New Mini Mart Owner Requests Modest Tax Abatement
From the barren, pocked lot where a boxy Shell station once stood greeting residents and visitors exiting Interstate 84 onto Church Hill Road, a new, more aesthetically pleasing Colonial-looking mini mart is about to take shape according to its developers. But to achieve that aesthetic improvement amid a state roadway realignment project, the newest addition to Church Hill Road’s commercial strip is coming with some additional costs.
As a result, the owners of the planned Wheels gas station and mini mart — Consumers’ Petroleum of Connecticut, Inc — have begun the process of requesting what is described as a modest, three-year property tax abatement that Economic Development Coordinator Betsy Paynter said will amount to about $10,500.
Ms Paynter said the town’s Economic Development Commission recently approved the abatement under Newtown’s Business Incentive Program and the request was presented to and approved by the Board of Selectmen September 2.
Wheels President Christine Hogan was on hand with senior accountant Tony Tylutki Tuesday to make the formal request, and to answer question from selectmen. Ms Paynter outlined the request and potential benefit that will be applied to the planned 3,400-square-foot facility. All told, she said the project estimates its preliminary development costs to approach $2.4 million.
In a memo she used during the selectmen’s presentation, Ms Paynter noted that Consumers’ Petroleum has leased and paid property taxes on the property at 67 Church Hill Road for the past three years as the building was vacant. And the company and principals have been accommodating with Newtown’s traffic plans of the Edmond Road realignment project.
To comply with the road realignment, Consumers’ has reengineered its plans several times, built a retaining wall and reduced the business model from five gas pumps to three.
The applicant estimates approximately 15 new permanent jobs will be created locally as a result of this project, and the development will add value to the existing real property, which is currently assessed at $308,660 with a tax bill of $10,285.
She said if the value increases to approximately $650,000 — once investments are completed — the annual real property tax bill has the potential to increase to approximately $22,000.
The additional personal property investment is estimated at approximately $530,000, so the EDC has determined this project is eligible under the Business Incentive Program (BIP).
Using the program schedule, 31.25 percent of the increase in assessment may be forgiven for a period of three years. Should the real property assessment increase to approximately $650,000, the tax abatement would max out at approximately $10,500, divided evenly over the three years.
Selectman James Gaston asked how the modest tax abatement is an incentive and not a gift rewarding the company for developing the gateway parcel.
Director of Planning and Land Use George Benson reminded the selectmen that the project was not yet a “done deal,” while admitting that the pending business incentive request should have been brought to the attention of the first selectman’s office sooner.
He then responded to Mr Gaston, detailing the extraordinary expense the developers shouldered to accommodate the initial building process, while making the site ready for the relocation of Edmond Road that has bordered the property’s northern exposure. The roadway’s new location adjacent to the Pizza Palace where it will intersect with Commerce Road, will require Consumers’ to construct a “complicated” retaining wall that meets state DOT requirements.
“They’ve had to redesign the plans three times to accommodate that new road installation,” Mr Benson said.
First Selectman Pat Llodra said that while she has been in regular contact with the developers, she is anxious to see the site redeveloped because of the impression the current site gives to residents and visitors exiting Interstate 84 at Exit 10. Mrs Llodra said representatives at the DOT have been impressed with the assistance Newtown officials have provided in easing the process as plans for the Edmond Road relocation have played out.
Ms Paynter told the selectmen that Consumers’ is already invested in the community with two other gas stations, and the company is eager to complete its third project in town at that important gateway location. A rendering of the finished station and mini mart shows a Colonial-style building with a replica cupola on the roof and bright yellow clapboard and white-trimmed exterior finishing.
Ms Hogan said work could begin at the site as early as October 18.