Baker-Polito Administration Announces Economic Development Awards for 12 Projects
Incentives will contribute to businesses creating and retaining 1,419 jobs
Worcester – Tuesday, March 22, 2016 – Today, the Commonwealth’s Economic Assistance Coordinating Council (EACC) approved 12 projects for participation in the Economic Development Incentive Program (EDIP). These economic development projects are expected to create 393 new jobs and retain 1,026 jobs throughout Massachusetts, while leveraging approximately $133 million in private investment.
“Our administration is committed to fostering a pro-growth business environment in Massachusetts, and fostering job growth across the state,” said Governor Charlie Baker. “These job-creation incentives give our businesses another tool to reach their full potential in the Commonwealth, encouraging long-term, sustainable economic growth, and catalyzing significant investments that benefit our workforce.”
“The Economic Development Incentive Program benefits communities across the Commonwealth, by tying incentives to job growth and investment goals,” said Lieutenant Governor Karyn Polito. “These incentives spur sustainable growth that strengthen cities and towns, and encourage further investment from our businesses.”
“These incentives give us another tool to connect residents across the Commonwealth to well-paying, long-term job opportunities,” said Housing and Economic Development Secretary Jay Ash. “Keeping Massachusetts open for business is a high priority for us, and helping businesses realize growth goals is part of that commitment.”
“Economic Development Incentive Program credits are a cost-effective tool for encouraging community investment, across a variety of sectors,” said Assistant Secretary for Business Development Nam Pham. “These incentives generate significant private investment job growth.”
This quarter, the EACC approved economic development incentives for three manufacturing companies, and ten projects located in Gateway Cities.
The EACC has approved 72 economic development projects since January 2015. These projects will create 3,722 jobs, retain 5,733 existing jobs, and leverage more than $1.17 billion in private investment. Since 2015, the EACC has assisted 34 manufacturing companies and 37 companies in Gateway Cities.
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.
Manufacturing Retention Projects (MRP)
U.S. Tsubaki Automotive, LLC (Chicopee) - U.S. Tsubaki Automotive is a Tier I manufacturer of timing chains and timing chain systems supporting the global automotive industry. The company plans to meet growing customer demand by expanding its current 258,420 square foot facility by another 100,000 square feet. This expansion of production, warehouse, and office space will allow the company to hire 35 new employees, while retaining 348 current jobs on-site. The company will make a $20.6 million private investment in the project. The City of Chicopee has approved a Tax Increment Financing (TIF) agreement valued at $248,924. The EACC Board approved $525,000 in tax credits.
Aegis Energy Service, Inc. (Holyoke) - Aegis Energy Services manufactures, engineers, installs, and provides service for Combined Heat and Power (CHP), or cogeneration, systems throughout the Northeast and Mid-Atlantic states. The systems provide significant reductions in energy costs for the end user, provide resiliency, and reduce greenhouse gas emissions. The company began operations in 1985, and moved to Holyoke in 2005. Aegis has outgrown its 20,000 square foot facility, and plans to expand to an adjacent building. The expansion site, the former Parsons Paper facility, is a brownfield that has extraordinary site preparation costs. Aegis’s new facility will feature expanded production, testing, warehousing and office space. The company is also exploring the feasibility of adding a solar farm on-site. Aegis plans to create 30 new full-time jobs, retain 59 employees, and make a private investment of $6.9 million. The City of Holyoke has approved a 10-year Special Tax Assessment valued at $398,600. The EACC approved $300,000 in refundable tax credits.
Job Creation Project (JCP)
Acacia Communications, Inc. (Maynard) - Founded in 2009, Acacia Communications, Inc. designs, develops, manufactures, and markets intelligence subsystems for ultra-high speed fiber optic transmission for haul, local and ultra-haul applications. The company plans to expand on-site in Maynard, and purchase additional manufacturing, research and development, and high-end IT equipment. The company plans to create 100 new jobs within 2 years, retain 166 current positions, and make a private investment of $8.7 million. The EACC approved $100,000 in refundable tax credits.
Expansion Projects (EP)
Hotel Salem Real Estate Holdings, LLC (Salem) - Lark Hotels, Inc. owns and operates more than a dozen boutique hotels in New England and California. The company intends to purchase and redevelop the former Newmark department store into a boutique hotel. When redevelopment is complete, the building will serve as a 44-room hotel, with a bowling alley in the basement and a restaurant on the top floor and roof. The company plans to create 15 permanent full-time jobs and make a $10.3 million private investment. The City of Salem has approved a 5-year TIF valued at $354,600. The EACC approved $112,500 in tax credits.
Absolute Machinery Corporation (Worcester) - Absolute Machinery was founded in 2000 as a used equipment supplier to the plastic processing equipment industry. The company, which has experienced consistent growth since its founding, will construct a 13,000 square foot addition to its current facility, creating more space for administrative offices, product showrooms, and internal loading docks. Absolute Machinery will create 6 new jobs, retain 14 jobs, and make a private investment of $1.025 million. The City of Worcester has awarded the company a 10-year TIF valued at $77,899. The EACC approved $45,000 in investment tax credits.
Imperial Distributors, Inc. (Worcester) - Imperial Distributors, Inc. has been in the business of supermarket non-foods for more than 75 years. The company distributes over 25,000 health and beauty care, general merchandise, and seasonal items to more than 3,500 stores in 45 states. Imperial plans to consolidate its 6 warehouses to one large facility in Worcester. This investment will increase operating efficiencies and lower costs, while providing sufficient capacity for the future. Imperial will create 21 new jobs and retain 353 existing positions. The company will make a private investment of $12.9 million. The City of Worcester has approved a 15-year TIF valued at $7.7 million. The EACC approved $157,500 in investment tax credits.
Local Incentive Only Projects
K Hyannis Hospitality, LLC (an affiliate of The Simon Konover Company) (Barnstable) - K Hyannis Hospitality, LLC has purchased a former Days Inn that closed in 2014. The company plans to renovate the facility and open a Fairfield Inn and Suites. The company will create 24 new jobs and make a private investment of $17.2 million. The Town of Barnstable has approved a 20-year TIF valued at $355,559.
Springfield Automotive Partners, LLC (Chicopee) - Springfield Automotive Partners was established in 2015 with the intention of owning and operating a Mercedes-Benz automotive dealership. The projected start date of operation is January 2017. The company plans to demolish an existing structure and construct a 35,000 square foot, state-of-the art automotive retail and service facility. The project will create 35 new jobs and generate a private investment of $11.8 million. The City of Chicopee has approved a 5-year TIF valued at $155,850.
Demoulas Super Markets, Inc. (Fall River) - Demoulas Super Markets, Inc. operates 75 supermarkets and 3 distribution centers across Massachusetts, New Hampshire, and Maine, employing approximately 25,000 people. Demoulas Super Markets’ Fall River expansion will anchor the redevelopment of the largely vacant New Harbour Mall. Demoulas Super Markets will purchase 9.53 acres of land, and construct an 85,000 sq. state-of-the art Market Basket supermarket. This project will lead to the creation of 75 full time permanent positions and 325 part-time positions. The private investment is estimated to be $16 million. The City of Fall River has approved a 15-year TIF valued at $4.4 million.
Harbour Hill, LLC (Fall River) - The project is a complete redevelopment of the former New Harbour Mall in Fall River. Existing buildings will be demolished, or gutted and refurbished with modern facades; the developer will resurface and landscape parking facilities, and install new pedestrian-friendly sidewalks and signage. The redevelopment is expected to attract new businesses that will hire an estimated 200 full-time employees, and 300 part-time employees. The project is estimated to generate $25 million in private investment. The City of Fall River has approved a 15-year TIF valued at $7.8 million.
Michael's Party Rentals, Inc. (Palmer) - Michael’s Party Rentals provides tents and event equipment to people, companies, and universities hosting events. Currently, the company operates in 9,000 square feet of space at two locations in Ludlow. The company plans to purchase a 20,000 square foot building in Palmer, and consolidate into the facility, allowing the company to increase efficiency, build showcasing space, and wash tents in-house. The project will lead to the creation of 6 new jobs, and the retention of 6 employees. The private investment is estimated to be $665,000. The Town of Palmer has approved a 10-year TIF valued at $15,000.
Jarvis Surgical, Inc. (Westfield) – Jarvis Surgical is a manufacturer of precision components for the orthopedic industry. The company manufactures components for replacement knees, hips, shoulders and spines. The company is adding a 15,000 square foot addition to its current facility, and is purchasing new equipment to increase manufacturing capacity. Jarvis will hire 46 new employees, retain 80 employees, and make a private investment of $2 million. The City of Westfield approved a 15-year TIF valued at $40,000.