Amazon No Longer Asking CT Town for Tax Subsidy

In a surprising move, Amazon.com reportedly is no longer seeking a tax break from a Connecticut town. According to the Hartford Courant, the Seattle-based retailer has withdrawn its request for a tax abatement and reduced building permit fees from Windsor, Connecticut, which it had asked for in exchange for opening a 1.5 million-square-foot distribution facility in the town. The Courant says Amazon’s decision has caused “confusion” among town officials over the company’s intentions.

Amazon had been looking for a five-year, 80 percent property tax abatement and a 50 percent reduction in building permit fees as part of its proposed distribution center in Windsor. Officials for the online retailer met with the Windsor Economic Development Commission on August 27 to explain their request and to provide more details about the distribution center.

According to the Courant, Amazon has agreed to spend $50 million on a facility in the state and would hire 300 people, said Kevin B. Sullivan, commissioner of the state department of revenue. Windsor is one of the “few finalists” for the Amazon.com facility.

The Courant noted that the project developer, KTR Capital Partners, is still working to garner land-use permits and the Windsor Inland Wetlands and Watercourses Commission gave the project the go-ahead on Monday, September 9.  A purchase agreement for the 90-acre plot is also still in place.

“It’s hard to read because the developer is continuing with the land-use process, but it certainly gives me pause,” Town Manager Peter Souza, who first learned of the development on Friday, told the Courant.

Prior to Amazon withdrawing its request for an abatement, Windsor Deputy Mayor Alan Simon had suggested that the town “drive a harder bargain” concerning tax subsidies, “including commitments to ‘higher wages, local hiring, and accountability clauses,’” the Courant said.

Simon told the Courant that he would still like to see the company settle in town, but explained that Windsor was not a desperate community. “We’re in good shape.”

Amazon did not respond to the Courant’s requests for comment.