Rumford business does pay taxes
To the Editor:
A sad and unfortunate misunderstanding in the town of Rumford has recently come to my attention. It appears that some citizens have balked at the idea of supporting a new fundraiser designed to benefit the Area Youth Football Program simply because the generous fundraising program is sponsored by Amato's. The reason for the lack of support was being based on an untrue rumor that "Amato's does not pay taxes."
There is nothing that could be any further from the truth. Amato's is a tax-paying member of this community.
The accurate fact is that Amato’s was approached by the town requesting that they look at Rumford as a town to open a new business. One of the benefits that were offered to Amato’s was a Tax Incremental Financing or TIF. A TIF is an economic development tool that most towns in the state utilize as an incentive for new business investments in their communities in an effort to expand their tax base over a period of time. If an existing business were to expand the new taxes generated by the expansion could be sheltered with a TIF over a predetermined number of years.
Unfortunately, the misunderstanding regarding the TIF process has caused more harm than good. Let me explain.
Before Amato’s was built the properties that it is now sitting on paid a total of about $450 per year in taxes to the town. This year, the first year, because of the TIF the town offered Amato’s; they will be paying $970.54, double of what was being paid. In year two, Amato's will be paying about $2200, year three about $4000, year four $5800 and year five almost $7700. In year six, the TIF the town offered Amato’s to come to Rumford will be done and their tax bill will be in excess of $10,000.
The property Amato’s received from the town was not free like it has been stated in so many places but they in fact paid $22,000 for that property. Amato’s has not and is not looking for a free ride from the town of Rumford. They have paid their way every step of the way. Also lost in all of this is that they have hired 16 people to work at their restaurant and have already expanded by opening up an ice cream shop on the Cumberland Street side of their restaurant.
The owners of Amato’s have spent nearly $600,000 in their first 10 months of business in Rumford. This money has gone to local contractors, local insurance companies, wages, local vendors and town taxes as well donations and sponsorships to local school activities and charities.
Amato’s wants nothing more then to be a good corporate citizen for Rumford and the entire River Valley. They want nothing more then to give its customers good food and for them to have a good dining experience at their restaurant. They have shown they have a lot of faith in the River Valley by building a new business here. That faith should be rewarded by stopping in and seeing what it is they have built and what it is they have to offer.