Newly Reformed Massachusetts Economic Development Program Supports Job Growth And Spurs Industry Growth
New projects attracts over $870 million in private investment, supporting thousands of jobs
BOSTON -Thursday, April 01, 2010- Implementing critical reforms signed into law by Governor Deval Patrick, the Economic Assistance Coordinating Council approved 8 projects for participation in the Economic Development Incentive Program during its March meeting. The approved projects commit to creating 818 new full time permanent jobs and retaining 3,663 full time permanent jobs in addition to injecting over $870 million of private investment into the Massachusetts economy, supporting new construction projects in 2010."The diverse projects approved by the council today support long term job growth in various industries, including manufacturing, and in several gateway regions throughout the Commonwealth," said Governor Deval Patrick. "This investment also promises to jumpstart millions of dollars in new construction projects this year."
The Economic Development Incentive Program ( EDIP) is a tax incentive program designed to foster job creation and stimulate business growth throughout the Commonwealth. Participating companies may receive state and local tax incentives in exchange for job creation and private investment commitments. The statutory changes were signed into law by Governor Patrick in December 2009 and took effect on January 1, 2010. These changes to the program allow the Economic Assistance Coordinating Council ( EACC) the flexibility to award tax incentives based on number of jobs the business intends to create or retain. Previously, the EACC had no flexibility in awarding a fixed 5% Investment Tax Credit ( ITC) to businesses that had been approved by a municipality. The new legislation also requires that all projects generate substantial sales outside of Massachusetts, thereby guaranteeing that certified projects that receive tax incentives will increase economic activity in the state. In addition, the state may now provide, in limited circumstances, an investment tax credit to projects creating significant new employment, even if no local incentive has been approved. For more information on the program
"The awards granted today demonstrate the very effectiveness of these reforms," said Secretary Greg Bialecki. "With these new tools the state is able to steer aid to the projects most likely to create jobs, support struggling communities, and focus on supporting the manufacturing industry."
The projects approved at the March meeting are as follows:
Liberty Mutual Insurance Company: This expansion will result in 750 full-time permanent jobs and an investment in excess of $350MM in the development of a new 580,000SF office facility to enlarge its Boston headquarters campus. The location of the proposed tower consists of three underutilized parcels, individually undevelopable, and two of which have obsolete, deteriorated structures. In addition to approving the City of Boston's Tax Increment Financing Agreement with the company, the Economic Assistance Coordinating Council approved a multi-year EDIP Investment Tax Credit Award of $22.5 million. This investment will also spur significant economic activity including the support of 664 union construction jobs at the peak of construction activity.
New England Sheets LLC: The company is considering the location of a new corrugated sheet feeding operation in a long underutilized building at Devens. The proposed project will reuse a 160,000SF facility and create 59 new full time permanent jobs within two years. The EACC approved a Certified Expansion Project including a $707,000 EDIP Investment Tax Credit to support the job creation that is so important in North Central Massachusetts where the economic downturn has hit hard.
Lightolier in Fall River plans to invest in a wind turbine to reduce its high energy costs by 50%. The company will retain 385 jobs at the South Coast electrical lighting systems and fixtures manufacturing facility as a result of implementing this technology. This Manufacturing Retention Project was supported by the City of Fall River and the EACC awarded $1,155,000 in EDIP Investment Tax Credits to retain the jobs in the Gateway community and assist with the technology deployment.
Mainstream Global, together with its sister development companies, has a record of revitalizing former mill property in Lawrence. The EACC approved the City of Lawrence's Tax Increment Financing Agreements for the regeneration of two mill buildings that are under redevelopment into office uses. The properties have several non-profit tenants signed up to bring more than a hundred jobs into the downtown area of this Gateway community.
The Coca Cola Company has a manufacturing facility in the City of Northampton that seeks to manufacture a new line of beverages at the site. This will bring in 40 full time manufacturing jobs from out of state and retain the 176 jobs currently onsite. The Northampton facility is in competition with a New Jersey location to win the new beverage line. In addition to approving the City of Northampton's Tax Increment Financing Agreement with Coca Cola, the EACC committed an EDIP-Investment Tax Credit of $774,360 to incent the company to choose Massachusetts for the project.
Titeflex Corporation in Springfield manufactures specialty hose for uses including systems within the Space Shuttle and exports to China. The company is headquartered in South Carolina and local management has worked hard with the City of Springfield and the Commonwealth to put a proposal together that will retain 101 jobs and create one new job at the Springfield facility. The company needs to invest more than $3 million to upgrade the building's internal infrastructure and implement lean manufacturing principles to make the site competitive and prevent the business' relocation to South Carolina. The EACC approved the City of Springfield's Special Tax Assessment with the company and awarded an EDIP-Investment Tax Credit of $281,900 to support the manufacturing company's investment that will retain jobs in this Gateway community.
eClinicalWorks was formed in 1999 and has seen exponential growth. The electronic medical records company now has 400 full time employees in Westborough. Other states, including Florida, California and Georgia, have offered incentives to eClinicalWorks but, if economically feasible, the company's founder hopes to purchase a vacant building within Westborough to cement the business's headquarters in Massachusetts and continue growth by creating 100 new full time permanent jobs. The EACC approved this Enhanced Expansion Project and awarded an EDIP-Investment Tax Credit of $1.2 million.
Pioneer Valley Energy Center is a proposed 400 mW gas-fired power generation facility to be located in Westfield. An investment of more than $400 million is needed to develop the site and construct the plant. It will yield 16 full time permanent jobs and will generate significant tax revenues for the City of Westfield. Given the size and nature of the project, the City has negotiated a substantial Tax Increment Financing Agreement and Payment in Lieu of Taxes (PILOT) arrangement. In addition, the City of Holyoke plans to sell water to the facility for use in cooling process. To support the jobs growth related to the project, the EACC awarded $320,000 in EDIP-Investment Tax Credit as well as approving the local tax incentive.