Patrick-Murray Administration Approves 16 Economic Development Projects That Will Create & Retain 4,687 Jobs In Communities Across The Commonwealth
"Putting people to work building a better, stronger Commonwealth has been at the forefront of Governor Patrick's job creation strategy since day one," said Housing and Economic Development Secretary Greg Bialecki. "Today's projects will put shovels in the ground across the Commonwealth, creating short and long-term economic opportunities for our residents and businesses and helping to attract the private investment that will accelerate our economic recovery."
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 these changes, 58 projects have received approval, leading to the creation of 3,905 new jobs, retention of 13,046 existing jobs and leveraging of $1.1 billion in private investment. The EACC has assisted 31 manufacturers through the EDIP program and supported 16 projects in Gateway Cities.
The EACC approved the following projects at today's meeting:
Manufacturing Retention Projects (MRP)
Affordable Interior Systems, LLC (AIS) (Leominster) is a leading manufacturer of commercial office furniture workstations. Since the company's founding in 1990, it has grown into one of the largest manufacturers in the U.S. in this category and exports to Mexico, Canada, Kuwait and other countries. AIS currently leases and occupies an estimated 353,000 sq. ft. of office and manufacturing space in Hudson and 138,000 sq. ft. of warehouse space in Mansfield. Due to its steady growth the company has outgrown its existing space and seeks to relocate and consolidate its operations to a new facility. Affordable Interior Systems has conducted a site search to explore real estate options, both in Massachusetts and out of state. The company has identified an estimated 572,272 sq. ft. building on a rail siding in Leominster as a property to lease and consolidate all of its Massachusetts operations. This Manufacturing Retention Project was supported by the City of Leominster with a Special Tax Assessment of $929,000 and the EACC awarded $1.3 million in EDIP Investment Tax Credits to the project for retaining 235 jobs while creating 126 new jobs and making a private investment of $13 million.
Enhanced Expansion Project (EEP)
BNY Mellon Investment Servicing (Westborough) was acquired in July 2010 from PNC Financial Services Group and is now a subsidiary of Bank of New York Mellon. The business is a leading provider of Custody, Fund Accounting, Transfer Agency, and Outsourcing Solutions for asset managers and financial advisors. The project will relocate approximately 250 positions from a site in Pawtucket, RI by October 1, 2011 and create 146 additional hires in 2012 while also retaining 900 jobs already on site. The move will require the renovation of 12,000 square feet of existing office space at 4400 Computer Drive, in Westborough. When complete, BNY Mellon will operate in approximately 304,000 sq ft of building space. This Enhanced Expansion Project will create 396 net new jobs to Massachusetts within the first two years. The private investment will be $3.2 million for the renovation and build-out along with purchases of equipment, fixtures and furnishings. The EACC awarded $316,834 in EDIP Investment Tax Credits to create and retain jobs and provide support for this expansion project.
Expansion Projects (EP)
Stergis Aluminum Products Corp. (Attleboro) was founded in 1961 and has had sustained growth year over year for almost 50 years. They manufacture custom windows and doors from aluminum. The company also continues to test and add new products every year and has had great success with explosion proof windows for the military, and extremely thermal efficient windows for which sales have really taken off. They plan to move from 40,000 sq ft in Walpole to 128,000 sq ft in Attleboro where they plan to renovate and rehabilitate an existing facility. The expansion project will allow the company to expand internal manufacturing of injection molded components, will add injection molding test laboratories, a machine shop, and the ability for full recycling of all raw materials. The site is spacious enough for the company to bring in-house various military contracts previously produced in its South Carolina facility. The project accounts for a $4.2 million in private investment and will create 58 new full time jobs and retain 50 full time jobs in Massachusetts. The City of Attleboro has approved a 20 year TIF of approximately $260,000 and the EACC Board has awarded $242,000 in Investment Tax Credits for this important expansion.
Mabbett & Associates, Inc. (Bedford) is a Service Disabled Veteran Owned Small Business that has thrived in Bedford, MA. The company provides integrated environmental, health and safety and sustainable energy consulting and engineering services to Federal and Public agencies, the manufacturing industry and commercial institutions. Mabbett & Associates have delivered value added expert service for over 30 years and the owner, Arthur Mabbett, plans to expand, creating the need for an additional 15 full time, and 2 part time employees, while retaining all 17 current employees. The project is a $491,000 capital investment for improvements to the company's existing facility in Bedford including the addition of space. The EACC Board awarded an investment tax credit of $14,730.
E Ink Corporation (Billerica) was founded in 1997 as a spin-off from the MIT Media Lab. E Ink Corporation is the world-leading developer and provider of electronic paper displays (EPD) to the market, most notably recognized for being the enabling technology used in first-to-market eBook, Amazon Kindle. E Ink's extraordinary business growth necessitates new consolidated space for the company headquarters and R&D activities. The headquarters is currently spread among a half dozen separate buildings in Cambridge and lacks the necessary space to meet its growth needs. E Ink intends to relocate its corporate headquarters from several leased buildings in Cambridge into a 139,000 square foot facility in Billerica. In addition, the adjacent property could accommodate future growth should business conditions warrant it. The company will move all of its current 254 employees to Billerica and will create 100 new positions in five years along while making a $30 million private investment. The Town of Billerica has approved a 15 year TIF of $2 million and the EACC Board has approved a $1.8 million in investment tax credits. E Ink also has a manufacturing facility in South Hadley, MA, which will remain in place.
Parexel International Corp. (Billerica), founded in Massachusetts in January 1982, is a leading global bio/pharmaceutical services organization that helps clients expedite time-to-market through their development and launch services. From their pioneering beginnings as one of the first clinical research organizations (CROs) more than two decades ago to their place as one of the top three public global service providers today, Parexel has evolved to provide a broad range of services to the bio/pharmaceutical industry that has contributed to the development and launch of many new drugs and treatments. Parexel plans to renovate an abandoned building (8 Federal Street) and add some office space to an existing building (1 Federal Street), as well as reconfigure the existing offices from traditional individual workspaces to a more open collaborative lay-out. The EACC Board is awarding an investment tax credit for the 1 Federal Street building. Eight new jobs will be created at 1 Federal Street and 212 jobs will be retained with a private investment of $995,961. The EACC has awarded an investment tax credit of $29,879.
Iredale Mineral Cosmetics Ltd. (Great Barrington) is a high-end cosmetics line sold through physicians, plastic surgeons, dermatologists' offices, spas, skin care salons, medical clinics and specialty retailers. They are the first company to supply the aesthetics industry with a full-line of makeup based on minerals which created a new category in the color cosmetic market segment, using formulas and ingredients that could claim distinct health benefits for the skin. The company purchased a former abandoned school building in Great Barrington and plan to remediate asbestos and renovate the facility to become their corporate headquarters. They will be creating 32 new jobs, retaining 81 jobs and making a $7.7 million private investment. The EACC Board awarded them $183,000 in investment tax credits and they received a $4.6 million Recovery Zone Facility Bond through MassDevelopment in 2010 for this project.
East Baking Company (Holyoke) is a five year old Massachusetts-grown commercial manufacturer of bagels, pastries and other baked goods. The company has grown rapidly and now services many large institutional customers such as Bay State Health Systems, the University of Massachusetts, Smith College and public school systems. The company outgrew the original manufacturing in Ludlow and moved the production to Connecticut and the distribution to a leased facility in Holyoke. This project will consolidate the locations on one tax parcel and bring the manufacturing back to Massachusetts in a Gateway City. It will increase capacity and allow for future expansion. The company is purchasing an abandoned building in Holyoke consisting of two buildings. They will be creating 8 new jobs, retaining 9 jobs and making a $2.4 million private investment. The financing came from a SBA loan underwritten by Springfield-based Nuvo Bank & Trust. The City of Holyoke is supportive of this project and the EACC Board awarded $239,500 in investment tax credits.
Ocean Spray Cranberries, Inc. (Middleboro) is an international, 80 year old agricultural cooperative and consumer packaged goods company owned by over 650 cranberry growers and 48 fruit growers. Ocean Spray is the leading shelf-stable juice brand in the U.S.A., U.K., Canada and Australia and the Craisin®, sweetened dried cranberries is the fastest growing major brand of dried fruit. Ocean Spray is an iconic brand with household awareness worldwide. This project represents an investment of approximately $45 million for a third sweetened dried cranberry (SDC) production line in the existing Middleboro manufacturing plant. The project has an anticipated beginning in Summer 2011 with production to begin in mid-2012. Ocean Spray will hire 5 new employees and retain 143 jobs. The EACC Board approved $100,000 in investment tax credits and the Town of Middleboro in support of the project.
Vertex Pharmaceuticals, Inc. (Boston) is a world renowned biotechnology company and a Massachusetts Life Sciences success story. Founded more than 20 years ago in Cambridge, MA, the company has ongoing global research programs and sites in the US, UK and Canada. Vertex is listed on the NASDAQ-100 Index and is working on new medicines to cure or significantly advance the treatment of hepatitis C, cystic Fibrosis, epilepsy and other life-threatening diseases. On May 23, 2011 Vertex received FDA approval on a new drug, INCIVEK™, for the treatment of people with hepatitis C which is expected to result in significant sales growth for the company. Currently sprawled out among 12 buildings in Cambridge, the company has signed leases to consolidate its headquarters at one central campus in South Boston's Fan Pier development. Vertex plans to bring 1,300 current Massachusetts employees to this new campus over the next several years, and creating an additional 500 positions through 2015, representing a 40% increase in the Mass-based workforce. The City of Boston has approved a TIF valued at over $12 million to the company.
Celtic Penguin LLC / Kelly's Package Store (Dalton) has been family-owned and operated for over 50 years. They plan to double the size of their package store due to sales growth and anticipated expansion of the MA bottle and can redemption requirements. They are purchasing the adjacent site which was severely damaged in a fire and will demolish the remains of this seriously blighted property from the commercial district on Main Street which is important to the Town. The TIF is needed to make the project feasible as it would be difficult to justify the project otherwise. The Town has approved a 5 year TIF valued at $1.2 million which includes a 4 year exemption on personal property taxes too. The company will be retaining 3 jobs and creating 4 new jobs.
Dixie/Georgia Pacific (Leominster) is the manufacturer of Dixie brand of disposable cups, plates and cutlery. The Leominster facility is the company's only US plant that produces cutlery. This TIF-only project is in consideration of Dixie making a major capital expenditure in Leominster (up to $20 million) to attract a complementary, innovative product line that would increase production and require the creation of 25 jobs and retention of 213 jobs. The total value of the TIF to Dixie is expected to be $3.2 million.
New Bedford Urban Renaissance LLC (New Bedford) plans to purchase and redevelop the former Standard-Times Building located on Pleasant Street. The company believes that by redeveloping vacant urban commercial properties and delivering them to the market at a price point that reduces tenant operating costs, companies will be attracted to downtown New Bedford. The City of New Bedford has granted a 8 year TIF valued at approximately $6.4 million.
Scarafoni Associates (North Adams) is a real estate management and development company operating throughout Berkshire County. This project includes the acquisition of the former headquarters of The Transcript, a local Northern County Berkshire newspaper, which has been more than 50% vacant for the past two years. The company plans to renovate this downtown North Adams building for a mental health provider, the Brien Center. A total of 60 employees work in two Brien Center facilities currently located in two leased North Adams buildings today. This project will consolidate and retain the 60 employees in North Adams. It represents a $1.7 million private investment and the City has approved a TIF valued at $165,000 to incent this project.
eClinicalWorks, LLC (Westborough) is an electrical medical records company, expanding and acquiring a facility in Westborough to grow its headquarters. The project was originally approved as an Enhanced Expansion Project (EEP) at the March 2010 EACC Board meeting. At the same meeting, the Town of Westborough applied for and was awarded Economic Target Area (ETA) status. Subsequently the company and Town entered into TIF negotiations and came forth for TIF approval from the EACC Board. The Town has approved a 5 year TIF (that includes some personal property tax relief as well) for a total of $177,000. This project is creating 130 new jobs and retaining 400 existing jobs.
St. Vincent Hospital (Worcester) is a 348-bed acute acute care hospital that offers a variety of special care centers and is a part of Vanguard Health Systems. Saint Vincent plans to construct a medical building for use as a cancer center on City Square of approximately 40,000 sq ft with an option at a future date to expand by an additional 80,000 sq ft. The first phase of the project will result in the retention of 26 full time jobs and creation of 22 new jobs and a private investment of $21.8 million. Additional jobs will be created by other providers including Fallon Clinic's Medical Oncology Specialists. Construction is scheduled to begin by September 1, 2011 with the Cancer Center to be occupied by December 2012. Local tax relief was sought due to the significant cost of constucting and equipping the new facility. The City of Worcester has granted a 10 year TIF valued at approximately $9.8 million.
The Executive Office of Housing and Economic Development is one of eight Secretariats that make up the Governors Cabinet. Under the leadership of Secretary Gregory Bialecki, the Executive Office of Housing and Economic Development oversees the following undersecretariats: the Departments of Business Development, Housing and Community Development, and Consumer Affairs and Business Regulation.
The Massachusetts Office of Business Development is committed to assisting companies who want to locate, expand, grow, or maintain a presence in Massachusetts. Through six regional offices and five industry specialists, MOBD works with companies and municipalities to help them take advantage of available economic incentive programs. MOBD also assists companies in navigating and accessing the technical, human, financial, training, educational and siting resources necessary to expand or locate in Massachusetts.