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Q. What is the Information Technology Zone?
The Information Technology Zone is a 42-block area in the heart of downtown Waterbury that was established in 1998 as a result of legislation introduced by Senator Stephen Somma. The State of Connecticut committed $2.2 million to install advanced communication infrastructure and offer generous financial incentives for information technology companies locating in the Zone.
The Information Technology Zone is administered by Naugatuck Valley Development Corporation on behalf of the City of Waterbury and funded by the Connecticut Department of Economic and Community Development.
Q. What's being done to wire Waterbury?
The city is working with SNET and Adelphia Business Solutions to install multiple fiber optic rings in the Zone, as well as to offer DSL, ISDN, microwave and a variety of cellular and long-distance carriers. The fiber optic cable was installed in Fall 2000, now giving Waterbury high-speed Internet access, competitive rates and built-in redundancy for safe, reliable operation.
Q.What incentives are being offered?
For information technology companies located in the Information Technology Zone, the City of Waterbury is offering 100% tax abatement on information technology personal property new to the Grand List. This abatement can be granted for the life of the lease or for the life of the business operation in Waterbury.
Abatements are also available for real property taxes. Applied to increases in assessments as a result of physical work or improvements done, the abatements may range from two to seven years and are based on the cost of improvements ranging from $25,000 to $5,000,000.
In addition, there are millions of dollars in attractive financing ranging from $15,000 to $350,000 to eligible businesses:
- Information Technology Zone Incentive Fund
- Downtown Development Incentive Fund
- Regional Business Investment Fund
Funds can be used for property acquisition and improvements, equipment and fixture purchases, wiring offices and buildings, working capital, job training, architectural/design services and other approved purposes.
Some qualifying companies may be able to tap into all three funds. Most loans mature in five years or less.
Q.What businesses qualify?
If you use voice, data, video or other electronic transmission media to conduct your business, chances are you'll qualify for Information Technology Zone benefits. Examples range from transaction processing centers to Internet-related companies and software developers.
All kinds of businesses including restaurants, retailers and service establishments located in the nine-block area designated as the Downtown Incentive Fund Priority Area may be eligible for business financing assistance through the Downtown Development Incentive Fund.
Q.How do I apply?
We recommend starting with Nancy Stokes, who is serving as the Downtown Development Director for the Information Technology Zone. She has all the necessary application forms and can walk eligible applicants through the process. She is located at 83 Bank Street, 4th floor and can be reached by telephone at (877) 987-2879.
Q.How long does approval take?
Tax abatements are subject to Board of Alderman approval. The process can take anywhere from 2 weeks to 4 weeks depending upon the receipt of a complete application package. Every effort will be made to expedite the process.
Naugatuck Valley Development Corporation must approve all loans and grants. Once a complete application package is received, the approval process can take anywhere from 30 to 90 days.
Q.What's in it for me if my business doesn't qualify for any of this?
Whether or not your business can take immediate advantage of Zone benefits, the revitalization of our downtown will certainly be good for nearly every Waterbury business in the long run. A thriving business community will create growth opportunities for related services, contribute to the tax base and create a vibrant city that works well for business.
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