Broadening The Tax Base

To the Editor:

How much money can the town expect to receive in taxes from a large retail complex? Taxes paid in 2002 are a guide: Sand Hill Plaza, $340,272; Newtown Shopping Village (Big-Y area) $179,371.

As of October 1, 2003, one mill raised $2,787,493. Thus, we calculate that we would need eight Sand Hill Plazas to raise one mill in tax revenue or 15½ Big Y Shopping Villages.

The costs for municipal services provided these businesses consume between 30 percent of the taxes each pays (Ridgefield Study 1995) or up to 43 percent (New England Forest Consortium). Costs for providing sewers, water, etc, are bonded over many years, but costs may be assigned yearly. Either figure reminds us that commercial businesses, senior housing, multifamily housing, and single-family houses are not cost-free.

In deciding what type of economic development is most desirable for Newtown other factors are important. Increased traffic is obvious, but also important is the availability of workers to fill the newly created jobs. If the businesses located in the complex result in some of the newly employed workers moving into town, requiring construction of multifamily housing and more school classrooms, the gain in positive tax revenue declines sharply.

Commercial businesses tucked away in Commerce Park, Edmond Road, Barnabas Road, Curtis Industrial Park, and Peck’s Lane are visually unobtrusive and are welcome additions to Newtown. Over 1.5 million square feet of commercially zoned land is already available for development (HMA report 2002) and 100,000 square feet of existing commercial space is vacant (Multiple Listing 2/2004).

We don’t need Fairfield Hills to be commercialized; we need to keep the entire campus for community use, now and in the years to come. What we do need is to develop a strategy to attract highly desirable companies that will create good paying jobs, utilize expensive equipment, and require highly skilled workers.

Almost weekly, the Planning and Zoning Commission is asked to approve residential developments, grant variances, change zoning, etc. Their task is difficult, for they must weigh desirable growth versus all the negative aspects of each request. Over the years, they have done an excellent job, always keeping in mind the “quality of life” issue.

That’s why “It’s nicer in Newtown.”

Ruby K. Johnson

16 Chestnut Hill Road, Sandy Hook                             April 13, 2004