MONTPELIER — At the City Council meeting last night, a land developer was granted a 50 percent municipal property tax break for up to 10 years.
Frederick Connor and his brothers at Connor Group, LLP are in the process of building a 20,000 square foot office building at 575 Stone Cutters Way located between Turntable Park and Hunger Mountain Coop.
Connor requested, and was granted a 10 year tax stabilization contract. That means the municipal property tax bill will be approximately less $3,800 every year for a decade year.
Councilor Alan Weiss voted against the contract.
He said that the city has already given Connor $50,000 in parking space waivers. And he said, it's not as if Connor was going to pull the plug on the project if the tax stabilization request were rejected.
Weiss said that with the tax stabilization contract in place, it could take 25 years for the city to see any net tax benefit from the new office building.
City officials have said all along that one of the goals of developing Stone Cutters Way is to expand the tax base.
City Manager William Fraser countered Weiss' argument by saying that the city will not incur any new costs because of the building, in terms of snow removal and maintenance.
And he said that during the two public hearings on the matter, nobody came to speak against the tax stabilization contract.
Aside from a hot button issue, such as whether Montpelier police officers should carry Tasers, residents don't normally attend city council meetings.
In a press release, Connor said, "By approving this tax stabilization contract, the city of Montpelier is saying to prospective tenants of our building that the city is open for business."
Councilor Sarah Jarvis said that certainly Connor started the project with the hope that the city would cooperate with him.
The tax stabilization contract is for seven years, however, if Connor can show that there's a net increase of at least 25 new livable-wage earning employees working in the building, it will be extended to 10 years.
Those jobs have to be new to Montpelier, and not just moving into the new building from some place else in town.
The building could accommodate as many as 65 employees, and when complete it's expected to increase the value of the property from roughly $200,000 to $1 million on the city's Grand List.
This tax stabilization contract only applies to municipal taxes and does not impact the education taxes owed by the property owner.
--
Tax stabilization press release
Here's what the building will look like when complete