Worcester Business Journal

wbjournal.com | January 21, 2019 | Worcester Business Journal 15 C o m m e r c i a l R e a l E s t a t e F O C U S Hits: The largest investments that came as a result of successful tax breaks, ranked by size: Sources: Respective communities Hits & misses Year Promised Promised Company Industry Community signed jobs investments Boston Scientific Corp. Manufacturing Marlborough 2006 331 $250,000,000 MathWorks, Inc. Software Natick 2009 400 $150,000,000 Caraustar Industries, Inc. Manufacturing Fitchburg 2000 90 $100,000,000 AbbVie Inc. Biomanufacturing Worcester 2001 150 $97,700,000 Quest Diagnostics Manufacturing Marlborough 2012 246 $77,850,000 IPG Photonics Manufacturing Oxford 2018 400 $67,900,000 Great Wolf Lodge Hotel Fitchburg 2014 200 $66,000,000 TJX Cos. Office Marlborough 2012 75 $54,000,000 Windsor Management Co. Mixed-use development Framingham 2005 0 $50,000,000 Sunovion Pharmaceuticals, Inc. Biomanufacturing Marlborough 2009 250 $47,000,000 Randall called it the ribbon-cutting effect. Politicians eager for a photo op at a new or expanded business might chase deals not making much economic sense. "ey want to say 'I did this thing, and you can see it, here it is,'" Randall said. In Marlborough, where none of its 16 tax break deals in the last 20 years have been decertified, Vigeant said these tax-increment financing deals have been key. Having already attracted large corporations like Quest Diagnostics, Boston Scientific and TJX Cos., Marlbor- ough now is working on incentives to attract smaller businesses such as restaurants and mixed-use develop- ments in order to create a more well-rounded city. "Communities are really limited on the incentives they can do," Vigeant said. "ere's really only a few programs." The best use of local money Companies receiving tax breaks are required to reg- ularly submit updates to the state on their progress in hiring new workers or making investments. In exchange for discounts on how much they'd pay in property taxes – oen for 10 or 20 years – companies typically agree to hire a certain number of workers or invest a certain amount of money. When they don't reach those commitments, the com- munity or the state can end the deal. In Central Massachusetts, communities sometimes keep deals in place even when the companies don't meet job-creation or investment thresholds. at's happened in Worcester, where Hanover Insur- ance Group laid off more than 1,200 workers soon aer a planned $194-million expansion in 2002. e abra- sives maker Saint-Gobain didn't add any of the 41 jobs it planned to fill, and the Beechwood Hotel cut workers despite making its investment target. e insurance company Unum cut jobs aer agreeing on an expansion in a deal with the city. e city administration has said it kept those deals in place because of those companies' broader contribu- tions to the city and continued employment levels. Tax breaks are meant to help companies when com- munities pass up some of the tax revenue they would have made in order to encourage new investment, said Michael Goodman, the executive director of the Public Policy Center at UMass Dartmouth and a member of the state's Economic Assistance Coordinating Council, which reviews tax breaks. e question, Goodman said, is whether the incen- tive is the best use of local money to bring new revenue and growth. "at's a judgment that local policymakers make," he said. Misses: Agreements decertified when companies failed to meet job-creation or investment thresholds: Year Promised Promised Company Industry Community signed jobs investments Hanover Insurance Group Office Worcester 2002 225 $194,000,000 Lonza Group Pharmeceutical Hopkinton 2007 300 $70,000,000 Charles River Laboratories Biomanufacturing Shrewsbury 2006 300 $67,000,000 Biomeasure Inc. Biomanufacturing Milford 2012 20 $42,000,000 Holiday Housewares Manufacturing Leominster 2002 50 $39,000,000 Unum Group Office Worcester 2013 0 $25,000,000 Biochem Pharma Biomanufacturing Northborough 2000 7 $18,000,000 Saint-Gobain Manufacturing Worcester 2009 41 $17,800,000 A. Duie Pyle Distributing Northborough 2006 100 $10,900,000 Stryker Corp. Office Hopkinton 2006 18 $8,000,000 Harr Motor Co. Retail Worcester 2007 28 $7,800,000 Beechwood Hotel Hotel Worcester 2010 16 $7,000,000 Barry Controls Manufacturing Hopkinton 2005 10 $2,000,000 Creative Biomass Manufacturing Fitchburg 2010 15 $1,500,000 PGM Plastics Manufacturing Fitchburg 2004 50 $1,200,000 Universal Metal Manufacturing Worcester 2003 5 $1,000,000 BAC Properties Manufacturing Fitchburg 2004 7 $500,000 Intel Corp. Office Hudson 1999 0 $0 W

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