NORWICH – A recently renewed agreement that exempts Outsourcing Services Group from nearly $50,000 in local property taxes each year would have to be re-authorized if the company were sold, a county Industrial Development Agency official said last week.
At its monthly meeting June 27, IDA Attorney James Downey said potential buyers of the New Jersey-based OSG, who haven’t been named, have asked if the pharmacal company’s current Payment in Lieu of Taxes agreement (PILOT) for its North Norwich plant would automatically carry over to the new owners. He said it would not. However, if the new ownership planned to keep the operation as is, Downey doesn’t see why the board would not approve to continue the PILOT.
“I conveyed that if they planned to take over ownership, loot the company, lay-off the workers and leave Dodge,” Downey said, “that the board would not be inclined (to continue the PILOT).”
PILOTs are administered by the IDA, a state-sanctioned economic development arm. The program gives tax breaks to start-up companies or large employers to help create jobs or retain them.
The current tax break, granted in December, saves OSG-Norwich approximately $47,000 a year in property taxes, President Christopher Calhoun said. The company pays nearly $250,000 in property and school taxes annually.
Calhoun did not return a message seeking comment about the sale.
In June, Calhoun announced he had “strong confidence” the New Jersey-based company would be sold sometime this summer...