You asked if the Department of Economic and Community Development (DECD) steers businesses to sites in certain towns.

DECD helps businesses find sites, but it considers a site's location only if a business requests funds to acquire or develop it. DECD regularly helps businesses find sites based on their criteria. It does so by searching “Site Finder,” a database containing property listed by their owners or real estate brokers. Site Finder is maintained by the Connecticut Economic Resource Center.

Because Site Finders does not include all available property, DECD supplements its search by requesting lists of possible sites from brokers and other contacts throughout the state, Legislative Liaison David Raccio explained.

DECD is currently developing a policy to identify and promote “shovel ready” sites, property that has been pre approved for certain types of development by state and local permitting agencies. DECD is doing this as part of the Responsible Growth Initiative, an interagency effort that encourages new development in cities and older towns where the supporting infrastructure already exists (http://www.ct.gov/opm/cwp/view.asp?a=2990&q=385462&opmNav_GID=1807).

By law, DECD must consider locational factors when businesses apply for financial assistance. Like other state agencies, it cannot fund a physical development project costing over $200,000 unless the project conforms to the State Plan of Conservation and Development (CGS §16a-31). Like the Responsible Growth Initiative, the plan attempts to balance conservation and development by steering new development away from sparsely populated rural areas toward densely populated urban centers where the roads, sewers, and other public infrastructure already exists.

The laws governing DECD's programs also encourage development in state-designated municipalities. For example, businesses requesting funds to acquire or develop a site in one of 17 Targeted Investment Communities (TICs), qualify for up to 90% financing under the Manufacturing Assistance Act. Those requesting funds to develop sites in other towns qualify for up to only 50% financing (CGS § 32-223 (c)).

Businesses building, expanding, or renovating facilities in a TIC also qualify for a five-year, 80% state-funded property tax exemption (CGS § 32-9r). Those developing property in other towns qualify for different property exemptions (CGS § 12-65b). But, unlike the TIC exemption, towns, not the DECD commissioner, decide whether to grant them. And, if they do, the state does not reimburse them for the revenue loss.

Attachment 1 provides more details on how the state uses geographic designations to target economic development assistance (2001-R-0700).

JR:ts