Mayor Cites Bleak Economic Climate in Loss of Apartment Deal

South Windsor Mayor Saud Anwar blamed the high cost of doing business in Connecticut as one of the factors for a third developer pulling out of a plan to build a 200 apartments at Evergreen Walk.

Anwar made his comments at the Monday night Town Council meeting as councilors removed a motion from the agenda to approve a tax abatement of $700,000 for Johnson Development in turn for the company investing an estimated $26 million through the project. The company pulled out of the deal earlier in the week.

“This is the third developer who has walked away from this project,” Anwar said.

Town Manager Matthew Galligan explained that all three of the previous developers had been from the South and that the high cost of doing business in the area.

“They tried some cost-control measures and eventually they called and said they were not going to move forward because they said it was just more expensive to do business in New England generally,” Galligan explained. “It’s something of a culture shock for them.”

Anwar said it was “symptomatic of a deep-seated issue that Connecticut is dealing with."

“When they look at Connecticut they are also looking at other states they can invest in. The return on investment is so much different and the headaches are so much more that they are walking away from Connecticut…” Anwar said.

The mayor said the state needs to come up with a comprehensive strategy including energy costs, labor costs, regulations and taxes.

“It is resulting in a lack of opportunity and a lack of growth in Connecticut,” he said.

While business growth in Connecticut is meager, Anwar said that South Windsor, too, is in a poorer state than its neighbors, with just 18 percent of the grand list supported by businesses. Windsor, in comparison, has 40 percent of its grand list made up by business.

Town must do the best they can, he said both to draw in out-of-state businesses and also to support those businesses that are already here. 

“We need to do more, no question," Anwar said. "But if the strategy is to get businesses from other towns, that’s not economic development. That’s not sustainable. If the state’s plan is to steal from other states, that’s not economic development either.”

Anwar said he and the town would be working with legislators and talking more about the subject in the future.