HARTFORD — A proposed new tax incremental financing district has
received final and unanimous approval from the Common Council.
The new TID No.12 will include about 68 acres located between the
city’s two industrial parks to the west of the city — the Western
and Dodge industrial parks. The council’s action came on Tuesday
night at City Hall.
The creation of the district will facilitate completing multiple
public service projects. The area is at the west end of Western
Drive, east of the terminus of Innovation Way and south of State
Street on the city’s west side. In a tax incremental financing
district, public works improvements can be made with the costs paid
back over time. Additional tax revenues created in the district are
used to pay the city back for the improvements. Only after those are
paid in full will the city, school district, county and technical
college districts begin to collect additional taxes from the area.
The Joint Board of Review will meet on Tuesday at City Hall starting
at 6:30 p.m. to provide a final recommendation on the proposal.
“TID No. 12 is to be an industrial district which could have a life
of up to 20 years,” said City Planner Justin Drew. “Given where we
are with the developer, we are not planning to have this certified
until 2020 so that will give us some extra time. We plan on having
everything finished before the end of the year, but we don’t plan on
sending everything into the state until after the deadline for this
year; otherwise we would lose a year of increment given that nothing
is likely to happen until 2020.”
Drew said officials feel the property is ideally suited for
industrial development because it would connect the city’s two
existing industrial parks and would create another access corridor,
this one running east to west, which would provide access from State
“The cost for all of the necessary improvements including sanitary
sewer, utility access and street work will be about about $6.5
million,” Drew said. “When all of the buildouts and developments are
completed it’s expected to have a value of about $45 million. But
for the existence of TID No. 12 this development could not have
Drew said city officials are proposing to pay for the costs of
completing the infrastructure work by borrowing, but will have the
sewer and electric utility hold their costs and be paid back with
the increment generated from the new development rather than
including them in the borrowing.
“There are up to 14 potential parcels that could be developed and
some of them are outside the current TID boundaries with three of
the properties in the district owned by the city on behalf of the
Hartford Area Development Corp.,” Drew said. “There are also two
other triangular shaped properties that are east and west that are
not included, but they could be included in this TID if the owners
say they are interested.”
Drew said some discussions have been held about those properties and
some interest has been expressed. He said officials are planning to
develop the land in two phases.
“We would be doing the borrowing next year for the first phase which
would allow us to develop about the first half of the properties to
be developed and served and then assuming development pushes it
would do the second phase of development in about five years,” Drew
City officials have been in discussions with one developer about the
possible construction of a major warehouse facility and then about
two years later constructing another similarly-sized building.
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