Tax Abatement: Priority or Point of Discussion?

In First Selectman Dave Campbell's absence, the Board of Selectmen kept last week's discussion over Priorities for 2010 to a minimum; but in a few words, much was said. Where the board agrees that open and honest debate over affordable housing will continue to hold utmost importance in the New Year, they disagree as to whether tax abatement in particular, is a particular priority.

Establishing a list of priorities is a process that carries significant weight, as the final document dictates where the town will focus energy and money. Tonight's discussion will mark the fourth and final round of discussion before the Board takes action on Priorities for 2010. Whether or not that list will feature tax abatement as a means to facilitate affordable housing, one can only guess.

For the first time, this year's list features Affordable Housing as a standalone category; strategies include resolving the status of 35 Leroy, review and implementation of the Affordable Housing Plan and the pursuance of a moratorium under 8-30g.

Selectman Callie Sullivan's proposition of a fourth strategy, "encourage possibility of tax abatement," came at last week's meeting. Sullivan had Acting First Selectman David Bayne's support, but Selectmen Jerry Nielsen and Jayme Stevenson weren't as convinced. They said that while tax abatement certainly warrants discussion, it is not a priority per se.

"I think we should talk about it. I don't know if it's this board's priority that we're trying to encourage tax abatement," said Nielsen.

In late October, the previous Board of Selectmen approved an ordinance that will—with the Representative Town Meeting's approval—provide the Town with authority to give tax abatement for low and middle-income housing projects. Just as affordable housing is a polarizing issue, so too is tax abatement, especially when coupled with the also-controversial redevelopment project at Allen O'Neill.

"Maybe the word is not 'encourage,' but 'explore,'" said Sullivan. "I'd like us to have a policy in terms of where we stand."

Town Administrative Officer Karl Kilduff said that a tax abatement policy would have to allow for considerable flexibility as each case will differ; moreover, every case will ultimately rest in the hands of the RTM.

Until legislation is passed, discussion of a policy is premature, said Stevenson. That's not to say it won't come up in board discussions.

"I think its somewhat captured in review of the Affordable Housing Plan," said Stevenson. "It's one tool, and I think it will come up in our discussion of the overall plan."

Bayne said he would like to see that "tool" on the record.

"I go with Callie. I think we should finesse the language a bit, and bring it up next Monday. I would be in favor in facilitating affordable housing through the use of tax strategies," said Bayne.

During public comment, RTM Member Robert Young (District III) said that the RTM Rules Committee's consideration over tax abatement was "already in the works."

At that Bayne closed the conversation.

"Its probably not fair to Dave to get deep into this topic without him being here."

The full Board of Selectmen will discuss and take action on Priorities for 2010 at their regular meeting this evening, Monday, Dec 14.