The Putnam IDA has a specific application and approval process for commercial projects that best ensures a timely and efficient consideration and implementation of incentives for approved projects.

The following is a general guideline:

Prior to Formal Application:

The Company interested in applying for incentives are strongly urged to contact the IDA prior to submitting an application for financial incentives. Doing so will serve to:

1. Determine if a project meets eligibility requirements, including the IDA’s contingency requirement that incentives are necessary for the project to go forward;
2. Informally review the project, as well as the applicability of various incentives;
3. Provide a preliminary determination of the amount of incentives to be provided
4. Confirm the timing and stages of the approval process.
5. Review the project application with the applicant.

Formal Submission of Application:

• Applicants must compete one complete set of an original application and additional required documents at least ten (10) days prior to the next formal IDA meeting.
• Application will be reviewed by staff for completeness and reviewed by Members of the Board and a meeting date will be set for inducement of the project.
• Regular IDA meetings are typically held monthly
• Note: To be considered for approval, all information requested in the application and support documents must be provided in advance of approval consideration. This includes:

1. 1. All applicable information in the application form must be completed.
   2. A Letter/statement detailing the ‘but for’ or why the benefits are necessary (sales and mortgage recording tax abatements and Payment in Lieu of Taxes for the project to assisted).
   3. Financial documents and all other required support documents/information to support need for tax incentives;
   4. Signed Applicant Attestation; and
   5. $250 non-refundable application fee.
      
      

•  Fees:  Upon a formal application being submitted, the IDA will provide a detail of the agency’s fees.  Incentive recipients are required to pay both the agency and agency counsel fees, both due at project closing and an annual fee of $250 to comply with State reporting requirements

Steps for Incentives and Project Approvals:

1. An inducement resolution is prepared by the Agency’s attorney; a date is set for the Agency Board to approval.
2. The applicant, or a knowledgeable representative, is required to attend the meeting and present its project and answer any questions.
3. If approved by the IDA, the inducement resolution is approved by the IDA, a date a public hearing* is set and the project and IDA attorneys prepare project documents.
4. Public Hearing: Following a fully executed inducement resolution, a public hearing notice will be published and a hearing will be held within the municipality of the project’s location.
   • At the hearing, members of the public may provide oral or written comment for or against the project receiving incentives.

Project Authorization:

• Following the public hearing and review of comments, the IDA Board confirms the specific details of the project and the specific incentives to be provided:
• The Authorizing Resolution detailing the terms and conditions of the project are adopted by the IDA Board.
• Once the Authorization Resolution is authorized and executed by the Agency and the Project Applicant, the Project may begin to utilize tax abatements.
• Often, but not required, the IDA closing is conducted at the same time that the applicant is closing on the property and/or financing.
  
  

Note: Apart from the IDA’s project agreements, a PILOT agreement (if applicable) must be approved by all participating parties (including the involved taxing entities). Given the timing of the taxing entities approval process, the PILOT closing need not be finalized at the time of the project closing date.