Killingly economic development director says sewer capacity is primary limit on growth; outlines land-use, workforce challenges

Jewel St. Clair, Killingly's economic development director, told the Vision Committee that the town's wastewater treatment capacity is the single largest constraint on business growth and redevelopment.

"My biggest obstacle right now is the wastewater treatment plan," St. Clair said during a presentation and extended question-and-answer session. She outlined how current-use property assessments under Connecticut's PA 490 program and other exemptions shrink the taxable grand list and shift costs to non-exempt property owners.

St. Clair said Killingly has roughly 30,000 acres and that "almost 9,795 acres" are enrolled in the PA 490/current-use program. She added that roughly 45% to 50% of acreage is either exempt or severely discounted when accounting for tax-exempt state and municipal properties, roads and waterways.

That mix helps explain why commercial and industrial parcels now constitute a large share of the town's assessed value: "About 42% of our share of our net grand list is commercial and industrial land," St. Clair said, describing that base as a stabilizing revenue source for the town.

But several committee members and business owners warned that a lack of "shovel-ready" parcels with utilities and the limits of wastewater capacity discourage large employers from expanding or locating in Killingly. St. Clair said earlier feasibility work showed the industrial park employed about 3,900 workers in 2021 and that hiring and transportation barriers persist: "Sixteen percent of our licensed drivers in Killingly did not own motor vehicles," she said, citing the study.

Local business owners described procurement and insurance barriers that make it difficult for small local firms to win direct contracts from large employers. One longtime contractor said big facilities increasingly demand large liability coverage that local subcontractors struggle to afford, and that many firms instead serve as first-tier vendors working under a larger contractor.

St. Clair described the town's recruitment and retention strategy as multi-layered. She said the town works closely with state and quasi-public partners, including the Department of Economic and Community Development and AdvanceCT, to market available space and connect prospective companies with property owners and permitting staff. She also highlighted downtown revitalization work and a DECD-funded Brickyard Project, a $1.8 million placemaking grant planned to break ground this spring, to support events and foot traffic in the commercial core.

Committee members asked for follow-up details on PA 490 eligibility, the PA 490 formula and the size thresholds for enrollment. St. Clair agreed to provide specific local eligibility criteria and historical mill-rate data that she had placed in the committee packet.

Action and next steps from the meeting included approving the minutes from the Sept. 24 regular meeting by voice vote and planning outreach: committee members agreed to distribute a survey at a Killingly Business Association meeting next Thursday at 8:30 a.m. at the Killingly Public Library and to explore coordinated outreach through schools and the sewer commission to inform the town's visioning process.

The committee adjourned after assigning outreach tasks and noting the wastewater treatment capacity issue as a top priority for any future economic development policy or infrastructure funding requests.