PATRICK ADMINISTRATION APPROVES ECONOMIC DEVELOPMENT PROJECTS THAT WILL CREATE AND RETAIN 1,378 JOBS IN COMMUNITIES ACROSS THE COMMONWEALTH
Projects will leverage over $642 in private investment
BOSTON - Tuesday, June 24, 2014 – The Economic Assistance Coordinating Council (EACC) today approved 10 projects for participation in the Economic Development Incentive Program (EDIP), which are expected to create 679 new jobs and retain 699 existing jobs, in addition to leveraging over $642 million in private investment and supporting construction projects across the Commonwealth.
Among the 10 approved projects are four manufacturing companies and four projects located in Gateway Cities. The EDIP program will facilitate the growth of these businesses, which will contribute to job creation and private investment in the state. The EACC meets on a quarterly basis to review applications.
“Supporting companies that are choosing to grow in Massachusetts is an important part and one of the Administration’s key economic development objectives to create economic opportunity in every region of the Commonwealth,” said Massachusetts Office of Business Development Executive Director Michael Hunter. “These investments will help these companies expand and continue to enhance the Massachusetts economy by making our communities stronger in the long term.”
The EDIP is the Commonwealth’s investment tax credit program for businesses. In 2009, Governor Deval Patrick and Housing and Economic Development Secretary Greg Bialecki, along with the Legislature, reformed the program and, as a result, the EDIP has become one of the most effective programs helping business grow in Massachusetts.
Since these changes, 197 projects have received approval, leading to the potential creation of 13,983 new jobs, the retention of 40,451 existing jobs and leveraging of over $5.4 billion in private investment. The EACC has assisted 106 manufacturers through the EDIP and has supported 91 projects in Gateway Cities. The EACC approved the following projects at today’s meeting:
Manufacturing Retention Project (MRP):
Asahi America, Inc. (Lawrence) – Asahi America Inc. is a leading manufacturer, distributer and pioneer in the corrosion resistant thermoplastic fluid solutions industry. Through distributer and end-user education on thermoplastics as a viable alternative to metal piping systems, the use of thermoplastics has grown and the company’s product line now features valves, actuators, piping systems and specialty components. Asahi America is currently located in a 100,000 square foot facility in Malden; however, growth of the business in the last four years as well as forecasted growth has caused the company to search for a larger facility which would allow them to expand their inventory and production operations. Asahi has identified a 170,000 square foot facility in Lawrence to make their North American headquarters and will invest approximately $17.5 million to purchase the facility, transfer manufacturing and warehousing operations, purchase a state-of-the-art warehouse racking system and create a dedicated mezzanine space for a new R&D department. The Manufacturing Retention Project will create 25 new full-time jobs in the Lawrence and retain the company’s existing 93 full-time employees in the Commonwealth. The City of Lawrence is supporting the project with a 10-Year Tax Increment Financing Agreement valued at $272,001. The EACC has approved $375,000 in EDIP Investment Tax Credits.
Expansion Projects (EP):
MK Parcel 7 Development LLC/Meredith Management Corporation (Boston) – MK Parcel 7 Development LLC is a single purpose affiliate entity of Meredith Management Corporation, a real estate development and management firm founded in 1951. The “Fenway Center” project will be a $550 million privately financed smart growth, transit-oriented, mixed commercial and residential development that will connect the City of Boston’s Fenway-Kenmore-Audubon Circle neighborhoods. The company has the exclusive rights to acquire the air rights and a ground lease for parcels between Brookline Avenue and Beacon Street from the Massachusetts Department of Transportation (MassDOT), marking the first air rights project in the City of Boston since the 1980s. The project will comprise of the construction of a 100,000 square foot deck over the Massachusetts Turnpike which will act as the base for a 27-story high rise building, 57,000 square feet of ground retail, two residential apartment buildings located adjacent to the newly renovated Yawkey Commuter Rail Station, a 590 car below grade parking garage and a 750 car shared use parking lot. The Expansion Project will create 106 net-new full-time jobs in Commonwealth. The City of Boston is supporting the project with a six-year Special Tax Assessment valued at approximately $4,649,235. The project did not apply for EDIP Investment Tax credits.
Kennametal, Inc. (Greenfield) – Founded in 1938, Kennametal, Inc. is a publicly traded (NYSE: KMT), global market leader in tooling for the mining and highway construction industries. The company currently has 14,000 employees worldwide and services customers in more than 60 countries. Kennametal is in the process of rebalancing its manufacturing and logistics to address market conditions and new demand patterns in the United States. As a result of this reevaluation, Kennametal has decided to shutter a manufacturing facility in Lyndonville, VT and are considering the Greenfield facility as well as a site in Asheboro, NC to relocate the production line to. The 180,000 square foot Greenfield site under consideration is the former location of Greenfield Tap & Die which was founded in 1872 and acquired by Kennametal in 1997. If Massachusetts is selected for the placement of the production line, Kennametal will invest $4.65 million to upgrade the facility and purchase and transfer equipment. The Expansion Project will create 70 net-new full-time jobs in Greenfield and retain the company’s existing 63 full-time employees in the Commonwealth. The Town of Greenfield is supporting the project with a 20-Year Tax Increment Financing Agreement valued at $182,717. The EACC has approved $465,000 in EDIP Investment Tax Credits.
SanDisk Corporation (Marlborough) – A publically traded (NASDAQ: SNDK), Fortune 500 and S&P 500 company, SanDisk Corporation is a global leader in flash storage solutions. SanDisk’s products can be found worldwide in retail stores, embedded in smart phones, tablets and PCs and at many of the world’s largest data centers. In 2013, SanDisk Corporation acquired SMART Storage Solutions, which induced the California headquartered company to expand their Massachusetts operations. SanDisk’s current facility in Westford is at capacity and the company intends to invest over $14.5 million to lease and upgrade a 60,000 square foot building in Marlborough. Upgrades to the space will include the build out of 15,000 square feet of modern lab facilities, 15 conference rooms, a town hall style meeting space to accommodate quarterly staff meetings and a customer facing lobby to showcase the SanDisk brand. The Expansion Project will create 60 net-new full-time jobs in Marlborough and retain the company’s existing 80 full-time employees in the Commonwealth. The City of Marlborough is supporting the project with a five-year Tax Increment Financing Agreement valued at $72,193. The EACC has approved $300,000 in EDIP Investment Tax Credits.
Kielb Welding Enterprises, Inc. d/b/a Advanced Welding/ Manufacturers Group LLC (Springfield) –Incorporated in 1978, Advanced Welding provides welding, brazing and fabrication services primarily to the aerospace industry. The company has experienced a steady growth in sales over the past four years and is seeking to expand their current 8,000 square foot real estate footprint to accommodate for future growth. An investment of nearly $2.5 million will enable Advanced Welding to purchase and upgrade a vacant 41,000 square foot building in Springfield, in which they will occupy approximately 25,000 square feet and lease the remaining space to the Red Cross. The Expansion Project will create six net-new full-time jobs in Springfield and retain the company’s existing nine full-time employees in the Commonwealth. The City of Springfield is supporting the project with a five-year Tax Increment Financing Agreement valued at $69,107. The EACC has approved $13,126 in EDIP Investment Tax Credits. Advanced Welding will also benefit from the Commonwealth’s 10 percent Abandoned Building Deduction.
Om Shri Ambika LLC/Om Shri Agasi Mata LLC (Sturbridge) – Founded in 2007, Om Shri Ambika LLC, was established to purchase a 55-room American Motor Lodge on Route 20 in Sturbridge. The lodge was closed in 2009 and demolished in 2011 due to the high cost of maintaining the structure, which was built in the 1960s. The company plans to invest over $10.8 million to construct a new four story, 77-room limited service Holiday Inn Express & Suites on the former site of the American Motor Lodge. Amenities will include an enclosed pool, fitness center, game room, a 3,000 square foot multi-purpose meeting room, breakfast area and a business center. The Expansion Project will create 12 net-new full-time jobs in the Commonwealth. The Town of Sturbridge is supporting the project with a 10-Year Tax Increment Financing Agreement valued at $414,865. The EACC has approved $40,000 in EDIP Investment Tax Credits.
Tax Increment Financing Only Projects - (the following projects applied to the EACC solely for approval of their local Tax Increment Financing Agreements and will not receive an EDIP Investment Tax Credit):
Aspen Technology, Inc. (Bedford) – Founded in 1981 by Massachusetts Institute of Technology students, Aspen Technology, Inc. is a global provider of process optimization software solutions, which are designed to manage and optimize plant and process design, operational performance, and supply chain planning. The company is seeking to consolidate and expand its headquarters operation. After consideration of sites in Massachusetts and Southern New Hampshire, Aspen Technology will consolidate its current Burlington, Massachusetts and Nashua, New Hampshire employees into a 140,000 square foot facility in Bedford. The company will invest over $12.9 million to renovate and fit out the building into a modern facility. The Local Incentive Only Project will create 302 net-new full-time jobs in Bedford and retain 408 full-time jobs in the Commonwealth. The Town of Bedford is supporting the project with a 5-Year Tax Increment Financing Agreement valued at $38,094.
Vicente’s Liquors and Tropical Grocery, Inc. / Vicente’s Property LLC (Brockton) – Vicente’s Liquors and Tropical Grocery first opened in Brockton in 1994 as a variety store specializing in high quality ethnic foods, until 2005 when the company relocated and expanded into an 18,000 square foot location also located in Brockton. Vicente’s is again seeking to expand by opening a second location, as their single location is unable to serve the growing demand from the community. The company has pinpointed a 24,000 square foot former Star Market and adjacent parcels that it plans to invest $19.5 million to purchase and expand into a modern 32,000 square foot full-service supermarket. Additionally, the project will include two pad sites that will available for lease to retail tenants. The Local Incentive Only Project will create 28 net-new full-time jobs in the Brockton and retain 75 full-time employees in the Commonwealth. The Town of Brockton is supporting for the project with a 13-Year Tax Increment Financing Agreement valued at $1,204,222. Vicente’s Liquors and Tropical Grocery, Inc. and Vicente’s Property LLC will also benefit from the Commonwealth’s 10 percent Abandoned Building Deduction.
Berkshire Sterile Manufacturing, LLC (Lee) - Berkshire Sterile Manufacturing is newly established company by former executives of Hyaluron, Inc., which was sold to Albany Molecular Research in 2010. The company will provide sterile injectable drug manufacturing primarily for new products being evaluated by biotechnology, pharmaceutical and medical device companies. Berkshire Sterile Manufacturing will formulate, sterilize and fill liquid drug products in their state of the art clean rooms and return the drugs to the sponsor company for use in their clinical studies. The company has identified an 116,000 square foot building in Lee that they will purchase and occupy 16,000 square feet and lease the remaining space to existing tenants. A private investment of approximately $9.2 million will enable purchase of the building, start-up costs and building upgrades that include highly specified clean room construction. The Local Incentive Only Project will create 60 net-new full-time jobs in the Lee. The Town of Lee is supporting for the project with a 15-Year Tax Increment Financing Agreement valued at $739,590.
Amasdave LLC d/b/a Dave’s Truck Repair, Inc. (Springfield) - Started as a one man shop in 1987, Dave’s Truck Repair has grown into a highly regarded truck and trailer repair facility and today has 25 full-time employees. In order to meet customer demand, the company plans to open a second facility and has identified a three-acre parcel which includes two buildings totaling approximately 18,150 square feet. Dave’s Truck Repair will invest approximately $810,000 to purchase, upgrade and fit the properties. The Local Incentive Only Project will create six net-new full-time jobs in Springfield and retain 25 full-time jobs in the Commonwealth. The City of Springfield is supporting for the project with a 13-Year Tax Increment Financing Agreement valued at $28,128.
