What the FILOT?! Episode 2

So when we started this little constitutional adventure, I ran into a word I thought was a typo: FILOT.

Robertson

I read it and thought, “Who typed this? Is that a fast pilot?” Nope.

It stands for Fee in Lieu of Tax.

If you say it fast, it sounds like something you yell before you make taxes disappear.

“FILOT!”

I said it out loud once and waited for the IRS to vanish. They did not.

Then I came across another phrase: tax incentives.

And in my best dramatic British accent I immediately thought, “HEY! THEY’RE NOT GONNA PAY TAXES!”

I pictured a company pulling up to Fairfield County like, “Hey, we’d love to build here. Also… we’re allergic to taxes.”

That is not what is happening.

A FILOT does not mean no taxes.

Instead of paying the normal property tax rate, a company signs an agreement to pay a structured, predictable amount over a set number of years in exchange for making a major investment. In other words, the taxes don’t disappear… they get restructured.

In 2025, Fairfield County adopted a resolution to negotiate a FILOT agreement tied to what’s been called “Project Mega Cable,” expected to bring more than $34 million in investment and at least 135 full-time jobs into the county.

So instead of asking, “Why aren’t they paying taxes?” the better question is:

How much are they paying?
For how long?
What are they promising in return?
What happens if they don’t deliver?

I think that’s a better question. Because incentives are not automatically good. And they’re not automatically evil. They’re tools. And tools depend on how you use them.

Here’s what surprised me: we’ve built an entire legal structure to recruit big companies.

Resolutions drafted.

Revenue projections calculated.

Timelines negotiated.

Lawyers involved. Nobody likes it when the lawyers get involved.

We can do all that.

But if a local entrepreneur in Ridgeway wants to open something ambitious, we basically say: “Good luck.”

Why?

If we understand how to structure predictable, accountable agreements for outside corporations…

Why can’t we structure predictable, accountable pathways for local businesses too?

Some people just want a shot at becoming somebody, and we could do a better job at helping them.

So, now that we know how incentives work—and how to use them to attract companies from somewhere else…

Can we get creative enough to use that same intelligence to build wealth right here?

Next week, we’re talking about why government moves slowly. And I promise you, that’s not by accident either.


Kenny Robertson, an educator and comedian, is a native of Ridgeway.

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