Photo courtesy of Form Energy Inc. , Somerville, MA
On June 16, the Massachusetts’ Economic Assistance Coordinating Council (EACC) approved nine projects for participation in the Economic Development Incentive Program (EDIP), a program that seeks to create new jobs and help businesses grow by offering credits to lower taxes in exchange for job creation.
These projects are expected to create 1,163 net new jobs and retain 594 jobs throughout Massachusetts, receive $1,343,000 in state tax credits, and leverage approximately $844 million in private investment. Of the applicants this quarter, five are manufacturers and two are located in Gateway Cities. Additionally, the EACC approved four new Vacant Storefront Projects that will receive refundable tax credits of $35,000.
The approved projects include:
EDIP Certified Projects
EDIP is designed to foster job creation and stimulate business growth. A company that participates in EDIP may receive state tax credits and/or local property tax incentives in exchange for a commitment to new job creation, existing job retention, and private investment in the project.
Windward Power Systems, Inc./Superfly Enterprises LLC (New Bedford) – The company was founded in 2006 and is a veteran-owned, Massachusetts-certified disadvantaged business enterprise. The company has been providing sales, service, and parts support for marine diesel engines, generators, and transmissions. Additionally, it has become a distributor of hydraulic fittings and adapters with the ability to build hydraulic hose assemblies. The company plans to expand into hydraulic tube bending in an effort to diversify and take advantage of incoming wind farm projects in the region. The company has identified a vacant building in New Bedford to use for a new manufacturing division of tube bending and hydraulic hose assembly. With this expansion representing a private investment of $1,995,000, the company will create 11 jobs and retain nine employees. New Bedford has also approved a five-year Special Tax Assessment, which is an agreement between the business and host municipality that applies to the entire assessed value of a parcel, valued at $39,452 and the EACC Board awarded state tax credits of $5,500. The company also plans to use the state’s 10% Abandoned Building Renovation Deduction.
Form Energy Inc. (Somerville) – Form Energy was formed in 2017 by five energy storage veterans. The company is developing a rechargeable iron-air battery capable of continuously discharging electricity for 100 hours at a system cost less than one-tenth the total installed cost of lithium-ion battery technology. The company’s Massachusetts headquarters has grown from 6,000 square feet at Greentown Labs in 2018 to 90,000 square feet in three buildings in 2023. They are in need of additional space, power, and parking. Accordingly, they will be leasing a building in the 180,000 to 220,000 square foot range with the necessary power requirements and infrastructure. The company will create 165 new jobs, retain 209 existing jobs, and make a $73 million private investment in the project. The City of Somerville will make a $300,000 lease subsidy and the EACC Board has awarded tax credits in the amount of $1,237,500.
Isotek Corp. dba Isabellenhuette USA (Swansea) – Isabellenhuette USA is a producer of precision thermoelectric and resistance alloys, passive electronic components, and current measurement sensors for the automotive, aerospace, medical, and energy markets. The company sells, stocks, and distributes products manufactured at their headquarters in Germany. Isabellenhuette has purchased a building and land in Swansea and is planning renovations. The project represents a private investment of $3.2 million and will create 14 new jobs and retain 11 existing jobs. The Town of Swansea has approved a 10-year TIF valued at over $150,000 and the EACC Board has approved $100,000 in tax credits.
Local-Only Tax Increment Financing (TIF) Projects
TIF is a negotiated agreement between a business and host municipality. The percentage exemption applies to the incremental increase of assessed value of the parcel due to the private investment and the agreement may include exemptions on personal property tax.
Flagship Pioneering Labs TPC Inc. (Andover) – Flagship Pioneering is a leading bio platform innovation company that conceives, creates resources, and develops breakthrough innovations in unexplored domains of human health. The company is looking to create a 450,000 square foot, state-of-the-art bio manufacturing and R&D global center of excellence focused on pre-clinical and clinical development, analytics and GMP manufacturing RNA/DNA, gene and cell therapies, and microbiome therapeutics. The physical site will support the co-location of up to seven Flagship Companies on a single site with Flagship centralized services and select strategic supply chain partners. The project is expected to create 600 new jobs and represents a private investment of $403 million. Andover has approved a 20-year TIF expected to save the company $17.8 million in property taxes over the life of the TIF.
KARM Hospitality LLC (Brockton) – KARM Hospitality is a family business proposing to build a new 39,400 square foot, 78-room hotel that will represent a total private investment of $10 million. The hotel will have amenities such as a fitness center, indoor pool, and outdoor patio. The hotel will be operated by a third-party management company and the location was chosen for the close proximity to Route 24. The City of Brockton has approved a 10-year TIF estimated to be valued at over $431,000.
Analog Devices Federal LLC – 20 Alpha Road (Chelmsford) – With the recent implementation of the CHIPs Act, Analog Devices understands the need to innovate and increase the resiliency of the US supply chain to ensure uninterrupted delivery of advanced systems that protect national security. The semiconductor modules produced at 20 Alpha Road contain multiple highly integrated components that are critical to Department of Defense programs. The proposed project would involve a capital investment of ~$71 million to repurpose the existing footprint of the facilities and installing new equipment and technology. This project will create 111 new jobs, retain 207 jobs and the Town of Chelmsford has approved a 10 Year TIF estimated to be valued at $585,000.
Analog Devices Federal LLC – 2 Elizabeth Drive/Analog Devices Inc. (Chelmsford) – Analog Devices is undertaking an additional capital project related to the 2 Elizabeth Drive facility to convert existing office space to cleanroom and lab space to accommodate the site’s manufacturing capacity, including 7,800 square feet of secure test space and 9,700 square feet of unsecured test space. The project represents a capital investment of $21 million, will create 22 new jobs, and retain 158 existing jobs. The Town of Chelmsford has approved a 10-year TIF valued at $960,000.
Granite Cove Equities LLC/Granite Cove Venue LLC dba The Cut (Gloucester) – This vacant building is being rehabilitated as a restaurant, bar, music studio, and entertainment venue. The project is a 22,000 square foot building that has been in need of repair for many years. Updates include a new roof, new HVAC, new fire suppression, and upgrades to electric and plumbing systems, the elevator, front facade, flooring, stage, sound and lighting systems, and the installation of a full commercial kitchen. The result will include a 165-person restaurant/bar and a 500-person multi-purpose venue. This project will result in the creation of 40 new jobs and represents a private investment of $10.4 million. The City of Gloucester has approved a 5-year TIF valued at $48,504. The company plans to take advantage of the Commonwealth’s 10% Abandoned Building Renovation Deduction.
ModernaTX Inc. (Marlborough) – Founded in 2010 and headquartered in Cambridge, ModernaTX Inc. is a biotechnology company that produces RNA (mRNA) therapeutics and vaccines. The proposed project would build out 149 Hayes Memorial Drive to create an mRNA manufacturing facility with process equipment including a full manufacturing clean room environment, labs, a warehouse, offices for manufacturing and engineering personnel, and a small food service area. The project will result in the creation of 200 new jobs and a private investment of over $250 million. The City of Marlborough has awarded the project a 20-year TIF valued at over $12.6 million.
Massachusetts Vacant Storefront Projects
The Massachusetts Vacant Storefront Program helps municipalities revitalize their downtowns and commercial areas. Municipalities may apply to the EACC to designate a defined downtown or other commercial area as a Certified Vacant Storefront District. After such a designation, a business may secure a commitment of local matching funds in order to apply to the EACC for refundable EDIP tax credits for leasing and occupying a vacant storefront in that district.
Salted Soul Cave LLC (Acton) – A provider of halotherapy services, an alternative treatment for lung problems. The Town of Acton awarded a $5,000 grant to help fit-out the company’s premises and the state awarded $5,000 in refundable tax credits.
Perry Pool Supply LLC (Gardner) – A provider of residential and commercial grade swimming pool services and products such as chemical testing products, equipment, and accessories. The City of Gardner awarded $10,000 in general financial assistance for space improvements and the state awarded $10,000 in refundable tax credits.
Assemble LLC (Northampton) – Assemble is an independent furniture and gift store. The City of Northampton awarded $10,000 in general financial assistance that will be used as working capital and the state awarded $10,000 in refundable tax credits.
Many Graces LLC (Northampton) – A specialty-cut flower farm and floral design studio. The City of Northampton awarded $10,000 in general financial assistance for fit-out including flooring, furniture, ceiling tiles, work counters, sink, refrigerator, and a dishwasher. The state awarded $10,000 in refundable tax credits.
About the Economic Assistance Coordinating Council
The Massachusetts Economic Assistance Coordinating Council (EACC) is a state board comprised of public and private sector officials that review and approve Economic Development Incentive Program projects and tax credit incentives. The EACC also approves all local Tax Increment Financing and Special Tax Assessment agreements for municipal property tax relief. The EACC’s is part of the Massachusetts Office of Business Development (MOBD) in the Executive Office of Economic Development, which assists businesses expanding in and relocating to Massachusetts, with specific attention paid to projects that create and retain jobs and invest capital. The MOBD team provides a highly responsive, central point of contact that facilitates access to resources, expertise, and incentive programs for businesses.