Tax Abatement is Tough Pill to Swallow
Having to give a tax abatement to a company who did not request one originally, leaves a sour taste in one’s mouth.
When Costco originally planned to come to New Britain, the company asked for no favors. They were willing to pay all costs associated with the project.
Due to a 2 year delay, much caused by the prior administration under former Mayor Tim O’Brien, and then an entranceway controversy with the owners of Target, the City is looking to give Costco a tax abatement of between $1.3-$2.1 million.
If a tax abatement does not occur, Costco has implied it will go elsewhere.
It’s hard to believe a company would just pull away after so much time, effort and money spent. We must be aware that this could just be a negotiation tactic.
The question is, does New Britain want to call their bluff? It would be quite a risky move.
Let’s face it, we need Costco more than they need us. Extra tax revenue and new jobs are hard to come by during these difficult economic times.
Giving them a bit of a break, will definitely give us more money in the future. Although it is probably wise to approve the abatement, it is still a tough pill to swallow for all New Britain residents.