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Date: 9/15/2022
SOUTHWICK – Whalley Computer Associates is in negotiations with town officials for another tax increment financing (TIF) agreement that could end up on a Town Meeting warrant later this year.
Select Board Chair Russell Fox said that details about the potential agreement are sparse because negotiations are ongoing between Whalley Computer, the town, and the state. Fox said the company is seeking to construct another building adjacent to its existing one in the town’s industrial park.
“Most communities usually offer [TIF agreements] to persuade a business to come to their community, or to stay,” said Fox.
Company owner John Whalley could not be reached for comment in time for The Pennysaver’s deadline.
Fox said part of the agreement will depend on how many new employees the new building will bring in, what wages those employees will be paid, and what kinds of positions those employees will have.
“The state wants them to stay in Massachusetts, but the town also wants to know what kinds of jobs or opportunities there will be for Southwick residents,” said Fox.
In Massachusetts, a TIF agreement can be set for between five and 20 years long, and can exempt a business from paying between 5 percent and 100 percent of the increased property taxes resulting from the business expansion.
“It often starts as a higher percentage at the beginning, lowering as time goes on,” said Fox.
Should an agreement be reached between the state, town and company, the terms of the agreement would then go to a vote at a Special Town Meeting, which Fox has said is likely to take place some time this fall. Though the town would be agreeing to forego some tax revenue, it would collect the portion of the tax bill not covered by the exemption, and the increased tax bill after the TIF expires.
“This is something that would help bring additional revenue to the town of Southwick,” said Fox.
Fox was named the Select Board’s designee for the project, which he said was done in part to remove the appearance of a “quid pro quo” situation. Select Board member Doug Moglin works for Whalley Computer Associates, and Fox said recently elected board member Jason Perron received at least some vocal support from Whalley Computer Associates during his campaign, leaving Fox as the only Select Board member without the appearance of a conflict of interest.