WESTBOROGH DAILY VOICE
Westborough Town Meeting Approves Tax Incentives
by John SwinconeckNews08/08/12 Comment
Westborough residents vote to approve two warrant articles Tuesday.
Photo Credit: John Swinconeck
Joseph Harrington moderates the Special Town Meeting on Tuesday. Photo Credit: John Swinconeck
Town Manager Jim Malloy answers a question at Town Meeting. Photo Credit: John Swinconeck
Danafilms consultant Rod Jane. Photo Credit: John Swinconeck
State Sen. Jamie Eldridge does a little politicking outside of Town Meeting on Tuesday. Photo Credit: John Swinconeck
Supporters of State Rep. Carolyn Dykema outside of Westborough High School before Town Meeting on Tuesday. Photo Credit: John Swinconeck
WESTBOROUGH, Mass. - Westborough is closer to convincing two businesses to expand in town, after voters approved by a wide margin tax incentives during Tuesday's Special Town Meeting.
Article 1 could create an economic opportunity area at 200 Flanders Road and offer a 15-year tax increment financing agreement to MicroChem. The company employs 47 people in Newton, but has plans to move to Westborough and expand to 70 employees, according to Town Manager Jim Malloy.
Under a Tax Increment Financing agreement, Westborough would receive $381,000 in property taxes and MicroChem would receive a $14,500 tax break.
MicroChem manufactures chemicals used in computer systems and is owned by the Japanese company Nippon Kayaku.
"This is a great opportunity for us," said MicroChem President Jay Cole.
Some residents raised concerns over hazardous chemicals being used at the proposed facility. However, Cole said most of its deliverables come in four liter bottles, and neighbors shouldn't worry about large tankers moving in and out of Flanders Road. Westborough Fire Chief Nick Perron said MicroChem will need a permit from the town for the storage of hazardous material.
It will take about one year of time and investment for MicroChem to get up and running at Flanders Road, Cole said.
Article 2 could create an economic opportunity area and 15-year TIF agreement with Danafilms Inc. at 5 Otis St. The company employs 62 people in Westborough and is planning to expand its manufacturing of special plastic films used in packaging and agriculture and add 20 jobs. However, it is considering moving its operations to Kentucky.
Danafilms' consultant Rod Jane said that, in addition to $26,000 in local incentives, Danafilms would be eligible for $400,000 in additional state investment tax credits with the passage of the TIF. That money would be used to help offset the cost of expanding in Westborough, which would be more expensive than in Kentucky.
Danafilms is owned by RKW Group, headquartered in Frankenthal, Germany, which will decide whether to expand in Westborough, MA or Franklin, KY.
The Advisory Finance Committee had voted unanimously to recommend both articles to pass, but not every voter was in favor of the TIF agreements. Resident Dominic Caprioli seemed to suggest the companies were receiving special treatment.
"Does the company really need this $250,000?" said Caprioli, referencing MicroChem.
The meeting was sparsely populated, but the quorum of 50 was met, according to moderator Joseph Harrington.
Malloy said he will now need to finalize the applications with the state to create the economic opportunity areas in time for the state's Economic Assistance Coordinating Council September meeting.