EACC APPROVES ECONOMIC DEVELOPMENT PROJECTS CREATING & RETAINING 683 JOBS ACROSS THE COMMONWEALTH
"Today, the Patrick-Murray Administration offered its 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 types of targeted investments are part of an overall economic development strategy designed to speed Massachusetts' economic recovery 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 and the Legislature reformed the program so that instead of awarding a fixed 5 percent investment tax credit (ITC) for all projects, the EACC now has the flexibility to make awards based on the applicant's job creation and retention commitments as well as its level of sales outside of Massachusetts. Since January 2010, 67 projects have received approval, leading to the creation of 4,260 new jobs, retention of 13,374 existing jobs and leveraging of more than $2.6 billion in private investment. The EACC has assisted 36 manufacturers through the EDIP program and supported 21 projects in Gateway Cities.
The EACC approved the following projects at today's meeting:
Manufacturing Retention Projects (MRP)
Magmotor Technologies, Inc. (Worcester) - Magmotor is a manufacturer of electro-mechanical motion control solutions for equipment manufacturers serving several high-tech markets - electric and hybrid vehicles, medical devices and semiconductor processing. The company plans to re-locate its manufacturing facility from West Boylston to Worcester, going from 14,000 sq ft of leased space to 43,500 sq ft of newly owned space. The expansion will bring manufacturing of some parts currently out-sourced to China to be manufactured in the US. Magmotor will create 45 jobs, retain 14 jobs and make a $4,375,000 private investment. The EACC has awarded $600,000 of EDIP-ITC to this important project that will be creating new manufacturing jobs in the Gateway City of Worcester. The City of Worcester granted a Tax Increment Financing (TIF) incentive of $514,553 over 12 years.
Expansion Projects (EP)
Bevovations, LLC (Leominster) - Bevovations is a recently formed company that is acquiring the cider-making operations of Carlson Orchards, Inc. of Harvard, MA. They will be relocating to a larger facility in Leominster, a Gateway City, as they are presently constrained by the existing plant and public infrastructure. The existing marketing network is being retained and will be augmented by an expanded marketing program. Their products are distributed throughout New England to farm stands, wholesalers and chain supermarkets such as Whole Foods, Market Basket, Roche Brothers, Food Master, Donelans and others. This expansion will create 6 new jobs and retain 6 jobs with a private investment of $3,050,000. The EACC awarded an $180,000 EDIP-ITC and the City of Leominster awarded a TIF in the amount of $242,226 over 12 years.
Vestas Technology R&D Americas, Inc. (Marlborough) - This project will be the North American research hub for electric power generators for Vestas, a Danish company and the global leader of wind turbines. The project has two parts. In the first they will lease an existing building for offices. In the second, they are purchasing adjacent property and plan to construct a R&D complex. Vestas will be creating 66 new jobs, retaining 33 jobs and making a private investment of $16,605,000. The EACC awarded the company $428,400 in EDIP-ITC and the City of Marlborough granted a 10 year TIF in the amount of $1,656,031.
Techo-Bloc (NE) Corp. (North Brookfield) - Techo-Bloc is a manufacturer of various styles of concrete products used in landscaping. They are a privately-held, family-owned Canadian business. They are purchasing and renovating an abandoned pre-cast concrete plant that has been vacant for 3 years. This manufacturing plant when operational will supply all New England states. Techo-Bloc plans to hire 52 new employees and retain 3 employees. The private investment is expected to be $21,655,875. The EACC awarded Techo-Bloc $1,300,000 in investment tax credits and the Town of North Brookfield granted a 10 year TIF in the amount of $98,692.
Warren Pumps, LLC and Portland Valve, LLC (Warren) - Currently Warren Pumps is located in Warren, MA and Portland Valve is located in South Portland, ME. The project will transfer Portland Valve's specialty valve product manufacturing from their existing Maine facility (which will be closed) to the Warren Pumps facility. Both are subsidiaries of publicly traded Colfax Corp. (CFX). Additional plans call for technologically upgrading the Warren facility's equipment for producing fluid-handling manufactured products. Warren Pumps plans to create 35 new jobs and retain 96 jobs. The private investment is expected to be $5,754,209. The EACC approved investment tax credits in the amount of $179,809 and the Town of Warren has approved a 5 year TIF in the amount of $2,164,581.
Gulfstream Aerospace Services Corp. (Westfield) - Gulfstream Aerospace Services Corp. is a wholly-owned subsidiary of General Dynamics Corp. Gulfstream designs, develops, markets, services and supports business-jet aircraft. The project will be located at the Westfield-Barnes Airport and be a part of the Gulfstream service center network. The Westfield Facility's primary business is to provide aircraft maintenance, repair and overhaul services. The project expansion is needed to service the new, larger G650 jets. Competition to win this project has been against other company-owned facilities in WI and GA. Gulfstream plans to create 100 new jobs, retain 131 jobs and the private investment is expected to be $20,750,000. Westfield is a Gateway City and the EACC awarded this project $1,452,500 in EDIP-ITC. The City of Westfield awarded a 15 year TIF in the amount of $4,206,372.
Seal Ryt Corporation (Westfield) - A manufacturer of braided textiles for fluid sealing and machined polymeric shaft bearings with various patents. The company plans to move from leased space in Easthampton, which they have outgrown, to purchasing an existing empty building in Westfield, a Gateway City. The company will hire 12 new employees and retain 14 employees. The private investment is expected to be $2,346,193. The EACC awarded Seal Ryt $220,439 in EDIP investment tax credits and the City of Westfield awarded a 5 year TIF in the amount of $67,308.
Mid City Steel (Westport) - The company has been in the business of processing scrap metal for seven decades. The company supplies recycled steel to a variety of different industries. Mid City Steel had been looking to expand its operations for a period of time and at one point considered locating at their site in Connecticut. They are building a new warehouse with offices and a storefront. The new facility will be over 35,000 sq. ft. while their existing facility is only 10,000 sq. ft. Mid City Steel plans to add 4 new employees while retaining 30 employees. The private investment is expected to be $3,772,590. The EACC awarded the project $40,000 in EDIP-ITC. The Town of Westport awarded a 10 year TIF in the amount of $13,839.
Armbrook Senior Living, LLC (Westfield) - Armbrook Senior Living is an independent assisted and memory care living center. The project will be a newly constructed 107,000 sq ft facility located on 10 acres of land with 116 units. The project will create 35 new jobs with a private investment of $19,488,500. The Gateway City of Springfield has awarded the project a TIF of approximately $1.3 million over the course of 5 years.