Groton — The town plans to file an application by the end of this month to create an airport development zone around Groton-New London Airport, which could provide tax breaks to manufacturing and other businesses that locate within a 2-mile radius and create a potential economic gain for the region.

If approved, the zone would make it possible for a manufacturing or airport-related business to receive a tax exemption of 80 percent of assessed value for five years.

The incentives would help attract employers, said Jonathan Reiner, director of the Groton Office of Planning and Development Services. “When we start talking about this section of Connecticut versus southern Rhode Island, that may not have the tax abatements, we can get the businesses here (and) we can get the jobs here.”

The benefits of a zone could extend well beyond Groton, said Tony Sheridan, president of the Chamber of Commerce of Eastern Connecticut.

“It has an impact through the job creation process. Look at the thousands that are going to work at (Electric Boat) and Pfizer and the casinos every day. They’re from all over the area and from all over the state of Connecticut,” he said. “So it’s not about the parochialness of the decision. It’s about the job creation.”

The town would first propose the zone to the state Department of Economic and Community Development, which would then forward its recommendation to the Connecticut Airport Authority.

If approved, the zone would apply to businesses within the zone that buy or lease space and those that renovate, expand or build facilities used for manufacturing, warehousing, distribution and other services needed for industry.

Town leaders had earlier discussed a legislative proposal to try to shift the boundaries of the development zone. State law limits airport development zones to a 2-mile radius around the center of an airport, and in Groton, one-third to one-half of that area is under water. The Thames River, reservoir and Long Island Sound cover large areas, and other space is occupied by state parks and land that cannot be developed.

Reiner said the town decided to try to get the zone approved first. If it needs to move the boundaries, it could tackle that later, he said.

Sheridan said this approach makes sense.

“None of this is carved in granite,” he said. “We can always revisit this as time goes by, to make sure that’s compatible with the environment and suitable to the area it’s in. What the town is doing is looking at all its options and this is a good choice.”

A program that encourages business and takes advantage of an asset is a plus, said Bill Smith, interim president of Greater Mystic Chamber of Commerce.

"It can only do good as an economic stimulus for our region. There is no downside," he said.

He added, "If I'm a developer, I'm looking for advantages and I'm assessing that area versus others. And if there are incentives that further the attractiveness of that area, I'll give it additional consideration as a businessperson."

The legislature created airport development zones and the Connecticut Airport Authority in 2011 to try to turn Bradley International Airport into an economic engine for the state. It was later expanded to allow development zones around the state's five general-aviation airports, including Groton-New London.

d.straszheim@theday.com