SOUTHINGTON, CT — With another potential hotel developer eyeing Southington, the town’s top elected body Monday is hosting a public hearing on a plan to help out.
The Southington Town Council will conduct a public hearing on a new set of regulations for tax abatements on hotels.
After the hearing, the full council is expected to discuss and, possibly, vote on the measure.
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According to the proposal, the plan would allow for five years of tax breaks for the unnamed developer on any taxable property improvements at the site.
To qualify, the project must exceed $3 million in cost.
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The standard tax abatement would be: 100 percent in the first year; 100 percent in the second year; 100 percent in the third year; 50 percent in the fourth year; and 50 percent in the fifth year.
Prospective applicants would file for the abatements in the Southington Economic Development Office and the Economic Development STRIKE Committee.
Ultimately, the town council would have the final say.
“The abatement applies to new real property improvements only. The abatement does not apply to personal property. The abatement does not apply to the land,” reads the proposed regulation.
This proposal would expire on June 30, 2026 unless further action is taken by the town council.
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At the Aug. 12 Southington Town Council meeting, Southington Economic Development Director Louis Perillo said “There is interest in a hotel potentially developing at 17 West St. and they are requesting an abatement.”
While plans haven’t yet been acted upon by the town’s zoning board, the council, in the past, has approved tax abatement for similar proposals.
Perillo said hotels are ideal developments because they offer significant tax revenue on a relatively small parcel of land, adding the West Street proposal is on about 1.5 acres.
Generally, he said, hotels will invest anywhere from $5 million to $14 million, making them much-desired developments adding to the town’s tax rolls.
The hope is the tax benefits will incentivize investment in Southington in the short term and expand revenue options in the long run.
“We are hard-pressed to find a more taxable entity that pays that much,” Perillo told the council on Aug. 12.
Plus, he said, hotels bring in travelers who spend money at local stores and restaurants, adding visitors looking to enjoy Lake Compounce and/or Mount Southington, for example, could fill up hotels.
It appears council members support the tax break plan, with some openly supporting the measure Aug. 12.
For the minutes of the Aug. 12 Southington Town Council meeting, click on this link.
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