NORWICH – The City of Norwich Common Council will hold a public hearing for the proposed local tax exemption law for select city properties at 7 tonight during the regular Common Council meeting.
The proposed law, titled the 421-m Tax Exemption, would excuse private developers from taxation of higher property tax assessments that occur as the result of major renovations to a property. The exemption would be in place for a total 20 years at 100 percent for the first 12 years, then gradually decrease for the remaining eight years.
The property owner would still be taxed based on the assessment of the property prior to rehabilitation and would be subject to tax rate increases. Qualifying properties must have commercial space and room for at least three apartments, 20 percent of which must be available to families and individuals of low to moderate income.
Some city officials argue the program would provide incentive for private developers to purchase and restore dilapidated buildings in the city, including that at 42 and 44-46 N. Broad St., and the former Ungntine building on Hubbard Avenue.
Under the law, city legislatures will be able to pick and choose zones with qualifying properties.
The council will vote on the law following the hearing. – Shawn Magrath