Politics & Government

Amazon Gets Tax Break Recommendation

Following an hour-long presentation and line of questioning Tuesday afternoon, Windsor's economic development commission voted unanimously to recommend the town council approve a 70 percent tax abatement for Amazon.com, which has applied to construct a 1.5-million-square-foot fulfillment center on Day Hill Road.

The abatement, in effect, would provide the company with a temporary tax break over a five year period, with the tax breaks averaging 70 percent over the abatement period.

The commission decided to recommend the abatement after determining the project proposal was eligible under the town's abatement policy, which required the project include taxable property and investment equal to or more than $50 million.

In addition, the commission looked favorably upon Amazon's presentation of jobs paying more than Hartford County's median salary for fulfillment center-related positions and its expressed commitment to build use high-quality materials to endure energy efficiency.

While the abatement, which is pending town council approval, would give the company tax breaks for half a decade, significant revenue from the fulfillment center's taxable property would still be collected by the town each year.

Windsor Economic Development Director Jim Burke calculated the town would collect $1.297 million in year one of the abatement, $1.198 million in year two, $1.077 million in year three, $995,000 million in year four and $854,000 million in year five.

The town would stand to collect $1.5 million the year after the abatement period expires, according to Burke.

Sixty percent of the average 70-percent abatement is for the amount Amazon is estimated to spend on building its proposed fulfillment center.

Five percent provides an incentive to pay equal to or higher than the Hartford County median salary for industry-related positions and the remaining five provides an incentive to use high-quality building materials.

Amazon Representatives said Tuesday it pays well above the local median figure for fulfillment center-related positions.

The project would create approximately 380 full-time positions, According to Amazon. Additionally, all 389 would receive full medical benefits, 401k contributions and tuition reimbursement at 95 percent for a job or non-job related degree.

All but a handful of jobs at the proposed Day Hill center would be new positions, and the company plans to work with the town and chamber of commerce to recruit local residents to fill those positions.

During Tuesday's meeting, Amazon representatives conveyed the possibility of spending more than $50 million on building the fulfillment center, which would make the project eligible for a higher tax abatement bracket per Town of Windsor policy.

If so, Amazon expressed interest in seeking a tax break averaging 80 percent over five years, with 70 percent of the abatement being related to development costs.

In addition to the a abatement recommendation, the commission unanimously approved a recommendation for a 50-percent reduction in building-permit fees.

Public hearings for the project are scheduled for the inland wetlands and watercourses and the planning and zoning commissions on Sept. 9 and 10.

A KTR representative said the project's impact on residential zones in town in non-existent.


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