By Kait Bedell
The Londonderry Town Council met on Monday, Dec. 20, and continued to hold a public hearing about the Woodmont Commons Tax Incentive program.
The conversation dealt with the adoption of Ordinance 21-03 of the development plan which would create the Londonderry Commercial and Industrial Tax Incentive Program (RSA 72:81) and it had previously been discussed two-weeks earlier, but the hearing was continued.
This proposed ordinance would allow the developers of Woodmont Commons a tax break on new developments. This would not include any already existing buildings.
Town Manager Kevin Smith said he perceives the proposal as an “economic development tool.”
“The way we look at it is, better to have at least 50 percent of more tax revenue from development tomorrow, so to speak, than 100 percent tax revenue from no development over the next who knows how many years,” Smith said.
During the meeting, Assistant Town Solicitor Mike Malaguti said that after the last conversation regarding the proposed ordinance, the Town Council talked about making several changes to the proposal.
Malaguti said that the council decided they would like be able to adapt both the duration and the amount of exemption. In order to do this, they talked about breaking the project up into three “tiers.”
The Tier One projects would allow developments of greater than $10M a tax exemption for their first five to ten years after completion at 40-50 percent.
Tier Two projects would need to be greater than five million-dollar and will have tax exemptions for five years of 30-40 percent.
Tier Three structures would need to be at or over $2.5 million and will be granted tax exemptions starting at 30-40 percent over five years.
Councilor Deb Paul said that she agreed with the tier system that had been discussed but that she thinks it should be broken into just two tiers with a more flexible timeline.
“I’m glad that you did this, but I think it needs a lot more work,” Paul said.
Paul said she thinks putting too many options out can get over complicated and that they should come up with a compromised, simpler two-tier system.
After each council member had an opportunity to speak, Chairman John Farrell opened up the discussion to the public.
Resident Bill Hamilton came before the council to share his opinion on the proposed tax incentive plan.
“It seems like we’re rewarding the big guys more than we’re rewarding the little guy,” Hamilton said. “We’re giving 10-million-dollar projects a greater relief than we would be giving to the small guy and I don’t know if that sits too right with me.”
Hamilton also expressed his concerns about being able to get businesses to fill up the Woodmont Commons.
Chairman Farrell said that the council does not have all the answers which is why they hold discussions such as these.
Resident Ray Breslin came before the council and said he was concerned about the project changing their vision from its initial intention.
Malaguti and Smith said that the Woodmont Commons are required by the development plan to apply before making any major changes to its current plan. This application would first half to go through the Planning Board.
Chairman Farrell concluded the meeting by saying he thinks that the council needs to continue to talk to people and develop a plan for the proposal before coming to a decision.
The Town Council will again continue the discussion at the Jan. 10 meeting.
Residents who wish to add to the discussion can do s by attending the next meeting .