Patrick-Murray Administration Approves Economic Development Projects That Will Create and Retain 7,144 Jobs
BOSTON – Tuesday, March 26, 2013 – The Economic Assistance Coordinating Council today approved nine projects for participation in the Economic Development Incentive Program, which are expected to create 1,209 new jobs and retain 5,935 existing jobs, in addition to leveraging nearly $267 million in private investment and supporting construction projects across the Commonwealth.
Among the eight approved projects are four manufacturing companies and five projects located in Gateway Cities. The EDIP program helps reduce the cost of business for these companies, which is one of the five main focuses of the Patrick-Murray Administration’s long-term economic development plan. These are the first projects approved in 2013 by the Coordinating Council, which meets on a quarterly basis to review applications.
“Supporting companies that are choosing to grow in Massachusetts is an important part of our effort to create economic opportunity for everyone,” said Secretary of Housing and Economic Development Greg Bialecki. “These investments will help these businesses expand here and fit with our overall economic development strategy of making our businesses and communities stronger in the long term.”
The EDIP is the Commonwealth’s investment tax credit program for businesses. In 2009, Governor Patrick and Secretary Bialecki, along with the Legislature, reformed the program and, as a result, EDIP has become one of the most effective programs helping businesses grow in Massachusetts.
Since these changes, 141 projects have received approval, leading to the creation of 9,102 new jobs, retention of 34,105 existing jobs and leveraging of $4 billion in private investment. The EACC has assisted 81 manufacturers through the EDIP program and supported 61 projects in Gateway Cities. The reforms in 2009 also included the creation of important clawback provisions that allows for the Commonwealth to recoup money invested through the credit if companies do not meet their job-creation targets.
The EACC approved the following projects at today’s meeting:
Enhanced Expansion Projects (EEP)
MassMutual Life Insurance Company (Springfield) – MassMutual is a leading mutual life insurance company founded and headquartered in Springfield. In the fall of 2012, MassMutual purchased the retirement plan portfolio of the Hartford Insurance Company. To support this acquisition, MassMutual will be moving back-office jobs from Connecticut to their facility in Springfield. The expansion at the Springfield facility will create 250 jobs in the Commonwealth and will retain 3,352 existing jobs. This project represents a private investment by the company of $59.4 million. The EACC has approved $3.75 million in EDIP Investment Tax Credits (ITC) to support MassMutual’s efforts and investments.
The MathWorks, Inc. (Natick) – MathWorks is the leading developer of mathematical computing software for engineers and scientists. Founded in 1984, MathWorks employs 2,400 people in 15 countries, with headquarters in Natick. Their current facilities in Natick do not have adequate space to fully meet the company's growth projections over the next several years. They have identified an existing property consisting of three buildings on 35 acres of land owned by Boston Scientific, who has announced they are moving to Marlborough. The company is in discussions with Boston Scientific about acquiring that property. This expansion will create 600 new jobs, retain 1,818 jobs in Natick and be a nearly $113 million private investment. The Economic Assistance Coordinating Council has approved $3 million in EDIP Investment Tax Credits to support the MathWorks expansion efforts and investments.
Manufacturing Retention Projects:
DRS Power Technology (Fitchburg) – DRS Power Technology, a Fitchburg-based subsidiary of DRS Technologies and Finmeccanica SpA, is an engineering and manufacturing company which primarily focuses on producing goods for naval and other power and energy markets. Currently, DRS Power Technology is developing hardware for the next generation of American submarines. The team is currently evaluating locations for the test facility options for the production phase of the submarine program which would begin in 2020 and run for 20 years. The EDIP credit is contingent on DRS obtaining the US Navy contract. This project represents $33 million in private investment and the retention of 80 high-paying, high-skill jobs. Massachusetts’ EACC has approved an ITC of $2.4 million. The City of Fitchburg has voted to provide DRS with a five-year, Tax Increment Financing (TIF) agreement valued at $256,652.
New England Wire Products, Inc. (Leominster) – New England Wire Products was incorporated in Massachusetts in 1985 and is headquartered in Fitchburg. It designs and manufactures custom display wire racks and front-end store fixtures used by customers to market their products. The company provides a full spectrum of production support from design, engineering and manufacturing to powder-coating and graphic printing services. Since its founding, the company has seen sustained, rapid growth and currently employs 254 employees across four facilities. This growth has necessitated the acquisition of additional space. The company plans to purchase a property in Leominster with close to 200,000 square feet of new space, which will allow New England Wire to add 100 new jobs and retain 154 in Massachusetts. The EACC has awarded an ITC valued at $317,500. The City of Leominster has awarded an eight-year TIF valued at $25,862.
Jacqueline’s Wholesale Bakery, Inc. (Salem) – Jacqueline’s Wholesale Bakery produces frozen cookies sold to hotels, cruise lines and food service distributors across the United States. It was founded in Jacqueline Hazel’s kitchen in Malden in 1993 and incorporated seven years later. It moved to Salem in 2006 and is headquartered in a 25,000 square-foot production facility. Since 2006, Jacqueline’s Wholesale Bakery has almost quadrupled in size from 20 employees to 75 at the end of 2012. Jacqueline’s Wholesale Bakery now sees more than $30 million in annual sales and is posed to expand again – Jacqueline’s Wholesale Bakery looks to acquire an expanded facility and make investments in its infrastructure. This expansion, which will be located in Greater Salem, is projected to add 35 new jobs to the Commonwealth’s economy and retain the 75 jobs currently at the Bakery. This project will see a private investment of $2.8 million. An ITC of $283,820 has been awarded by the EACC along with a five-year TIF of $35,307 by the City of Salem.
Tax Increment Financing (TIF) / Special Tax Assessment (STA) Only – The following projects will not receive an EDIP- Investment Tax Credit
Perkin Elmer Health Sciences, Inc. (Hopkinton) – Perkin Elmer Inc. is a global company which focuses on improving the health and safety of people and the environment. Its businesses range from multi-vendor laboratory services, software and informatics to clinical lab testing. While currently based in Waltham, Perkin Elmer will relocate its life sciences and technology business elements to Hopkinton where the company recently purchased Caliper Life Sciences, a biomedical company which is a leader in imaging and detection solutions for life sciences research, diagnostics and environmental markets. This relocation will allow Perkin Elmer to form a “center for excellence.” This investment and relocation will bring 150 new jobs to Massachusetts and will assist in the retention of 250 jobs. Perkin Elmer Health Sciences is making a private investment of $13 million and will receive local Tax Increment Funding from Hopkinton for 13 years valued at $827,991.
Plymouth, MA 2013, LLC (Plymouth) – This project, undertaken by a local developer, will result in the construction of a custom-designed and built-to-spec medical office building which will be entirely leased by a 40-person, private medical practice. The new building is being built to consolidate 13 facilities which are currently spread throughout the Commonwealth. This represents a commitment by Plymouth for a 10-year TIF which will bring $501,055 in public funds to the project based on the company’s private investment of $20 million.
Crane & Co. (North Adams) – Crane & Co. is a seventh-generation, family-owned business based in Dalton. In addition to being the premier stationary purveyor for more than 200 years, the company has produced the cotton-blend paper used in United States Currency since 1879. Crane & Co. acquired a Kennebunk, Maine, company, William Arthur, Inc., in late 2012. Crane & Co. will incorporate the Maine operations into their existing stationary operations located in North Adams. This project represents an investment of $5 million and will create 74 new jobs in Massachusetts and retain 206. North Adams has voted to award Crane & Co. a five-year Special Tax Assessment valued at $291,030.
Squire Charger Realty, LLC (Revere) – Founded in 2009, Squire Charger was created to obtain, clear and redevelop a nine-acre lot and transform it into modern retail space. This lot was previously blighted and centered on an abandoned Toys R Us store. One of the flagship stores in the new development is projected to be a new Market Basket location, which will increase access to grocery shopping in a town which currently has only one open supermarket. This project will take advantage of Massachusetts’ Abandoned Building tax deduction. The total private investment for this effort is $18 million. Revere has awarded, and the EACC has approved, a 10-year TIF contingent on the opening of the Market Basket. This TIF is valued at $1.27 million.