Worcester Business Journal

wbjournal.com | July 24, 2017 | Worcester Business Journal 15 L A W F O C U S A Bank Built for Two Figure 1 - Tandem Bicycle Equal Housing Lender I Member FDIC | Member DIF If we were a bike, we'd be the kind with two seats and extra pedals, because you can always travel farther with more people pedalling. As a mutual bank, we answer directly to our customers, so we're 100% invested in their success. It's a far cry from banking as usual, but that's what makes the ride worth taking. North of Ordinary BankMainStreet.com | 508-481-8300 Saint Vincent Hospital 1997 18 years N/A** Retain 1,223 jobs, create 55 jobs, invest $215 million 425 jobs created, $281 million invested AbbVie 2001 14 years 100% and 27%*** Retain 299 jobs, create 150, invest $97.7 million 463 jobs created, $97.1 million invested Home Depot 2002 10 years 2.5% Create 120 jobs, invest $4.4 million 125 jobs created, $10.7 million invested Hanover Insurance 2002 14 years 5% Retain 3,026 jobs, create 225, invest $194 million Deal decertified by state, after 1,237 jobs cut, $135 million invested Universal Metal 2003 20 years 64% Retain 24 jobs, create 5, invest $1 million Deal decertified by state and city, after 21 jobs cut, $2.1 million invested Polar Beverages 2004 10 years 40% Retain 385 jobs, create 10, invest $750,000 40 jobs created, $1.3 million invested Hilton Garden Inn 2005 20 years 38.8% Create 100 jobs, invest $20 million 100 jobs created, $24.7 million invested Wyman-Gordon 2006 7 years 10% Retain 89 jobs, create 17, invest $19.9 million 51 jobs created, $37.9 million invested IBS Commodities 2006 20 years 40% Retain three jobs, create 5, invest $795,000 36 jobs created, $1.2 million invested Harr Motor Co. 2007 7 years 10% Retain 161 jobs, create 28, invest $7.8 million Deal decertified by state, after 10 jobs created Hanover Theatre 2008 7 years 100% Create 17 jobs, invest $30.4 million 17 jobs created, $34.4 million invested Creedon & Co. Inc. 2009 6 years 15% Retain 13 jobs, create 1, invest $1 million 1 job created, $1 million invested Angel Guard, CRC Line 2009 7 years 15% Retain 7 jobs, create 2, invest $2.5 million 9 jobs created, $2.6 million invested 184 Main St. 2009 10 years 25% Create 1 job, invest $3.6 million 1 job created, $4 million invested Saint-Gobain 2009 15 years 37.5% Create 41 jobs, invest $17.8 million Deal decertified by state, after 0 jobs created, $14.2 million invested Beechwood Hotel 2010 10 years 45% Retain 49 jobs, create 16, invest $7 million Deal decertified by state, after 10 jobs cut, $12.5 million invested 180 Main St. 2011 10 years 25% Create 1 job, invest $3.5 million 1 job created, $4 million invested 50 Prescott St. 2011 16 years 44.5% Retain 50 jobs, create 20, invest $22 million 190 jobs created, $26.9 million invested Saint Vincent Cancer Center 2013 15 years N/A** Retain 26 jobs, create 22, invest $22 million 88 jobs created, $29.6 million invested Unum 2013 15 years N/A** Retain 600 jobs, invest $25 million Deal decertified by state, after 97 jobs cut, $32.6 million invested Oilzum, Dennison Lubricants 2014 7 years 35% Retain 38 jobs, create 20, invest $4.5 million 24 jobs created, $4.7 million invested 18 Franklin St. 2014 20 years 44% Create 46 jobs, invest $32 million 45 jobs created, $40 million invested Hampton Inn 2015 7 years 30% Create 30 jobs, invest $10.2 million 30 jobs created, $12.7 million invested Oasis at Dodge Park 2016 12 years 40% Create 49 jobs, invest $9 million 22 jobs created, $9.4 million invested *Tax break, on an average annual basis, is off the additional assessed value resulting from expansion or renovation. **Saint Vincent, its cancer center and Unum each committed to targeted tax payments at outset of deal. ***For first and second phases, repectively Source: City of Worcester Executive Office of Economic Development Worcester tax breaks, active in last five years Percent of Company/location Year Length tax break* Requirements Results where the city was looking to bring active use to vacant or blighted sites. That deal was a little different, where rather than a percentage off its annual property tax bill, Saint Vincent agreed to set targeted tax payments each year – regardless of what the property value and tax rate were. In 2015, the last year of its tax break, Saint Vincent paid about $28.6 million in property taxes. In July, Augustus recommended City Council give a 70-percent, 10-year tax break to a proposed $21-million, 48-unit mixed-used housing development at avacant Kelley Square site. City officials are in the early stages of developing a micro-TIF program to help small businesses. Bad breaks Even when the job requirements aren't met, Augustus said TIF deals still work in the city's favor, as the businesses enhance their role in the city economy, which is why the city terminated only one of the 24 deals – Universal Metal, which was forced to close. At Hanover Insurance, the city gave the company a 5-percent tax break in 2002 as it planned a major expansion of its Lincoln Street headquarters. But a stock-market downturn forced Hanover into more than 1,200 layoffs. "We have since managed a very suc- cessful reorganization effort and posi- tioned our company as a leading proper- ty and casualty company with a bright future," said Hanover spokesman Michael Buckley. Saint-Gobain, an 132-year-old abra- sives manufacturer said it lost business to competition in China. It didn't add any of the 41 jobs it promised. Despite this, Saint-Gobain remains active in the community, contributing $500,000 annually to region nonprofits, and will increase employment if custom- er demand improves company spokes- woman Lauren Howe said. The Beechwood Hotel cut workers but also invested about $12.5 million. "[We have] not been standing still," hotel owner Charles Birbara said. Unum ended up cutting 97 jobs but subleased office space it no longer need- ed to 11 companies with a combined 178 full-time workers. "As the first business to invest in the City Square project in early 2009, we're proud of the role we played in the suc- cess of the development," said Unum spokeswoman Mary Fortune. W

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