Baker–Polito Administration Announces Economic Development Awards for 13 Projects
Boston – Wednesday, September 23, 2015 – Today, the Commonwealth’s Economic Assistance Coordinating Council (EACC) approved 13 projects for participation in the Economic Development Incentive Program (EDIP). These projects are expected to create 717 new jobs and retain 935 jobs throughout Massachusetts, while leveraging approximately $172.6 million in private investment.
“Economic development incentive funding helps companies across Massachusetts realize growth and expansion opportunities that drive statewide economic growth,” said Governor Charlie Baker. “Expansion and hiring incentives are a cost-effective part of our push to make Massachusetts business friendly, and to catalyze significant, sustained economic growth across the Commonwealth.”
“Incentives tied to job and investment goals, like the EDIP, spur business growth while ensuring that Massachusetts residents see a significant return on investment,” said Lieutenant Governor Karyn Polito. “The program strengthens our businesses and communities, and helps sustain growth from Boston to the Berkshires.”
The EACC has approved 42 economic development projects since January. These projects will create 2321 jobs, retain 3416 existing jobs, and leverage $548 million in private investment. This year, the EACC has assisted 22 manufacturing companies and 19 companies in Gateway Cities.
“Investing in businesses across Massachusetts as they expand helps create job opportunities for hardworking residents while growing the state economy,” said Housing and Economic Development Secretary Jay Ash. “We remain dedicated to supporting communities and businesses across Massachusetts as they grow and prosper.”
“The EDIP helps sustain business growth while ensuring that Massachusetts has a wide range of competitive sectors – from distribution to manufacturing and high-tech,” said Assistant Secretary for Business Development Nam Pham. “This broad business base lays a foundation for sustained economic growth and prosperity.”
The EDIP is the Commonwealth’s investment tax credit program for businesses, and is one of the most effective tools helping businesses to grow in Massachusetts. EDIP tax credits and other incentives are available to companies that make qualifying investments in new facilities and create new jobs. The EACC meets on a quarterly basis to review applications. More information about the EDIP is available on the Massachusetts Office of Business Development’s website.
Expansion Projects (EP):
DesignWerkes, Inc. (Amesbury) – DesignWerkes, a product design and manufacturing company founded in 1995 and based in Amesbury, designed and manufactured a system intended to provide hybrid city transit buses with a 20% increase in fuel efficiency. The company plans to invest $2.2 million in equipment and the purchase and renovation of a 40,000 sq. ft. vacant, dilapidated building in Amesbury. DesignWerkes will create 15 jobs while retaining 25 existing employees. The City of Amesbury has granted a 15-year, $150,000 Tax Incentive Financing (TIF) agreement. The EACC Board approved $99,617 in EDIP investment tax credits.
Somerset Industries Inc. (Lowell) – Since 1946, Somerset Industries has designed and manufactured professional grade bakery equipment for the food service industry. The company’s relocation to Lowell will allow for expansion to accommodate their rapid growth. In addition to increasing manufacturing space, the new building will include a showroom and test kitchen. Somerset Industries plans to add 18 new employees to their current headcount of 40 and make a private investment of $4 million. The City of Lowell has offered a 10 year TIF agreement valued at approximately $81,000. The EACC Board has approved EDIP investment tax credits in the amount of $225,000, contingent upon a favorable vote on the TIF by the City of Lowell.
Friendly Fruit, Inc. dba Sid Wainer & Son (New Bedford) – Founded in 1914 in New Bedford, Sid Wainer & Son is the most prominent importer and distributor of specialty produce in the country, supplying over 30,000 restaurants, hotels, gourmet shops, retailers and caterers around the world. The company is planning an expansion of 55,000 sq. ft. on the existing 125,000 sq. ft. facility, for the construction of a state-of-the-art distribution facility. The New Bedford City Council will vote Thursday on a 5-year Special Tax Assessment for the existing building, valued at about $523,000, and a 10-year TIF on the new addition, valued at $270,000. In return, the company plans to create 10 new jobs while retaining 351 existing employees and making an $11 million private investment. The EACC Board awarded $75,000 in EDIP investment tax credits contingent upon a favorable vote on the TIF by the city of New Bedford.
Enhanced Expansion Projects (EEP):
International Business Machines Corporation (IBM) (Cambridge) – Founded in 1914 and headquartered in Armonk, NY, IBM has grown to become the world's largest Information Technology (IT) company. IBM conducted a site selection process to locate a 165,000 sq. ft. facility to serve as the operations center for IBM's Watson Health business unit, an initiative to create a more complete and individualized system for personal health, powered by cognitive computing. Watson Health will empower individuals to understand more about their health, while allowing doctors, researchers, and insurers to make better, faster, more cost effective decisions. This business unit is poised to be at the forefront of the emerging Digital Healthcare field. Five hundred new jobs will be created, with an average salary of $141,000. The expected private investment is $51 million. The EACC Board awarded $2.5 million in investment tax credits.
Manufacturing Retention Projects (MRP):
Jessica’s Brick Oven, Inc. (Methuen) – Jessica’s Brick Oven is a wholesale bakery that serves retail supermarkets, big box stores, food service companies, as well as local gourmet shops and restaurants. The company was established in 1997 and purchased by the current owner in 2008. Jessica's Brick Oven, through their real estate LLC, 192 Pelham Street, LLC, plans to purchase the former General Mills / Yoplait Columbo factory in Methuen. The company will reinvigorate these buildings and offer employment to displaced workers. Jessica’s Brick Oven plans to hire 25 new employees and retain 120 current workers. They anticipate making an investment of $10.5 million. The City of Methuen has approved a 10-year TIF valued at approximately $105,000. The EACC approved $375,000 in investment tax credits.
Parallel Products of New England, Inc. (New Bedford) – Headquartered in Louisville, KY, Parallel Products is North America’s leader in liquid waste disposal and recycling, with five regional recycling facilities around the country. In 2009, the company moved from Taunton to their current location in New Bedford, which allowed for a much needed expansion to accommodate the company’s growth. Parallel Products now plans to move to an even larger facility in New Bedford. The new location is a vacant former Polaroid facility, and a chapter 43D expedited permitting site. The company plans to purchase more equipment that will enable them to convert the recycled products they produce into finished products. Parallel plans to hire 50 employees, retain 27 employees, and make a private investment of $6 million. New Bedford has proposed a 5-year STA with an estimated worth of $329,000. The city will vote to approve the STA Thursday. The EACC Board approved $300,000 in investment tax credits contingent upon a favorable city vote.
Local Incentive Only Projects:
Mortillaro Lobster, Inc. (Gloucester) – Mortillaro Lobster is a wholesale processing and live lobster shipping company that was established in 1986. In 2014, the company handled 5.5 million pounds of live product. The company operates in a waterfront plant on Gloucester harbor with a product holding capacity of 60,000 lbs, and plans to expand and upgrade the plant facility, including a 40% increase in the physical plant, and a 35% increase in processing capacity. The new construction will also improve the loading capacity from boats. The company plans to hire 6 new employees, retain 24 existing employees, and make a private investment of $2.5 million. The City of Gloucester approved a 5-year TIF agreement for the company valued at approximately $26,000.
JimBob Realty LLC / Carmart LLC / Two Fathers LLC (Greenfield) – Robert Cartelli owns Greenfield Toyota and Greenfield Ford, which date back to 1985 and the 1950s, respectively. He purchased the dealerships in 2005 and moved them with the commitment to build new facilities. The company has torn down an old building at 1 Main Street and will construct two new ones. The company plans to hire 10 new employees, retain 41 employees, and make a private investment of $7.5 million. The Town of Greenfield has approved a 10-year TIF and a 4-year personal property tax agreement, with a combined value of approximately $192,000.
LFB USA, Inc. (Marlborough) – LFB USA is a company within the LFB Group, a leading European biopharmaceutical company specializing in innovative biotherapies. The company markets its medicinal products in more than 30 countries. Within the LFB Group, LFB USA is a development, manufacturing, and services provider to LFB S.A. in France and rEVO Biologics in the US. LFB USA plans to create a bio-manufacturing center on Crowley Drive, Marlborough. The project involves construction of the new site, which will be a state-of-the-art manufacturing facility, containing lab and office space. LFB plans to hire 50 new employees and make a private investment of $37 million. The City of Marlborough approved a 7-year TIF valued at approximately $456,000.
Globus Medical, Inc. (Methuen) – Globus Medical, Inc. is a medical device company focused on products that promote healing in patients with musculoskeletal disorders. Globus has recently acquired property to be renovated to serve its research and development, manufacturing, and distribution needs. The new facility will house the company's Robotics, Imaging, and Navigation Division, which is currently working on the development of a surgical robotic positioning system. This project will result in the creation of 20 new positions, retention of 26 existing jobs, and a private investment of $8.7 million. The City of Methuen approved a TIF of approximately $206,000.
New England Die Cutting, Inc. (Methuen) – Founded in 1982, New England Die Cutting provides gaskets and seals to the military and medical industries. The gaskets are manufactured by conventional die cutting, laser cutting, and water-jet cutting. The company has added material fabrication equipment and processes to make small batch custom sheet materials and extruded materials. By moving the business to a state-of-the-art 101,000 sq. ft. facility in Methuen, they will be able to expand by 15% annually. For this project, the company will add 13 new employees and retain 31 existing employees. They plan to make a private investment of $5.4 million. The city of Methuen awarded a TIF agreement valued at approximately $98,000.
Darn It!, Inc. / 88-90 Hatch Street (New Bedford) – The company is a unique provider of quality control and post-production repair, warehousing, and distribution services to global retailers, catalogue companies, manufacturers, and wholesalers. Darn It! provides its customers with a diverse set of outsourcing services, including garment re-work, shoe storage, toy inspection, apparel laundering, spot cleaning, and distribution. The company is purchasing a partially leased building and will renovate 30,000 sq. ft. of currently vacant space. They will retain all 30 existing tenants and create at least 15 more units for small business tenants and artist studios. They plan to invest approximately $800,000. The City of New Bedford is voting Thursday on a Special Tax Agreement valued at approximately $64,000.
150 Blackstone River Road LLC (Worcester) – The company was formed by the union of Mid-States Packaging, a tenant of the property for over 30 years, and GFI Partners, a full-service real estate development company. The property will be redeveloped into a premier multi-tenant industrial facility to service local, regional, and national distribution, third party logistics, light manufacturing, assembly, and warehouse companies. The project consists of the renovation of the existing 689,000 sq. ft. building into a 576,000 sq. ft. state-of-the-art, multi-use, high-bay industrial building. A portion of the space will be used by Mid-States Packaging. The company has committed to make a private investment of $26 million and to attract tenants that will provide 300 jobs. The City of Worcester approved a 15-year TIF of approximately $4.5 million, as well as a 15-year personal property tax exemption.