Incentives For Business & Property Development

The Town of Orange maintains two (2) meaningful tax incentive policies, designed to create new private 
investment in the commercial, retail and industrial areas of town. These incentives are based upon the 
value of assessments new to the Town as a result of business expansion or new construction. These 
investments include:

Tax Policy #1: Minimum $4,000,000 - 5 Year Abatement
Tax Policy #2: Minimum $15,000,000 - 7 Year Abatement

Whereas, the Town of Orange desires to attract high quality corporate concerns, which will have a low impact on 
the Town's infrastructure, and will produce a viable tax revenue stream, and
 
Whereas, Connecticut General Statutes annotated, section 12-65b, authorizes towns and cities in the State of 
Connecticut to enter into written tax abatements with any party owning or proposing to acquire an interest in real
property in its jurisdiction, or with any party owning or proposing to acquire an interest in air space in its
jurisdiction, or with any party who is the lessee of, or who proposes to be the lessee of air space in its jurisdiction,
pursuant to the guidelines and parameters set forth in CGSA section 12-65b.
 
NOW THEREFORE, THE BOARD OF SELECTMEN OF THE TOWN OF ORANGE DO HEREBY ADOPT THE 
FOLLOWING RESOLUTIONS AS A POLICY OF THE TOWN OF ORANGE:
 
Policy #1: If a quality corporate concern is willing to locate its office, manufacturing or retail facilities on property 
in the Town of Orange, or to improve such existing facilities located on property in the Town of Orange, and in
either event (new construction or improvement of existing facilities) is willing to engage in construction or
improvements and if this new construction or these improvements increase the gross taxable assessment of its
real property from these improvements by an equal amount to or greater than four million dollars ($4,000,000),
then the Town of Orange is willing to offer the following tax abatement incentives to such corporations and
businesses:

a. Such tax abatement plan shall in no event exceed five (5) years in length; 

b. If said corporation or business meets the conditions listed in paragraph 1, the Town of Orange will be willing to 
enter into a five (5) year tax abatement plan with such corporation or business, such that real estate taxes on
the increase on the gross taxable assessment from improvements to real property will be abated by:

      - 50% in the first year;

      - 40% in the second year;

      - 30% in the third year;

      - 20% in the fourth year; and 

      - 10% in the final year

 
Policy #2: If a quality corporate concern is willing to locate its office, manufacturing or retail facilities on property 
in the Town of Orange, or to improve such existing facilities located on property in the Town of Orange, and in
either event (new construction or improvement of existing facilities) is willing to engage in construction or
improvement and if this new construction or these improvements increase the gross taxable assessment
of its real property from these improvements by an amount equal to or greater than fifteen million dollars
($15,000,000), then the Town of Orange is willing to offer the following tax abatement incentives to such
corporations or businesses:

a. Such tax abatement plan shall in no event exceed seven (7) years in length;  
 
b.  If said corporation or business meets the conditions listed in paragraph 2, the Town of Orange will be willing to 
enter into such a seven (7) year tax abatement plan with such corporation or business, such that real estate
taxes on the increase in gross taxable assessment from improvements to real property will be abated by:

       - 70% in the first year;

       - 60% in the second year;

       - 50% in the third year;

       - 40% in the fourth year;

       - 30% in the fifth year;

       - 20% in the sixth year;

       - 10% in the final year

There shall be no abatement of taxation on any personal property owned by said corporation or business;

In the event, however, that such corporation or business, within ten (10) years after entering into such a tax
abatement agreement with the Town of Orange: (1) substantially reduces its operations on its real property in the
Town of Orange; (ii) attempts to assign its rights under this agreement; or (iii) sells or otherwise transfers the Real
Estate, said corporation or business shall rebate to the Town of Orange a portion of the Tax Savings realized
under the agreement, in accordance with the following schedule:

      - On or before the fifth anniversary: 100%

      - On or before the sixth anniversary: 90%

      - On or before the seventh anniversary: 80%

      - On or before the eighth anniversary: 70%

      - On or before the ninth anniversary: 60%

      - On or before the tenth anniversary: 50%

All tax abatement agreements entered into pursuant to this ordinance shall; (a) comply with all Connecticut State
laws and statutes; and (b) be reduced to a written agreement; the terms of which shall be agreed upon by the
corporation or business and the Town of Orange, acting through its First Selectman.