Tag: Kelson Row

  • Tax Increases Likely Returning to Rocky Hill: The Hidden Cost of the “Ames” Deal

    Tax Increases Likely Returning to Rocky Hill: The Hidden Cost of the “Ames” Deal

    Residents face rising taxes and shrinking benefits

    As town budget season approaches, Rocky Hill residents prepare for yet another property tax increase – the sixth consecutive year for most homeowners. Many are questioning why their tax bills keep climbing while town services remain stagnant or face cuts. According to a recent presentation by the Tax Assessor at the February 18th Town Council meeting, Rocky Hill actually saw a 0.59% drop in total real estate assessed values and an overall grand list decrease of 1.26% year-over-year. This declining tax base, combined with unavoidable increases in town expenses, means one thing: residents will pay more, potentially while receiving less.

    Town departments have reportedly received direction from leadership to maintain zero budget increases, forcing them to cut services or positions to accommodate contractually obligated wage increases. Even as services and positions are squeezed, the tax burden increases:  the Board of Education’s 4.9% budget increase – driven entirely by essential salary and maintenance needs with no new teachers or programs – will further burden taxpayers.

    At risk is the decline of town services and personnel, including:

    • Fewer staff to maintain our treasured institutions; for example, the library’s budget is lower now than in 2018 and hasn’t filled vacant positions, yet we are asking our librarians to do more with fewer employees.
    • A reduction in overtime payments for public works the last two years has resulted in delayed leaf pickup, frustrating homeowners, and clogging storm drains. 
    • A badly deteriorated public pool, with costly repairs on the horizon. 

    Republican tax abatements favor developers over residents

    While residents face mounting tax pressures, the Republican-majority on the Town Council has made decisions that worsen the situation. The most glaring example is the infamous Ames/Kelson Row tax abatement – what many have called a “sweetheart deal” that benefits developers at taxpayers’ expense.

    The multi-million dollar redevelopment of the former Ames Department Store headquarters on Main Street should have significantly boosted Rocky Hill’s tax revenues. Instead, the Republican-majority on the Town Council unanimously approved (while Democrats unanimously opposed) a tax abatement that locks in the developer’s annual tax payment at just $80,000 for years, with full assessed value taxation not beginning until 2034!

    To put this in perspective: Rocky Hill’s newest apartment complexes (Montage and Alterra) are assessed at approximately $153,125 per unit, generating significant tax revenue. If Kelson Row’s 225 luxury apartments were taxed at comparable rates, they would contribute over $34 million to our grand list and over  $1 million annually in tax revenue when fully completed.

    Even with just the 85 leased and near-completion apartments, Kelson Row would be contributing at least $13 million to our grand list and approximately $379,666 in annual tax revenue – mostly offsetting this year’s real estate assessment decline.

    A chart showing the potential loss of funding from Kelson Row - nearly $1 million

    Democrats support common sense and fair development practices

    Democrats on the Town Council have consistently advocated for responsible development policies that ensure new projects contribute their fair share to town finances. Rather than excessive tax abatements that shift burdens to residents, Democrats support balanced approaches that both attract development and protect taxpayers.

    A Democratic approach to abatement would:

    1. Require fair taxation of new developments based on comparable properties
    2. Implement reasonable, time-limited abatements that don’t take a decade to payoff
    3. Focus tax incentives on projects that deliver clear community benefits beyond developer profits

    This balanced and consistent approach would increase Rocky Hill’s attractiveness to developers while ensuring they contribute appropriately to the community’s financial health.

    Rocky Hill Democrats support fair development that benefits all residents by ensuring equitable tax distribution and protecting residential taxpayers.

    The Kelson Row situation exemplifies the fundamental difference in governing philosophy. Rather than celebrating one-off development projects that don’t pay their fair share, Democrats advocate for sustainable growth strategies that strengthen our tax base for the long term, fund essential services, and prevent the continuous cycle of residential tax increases.

    What You Can Do

    As Rocky Hill faces another difficult budget season, residents have the power to make their voices heard:

    1. Sign up for our mailing list so you can stay informed on budget developments
    2. Attend upcoming budget hearings and speak during public comment periods
    3. Contact your Town Council representatives and:
      1.  express your concerns about continuous tax increases
      2. ask them to explain how the Kelson Row abatement benefits ordinary taxpayers
    4. Follow Democratic candidates who are committed to fair taxation and responsible development

    It’s time for Rocky Hill to pursue development that truly benefits everyone – not just developers receiving special tax treatment while residents shoulder the growing burden.