Issue link: https://nebusinessmedia.uberflip.com/i/1547355
HARTFORDBUSINESS.COM | 17 2026 CONNECTICUT COMMERCIAL OPPORTUNITY INDEX | HBJ incentives to attract commercial development additional property tax revenue generated by new development in a designated area to help pay for public improvements there. For example, additional taxes from new apartments or offices could be directed toward roads, sidewalks or utility upgrades in the same district. Kagan called TIF "incredibly valuable" to Stamford's growth. Three of the six municipalities interviewed by the Hartford Business Journal — Stamford, Windsor and Groton — currently use TIF. The other three have considered it but have not moved forward. Groton has established two TIF districts, including one covering its downtown. Windsor created a town center TIF district in 2022 and used it to support a credit enhancement agreement for Founders Square, a mixed-use apartment and commercial development. "That's been an exciting new addition to our town center," McMahon said of the new multifamily community. Norwalk has explored tax increment financing but has not used it, said Habansky. The city has instead pursued business improvement districts, which collect additional assessments from property owners within a defined area to pay for services and improvements there. Hartford is exploring the use of tax increment financing, Benjamin said. A view of Harbor Point in Stamford's South End, where tax increment financing helped fund infrastructure supporting the redevelopment of former industrial properties into housing, offices and other uses. Photo | CoStar OTHER TOOLS Municipalities also use zoning changes, grants and other programs to encourage development. Stamford created a University and Research Overlay District that relaxes certain height, density and parking requirements for qualifying university and cultural projects in parts of downtown and the South End. The district is intended to help UConn's Stamford campus expand while also encouraging development by institutions such as museums, libraries and theaters. Benjamin credited the Capital Region Development Authority (CRDA) with helping make many Hartford projects financially viable. The quasi-public state agency provides gap financing to cover the difference between a project's cost and the amount available from private lenders and investors. Benjamin said most multifamily development in Hartford would not happen without that assistance. CRDA's approach became the model for the Connecticut Municipal Development Authority, which provides similar financing and technical assistance for downtown and transit-oriented development in municipalities outside the Hartford region. Groton's other economic development tools include discounted purchase prices for excess town-owned property, an Economic Assistance Fund for businesses and a federal opportunity zone, according to Economic and Community Development Manager Corinne Piazza and Director of Planning and Development Services Jonathan Reiner. Groton's Economic Assistance Fund helps pay for public infrastructure associated with new development, including utility extensions, road and sidewalk improvements, traffic controls and streetlights. Danbury has secured state grants for downtown streetscape improvements, part of what Santos described as "cobbling together" available resources to make projects work. MOVING THE NEEDLE While many cities and towns use incentives to attract businesses and development, opinions differ on how much they influence investment decisions. McMahon described incentives as "just one of the factors," saying businesses place greater weight on access to transportation and workers. Santos said their importance depends on the developer and project. Benjamin placed greater weight on incentives. Outside major East Coast markets such as New York City and Boston, developers in much of Connecticut often will not proceed without assistance to offset site-preparation costs and uncertainty about future property taxes, he said. Habansky said Norwalk focuses instead on transportation access and quality-of-life investments to make itself more attractive to businesses. "We make our community better," he said. "We're going to become more attractive."