During the most recent Town Council meeting, on Monday, Dec. 2, one of the agenda items discussed was on the town’s Commercial Industrial Tax Exemption program.
The program allows developers to get an up to 50% tax break for a number of years on new buildings in town and it is due to expire early next year.
“This is just a discussion for the Council’s consideration,” Assistant Town Manager/Director of Economic Development Kellie Caron said during the meeting.
Caron explained if they were to move forward with anything it would first have to go to a public hearing for the extension of the program. From there, they would have a second reading, where the Town Council would then vote on whether or not they want to extend the program or not.
“This program is set to expire Jan. 9, 2025,” Caron said.
Caron explained during the meeting that discussion began about the possible ordinance in 2022, and then the same year, it was enacted.
However, she explained that it was reviewed once again in 2023, to look at potentially expanding the eligibility criteria for the program.
Caron explained that ultimately the program is intended to offer tax relief for industrial and commercial properties by offering exemptions to local taxes for new and improved property.
“It’s intended to attract industrial and commercial businesses,” Caron told the Town Council.
One issue raised during the public input portion of the meeting, was about the lack of public hearings that have taken place for applications.
However, it was explained by Caron that they haven’t received any applications so they haven’t had to have public hearings.
“We have not received any formal applications for this program since its adoption,” Caron said.
When asked about whether or not she thinks its important to keep, Caron said its a tool they have in their “tool box” when it comes to economic development.
She also noted that while they haven’t had any applications so far, she said that they have received inquiries about it, including from New Balance, which didn’t take advantage of the program. She said that New Balance was able to take advantage of a similar program offered by the state called a PILT Program, which stands for Payment in Lieu of Taxes.
“I view it as a tool for economic development to attract businesses to our community,” Caron said during the meeting.
Caron noted there are about 20 communities across the state that have the same program.
It was also noted by Caron during the meeting, that they are required to have a public hearing before each of the proposals are able to be approved or not as part of the program.
Town Councilor Ron Dunn said he wanted to hear from the public, so he was in favor of moving it forward to a public hearing, before deciding on whether or not they should extend the program.
Town Council Chair Chad Franz also said he was OK with moving it forward to the next step.
The first reading on the policy is set for Dec. 16, with the public hearing set for Jan. 6.