Enfield council to consider change to encourage development in Thompsonville
Jan. 17—ENFIELD — Residents will have a chance during a public hearing Tuesday to voice their opinions on proposed modifications to the town's Tax Increment Financing policy that would be more conducive for development in the Thompsonville section of town.
The public hearing is set for 6:50 p.m. in the Town Council chambers, immediately followed by the Town Council meeting.
The TIF policy was developed in June 2019 and modified in April 2021, providing the ability for the town to enter into an agreement with local property owners and developers looking to invest within the TIF boundary.
TIF districts allow municipalities to provide annual rebates of taxes to new developments that have increased the taxable value of properties within the districts. The rebates may come only from the increased tax revenue generated — known as the increment — meaning the town cannot collect less in taxes than it did before the TIF was established.
According to Nelson Tereso, deputy director of economic and community development, there are two boundaries within the TIF district: the midtown boundary that includes properties in and around Enfield Square and the Thompsonville Village boundary.
After the town developed the TIF policy and began to receive inquiries from local property owners and developers interested in investing within Thompsonville, it became apparent that the application requirements for entering into the credit enhancement wasn't advantageous for the Thompsonville district, he told the Town Council at a meeting this month.
Tereso said the application required a property owner to invest $500,000 in development costs for a project.
"We need flexibility in this area for developers to receive incentive from the town, which is essentially the modification we are looking to make," he said.
The main change would allow a project in the Thompsonville district that would increase the assessed value by up to 50% to to receive any incentive from the town on a case-by-case basis, subject to the TIF Advisory Committee review and approval and the Town Council's approval, Tereso said.
A public hearing is required for any modifications to the policy.
Councilman Nick Hopkins asked about the proposed change in application fees and what the town is hoping to attract now.
Tereso said the application fee was $250, but found that other communities had a flat fee of $500 or $1,000 with some of the larger TIF and industrial boundaries having a fee of $5,000. Now, he said, the town would like to base the fee on a ladder approach with $250 fee for a smaller rehab, $500 for a project between $500,000 and $1 million, and $1,000 for anything over $1 million.
The fee is for staff to review the application, Tereso said, adding that the town is requiring that the applicant prepare all legal documents for the credit enhancement agreement.
A few members of the Town Council asked if 10 minutes would be enough time for the public hearing. Tereso said the proposed modifications to the TIF policy are not significant and he does not anticipate any opposition from residents.
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