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Date: 9/21/2018
AGAWAM – In April, the Baker-Polito Administration and The Town of Agawam approved a 5-year Tax Increment Financing (TIF) Agreement for ABLE Machine Tool Sales, Inc. in order to help the company expand. On Sept. 6, the Lt. Governor toured the ABLE facility to see the administration’s economic incentive program in action.
Lt. Gov. Karyn Polito met with ABLE Machine Tool Sales, Inc. President Alan Lockery at the company’s current location, which sits at 253 Silver St. in Agawam, to discuss economic development and learn more about how the TIF agreement is helping the firm to develop. She then toured the company’s new location – which is currently under construction – at 800 Silver St.
Mayor William Sapelli was also in attendance.
“It was one of those days where it was 98 degrees outside, but she [Polito] was right there and took a tour of the new facility – at this point it’s bare bones, but she got a feel for the square footage there and how much of a difference there is between the old square footage,” said Sapelli. “What was mostly discussed was his [Lockery’s] business purpose and he went into detail about the components he builds for other companies and why he was in a position where he needed more square footage.”
ABLE sells, supports and services computerized control equipment throughout New England. The company is using the TIF agreement to build a new facility down the street from its existing facility with the hopes of accommodating future growth, and increasing floor space by 50 percent and parking space by 100 percent. The incentives are facilitating the move and allow the company to expand services into machine customization and upgrade services.
TIF is authorized by M.G.L.c. 40§59 and its implementing regulations 760 CMR 22.01. Under this legislation, landowners may be granted property tax exemptions of up to 100% of the tax increment. A municipality may enter into a TIF Agreement with a landowner for a maximum term of 20 years. A city or town must initiate a TIF by a vote of its governing body approving the TIF Plan. On top of this, A TIF Zone must be in an area approved by the EACC as an Economic Opportunity Area (EOA) or found to be an area "presenting exceptional opportunities for economic development" by the Director of Economic Development.
“The state offers a lot of these programs and unfortunately some districts don’t take advantage of them,” said Sapelli. “When a business like ABLE grows, it also means more jobs. Part of the TIF means more jobs – they have to agree to create more jobs by virtue of the fact they’re getting the TIF. So, for Polito to go out and see some of the policy procedures and programs they have implemented in action was great. She just wanted to come out and actually talk to some of the people taking advantage of the program and get their thoughts.”
The mayor added that the TIF agreement benefits Agawam as well because ABLE will be staying within the town and will create more tax dollars and jobs.
ABLE plans to hire 10 new employees, retain 30 employees, and make a private investment of $2.46 million. The Town of Agawam has approved a 5-year Tax Increment Financing (TIF) Agreement with a value of approximately $156,000. The EACC Board has approved EDIP investment tax credits in the amount of $75,000.