Waterbury officials are considering a nine-year tax abatement to support construction of a 23-unit townhome development on the city’s north side
Waterbury officials are considering a nine-year tax abatement to support construction of a 23-unit townhome development on the city’s north side.
The Waterbury Board of Aldermen is scheduled Monday to review a proposed tax agreement negotiated with a limited liability company operated by developer Yitz Rabinowitz.
According to a memo from Finance Director Michael LeBlanc, the incentive is necessary to make the project financially viable. The development is proposed for a 2-acre parcel on the north side of Boyden Street, across from its intersection with Blue Ridge Drive in the Bucks Hills neighborhood.
Under the agreement, the project would be taxed on 20% of its value for the first two years, with the taxable portion increasing by 10% annually until reaching full value in year 10.
Rabinowtiz, the owner of Boyden Ridge Development LLC, has told city officials there is a waiting list of families seeking housing in the area, which is lacking inventory, according to LeBlanc’s memo.
Rabinowtiz operates the Waterbury-based multifamily development and investment firm Axela Group.
Financial projections shared with aldermen outline plans for 23 townhomes, including six units of about 1,600 square feet and 17 units of roughly 1,659 square feet. Each would be three stories with three bedrooms and slab-on-grade foundations.
Monthly rents are projected between $1,850 and $1,950, generating about $511,500 in annual gross revenue.
Financial projections anticipate construction beginning this spring and concluding in the fall, with total costs estimated at $5.3 million.
