A Connecticut Innovations committee this week will consider approving up to $8.25 million in sales and use tax exemptions tied to a major Electric Boat redevelopment project in Waterford and a large off-campus student housing development near the University of Connecticut.
The quasi-public agency’s loan committee is scheduled to vote Wednesday on two proposals under the state’s Connecticut Sales & Use Tax Relief Program, which allows certain economic development projects to receive exemptions from the state’s 6.35% sales tax on capital equipment and construction materials, up to a specified amount.
The largest request would provide up to $5 million in sales and use tax exemptions for General Dynamics Electric Boat, tied to the renovation and repurposing of the former Crystal Mall property at 850 Hartford Turnpike in Waterford.
Electric Boat, the Groton-based submarine manufacturer owned by General Dynamics, acquired the mall property last year and has begun shutting down most of its retail operations as it prepares to convert the site into office and support space.
The company plans to use the property for engineering, training and software development functions, eventually housing several thousand workers, including some relocated from Groton and New London and others hired to support the Navy’s Virginia- and Columbia-class submarine programs.
The proposed tax exemption would apply to construction materials and other purchases associated with the redevelopment project.
The committee will also consider approving up to $3.25 million in sales and use tax exemptions for The Mark at Mansfield LLC, the developer of a large off-campus student housing complex near UConn’s Storrs campus.
The project, known as The Mark Mansfield, is planned to include about 1,350 student beds across several parcels near North Eagleville Road, along with about 7,000 square feet of retail space.
