PATRICK-MURRAY ADMINISTRATION APPROVES ECONOMIC DEVELOPMENT PROJECTS THAT WILL CREATE AND RETAIN 727 JOBS IN COMMUNITIES ACROSS THE COMMONWEALTH
BOSTON – Wednesday, September 26, 2012 – The Economic Assistance Coordinating Council (EACC) today approved eight projects for participation in the Economic Development Incentive Program (EDIP). The projects are expected to create 264 new jobs and retain 463 existing jobs, in addition to leveraging over $62 million in private investment and supporting construction projects across the Commonwealth.
“The Patrick-Murray Administration remains committed to growing our economy and creating jobs through supporting our small businesses and helping them grow and expand here in the Commonwealth,” said Housing and Economic Development Secretary Greg Bialecki. “These EDIP investments are consistent with that goal and part of an overall economic development strategy designed to help Massachusetts continue to recover, and position our businesses and cities and towns for long-term growth and prosperity.”
For calendar year 2012 the Economic Assistance Coordinating Council has approved a total of 34 projects for participation in the Economic Development Incentive Program. The projects will create 1,573 new jobs and retain 7,988 existing jobs, in addition to leveraging more than $588 million in private investment and supporting construction projects across the Commonwealth.
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, 115 projects have received approval, leading to the creation of 6,552 new jobs, retention of 24,071 existing jobs and leveraging of $3.4 billion in private investment. The EACC has assisted 69 manufacturers through the EDIP program and supported 50 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 Project
Rhode Island Novelty, Inc. (Fall River) - Founded in 1986, Rhode Island Novelty is the nation’s leading importer and wholesale distributer of novelty toys. In addition, the company has grown to be one of the largest suppliers of giftware, party supplies, stationary and a number of other product segments. The Rhode Island-based company will partially relocate to the former AJ Wright distribution facility in Fall River’s Industrial Park to accommodate its growing expansion needs. A private investment of over $15.1 million will enable the company to purchase the building and renovate the 500,000 square-foot facility. The project will create 100 new full-time jobs within the Commonwealth. The Economic Assistance Coordinating Council has approved $990,500 in EDIP Investment Tax Credits.
Manufacturing Retention Projects
U.S. Tsubaki Power Transmission LLC (Holyoke) - U.S. Tsubaki is a subsidiary of Tsubakimoto Chain Company which was founded in 1971. The Holyoke facility was opened in 1988 and currently manufactures $40 million of the widest variety of roller chains on the market with applications as diverse as food packaging, forklift trucking and oilfield mining. A private investment of $6.3 million is expected for a 20,000 square-foot expansion of their existing 209,000 square-foot facility. This Manufacturing Retention Project will create 15 new full-time jobs and retain 175 full-time jobs in Massachusetts. The Gateway City of Holyoke is supporting this Manufacturing Retention Project with a Special Tax Assessment valued $34,329. The Economic Assistance Coordinating Council has approved $270,000 in EDIP Investment Tax Credits.
Century Box (Methuen) - Century Box is a second-generation, family-owned business that was acquired out of bankruptcy in 1984. The company is a market leader in high-quality, folding carton packaging products and offers complimentary packaging products and services. Since private box manufacturers must also warehouse product for their customers, Century Box needs to expand its current 57,000 square foot facility in Methuen in order to grow its customer base. Century Box will purchase an adjacent vacant lot and build a 57,000 square-foot facility, doubling the footprint of the company. A private investment of $5.25 million is expected for construction and the purchase of equipment. This Manufacturing Retention Project will create 89 full-time jobs and retain 89 full-time jobs in the Commonwealth. The Gateway City of Methuen is supporting the project with a 10-year Tax Increment Financing agreement valued at $126,720. The Economic Assistance Coordinating Council has approved $1.1 million in EDIP Investment Tax Credits.
L. Knife & Son, Inc. (Everett) - L. Knife & Son was founded in 1898 and is a fourth-generation, family-owned distributer of specialty and imported ales and lagers. The company has evolved from selling groceries in a horse-drawn cart in its early days to now looking to expand to its third distribution facility in Massachusetts. An expected private investment of $13.4 million will enable the purchase and renovation of a 222,000 square-foot vacant industrial building in Everett. The Expansion Project will create 20 full-time jobs and retain 82 full-time jobs in Massachusetts. The Gateway City of Everett is supporting the project with a Special Tax Assessment valued at $1,528,735. The Economic Assistance Coordinating Council has approved $260,000 in EDIP Investment Tax Credits. L. Knife & Son will also be taking advantage of the Commonwealth’s 10 percent Abandoned Building Tax Deduction.
Dirk Auferoth & Associates, LLC (Holyoke) - Dirk Auferoth & Associates is a premier architectural woodworking company that manufactures custom cabinetry and mill work for high-end residential and commercial properties. There is a need for the company to expand to increase production and take on larger projects. Currently, Dirk Auferoth & Associates leases 9,000 square feet of space in Holyoke. A private investment of $461,000 will enable the purchase of a 130,000 square-foot building in Holyoke. There are seven tenants who will remain within the purchased building and Dirk Auferoth & Associates will occupy 20,000 square feet, more than doubling their current space. This Expansion Project will create one full-time job and retain three full-time jobs within the Commonwealth. The Gateway City of Holyoke is supporting the project with a Special Tax Assessment valued at $50,019. The Economic Assistance Coordinating Council has approved $20,000 in EDIP Investment Tax Credits.
Danafilms, Inc. (Westborough) - Founded in Marlborough in 1970, Danafilms is a manufacturer of laminated plastic film products for packaging, agriculture, and other applications. The company is owned by global manufacturing company RKW Group, headquartered in Germany. Danafilms’ headquarters and one of its two manufacturing facilities are located in Westborough, with a second facility located in Franklin, Ky. Both the Westborough and Kentucky facilities are being considered for an expansion which would support RKW Group’s plan to increase sales of agricultural netting in the United States market. The proposed expansion project would add 27,000 square feet to its current 37,560 square-foot manufacturing facility. A private investment of $7 million is expected for construction, renovations and purchase of equipment. The project would create 20 full-time jobs and retain 62 full-time jobs in the Commonwealth. The Town of Westborough is supporting the project with a five-year Tax Increment Financing Agreement valued at $30,000. The Economic Assistance Coordinating Council has approved $400,000 in EDIP Investment Tax Credits. A formal decision with the purchase of the building is expected in late 2012.
MicroChem Corp. (Westborough) - Founded in 1992, MicroChem develops and manufactures specialty chemicals including photoresists, optical dyes and ancillary materials for a number of technology markets including advance lithography, optoelectronics and microelectronics. The company will purchase a 76,000 square-foot facility that will allow reorganization of existing operations and will support future growth. A private investment of over $13 million is expected for the purchase of building and improvements. The company will maintain limited operations at its current Newton facility. This expansion project will create 15 full-time jobs and retain 47 full-time jobs in the Commonwealth. The Town of Westborough is supporting the project with a 15-year Tax Increment Financing Agreement that includes a five-year Personal Property Tax reduction valued at $217,573. The Economic Assistance Coordinating Council approved $300,000 in EDIP Investment Tax Credits.
TIF-Only Project (the following project will not receive an EDIP- Investment Tax Credit):
Utility Service New England (Westfield) - Established in 2003, Utility Service New England is an electric utility contractor that primarily performs the interconnection between the end user and the utility company itself. The company currently leases a facility in Westfield, however has experienced consistent growth and is in need of additional space. USNE will be having a newly constructed 11,000 square-foot facility built by O’Leary Builders and will then lease to own the building within three years. The private investment is expected to be about $1.2 million and will create four full time-jobs, while retaining five full-time jobs in the Commonwealth. The City of Westfield is supporting the project with a five-year Tax Increment Financing Agreement valued at $36,423.