Jaffrey hopes to stir economic development in the downtown by offering a new form of tax credit for those who renovate their buildings and add to their value.
On the March Town Meeting warrant, voters will decide whether or not to allow building owners in the downtown business and historic districts to qualify for RSA 79-E, a tax incentive program meant to encourage redevelopment of key areas of town.
Once in place, the program would allow a building owner who does a renovation of an existing building, and increases its value to seek Selectmen approval to have the building’s assessment freeze at what it was before the renovations, for a period of up to five years.
The renovation only qualifies if it is significant – it must cost 15 percent of the building’s value or $75,000, whichever is lower.
“The dollar impact may not be huge, unless you have a significant renovation of a huge building such as the [St. Patrick School], but it’s another tool,” said Jaffrey Economic Development Director Joanne Carr. “Anything to help inspire redevelopment is helpful.”
If passed, 79-E would be the second tax incentive to be put in place in the downtown this year.
About six months ago, the Jaffrey downtown was designated as an economic revitalization zone, which offers a short term business tax credit for economic development projects that improve infrastructure and create jobs. Businesses can file with the state for a tax credit based on the salary of the new jobs created, or a portion of the total investment, whichever is smaller.
Carr said no downtown businesses have taken advantage of the revitalization zone downtown, but it’s been used in other areas of town where it’s been in place longer, and has seen success in other towns, such as Concord, Portsmouth, Exeter and Milford.
Those downtown can take advantage of both incentives if their property resides in both zones.
“The Planning Board and Economic Redevelopment Committee have been interested in downtown redevelopment for 20-odd years,” Carr said. “Some projects take a long time to come to fruition, but in the next few years, we hope to see a turnaround.”
Downtown Jaffrey is already poised to see big changes, with the Park Theatre, which will screen films as well as provide space for live performances, expected to open in late spring or early summer. There is also the possibility of the state approving a roundabout and pedestrian improvements in the town center.
“Having the Park Theatre as an anchoring point will certainly be a bonus,” Carr said.
There are some buildings on Main Street that could use renovation work, as well as currently vacant properties such as the former St. Patrick’s School, which is for sale and could be renovated for other uses, Carr said.
The 79-E zone would also encompass some of the historic buildings on Ellison Street and Turnpike Road, which is zoned for small business, and could be a prime opportunity for someone to renovate a building to create a teahouse or bookshop, Carr said.
“There’s some cool buildings out there that could benefit from that,” Carr said.
Voters will have the opportunity to discuss the 79-E tax credit, and to vote whether to implement it in downtown Jaffrey, during Town Meeting, scheduled in Jaffrey for March 14 at 9 a.m. in the Pratt Auditorium at the Conant Middle/High School.
Ashley Saari can be reached at 924-7172 ext. 244 or asaari@ledgertranscript.com. She’s on Twitter @AshleySaariMLT.