The Gardner News
September 23, 2014
By: Katie Landeck
GARDNER - A tax incentive worth more than $70,000 has been offered to New England Peptide, Inc. by the city as a local company prepares for a $1.5 million expansion.
The expansion is expected to bring at least 16 jobs to the Gardner area.
"This is one of the very few ways local government can assist the private sector in creating jobs," said Mayor Mark Hawke. "This is a good thing for the city."
The last time the city approved an incremental tax finance plan was in 2008, according to Mayor Hawke. It was a five-year plan for the Specialty Wholesale Supply Corp. facility at Linus Allain Avenue.
But now, the Mayor says this is the first of several tax incentive plans on the docket for this year. He said the Redevelopment Authority is currently working on two others.
"You should see another one very soon, and then again before the end of the calendar year," he added. "This is a good sign the market is recovering."
The tax incentive plan for New England Peptide was negotiated by the Mayor, and then sent to the City Council for approval. These plans can last from five to 20 years, and they forgive a portion of a companies taxes on their new growth.
For example, in the case of New England Peptide they will be constructing a $1.1 million building on Zub Lane and purchasing $400,000 in equipment. With this program, they won't pay any taxes on the building for the first two years. In 2018, they will pay 10 percent of the assessed value of taxes on the new building, 20 percent the following year, until they start paying the entire value in 2026.
In the meantime, they will continue to pay 100 percent of the taxes applicable to their established property.
In return, New England Peptide promised to give preference to Gardner residents as they fill newly created positions.
"We get the taxes at the end of the day," said Mayor Hawke. "And it promotes new jobs and new growth."
Sam Massoni, the chief executive officer of New England Peptide, said the city's willingness to work with his company is one of the reasons he stays in the area.
"It's the kind of business where we could move to China tomorrow and it would be a lot more profitable, but I want to do the right thing and keep it here," said Mr. Massoni.
Mr. Massoni thanked the Mayor, Gardner Redevelopment Authority and the Gardner Community Planning and Development office for their help.
"They're very helpful when we have an issue," Mr. Massoni said. "They take care of us."
New England Peptide creates peptides and antibodies for drug and vaccine use worldwide.