Patrick-Murray Administration Approves Economic Development Projects That Will Create & Retain 3,631 Jobs In Communities Across the Commonwealth
BOSTON --Wednesday, December 21, 2011 – The Economic Assistance Coordinating Council (EACC) today approved 14 projects for participation in the Economic Development Incentive Program (EDIP). The projects will create over 719 new jobs and retain 2,912 existing jobs, in addition to leveraging over $80 million in private investment and supporting construction projects across the Commonwealth.
"The Patrick-Murray Administration has continued to make creating jobs and growing our economy and today has offered support for projects that will keep people employed and add new workers to the Massachusetts workforce, attract significant private sector investment and spur economic activity throughout the Commonwealth," said Housing and Economic Development Secretary Greg Bialecki. "These targeted investments are consistent with that goal and part of an overall economic development strategy designed to continue to help Massachusetts' continue to recover faster and stronger than most of the nation and position our businesses and cities and towns for long-term growth and prosperity."
The EDIP is the Commonwealth's investment tax credit program for businesses. In 2009, Governor Patrick, Secretary Bialecki along with the Legislature significantly reformed the program and as a result, EDIP has become one of the most effective programs helping businesses grow in Massachusetts. Since these changes, 81 projects have received approval, leading to the creation of 4,979 new jobs, retention of 16,286 existing jobs and leveraging of $2.7 billion in private investment. The EACC has assisted 46 manufacturers through the EDIP program and supported 35 projects in Gateway Cities.
For calendar year 2011, the Economic Assistance Coordinating Council has approved a total of 44 projects for participation in the Economic Development Incentive Program (EDIP). The projects will create over 2,504 new jobs and retain 7,308 existing jobs, in addition to leveraging over $1.3 billion in private investment and supporting construction projects across the Commonwealth.
The EACC approved the following projects at today's meeting:
Enhanced Expansion Projects (EEP)
Red Hat, Inc. (Westford) - Founded in 1993, Red Hat is the leader in enterprise Linux and is the most recognized open source brand in the world. They serve global enterprises with technology and services made possible by the open source model. In 2002 the Westford location became their Global Engineering Headquarters. [Corporate Headquarters is in NC.] They are working with Gutierrez Companies on a build to suit facility in close proximity to HQ which is currently at capacity. Red Hat will create 181 new jobs and retain 233 current jobs. Total private investment for the project is expected to be over $50 million. By the Commonwealth designating the site an Exceptional Opportunity Area, the Town of Westford was able to offer tax increment financing estimated to be approximately $927,000. Red Hat facilities in CA and NC were also under consideration. The Economic Assistance Coordinating Council (EACC) approved tax credits valued at $3,397,500.
IPG Photonics Corp. (Oxford) - Founded in 1990, IPG Photonics Corporation pioneered the development and commercialization of optical fiber-based lasers for use in a wide range of markets. It is now one of the world leaders in the development and manufacturing of high-performance fiber lasers and amplifiers. The expansion plans call for constructing an 101,500 sq ft building to support manufacturing. The private investment is expected to be $18.1 million: $11.8 million for construction costs and $6.3 million for new machinery and equipment. The company will create 175 new jobs and retain 600 jobs and the TIF awarded by the Town is estimated to be valued at $431,000. The company was awarded $1,749,750 in investment tax credits from the EACC Board.
Expansion Projects (EP)
Harbar LLC (Canton) - Harbar is a manufacturer and marketer of tortillas and specialty flatbreads for the food service and retail markets, such as Stop & Shop. The company was founded in 1986 and after 20+ years Harbar has consolidated its position with sales across the Eastern and Midwest US, as well as selective international markets. The objective of the expansion project is to increase production capacity for the manufacturing of tortillas, wraps and other baked goods by acquiring an 84,000 SF vacant building and preparing it for production. The project adds capacity to the company's current manufacturing capacity, which is supported by an EDIP project certified in 2005. Harbar plans to create 30 new jobs while retaining 90 jobs and making a private investment of over $10 million. The project is contingent upon the Town of Canton granting the company a TIF at their next Town Meeting in 2012. Once the TIF is in place Harbar will have access to $553,020 in investment tax credits from the Commonwealth and approved by the EACC Board.
Classic Envelope (Douglas) - Founded in 1988, Classic Envelope is a manufacturer of envelopes and paper products, including standard-sized, custom, window, and foil-lined envelopes and related products and services. The company produces over 600 million envelopes per year and sells their products wholesale to commercial customers throughout New England, NY, PA, and NJ. Classic Envelope's business has been growing substantially and it does not have the capacity to grow any further in its current leased 90,000 sq ft space. Over the last 2 years the company has evaluated several properties within MA, RI and CT communities. The property the company has identified to purchase has 316,000 sq ft of floor space in Douglas that suits current as well as future growth needs. The company plans to conduct extensive renovations and purchase several new machines. In this expansion Classic Envelope plans to hire 40 new employees and retain 76 jobs. The private investment is expected to be over $4.1 million. The Town of Douglas granted a TIF to Classic Envelope valued at approximately $40,000 and the EACC has approved of 220,721 in investment tax credits.
Gorton's (Gloucester) - Gorton's of Gloucester is a well recognized brand producing fish sticks and other frozen seafood for the retail market in the US. Growth within Gorton's stand-up, re-closeable bag seafood product is driving the need to invest in additional production capacity. They plan to install the new manufacturing line in the Gloucester facility after also considering their other facilities in Brunswick, GA and Lachine, Quebec, Canada. To do so the City of Gloucester approved a TIF of $22,000 and Gorton's has agreed to hire 20 new employees and retain the existing 268 jobs. The private investment is expected to be $14 million. The EACC Board approved $500,000 in investment tax credits.
Custom Carbide (Springfield) - Founded in 1980, Benchmark Carbide (a division of Custom Carbide Corporation) is a small manufacturing company specializing in high-end quality carbide milling products, such as end mills and reamers. The company is located in Springfield, a Gateway City. Their products are sold through industrial distributors throughout the continental United States and in Canada. This project involves purchasing a 30,000 sq ft abandoned building in the downtown vicinity that will allow this property to be put back on the City's tax roll as the building has been owned by the United States Postal Service (USPS) and did not generate local property tax revenue. The City of Springfield has offered a 5 year STA valued at $60,000 with the company committing to creating 21 new full time jobs, retaining 27 full time jobs and having a total private investment of $2,767,000 of which includes $2 million of new equipment. The Economic Assistance Coordinating Council has awarded this project an investment tax credit of $266,700.
TIF-Only Project: the following project will not receive an EDIP- Investment Tax Credit
Cape Cod Co., Inc. (Abington) - Cape Cod Lumber, headquartered in Abington, is a leading distributor of building products and operates out of an 80,000 sq ft facility along with a smaller warehouse in Mansfield. They need to expand and have purchased a new property in Abington and will construct a 132,000 sq ft facility which will consolidate the Mansfield site too for improved efficiencies. The total private investment is expected to be $7.5 million. The company will hire 5 new employees while retaining the existing 92 employees. The Town of Abington approved a 10 year tax increment financing award for both real and personal property valued at approximately $500,000.
Conserve Through Control, Inc. (Adams) -- The company installs building automation systems for Schneider Electric of North Andover. Their sales territory covers Western MA, and Western & Southern VT. With sales increasing they have outgrown their current leased space of 1,800 sq ft. They purchased 2.75 acres and will be constructing a 9,000 sq ft building to meet sales demands. They plan to create 2 jobs, retain the 9 existing jobs and make a private investment of $1.2 million. The Town of Adams approved a 5 year TIF of $65,000.
MAR Seafood Inc, (Attleboro) - MAR Seafood, Inc. is a family-owned wholesale seafood packer and distributor. They buy, clean, package and distribute to supermarkets, seafood wholesalers and various food service vendors. MAR has outgrown its current location in Warwick, RI and plan construction of a new state-of-the-art 30,000 sq ft facility located in the Attleboro Industrial Business Park. The company will relocate 35 net new jobs to the Commonwealth and make a private investment of $2,322,500. The Town of Attleboro has approved a 20 year TIF of approximately $170,000.
Cell Signaling Technology, Inc (Beverly) -- Established in Beverly, MA in 1999, Cell Signaling Technologies is a privately-owned company with over 370 employees worldwide. They provide innovative research tools that are used to help define mechanisms underlying cell function and disease. They are planning to expand production capabilities into an 85,000 sq ft building that has been vacant or severely underutilized since the former tenant moved out in 2005. The building needs significant tenant improvements and upgrades. Cell Signaling expects to make an $18 million private investment, create 100 new jobs while retaining the 306 employees they currently have in Massachusetts, for which the Town of Beverly has approved a 10 year $91,000 TIF.
Kronos, Inc. (Chelmsford) - Kronos' core business is the development and servicing of human resource management systems for organizations. Their products and services help manage every phase of the employee relationship including staffing, developing, deploying, tracking, and rewarding the workforce. The company's model is aimed at reduced costs, increased productivity, better decision-making, improved employee satisfaction, and alignment with organizational objectives. Kronos will continue to maintain their presence in Chelmsford by signing a 6 year lease (co-terminous with TIF Agreement offered by Town). Kronos will be retaining the 1,048 employees currently located in Chelmsford and be making a private investment of $2.5 million for which the Town approved a TIF of approximately $200,000.
Hamilton Storage Technologies Inc. (Franklin) - Privately-held Hamilton Storage Technologies is a leading worldwide supplier of automated sample storage and retrieval systems. Hamilton Storage Technologies serves customers in academic and private research laboratories, pharmaceutical and clinical diagnostic companies, and governmental institutions. The company plans to construct, own, and occupy a 51,000 sq ft, state-of-the-art, environmentally friendly building. Construction is expected to begin in December 2011, with completion projected in late 2012. Upon completion, the company will move its existing engineering, back office, and technical support functions. Hamilton Storage will retain its 50 current jobs in Franklin and make a private investment of $16 million. The Town of Franklin approved a 10 year TIF valued at approximately $190,000.
HB Software Solutions Inc. (Lowell) - HB Software Solutions is a privately-owned business that is a web and mobile service provider for government programs. HBSS develops programs and algorithms for transportation providers that reduce their costs, and create efficiencies, saving fuel and reducing each agency's carbon footprint. The company plans to purchase and renovate an abandoned building in Lowell that has proven to be challenging for the City. The company will build a data center onsite to service their existing customers, as well as have the ability to attract new customers. The data center will allow HBSS to offer web based, cloud computing to any agency that needs logistic assistance, such as regional transportation agencies and municipalities that run fleets of vehicles. The company will hire 10 new employees, retain their 15 existing employees and make a private investment of approximately $2.6 million. The City of Lowell approved a 10 year TIF of $80,000.
Comfort Home Care LLC (Methuen) - Comfort Home Care is a private home health and nursing agency focused on promoting the wellness and independence of their clients in the community as an alternative to more structured settings. CHC's goal is to prevent hospitalization or ease the transition home from acute or rehabilitative care. The company plans to renovate the former Fox Nisson site at 147 Pelham Street in Methuen. This site serves as a gateway into the City of Methuen, and also entering Massachusetts from New Hampshire off Route 93, and has been substantially underutilized for many years. The company plans to hire 100 employees while retaining the 98 current employees. They estimate the private investment to be almost $6 million. The City of Methuen has approved a 10 year TIF valued at $375,000.