South Windsor Town Council to Discuss Proposed Tax Abatement for Evergreen Walk Apartments

The South Windsor Town Council on Monday is expected to discuss a resolution providing a tax abatement to the the developer of the proposed apartment complex at Evergreen Walk.

Town Manager Matthew Galligan wrote in his manager’s report to the council that the estimated tax revenue the town will receive from the 200-unit apartment complex is about $600,000 per year.

Johnson Development, the developer, is looking for a $700,000 abatement spread out over the course of 7 years, or $100,000 annually.

“This will be a shot in the arm for Evergreen Walk for the shops and restaurants,” Galligan wrote. “Evergreen Walk can also be marketed to corporate headquarters when corporations are looking to move employees around the country.”

Galligan noted that a garage was being constructed on the site, which is adding to the project’s costs. In addition, tenants’ vehicles are expected to generate another $160,000 in tax revenue to the town, and building permits will also add another $425,000 to town coffers.

The major issue, however, is that the town does not typically offer tax abatements to residential developments.

“Although the units are residential rentals, it is a commercial development as there is very strong revenue and a strong company behind the project,” Galligan wrote to the council.