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March 31, 2014 Q&A

Bradley Development Zone adds latest member

Q&A talks about the Bradley Development Zone with Patrick McMahon, economic development officer for the town of Suffield.

Q: Windsor Locks' Multi-Mode Logistics was recently approved for inclusion in the Bradley Airport Development Zone. What was involved in locating the company in the zone?

A: Multi-Mode Logistics, which handles air freight, ocean, truck, rail and customs bonded shipments, recently purchased two buildings in Windsor Locks with over 100,000 square feet of space combined to expand its operation. One of the buildings had been idle for more than a year and so Multi-Mode qualified for the tax incentives provided through the Bradley Airport Development Zone.

A business qualifies for zone tax incentives if it acquires an idle facility or constructs, substantially renovates, or expands one and uses the facility for specified uses. Eligible uses include manufacturing; research and development related to manufacturing; servicing, overhauling, or rebuilding machinery and equipment for industrial uses; warehousing and motor freight distribution; and business services including information technology.

Q: What area encompasses the development zone? What are the advantages to locating within the zone?

A: The zone encompasses commercial and industrial property around Bradley in the four communities of East Granby, Suffield, Windsor and Windsor Locks primarily along the Rt. 20 and Rt. 75 corridors. Within the zone there are approximately 1,400 acres of undeveloped land that can be used for business expansion.

In addition to utilization of the second largest airport in New England, businesses locating in the zone benefit from easy access to I-91, as well as access to employees from two labor markets (Hartford-Springfield).

Zone benefits include property tax incentives for newly constructed, renovated, or expanded facilities. The exemption equals 80 percent of the improvement's assessed value and it is good for five years. Businesses developing or acquiring a facility in the zone also qualify for a five-year, 80 percent exemption on assessed value of machinery and equipment it installs in the facility as part of its development or acquisition.

Businesses can also qualify for a 10-year corporation business tax credit equal to the portion of the tax attributable to the facility.

Q: This makes five companies located within the zone. Why aren't more deals getting done?

A: It took some time to fully launch the zone with the transition of the airport operation from the Connecticut Dept. of Transportation to the Connecticut Airport Authority and developing the application procedures. However, since that time the zone has been instrumental in helping five companies relocate to, or expand around Bradley. The first company — Nufern from East Granby — expanded by 30,000 square feet. Nufern was being courted by other states and the existence of the zone incentives helped keep this high-tech company in Connecticut. Metal Finish and Supply expanded its building in Suffield's Mach One Industrial Park. Merchandising Partners and ITS both filled previously idle space.

Q: Are the successes of the zone tied into the airport itself? Does what it accomplishes in terms of passenger levels and flights make a difference, or is more of an impact felt by the airport's cargo business?

A: The airport and our four communities are symbiotic. Additional business development in the zone adds a greater passenger base for the airport. New routes and enhanced passenger amenities at the airport help the four communities attract businesses to the zone. It is a market reality that truck transportation is cheaper than air cargo. Nonetheless, we believe there is a niche for high-end, time-sensitive materials and so efforts will continue to attract businesses with those types of goods.

Q: What types of businesses is the zone going after?

A: As the zone is designed to help manufacturers and businesses that have a direct nexus to the airport, those are the areas we are focused on. So far the zone has helped Connecticut companies expand and improve their operations, but there is clearly an opportunity to market the benefits to attract out-of-state businesses to the area. n

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