Date: Fri 17-Jul-1998

Publication: Bee

Author: STEVEB

Quick Words:

council-tax-abatement-Neumade

Full Text:

Council Allows Tax Abatement For Neumade Products

(with cut)

BY STEVE BIGHAM

The Legislative Council voted 5-4 Wednesday night to grant Neumade Products

Corp a 50 percent tax abatement on its increased assessments over the next

five years.

The total savings to the company will be about $180,000.

Ironically, the town does not have a tax abatement program, but many of the

council members said the town had a "moral" obligation to the Pecks Lane

company. Neumade owner Ronald Jones said the administration of former First

Selectman Bob Cascella offered to give Neumade an abatement if it moved to

town. In 1997, the selectmen approved a resolution that said it supported some

abatements for prospective businesses. However, the council, which serves as

the finance board for the town, was never involved in the discussions.

On Wednesday, the council was split three ways in its opinion on what kind of

an abatement it should give. Some, like council member Ed Lucas, agreed a 50

percent abatement was fair. Others felt the company deserved 100 percent,

while Pierre Rochman said no abatement was necessary.

"I spoke to Bob [Cascella]. He told me that no abatement was ever promised.

The only thing that he said was that Neumade would be eligible if it moved to

town. We've lived up to that," Mr Rochman said. "Morally, we owe nothing."

Mr Rochman said he did not think his constituents would be happy to know the

council spent several thousand dollars because "we said, gee, we feel bad for

the man."

"The abatement could have never been promised because the Board of Selectmen

is not empowered to do so," Mr Rochman said.

But other council members said something had to be done for Neumade Products.

They reasoned that the owner had discussions with the town in good faith, and

that the owner did not know who the town's authoritative board was.

"The town failed Mr Jones, and I think we have a moral obligation to do at

least something," noted Karen Blawie.

First Selectman Herb Rosenthal and selectman Joe Bojnowski agreed. Neither is

in favor of tax abatements for Newtown businesses, but both felt an exception

needed to be made in this case.

"If he was told there would be an abatement then we have an implicit

responsibility to the extent that the agreement was made," Mr Bojnowski said.

Tim Holian said a verbal contract was made, which should be honored in total.

"We either honor the contract or we don't. Sounds like we almost are," he

said, referring to the 50 percent abatement.

Community Development Director Elizabeth Stocker said the town never promised

anything to Neumade Products.

True, Mr Jones responded. However, he was told that he would receive an

abatement if he spent $3 million on his new building. He was even sent the

application papers to fill out for the abatement.

Sonics & Materials of Church Hill Road also recently opened its doors under

the assumption it would receive some kind of tax break.

Mr Jones stands to save nearly $35,000 per year, half of what he expected to

save.

"The town has not been honest with me since I arrived here," he said. "You all

keep talking about how, morally, you owe me this. It could be legally."

The new Board of Selectmen has since rescinded the tax abatement program, and

the Economic Development Commission is taking another look at the idea of

having tax abatements in Newtown.

Those voting in favor of the 50 percent abatement were Ed Lucas, Melissa

Pilchard, Joe Borst, John Kortze and Lisa Schwartz. Voting against it were Tim

Holian, Brian White, Karen Blawie and Pierre Rochman.