The Waterbury Times|Published Feb 10, 2026

WATERBURY — Tax abatements have long been a tool used by the City of Waterbury to encourage development, housing creation, and business investment. While often controversial, abatements are legal agreements approved by the Board of Aldermen that temporarily reduce or stabilize property taxes tied to specific projects.

In most cases, the city agrees to freeze or reduce the tax increase created by new construction or major renovationsfor a defined period of time. After the abatement expires, the property returns to the full assessed tax rate.

These agreements are project-specific, negotiated individually, and typically justified by city officials as a way to spur redevelopment, create housing, or retain jobs.

How Tax Abatements Work in Waterbury

• Approved by the Board of Aldermen
• Often structured as tax stabilization agreements
• Commonly last 5 to 10 years
• Apply only to the increase in assessed value, not the original property value
• Used for housing, commercial redevelopment, and job-creating projects

Below is a non-exhaustive list of documented instances where Waterbury granted tax abatements or stabilization agreements, as reported in public records and regional business coverage.

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Documented Waterbury Tax Abatements

1. Kaybar Development Corp.

Date Approved: November 14, 2025
Project: Former St. Mary Catholic Grammar School
Details:
Waterbury approved a 10-year tax abatement for Kaybar Development to build housing targeted to hospital workers. The decision passed the Board of Aldermen despite opposition and sparked public debate over the length of the tax break.

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2. 77 Bank Street (Downtown Conversion)

Date Approved: September 9, 2024
Developers: Michael Batista & Alex Alicki
Project: Office-to-apartment conversion
Details:
The city approved a 5-year tax abatement after the downtown building was converted into residential units, citing the need to support adaptive reuse and downtown housing growth.

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3. Prospect Waterbury / Waterbury Hospital Properties

Date in Effect: 2019–2021 (reported through FY2023)
Details:
Waterbury entered into a multi-year tax stabilization agreement with Prospect Waterbury, fixing the hospital’s assessment value for several grand list years as part of a negotiated abatement arrangement.

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4. Caliber Collision Redevelopment (Former Dealership Site)

Date Approved: July 2023
Developer: Calito Development Group
Details:
The Board of Aldermen approved a tax stabilization agreement holding the property’s assessed value as part of a redevelopment deal. The agreement later drew scrutiny when job-creation targets were revisited.

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5. BMG Waterbury, LLC / Bluewater Property Group (Amazon-Related Site)

Date Approved: May 9, 2022
Project: Industrial redevelopment tied to logistics use
Details:
As part of a broader redevelopment and site-preparation deal, Waterbury approved incentives that included negotiated tax relief mechanisms connected to enterprise-zone style development planning.

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Why Abatements Matter

Supporters argue abatements:

• Encourage investment in distressed properties
• Help finance projects that might not otherwise happen
• Expand the tax base long-term once abatements expire

Critics argue they:

• Shift the tax burden to existing residents
• Lack transparency
• Are granted too frequently or for too long

What is not in dispute is this: Waterbury has repeatedly used tax abatements as a development tool, and each agreement represents a policy choice by city leadership.

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Bottom Line

Tax abatements are not rare, secret, or new in Waterbury. They are a recurring — and often debated — part of how the city approaches economic development. Understanding who received them, when, and why is essential to any honest discussion about taxes, growth, and accountability.

This report is part of The Waterbury Times’ ongoing coverage of local governance, taxation, and economic development.

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