Waterbury’s Board of Aldermen, meeting Monday, unanimously approved a five-year tax break for the owner of a downtown building recently renovated into 10 apartments and ground-floor retail space.
Development partners Michael Batista and Alex Alicki completed the $1.1 million conversion of a vacant, 13,000-square-foot office building at 77 Bank St., in the heart of downtown Waterbury, early last year.
After the renovation, the city assessor increased the property’s assessment from $199,710 to $513,240.
The tax relief will lower the property’s taxable assessment to $356,475 for fiscal 2026. After that, the assessment would increase annually, reaching $513,240 for fiscal 2031. The next citywide revaluation is targeted for 2032.
Waterbury Finance Director Michael LeBlanc estimates the deal will save Batista and Alicki about $48,000 over six years. Even with the abatement, the increasing value of 77 Bank St. will result in an extra $33,000 in taxes for the city in the same period, he said.
Mayor Paul Pernerewski said the tax relief is part of the city’s efforts to work proactively with developers.
“Mike Battista is one of the developers who is making a difference,” Pernerewski said. “We look forward to continuing working with him on other projects in the future.”
Batista said that he intends to seek similar tax relief for other downtown Waterbury projects underway, including:
- A conversion of the historic Farrington Building at the corner of West Main and Church streets into 29 apartments above three retail spaces. That project is nearing completion, and 10 units are already leased, Batista said. The property hosts a bakery and a hair salon on its first floor, and a local businessman has signed up to add a café by the end of the year, Batista said.
- Conversion of a 124-year-old, 16,980-square-foot retail and office building at 105 Bank St. into 25 apartments. Batista hopes to have that project completed by early 2025.
- Conversion of a 95,668-square-foot former high school-turned-office building at 95 Scovill St., into 100 apartment units. Batista and Alicki are partnered with Robert Annunziata in this project. Batista said he hopes to finish the first, 31-unit phase by the end of 2025.
Conversion of vacant downtown office buildings into apartments is a pillar of Waterbury officials’ strategy to revive the long-struggling downtown area. It is a common strategy for Connecticut cities, which have seen demand for office space drop precipitously.
Batista said he has found brisk demand for his downtown Waterbury apartments, with many inquiries from New York residents. Most of the interest is coming from young professionals, he said.
