CITY OF ANSONIA TAX INCENTIVE PROGRAM

Section 1PURPOSE
In an effort to attract and retain businesses, the City of Ansonia has adopted this tax incentive policy in accordance with Connecticut General Statutes 12-65b and 12-65h (as amended). This policy establishes a tax incentive program for the City and allows the City to enter into written agreements with the owners and/or lessees of certain real property located within the City of Ansonia in order to fix tax assessments of real and/or personal property in the manner set forth by this policy.

Section 2ELIGIBILITY
A. In accordance with the provisions of CGS 12-65b the Board of Aldermen MAY enter into written tax agreements with owners and/or lessees of real and/or personal property if the improvements are for one of the following: 1. Manufacturing use 2. Office Use 3. Retail Use 4. Storage, warehouse or distribution use 5. Structured multilevel parking use necessary with a mass transit system 6. Information Technology 7. Recreation Facilities 8. Transportation Facilities 9. Permanent Residential Use 10. Transient Residential Uses 11. Research and Development 12. Restaurants 13. Family Entertainment 14. Athletic Facilities 15. Waterfront Development B. Only legally existing uses, businesses relocating to the City, new business development and business expansion listed in Section 2A above and located within a district zoned for such purposes by the Planning and Zoning Commission are eligible to participate in a tax incentive program under this policy. Home occupations (as defined by the Ansonia Zoning Regulations), and all other land uses are not eligible to participate in a tax incentive program under this policy. Only manufacturing facilities, as defined in subdivision (72) of CGS section 12-81 are eligible to participate in the benefits authorized under CGS 12-65h.

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The applicant may not be delinquent in taxes owed to the City of Ansonia, nor shall the applicant be in dispute with respect to any City of Ansonia assessment or tax levy.
The applicant must provide appropriate estimates of the cost of improvements and/or construction and must comply with all requirements herein stated. The City Building Inspector, or his designee, shall verify that construction costs are properly stated in the application for a building permit, and not in violation of any City codes, including the fire code.

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Proposed improvements, enlargements, or construction shall comply with all applicable state and local codes.

Section 3INCENTIVES
The Ansonia Board of Aldermen may enter into a tax agreement with any party owning or proposing to acquire an interest in real property in the City of Ansonia fixing the assessment of the real property which is the subject of the Agreement and all improvements thereon or therein and to be constructed thereon or therein, subject to the cost of the project improvements exceeding the following thresholds: Tax Abatement Schedule under CGS 12-65b Cost of Improvements $10 Million+ $5 Million+ $3 Million+ $3 Million+ $500,000+ $500,000+ $100,000+ $25,000+ Abatement Up to 100% of Increased Assessment Up to 100% of Increased Assessment Negotiable Up to 50% of Increased Assessment Negotiable Up to 50% of Increased Assessment Up to 50% of Increased Assessment Up to 50% of Increased Assessment Term Up to 7 years Up to 7 years Up to 7 years 5 to 7 years Up to 2 years Up to 3 years Up to 3 years Up to 3 years

This table lists the minimum value of an improvement that qualifies a project for an abatement, the maximum abatement amount and the maximum abatement period. The Ansonia Board of Aldermen shall determine the specific abatement for each project based upon the benefits to the City of Ansonia.

Tax Abatement Schedule under CGS 12-65h (Manufacturing Facility) Increase in Assessed Value Personal Property $3 Million $500,000+ $25,000+ Ansonia First Incentives A. Companies investing $500,000 or more and utilizing at least $25,000 per annum in new services provided by Ansonia based entities, whether for initial construction or for ongoing operations and maintenance, shall receive an additional abatement level of up to 10% beyond the tax incentive otherwise granted under this program. Companies investing $1.5 million or more and spending at least $100,000 per annum in base wages for newly hired employees residing in Ansonia, shall receive an additional abatement of up to 10% beyond the tax incentive otherwise granted under this program. The Board of Aldermen, in coordination with the Economic Development Commission, shall establish the annual reporting guidelines necessary to capture and review information needed to administer the provisions of subsections A and B above. In no event shall the cumulative incentive levels in any one year exceed the maximum levels allowed under this program and under state law. With regard to investments in excess of $3 million, the applicants agreement to extend its length of stay commitment to ten full years will allow increased abatement levels in years six and seven, as applicable.
The base incentive level will take into account the overall net benefits derived by the City over both the tax abatement period and the projected economic life of the investment project, including the ability of existing town infrastructure assets to service the project without need for costly expansion that results in a net negative impact to the City.

Abatement 100% 100% Up to 50% of Increased Assessment

Term Not more than 7 years Not more than 2 years Not more than 3 years

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Any Business Incentives shall be calculated and offered after allowing for, and preventing any duplication of, all Enterprise Corridor Zone benefits applicable to the project

Additional Incentives In addition to the above, the Board of Aldermen, on a case-by-case basis, and dependant to the General Requirements specified in Section 4, may: waive building permit and other application fees, in whole or in part; provide in kind services, such as road widening, storm drainage improvements, sewer hookups or similar improvements related to the development project at reduced or no cost to the applicant; extend water and/or sanitary sewer lines; direct grants to the application for infrastructure improvements.

Section 4GENERAL REQUIREMENTS

A. The Board of Aldermen may enter into a tax agreement under this policy only if the agreement will: 1. Cause a business to locate in the City, or 2. Cause a business to replace, construct, expand or remodel existing buildings, or 3. Cause a business to construct new buildings, or 4. Cause an increase in employment opportunities, or 5. Cause a substantial investment in new equipment or other personal property subject to taxation, 6. Preserve existing employment opportunities or 7. Provide an opportunity for appreciable growth of the Citys Grand List. B. If the applicant is a tenant or if an owner is applying on behalf of a tenant, tax benefits shall be reflected in the lease and shall be so demonstrated to the City. Any such lease shall be for a term which is at least as long as the tax benefit period.
Proposed improvements, enlargements, or construction shall comply with all applicable state and local codes.

C. D.

No tax incentive agreement shall take effect until construction is complete and the facility is occupied according to the terms of the abatement agreement.

Section 5APPLICATION PROCEDURE

A. Any eligible owner and/or lessee may apply under this policy in writing to the Ansonia Office of Economic Development on application forms provided by said office. The applicant shall provide all required information in sufficient detail to allow the City to determine costs and benefits associated with the implementation of a requested tax agreement.

B.

Upon receipt of the completed application the Ansonia Office of Economic Development shall refer the application to the Tax Incentive Program Review Committee which shall consist of 5 (five) members as follows: The Mayor, Comptroller, Assessor, Economic Development Director and designee from the Economic Development Commission. Each application shall be reviewed on a case-by-case basis. After thorough review and within thirty (30) days of receipt of the application the recommendation, along with a written analysis, shall be referred to the Ansonia Board of Aldermen. The Ansonia Board of Aldermen, in its sole discretion, shall either approve, approve with modifications or conditions or deny the application within 35 days from the date of the first regularly scheduled meeting at which the referral appears on the Board of Aldermens agenda. Granting of the tax abatement shall be subject to a majority vote of the Board of Aldermen. The Board of Aldermens decision shall be based upon the Connecticut General Statutes, the information provided in the application package, the recommendation from the Tax Incentive Program Review Committee and Section 4(A) of this document.

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Section 6AGREEMENT
A. Pursuant to the Board of Aldermens decision the City will enter into a written agreement with the owner or lessee of real property, fixing the assessment of the real or personal property for the terms of the agreement. After approval of any such tax agreement, construction shall commence within twelve (12) months and shall be completed within twenty-four (24) months. In the event that construction is not commenced and/or completed within the specified time frame, then any agreement entered into pursuant to this policy shall immediately terminate and the full amount of the tax (including accrued interest) that would otherwise be due shall immediately become due and payable, unless alternative arrangements are authorized by the Ansonia Board of Aldermen. If an applicant fails to comply with the payment of taxes upon the due date required , then any agreement entered into pursuant to this program shall immediately terminate and the full amount of the tax including accrued interest that would otherwise he due shall immediately become due and payable. Any person or firm who is delinquent in any taxes, interest or liens (including water and sewer user fees) that are due to the City shall be ineligible to enter into any such tax agreement under this policy until such delinquencies or liens are remedied. Any tax assessed and levied upon motor vehicles shall not be subject to any such agreement pursuant to this program and shall remain due and owing.

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The applicant recognizes that he or she is making a commitment to the City of Ansonia in participating in this tax incentive program. In the event that any applicant moves his or her business without sale or assignment of said business or declares bankruptcy during the period of his or her participation in this tax incentive program, then any tax incentive benefit enjoyed by the applicant under this program shall be forfeited and the applicant shall be required to pay back all taxes that would have been assessed had the applicant not participated in this program. In the event that any term of the Agreement is disregarded by the applicant, including construction schedules, the Business Incentive Agreement including the fixing of the assessment shall terminate and the full amount of the tax that would otherwise be due the City of Ansonia shall become due and payable. Should payment for taxes to the City of Ansonia become delinquent for more than sixty (60) days during the period in which an incentive program participant is receiving tax incentive benefits, such participant shall be notified in writing by the Ansonia Tax Collector of such delinquency. Such notice shall be by first class mail, certified with return receipt requested, and shall apprise the participant that it may forfeit its rights under this tax incentive policy if such delinquency is not corrected within thirty (30) days of the date of said notice. All correspondence under this section shall be directed to the Board of Aldermen.

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Section 7TRANSFERABILITY
Any tax agreement entered into pursuant to this policy shall not be subject to assignment, transfer or sale without the consent of the Ansonia Board of Aldermen. In the event that any such agreement is assigned, transferred or sold without said Boards consent, then the agreement shall terminate, as of the effective date of assignment, transfer or sale and the full amount of the tax that would otherwise be due to the City of Ansonia shall immediately become due and payable.

Section 8SCOPE OF AUTHORITY

Nothing in this policy shall require the City of Ansonia or the Ansonia Board of Aldermen to enter into a tax agreement.

Section 9 RETROACTIVITY PROHIBITED

This policy shall not be retroactive.

Section 10 POLICY REVIEW AND MODIFICATIONS

Once enacted, this Business Incentive Program policy shall be reviewed and modified as necessary by the Board of Aldermen no less than once in every five years.

Upon any change in the governing Connecticut General Statutes, specifically Sections 12-65b and 12-65h, as amended, this Business Incentive Program will be reviewed immediately and modified as necessary to ensure continued compliance with such statutes.