Empty Windsor Offices Could Turn Into Apartments

WINDSOR, CT — Windsor officials are considering expanding the town’s tax-abatement policy to encourage the redevelopment of vacant office buildings and help certain apartment and mixed-use projects move forward.

The proposal was placed before the Finance Committee during a special meeting Tuesday. According to official town meeting materials, the committee was asked to decide whether proposed policy changes should be recommended to the full Town Council.

No change has received final Town Council approval.

Town officials said Windsor has significant vacancies and outdated office space, particularly in the Day Hill Corporate Area. At the same time, higher construction costs, interest rates, financing constraints and utility-planning expenses have made some proposed housing developments financially difficult.

Some developers have approached the town about possible public assistance, Economic Development Director Patrick McMahon wrote in a memo to the committee.

Under the proposed office-reinvestment program, a building would generally need to have been at least 45 percent vacant for 12 consecutive months.

A nonresidential reuse would require an investment equal to at least 20 percent of the property’s assessed value, excluding the cost of buying the building.

Office-to-housing conversions would also need to meet one of two affordability standards: at least 20 percent of the apartments restricted to households earning no more than 80 percent of the area median income, or at least 10 percent restricted to households earning no more than 60 percent of the area median income. The restrictions would remain in place for 40 years.

Qualified office projects could have their assessments held at their pre-redevelopment value during construction. After completion, the town could grant an abatement lasting up to five years and averaging no more than 50 percent over the full term.

The second portion of the proposal would cover new apartment and mixed-use developments in designated growth areas, including portions of Windsor Center, the Day Hill corridor, Waterside Crossing, Voya Village, Poquonock Village, the Windsor Shops area and the Kennedy Road planned-development district.

The largest proposed incentive would be available to projects reserving at least 20 percent of their units for households earning no more than 60 percent of the area median income. Those projects could receive abatements averaging as much as 75 percent over seven years.

Projects meeting less restrictive affordability thresholds could qualify for abatements averaging up to 50 percent over five years.

Officials would also consider the short-term loss of tax revenue, the eventual increase in the town’s grand list, employment benefits and additional costs for schools and municipal services. The town could require developers to demonstrate that their projects would not proceed without assistance.

The Finance Committee previously discussed the issue in March. Members supported moving forward with incentives for office redevelopment but expressed greater caution about subsidizing entirely new apartment construction while several Windsor housing projects were still leasing units.

One redevelopment in the pipeline involves 1 and 10 Targeting Centre and neighboring property on Bloomfield Avenue. Town records describe plans for commercial buildings and three apartment buildings. The Planning and Zoning Commission approved portions of the mixed-use development in May, although additional review of the residential component is expected.

The Hartford Business Journal reported on the proposed incentives Tuesday.

Any individual tax-abatement agreement would ultimately require Town Council approval.

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