Economic assistance fund could benefit more Groton businesses
Groton — The town is revising the guidelines for its economic assistance fund to allow more businesses to take advantage of it.
The fund, paid for by the town’s capital improvement program, was created in the early 1990s and has a balance of more than $600,000. Guidelines for accessing the money haven’t been changed since it was established.
The Office of Planning and Development Services recommended this past week that the Town Council update the guidelines to increase the maximum allowed from the fund, redefine what it can pay for and more clearly state which requests will receive preference. The Economic Development Commission partnered with town staff to suggest the updates.
The new guidelines would allow a maximum grant of up to two years’ worth of anticipated local tax revenue from a project to be awarded. The prior maximum was one year. The program targets small businesses, particularly those in Groton’s key corridors, including the downtown commercial district along Route 1, Center Groton along Route 117, the Flanders Road industrial area, the area of the Route 12, Route 184 and Interstate 95 interchange and the Thames Street waterfront district.
"A lot of times these small business opportunities or expansion might not happen but for some of this gap financing," said Jonathan Reiner, Groton's director of planning. "By us giving this small grant for (these) public infrastructure improvements, literally within one or two years, the amount of money that we spent is being recouped back to the town in taxes that might not have been there otherwise."
Guidelines would give preference to businesses that create the most jobs, make innovative or nondefense-related products and those that seek infrastructure improvements that would benefit not only the business but others. Money could be used for public improvements including extending water and sewer lines, building sidewalks, installing street lights and making streetscape improvements.
The program is aimed at assistance to yield growth, said Paige Bronk, manager of economic and community development. “It could be an expansion, an addition ... there’s some growth associated. So we’re yielding increased tax benefit as a result of this growth, and that’s why it makes sense for us to engage in this public private effort,” he said.
“The second thing is, this is a reimbursement program. So the town has very little risk in agreeing to award an inventive. The business actually has to complete their part of the job and show proof and provide documentation before we will entertain any type of payment.”
The Town Council would have to grant final approve any awards of $10,000 or more. The planning director could grant administrative approval for grants of less than $10,000.
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