Economic Development Update
It is well known that Tolland derives most of its revenues from local property taxes and equally well known that there is an economic necessity to maintain and responsibly grow the commercial tax base in Tolland. Tolland needs additional tax revenue to maintain the quality of life and quality of services (i.e education, public works, social services) that drove many of us in choosing to raise our families here or to retire in Tolland. Economic development plans for the Tolland Village Area (TVA) and Technology Campus Zone (TCZ) utilize higher density to maximize the amount of real estate and personal property revenues from the very limited amount of available land in Tolland zoned for commercial development. Only three percent of the land area in Tolland is zoned for commercial and industrial use.
Without a comprehensive and coordinated approach to planning and development, the areas designated for development will continue to languish, yielding no economic benefit. Property values have declined and property taxes continue to rise. The opening of another package store or pizza restaurant doesn’t have a measurable impact on increasing the grand list. Tolland has $4M in debt service obligations and subject to referendum approval it is proposed in the next fiscal year to borrow approximately $6 million, which with State grants will address 9.3 million dollars worth of improvements to our school facilities. We need to address Tolland’s fiscal challenges before further erosion at the State level adds to our already high tax burden.
A development plan which includes a hotel, restaurant, housing, retail and transportation center described at the March 10th Tolland Town Council meeting targeting the western side of the TVA has an estimated cost of $100 million, with approximately 25% of that designated for infrastructure, e.g., roads, sewer, water, signalized intersection, etc. An investment of this magnitude is supported by the income that only a higher density development can generate. Stated differently, without higher density, the cost required for infrastructure improvements simply does not make economic sense.
The tax revenues generated by a development of this nature will include not only real estate taxes, but personal property and vehicle taxes as well. And while a formal development plan has not been submitted yet, preliminary estimates put the tax revenues in excess of $2 million annually (before any early stage tax abatements). And unlike single-family homes that are known to create a net negative adjusted tax impact to municipal finances, due primarily to the generation of school-aged children, a higher density multi-family residential use generates a positive fiscal impact. Office uses, such as those planned for the TCZ with multi-story buildings generally produce the greatest net fiscal benefit because of the minimal amount of town services and support required.
Density isn’t just structures, it is also people. Additional residents create opportunities and support for existing local businesses, e.g., grocery, food service, retail, daycare, etc., and stimulate interest in new businesses that locate in Tolland to meet increased demand. Tolland is often overlooked from a development perspective because our market is deemed too small to support many of the businesses the community desires. In effect, the development density of the TVA and TGV are the catalyst and foundation for future economic and community growth.
The residential component contemplated for the TVA will be a place to live, work and play for an entire multi-generational demographic. It will comprise young working couples and singles (workforce housing) including recent graduates just getting started in their career, commuters to Storrs, Hartford and the surrounding areas, retirees or seniors who want to downsize, remain in the community and have easy access to surrounding amenities. It will also include graduate students and faculty who may have spouses or partners who work locally in the Tolland area or within the greater Hartford metro region.
These designated commercial development areas in Tolland are ideally situated for this type of development activity, and will serve Tolland residents and others who may contribute to and benefit from the high-tech corridor that is being realized with the State’s investment in UConn.
Greg Williams, Tolland EDC Chair
Kevin Bouley, TECDC President