Fortune 500 Company to Put Down Roots in Windsor?

Dollar Tree, Inc., the nation's largest true dollar retailer, is searching for a place to build its new distribution center, and Windsor is one of two finalists in the company's search.

According to the Office of Economic Development, Dollar Tree plans the construction of a $57 million facility that is estimated to bring 200 new jobs to the area "within five years" in either Windsor or Albany, New York, the other finalist.

Windsor is mainly being considered because of its location and an available workforce in the region, according to Windsor Economic Development Director Jim Burke.

"They're going to be serving a large region... Our location right off I-91, just south of the [Mass] Pike, and north of I-84 makes it a central location. We also have a large parcel that's relatively easily developed, and an available workforce," he said.

Which town Dollar Tree will host the company's planned one-million square foot facility, which will allow the company to fulfill its goal of expanding operations throughout New York, New England and into Canada, largely depends on finances.

Town documents say the company is seeking the equivalent of a 70-percent tax abatement over five years in addition to a 50 percent reduction in building permit fees.

Tax abatement agreements and discounted building fees are essential to a town's ability to attract large companies that bring sizable tax revenue with them.

The town has countered Dollar Tree's request with a tax abatement deal that represents an average of 75 percent over four years, with the a zero percent abatement in the fifth year. The town also proposes a 50-percent reduction of building permit fees.

Town documents also say that the town would stand to gain nearly $2.9 million in new tax and permit revenue over the four years of abatement, and $1.5 million on an annual basis in the years to follow.

The additional revenue would provide a boost to the town's grand list which has declined in percentage growth in recent years.

"This is a time when the tax base has been flat because of the recession," Burke said. "So this project will, when it gets through the abatement period, bring in $1.5 million each year."

Burke added that Dollar Tree is looking to begin site work as soon as possible, and, pending approval from the Town Council and the Town Zoning and Planning Commission, site work could begin as soon as April. The company hopes to complete construction by May 2013 and begin operating in June 2013.

Along with the town's plan for a four-year tax abatement period comes a requirement that Dollar Tree "will make good faith efforts to recruit town residents for employment, although it is under to obligation to hire."

Burke said the town sees Dollar Tree's employment practices as something that could greatly benefit the region.

"At full build out, they will have 200 employees at the is, and there are no part-time employees. Everyone works 40 hours a week, so it's pretty solid employment."

On February 23, the Economic Development Commission unanimously voted to recommend the town's plan to the Town Council for approval.

The plan will be introduced to council members on March 5, and it is expected to come before the Finance Committee before having action taken by council members on March 19.

According to meeting documents prepared by Burke, the town has sited a number of positives in the potential to host Dollar Tree's distribution center, including:

• The creation of 200 net-new, full-time jobs within five years
• The potential for a significant fiscal impact on the State of Connecticut and the Town of Windsor
• Dollar Tree pays its workers a "regionally competitive starting wage."
• The company provides opportunities for advancement
• After six months, hourly employees are guaranteed 40-hour work weeks and become eligible for fully-funded company health care.
• An estimated 475 construction jobs (in addition to the 200 Dollar Tree jobs created) will be supported through the construction project.
• 60 percent of construction materials are anticipated to be purchased in Connecticut.
• Increased property tax revenue to the Town of Windsor.
• The company "draws a large portion of its total employment base from economically challenged populations."
• The company has a history of establishing relationships with the community, including relationships with nonprofits and social-service agencies.

Dollar Tree is headquartered in Virginia, and the site being considered for construction is 105 International Drive.