Windsor officials are considering expanding the town’s tax-abatement policy to cover redevelopment of languishing office buildings, as well as new multifamily development.
The town’s Finance Committee is scheduled to discuss a proposal spurred by persistent office vacancies, particularly in the town’s once-vibrant Day Hill Corporate Area. The committee must decide whether to recommend the proposed policy changes to the Town Council.
Developers have advanced plans to build various new apartments and convert vacant offices into housing in the town’s center, its Day Hill Corporate Area and other spots, Windsor Economic Development Director Patrick McMahon informed the Finance Committee in a memo.
But, McMahon writes, rising construction, borrowing and utility planning expenses have challenged the financial feasibility of some projects.
Some developers have asked about public sector relief, he notes.
Under the proposal, office redevelopment projects could qualify for tax abatements if buildings have been at least 45% vacant for a year and meet minimum investment requirements or are converted to housing with long-term affordable units. The proposal would freeze property assessments during construction and offer abatements averaging up to 50% over five years.
New apartment and mixed-use developments in designated growth areas, including Windsor Center, portions of the Day Hill corridor, Poquonock Village and other targeted districts, could also become eligible for abatements tied to affordability requirements. Projects providing 20% of units affordable to households earning up to 60% of area median income could qualify for abatements averaging as much as 75% over seven years.
