New London ponders tax abatements for developers of new apartment complex

RJ Development + Advisors LLC, the would-be developer of a 203-unit building on the long-vacant parcel in the Fort Trumbull Municipal Development area, have negotiated with the city’s development arm, the Renaissance City Development Association, for a 20-year tax abatement plan to help cope with the estimated $3.78 million in remediation costs. The tax abatement plan starts with an 80% abatement in the first year the complex is completed, dropping to 40% from year three through year 20. RJ Development would pay an estimated $232,000 in annual taxes the first year of operation, a figure that rises to $574,000 by year three and throughout the remainder of the abatement plan. RJ Development would pay an estimated $61,128 for the two years the complex is under construction — taxes on the value of the land.

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