PATRICK-MURRAY ADMINISTRATION APPROVES ECONOMIC DEVELOPMENT PROJECTS THAT WILL CREATE AND RETAIN 1,900 JOBS IN COMMUNITIES ACROSS THE COMMONWEALTH
BOSTON --Tuesday, March 27, 2012 – The Economic Assistance Coordinating Council (EACC) today approved nine projects for participation in the Economic Development Incentive Program (EDIP), which will create more than 320 new jobs, retain 1,600 existing jobs, and leverage $106 million in private investment and supporting construction projects across Massachusetts.
“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.”
The EDIP is the Commonwealth’s investment tax credit program for businesses. In 2009, Governor Patrick and Secretary Bialecki, along with the Legislature, significantly reformed the program and as a result EDIP has become one of the most effective programs helping businesses grow in Massachusetts. Since these changes, 87 projects have received approval, leading to the creation of 5,028 new jobs, retention of 16,818 existing jobs and $2.7 billion in private investment. The EACC has assisted 51 manufacturers through the EDIP program and supported 35 projects in Gateway Cities.
The EACC approved the following projects at today’s meeting:
Manufacturing Retention Project (MRP)
Sealed Air Corp. (Holyoke) - Founded in 1960, Sealed Air is a global leader in food safety and security, facility hygiene, product protection and is most commonly known for its invention of Bubble Wrap cushioning material. Currently they have three facilities in Massachusetts (Holyoke, Ayer and Wilmington). In February 2012 Sealed Air announced they will shutter its Rochester, N.Y. facility. The Holyoke facility is under consideration for the consolidation. This project would add a new production line to the Holyoke facility, with a capital investment of $443,000 for building modifications and equipment. The addition of the production line will create 12 full-time jobs and retain 63 jobs in Holyoke. The City of Holyoke is supporting the Manufacturing Retention Project with a five-year Tax Increment Financing award of $19,564. The Economic Assistance Coordinating Council has approved $177,264 in EDIP Investment Tax Credits.
Expansion Projects (EP)
Poplar Hill Machine, Inc. (Conway) - Founded in 2004, Poplar Hill Machine specializes in high-tech metal and plastic machining, primarily for the microwave telecommunications industry. As a result of increased sales demand, the company will add an additional 2,400 square feet of manufacturing space to its 7,500 square foot facility. A private investment of almost $1.6 million will fund the expansion and purchase of new machinery. The company will create two new jobs and retain 10 jobs. The Town of Conway is supporting this Expansion Project with a 10-year Tax Increment Financing award of $17,809. The Economic Assistance Coordinating Council has approved $40,000 in EDIP Investment Tax Credits.
Rodney Hunt Co. (Orange) - Based in New England since 1940, Rodney Hunt Company manufactures engineered water flow control products including gates, valves, and actuation equipment. The company is part of the Water Management Platform of the Rexford Corp. that in November 2011 announced the consolidation of operations of its facility in Magog, Quebec, Canada. The Orange facility is under consideration for this consolidation. This expansion will result in nearly $7 million in private investment for equipment, create 60 jobs and retain 221 jobs. The Town of Orange supports this project with a five-year Special Tax Assessment of $163,942. The Economic Assistance Coordinating Council has approved $545,600 in EDIP Investment Tax Credits. A formal decision on where to place this production line is to be made during the second quarter of 2012.
Thermo Fisher Scientific, Inc. (Tewksbury) - Thermo Fisher Scientific is a world leader in servicing science-based companies with products and services that help solve complex analytical challenges, improve patient diagnostics and increase laboratory productivity. This division of Thermo Fisher Scientific manufactures handheld scanners that allow the completion of chemical analysis work out of the laboratory and in the field. The company is consolidating four Massachusetts facilities into a new Tewksbury facility it plans to purchase. This facility will house the entire Portable Analytic Business Unit, both the office and assembly functions. The private investment is expected to be $17.8 million and will create 100 new jobs while retaining 400 jobs in the Commonwealth. This will be the first Economic Development Incentive Program project for the Town of Tewksbury as Andover/Tewksbury is a newly created Economic Target Area. The Town of Tewksbury has approved a 15-year Tax Increment Financing agreement of $484,265. The Economic Assistance Coordinating Council has approved $855,000 in EDIP Investment Tax Credits. Thermo Fisher Scientific plans to locate in a building that has been vacant for several years and therefore will also benefit from the 10 percent Abandoned Building Tax Deduction.
Cheer Pack North America (West Bridgewater) - Cheer Pack is a strategic partnership established in 2010 for the purpose of developing and manufacturing packaging products for the food industry utilizing spouted pouch technology. The three partners are CDF Corp. of Plymouth, Gualpack of Italy and Hosokawa Yoko Co. of Japan. The company’s products support food such as baby food, dairy, drinks, purees, fruit snacks and wines. After consideration of locating in other states such as North Carolina, Kentucky and Illinois, Cheer Pack chose to renovate and lease 75 percent of a 315,000 square foot building in West Bridgewater and purchase equipment. Over time, the company expects to expand further and utilize the entire building. The project will create 77 new jobs and retain 35 jobs with a private investment close to $25 million. The building has been vacant for several years and as a result Cheer Pack is able to take advantage of the 10 percent Abandoned Building Tax Deduction. In addition, the Town of West Bridgewater has approved a 15-year Tax Increment Financing agreement (which includes a personal property tax exemption) in the amount of $4,945,758. The Economic Assistance Coordinating Council awarded an EDIP Investment Tax Credit valued at $1,473,785.
Siemens Industry, Inc. (Worcester) - Siemens Industry offers solutions and services to enhance productivity and efficiency and to increase operational flexibility in a wide array of industrial sectors. The Worcester operation is a business sub-segment of Metals Technologies, called Siemens MT, which focuses on design, manufacturing, installation, commission and service of rod and bar mills for the steel and non-ferrous industries and flat strip mill industry. Siemens MT plans to consolidate its non-manufacturing employees from two of its Worcester facilities into 38,000 square feet of space in the new Gateway Park Building with a private investment of over $2.5 million. The consolidation will create 12 new jobs and retain 192 current jobs. The City of Worcester was able to offer a 15-year Tax Increment Financing valued at $2,306,390. The Economic Assistance Coordinating Council approved EDIP Investment Tax Credits of $252,740.
TIF-Only Projects: the following projects will not receive an EDIP Investment Tax Credit
Cumar, Inc. (Everett) - Established in 1994, Cumar is a manufacturer and installer of natural stone for architectural applications. They have emerged as a leading source for high-end natural stone countertops, fireplaces, floors, bathrooms, kitchen, walls and specialty projects in both commercial and residential markets. Cumar plans to expand to and renovate an adjacent building that has been unoccupied for a number of years. Ultimately, the company hopes to be the anchor tenant in a design showroom cluster featuring other home renovation companies, bringing future economic development to a blighted corner of industrial space. This expansion will create 30 new jobs and retain 40 current jobs. The private investment for the project is expected to be $6.5 million. The City of Everett is supporting the project with a five-year Tax Increment Financing of $170,898. Cumar will also be taking advantage of the Commonwealth’s 10 percent Abandoned Building Tax Deduction.
Factory Mutual Insurance Co. / Neponset River LLC (Norwood) - Established over 175 years ago, Factory Mutual Global provides comprehensive global commercial and industrial property insurance. The company insures one out of every three Fortune 1000 companies. The company plans to construct and occupy a four-story, 160,000 square-foot office building on land owned by Neponset River LLC. The building is LEED (Leader in Energy and Environmental Design) certified and a portion of the facility will be leased to Dedham Medical Services, allowing for enhanced outpatient services. The project will consolidate current Massachusetts employees, retaining 629 full-time jobs and creating 20 full-time jobs. The private investment is expected to $40 million. The Town of Norwood approved a 20-year Tax Increment Financing agreement of $328,604.
F.W. Webb Co. (Springfield) - Founded in 1866, F.W. Webb is New England’s largest plumbing and heating distributer with over 70 locations in New England and New York. It is a one-stop resource for plumbers, HVAC technicians and institutional purchasing agents. Due to increased business in Western Massachusetts, F.W. Webb has decided to construct a new and larger facility to replace the company’s existing Springfield building. The company has purchased 14.5 acres of land located in the Smith & Wesson Industrial Park from the Springfield Redevelopment Authority. The company plans to construct a 68,000 square foot building that will house office space, a showroom and a warehouse facility. The total private investment is expected to be $6.5 million. This project will create seven new full-time jobs and retain nine full-time jobs. The City of Springfield approved a 10-year Tax Increment Financing award of $496,868.