Patrick Administration Approves Economic Development Projects That Will Create and Retain 5,449 Jobs in Communities Across The Commonwealth
BOSTON – Wednesday, June 26, 2013 – The Economic Assistance Coordinating Council (EACC) today approved 19 projects for participation in the Economic Development Incentive Program (EDIP), which are expected to create 2,347 new jobs and retain 3,102 existing jobs, in addition to leveraging nearly $406 million in private investment and supporting construction projects across the Commonwealth.
The projects approved today push the number of new jobs created through the EDIP program to over 10,000, following Governor Patrick’s reform of the program in 2009.
Among the 19 approved projects are 12 manufacturing companies and 9 projects located in Gateway Cities. The EDIP program helps reduce the cost of business for these companies, which is one of the five main focuses of the Patrick Administration’s long-term economic development plan. The EACC meets on a quarterly basis to review applications.
“Supporting companies that are choosing to grow in Massachusetts is an important part of our effort to create economic opportunity for everyone,” said Secretary of Housing and Economic Development Greg Bialecki. “These investments will help these businesses expand here and fit with our overall economic development strategy of making our businesses and communities stronger in the long term.”
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, 160 projects have received approval, leading to the creation of 11,449 new jobs, retention of 37,207 existing jobs and leveraging of $4.5 billion in private investment. The EACC has assisted 92 manufacturers through the EDIP program and supported 71 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 (EEP)
athenahealth, Inc. (Watertown) – Founded in 1997, athenahealth, Inc. is a publicly-traded supplier of cloud-based health information technology services. With a history of growing 30 percent per year since its founding, the company has made a long-term commitment to Massachusetts by acquiring the land and existing buildings of the Watertown Arsenal for $ 168.5 million. As part of a multi-phase improvement project, athenahealth plans to invest an additional $89 million for building improvements, which will include construction, furnishings and equipment. The project will create 1,900 net new full-time jobs over 10 years and retain 1,047 full-time employees in the Commonwealth. The EACC has approved $9.5 million in EDIP Investment Tax Credits.
Manufacturing Retention Projects (MRP)
Richline Group, Inc. (Attleboro) – The Richline Group, Inc. is a wholly-owned subsidiary of Berkshire Hathaway and is a fine- jewelry marketer, manufacturer and distributer of gold, diamond and gemstone jewelry. In 2012, Richline purchased Inverness Corporation, previously a division of Cookson Precious Metals/Materials Products Group, located in Attleboro. Richline is considering a major capital investment of $3.63 million for the purchase of manufacturing equipment and an interior fit-out of approximately 500,000 square feet of the facility to accommodate new manufacturing space. The project will create 100 net new full-time jobs and retain 628 full-time jobs in Massachusetts. The EACC has approved $400,000 in EDIP Investment Tax Credits.
Matouk Textile Works, Inc./ John Matouk & Company / Matouk Factory Store / Sheltering Sky Real Estate, LLC (Fall River) – Founded in 1929 by John Matouk, the Matouk Companies is a manufacturer and distributer of linens including product offerings for the bed, bath, table and other household accents. The company headquarters and factory store are in a state-of-the-art building featuring a solar energy system that produces over 35 percent of the electricity required to operate the facility. The Manufacturing Retention Project would require a private investment of over $10.4 million to nearly double the company’s footprint in Fall River. The company proposes new construction of a 40,000 square-foot manufacturing facility, as well as improvements and renovations to the existing 47,000 square-foot facility. The project will create 45 net new full-time jobs and retain 85 full-time jobs in the Commonwealth. The City of Fall River is supporting the project with a 10-year Tax Increment Financing agreement valued at $1,502,913. The EACC has approved $516,900 in EDIP Investment Tax Credits.
F & M Tool and Plastics, Inc. (Leominster) – Incorporated in 1995, F & M Tool and Plastics, Inc. is an injection molding plastics manufacturer. Since 1995, the company has purchased two plastics companies and in 2008 designed, developed and tooled a new product of clear plastic storage containers called Bella Contemporary Storage. The Bella Contemporary Storage line enabled the company to quadruple its revenue. As a result of the company’s rapid growth, F & M Tool and Plastics plans to purchase a 225,000 square-foot facility that is currently leased for warehousing, and covert the space into a fully operational manufacturing facility. A private investment of over of $12 million is expected for the purchase of the building, interior fit-out and purchase of equipment. The project will create 36 net new full-time manufacturing positions and retain six full-time jobs at the site. The City of Leominster is supporting the project with a five-year Tax Increment Financing agreement valued at $30,128. The EACC has approved $540,000 in EDIP Investment Tax Credits.
Expansion Projects (EP)
TOG Manufacturing Company, Inc. (Adams) – Founded in Pittsfield in 1982 and located in North Adams since 1987, TOG Manufacturing is a manufacturer of precision specialty metal components supporting the power generation, offshore drilling and turbine manufacturing industries. In 2012, the company was acquired by Global Power Equipment Group, Inc. TOG Manufacturing is constrained at its existing 24,000 square-foot facility and has identified a 79,000 square-foot facility in Adams. A private investment of $1.7 million will enable TOG to utilize lean manufacturing principles that will enhance their productivity in 59,000 square feet of the building and will grow into the remaining space over five years. The project will create six net new full-time manufacturing jobs and retain 45 existing full-time jobs within the Commonwealth. The Town of Adams is supporting the project with a seven-year Special Tax Assessment valued at $174,912. The EACC has approved $75,000 in EDIP Investment Tax Credits.
Evans Machine Company, Inc. (Brockton) – Located at its Brockton headquarters since 1984, Evans Machine Company is a family-owned manufacturer of custom equipment and machinery for a wide range of industries. The company’s current facility is capacity constrained and unable to sustain the growing demand for its manufacturing services. A private investment of $3.08 million will enable a 15,000 square-foot expansion to their existing facility, which will predominately be used for manufacturing space. The project will create 10 net new full-time jobs and retain 45 full-time jobs at the site. The City of Brockton is supporting the project with a 15-year Tax Increment Financing agreement valued at $69,073. The EACC has approved $130,000 in EDIP Investment Tax Credits.
Golden Cannoli Shells Company, Inc. (Chelsea) – Established in 1970, Golden Cannoli Company is a second-generation owned and operated Italian pastry manufacturer, specializing in cannoli shells and ricotta filling. In the past few years, the company has expanded from distributing locally in New England to across the United States and Canada. The company recently secured two large wholesale accounts, which quickly made their current two-level bakery in Somerville insufficient. The company will invest $3.01 million to purchase and build out a 25,000 square-foot facility in Chelsea that will provide adequate capacity for manufacturing, storage and shipping. The expansion project will create 13 net new full-time jobs in Chelsea and retain 29 full-time jobs in the Commonwealth. The City of Chelsea is supporting the project with a five-year Tax Increment Financing agreement valued at $34,085. The EACC has approved $162,500 in EDIP Investment Tax Credits.
Sinicon Plastics, Inc. (Dalton) – Founded in Pittsfield in 1968, Sinicon Plastics specializes in molding engineering resins and liquid silicone for a wide array of industries, including: medical, military, aerospace and industrial applications. Currently, the company operates out of a 35,000 square-foot facility, in which they are only utilizing 25,000 square feet of space. A private investment of $865,000 will enable the company to expand manufacturing capabilities into the remaining 10,000 square feet to accommodate a substantial increase in orders from a large, existing customer. The expansion project will create 14 net new full-time jobs and retain 21 full-time jobs in the Commonwealth. The Town of Dalton is supporting the project with a five-year Tax Increment Financing agreement valued at $6,166. The EACC has approved $69,266 in EDIP Investment Tax Credits.
Ozark Automotive Distributors, Inc. (a subsidiary of O’Reilly Auto Parts, Inc.) (Devens) – Founded in 1957, O’Reilly Auto Parts started with one store and 13 employees located in Springfield, Mo., and today, operates over 4,000 stores and 24 regional distribution centers throughout the country. The company offers a variety of products and services including replacement parts, tools, supplies, equipment and accessories. Due to growing customer demand in New England, the company has identified a 370,000 square-foot facility in Devens to meet its distribution requirements. O’Reilly Auto Parts plans to invest $32.9 million for the purchase of a vacant building that will be equipped with state-of-the-art warehouse equipment. The expansion project will create 80 net new full-time jobs in the Commonwealth. Devens is supporting the project with a five-year Special Tax Assessment valued at $791,772. The EACC has approved $400,000 in EDIP Investment Tax Credits. Ozark Automotive Distributors will also benefit from the Commonwealth’s 10 percent Abandoned Building Deduction.
Cranberry Hospitality LLC/ LaFrance Hospitality Company (Wareham) – LaFrance Hospitality will be partnering with A.D. Makepeace Company, the world’s largest cranberry grower, to build a 50,000 square foot, 90-room, TownePlace Suites by Marriott. The hotel will be the anchor tenant to Rosebrook Place, a new, mixed-use development just off of I-495. The hotel will feature an adjoining 10,000 square-foot function space and will look over a cranberry bog owned by A.D. Makepeace. A.D. Makepeace also plans restaurant, retail and apartment developments on the site. A private investment of over $10 million will result in Cranberry Hospitality and LaFrance Hospitality creating 50 net new full-time jobs in Massachusetts. The Town of Wareham is supporting the project with a 15-year Tax Increment Financing agreement valued at $622,199. The EACC has approved $65,000 in EDIP Investment Tax Credits.
Tax Increment Financing Only; the following projects will not receive an EDIP Investment Tax Credit
Kohl's Illinois, Inc. (Barnstable) – Kohl’s is a retailer based in Menomonee Falls, Wis. A private investment of $6 million will enable Kohl’s to move into the Hyannis market and open a 55,000 square foot retail store in Barnstable. The company will hire 10 net new full-time employees and 75 part-time associates at its new store. The Town of Barnstable is supporting the project with a 20-year Tax Increment Financing agreement valued at $26,363.
Signature Breads, Inc. (Chelsea) – Signature Breads is a manufacturer and distributer of all natural, trans-fat-free and corn-syrup-free breads for restaurants and stores nationwide. Beginning as small, independent bakeries, Signature Breads became part of the Pillsbury and General Mills companies in 1994. However, in 1996, the employees purchased the company to become the largest minority-owned bakery in the country. To increase efficiency through automation, improve the company’s competitive position and enable long-term growth, the company will be investing $7.6 million in automation equipment at its Chelsea facility. Signature Breads will retain 145 full-time employees at the site. The City of Chelsea is supporting the project with a five-year Tax Increment Financing agreement valued at $97,920.
Waterfront Investments LLC (Fall River) – Waterfront Investments will convert an abandoned building on Fall River’s waterfront into a new, 12,000 square-foot restaurant and banquet facility. An estimated private investment of $2 million is expected for construction, equipment and improvement of the existing marina. Upon completion, the project will create 52 net new full-time jobs in Fall River. The City of Fall River is supporting the project with a seven-year Tax Increment Financing agreement valued at $164,789 and a personal property tax exemption estimated to be $200,000. Waterfront Investments will also benefit from the Commonwealth’s 10 percent Abandoned Building Deduction.
Invensys Systems, Inc. (Foxborough) – Located in Foxborough for over 100 years, Invensys Systems is a leading global technology, software and consulting company. The company designs and manufactures measurement and instrumentation products to manage specific parameters (temperature, pressure, flow, etc.) of the manufacturing process for the global industrial control and process markets. Invensys has proposed plans to renovate and consolidate its three facilities into two of its existing Foxborough buildings to maximize efficiency and provide a more modern and attractive workspace. A private investment of $33 million is expected for renovation of office, research and development, assembly and engineering space. The project will retain 900 full-time jobs in the Commonwealth. The Town of Foxborough is supporting the project with a 15-year Tax Increment Financing agreement valued at $1,880,944.
Boyd Technologies, Inc. (Lee) – Located in Lee since 1982, Boyd Technologies, Inc. is a precision converter and contract manufacturer of advanced flexible materials, primarily in high-tech markets. The company launched its five-year strategic growth plan in 2012 and this expansion represents the first phase of the plan, which is focused on their medical device industry product lines in biopharmaceutical filtration and advanced wound care. The company will invest $1.5 million for new Class 7 clean-room and capital equipment. The expansion will create eight net new full-time jobs and retain 41 full-time jobs in Massachusetts. The Town of Lee is supporting the project with a five-year Tax Increment Financing agreement valued at $5,523.
D’Amicis Bakery/Trinacria Properties, LLC (Lynn) -- D'Amici's Bakery was started in 1993 by a husband-and-wife team in Lynn. Their first location had only three employees. Today, 65 full-time employees operate three locations in Lynn, Wakefield and Melrose. D’Amici’s Bakery will be adding another Lynn retail store, as well as a commissary service to their other locations. The company will invest $1.05 million for the purchase and fit-out of an abandoned building in Lynn. An Italian restaurant and frozen yogurt store will also be tenants of this building. The project will create eight net new full-time jobs, retain 17 full-time employees in Lynn and retain 65 full-time employees at their other Massachusetts locations. The City of Lynn is supporting the project with a five-year Tax Increment Financing agreement valued at $18,493. D’Amici’s bakery will also benefit from the Commonwealth’s 10 percent Abandoned Building Deduction.
Northampton Height ALF d/b/a Christopher Heights of Northampton (Northampton) – Christopher Heights of Northampton will be the Grantham Group’s fifth affordable, assisted-living community and their first in western Massachusetts. The company will be constructing a 50,000 square-foot, three-story building on a 1.3-acre site on Village Hill in Northampton that will be leased from MassDevelopment for 80 years. A private investment of $13.4 million is expected for new construction that will consist of 71 studio apartments and 12 one-bedroom apartments. The Town of Northampton is supporting the project with a 15-year Tax Increment Financing agreement valued at $213,900.
South Shore Millwork, Inc. (Norton) – Established in 1991, South Shore Millwork is a customer manufacturer of high-end architectural millwork for the building and construction industry. The company’s market is predominately residential customers, which drives approximately 80 percent of revenues. South Shore Millwork’s product offerings include doors, windows, cabinetry, casework and large special wood assemblies. A private investment of $3 million is expected for a 30,000 square-foot expansion and equipment fit-out to their existing 45,000 square-foot facility in Norton. The expansion will create five net new full-time jobs and retain 68 full-time jobs in the Commonwealth. The Town of Norton is supporting the project with an 11-year Tax Increment Financing agreement valued at $170,536.
Applied Plastics Company, Inc./Nailling LLC (Norwood) – Located in Norwood since 1954, Applied Plastics is a family-owned coating and finishing company that services customers in virtually every industry, ranging from aerospace to medical. The company has experienced major growth as a subcontractor providing PTFE-coated wire components to the cardiovascular segment of the medical device industry. Applied Plastics plans to construct a 15,000 square-foot facility that will be located adjacent to their existing facility on Endicott Street. A private investment of $2.5 million is expected for the construction and fit-out of the space that will be used for production, warehousing and distribution. The new construction project will create 10 net new full-time jobs and retain 30 full-time employees in Massachusetts. The Town of Norwood is supporting the project with a 20-year Tax Increment Financing agreement valued at $72,678.