook Code of Ordinances to reflect a new fee schedule related to Building Department applications.

A fourth item is to approve an appropriation not to exceed $5,840.00 from the Public Works General Fund to the Seawall Repair Capital Project to cover a deficit in the closed capital account.

The fifth item on the agenda is to authorize the first selectman to accept a grant from the Connecticut Junior Soccer Association for $1,000 for the cost of soccer goals and nets.

The Tax Incentive Policy

The tax incentive ordinance is the item on the agenda that could have the biggest long-term effect on the town.

In 2023, Economic Development Commission (EDC) Chairman Jim Crawford first presented the case for creating a tax incentive policy to the BOS.

Tax incentive policies 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 number of years.

At the December BOS meeting, Crawford called the move “a tool we need” to spur development.

“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 at the time. Other towns have instituted similar policies over the last few years.

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 to 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. After nearly a year of working on the policy, the final incentive was presented to the BOS in December 2023.

“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.

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.