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Date: 3/21/2023
CHICOPEE – UFP Site Built LLC, a part of Belchertown-based UFP Industries, will establish a truss-making operation at the former Leoni Wire factory at 301 Griffith Rd. through the help of a tax increment financing (TIF) agreement with the city. The City Council approved the agreement during their March 7 meeting.
The Boston-based organization Griffith Road Property Owner LLC purchased the property for $8.5 million on Dec. 13, 2022, according to the Hampden County Registry of Deeds. Leoni Wire previously operated in the space for four decades before suddenly shuttering their services in early 2021.
The property owner announced its intentions in the deed to develop the space as a truss creator. Truss makers gather pre-cut wood parts and use them to build wall sections, or trusses, that support various construction projects.
The property owner also received a zoning variance approval in late 2022 for the creation of more outdoor space. The completed operation is expected to create around 60 jobs in Chicopee.
Mayor John Vieau discussed the TIF agreement during his mayor’s orders. TIFs offer tiered tax forgiveness over an established period of time, offering support to businesses that are deemed positive influences for economic development and job creation.
Vieau shared that truss creators agreed to a five-year TIF. The first fiscal year will forgive 70 percent of the increased assessed value of the property, the second year 50 percent, the third year 20 percent and 5 percent for each of the fourth and fifth years.
“We are excited for this opportunity for the city in creating these new jobs and really reactivating a dormant building in our industrial park,” said Vieau.
TIF agreements also provide hiring preference to applicants located nearby the property. The communities included in the agreed upon TIF are Chicopee, Holyoke and Westfield.
Planning Director Lee Pouliot shared that the projected improvements to the property are expected to cost $1.4 million.
The city’s assessor department concluded that the property value will increase by $658,000 once the renovations are completed. The TIF is expected to award the property owner a tax benefit of around $32,000 over the five-year period, according to Pouliot.
The city’s TIF Committee included Vieau, Pouliot, Director of Community Development Kathleen Lingenberg, Treasurer Marie Laflamme, Assessor Laura McCarthy and City Councilor At-Large James Tillotson.
Ward 4 City Councilor George Balakier considered the TIF agreement a “win-win” for the city.
“This was a vacant building … There’s going to be 60 full-time jobs and the building will be providing economic money for the city through taxes,” said Balakier.
The City Council approved the TIF agreement in a unanimous vote.