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The Bioengineering Group, Inc.
53 Mason Street
Salem, MA 01970
978/740-0096
BUSINESS PLAN/FINANCING PROPOSAL
March 24, 1999
The Bioengineering Group, Inc.
EXECUTIVE SUMMARY
The Bioengineering Group, Inc., a three-year-old consulting company in Salem, MA,
seeks a commercial mortgage loan of$333,000 with a term of twenty years for the
purchase and build-out of an expanded and more suitable office space. Additionally the
company seeks a business line of credit of$100,000 to address anticipated cash flow
shortfalls within the coming year. Since its inception, the company has been
experiencing steady growth in terms of gross revenues, as well as the number and scope
of bioengineering projects. To meet this growing need, additional staff are being hired,
hence the current need for new space.
The market for bioengineering design and applications is expanding quickly in the United
States and abroad, and The Bioengineering Group, Inc. (TBG) commands a large share of
the market through its reputation and experience. TBG has conducted business for over
three years in the field of water resources engineering and ecological restoration
consulting. Its clients include an impressive list of federal, state, corporate, non-profit,
and private clients who share a need to address river, lake, and wetland problems with
creative, multi-disciplinary solutions. The firm has gone from an initial year with
$364,000 of revenues and a modest loss, to recent years with revenues of roughly
$500,000 with increasingly strong profits. Clients are pleased with work performed by
the firm, and the firm has been successful in winning projects, having been selected over
an array of firms from across the nation to perform design services for the largest project
of its type to date in the US. The firm has experienced and capable management, backed
by knowledgeable advisors and has access to motivated part-time personnel, suited to
grow the company to its next level before acquiring additional full-time managers. The
firm has carefully considered and researched its plan for expansion during the coming
two years, and is well on the way to implementing its plan. Projections include revenues
of$1,000,000 in 1999 and$1,350,000 in 2000, with profits of$97,000 and$126,000
respectively. Near-term financial needs include procurement of a commercial real estate
mortgage and a line of credit to address current goals
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The Bioengineering Group, Inc.
DESCRIPTION OF BUSINESS
The Bioengineering Group, Inc. offers.consulting services to protect, repair, and manage
wetlands and rivers. The company designs erosion control systems, including plants and
structural materials, that are used to stabilize and restore land/water interface areas. The
company assists clients in the accurate understanding of environmental factors,
appropriate design of technical measures, and the suitable use of live plants. The
company's clientele includes state and federal agencies, private utilities/industries,
contractors, engineering firms, landowners, and non-profit organizations.
The Bioengineering Group, inc. began business in January of 1996 as an S-Corporation.
Its President and founder, Wendi Goldsmith, possesses over ten years of experience in
research, consulting, and teaching related to water resource restoration and design, as
well as over five years involved with the start-up and general management of small
environmental companies. After leaving her position as President of Bestmann Green
Systems, Inc., a firm involved primarily in the supply of plants and construction materials
for erosion control projects, Ms. Goldsmith used her own savings to start up her own
business which focuses primarily on the planning, design, and engineering of projects for
erosion control, water quality, and habitat restoration along waterways. The company
designs naturally functioning systems, including plants, soils, and biodegradable
structural materials, that are used to stabilize and enhance shorelines and streambanks.
Within the first year of business,.the company received contracts with clients as far flung
as John Deere in Wisconsin; Walt Disney World Resorts in Florida; The City of
Chicopee,Massachusetts; and the U.S. Army Corps of Engineers in Tennessee.
Throughout its first three years of business;the company has relied on a unique inter-
disciplinarystyle'to address,analysis and.problems in order to provide ecologically
sound,:multi=objective solutions.,.Clients-have been consistently satisfied with the
performanceofwork, and.the:busihess is profitable..
During-the next.twelve months,.The:Bioengineering Group, Inc. is poised to embark on a.
series of new projects throughout the:northeast,,elsewhere in the US, and in Asia, which
will greatly enlarge the potential:of the-firm. Our reputation for providing excellent
quality professional.services without a connection to a particular product line has been
well received by the public. Clients are becoming more interested in using our firm to
address increasingly larger and more complex projects, e.g., one of our recent contracts
for the design of over six miles of riverbank treatments on the Cumberland River in
northwest Tennessee,representing the largest project of its type known in the US. In the
process of studying how past projects perform on sites with some soil c6 ttamination
problems, staff of The Bioengineering Group, Inc. have identified potential for anew
method of soil remediation using wetland plants to selectively extract heavy metals and
other contaminants without costly and.destructive dredging and disposal. Our proven
technologies for stabilizing waterways, combined with our emerging technologies for soil
remediation will enable us to resolve a broad range of urban river scenarios in the coming
years. Ms. Goldsmith has been hired to provide a training program in the Philippines in
April on behalf of a non-profit.organization, and has already identified potential clients
and arranged several meetings and sitevisitsto better plan future work. She is actively
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The Bioengineering Group, Inc.
promoting the use of local unskilled labor and locally manufactured textiles combined
with native plant species to simultaneously assist with alleviating poverty in developing
countries while providing needed waterways stabilization at a fraction of the cost of
conventional approaches. The Department of Defense is working with Ms. Goldsmith to
develop a demonstration and validation program to establish the performance of specially
managed wetland plants while providing cleanup of uranium-contaminated soils at
ammunition testing sites, and has already submitted a proposal for funding earlier this
year. The short term goals of the company during the year 1999 include establishing one
consulting contract in Asia(in addition to the existing contract for training) and
embarking on one phase of testing for vegetative soil remediation, while maintaining the
existing workload plus a modest allowance for growth. Longer range objectives include
expansion of contract opportunities in Asia as well as Latin America, plus consulting on
full scale soil remediation projects using the technology we have identified. This past
month, TBG was awarded 8a status through the SBA which will offer a competitive edge
through bypassing the bidding process in some cases, and by being able to receive large
government contracts which had previously been inaccessible.
During the first three years of business,The Bioengineering Group, Inc. and its founder
and staff have faced many challenges and achieved many rewarding results. When
compared with other businesses of our size and type, it seems our firm has required a
significantly higher level of marketing effort to achieve results. We have worked to
combat that by developing a much praised promotional brochure and a well maintained
website that many people compliment. We currently receive roughly one fourth of our
work by virtue:ofourwebsite and another fourth via brochures that are saved and sent on
with personal'referrals;;hence, these two marketing tools can be understood.to have
roughly doubl"ed.our business volume. One challenge has been the turnover of our staff,
and'duringlhe pastyears we have,.lost capable people due to job moves.of spouses,
returns-to graduate"school,.and offers of faculty positions. In part, this can be seen as a
success.in initially attracting.bright,motivated people who are open to big changes in
their careers.. Consequently,-the ongoing professional relationships we maintain with
TBG"alumnae"continue to serve us in the form of an expanding pool of consultant
specialists (who staff our,interdisciplinary teams), and as an ever-widening sphere of
acclaim, influence; and strong reputation(for the work we did and the people we trained).
In an effort:of keeping.our talent on staff longer,the 1998 tax year marked the first
occasion when the firm offered.profit sharing as an employee incentive, and in the future
we plan to use vesting as an.additional incentive for employee longevity. Additionally,
we are exploring the possibility of using telecommuting and flexible hours as a means of
attracting skilled employees who have family obligations and/or a preference fora more
rural lifestyle (options which we are already developing to accommodate and coordinate
our geographically dispersed consultant pool). Our utilization of several, well-known
consultants provides us with top quality work on an as-needed basis in order to allow us
to service our-clients without maintaining an excessively high payroll.
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The Bioengineering Group, Inc.
SERVICES
Bioengineering treatments are an ecologically-sensitive, yet technically feasible,
alternative to conventional engineering solutions using concrete, stone and/or rock. They
are used on difficult sites including riverbank stabilization and restoration, canal
construction, lake and reservoir bank stabilization, and on tidal rivers and in estuaries.
Bioengineering treatments enhance desirable plant growth, microbe activity, and wildlife
habitat—unlike stone, concrete, and many synthetic materials which inhibit biological
functions. These vegetative systems have the ability to thrive on a site with minimal
post-installation maintenance, and withstand physical stress far above levels possible
with conventional planting. They are often less costly than conventional treatments, and
generally more favored by environmental regulators (thus greatly facilitating an
otherwise costly and time-consuming permitting process), and they look attractive.
At the present, The Bioengineering Group, Inc. offers professional consulting services in
the areas of surveying, geomorphology,plant and soil science, hydrology, water quality,
aquatic ecology, environmental planning, water resources engineering, design and
drafting, as well as training and meeting facilitation. We also deliver tum-key projects in
collaboration with skilled contractors whom we closely supervise. During the past three
years,past.projects have been recipients of regional, national, and international awards in
recognition of the excellence in professional services provided.
The Bioengineering Group, Inc. has been involved with numerous projects where soil and
water remediation.has.been an element of the design. However, we have not yet
completed.a project:,where hazardous material cleanup is an explicit goal of the project.
It is our goal an1mtention to begin.during 1999 to test and refine some of the plant and
'soil management:techniques we-have identified in order to offer a commercially viable
solution to:heavy ii etal and hydrocarbon.contamination which is so ubiquitous in urban
areas. We expectao offer a.site-specific testing service, as well as full scale
implementations.in cooperation with sitework contractors.
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The Bioengineering Group, Inc.
MARKET
TBG services clients who need erosion control and habitat restoration with an emphasis
on environmental sensitivity and cost effectiveness. Our clients are primarily based in
the United States with a growing list of projects occurring in Canada and Asia. Past and
current clients include federal, state, and local water management agencies, the
transportation industry and regulatory agencies, public and private utility companies,
private developers and landowners, and contractors serving all of the above. The balance
between private sector and public sector clients is relatively even.
Clients purchase a combination of consulting and design support. Ideally, a client
approaches the company with a site-specific project, and our staff is involved in the
project design, and the staff often has consulting involvement in the permitting,
installation, and monitoring phases.
Point-of-sale contacts include designers, engineers, landscape architects, consultants,
regulatory personnel, and specialized contractors. In general, these people are
professional and usually well-informed. They come to us with a complicated set of
purchase preferences and choose our services for a variety of reasons, including technical
expertise, value, and reputation. Our business has been somewhat affected by the
reduction of construction activities in the northeast during the winter season. However,
as we have-successfully pursued work in the southeast and elsewhere, construction-
related_work.has been continuing year-round. Additionally,we have become engaged in
studies;planning reports;monitoring, and related research that are unaffected by season.
_An essential marketing:approach of the.firm involves writing articles in natural resource
.
management:joumalsand.trade magazines and speaking at targeted conferences serving
the engmeenng;,erosion control, and.wetland management industries. In this way, we get
our name;out in front:of a large audience, at minimal costs, with ample opportunity to
convinceprospects'that we actually know what we are talking about. A modest amount
of advertising is:used.in conjunction with published articles, where applicable. During
the past year ads have appeared in Land and Water magazine,Restoration Ecology
Journal,-the.Mass. Association of Conservation Commissions Newsletter, and Wetlands
Journal. Our much-visited website appears to be used mainly by people who have heard
about us.first through exposure to our written or verbal presentations. We make limited
use of direct mailing, often featuring announcements of upcoming training programs or
project site open houses when we send direct mail, in order to increase value to the
recipient and promote greater interest. Much of the specific project workwe are hired for
requires a competitive selection process. "Making the sale" involves pitching our
company based on a dazzling presentation of our technical qualifications and track record
of project activity and client satisfaction, at times linked with cost for proposed services,
although often based on qualifications alone. Please see the attached small brochure, as
well as the attached expanded statement of qualifications for examples of our standard
marketing materials. Finally, the high visibility and.consistent successful performance of
our designs results in repeat business and frequent word-of-mouth.referrals.
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The Bioengineering Group, Inc.
The business environment is generally quite favorable to a company of our type. Areas
that were formerly agricultural are becoming suburban, and intensely urban areas that
were once considered ecological wastelands are now being restored to provide water and
air quality benefits and to serve a local population that seeks educational and aesthetic
resources. Although government expenditures on infrastructure had been low for years,
expenditures on restoration of natural resources continued to grow, and recent upswings
in general infrastructure expenditures nationally are expected to provide a boom. Some
of our most reliable clients include federal agencies who are very interested in the cost-
effective, politically popular solutions our company specializes in. For instance, a
concrete lined river channel in Adams, MA has reached the end of its design life, and as
costly repairs are considered, and the negative environmental impact of the paved
channel are re-evaluated in today's political climate, it appears favorable to consider
restoring the river, at least in part, to its former natural condition. TBG recently
completed a feasibility study for the Corps of Engineers that is being viewed as a new
model for decision-making in this type of scenario,as it promises to simultaneously save
millions of dollars and satisfy local environmental and political groups. One of our
biggest obstacles in doing business with federal agencies in the past has been their use of
large, multi-year, multi-task contracts that result in firms like ours not having a chance to
get work unless we were part of a team of firms that was awarded a contract in the past.
The amount of time, travel expenses, and general effort associated with"lobbying"to get
this type of contract is generally understood to be tens of thousands of dollars. Because
the natureofour expertise is highly innovative;.the likelihood that some one in
government would have had.the foresight to plan on needing our services three to five
yearsago is slim. We have gotten work on a sole source basis, as well as the one and
.:r only time a.consultant.was sought competitively for our area of expertise specifically.
;With our.newly achieved8a status through.the SBA,we hope that we can market our
innovative:approach effectively, and:reduce theaead time between identifying a possible
protect and delivering-services. The federal agencies that we have past experience with
are th&first:targets for pursuing 8(a)work, and.thus far their response has been
extraordinarily positive;promising to offer millions of dollars of work opportunities
within a short period oftime;.as we are willing and able to undertake it. These include
the Corps of Engineers and the National Parks'Service. Other agencies we would hope to
build.relationships with include the Forest Service,.the Bureau of Reclamation,Natural
Resources Conservation Service, and.EPA, as well as DoD entities other than the Corps.
The growth potential in the market we currently serve is enormous. At present, the US
Army Corps of Engineers alone spends over$500,000,000 annually on consulting and
engineering fees related to river and shoreline stabilization and soil remediation, as well
as recently authorized mandates for ecological restoration. The involvement of our staff,
particularly Ms. Goldsmith, in consultation and training to the Corps on these issues pre-
dates the congressional authorization that allows the Corps to fund projects of this type.
As such, she is a recognized leader and authority in this area and well positioned to gain
the confidence of agency personnel seeking consulting support. The situation regarding
other market segments is similar. As the conventional engineering industry makes a
fundamental paradigm shift toward adopting a holistic and complex view of natural
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The Bioengineering Group, Inc.
systems and methods of managing and modifying them, one can reasonably expect a shift
of contracting toward those businesses that are structured and specialized to provide it.
As outlined above, Ms. Goldsmith has established a strong network of Corps of
Engineers personnel who are familiar with her unique area of expertise. In the past, this
has generated various opportunities for project work, though generally on a small scale
due to the agency policy of awarding a small number of large, long-term contracts.
Unlike several other ecologically oriented consulting/engineering firms, TBG, Inc. enjoys
a reputation of combining state-of-the-art ecological practice balanced with rigorous
engineering. Whereas the Corps is uneasy with methods and recommendations
advocated by other firms, we have been able to speak to the needs of an inherently
conservative organization in order to help them accept "greener" solutions without
sacrificing public safety. In general, we enjoy a reputation among our customers and the
numerous regulatory agencies that review our work as being thorough, fair, creative, and
clear-thinking. We are often viewed as the purveyors of a happy, mutually satisfactory
solution in the case of a stand-off between environmental advocates and those proposing
to work in the waterway. Because people familiar with our work feel so strongly about it,
they are an excellent source of personal referrals.
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The Bioengineering Group, Inc.
COMPETITION
The bioengineering industry in the United States is currently being carved out of the
general market for structural engineering solutions to erosion control problems. The U.S.
market contains several players, some of which offer traditional engineering and
environmental design services but have been willing to experiment with some basic
bioengineering techniques, and some of which provide specialized bioengineering design
services. No firm exists which has the depth of experience and training in bioengineering
technology of TBG staff, as well as the breadth of professional disciplines. Thus, our
firm is recognized as being fairly specialized, and as such has remarkably little
competition in a direct sense. Three firms regularly are brought up by clients and others
familiar with the industry as being the most comparable, and we occasionally compete
against each other for projects. These firms, including their strengths and weaknesses,
are as follows:
Inter-Fluve, a firm located in Montana that focuses on stream restoration, engineering,
and designing bioengineering treatments. The firm is ten years older than TBG, and
larger, with an impressive track record. They are much more aggressive and well-funded
regarding marketing, and have a greater range of in-house disciplines. Many people
report to as that the management is arrogant and unresponsive to client needs, essentially
re-applying the same treatment approach to nearly all projects. Even past employees of
Inter-Fluve.have reportedboredom with repetitive project design. They are also known
for project.construction costs that.are more expensive than ours. We have a 50-50 record
of winning or-losing when competing against them.
BioHabitats, is a firm located.in Maryland that does work similar to that of the company
d'escnbed above A great.concem I have about this firm, which is shared by astute and
knowledgeable clients; is that their mana management misrepresents the technical
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ualifications of its staff;.even.baldly claiming that certain staff possess job titles for
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which extensive formal.degrees and professional licensure are required, when their only
training maybe a briefseminan In away, their willingness to promise the world.is a
strength, and it does help them win projects. We have lost contracts on a.couple
occasions because of their lower cost bid for design work, although other times we have
won contracts basedon pricing and/or qualifications. We have recently been hired to re-
design a project they did.for the City of Cincinnati where their poor work quality caused
serious problems, creating for us a deeply admiring and loyal client as a result.
Robbin B. Sotir and Associates is a firm out of Georgia that provides strictly
bioengineering services for streambank and slope stabilization. They too are roughly ten
years older than TBG and.are widely recognized, having been hired by the USDA
Natural Resource Conservation Service to write some widely distributed documents that
put the firm's name in front of many people. Ms. Sotir is known for her abrasive
personal style, and as her firm typically works on only one design project per year, her
fees are widely regarded.as exorbitant. She is more successful than TBG at.attracting
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The Bioengineering Group, Inc.
client inquiries, but many people who have had even minor working relationships with
her are put off by her style, and TBG is commonly tamed to as a friendlier alternative.
TBG's staff are continually being approached to appear for speaking engagements at
national and international conferences on bioengineering and erosion control. The firm is
also contacted frequently to submit proposals for design on bioengineering projects
around the country and beyond its borders. No other bioengineering consultant offers as
full a range of services as TBG, a fact which the client base apparently understands and
acts upon.
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The Bioengineering Group, Inc.
MANAGEMENT
Wendi Goldsmith, President and Treasurer
Wendi Goldsmith is President and Treasurer of TBG. She owns 100% of the company's
stock and directs and supervises day to day operations of the business. Ms. Goldsmith
handles the most of the management activities, including hiring/firing, contract
negotiations, coordination and review of contract work performed by staff, banking
relationships, key client relationships, and strategic planning. Ms. Goldsmith is assisted
by technical staff members to whom project management responsibilities are delegated,
such as tracking project budgets, deadlines, and coordination of daily work schedules, all
under her supervision. Grace Spence, our office manger, who has a law degree as well as
extensive administrative experience, manages procurement of office supplies and
services, maintains records related to projects, personnel, and corporate matters, and
generally keeps the office running smoothly. Bookkeeping, accounting, and legal
services are all provided by qualified consultants who are available to support Ms.
Goldsmith as needed.
Ms. Goldsmith holds a Bachelor's in Geology and Geophysics and Environmental
Studies from Yale University and a Master's in Landscape Design from the Conway
School. Ms. Goldsmith received her bioengineering training in Germany as an apprentice
under Mr. Lothar Bestmann. She is member of The International Erosion Control
Association, the Society of Wetland.Scientists, the Soil and Water Conservation Society,
and the Essex County Farm Bureau. She currently resides in Salem with her husband and
'two children.:
Ms:-Goldsmith is currently being paid$80,000 per.year.
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The Bioengineering Group, Inc.
PERSONNEL
In addition to management, TBG currently employs three full-time professionals, five
part-time professionals, and regularly works with several key consultant-specialists.
Three positions have been planned in order to meet immediate work requirements within
the coming three months, and one additional hire is anticipated before year's end.
Interviews are currently underway for filling the first round of new positions in the area
of engineering and geological sciences. The company has a benefits package for its
salaried employees, offering payment for one half of health insurance, paid vacation and
sick days, and professional development in the form of tuition reimbursement and
conference payment.
At present, the full-time office manager, Grace Spence, is anticipated to continue
providing ample support for administrative and clerical functions. Although as she
approaches a planned retirement date, a replacement will be hired to allow for training
during a generous overlap period. Ms. Goldsmith is currently negotiating with her
husband, Rob.Solomon,to develop a part-time job description that would include
orientation of new staff, team-building support, procurement of new office space, and
8(a) marketing activities such as identifying agency contacts and learning the ropes of
contracting within the program. This arrangement would allow him to continue his
private practice as a mental health counselor and consultant to small business at an
acceptable level of involvement,.while providing a flexible degree of part-time support to
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TBG.. His expertise and abilities.related_to interpersonal relationships would serve well
-to accomplish team-building goals-and.iategration of new staff. His familiarity with
;COnstrtiction and contracting;rwnll greatly'reli- Ms..Goldsmith during the process of -
y� implementingahe move.to expanded.offices. Ms. Goldsmith will personally train and
k K coach him in.some of heraiarketmgtechniques, and is more comfortable sharing-this
'.highly valuable-informatioii.wi erspouse:rather than an employee who may become a
competitor. He would workmrider.M's_Goldsmith's supervision throughout, and report
directly to her. It is anticipated thatthe role would be.short-term during a period of rapid
growth, and prior to the justification of luring a.full-time staff person to address similar
functions. Additionally, TBG.will.make proportionately more use of its bookkeeping and
accounting consultants to manage cash flow and financing needs during business
expansion.
Our company has generally attractedjob applicants from around the world who possess
training and experience that,makes them well-suited for our work. Our website plus our
conference appearances and publications let people know what we do ani make it clear
that our standard for solving complex water resource problems with innovative,high
quality.solutions is rather unique in the field. To date we have neverneeded to advertise
for staff,.but have developed new staff members, often by hiring them on a part-time or
consulting basis, or working with them as employees of other firms before making a
commitment to a permanent hire. When excellent resumes don't appear when we need
them, we have been quite effective in using verbal and email networking to let people
know what we need. We are ready, willing, and able to train qualified staff in certain
uncommon skills, and are now focusing:on.strategies to reduce turnover.
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4.
The Bioengineering Group, Inc.
PLAN FOR BUILDING PURCHASE
The decision to purchase a building is largely driven by the recognition of a need to build
a suitable work space to allow efficient utilization of our personnel within an appealing
and professional setting; the costs of addressing this need would not be handled
attractively in a short- or even long-term lease, nor is there an easy solution to handling
the anticipated growth of our firm. Salem has no existing business space available under
lease that meets our needs, and we believe it is important to remain in Salem, which is
known internationally, so that practically, our clients are able to find us via word-of-
mouth referrals, even in this age of changing area codes, etc.
Ms. Goldsmith has been investigating alternatives for accomodating the existing and
anticipated growth of the business since the summer of 1998. One option was to remain
within the same office building to avoid disruptions to the business through an address
change. However, the costs associated with improving available office space (by adding
windows, etc.) were not viable when amortized over a five-year lease. Ms. Goldsmith
subsequently spoke with realtors about listed properties that might meet TBG's needs,
and conducted her own reconnaissance to identify suitable buildings that were not listed
on the real estate market. After rigorous consideration and considerable negotiations
with the current owner of the building in question, an offer to purchase was made and
accepted on March 23..
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The Bioengineering Group, Inc.
RESOURCES Available to the Business
TBG draws on the expertise of a variety of resources listed below:
• Accountant: DMC Systems Group
569 Boylston St.
Boston, MA 02116
This firm specializes in working with small to mid-size architectural and engineering
firms in the Boston area. Over the past few years, they have provided high quality
service as well as strategic and useful advice.
• Attorney: Hamilton, Dahmen &Randall
73 Tremont Street, Suite 403
Boston, MA 02108-3903
The firm brings a solid background in corporate law as well as a seven-year long history
of working with Wendi Goldsmith.
• Insurance: James Ugoni
Farm Family Insurance Company
10 South Main Street 4208
Topsfield, MA 01983
This firm speciahzes:in providing insurance for businesses involved in agriculture and
suppomngi elds
• Mentormg ant&othersupports:
Steven Scott,principal
FMSM, Inc.
FMSM is a highly successful and reputable environmental/civil engineering firm located
in the Midwest. A.productive; long-term relationship has been established, primarily
through collaboration on multiple projects involving bioengineering (which FMSM does
not provide), which affords TBG the benefit of FMSM's sizable degree of corporate
experience in the engineering field.
Frederick Young
Small Business Development Center
Salem, MA
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The Bioengineering Group, Inc.
COMMERCIAL MORTGAGE LOAN - $333,000
TBG seeks a commercial mortgage loan in the amount of$333,000 for the purchase and
build-out of a free-standing building on Commercial Street in Salem, along the newly
restored North River, soon to become a public park and greenway. In addition, to the
price of the building and land, TBG seeks to spend an additional $70,000 for the purpose
of completing a build-out of the interior of the building in order to provide an efficient,
attractive, and safe work environment tailored to the varied needs our existing and
planned staff. The building is currently under agreement for the price of$300,000.
Minor work related to roof maintenance and electrical wiring configurations is known to
be needed. Initial conceptual design of the build-out by Peter Pitman, AIA, a Salem-
based architect, confirms that the needed and desired work may be completed within a
preliminary budget of$70,000. Currently The Bioengineering Group, Inc. and Ms.
Goldsmith (personally) are able to bring cash resources of up to $75,000 to address
down-payment and/or build-out needs,plus cover related expenses related to the
inspection and closing.
$100,000 BUSINESS LINE OF CREDIT
TBG seeks a business line of credit to cover the anticipated cash shortfalls that are
projected to occur during the summer and fall of 1999,peaking at roughly $80,000 in
September. Please see the attached spreadsheet for a detailed presentation of cash flow.
With:our recent.8(a) certification, several of our clients are now very eager to negotiate
,1`r`x..,'r ...
;the awazd'.ofsizeable contracts to our firm. Additionally, we have a larger backlog of
proleetnwork under contract than we have had at any time in our company's history.
ar # 'Wheiieverwe experience a wave of growth, we know we can expect a similar wave of
cash flow deficits. We are currently expecting to accomplish several large milestones,
�incIuding;the move to a new larger office as well as the expansion of our staff during the
` nextmonths;.and have given close consideration to our cash needs during this critical
tune:.'Our most conservative cash flow assumptions indicate a significant shortfall,
however,in.practice, we are in a position to defer payment to some of our suppliers and
subcontractors for a short period, ideally less than 30 days beyond what has been
indicated in.our cash flow projections. Nevertheless; we are in need of aline of credit in
order to accomplish the level of development we aim to achieve during the current year.
A line of credit of$100,000 would appear to be an appropriate tool to meet our cash flow
needs during the anticipated six-month period of cash deficit that correlates to our
favored model of growth.
1.5.
The Bioengineering Group, Inc.
BUSINESS FORECAST AND LOAN REPAYMENT
For seven years, the management of the business has proven its capacity to fulfill short-
and long-term financial obligations through various strategies. The firm's ample backlog
of work allows unaccustomed accuracy in planning income and expenditures during the
short term, and also bodes well for continued sales growth in the longer term. At present,
the fmn holds contracts for roughly $300,000 in consulting sales. In addition to work
under formal contract, many proposals for project work have been submitted to clients
and assuming a conservative 30% success rate (which is half the usual rate we
experience) would generate an additional $1,000,000 over the next two years.
Additionally we know from experience to expect an increasingly large volume of short-
term, no lead-time contracts. Conservative estimates of continued growth of annual
income predict gross receipts of approximately 1 million for 1999 and 1.35 million in
2000 (see attached spreadsheets). The workload to generate these incomes will require
three new hires over the next two months, and another three in the following six months,
part of the need for new office space. As the company grows and additional work
opportunities arise, the new space will accommodate staff expansions. Indeed, the
building has an existing partitioned space with a separate entrance that has consistently
been leased for roughly $500 per month, providing supplemental income in the short term
and more space for TBG's use via expansion in the future.
Assumptions include collection of receivables as in the past, although we hope that
_,:.SBA_%:role.in serving as an intermediary for project payment will actually shorten our
a
wathng time:forfederal 8(a)payments as.they occur. Also, an expanding staff that would
�',:�regntre lrighe'r compensation than we have paid is the past in order to attract and retain
honally.talented professionals.(see attached sheet:for job categories and projected
*_ x�compensahonj:.`Assumptions also include staff utilization rates (direct vs. indirect time)
;that are consistent-with projected job descriptions and are historically based in
performance forthose positions . Assumptions include a realistic set of direct project
-costs that:are consistent with the type of work we currently have under contract,based on
analysis ofpast performance. Also assumed is achievment of our targeted overhead rate,
which.is appropriate and competitive for a firm of our type; although it is lower than our
1998 audited annual overhead rate, it is consistent with rates for those quarters that have
not been unduly full of paid maternity leave, start-up organizational management, and
start-up related marketing. Variable expenses have been proportionally linked to income
as they are understood to behave, and fixed expenses have been estimated according to
planned management of the company. The projections for 1999 and 2000 include
allwances for servicing the loan and line of credit currently sought.
16
'� ;"
The Bioengineering Group, Inc.
ATTACHMENTS
1. Income statement PROJECTIONS (1998 actual, 1999 projections, 2000 projections)
dated March 24,1999
2. 1999 overhead schedule PROJECTION
3. Payroll Projections for 1999 and 2000
4. List of Active Projects, March 1999
5. Aged Accounts Receivable, 3/31/99
6. Voucher Report (Accounts Payable), 3/31/99
7. Cash Flow Projection—January 1999-December 1999
8. Accrual based financials (compiled by DMC Systems Group),
1996 Income Statement and Balance Sheet
1997 Income Statement and Balance Sheet
1998 Income Statement and Balance Sheet
1999 January and February Income Statements
9. Federal Tax Returns
1996 11205
19971 120S
1998 11205
10. Brochure—The Bioengineering Group, Inc.
17
i
d
payroll projections/models fo 1999, 000
employee salary %direct direct$ ind $
wendi goldsmith $ 80,000 50% $ 40,000.00 $ 40,000 .
grace spence $ 30,000 10% $ 3,000.00 $ 27,000
bill morgante $ 36,000 80% $ 28,800.00 $ 7,200
cindy marlin $ 10,000 90% $ 9,000.00 $ 1,000
paul martin $ 5,000 90% $ 4,500.00 $ 500
chadiegreene $ 10,000 90% $ 9,000.00 $ 1,000
desheng wang $ 50,000 90% $ 45,000.00 $ 5,000
lisa sarma $ 10,000 70% $ 7,000.00 $ 3,000
inter $ 10,000 60% $ 6,000.00 $ 4,000
ian andersen $ 6,000 60% $ 3,600.00 $ 2,400
rob solomon $ 30,000 50% $ 15,000.00 $ 15,000
eng $ 45,000 70% $ 31,500.00 $ 13,500
$ 322,000 $202,400.00 $119,600
iia- L¢ p
.6 R-0+ M.
To: Bill Lundregan FACSIMILE
Fax #: 741-8110 City of Salem
Re: The Bioengineering Group/Inter-Creditor Planning
Agreement
Date: August 1, 2000
Pages 9, including this cover sheet.
Comments:
Bill,
Attached is a copy of a letter from the Bioengineering Group (recipient of a
$50,000 City loan) explaining the firm's interest in obtaining receivables
financing through the U.S. Department of Transportation program for
disadvantaged and woman owned businesses. Receivables that relate to
transportation projects the firm works on will be paid directly by the bank to The
Bioengineering Group and the bank will in turn invoice the firm's client, up to
$100,000 total. Apparently The Bioengineering Group experiences difficulty with
obtaining payments and this approach through U.S. D.O.T. permits a rapid
payment.
Also attached is the draft agreement. From my reading of it, it asks the City to
subordinate its security agreement to the bank's, but provides the City priority
over the bank on any other assets the City has an interest in. I have also
attached an information package on the DOT's financing program.
Could you review the document's language and advise us as to whether the City
should agree to this and how our level of protection is altered due to such an
arrangement.
Thank you,
Mary Crain
From the desk of...
Mary C.Crain
Economic Development Planner
City of Salem Planning Department
One Salem Green
Salem,MA 01970
978-745-9595 ext.311
Fax:978-740-0404
JUL-31-00 MON 1 : 32 PM THE BIOENGINEERING GROUP FAX NO. ;i'/Y 'MU Uffi Y. 1
BpEN3ttttfRatcs
caeooc,etc.
t8 Coamtereial Street p r r r—R
Salem,MA 01970 C� —� ':�L�
t7 - ' ; 01 t
July 31,2000
C;-,,LEM
BY FAX: 978-740-0404
Ms. Mary C.Crain
Economic Development Planner
City of Salem
One Salem Green
Salem,MA 01970
ME: Draft Inter-Creditor Agreement
Dear Mary:
Attached is copy of a Draft Inter-Creditor Agreement sent to us by Hamilton Bank,who will
facilitate our request to the U.S.Department of Transportation for receivables financing- As Wendi
discussed earlier with you,we will need to know the name of the person who will he signing on behalf of
the City of Salem along with information of the department and address.
We are expecting approval for$100,000.00 which will represent about 30%of our transportation-
related eligible receivables over the next three to four months_ We do not anticipate our receivables
balance to be less than $100,000.00 during that period. We applied for the government financing to
facilitate a rapid return of our eligible receivables4n order to handle our recently awarded contract for a
$375,000.00 project which will require additional staff and considerable out-of-pocket expenses.
Please let us know if you have any questions. As already stated,we are anxious to complete the
information request so as to expedite final approval and to begin receiving payment for these
transportation-related projects. As always,we appreciate your time and cooperation.
S' rel
C ace S. cc
ffice nager
Attachment.
JUL-31-00 MON 1 :32 PM THE BIOENGINEER]NG GROUP rax RQ. rd r4u DUT r, _
JUL-31--W" 1929 H.S CITrAJr+ITl 13ahA<Itr, 305 591 3172 P,02
-- -- ISO INTER-CREDITOR AGREENSE*IT
, —
10 E„-
Agteetnent dated January_, 2000 between Hamilton Bank, N-A„ a national banking
association(the "Sank') and ^, a: corporation("ABC').
WHEREAS, Corporation("XXX')is obtaining a credit facility from the Bea
in an amount un na US$ (the"Credit');
WHEREAS,as security for the Credit.XXX has granted to the Batik a s curity interest in
all assets of XXX (the 'Collateral') pursuant w a security agreement of even date herewith
(collectively,the`Ban',-,Documentation');
WHEREAS,)Q(X is, and may in the future, be obligated to ABC(the"ABC credit-).
WHEREAS,as security for the ABC Credit,the xXX has granted to ABC a security interest
in all assets of XXX pursuant to a security agreement dated _ 19_(collectively,rbe
"ABC Documentation');and
WHEREAS, ABC and the Bank want to cen themselves upon their respective
rights with respect to the assets ofX?LX. mss
ACCORDLNGLY,the parties agreed as follows:
1. (a) ABC and the Bank hereby agree that tine security interest of the Bank in the
Collateral shall have priority to the extent of the Credit over any security interest
which ABC maynow have or hereafter acquire therein,and the ABC Documentation,
insofar as it encumbers the Collateral,is hereby subordinated w the security interest
of the Bank to the extent of the Credit,
( (b)The Bank hereby agrees that the security interest of ABC in all other assets
of XXX„ shall have priority to the extent of the ABC Credit over any security
interest which the Bank may now have or hereafter acquire therein, and the
Bank Documentation,insofar as it encumbers any other assets other than the
Collateral,is hereby subordinated ro the security interest of ABC to the extent
of the ABC Credit.)
2. (a)So long as any of the Credit m+nains outstanding,ABC agrees that it will take no
steps to enforce or exercise any of its rights or remedies with respect to any of the b
Collateral-
( (b)So long as any of the ABC Credit remains outstanding,the Bank agrees that
it will, take no steps to enforce or exercise any of its debts or remedies with
respect to any other assets of XIM ]
JUL-31-00 MON 1 ; 33 PM THE BIOENGINEERING GROUP FAX N0. 978 740 0097 P. 3
JUL--31-2000 16:30 H.H carMITY FY WING 305591 3172 P.03
3_ Neither the Bank nor ABC makes to the other any representation or warranty, or
assumes any responsibility's to the other,with respect to the execution.construction
or enforcement of-the Bank Documentauon or the ABC Documentation.
4. All notices,requests.demands or other communications between the parties hereto
shall be in Ming (including tcletransmissions), shall be given or made at the
addresses next to the signatures hereto,or at such other address or telex or telecopier
number as any patty hereto may hereafter specify to the others in writing,and(fatless
otherwise specified herein)shall be deemed on receip%iftelettansmittedordelivered
by hand(provided that teletransmissions shall he confirmed by overnight mail or
courier delivety),orfive BffsittessDays retailing,andallmailednotieesshallbe
by registered or certified mail, aid.
S. In case one or more provis twined in this Intercreditor Agreement shall be
invalid.iDegal or unenforceable of the remaining provisions contained herein shall
not be affected or impaired thereby.
G. This Intercreditor Agreemem may be executed by one or more of the parties on any
number of separate counterparts,and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.
7. This Intercreditor Agreement may not be modified except by written agreement
between Bank and ABC and shal I be governed by and coustmed in acwrdaoce,..ith
the laws of the State of
(SIGNATURES ON NEXT PAGE)
i
JUL-31-00 MON 1 : 34 PM THE BIOENGINEERING GROUP FAX NO, 978 740 0097 P, 4
JL4_-31-2909 16:31 H.B COMM-NM BANGING 365 591 3172 P_04
IN WITNESS wHEREOF,the parties hereto have caused this Inter-Creditor Agreement
to be executed and delivered by their duly authorized officers as of the date first written above.
Addresses: HAMILTON BANK,N.A.
Rr.
DRAFT
3750 N.W.87 Avenue Name:
Miami. Florida 33178 Title:
DRAFT
By:
Name:
Title:
ABC
DRAFT
By:
Name:
-Title:
3
TOTfL P.04
xuU 1=uu 10h II : i4 AM TH BIOENGINEERING GROUP TAX NO. 978 740 0097 P.
U5J10/89 lb_UY FAA M 1145 U404 BASF: 'IECjLWLUI;IE's. 1NC. 16001
h
US DOT
Short Term Leading Program
Appli42tion and Information
U.S.Department of Transportation
Office of Sins)) and DisadvOannt god Bss usineUt izatiion�portadon
e financing
between program administered under eooperadve agreements
the US Department ofTransportation iu dseveral banju
POIJCY STATEMENT
L INTRODf7 N
AUG- 1-00 TUE 11 :38 AM T&f BIOENGINEERING GROUP FAX 110, 978 740 0091 P. 3
uuflu/Ye 16:07 FAR 703 $43 0303 "sh 1fiR'a.VOWGIES, INC- 10002
A. The DOT Short Tenn Lending Program(STOP)is a national program designed to lend
show term %%'orldng capital to disadvantaged business entezprises (DBEs) in order to
increase the number of DBEs that eater into transportation related contnlets and to
Seng Ile$the competitive and productive capabilities of the DBEs that currently do
business with the U.S. Department of Transportation its grantees recipients, their
contractors acid subcontractors_
The prolpum`is administered under cooperative ag"nents between the U.S.Depattrncnt
Of Tratisportation(DOT)and one or more banks and is audtori7ed under Subchapter
I 1
'the Department of Transportation Act,49 U_S.C.332,Pub;L 97-449.
B_ Glossary of Terms
I. DBE-a disadvantaged business enterprise-
2 DOT-The United States Department of Transportation.
3• .. STLP Bank - A bank under
jointly with DOT cooperative agreement with DOT which
provides loans and linesnes of of credit. -
4 R1tdPieat - State and othar agencies which
from DOT_from Federal funding
'A7—The aPDl cat" must be �cettified disadvantaged business enterprise (DBE),
.ham '^d -Mtnori4'-oumed business enterprise or-women-owned business .enterprise. These
certifications must be Performed under DOT guidelines,49-CFR Part 23.For purposes
of this docanrnt �L)BE" will be used to describe all businesses certified under the
- DOTXegulation. —
Certification of firms is Performed by the individual tocipienrs of federal
ids. Certification is not.performed by the U.S.D
of its divisions. eft of Transportation or any.
qj ,All {µlas defined by Section 8(a) of the U.S. Small Business- Administration Act are
=omaticaliy recognized by all recipients and are eligible to,participate in the DBE pro
without any further recipient certification.
B. the borrower roust be Perfo
"transpo[tation related' smiogr a transportamon related contract. The tent
.restruc contract..m&3w a contract for the..maintenance rehabilitation, ..
i = tunng improvement,or-revitalization of any of the nation's modes of trapsPO
rtatiort with
g = any Public or commercial provider of transportation of any Federal.State or local transportation
agency-.In addition, Bach a contract maybe with any other Federal agency, provided that, and
within the discretiont`of the Director of DOT's Office of Small and Disadvarnaged Business
Utilization.(OSDBU),.each cotmact mill assist a DBE in competing-subsegtµnty for eonrtacts
with either a public or commercial Provider of transpormdon or--any Fedec, State or local
ttaosportation agency:This provision is applicable to any prime contractor or suboorrm
any tier,of such a transportation provider or agency. actor, at
AUG-�I-TO TUE i11 : 36r'A �u�THEoBIOENGINEERING��ROUP��e�i 110" 978 740 0097 P. 4
tm uua
UL LOANST RU
CTiJRE AND
TERM
A.
Loam are structured as revolving ng hues of credit to finance accounts receivable arising
from Uansportaaion related contracts. Accounts reocivable from any number of
traDIportation related contracts may be finmtoed under the same line of credit
B. The term of each line of credit is normally one year. Rraewals of the line may be
requested,and updated financial information trust be provided to the STLP Bank for
the evaluation and decision process
C. Loan docurimtation is theresponsibility of the S1LP Bank,and the STLP Bank wi0
administer the line of credit
IV. ADVANCES AND REPAYMENT
A. Advances under the line of credit are trade upon presentation of invoices or requests
for
adv�cgress payments,as Permitted by the contract,to the S71P Bank, 'lye maximum
against each invoice is 83%of the invoice amount
B- Repayment of each advance is effected at the time the project owner or
�
Of contractor
for makes Payment of each invoice. Payment of invoices mill require theusee
paYeepayment systeno, wherein the STLP Bank and the DBE will be
PaYees Of any check paid by the project owner or piecontractorto the DBE,and the
Payment will be sem to the STIP Bank
C. The lines of credit are intended to provide short term working capital to bridge the
period between preparation and submission of the invoice and receipt of payment from
The Prime contr-ector or project owner- The customary rases of Raids borrowed under
the line are for payroll,materials and other project related items. Due to the short farm
nature of each advance the funds are not available for long terra purposes.such as the
Purchase of equipment or other fixed assets; nor are they to be used for such aspay-mea
he
non current taxes, zepaymesrt of existing debt, of
or distributions to the companys
owners. The frauds are not available to start up a business or a project; as adv
may be made only against invoices based on work already performed. ances
V. COLLATERAL
A, The proceeds of the transportation related contracts are the primary cot haetat and
source of repayment. Other collateral may be included in the offer of a line of credit.
B. The STLP Bank's and Dors collateral position shat] be perfected by means of filings
DOT Short Term lending Program:Appticadon and Infamation
AUG- 1-00 TUE 11 36 AM THE BIOENGINEERING GROUP FAX NO. 978 790 0097 P. 5
08:10/98 i8:08 FAA Toa 848 0904 BeS6 TEC9.40LOGIES. INc. X004
"—" under the Uniform Commercial Code(UCC)and by assignment of contract proceeds_
C- Lines of credit shall be Persona guaranteed by each owner of 20% or mote of the
firm.
VI. INTEREST RATE
The funds shall be loaned at the prime rate of interest that is published daily in the Wan
Street Journal,adjusted on the first day of each calendar month for the ensuing momh
VIL LOAN DECISIONS
Loan approval decisions will consist of approval by the STLP Bards and concurrence by
DOT.
'while special consideration must be given to support the financial needs of DBEs in their
early stages of development,decisions will inelWe Ute basic parameters of sotmd credit
judgement and standards.
VIII. BONDED PROJECTS
If a contracting agency or Prime contractor requires bonding before performance can
begin on a transporration related contract, the STLP Bank must receive evidence that the
bond has been fitnished before it makes advances under the line of credit against the
accounts receivable from that contract.
DL LOAN READINESS
A company which does not have a transportation relaxed contract may submit an
application for the STLP at such time as it has received reasonable assurance that it is
being•considered for a specific transportation related contact. Any otyer of a line of
credit Will be conditional upon the company receiving an eligible contract and will be
subject to review after the contract is obtained_
NOTE=Loan Readiness may be performed by the STEP Batiks;however, approval on a
Loan Readiness basis does not commit DOT or the STLP Bank to a loan nor bMly that
the firm will receive a loan through the program
DOT SHORT TERM LENDING PROGRAM
LOAN APPLICATION
Applicant:
- VQTShort Tenn leading Program:1VOCaton and information
AUG- 1-00 TUE 11 : 34 AM THE BIOENGINEERING GROUP PAX NO. 978 740 0097 P. 1
THE BIOENGINEERING GR( 60 &C-.
18 Commercial Street
Salem,Massachusetts USA OIMb A i u — 3 R 1- 12
Phone 97$-740-0096
Fax 978-740-0097 gALI j
Email mail@bioengineeringewnp L,e.p,t��iIr,G D'`--:i
R'WW bttp://www.bieengineering.com
Fax Transmission
To: UrNV\
caaL�M PLQy\htV-, b D �Kst •
Fax No.
Date: Mx to . - Zo 0 b
Pages: S (including cover)
From: %p4, N k_t_
Subject: V4, ov%`xt, , Pt-b6vup.&A
Notes
\NCO tz WLRt..A
MEMORANDUM
TO: Craig Wheeler
FROM: Mary Cassidy
RE: APPLICATION FOR SMALL BUSINESS LOAN—
THE BIOENGINEERING GROUP
DATE: June 3, 1998
I recommend that we make a loan in the amount of$50,000 to Wendi Goldsmith, owner of The
Bioengineering Group, a Salem consulting business in the field of erosion control, water quality
and habitat restoration. The purpose of the loan is to assist with the build-out of the property at
18 Commercial Street in Salem. The Bioengineering Group is in the process of purchasing 18
Commercial Street for $300,000. This acquisition will permit this developing firm to grow in
terms of business and personnel.
The improvements to the property are estimated to cost $128,000 and include HVAC, doors,
electrical work, windows, roof and painting. Ms. Goldsmith has recently been approved by
Danvers Savings Bank in the amount of$342,000 for building purchase and build-out costs. Ms.
Goldsmith has contributed $38,000 towards the purchase price and is also seeking a$100,000
line of credit to address near-term cash flow needs. A loan in the amount of$50,000 from the
City will permit the needed building improvements to occur now. The applicant had considered
delaying HVAC work for a few years, however it was determined that such a delay would be
disruptive to employees and business operations.
ABOUT THE COMPANY -BUSINESS PLAN
The Bioengineering Group is a three year old, woman owned consulting business. The firm
specializes in the design and application of vegetation in construction projects as a means of
enhancing the environment. They also provide research services, construction oversight and
training programs. The Bioengineering Group has numerous national and international private
and public clients that have utilized the firm's services to address erosion control, wetlands
creation and restoration.
The Bioengineering Group currently employs six individuals, is in the process of hiring two
more currently and expects to have a total of twelve employees by the end of 1999. The new
5,000 square foot facility meets the space needs of this growing company and also contains a
small space that will be rented out.
Wendi Goldsmith founded the Bioengineering Group in 1996 and brought over ten years of
experience in the field of water resource restoration and design to the start up of her own
company. She previously was involved in the start up and development of other small
environmental companies and was the President of a small firm that supplied plant and
construction materials for habitat restoration projects. Overall,the development of The
1
Bioengineering Group has been promising in its first three years. During the first year the firm
posted a loss, since then it has been profitable and projections through the year 2001 indicate
ever-increasing revenues and profits.
FINANCIAL OVERVIEW
I have reviewed personal financial statements of Wendi Goldsmith. The assets, liabilities and net
worth of the owner were reviewed and the net worth of the owner appears to be strong. Ms.
Goldsmith included letters explaining her credit situation, which had been briefly troubled, but
has since been resolved.
The company's tax returns for the past three years post a business loss for each year, although the
unaudited statement of operations indicates a positive net income for years ending 1998 and
1997. The operating projections through the year 2001 indicate increasing sales and profits as
the company becomes more established. Sales are projected at $1 million, $1.35 million and
$1.75 million for the years ending 1999, 2000 and 2001. The cash flow projections show that the
firm will be able to handle the current and anticipated debt service should the city loan be made.
The net profit after taxes is projected to increase eac The rental income from a tenant in
the building is anticipated to assist with covering mortgage expenses.
The cash flow proforma indicates that the loan applicant will be able to afford the proposed loan
payments of$706.70 per month. Based on the information supplied, the analysis supports the
offering of a$50,000 loan to assist with needed building improvements. Profitability is
projected for this operation;the owner has previous experience in the field that is brought to bear
on this growing venture and the reputation to assist in its success. Thus, the loan will meet
economic development goals of expanding the small business base in the community and
providing additional employment.
Please see the attached financial statements and cashflow statement for additional information.
Also attached is the business plan and cost estimates for improvements.
LOAN TERMS
The proposed loan terms and conditions are as follows:
Program: Small Business Capitalization Loan Program
Principal: $50,000
Interest rate: 5.0%
Term: 7 years
Monthly payment: $706.70
2
Collateral/Security: - Second position on 18 Commercial Street (The first mortgage is
held by Danvers Savings Bank)
- Security interest in business assets and inventory
- UCC statement
- Personal guarantee
Benefits: - Improves a property
- Adds value to tax base
- Creates additional small business in Salem
THE NEXT STEP
Please let me know if I can approve this loan or if you need more information. I hope to give the
applicant an answer as soon as possible. Thank you.
3
i
River Wharf Realty Trust
The Bioengineering Group, Inc.
Application for Certified Project Designation
Tax Increment Financing Plan
,n
3
53
_f
'777
ti
Presented to:
Salem City Council
March 30, 2000
t
The Massachusetts Economic Development Incentive
Program
Certified Project Application
Applicant Information
1. Name and address of business(es) submitting this application:
Name: River Wharf Realty Trust
Address: 18 Commercial Street
Salem, MA 01970
Fiscal year end is ffeUffWiJ
2. Name and address of project (if different from above):
N/A
3. Location of ETA:
Beverly & Salem Regional ETA
4. Location of EOA:
Salem
5. Authorization: I/We (print), Robert Solomon , of River Wharf Realty
Trust , the entity applying for Certified Project designation,
hereby certify that the information within this application is true
and accurate, and reflects the project's intentions for job creation
and investment. I understand that the information provided within
this application shall be binding for the duration of the project
certification.
Signature (Date)
Signature (Date)
1
t '
6. Nature and purpose of project
River Wharf Realty Trust is seeking Certified Project designation to obtain property tax
relief for its recently purchased building and land at 18 Commercial Street. The
Bioengineering Group, Inc.,the business leasing the building located on the property, is
renovating the space to house its professional offices. The Bioengineering Group, Inc. is
committed to increasing its business and employment and to growing in
�i��'c�te' `tyir�'k�rt6sYet,'nt e�sir a ts be4rtai biite�jad, o asoJsee ikcef,�aTs+*`h".�teurB's4ifoo5:5�,''�v�agrtteoiheap+��a.:n,��. Ftn`�u'�. Salem
.
,
'�' ' � The Bioengineering Group's expectations and goals are to serve to
jump-start development in this neighborhood as the firm's expansion helps to catalyze
other attractive and desirable elements to this area.
The Bioengineering Group was incorporated in January 1996 as a consulting company
providing expertise in the use of vegetation for construction projects designed to optimize
environmental benefits, and provides a full range of services in the field of
bioengineering for erosion control, water quality, and habitat restoration. The company
has been located in Salem since its inception, first at 53 Mason Street, and now at 18
Commercial Street, having leased the building from River Wharf Realty Trust that
purchased the land and building on June 30, 1999.
The Bioengineering Group, Inc. was founded by Wendi Goldsmith who continues to
serve as the President and sole Director and Shareholder of the company. She has over
ten years of involvement in the ecological restoration and erosion control fields. Ms.
Goldsmith left her more recent position as President of Bestmann Green Systems, Inc. in
order to focus her energy on the establishment of a highly specialized consulting firm
offering services related to bioengineered erosion control treatments, stream restoration,
and wetlands creation. The firm's business contacts and strong reputation within the
industry have thus far enabled to firm to grow to its present size and stature. Ms.
Goldsmith and her family have been residents of Salem since 1992 where they own a
home and property on Mall Street.
The Bioengineering Group employs five full time professionals, two training interns from
Germany,two part time student assistants, and two part time administrative staff. The
firth expects that over the next three years approximately fifteen(15)net,new permanent
jobs will be created, using roughly $500,000 in private investment. The business is
young and working aggressively to compete with larger engineering and science
consulting firms,mainly based in Boston. Tax increment financing would offer the
company much needed assistance with cash flow as they seek access to working capital
and financial assistance to control expenses.
The building at 18 Commercial Street is one story with a mezzanine and is located in a
Business Park Development zoning district which is geared towards developing clean
businesses and light industrial uses. The building is a 5,000 square foot building located
2
on a 10,716 square foot lot. Previously the building had been vacant or partially vacant
for a number of years.
Attached is the budget for the project buildout in the amount of$239,925. The budget
includes a new roof, new HVAC system, interior and exterior renovation. The
Bioengineering Group has retained an architect to design the interior layout and
contractors to perform the renovation work.
Budget for Project
dos of4Lm rovemnts t HBud et ,
�-g
Architecture Fees 3,600
ASTM Screen/Limited Assessment 500
Report
Roofing 30,775
General Construction 56,500
Plumbing 8,000
Electrical Work 35,500
Heating and Ductwork 20,000
Air Conditioning 8,600
Lighting 2,850
Interior Finishes 25,000
TelephoneNoicemail System 12,500
Building/Company Sign 900
Security System 2,700
Greenhouse 20,000
Misc. Services: blueprints, permits, 6,500
waste removal, etc.
Misc. Supplies: lumber,paint, 6,000
hardware, ladder rental, etc.
Total Improvement Costs $2399925
3
7. Is this business new to Massachusetts? ❑ Yes ✓ No
If no:
• Where are the existing Massachusetts facilities?
The facility moved from 53 Mason Street in Salem to 18 Commercial Street in
Salem in June 1999.
• Will this project require/trigger the closing or consolidation of any Massachusetts
facilities? If yes,please explain.
No.
8. Is this project an expansion of an existing business? ✓Yes ❑ No
If yes, check the appropriate box: ❑ at existing location
✓ at new location in same municipality
❑ at new location in different municipality
9. Job creation
In order to qualify for Certified Project status, the governing statute and regulations
require the creation of net, new,permanent full-time employees in Massachusetts. On
the chart provided(see next page),please fill in the blanks provided.
4
Work Force Analysis andjob Creation Plan
Current TOTAL NEW JOBS NEWJOBS NEW JOBS NEW JOBS NEW JOBS
employment projected new Year I Year 2 Year 3 Year 4 Year 5
permanent
jobs
Total Employees at Certified Project 13 15 3 3 3 3 3
Facility
Total Employees at Other Sites in N/A
Mass.
#of Employees at Certified Project 1 10 2 2 2 2 2
Location who live in the ETA
#of Permanent Full-Time Employees 6 12 3 3 3 2 1
#of Permanent Part-Time Employees 2 3 — — — 1 2
#of Temporary Full-Time Employees 2 0 — — — — —
#of Temporary Part-Time Employees 3 0 — — — — —
#of Management Positions 2 2 1
Average Salary of Management $85,000
Positions
#of Professional Positions 5 13 2 3 2 3 3
Average Salary of Professional $60,000
Positions
#of Technical Positions 2 — — — — — —
Average Salary of Technical Positions $35,000
#of Skilled Positions 3 — — — — — —
Average Salary of Skilled Positions $25/hr
#of Unskilled Positions 2 — — — — — —
Average Salary of Unskilled Positions $1.50/hr
5
10. Certification for Abandoned Buildings: Does the proposed project involve the
renovation and reuse of an abandoned building? ❑ Yes ❑ No ✓ Unsure
If yes or unsure, please answer the following questions:
(a) How long has the building been vacant? (If known, state date)
The building has been vacant since approximately 1993.
(b) During this period of time, what percentage of the building was vacant and
unused? If the percentage varied during this time period,provide information for
each change in the percent of vacant space and the applicable time period.
11. Local Employment: What actions will you take to recruit employees from among
residents of the ETA?
The owner of the Bioengineering Group is currently involved in community activities to
learn of and update local resources and to identify possible job candidates. The firm
will maintain communication with local agencies and organizations, including Salem
High School and college contacts. The firm will rely on local newspapers as well as
Internet and Boston area employment resources.
The Bioengineering Group has the intention and capacity to achieve the anticipated level
of new permanent full-time jobs for residents of the municipality/Economic Target Area.
The owner is a Salem resident and intends to recruit intensively from the ETA to fill new.
permanent full-time jobs. The firm recently leased a 5,000 square foot facility at 18
Commercial Street to meet the needs of this steadily growing company. It is committed
to expanding the business and adding ETA residents to its payroll. The firm has already
hired at least two full-time employees who are Salem residents (Operations Manager and
Restoration Horticulturist).
The market for bioengineering design and applications has grown quickly in the United
States and internationally and The Bioengineering Group has been successful at obtaining
major contracts for such work. Revenues and volume of work have been increasing and
are anticipated to continue, thus furthering the need for additional personnel. The
Bioengineering Group, Inc. is in the unique position of offering consulting services in
new and innovative environmental technologies. The company has a four year client
base, including new and repeat business in government and public projects, as well as
residential, smaller projects. The company is willing and anxious to search the local
market for promising employees for technical,management and administrative positions.
6
12. Affirmative Action Statement: Does the business have an Affirmative
Action/Equal Employment Opportunity Plan or Statement? ✓ Yes ❑ No
If yes,please attach a copy.
Please see attached.
If no, describe the business' hiring policies and practices.
13. Agreement between the Business and Area Banks: Describe briefly the
business' local banking relationship(s), if any. Does the institution with which the
business banks participate in the Massachusetts Capital Access Program, which is
designed to commit a portion of the business' deposits to fund loans to local businesses?
The Bioengineering Group, Inc. banks with Fleet Bank(Salem Branch) and Danvers
Savings Bank,who participate in the Massachusetts Capital Access Program.
14. Economic benefits of project certification: Provide a description of the
economic benefits that are anticipated for the business and the project, if the project is
certified. Also, provide any information, documentation or studies demonstrating any
additional benefits (i.e. reduction of blight, reuse of abandoned buildings, clean up of
contaminated property,job training,provision of day care, any contributions to the
community, etc.) likely to accrue to the area as a result of Certified Project designation.
Please describe:
The Bioengineering Group, Inc. is engaged in a consistent year-round business activity
that emphasizes skilled and highly skilled employment, both elements of which help to
create economic balance here in Salem where it has often been skewed toward the service
and retail sectors. As The Bioengineering Group enlarges its staff of professionals,
technical and skilled workers,the firm encourages not only their contribution to the
company and the City of Salem, but also, encourages employees to appreciate and settle
in Salem and surrounding communities.
The company and its founder and President, Wendi Goldsmith, are interested in offering
expertise to the community in the form of ecological restoration to promote a coherent
and positive identity for the multi-purpose corridor along the North River in Salem. It is
the firm's intent to encourage the City and active businesses in the area to collaborate in
carving out a clearer identity that could play a small yet significant part in adding to the
enrichment of the already recognized historical and cultural identities in Salem.
The Bioengineering Group's building is located in a section of Salem that in undergoing
revitalization in the form of public park improvements(North River Canal park),new
7
businesses and infrastructure improvements such as the Bridge Street improvements and
the proposed Bridge Street bypass road. Certified Project designation will permit River
Wharf Realty Trust to assist this company's growth and contribute to the overall
economic welfare of Salem. Additionally,the location of this prosperous and healthy
company will further attract other viable economic uses.
Economic benefits to applicant
• Improvements to the building and property and expansion of The Bioengineering
Group's workforce are economically feasible with the receipt of investment tax
credits and property tax benefits
• River Wharf Realty Trust will receive approximately ME in local property tax
benefits over five years
• The rehabilitation of the facility will entitle River Wharf Realty Trust MM in
state 5% investment tax credits
Economic benefits to the City of Salem
• The new location and expansion of The Bioengineering Group could provide an
incentive and an anchor for the development of the Business Park along the North
River Corridor. Additional improvement of the Corridor would add to the attraction
of the newly constructed park area, and could incorporate the historical and cultural
identities of Salem in making the area more attractive to tourists/visitors.
• The quality of the neighborhood would be improved and enhanced by recognizing the
need for improving the properties and integrating the utilitarian role of the business
park district.
• As the company expands its work force, the need for professionals will increase, and
with that, expectations for increases in property investment and taxes.
• The company is expected to add fifteen new jobs in Salem.
• Tax revenues to the City will be increased because (1)the Commercial Street building
will now be occupied by a successful business that contributes to the job market and
use of sales and services from the community as a whole; and (2) improvements to
the building and property will result in an increased value of the property.
Special Requirements for Real Estate Projects
1. Will the business own or lease/rent the facility? ❑ Own '/Lease/Rent
If leasing/renting, please identify the developer/landlord, and state who will be the
taxpayer of record for the purpose of paying local real estate taxes.
The Landlord is River Wharf Realty Trust.
8
If owning,will the business fully occupy the space? ❑ Yes ❑ No
If no, does the business intend to lease/rent the remaining space?
The space will be occupied by The Bioengineering Group and a tenant new to Salem:
Summa, Inc., distributors of graphic equipment.
2. Describe how the various tax benefits and other economic incentives that will result from
Certified Project designation will be allocated among the business(e's) developing the
project(i.e. a developer or landlord) and the business(e's) intending to purchase, lease or
rent space at the facility(i.e. tenant or tenants).
will receive relief in the form of M that will assist it in
its renovation plans for the building.
Supplemental Information
1. Name(s) of business(e's) intending to take advantage of state tax
incentives:
Business Name: River Wharf Realty Trust
Federal Employer ID:
Address: 18 Commercial Street
Salem, MA 01970
Phone: (978) 740-0096
Fax: (978) 740-0097
Contact Person: Wendi Goldsmith/Grace Spence
❑ Individual
Level of interest: (Indicate the benefits the company seeks)
✓ 5% Investment Tax Credit
❑ 10%Abandoned Building Tax Deduction(if applicable)
✓ Local Real Estate Tax Incentive Beneficiary
9
2. Names and Addresses of Organization (please respond according to type)
Realty Trust:
Robert G. Solomon, Trustee
Wendi Goldsmith, Beneficiary
3. Please provide names, addresses, phone numbers and contact persons
for organizations which may own or control or be affiliated with the
applicant organization:
Robert G. Solomon
7 Mall Street
Salem, MA 01970
(978) 740-0096
Wendi Goldsmith
7 Mall Street
Salem, MA 01970
(978) 740-0096
4. Certificate of Good Standing:
A Certificate of Good Standing is attached with this application.
mcc Atiflforms\cpap.wpd
10
i
Commonwealth of Massachusetts Department of Revenue
Taxpayer Service Division
Certificate Unit
PO Box 7066 September 30, 1999
Boston,MA 02204
BIOENGINEERING GROUP, INC.
53 MASON STREET
SALEM, MA 01970
CERTIFICATE OF GOOD STANDING
It is hereby certified by the Commissioner of Revenue of the Commonwealth of Massachusetts
as of the above date, that the above named corporation is a domestic corporation organized
in Massachusetts on January 16, 1996 and that said corporation is in good standing with
respect to any and all returns due and taxes payable to the Commonwealth under General
Laws, Chapter 62C, and the statutes referred to in Section 2 thereof.
This certificate does not certify the corporation's standing as to unemployment insurance taxes
under G.L.Ch. 151a or taxes under any other provisons or law.
No. 53653
By
Assistant Chief,
Automated Systems Bureau
THIS IS NOT A WAIVER OF LIEN ISSUED UNDER GENERAL LAWS, CHAPTER 62C, SECTION 52,
AND CANNOT BE USED FOR SUCH PURPOSE.
5066 - 69976
Frederick b Laskey ®pnmedm recycwpaow
Commissioner
THE BIOENGINEERING GROUP, INC.
Affirmative Action Employment Program
January 1996
1. EEO POLICY STATEMENT
The Bioengineering Group, Inc. ("TBG"), its officers, and managers are
fully committed to equal employment opportunity and to the implementation of
an effective affirmative action employment program without regard to race, sex,
religion, color, national origin, age, sexual orientation, or handicap. It is TBG's
policy to provide equal opportunity in employment for all persons and to prohibit
discrimination in all aspects of its personnel policies, program practices and
operations, and in all of its working conditions and relationships with employees
and applicants for employment.
All TBG employees and managers are responsible for supporting TBG's
policy on equal employment opportunity and for assuring that the workplace is
free from discrimination. As evidence of its commitment to affirmative action in
employment, TBG has made equal employment opportunity a critical element in
its managerial performance appraisal system. Annual evaluation will be made
to measure program accomplishments in affirmative action, and measures will
be taken to remedy imbalances or lack of progress.
2. PLAN FOR PREVENTION OF SEXUAL HARASSMENT
The Bioengineering Group, Inc. is committed to providing a work
environment free of sexual harassment. TBG routinely informs employees that
such harassment is a violation of.Title VII of the Civil Rights Act, and that TBG
prohibits sexual harassment of its employees in any form. Reports of
allegations will be treated with discretion, thoroughly investigated, and acted
upon to eliminate such harassment and to prevent recurrences.
3. STATEMENT OF ADEQUATE MONITORING/EVALUATION SYSTEM
In order to permit ongoing assessment of the TBG affirmative action
employment program, a copy of all personnel actions are given to the TBG
Director of Human Resources as they occur. This allows for the analysis of
hiring and promotions. Since the TBG work force consists of fewer than 200
employees, hiring and promotion can be adequately monitored without a
computerized system.
In addition to the ongoing assessment of personnel data and trends, an
effective, bias-free system of auditing is essential to any affirmative employment
2Affirmative Action Employment Program
January 1996
Page 2
program. Accordingly, on an annual basis, the following will be reviewed by the
Director of Human Resources:
- Effectiveness of barrier elimination strategies.
- Selection process of new hires during year.
Annual findings will be presented in writing to TBG management with
recommendations for correcting problem areas.
4. PROGRAM ANALYSES- RECRUITMENT AND HIRING
It is TBG's policy to promote from within whenever possible. When this
is not possible, professional, administrative, technical, and clerical positions are
advertised in several local newspapers in the recruiting area in an attempt to
reach a diverse group of job candidates.
As provided by the U.S. Equal Employment Opportunity Commission
Management Directive 714 (EEO-MD-714), Section 13a(5), numerical objectives
(goals) are optional because of TBG's limited employment size. Due to the
dynamic nature of TBG's business and the market segment in which it operates,
such objectives would be restrictive to its ability to operate cost-effectively and
at the level of expertise for which it is known.
2
RESOLUTION
APPROVING CERTIFIED PROJECT APPLICATION OF
RIVER WHARF REALTY TRUST
WHEREAS, River Wharf Realty Trust has applied for designation as a Certified Project under
the Massachusetts Economic Development Incentive Program created by Chapter
23A of Massachusetts General laws;
WHEREAS, River Wharf Realty Trust meets the minimum standards of the Economic
Development Incentive Program and the local economic development goals and
criteria established as part of the documents creating the Beverly & Salem
Regional Economic Target Area and the Salem Economic Opportunity Area;
WHEREAS, the proposed certified project is located at 18 Commercial Street, within the
boundaries of the Salem Economic Opportunity Area. The legal description is as
follows:
The land in said Salem with the buildings thereon, if any, bounded and described
as follows:
Parcel No. 1
Beginning at a point on the northerly side of Commercial Street at the
SOUTHWESTERLY corner of land formerly of George F. Lord,thence running
in a NORTHERLY direction along the Westerly property line of the property now
or formerly of George F. Lord, a distance of eighty-nine and 85/100 (89.85) feet
to a point;thence turning and running in a
NORTHWESTERLY direction a distance of fifty and 05/100 (50.05) feet along
land now or formerly of H.P. Hood and Sons,Inc.; thence turning and running in
a SOUTHERLY direction along land now or formerly of the City of Salem, a
distance of ninety-two and 57/100 (92.57) feet; thence turning and running in an
EASTERLY direction along the Northerly street line of Commercial Street, a
distance of fifty (50) feet to the point of beginning.
Containing 4,560 square feet of land, as shown on a plan filed with the Essex
South District Registry of Deeds entitled"Land of City of Salem,Rear of North
Street, Salem, Mass., May 1955,Revised October 1955 —Edgar W.Nickerson,
City Engineer"in Book 4809, Page 500.
Parcel No. 2
The land in said Salem with the buildings thereon, if any, situated on the North
side of the North River Canal and bounded and described as follows:
Beginning at the SOUTHEASTERLY comer of said lot on the Northwesterly side
of a proposed road the same point being three hundred and eighty-eight and
44/100 (388.44) feet Southwesterly from North Street;thence running
SOUTHWESTERLY by the Northwesterly street line of said proposed road
seventy (70) feet to other land now of formerly of the City of Salem;thence
turning and running NORTHWESTERLY by said other land now or formerly of
the City of Salem, eighty-nine and 85/100 (89.85) feet to land now or formerly of
H.P. Hood and Sons,Inc.;thence turning and running EASTERLY by said land
now or formerly of H.P. Hood and Sons, Inc., seventy and 12/100 (70.12) feet to
land now or formerly of Cook; thence turning and running SOUTHEASTERLY
by said land now or formerly of Cook, eighty-six and 06/100 (86.06) feet to the
point begun at.
Containing 6,156 square feet of land and being shown on a plan entitled"Land of
the City of Salem, rear of North Street May 1955, Revised October 1955,Edgar
W.Nickerson, City Engineer" and hereinbefore referred to.
For title,reference is made to Deed of Catharyn H. Lord, dated May 14, 1965 and
recorded with the Essex South District Registry of Deeds in Book 5267, Page 342.
WHEREAS, the City of Salem has agreed to offer River Wharf Realty Trust a Tax
Increment Financing Agreement;
WHEREAS,
Trust will invest approximately to renovate a
property at 18 Commercial Street into professional offices, an investment which
creates approximately 15 new,permanent jobs for residents of the Beverly&
Salem Regional Economic Target Area.
WHEREAS, the renovation of the property at 18 Commercial Street will substantially improve
the aesthetic appearance of the property and reduce blight in one of Salem's
business districts;
NOW THEREFORE BE IT RESOLVED
that the Salem City Council approves the Certified Project application of River
Wharf Realty Trust, designating this project as a certified project for a period of
five years, and forwards said application for certification to the Massachusetts
Economic Assistance Coordinating Council for its approval and endorsement.
Adopted this day of 2000, by the Salem City Council.
Stanley J. Usovicz, Jr., Mayor
Date
Attest:
Deborah E. Burkinshaw, City Clerk
SEAL
Massachusetts Economic Development Incentive Program
Tax Increment Financing Plan
I. Location
A. Economic Opportunity Area (EOA): Salem EOA
B. Municipality: City of Salem
C. Tax Increment Financing (TIF) Zone:
Attached are:
• map of the ETA
• map showing the general location of the proposed private project
• parcel by parcel map with property lines and the outline of each building,
infrastructure improvements, all thoroughfare,public rights of way and easements
• zoning map
Common description of TIF Zone:
The proposed TIF Zone is located at 18 Commercial Street in the Salem Economic
Opportunity Area(EOA). The tax parcel is Map 26, Lot 51.
Legal description of TIF Zone:
The land in said Salem with the buildings thereon, if any, bounded and described as
follows:
Parcel No. 1
Beginning at a point on the northerly side of Commercial Street at the
SOUTHWESTERLY corner of land formerly of George F. Lord,thence running in a
NORTHERLY direction along the Westerly property line of the property now or formerly
of George F. Lord, a distance of eighty-nine and 85/100 (89.85) feet to a point;thence
turning and running in a
NORTHWESTERLY direction a distance of fifty and 05/100 (50.05) feet along land now
or formerly of H.P. Hood and Sons, Inc.; thence turning and running in a SOUTHERLY
direction along land now or formerly of the City of Salem, a distance of ninety-two and
1
57/100 (92.57) feet; thence turning and running in an EASTERLY direction along the
Northerly street line of Commercial Street, a distance of fifty (50) feet to the point of
beginning.
Containing 4,560 square feet of land, as shown on a plan filed with the Essex South
District Registry of Deeds entitled"Land of City of Salem, Rear of North Street, Salem,
Mass., May 1955, Revised October 1955 —Edgar W. Nickerson, City Engineer" in Book
4809, Page 500.
Parcel No. 2
The land in said Salem with the buildings thereon, if any, situated on the North side of the
North River Canal and bounded and described as follows:
Beginning at the SOUTHEASTERLY corner of said lot on the Northwesterly side of a
proposed road the same point being three hundred and eighty-eight and 44/100 (388.44)
feet Southwesterly from North Street; thence running
SOUTHWESTERLY by the Northwesterly street line of said proposed road seventy (70)
feet to other land now of formerly of the City of Salem; thence turning and running
NORTHWESTERLY by said other land now or formerly of the City of Salem, eighty-
nine and 85/100 (89.85) feet to land now or formerly of H.P. Hood and Sons, Inc.; thence
turning and running EASTERLY by said land now or formerly of H.P. Hood and Sons,
Inc., seventy and 12/100 (70.12) feet to land now or formerly of Cook; thence turning and
running SOUTHEASTERLY by said land now or formerly of Cook, eighty-six and
06/100 (86.06) feet to the point begun at.
Containing 6,156 square feet of land and being shown on a plan entitled"Land of the
City of Salem,rear of North Street May 1955, Revised October 1955, Edgar W.
Nickerson, City Engineer"and hereinbefore referred to.
For title, reference is made to Deed of Catharyn H. Lord, dated May 14, 1965 and
recorded with the Essex South District Registry of Deeds in Book 5267,Page 342.
D. Narrative Description of TIF Zone:
Needs, Problems and Opportunities:
Designation of this TIF Zone meets the needs of, solves problems for and creates
opportunities for River Wharf Realty Trust and the City of Salem.
Solving problems and meeting the needs of River Wharf Realty Trust:
River Wharf Realty Trust purchased the land and building at 18 Commercial on June 30,
2
1999 and leased it to The Bioengineering Group, Inc., a small consulting firm that made
a sizable investment in Salem in locating at 18 Commercial Street and undertaking the
extensive renovations to the property. The building or portions of the building were
unused for some time prior to the purchase, and the building needed to be transformed
into professional office space from what was essentially an open warehouse.
In order for The Bioengineering Group, Inc. to remain in Salem, it recognized it would
be necessary to raise funds to convert the building into a viable business location. With
that in mind,the company set out to investigate sources for funding and economic
assistance. River Wharf Realty Trust recognized that the Tax Increment Financing
Certified Project designation, would be especially helpful in assisting The
Bioengineering Group in its early years of growth and expansion.
Creating Opportunityfor River Wharf Realty Trust:
Assistance from the City of Salem and the Massachusetts Office of Business
Development through Certified Project designation will create the opportunity for River
Wharf Realty Trust to assist The Bioengineering Group to grow its business in Salem.
Although the company has already demonstrated successful growth in the environmental
technology consulting field, the company is still small and values the opportunity to stay
in Salem where it has already discovered local need for its services.
This project provides the Bioengineering Group,Inc. with the ideal opportunity to
jumpstart economic development on the Commercial Street corridor and to be the first of
many anticipated businesses to create a business park in this area that is fronting on the
recently established North River Canal Park. The project is also anticipated to employ
15 permanent, net, new jobs in the ETA.
Solving problems and meeting the needs of the City of Salem:
Designation of the TIF Zone and approval of this TIF Plan will help River Wharf Realty
Trust, which will expand the tax base and increase the supply of healthy, growing
businesses in the City of Salem. The establishment of a professional firm such as The
Bioengineering Group in this business corridor will help to spur further economic
growth, as other firms are attracted to this improved business district.
The City has undertaken several initiatives in this area to boost economic development
and aesthetic appearances. The existence of the North River Canal Park provides a very
attractive setting in which to locate a business. The proposed Bridge Street By-pass,
which is located nearby to this development, will improve travel in Salem. Additionally,
the nearby former Parker Brothers site is slated for redevelopment as a high end
residential and mixed use development, which will greatly improve this section of
Salem.
3
Creating Opportunity for the City of Salem:
Certified Project designation permits River Wharf Realty Trust to assist The
Bioengineering Group to remain in Salem where it can continue dialogue with
community representatives to learn ways that it can service the local area with
environmental solutions while helping to bring employment opportunities to the City as
well. The City of Salem will benefit by the presence of a stable company that improves
the appearance of the Commercial Street area, adds permanent jobs and will be a vital
component of an overall economic development revitalization.
E. Property owners within the proposed TIF Zone:
The property owner is:
River Wharf Realty Trust
Robert G. Solomon, Trustee
H. Time
The TIF Plan and TIF Zone described here will be in effect foraeriod of five years.
P
III. TIF Zone & Economic Development
A. Economic Opportunities and Economic Benefits to the
Community: Approval of the proposed TIF Zone will create the
following economic development opportunities and benefits:
• Creates jobs: 15 net,new permanent jobs. The Bioengineering Group will expand
its work force from the present thirteen employees to an additional fifteen
technical, administrative and management positions over the life of the TIF. With
that,there are expectations for increases in property investment and tax revenues
to the City.
• Generates addtional tax revenue through the life of the TIF and beyond: see
attached spreadsheet entitled "5 Year Tax Increment Financing Plan". Tax
revenues to the City will be increased because (1)the Commercial Street building
will now be occupied by running, successful businesses contributing to the job
market and use of sales and services from the community as a whole; and(2)
improvements to the building and property will have occurred.
• Improves appearance of vacant property through renovation. The quality of the
neighborhood would be improved and enhanced by recognizing the need for
improving the properties and integrating the utilitarian role of the business park
district.
• The new location and expansion of The Bioengineering Group could provide an
4
incentive and an anchor for the development of the Business Park along the North
River Corridor. Additional improvement of the Corridor would add to the
attraction of the newly constructed park, area, and could incorporate the historical
and cultural identities of Salem in making the area more attractive to
tourists/visitors.
B. Proposed and Potential Land Uses: (analyze how the land uses are
appropriate for anticipated economic development)
The property will be used for the professional offices of The Bioengineering Group, Inc.
In addition to the building improvements, plans are being made to include an attractive
greenhouse where the company will be able to grow and demonstrate the use of wetland
plants appropriate to the New England area. It is anticipated that the improvements and
greenhouse will greatly enhance the restoration to the area already initiated by the City
and contribute to ongoing economic development initiatives.
C. Zoning in the TIF Zone: The TIF Zone is located in a Business Park
Development district.
D. Hazardous Waste: (identify any parcels, public or private, in zone which are
confirmed hazardous waste disposal sites, in accordance with chapter 21 E, MGL.
Describe any public or private site remediation activities and any reuse plans)
Not Applicable
IV. TIF Zone Projects
A. Planned Private Project:
The Bioengineering Group, Inc. is renovating a 5,000 square foot warehouse at 18
Commercial Street consisting of one floor and a mezzanine into its professional offices.
B. Provide Documentary evidence of the level of the developer's
commitment to the proposed and required construction in the TIF
project:
The Bioengineering Group, Inc. has already paid legal and professional fees related to the
appraisal, 21E assessment, building inspection, and closing costs associated with the
purchase of the property and building. Wendi Goldsmith, owner and president of the
company, also contributed personally towards the down payment. Additionally,the
company has engaged the services of an architect, general contractor and roofing,
electrical, plumbing and HVAC contractors for the development of this project.
5
C. Budget for Project:
The costs of completing the project are as follows:
rCost ofrImprovements � udget;
`td.F,m'. .- _._'f'';.N. ,', rn .. ",ti;�d `�« ` .�ds�,#,'se", "`rth.* P+,s�`r.��� +x 1
Architecture Fees 3,600
ASTM Screen/Limited Assessment 500
Report
Roofing 30,775
General Construction 56,500
Plumbing 8,000
Electrical Work 35,500
Heating and Ductwork 20,000
Air Conditioning 8,600
Lighting 2,850
Interior Finishes 25,000
TelephoneNoicemail System 12,500
Building/Company Sign 900.
Security System 2,700
Greenhouse 20,000
Misc. Services: blueprints, permits, 6,500
waste removal, etc.
Misc. Supplies: lumber,paint, 6,000
hardware, ladder rental, etc.
Total Improvement Costs $2399925
6
D. Relevant business plans:
Time schedule for development:
Expected increases in job creation:
15 permanent professional,technical, management, skilled and unskilled jobs
Estimates of tax revenue based upon increased valuation of parcel:
Please see attached spreadsheet entitled"5 Year Tax Increment Financing Plan"
E. Participation in other federal, state and local economic
development programs and initiatives:
N/A
F. Planned Public Projects:
N/A
V. Financing for TIF Zone Projects
A. Anticipated Financing for Private Projects:
Source: Amount:
Danvers Savings Bank—SBA Loan/Mortgage $342,000
Danvers Savings Bank—Line of Credit 100,000
City of Salem Note 50,000
Danvers Savings Bank Loan 90,000
Investment from W. Goldsmith 55,000
Total $637,000
B. Anticipated Financing for Public Projects:
N/A
C. Detailed Projection of Costs of Public Construction:
N/A
7
D. Will Betterments be used to finance any public-private projects,
now or within the proposed life of the TIF Plan?
N/A
E. If Betterments or Special Assessments are a part of the TIF Plan:
N/A
F. Describe how private projects will be financed:
Evidence of private financing commitments:
The Bioengineering Group has received approvals and funds for the financing of
this project from Danvers Savings Bank and the City of Salem.
VI. TAX INCREMENT FINANCING
A. Authorization to use TIF: The attached City Council resolution dated
March 9, 1995 authorizes the City of Salem to use TIF in the Salem EOA. Also
attached is a City Council Resolution approving the TIF Plan for River Wharf
Realty Trust on
B. Amount of proposed tax increment exemptions from property
taxes: As the attached spreadsheet shows,the Chairman of Salem's Board of
Assessors estimates that property tax benefits will total approximately $ E over
five years. Also, see the description of the proposed TIF Plan in part D of this
section.
C. Maximum percentage of public project costs that can be
recovered through betterments or special assessments:
N/A
D. TIF exemption from property taxes:
As the attached spreadsheet shows,the City estimates the tax benefits to total
approximately=over 5 years.
8
The exemption plan works as follows:
Year River Wharf Realty Trust Pays:
1 75% of the increment,plus the base tax bill
2 85%of the increment,plus the base tax bill
3 95%of the increment,plus the base tax bill
4 95%of the increment,plus the base tax bill
5 95%of the increment,plus the base tax bill
6 100%of the increment,plus the base tax bill
The effective date of tax increment exemption is July 1, 2000(Fiscal Year 2001).
The property becomes eligible for the tax increment exemption on the July first
following the date on which the EACC approves the plan.
Term of the exemption: 5 years
VII. Approval of TIF projects
TIF projects are approved by the Salem City Council. The Mayor and his staff are
responsible for negotiating TIF Plans and, after Council approval,executing those plans.
Evidence of local approvals of the proposed TIF Zone and TIF Plan is provided here in
the form of a resolution authorizing a TIF agreement passed by the Salem City Council
on
\MOTIFBimngincering\TIFPLAN.doc
9
' I
RESOLUTION
AUTHORIZING THE USE OF TAX INCREMENT FINANCING IN THE
SALEM ECONOMIC OPPORTUNITY AREA
WHEREAS,the City of Salem is part of the area designated the Beverly& Salem Regional
Economic Target Area and the Salem Economic Opportunity Area;
WHEREAS,there is strong support for economic development and the use of Tax Increment
Financing as an economic development tool to create jobs and encourage business
expansion and relocation to the City of Salem;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Salem that:
(1) Tax Increment Financing may be used as a tool to encourage economic
development within the Salem Economic Oppoounity.Area.
(2) The Mayor is hereby authorized to execute and implement Tax Increment
Financing agreements.
Adopted this day of 19��by the Salem '
City Council at a regular City Council meeting with a quorum present.
Neil J. H mgton,May6r Date
ATTEST:
Deborah E. Burkinshaw,City Clerk
SEAL
RESOLUTION
AUTHORIZING A TAX INCREMENT FINANCING AGREEMENT
For River Wharf Realty Trust
WHEREAS, the City of Salem is part of the area designated the Beverly & Salem Regional
Economic Target Area and the Salem Economic Opportunity Area;
WHEREAS, the Mayor of the City of Salem has prepared a Tax Increment Financing
Agreement in accordance of Chapter 40 and 751 CMR 11.00;
WHEREAS, there is strong support for economic development and the use of Tax Increment
Financing as an economic development tool to encourage business expansion in
and relocation to the City of Salem;
WHEREAS, there is strong support for using Tax Increment Financing to encourage the
renovation of 18 Commercial Street,the property owned by River Wharf Realty
Trust and leased to The Bioengineering Group,Inc.;
WHEREAS, this property is located in the Salem Economic Opportunity Area;
NOW THEREFORE BE IT RESOLVED by the Salem City Council that:
(1) The Tax Increment Financing Agreement be adopted as it has been substantially
submitted to the City Council. A copy of said Tax Increment Financing Agreement is
attached as Exhibit A,and made part of this Resolution.
(2) The area to be designated as a Tax Increment Financing Zone is:
The land in said Salem with the buildings thereon,if any,bounded and described as
follows:
Parcel No. 1
Beginning at a point on the northerly side of Commercial Street at the
SOUTHWESTERLY comer of land formerly of George F. Lord,thence running in a
NORTHERLY direction along the Westerly property line of the property now or formerly
of George F. Lord, a distance of eighty-nine and 85/100 (89.85)feet to a point;thence
turning and running in a
NORTHWESTERLY direction a distance of fifty and 051100 (50.05) feet along land now
or formerly of H.P. Hood and Sons, Inc.;thence turning and running in a SOUTHERLY
direction along land now or formerly of the City of Salem, a distance of ninety-two and
57/100 (92.57)feet;thence turning and running in an EASTERLY direction along the
Northerly street line of Commercial Street, a distance of fifty (50)feet to the point of
beginning.
Containing 4,560 square feet of land, as shown on a plan filed with the Essex South
District Registry of Deeds entitled"Land of City of Salem,Rear of North Street, Salem,
Mass.,May 1955, Revised October 1955—Edgar W.Nickerson, City Engineer"in Book
4809, Page 500.
Parcel No. 2
The land in said Salem with the buildings thereon, if any, situated on the North side of the
North River Canal and bounded and described as follows:
Beginning at the SOUTHEASTERLY corner of said lot on the Northwesterly side of a
proposed road the same point being three hundred and eighty-eight and 44/100(388.44)
feet Southwesterly from North Street;thence running
SOUTHWESTERLY by the Northwesterly street line of said proposed road seventy(70)
feet to other land now of formerly of the City of Salem;thence turning and running
NORTHWESTERLY by said other land now or formerly of the City of Salem,eighty-
nine and 85/100 (89.85) feet to land now or formerly of H.P. Hood and Sons, Inc.;thence
turning and running EASTERLY by said land now or formerly of H.P. Hood and Sons,
Inc., seventy and 12/100(70.12)feet to land now or formerly of Cook;thence turning and
running SOUTHEASTERLY by said land now or formerly of Cook,eighty-six and
06/100 (86.06)feet to the point begun at.
Containing 6,156 square feet of land and being shown on a plan entitled"Land of the
City of Salem,rear of North Street May 1955,Revised October 1955, Edgar W.
Nickerson, City Engineer"and hereinbefore referred to.
For title,reference is made to Deed of Catharyn H. Lord, dated May 14, 1965 and
recorded with the Essex South District Registry of Deeds in Book 5267, Page 342.
(3) A map of the Tax Increment Financing Zone is hereby attached as Exhibit B and made
part of this Resolution.
(4) The Tax Increment Financing Agreement shall be binding on all subsequent owners of
the property in the Tax Increment Financing Zone. The City of Salem reserves the right
to review and renegotiate the Tax Increment Financing Agreement if the business activity
ceases to be fully operational during the life of the Tax Increment Financing Agreement,
as specified in the Tax Increment Financing Agreement.
(5) A copy of the adopted Tax Increment Financing Agreement shall be forwarded to the
Massachusetts Economic Assistance Coordinating Council for its approval.
(6) The effective date of the Tax Increment Financing Agreement shall be July 1,2000
(Fiscal Year 2001),whichever is later.
(7) The Mayor is hereby authorized to execute and implement the Tax Increment Financing
Agreement.
Adopted this day of 2000 by the Salem City
Council at a regular City Council meeting with a quorum present.
Stanley J. Usovicz,Jr.,Mayor Date
ATTEST:
Deborah E. Burkinshaw,City Clerk
SEAL
RIVER WHARF REALTY TRUST ✓d.(�w� CC,( /C-U /A-7f)'0-1,1
5-YEAR TAX INCREMENT FINANCING PLAN
Base Value FY 00 $205,500 Tax Rate $31.65
Value After Building Renovation "" Levy Percent Growth 2.5%
Increment in Value ($205,500) Base Year FY 2000
.: ......,_ �:..�..y::u�ex...:...,
s..e. oz4... e..:.....
:. wE`k`E: .. :dE:k .ee a.;:e:;c��w��.a....�:,�� 'ae-.•a�e.7o'.cs a'ss..: ,..:'.?;a;.axo:gg...
.:�Sa..�;o',e .: a$6 .x .e�n�e..,.:�'o`�,.�,. ..x3 : ems.� w.�: e:�«.,�.�.4�;i�a�n'S,'a
wo ..:ro ov<.:aoss3"o�� aaa�eobs,<..:..� u:<e +g�,. x.. w .rna.<«:.a»wt :er.�,.3?aa''�box::,:A.:.� e�:e
...�y..w: :.: ;a..ks :<>:t....y.gat. :.y?o- . .xo...... 3e ..e:�9'.0,..�3,.:,'o�._",a�A.,.a.+`.:.:aq:.exa.:,o-a>.;eR:o:9�<Y,::;..ae;sw.>..>.::..�.E....C.
xmau�'° �ea� v��$ e °tv'•`'Px�'s" �E77.�>a�ra��s �s��+x� a�<h<�'.���i1�Mis€#:e`S'o.,. $x%,
�,o.<:a'.>: oac.s..«
BASE $205,500 $31.65 $6,504 0% $7,090 $0 $7,090 $0
1 $32.44 $0 75% $6,667 $0 $6,667 ($6,667)
2 $33.25 $0 85% $6,833 $0 $6,833 ($6,833)
3 $34.08 $0 95% $7,004 $0 $7,004 ($7,004)
4 $34.94 $0 95% $7,179 $0 $7,179 ($7,179)
5 $35.81 $0 95% $7,359 $0 $7,359 ($7,359)
6 $36.70 $0 100% $7,543 ($754) $6,788 ($6,788)
TOTALS $6,504 $48,920 ($41,831)
NOTES Z"
'TIF% = Percent of increment that is taxed w`( l ��y- ��
"Taxes Paid Each Year= Base Tax Bill plus Taxes on Increment
"'Tax Benefit Each Year= Benefit to River Wharf Realty Trust
Base Value consists of FY2000 Assessed value of 18 Commercial Street
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TAX INCREMENT FINANCING AGREEMENT
CITY OF SALEM, MASSACHUSETTS
and
RIVER WHARF REALTY TRUST
This agreement is made this_day of , 2000,by and between the CITY OF
SALEM, a municipal corporation duly organized under the laws of the Commonwealth of
Massachusetts,having a principal place of business at City Hall, 93 Washington Street, Salem,
Massachusetts, 01970,acting through the Mayor, Stanley J. Usovicz, Jr., (hereinafter called "the
CITY"), and RIVER WHARF REALTY TRUST, a Massachusetts corporation with a principal
place of business at 18 Commercial Street in Salem, Massachusetts, 01970 (hereinafter called
"the COMPANY") . This Agreement will take effect as of July 1, 2000(Fiscal Year 2001).
WHEREAS, the COMPANY has permitted The Bioengineering Group, Inc. (hereinafter called
"the LESSEE"of the COMPANY)to renovate the building at 18 Commercial
Street in Salem as the professional offices for the LESSEE; and
WHEREAS, the CITY is willing to grant tax concessions in return for guarantee of the
renovation of this distressed property and the creation of employment
opportunities for local workers;and
WHEREAS, the Salem City Council resolved on November 9, 1995 to allow the use of Tax
Increment Financing as a tool to encourage economic development within the
Salem Economic Opportunity Area;and
WHEREAS, the Salem City Council resolved on to endorse the Tax
Increment Financing Plan negotiated by the CITY and the COMPANY.
NOW,THEREFORE, in consideration of the mutual promises contained herein,the parties do
mutually agree as follows:
A. THE COMPANY'S OBLIGATIONS
1. The COMPANY shall purchase and permit the LESSEE to renovate the property at 18
Commercial Street in Salem. "The FACILITY" as used herein means a building
containing approximately 5,000 square feet plus site improvements.
2. During the life of this agreement,if the COMPANY decides to sell the FACILITY or the
business or to otherwise transfer control of the FACILITY or business and/or operations
thereof,the COMPANY shall give the CITY at least three months notice of said sale or
transfer. Said notice shall be given by certified mail,return receipt requested,to the
Mayor, City Hall, 93 Washington Street, Salem, Massachusetts, 01970.
B. THE CITY'S OBLIGATIONS
I. The CITY shall grant a tax increment financing exemption to the COMPANY in
accordance with Massachusetts General Laws,Chapter A, Section 3E;Chapter 40,
Section 59, and Chapter 59, Section 5. Said exemption shall be granted on the
improvements to the FACILITY. Said exemption shall be valid for a period of five (5)
years,beginning with fiscal year 2001 (July 1, 2000)and ending with fiscal year 2006.
During each year of this agreement,the company will pay taxes based on the base value
of the FACILITY and on that portion of the value of the FACILITY which is not
exempted under the agreement.
The base value is established by the Board of Assessors (the Board) and is the assessed
value established for the most recent fiscal year immediately prior to the fiscal year in
which the property first becomes eligible for the tax increment exemption of the
FACILITY unless an abatement is approved by the Board.
The exemption schedule on the value of the FACILITY works as follows: For the first
year,the COMPANY will pay the base tax bill and will pay taxes on 75%of the full
value of improvements to the FACILITY. The full value of improvements to the
FACILITY is hereinafter called"the INCREMENT". In year two,the COMPANY will
pay taxes on 85%of the full value of the INCREMENT,plus the base tax bill. In year
three,the COMPANY will pay taxes on 95%of the full value of the INCREMENT, plus
the base tax bill. In year four,the COMPANY will pay taxes on 95%of the
INCREMENT,plus the base tax bill. 'In year five,the COMPANY will pay taxes on 95%
of the INCREMENT,plus the base tax bill. In year six,the COMPANY will pay taxes
on the full value of the FACILITY.
C. OTHER CONSIDERATIONS
I. This Tax Increment Financing Agreement shall be binding on all subsequent owners of
the property. The City of Salem reserves the right to review and renegotiate the Tax
Increment Financing Agreement if the business activity ceases to be fully operational
during the life of the Tax Increment Financing Agreement.
2. If the COMPANY decides to expand the facility at any time during the life of the Tax
Increment Financing Agreement,the CITY and the COMPANY may renegotiate the Tax
Increment Financing Agreement to exempt all or part of the value of the expansion from
property taxes. The exact amount of that exemption will be determined at the time of
expansion.
Executed as a sealed instrument on the day and year first above written.
CITY OF SALEM RIVER WHARF REALTY TRUST
Stanley J. Usovicz,Jr., Mayor Robert G. Solomon, Trustee
Notary Public
My commission expires
Beverly & Salem Regional
Economic Target Area 9
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CITY OF SALEM ZONING MAP
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. ■ 92-BusinessHighway
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❑ BPD-Business Park Development
- ■ 1-Industrial
■ R1 -Residential One Family
■ R2-Residential Two Family
■ R3-Residential Multi-Family
■ RC-Residential Conservation -
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'>A.eeueo[ • '� BL ENOALE '
' � •• eovE � TIF Zone Indicated
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1 River Wharf Realty Trust
1 The Bioengineering Group, Inc.
1
1 Application for Certified Project Designation
Tax Increment Financing Plan
1
1
I — I
�i ' '"'=""" N`. i N. �Ig , i' NIIIIII 'NU�iI �, d� I��! ' I N I '� Nlld I iti.l�tl 'kNPiTntkkV 1 111P NNIP, 1116 .
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' Presented to:
' Economic Assistance Coordinating Council
Dean Serpa and Jane Wallis Gumble, Co-Chairs
1 Presented by:
1The City of Salem
Stanley J. Usovicz, Jr., Mayor
and
' River Wharf Realty Trust
1 May 17, 2000
'1
' CITY OF SALEM, MASSACHUSETTS
' STANLEY J. USOVICZ, JR.
MAYOR
May 17, 2000
' Economic Assistance Coordinating Council
' Mr. George Mazareas, Director
Massachusetts Office of Business Development
10 Park Plaza
Suite 3720
Boston, MA 02116
To the Members of the Economic Assistance Coordinating Council:
I am pleased to submit for your review the City of Salem resolutions and applications
' necessary to designate River Wharf Realty Trust a Certified Project through the
Commonwealth's Economic Development Incentive Program(EDIP). River Wharf Realty Trust
t has permitted its tenant,The Bioengineering Group, Inc., to renovate the building at 18
Commercial Street in Salem. River Wharf Realty Trust is the holding company for The
Bioengineering Group, Inc. and as a matter of standard business practice, The Bioengineering
' Group, Inc. leases the building from the Realty Trust.
The Bioengineering Group, Inc. is a consulting firm in the field of bioengineering for
' erosion control, water quality and habitat restoration. The Bioengineering Group has committed
to expanding its company and workforce by renovating a formerly abandoned 5,000 square foot
warehouse into its professional offices. This growing firm will serve as a stabilizing element to
the North River Canal Park business district and will encourage further economic development
within that region. The firm plans to expand its workforce by an additional fifteen employees
over the life of the five year TIF agreement. The company will invest approximately $240,000
' into the renovation activities that will result in greatly improved property and higher property
values.
' To make the development economically feasible, the City has offered River Wharf Realty
Trust access to the EDIP, making available the state and local tax benefits associated with
' Salem's status as an Economic Target Area(ETA).
On April 13, 2000, the Salem City Council voted to designate River Wharf Realty
Trust a certified project and endorsed a five year tax increment financing plan, as the attached
' SALEM CITY HALL-93 WASHINGTON STREET•SALEM, MASSACHUSETTS 01970-3592•978/745-9595•FAX 978/744-9327
1
' application materials illustrate. River Wharf Realty Trust, as holding company for The
Bioengineering Group,Inc. is a worthy beneficiary of these incentives. Tax revenue will be
generated for the City, as well as jobs for target area residents.
' If approved, this project will mark the seventh time that the City has used the tools
available through the Economic Development Incentive Program to promote development in
Salem. Previous TIF projects have sent a strong message to companies located in Salem and
t outside of the City, showing that we are able to compete successfully for business. The
economic impact of these projects and the pro-business message they send surely will combine to
result in an improved business climate.
' Once again I appreciate your support of the City of Salem's economic development
efforts and hope that you will vote to certify the River Wharf Realty Trust project.
' Sincerely,
1
Stanley J. Usovicz, Jr.
I ' Mayor
1
1
53 MASON STREET
BIOENGINEERING
SALEM,MA 01970
BIOENGINEERING 978-740-0096
' GROUP, INC. - ...:978-740-0097
WW ..BIOENGINEERING.COM
' May 15, 2000
Economic Assistance Coordinating Council
Attention: George Mazareas,Director
' Massachusetts Office of Business Development
10 Park Plaza—Suite 3720
Boston,MA 02116
To the Members of the Economic Assistance Coordinating Council:
' The Bioengineering Group,Inc., in the form of its holding company,River Wharf Realty Trust,
has recently purchased property,at 18 Commercial Street in the City of Salem in a commitment to
' continue its business operations and to plan for the growth and expansion of the-company within the City.
We have already begun renovations and improvements of the building and are dedicated to continuance
and completion of those plans. In addition,we expect to construct a greenhouse and to work toward
changing the esthetics of our property to encourage others in the development of the Business Park along
' the North River Corridor.
The River Wharf Realty Trust and The Bioengineering Group,Inc. are the same entity. The
' Bioengineering Group is a young, growing company, and as it began to make plans for purchasing its
own property,its financial and legal advisors recommended that it create a holding company in the form
of a realty trust,a standard business practice. The River Wharf Realty Trust was formed with the
' knowledge and approval of Danvers Savings Bank, the lending institution for the mortgage and business
loans for building and land improvements.The Bioengineering Group,hic./River Wharf Realty Trust
desires Certified Project status to participate in a Tax Increment Financingagreement that will assist the
' Company in its expansion plans.
The Bioengineering Group is committed to continuing business in Salem and creating fifteen new
' jobs,over the life of the five-year Tax Increment Financing plan. The Bioengineering Group,hic./River
Wharf Realty Trust would like to take advantage of property tax incentive financing and state investment
tax credits offered through the Commonwealth's Economic Development Incentive Program in order to
contribute to the economic development of the target area,and to contribute to the development and
' visitor attraction of the newly constructed park area along the North River Corridor. ,
The economic and community benefits of this project are described within our application for
certified project status. We invite your interest and questions.
Sincerely,
ThA Bioengineering up,In . : River Wharf Realty Trust
Wendi Goldsmith Robert G. Solomon
tPresident Trustee
Enclosures.
' CONSULTANTS IN EROSION CONTROL.WATER QUALITY.AND HABITAT RESTORATION -
i
The Massachusetts Economic Development Incentive
Program
Certified Project Application
' Applicant Information
' 1. Name and address of business(es) submitting this application:
' Name: River Wharf Realty Trust Address: 18 Salem,Commercial
e cStreet
01970
' Fiscal year end is: December 31'
2. Name and address of project (if different from above):
' N/A
' 3. Location of ETA:
' Beverly &Salem Regional ETA
' 4. Location of EOA:
Salem
5. Authorization: I/We(print), Robert Solomon _, of River Wharf Realty
Trust ,the entity applying for Certified Project designation,
' hereby certify that the information within this application is true
and accurate, and reflects the project's intentions for job creation
and investment. I understand that the information provided within
' this application shall be binding for the duration of the project
certification.
07
Signature (Dat
Signature (Date)
' 1
1
' 6. Nature and purpose of project
' River Wharf Realty Trust is seeking Certified Project designation to obtain property tax
relief for its recently purchased building and land at 18 Commercial Street. The
Bioengineering Group,Inc.,the business leasing the building located on the property,is
' renovating the space to house its professional offices. River Wharf Realty Trust desires
Certified Project status to participate in a Tax Increment Financing agreement and to be
able to assist The Bioengineering Group with its expansion plans.
' River Wharf Realty Trust was formed as the holding company for The Bioengineering
Group. When The Bioengineering Group began to explore the option of purchasing
' property,its financial and legal advisors recommended that it create a holding company
in the form of a realty trust, a standard business practice. The Bioengineering Group,Inc.
' is committed to increasing its business and employment and to growing in Salem. The
Bioengineering Group's expectations and goals are to serve to jump-start development in
this neighborhood as the firm's expansion helps to catalyze other attractive and desirable
' elements to this area.
The Bioengineering Group was incorporated in January 1996 as a consulting company
' providing expertise in the use of vegetation for construction projects designed to optimize
environmental benefits, and provides a full range of services in the field of
bioengineering for erosion control,water quality,and habitat restoration. The company
t has been located in Salem since its inception,first at 53 Mason Street, and now at 18
Commercial Street,where it leases the building from its holding company,River Wharf
Realty Trust,that purchased the land and building on June 30, 1999.
' The Bioengineering Group,Inc. was founded by Wendi Goldsmith who continues to
serve as the President and sole Director and Shareholder of the company. She has over
' ten years of involvement in the ecological restoration and erosion control fields. Ms.
Goldsmith left her more recent position as President of Bestmann Green Systems,Inc. in
order to focus her energy on the establishment of a highly specialized consulting firm
offering services related to bioengineered erosion control treatments, stream restoration,
and wetlands creation. The firm's business contacts and strong reputation within the
' industry have thus far enabled to firm to grow to its present size and stature. Ms.
Goldsmith and her family have been residents of Salem since 1992 where they own a
home and property on Mall Street.
' The Bioengineering Group employs five full time professionals,two part time
professionals,two training interns from Germany,two part time student assistants, and
' two part time administrative staff. The firm expects that over the next three years
approximately fifteen(15)net, new permanent jobs will be created,using roughly
$500,000 in private investment. The business is young and working aggressively to
' compete with larger engineering and science consulting firms,mainly based in Boston.
Tax increment financing would offer the company much needed assistance with cash
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flow as they seek access to working capital and financial assistance to control expenses.
The building at 18 Commercial Street is one story with a mezzanine and is located in a
I ' Business Park Development zoning district which is geared towards developing clean
businesses and light industrial uses. The building is a 5,000 square foot building located
' on a 10,716 square foot lot. Previously the building had been vacant or partially vacant
for a number of years.
i ' Attached is the budget for the project buildout in the amount of$239,925. The budget
includes a new roof,new HVAC system, interior and exterior renovation.
' Budget for Project
Architecture Fees 3,600
ASTM Screen/Limited Assessment 500
' Report
Roofing 30,775
General Construction 56,500
Plumbing 8,000
' Electrical Work 35,500
Heating and Ductwork 20,000
' Air Conditioning 8,600
Lighting 2,850
Interior Finishes 25,000
' Telephone/Voicemail System 12,500
Building/Company Sign 900
I ' Security System 2,700
Greenhouse 20,000
' Misc. Services: blueprints,permits, 6,500
waste removal, etc.
' Misc. Supplies: lumber,paint, 6,000
hardware, ladder rental, etc.
Total Improvement Costs $2399925
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Is this business new to Massachusetts? ❑ Yes ✓ No
' If no:
• Where are the existing Massachusetts facilities?
The Bioengineering Group moved from 53 Mason Street in Salem to 18
Commercial Street in Salem in June 1999.
' Will this project require/trigger the closing or consolidation of any Massachusetts
' facilities? If yes,please explain.
No.
' 8. Is this project an expansion of an existing business? ✓Yes ❑ No
' If yes, check the appropriate box: ❑ at existing location
✓ at new location in same municipality
❑ at new location in different municipality
' 9. Job creation
' In order to qualify for Certified Project status,the governing statute and regulations
require the creation of net,new,permanent full-time employees in Massachusetts. On
the chart provided (see next page), please fill in the blanks provided.
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Work Force Analysis andjob Creation Plan
Current TOTAL NEW JOBS NEW JOBS NEW JOBS NEW JOBS NEW JOBS
employment projected new Year I Year 2 Year 3 Year 4 Year 5
permanent
jobs
Total Employees at Certified Project 13 15 3 3 3 3 3
Facility
Total Employees at Other Sites in N/A
Mass.
#of Employees at Certified Project 7 10 2 2 2 2 2
Location who live in the ETA
#of Permanent Full-Time Employees 6 12 3 3 3 2 1
#of Permanent Part-Time Employees 2 3 — — — 1 2
#of Temporary Full-Time Employees 2 0 — — — — —
#of Temporary Part-Time Employees 3 0 — — — — —
#of Management Positions 2 2 1
Average Salary of Management $85,000
' Positions
#of Professional Positions 5 13 2 3 2 3 3
Average Salary of Professional $60,000
Positions
#of Technical Positions 2 — — — — — —
Average Salary of Technical Positions $35,000
#of Skilled Positions — — — — — —
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' Average Salary of Skilled Positions $25/hr
#of Unskilled Positions 2 — — — — — —
Average Salary of Unskilled Positions $1.50/hr
t5
' 10. Certification for Abandoned Buildings: Does the proposed project involve the
renovation and reuse of an abandoned building? o Yes ❑ No ✓ Unsure
' If yes or unsure,please answer the following questions:
(a) How long has the building been vacant? Of known, state date)
The building has been vacant since approximately 1993.
' (b) During this period of time, what percentage of the building was vacant and
unused? If the percentage varied during this time period, provide information for
' each change in the percent of vacant space and the applicable time period.
' From 1993 to late 1998,the building was 50%vacant. From late 1998 to June
1999 the building was 100%vacant.
' 11. Local Employment: What actions will you take to recruit employees from among
residents of the ETA?
' The owner of the Bioengineering Group is currently involved in community activities to
learn of and update local resources and to identify possible job candidates. The firm
' will maintain communication with local agencies and organizations, including Salem
High School and college contacts. The firm will rely on local newspapers as well as
Internet and Boston area employment resources.
' The Bioengineering Group has the intention and capacity to achieve the anticipated level
' of new permanent full-time jobs for residents of the municipality/Economic Target Area.
The owner is a Salem resident and intends to recruit intensively from the ETA to fill new
permanent full-time jobs. The firm recently leased a 5,000 square foot facility at 18
' Commercial Street to meet the needs of this steadily growing company. It is committed
to expanding the business and adding ETA residents to its payroll. The firm has already
hired at least two full-time employees who are Salem residents (Operations Manager and
' Restoration Horticulturist).
The market for bioengineering design and applications has grown quickly in the United
' States and internationally and The Bioengineering Group has been successful at obtaining
major contracts for such work. Revenues and volume of work have been increasing and
are anticipated to continue,thus furthering the need for additional personnel. The
' Bioengineering Group, Inc. is in the unique position of offering consulting services in
new and innovative environmental technologies. The company has a four year client
' base, including new and repeat business in government and public projects, as well as
residential, smaller projects. The company is willing and anxious to search the local
market for promising employees for technical,management and administrative positions.
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' 12. Affirmative Action Statement: Does the business have an Affirmative
Action/Equal Employment Opportunity Plan or Statement? ✓ Yes ❑ No
' If yes,please attach a copy.
' Please see attached.
If no, describe the business' hiring policies and practices.
' 13. Agreement between the Business and Area Banks: Describe briefly the
' business' local banking relationship(s),if any. Does the institution with which the
business banks participate in the Massachusetts Capital Access Program, which is
designed to commit a portion of the business' deposits to fund loans to local businesses?
The Bioengineering Group,Inc. banks with Fleet Bank(Salem Branch) and Danvers
Savings Bank,who participate in the Massachusetts Capital Access Program.
14. Economic benefits of project certification: Provide a description of the
economic benefits that are anticipated for the business and the project, if the project is
certified. Also, provide any information, documentation or studies demonstrating any
additional benefits (i.e. reduction of blight,reuse of abandoned buildings,clean up of
' contaminated property,job training,provision of day care, any contributions to the
community, etc.) likely to accrue to the area as a result of Certified Project designation.
' Please describe:
The Bioengineering Group,Inc. is engaged in a consistent year-round business activity
' that emphasizes skilled and highly skilled employment,both elements of which help to
create economic balance here in Salem where it has often been skewed toward the service
and retail sectors. As The Bioengineering Group enlarges its staff of professionals,
' technical and skilled workers,the firm encourages not only their contribution to the
company and the City of Salem,but also, encourages employees to appreciate and settle
' in Salem and surrounding communities.
The company and its founder and President,Wendi Goldsmith, are interested in offering
' expertise to the community in the form of ecological restoration to promote a coherent
and positive identity for the multi-purpose corridor along the North River in Salem. Itis
the firm's intent to encourage the City and active businesses in the area to collaborate in
carving out a clearer identity that could play a small yet significant part in adding to the
enrichment of the already recognized historical and cultural identities in Salem.
' The Bioengineering Group's building is located in a section of Salem that in undergoing
revitalization in the form of public park improvements (North River Canal park),new
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' businesses and infrastructure improvements such as the Bridge Street improvements and
the proposed Bridge Street bypass road. Certified Project designation will permit River
Wharf Realty Trust to assist this company's growth and contribute to the overall
economic welfare of Salem. Additionally,the location of this prosperous and healthy
company will further attract other viable economic uses.
' Economic benefits to applicant
' • Improvements to the building and property and expansion of The Bioengineering
Group's workforce are economically feasible with the receipt of investment tax
credits and property tax benefits
' • River Wharf Realty Trust will receive approximately $4,257 in local property tax
benefits over five years
• The rehabilitation of the facility will entitle River Wharf Realty Trust to state 5%
' investment tax credits
Economic benefits to the City of Salem
' • The new location and expansion of The Bioengineering Group could provide an
' incentive and an anchor for the development of the Business Park along the North
River Corridor. Additional improvement of the Corridor would add to the attraction
of the newly constructed park area, and could incorporate the historical and cultural
' identities of Salem in making the area more attractive to tourists/visitors.
• The quality of the neighborhood would be improved and enhanced by recognizing the
need for improving the properties and integrating the utilitarian role of the business
' park district.
• As the company expands its work force,the need for professionals will increase, and
with that, expectations for increases in property investment and taxes.
' The company is expected to add fifteen new jobs in Salem.
• Tax revenues to the City will be increased because (1)the Commercial Street building
will now be occupied by a successful business that contributes to the job market and
' use of sales and services from the community as a whole; and(2)improvements to
the building and property will result in an increased value of the property.
' Special Requirements for Real Estate Projects
' 1. Will the business own or lease/rent the facility? ❑ Own ✓Lease/Rent
' If leasing/renting,please identify the developer/landlord, and state who will be the
taxpayer of record for the purpose of paying local real estate taxes.
' The Landlord is River Wharf Realty Trust. The property was purchased by The
Bioengineering Group,Inc. in the form of its holding company,River Wharf Realty
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Trust. As a matter of standard business practice, The Bioengineering Group,Inc., leases
the building from the Realty Trust.
If owning,will the business fully occupy the space? ❑ Yes ❑No
tIf no, does the business intend to lease/rent the remaining space?
The space will be occupied by The Bioengineering Group and a tenant new to Salem:
' Summa, Inc., distributors of graphic equipment.
2. Describe how the various tax benefits and other economic incentives that will result from
Certified Project designation will be allocated among the business(e's) developing the
project(i.e. a developer or landlord) and the business(e's) intending to purchase, lease or
rent space at the facility (i.e.tenant or tenants).
' As River Wharf Realty Trust is the holding company of The Bioengineering Group, Inc.,
the tax relief received from Certified Project designation will assist The Bioengineering
Group,Inc. in its renovation plans for the building.
' Supplemental Information
1. Name(s) of business(e's) intending to take advantage of state tax
' incentives:
' Business Name: River Wharf Realty Trust
Federal Employer ID: 04-6895020
Address: 18 Commercial Street
' Salem MA 01970
Phone: (978)740-0096
Fax: (978) 740-0097
' Contact Person: Wendi Goldsmith/Grace Spence
' Type of Organization(check that which applies):
Corporation: ❑ For profit; S Corp.; ❑Non-Profit
' ✓ Business Trust
❑ Partnership: ❑ General Partnership; ❑ Limited Partnership
❑ Individual
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' Level of interest: (Indicate the benefits the company seeks)
' ✓ 5%Investment Tax Credit
❑ 10%Abandoned Building Tax Deduction(if applicable)
✓ Local Real Estate Tax Incentive Beneficiary
2. Names and Addresses of Organization (please respond according to type)
' Realty Trust:
' Robert G. Solomon,Trustee
Wendi Goldsmith,Beneficiary
' Corporation:
Wendi Goldsmith,President
' 3. Please provide names, addresses, phone numbers and contact persons
for organizations which may own or control or be affiliated with the
applicant organization:
' Robert G. Solomon
7 Mall Street
' Salem,MA 01970
(978) 740-0096
' Wendi Goldsmith
7 Mall Street
Salem,MA 01970
(978)740-0096
4. Certificate of Good Standing:
' A Certificate of Good Standing for The Bioengineering Group,Inc. is attached with this
application.
' mccAtitWorms\cpap.wpd
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Commonwealth of Massachusetts Department of Revenue
Taxpayer Service Division
Certifieale Unit
' PO Boz 7066 September 30, 1999
Boston.MA 02204
' BIOENGINEERING GROUP, INC.
' 53 MASON STREET
SALEM, MA 01970
CERTIFICATE OF GOOD STANDING
' It is hereby certified by the Commissioner of Revenue of the Commonwealth of Massachusetts
as of the above date, that the above named corporation is a domestic corporation organized
in Massachusetts on January 16, 1996 and that said corporation is in good standing with
respect to any and all returns due and taxes payable to the Commonwealth under General
' Laws, Chapter 62C, and the statutes referred to in Section 2 thereof.
' This certificate does not certify the corporation's standing as to unemployment insurance taxes
under G.L.Ch. 151a or taxes under any other provisons or law.
1 No. 53653
1
By
Assistant Chief,
' Automated Systems Bureau
' THIS IS NOT A WAIVER OF LIEN ISSUED UNDER GENERAL LAWS, CHAPTER 62C, SECTION 52,
AND CANNOT BE USED FOR SUCH PURPOSE.
1
5066 - 69976
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' Frederick P-Laskey ®o wm �wwr
Commissioner
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' THE BIOENGINEERING GROUP, INC.
' Affirmative Action Employment Program
January 1996
EEO POLICY STATEMENT
The Bioengineering Group, Inc. ('TBG"), its officers, and managers are
fully committed to equal employment opportunity and to the implementation of
an effective affirmative action employment program without regard to race, sex,
' religion, color, national origin, age, sexual orientation, or handicap. It is TBG's
policy to provide equal opportunity in employment for all persons and to prohibit
discrimination in all aspects of its personnel policies, program practices and
' operations, and in all of its working conditions and relationships with employees
and applicants for employment.
All TBG employees and managers are responsible for supporting TBG's
' policy on equal employment opportunity and for assuring that the workplace is
free from discrimination. As evidence of its commitment to affirmative action in
employment, TBG has made equal employment opportunity a critical element in
' its managerial performance appraisal system. Annual evaluation will be made
to measure program accomplishments in affirmative action, and measures will
be taken to remedy imbalances or lack of progress.
' 2. PLAN FOR PREVENTION OF SEXUAL HARASSMENT
' The Bioengineering Group, Inc. is committed to providing a work
environment free of sexual harassment. TBG routinely informs employees that
such harassment is a violation of Title VII of the Civil Rights Act, and that TBG
' prohibits sexual harassment of its employees in any form. Reports of
allegations will be treated with discretion, thoroughly investigated, and acted
upon to eliminate such harassment and to prevent recurrences.
' 3. STATEMENT OF ADEQUATE MONITORING/EVALUATION SYSTEM
In order to permit ongoing assessment of the TBG affirmative action
employment program, a copy of all personnel actions are given to the TBG
Director of Human Resources as they occur. This allows for the analysis of
' hiring and promotions. Since the TBG work force consists of fewer than 200
employees, hiring and promotion can be adequately monitored without a
computerized system.
' In addition to the ongoing assessment of personnel data and trends, an
effective, bias-free system of auditing is essential to any affirmative employment
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' 2Affirmative Action Employment Program
January 1996
Page 2
' program. Accordingly, on an annual basis, the following will be reviewed by the
Director of Human Resources:
- Effectiveness of barrier elimination strategies.
' - Selection process of new hires during year.
Annual findings will be presented in writing to TBG management with
' recommendations for correcting problem areas.
4. PROGRAM ANALYSES - RECRUITMENT AND HIRING
' It is TBG's policy to promote from within whenever possible. When this
is not possible, professional, administrative, technical, and clerical positions are
advertised in several local newspapers in the recruiting area in an attempt to
' reach a diverse group of job candidates.
As provided by the U.S. Equal Employment Opportunity Commission
' Management Directive 714 (EEO-MD-714), Section 13a(5), numerical objectives
(goals) are optional because of TBG's limited employment size. Due to the
dynamic nature of TBG's business and the market segment in which it operates,
' such objectives would be restrictive to its ability to operate cost-effectively and
at the level of expertise for which it is known.
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RESOLUTION
APPROVING CERTIFIED PROJECT APPLICATION OF
RIVER WHARF REALTY TRUST
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WHEREAS, River Wharf Realty Trust has applied for designation as a Certified Project under
the Massachusetts Economic Development Incentive Program created by Chapter
23A of Massachusetts General laws;
iWHEREAS, River Wharf Realty Trust meets the minimum standards of the Economic
Development Incentive Program and the local economic development goals and
criteria established as part of the documents creating the Beverly&Salem
Regional Economic Target Area and the Salem Economic Opportunity Area;
' WHEREAS, the proposed certified project is located at 18 Commercial Street,within the
boundaries of the Salem Economic Opportunity Area. The legal description is as
follows:
1 The land in said Salem with the buildings thereon, if any,bounded and described
as follows:
Parcel No. 1
' Beginning at a point on the northerly side of Commercial Street at the
SOUTHWESTERLY comer of land formerly of George F. Lord,thence running
in a NORTHERLY direction along the Westerly property line of the property now
or formerly of George F. Lord, a distance of eighty-nine and 85/100(89.85) feet
to a point;thence turning and running in a
' NORTHWESTERLY direction a distance of fifty and 05/100 (50.05) feet along
land now or formerly of H.P. Hood and Sons, Inc.; thence turning and running in
a SOUTHERLY direction along land now or formerly of the City of Salem,a
distance of ninety-two and 57/100 (92.57) feet;thence turning and running in an
EASTERLY direction along the Northerly street line of Commercial Street, a
' distance of fifty(50)feet to the point of beginning.
t Containing 4,560 square feet of land, as shown on a plan filed with the Essex
South District Registry of Deeds entitled"Land of City of Salem,Rear of North
Street, Salem,Mass., May 1955, Revised October 1955 —Edgar W.Nickerson,
' City Engineer" in Book 4809, Page 500.
' Parcel No. 2
The land in said Salem with the buildings thereon, if any, situated on the North
side of the North River Canal and bounded and described as follows:
' Beginning at the SOUTHEASTERLY corner of said lot on the Northwesterly side
of a proposed road the same point being three hundred and eighty-eight and
44/100(388.44) feet Southwesterly from North Street;thence running
SOUTHWESTERLY by the Northwesterly street line of said proposed road
seventy(70)feet to other land now of formerly of the City of Salem;thence
turning and running NORTHWESTERLY by said other land now or formerly of
the City of Salem, eighty-nine and 85/100 (89.85)feet to land now or formerly of
H.P.Hood and Sons, Inc.;thence turning and running EASTERLY by said land
now or formerly of H.P. Hood and Sons,Inc., seventy and 12/100(70.12) feet to
land now or formerly of Cook; thence turning and running SOUTHEASTERLY
by said land now or formerly of Cook, eighty-six and 06/100 (86.06) feet to the
point begun at.
Containing 6,156 square feet of land and being shown on a plan entitled"Land of
the City of Salem,rear of North Street May 1955, Revised October 1955,Edgar
W.Nickerson, City Engineer" and hereinbefore referred to.
' For title,reference is made to Deed of Catharyn H. Lord,dated May 14, 1965,and
recorded with the Essex South District Registry of Deeds in Book 5267,Page 342.
WHEREAS, the City of Salem has agreed to offer River Wharf Realty Trust a Tax
Increment Financing Agreement;
' WHEREAS, The Bioengineering Group,Inc.,having leased the building on the property of its
holding company, River Wharf Realty Trust,will invest approximately $240,000
to renovate a property at 18 Commercial Street into professional offices, an
investment which creates approximately 15 new,permanent jobs for residents of
the Beverly & Salem Regional Economic Target Area.
WHEREAS, the renovation of the property at 18 Commercial Street will substantially improve
the aesthetic appearance of the property and reduce blight in one of Salem's
business districts;
NOW THEREFORE BE IT RESOLVED
that the Salem City Council approves the Certified Project application of River
Realty Trus designating this project as a certified project for a period of
Wharf Re ty t, gn g P J
five years, and forwards said application for certification to the Massachusetts
Economic Assistance Coordinating Council for its approval and endorsement.
In City Council March 30, 2000
REferred to the Committee on Administration and Finance
' In City Council April 13, 2000
Adopted by Roll Call Vote of 9 Yeas 0 Nays 2 Absent
Approved by the Mayor on April 24, 2000
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' ATTEST: DEBORAH E. BURRINSBAW
CITY CLERK
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Adopted this 13th day of April, 2000,by the Salem City Council.
'I
Stanley I Us z,Jr., yor
' Dat 2
' Attest:
Deborah E. Burkinshaw, City Clerk
' SEAL
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City of Salem
Yea and Nay Vote of City Council
Upon the Question of
' Yea Nay Pres. Absent
Date 8 2000
' Laura A.DeToma
Kimberley L. Driscoll
' Regina R Flynn
' Thomas H. Furey
' Sarah hL Hayes
Scott A.LaCava
' Joao R Lovely
Joseph A. O'Keefe
Leonard F. O'Leary
Arthur C. Sarzent
' I Kevin R Harvey, Pres. v
Totals
' A T UE COPY ATTEST
CITY CLERK
' SALEM, MASS. r` i
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' Massachusetts Economic Development Incentive Program
Tax Increment Financing Plan
I. Location
1 A. Economic Opportunity Area (EOA): Salem EOA
' B. Municipality: City of Salem
' C. Tax Increment Financing (TIF) Zone:
Attached are:
' map of the ETA
• map showing the general location of the proposed private project
• parcel by parcel map with property lines and the outline of each building,
' infrastructure improvements, all thoroughfare, public rights of way and easements
• zoning map
' Common description of TIF Zone:
' The proposed TIF Zone is located at 18 Commercial Street in the Salem Economic
Opportunity Area(EOA). The tax parcel is Map 26,Lot 51.
' Legal description of TIF Zone:
The land in said Salem with the buildings thereon,if any,bounded and described as
follows:
Parcel No. 1
Beginning at a point on the northerly side of Commercial Street at the
' SOUTHWESTERLY comer of land formerly of George F. Lord,thence running in a
NORTHERLY direction along the Westerly property line of the property now or formerly
of George F. Lord, a distance of eighty-nine and 85/100 (89.85) feet to a point;thence
' turning and running in a
NORTHWESTERLY direction a distance of fifty and 05/100 (50.05) feet along land now
' or formerly of H.P. Hood and Sons,Inc.;thence turning and running in a SOUTHERLY
direction along land now or formerly of the City of Salem, a distance of ninety-two and
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57/100(92.57) feet; thence turning and running in an EASTERLY direction along the
Northerly street line of Commercial Street,a distance of fifty(50)feet to the point of
beginning.
Containing 4,560 square feet of land, as shown on a plan filed with the Essex South
District Registry of Deeds entitled"Land of City of Salem,Rear of North Street, Salem,
Mass., May 1955,Revised October 1955 —Edgar W.Nickerson, City Engineer"in Book
4809,Page 500.
' Parcel No. 2
' The land in said Salem with the buildings thereon,if any, situated on the North side of the
North River Canal and bounded and described as follows:
' Beginning at the SOUTHEASTERLY corner of said lot on the Northwesterly side of a
proposed road the same point being three hundred and eighty-eight and 44/100 (388.44)
feet Southwesterly from North Street;thence running
' SOUTHWESTERLY by the Northwesterly street line of said proposed road seventy (70)
feet to other land now of formerly of the City of Salem;thence turning and running
' NORTHWESTERLY by said other land now or formerly of the City of Salem,eighty-
nine and 85/100 (89.85) feet to land now or formerly of H.P. Hood and Sons,Inc.;thence
1 turning and running EASTERLY by said land now or formerly of H.P. Hood and Sons,
Inc., seventy and 12/100 (70.12)feet to land now or formerly of Cook;thence turning and
running SOUTHEASTERLY by said land now or formerly of Cook,eighty-six and
' 06/100 (86.06)feet to the point begun at.
Containing 6,156 square feet of land and being shown on a plan entitled"Land of the
City of Salem,rear of North Street May 1955,Revised October 1955,Edgar W.
Nickerson, City Engineer"and hereinbefore referred to.
' For title,reference is made to Deed of Catharyn H.Lord, dated May 14, 1965 and
recorded with the Essex South District Registry of Deeds in Book 5267,Page 342.
' D. Narrative Description of TIF Zone:
' Needs, Problems and Opportunities:
Designation of this TIF Zone meets the needs of, solves problems for and creates
' opportunities for River Wharf Realty Trust and the City of Salem.
Solving problems and meeting the needs of River Wharf Realty Trust:
River Wharf Realty Trust,holding company for The Bioengineering Group,Inc.,
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purchased the land and building at 18 Commercial on June 30, 1999 and leased it to The
Bioengineering Group,Inc.,a small consulting firm that made a sizable investment in
Salem in locating at 18 Commercial Street and undertaking the extensive renovations to
' the property. The building or portions of the building were unused for some time prior
to the purchase,and the building needed to be transformed into professional office space
' from what was essentially an open warehouse.
In order for The Bioengineering Group,Inc.to remain in Salem, it recognized it would
be necessary to raise funds to convert the building into a viable business location. With
that in mind,the company set out to investigate sources for funding and economic
assistance. With the recommendation of legal and financial advisors, The
' Bioengineering Group formed River Wharf Realty Trust for the purchase of the
property. The Bioengineering Group,Inc. recognized that the Tax Increment Financing
Certified Project designation,would be especially helpful in assisting the company in its
' early years of growth and expansion.
Creating Opportunity for River Wharf Realty Trust.-
Assistance
rust:Assistance from the City of Salem and the Massachusetts Office of Business
' Development through Certified Project designation will create the opportunity for River
Wharf Realty Trust to assist The Bioengineering Group to grow its business in Salem.
Although the company has already demonstrated successful growth in the environmental
technology consulting field,the company is still small and values the opportunity to stay
in Salem where it has already discovered local need for its services.
' This project provides the Bioengineering Group,Inc. with the ideal opportunity to
jumpstart economic development on the Commercial Street corridor and to be the fust of
many anticipated businesses to create a business park in this area that is fronting on the
' recently established North River Canal Park. The project is also anticipated to employ
15 permanent,net, new jobs in the ETA.
' Solving problems and meeting the needs of the City of Salem:
Designation of the TIF Zone and approval of this TIF Plan will help River Wharf Realty
' Trust, which will expand the tax base and increase the supply of healthy, growing
businesses in the City of Salem. The establishment of a professional firm such as The
' Bioengineering Group in this business corridor will help to spur further economic
growth, as other firms are attracted to this improved business district.
' The City has undertaken several initiatives in this area to boost economic development
and aesthetic appearances. The existence of the North River Canal Park provides a very
attractive setting in which to locate a business. The proposed Bridge Street By-pass,
' which is located nearby to this development, will improve travel in Salem. Additionally,
the nearby former Parker Brothers site is slated for redevelopment as a high end
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' residential and mixed use development,which will greatly improve this section of
Salem.
' Creating Opportunityfor the City of Salem:
Certified Project designation permits River Wharf Realty Trust to assist The
Bioengineering Group to remain in Salem where it can continue dialogue with
community representatives to learn ways that it can service the local area with
l ' environmental solutions while helping to bring employment opportunities to the City as
well. The City of Salem will benefit by the presence of a stable company that improves
the appearance of the Commercial Street area, adds permanent jobs and will be a vital
' component of an overall economic development revitalization.
E. Property owners within the proposed TIF Zone:
The property owner is:
' River Wharf Realty Trust(holding company for The Bioengineering Group,Inc.)
Robert G. Solomon,Trustee
1 II. Time
' The TIF Plan and TIF Zone described here will be in effect for a period of five years.
' M. TIF Zone & Economic Development
A. Economic Opportunities and Economic Benefits to the
' Community: Approval of the proposed TIF Zone will create the
following economic development opportunities and benefits:
' Creates jobs: 15 net,new permanent jobs. The Bioengineering Group will expand
its work force from the present thirteen employees to an additional fifteen
' technical,administrative and management positions over the life of the TIF. With
that,there are expectations for increases in property investment and tax revenues
to the City.
' Generates addtional tax revenue through the life of the TIF and beyond: see
attached spreadsheet entitled "5 Year Tax Increment Financing Plan". Tax
revenues to the City will be increased because(1)the Commercial Street building
' will now be occupied by running, successful businesses contributing to the job
market and use of sales and services from the community as a whole; and(2)
improvements to the building and property will have occurred.
' Improves appearance of vacant property through renovation. The quality of the
neighborhood would be improved and enhanced by recognizing the need for
1 4
' improving the properties and integrating the utilitarian role of the business park
district.
• The new location and expansion of The Bioengineering Group could provide an
' incentive and an anchor for the development of the Business Park along the North
River Corridor. Additional improvement of the Corridor would add to the
' attraction of the newly constructed park,area, and could incorporate the historical
and cultural identities of Salem in making the area more attractive to
tourists/visitors.
' B. Proposed and Potential Land Uses: (analyze how the land uses are
appropriate for anticipated economic development)
The property will be used for the professional offices of The Bioengineering Group,Inc.
In addition to the building improvements,plans are being made to include an attractive
' greenhouse where the company will be able to grow and demonstrate the use of wetland
plants appropriate to the New England area. It is anticipated that the improvements and
greenhouse will greatly enhance the restoration to the area already initiated by the City
' and contribute to ongoing economic development initiatives.
' C. Zoning in the TIF Zone: The TIF Zone is located in a Business Park
Development district.
D. Hazardous Waste: (identify any parcels,public or private, in zone which are
confirmed hazardous waste disposal sites, in accordance with chapter 21E,MGL.
Describe any public or private site remediation activities and any reuse plans)
' Not Applicable
1 IV. TIF Zone Projects
' A. Planned Private Project:
The Bioengineering Group,Inc. is renovating a 5,000 square foot warehouse at 18
Commercial Street consisting of one floor and a mezzanine into its professional offices.
' B. Provide Documentary evidence of the level of the developer's
commitment to the proposed and required construction in the TIF
project:
The Bioengineering Group,Inc. has already paid legal and professional fees related to the
t appraisal,2 1 E assessment,building inspection, and closing costs associated with the
purchase of the property and building. Wendi Goldsmith, owner and president of the
' 5
' company, also contributed personally towards the down payment. Additionally,the
company has engaged the services of an architect, general contractor and roofing,
electrical, plumbing and HVAC contractors for the development of this project.
' C. Budget for Project:
II ' The costs of completing the project are as follows:
E rae�rre u .
' Architecture Fees 3,600
ASTM Screen/Limited Assessment 500
Report
Roofing 30,775
' General Construction 56,500
Plumbing 8,000
' Electrical Work 35,500
Heating and Ductwork 20,000
Air Conditioning 8,600
' Lighting 2,850
Interior Finishes 25,000
Telephone/Voicemail System 12,500
' Building/Company Sign 900
Security System 2,700
' Greenhouse 20,000
Misc. Services: blueprints, permits, 6,500
' waste removal,etc.
Misc. Supplies: lumber,paint, 6,000
hardware, ladder rental,etc.
Total Improvement Costs $2399925
' 6
D. Relevant business plans:
' Time schedule for development:
Scheduled construction completion: Fall 2000
' Expected increases in job creation:
' 15 permanent professional,technical,management, skilled and unskilled jobs
Estimates of tax revenue based upon increased valuation of parcel:
' Please see attached spreadsheet entitled"5 Year Tax Increment Financing Plan"
' E. Participation in other federal, state and local economic
development programs and initiatives:
' N/A
' F. Planned Public Projects:
' N/A
V. Financing for TIF Zone Projects
tA. Anticipated Financing for Private Projects:
Source: Amount:
Danvers Savings Bank—SBA Loan/Mortgage $342,000
' Danvers Savings Bank=Line of Credit 100,000
City of Salem Note 50,000
' Danvers Savings Bank Loan 90,000
Investment from W. Goldsmith 55,000
Total $637,000
' B. Anticipated Financing for Public Projects:
' N/A
' C. Detailed Projection of Costs of Public Construction:
N/A
7
1
1
D. Will Betterments be used to finance any public-private projects,
now or within the proposed life of the TIF Plan?
' N/A
' E. If Betterments or Special Assessments are a part of the TIF Plan:
N/A
F. Describe how private projects will be financed:
1
' Evidence of private financing commitments:
The Bioengineering Group has received approvals and funds for the financing of
' this project from Danvers Savings Bank and the City of Salem.
' VI. TAX INCREMENT FINANCING
' A. Authorization to use TIF: The attached City Council resolution dated
March 9, 1995 authorizes the City of Salem to use TIF in the Salem EOA. Also
attached is a City Council Resolution approving the TIF Plan for River Wharf
' Realty Trust on April 18, 2000.
B. Amount of proposed tax increment exemptions from property
' taxes: As the attached spreadsheet shows,the Chairman of Salem's Board of
Assessors estimates that property tax benefits will total approximately $4,257
' over five years. Also, see the description of the proposed TIF Plan in part D of
this section.
Maximum percentage of public project costs that can be
recovered through betterments or special assessments:
' N/A
' D. TIF exemption from property taxes:
As the attached spreadsheet shows, the City estimates the tax benefits to total
' approximately $4,257 over 5 years.
' 8
' The exemption plan works as follows:
' Year River Wharf Realty Trust Pays:
1 75% of the increment,plus the base tax bill
' 2 85% of the increment, plus the base tax bill
3 95% of the increment,plus the base tax bill
4 95% of the increment,plus the base tax bill
' 5 95%of the increment, plus the base tax bill
6 . 100%of the increment,plus the base tax bill
' The effective date of tax increment exemption is July 1, 2000 (Fiscal Year 2001).
The property becomes eligible for the tax increment exemption on the July first
following the date on which the EACC approves the plan.
' Term of the exemption: 5 years
' VII. Approval of TIF projects
' TIF projects are approved by the Salem City Council. The Mayor and his staff are
responsible for negotiating TIF Plans and, after Council approval, executing those plans.
' Evidence of local approvals of the proposed TIF Zone and TIF Plan is provided here in
the form of a resolution authorizing a TIF agreement passed by the Salem City Council
' on April 18, 2000.
' \MC\TIF\Bioengineering\TIFPLAN.doc
1
9
RIVER WHARF REALTY TRUST
5-YEAR TAX INCREMENT FINANCING PLAN
Base Value FY 00 $205,500 Tax Rate $31.65
Value After Building Renovation $450,000
Increment in Value $244,500 Base Year FY 2000
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...». Y!6 ,""> '%E$5D?TIC:.. y'ibc. ^z. .:«.k• g•.a`;. .s.,�. . <a.:: .�.
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..E!.... • ....! a:. .n....n. Sov !........ .. ::..O..t>yvt�,k._Y..eJ>:!et>p.9?"3:... 'e?: a:<:'.�M. U4,n�.< e �N �.. ,y.?'Re...��»..
r>�::..::.�:e:?:.xas�•r$s�9«ss�<1f.n.,.>.,:<:a;::?.>>;.,�ku.�,:.::.:. $»».«<:<.�.n-,a,.�::.e:.:>;s. :>::.a� :.
BASE $205,500 $31.65 $6,504 0% $6,504 $0 $6,504 $0
1 $450,000 $31.65 $14,243 75% $6,504 $5,804 $12,308 $1,935
2 $450,000 $31.65 $14,243 85% $6,504 $6,578 $13,082 $1,161
3 $450,000 $31.65 $14,243 95% $6,504 $7,352 $13,856 $387
4 $450,000 $31.65 $14,243 95% $6,504 $7,352 $13,856 $387
5 $450,000 $31.65 $14,243 95% $6,504 $7,352 $13,856 $387
6 $450,000 $31.65 $14,243 100% $6,504 $7,738 $14,243 $0
TOTALS $91,962 $87,885 $4,257
NOTES
*TIF % = Percent of increment that is taxed
**Taxes Paid Each Year= Base Tax Bill plus Taxes on Increment
***Tax Benefit Each Year= Benefit to River Wharf Realty Trust
Base Value consists of FY2000 Assessed value of 18 Commercial Street
' RESOLUTION
AUTHORIZING THE USE OF TAX INCREMENT FINANCING IN THE
SALEM ECONOMIC OPPORTUNITY AREA
WHEREAS,the City of Salem is part of the area designated the Beverly & Salem Regional
Economic Target Area and the Salem Economic Opportunity Area;
tWHEREAS,there is strong support for economic development and the use of Tax Increment
Financing as an economic development tool to create jobs and encourage business
' expansion and relocation to the City of Salem;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Salem that:
' (1) Tax Increment Financing may be used as a tool to encourage economic
development within the Salem Economic Opportunity Area.
' (2) The Mayor is hereby authorized to execute and implement Tax Increment
' Financing agreements.
Adopted this day of �4cll( 19_&�_by the Salem
' City Council ata regular City Council meeting with a quorum present.
Neil J.Har i gton,May6r Date
' ATTEST:
' Deborah E. Burkinshaw,City Clerk
SEAL
1
RESOLUTION
AUTHORIZING A TAX INCREMENT FINANCING AGREEMENT
' For River Wharf Realty Trust
' WHEREAS, the City of Salem is part of the area designated the Beverly & Salem Regional
Economic Target Area and the Salem Economic Opportunity Area;
' WHEREAS, the Mayor of the City of Salem has prepared a Tax Increment Financing
Agreement in accordance of Chapter 40 and 751 CMR 11.00;
' WHEREAS, there is strong support for economic development and the use of Tax Increment
Financing as an economic development tool to encourage business expansion in
and relocation to the City of Salem;
' WHEREAS, there is strong support for using Tax Increment Financing to encourage the
renovation of 18 Commercial Street,the property owned by River Wharf Realty
' Trust and leased to The Bioengineering Group,Inc.;
WHEREAS, this property is located in the Salem Economic Opportunity Area;
' NOW THEREFORE BE IT RESOLVED by the Salem City Council that:
t (1) The Tax Increment Financing Agreement be adopted as it has been substantially
submitted to the City Council. A copy of said Tax Increment Financing Agreement is
attached as Exhibit A,and made part of this Resolution.
(2) The area to be designated as a Tax Increment Financing Zone is:
' The land in said Salem with the buildings thereon, if any,bounded and described as
follows:
Parcel No. 1
' Beginning at a point on the northerly side of Commercial Street at the
SOUTHWESTERLY comer of land formerly of George F. Lord,thence running in a
' NORTHERLY direction along the Westerly property line of the property now or formerly
of George F. Lord, a distance of eighty-nine and 85/100 (89.85) feet to a point; thence
turning and running in a
' NORTHWESTERLY direction a distance of fifty and 05/100 (50.05) feet along land now
' or formerly of H.P. Hood and Sons,Inc.;thence turning and running in a SOUTHERLY
direction along land now or formerly of the City of Salem, a distance of ninety-two and
57/100(92.57) feet; thence turning and running in an EASTERLY direction along the
Northerly street line of Commercial Street, a distance of fifty(50) feet to the point of
beginning.
Containing 4,560 square feet of land, as shown on a plan filed with the Essex South
District Registry of Deeds entitled"Land of City of Salem, Rear of North Street, Salem,
i ' Mass.,May 1955,Revised October 1955—Edgar W. Nickerson, City Engineer" in Book
4809,Page 500.
' Parcel No. 2
1 The land in said Salem with the buildings thereon, if any, situated on the North side of the
North River Canal and bounded and described as follows:
' Beginning at the SOUTHEASTERLY corner of said lot on the Northwesterly side of a
proposed road the same point being three hundred and eighty-eight and 44/100(388.44)
feet Southwesterly from North Street;thence running
' SOUTHWESTERLY by the Northwesterly street line of said proposed road seventy(70)
feet to other land now of formerly of the City of Salem;thence turning and running
' NORTHWESTERLY by said other land now or formerly of the City of Salem,eighty-
nine and 85/100 (89.85) feet to land now or formerly of H.P. Hood and Sons, Inc.;thence
turning and running EASTERLY by said land now or formerly of H.P. Hood and Sons,
! Inc., seventy and 12/100 (70.12)feet to land now or formerly of Cook; thence turning and
running SOUTHEASTERLY by said land now or formerly of Cook, eighty-six and
06/100 (86.06)feet to the point begun at.
' Containing 6,156 square feet of land and being shown on a plan entitled"Land of the
City of Salem,rear of North Street May 1955, Revised October 1955,Edgar W.
Nickerson, City Engineer" and hereinbefore referred to.
Fnr title reference is mArle to Deed of Cathanrn T4. Lord, dated May 14, 1965 Anti
recorded with the Essex South District Registry of Deeds in Book 5267, Page 342.
t (3) A map of the Tax Increment Financing Zone is hereby attached as Exhibit B and made
part of this Resolution.
(4) The Tax Increment Financing Agreement shall be binding on all subsequent owners of
the property in the Tax Increment Financing Zone. The City of Salem reserves the right
to review and renegotiate the Tax Increment Financing Agreement if the business activity
' ceases to be fully operational during the life of the Tax Increment Financing Agreement,
as specified in the Tax Increment Financing Agreement.
(5) A copy of the adopted Tax Increment Financing Agreement shall be forwarded to the
1
In City Council March 30, 2000
1 Referred to the Committee on Administration and Finance
In City Council April 13, 2000
Adopted by Roll Call Vote of 9 Yeas 0 Nays 2 Absent
1 Approved by the Mayor on April 24, 2000
1
1 Massachusetts Economic Assistance Coordinating Council for its approval.
(6) The effective date of the Tax Increment Financing Agreement shall be July 1, 2000
1 (Fiscal Year 2001),whichever is later.
1 (7) The Mayor is hereby authorized to execute and implement the Tax Increment Financing
Agreement.
1 Adopted this 13th day of April 2000 by the Salem City
Council at a regular City Council meeting with a quorum present.
1
Z�
1 Stanley J.UsAti&4 Jr.,Mayor Dat
1 ' A
1 Deborah E.Burkinshaw, City C erk
iSEAL
1 �
1 .
1 �
1
1 �
1 '
L1
City of Salem
1 Yea and Nay Vote of City Council
/Upon the Question of
v
Yea Nay Pres. Absent
Date 2000
1 Laura A. DeToma
1 Kimberley L. Driscoll
Regina R Flynn
1 Thomas H. Furey
1 Sarah M.Hayes
Scott A. LaCava
1 Joan B. Lovely
1 Joseph A. O'Keefe
Leonard F. O'Leary
Arthur C. Sargent
1 Kevin R Harvey,Pres.
Totals
1 r
2`Rr" 'C'OPY ATTEST `n
CITY CLERK
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' TAX INCREMENT FINANCING AGREEMENT
' CITY OF SALEM, MASSACHUSETTS
and
' RIVER WHARF REALTY TRUST
This agreement is made this/&-/"day of� 2000, by and between the CITY OF
' SALEM, a municipal corporation duly organized under the laws of the Commonwealth of
Massachusetts, having a principal place of business at City Hall, 93 Washington Street, Salem,
Massachusetts, 01970, acting through the Mayor, Stanley J. Usovicz, Jr., (hereinafter called "the
' CITY"), and RIVER WHARF REALTY TRUST, u/d/t dated June 30, 1999 (Recorded with
Essex South District Registry of Deeds in Book 15780, Page 107), with a principal place of
' business at 18 Commercial Street in Salem, Massachusetts, 01970 (hereinafter called "the
TRUST") . This Agreement will take effect as of July 1, 2000 (Fiscal Year 2001).
' WHEREAS, the TRUST has permitted The Bioengineering Group, Inc. (hereinafter called"the
LESSEE" of the TRUST)to renovate the building at 18 Commercial Street in
Salem as the professional offices for the LESSEE; and
' WHEREAS, the CITY is willing to grant tax concessions in return for guarantee of the
renovation of this distressed property and the creation of employment
' opportunities for local workers; and
WHEREAS, the Salem City Council resolved on November 9, 1995 to allow the use of Tax
' Increment Financing as a tool to encourage economic development within the
Salem Economic Opportunity Area; and
' WHEREAS, the Salem City Council resolved on April 13, 2000 to endorse the Tax
Increment Financing Plan negotiated by the CITY and the TRUST.
NOW, THEREFORE, in consideration of the mutual promises contained herein,the parties do
mutually agree as follows:
' A. THE TRUST'S OBLIGATIONS
' 1. The TRUST shall purchase and permit the LESSEE to renovate the property at 18
Commercial Street in Salem. "The FACILITY" as used herein means the building at 18
Commercial Street containing approximately 5,000 square feet plus site improvements.
' 2. During the life of this agreement, if the TRUST decides to sell the FACILITY or the
business or to otherwise transfer control of the FACILITY or business and/or operations
thereof,the TRUST shall give the CITY at least three months notice of said sale or
transfer. Said notice shall be given by certified mail, return receipt requested, to the
i ' Mayor, City Hall, 93 Washington Street, Salem, Massachusetts, 01970.
1
' 1
B. THE CITY'S OBLIGATIONS
' 1. The CITY shall grant a tax increment financing exemption to the TRUST in accordance
with Massachusetts General Laws, Chapter A, Section 3E, Chapter 40, Section 59, and
' Chapter 59, Section 5. Said exemption shall be granted on the improvements to the
FACILITY. Said exemption shall be valid for a period of five (5) years,beginning with
fiscal year 2001 (July 1, 2000) and ending with fiscal year 2006. During each year of
' this agreement,the TRUST will pay taxes based on the base value of the FACILITY and
on that portion of the value of the FACILITY which is not exempted under the
' agreement.
The base value is established by the Board of Assessors (the Board) and is the assessed
' value established for the most recent fiscal year immediately prior to the fiscal year in
which the property first becomes eligible for the tax increment exemption of the
FACILITY unless an abatement is approved by the Board.
The exemption schedule on the value of the FACILITY works as follows: For the first
year,the TRUST will pay the base tax bill and will pay taxes on 75% of the full value of
' improvements to the FACILITY. The full value of improvements to the FACILITY is
hereinafter called "the INCREMENT". In year two,the TRUST will pay tames on 85% of
the full value of the INCREMENT,plus the base tax bill. In year three,the TRUST will
' pay taxes on 95% of the full value of the INCREMENT, plus the base tax bill. In year
four, the TRUST will pay taxes on 95% of the INCREMENT,plus the base tax bill. In
year five, the TRUST will pay taxes on 95%of the INCREMENT, plus the base tax bill.
' In year six, the TRUST will pay taxes on the full value of the FACILITY.
' C. OTHER CONSIDERATIONS
' 1. This Tax Increment Financing Agreement shall be binding on all subsequent owners of
the property. The City of Salem reserves the right to review and renegotiate the Tax
Increment Financing Agreement if the business activity ceases to be fully operational
during the life of the Tax Increment Financing Agreement.
2. If the TRUST decides to expand the facility at any time during the life of the Tax
' Increment Financing Agreement,the CITY and the TRUST may renegotiate the Tax
Increment Financing Agreement to exempt all or part of the value of the expansion from
property taxes. The exact amount of that exemption will be determined at the time of
' expansion.
1
1
Executed as a sealed instrument on the day and year first above written.
CITY OF SALEM RIVER WHARF REALTY TRUST
J
Stanley J. Uso 'c Jr., Nrayr Robert G. S lomon, Trustee
'Notary Public
' My commission expires S/t //Osi
1
1
Beverly & Salem Regional
Economic Target Area
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CITY OF SALEM ZONING MAP
■ Bt - Business Neighborhood
■ B2-Business Highway
■ 84-Wholesale & Automative
P ' ■ B5- Central Development
i;. ❑ BPD- Business Park Development
® I - Industrial
■ R1 - Residential One Family
■ R2- Residential Two Family
■ R3- Residential Multi-Family
s-: ■ RC- Residential Conservation
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Nii ^` COVE uo+r+eua[ General Location Map
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�''� \� •. a .•�[+
;A ""'�•,�� `r ,'� COVE TIF Zone Indicated
�_
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' Attachments
Photographs
' Building Elevations
Floor Plans
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1 River Wharf Realty Trust
1 The Bioengineering Group, Inc.
1
1 Application for Certified Project Designation
Tax Increment Financing Plan
1
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Presented to:
1 Salem City Council
1 March 30, 2000
1
' The Massachusetts Economic Development Incentive
' Program
Certified Project Application
' Applicant Information
1. Name and address of business(es) submitting this application:
' Name: River Wharf Realty Trust Address: 18 Commercial Street
Salem, MA 01970
' Fiscal year end is: December 3 V
2. Name and address of project (if different from above):
' N/A
' 3. Location of ETA:
' Beverly & Salem Regional ETA
' 4. Location of EOA:
Salem
5. Authorization: I/We (print), Robert Solomon of River Wharf Realty
' Trust ,the entity applying for Certified Project designation,
hereby certify that the information within this application is true
and accurate, and reflects the project's intentions for job creation
' and investment. I understand that the information provided within
this application shall be binding for the duration of the project
certification.
3Z7
4Signature (Dat
Signature (Date)
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6. Nature and purpose of project
' River Wharf Realty Trust is seeking Certified Project designation to obtain property tax
relief for its recently purchased building and land at 18 Commercial Street. The
' Bioengineering Group,Inc., the business leasing the building located on the property, is
renovating the space to house its professional offices. River Wharf Realty Trust desires
Certified Project status to participate in a Tax Increment Financing agreement and to be
' able to assist The Bioengineering Group with its expansion plans.
River Wharf Realty Trust was formed as the holding company for The Bioengineering
' Group. When The Bioengineering Group began to explore the option of purchasing
property, its financial and legal advisors recommended that it create a holding company
in the form of a realty trust, a standard business practice. The Bioengineering Group,Inc.
' is committed to increasing its business and employment and to growing in Salem. The
Bioengineering Group's expectations and goals are to serve to jump-start development in
this neighborhood as the firm's expansion helps to catalyze other attractive and desirable
' elements to this area.
The Bioengineering Group was incorporated in January 1996 as a consulting company
' providing expertise in the use of vegetation for construction projects designed to optimize
environmental benefits, and provides a full range of services in the field of
' bioengineering for erosion control, water quality, and habitat restoration. The company
has been located in Salem since its inception, first at 53 Mason Street, and now at 18
Commercial Street, where it leases the building from its holding company,River Wharf
' Realty Trust, that purchased the land and building on June 30, 1999.
The Bioengineering Group, Inc. was founded by Wendi Goldsmith who continues to
' serve as the President and sole Director and Shareholder of the company. She has over
ten years of involvement in the ecological restoration and erosion control fields. Ms.
Goldsmith left her more recent position as,President of Bestmann Green Systems,Inc. in
' order to focus her energy on the establishment of a highly specialized consulting firm
offering services related to bioengineered erosion control treatments, stream restoration,
and wetlands creation. The firm's business contacts and strong reputation within the
' industry have thus far enabled to firm to grow to its present size and stature. Ms.
Goldsmith and her family have been residents of Salem since 1992 where they own a
' home and property on Mail Street.
The Bioengineering Group employs five full time professionals, two part time
' professionals, two training interns from Germany, two part time student assistants, and
two part time administrative staff. The firm expects that over the next three years
approximately fifteen(15)net, new permanent jobs will be created, using roughly
$500,000 in private investment. The business is young and working aggressively to
compete with larger engineering and science consulting firms,mainly based in Boston.
Tax increment financing would offer the company much needed assistance with cash
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' flow as they seek access to working capital and financial assistance to control expenses.
' The building at 18 Commercial Street is one story with a mezzanine and is located in a
Business Park Development zoning district which is geared towards developing clean
businesses and light industrial uses. The building is a 5,000 square foot building located
' on a 10,716 square foot lot. Previously the building had been vacant or partially vacant
for a number of years.
' Attached is the budget for the project buildout in the amount of$239,925. The budget
includes a new roof, new HVAC system, interior and exterior renovation.
' Budget for Project
�Cosl oftlmprovemet�ts h
' Architecture Fees 3,600
ASTM Screen/Limited Assessment 500
' Report
Roofing 30,775
' General Construction 56,500
Plumbing 8,000
' Electrical Work 35,500
Heating and Ductwork 20,000
' Air Conditioning 8,600
' Lighting 2,850
Interior Finishes 25,000
' Telephone/Voicemail System 12,500
Building/Company Sign 900
' Security System 2,700
Greenhouse 20,000
' Misc. Services: blueprints, permits, 6,500
waste removal, etc.
t Misc. Supplies: lumber,paint, 6,000
hardware, ladder rental, etc.
' Total Improvement Costs $2399925
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' 7. Is this business new to Massachusetts? ❑ Yes ✓ No
t If no:
• Where are the existing Massachusetts facilities?
' The Bioengineering Group moved from 53 Mason Street in Salem to 18
Commercial Street in Salem in June 1999.
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• Will this project require/trigger the closing or consolidation of any Massachusetts
' facilities? If yes, please explain.
No.
' 8. Is this project an expansion of an existing business? ✓Yes ❑ No
' If yes, check the appropriate box: ❑ at existing location
✓ at new location in same municipality
' ❑ at new location in different municipality
' 9. Job creation
' In order to qualify for Certified Project status,the governing statute and regulations
require the creation of net, new, permanent full-time employees in Massachusetts. On
the chart provided(see next page), please fill in the blanks provided.
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' Work Force Analysis andjob Creation Plan
Current TOTAL NEWJOBS NEW JOBS NEWJOBS NEWJOBS NEWJOBS
' employment projected new Year I Year 2 Year 3 Year 4 Year 5
permanent
jobs
' Total Employees at Certified Project 13 15 3 3 3 3 3
Facility
' Total Employees at Other Sites in N/A
Mass.
' #of Employees at Certified Project 1 10 2 2 2 2 2
Location who live in the ETA
#of Permanent Full-Time Employees 6 12 3 3 3 2 1
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#of Permanent Part-Time Employees 2 3 — _ _ 1 2
' #of Temporary full-Time Employees 2 0
1 #of Temporary Part-Time Employees 3 0
' #of Management Positions 2 2 1
' Average Salary of Management $85,000
Positions
' #of Professional Positions 5 13 2 3 2 3 3
Average Salary of Professional $60,000
' Positions
#of Technical Positions 2 —
' Average Salary of Technical Positions $35,000
' #of Skilled Positions 3
' Average Salary of Skilled Positions $25/hr
#of Unskilled Positions 2
Average Salary of Unskilled Positions $1.50/hr
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' 10. Certification for Abandoned Buildings: Does the proposed project involve the
renovation and reuse of an abandoned building? ❑ Yes ❑ No ✓ Unsure
' If yes or unsure, please answer the following questions:
' (a) How long has the building been vacant? (If known, state date)
' The building has been vacant since approximately 1993.
(b) During this period of time, what percentage of the building was vacant and
unused? If the percentage varied during this time period,provide information for
each change in the percent of vacant space and the applicable time period.
' From 1993 to late 1998, the building was 50%vacant. From late 1998 to June
1999 the building was 100%vacant.
' 11. Local Employment: What actions will you take to recruit employees from among
' residents of the ETA?
The owner of the Bioengineering Group is currently involved in community activities to
' learn of and update local resources and to identify possible job candidates. The firm
will maintain communication with local agencies and organizations, including Salem
High School and college contacts. The firm will rely on local newspapers as well as
' Internet and Boston area employment resources.
The Bioengineering Group has the intention and capacity to achieve the anticipated level
' of new permanent full-time jobs for residents of the municipality/Economic Target Area.
The owner is a Salem resident and intends to recruit intensively from the ETA to fill new
permanent full-time jobs. The firm recently leased a 5,000 square foot facility at 18
' Commercial Street to meet the needs of this steadily growing company. It is committed
to expanding the business and adding ETA residents to its payroll. The firm has already
hired at least two full-time employees who are Salem residents (Operations Manager and
Restoration Horticulturist).
' The market for bioengineering design and applications has grown quickly in the United
States and internationally and The Bioengineering Group has been successful at obtaining
major contracts for such work. Revenues and volume of work have been increasing and
' are anticipated to continue,thus furthering the need for additional personnel. The
Bioengineering Group, Inc. is in the unique position of offering consulting services in
new and innovative environmental technologies. The company has a four year client
' base, including new and repeat business in government and public projects, as well as
residential, smaller projects. The company is willing and anxious to search the local
market for promising employees for technical,management and administrative positions.
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' 12. Affirmative Action Statement: Does the business have an Affirmative
Action/Equal Employment Opportunity Plan or Statement? ✓ Yes ❑ No
' If yes,please attach a copy.
' Please see attached.
' If no, describe the business' hiring policies and practices.
13. Agreement between the Business and Area Banks: Describe briefly the
business' local banking relationship(s), if any. Does the institution with which the
business banks participate in the Massachusetts Capital Access Program,which is
designed to commit a portion of the business' deposits to fund loans to local businesses?
' The Bioengineering Group, Inc. banks with Fleet Bank(Salem Branch) and Danvers
' Savings Bank, who participate in the Massachusetts Capital Access Program.
14. Economic benefits of project certification: Provide a description of the
t economic benefits that are anticipated for the business and the project, if the project is
certified. Also,provide any information, documentation or studies demonstrating any
additional benefits (i.e. reduction of blight, reuse of abandoned buildings, clean up of
' contaminated property,job training, provision of day care, any contributions to the
community, etc.) likely to accrue to the area as a result of Certified Project designation.
Please describe:
The Bioengineering Group, Inc. is engaged in a consistent year-round business activity
that emphasizes skilled and highly skilled employment,both elements of which help to
create economic balance here in Salem where it has often been skewed toward the service
' and retail sectors. As The Bioengineering Group enlarges its staff of professionals,
technical and skilled workers,the firm encourages not only their contribution to the
company and the City of Salem, but also, encourages employees to appreciate and settle
tin Salem and surrounding communities.
The company and its founder and President, Wendi Goldsmith, are interested in offering
' expertise to the community in the form of ecological restoration to promote a coherent
and positive identity for the multi-purpose corridor along the North River in Salem. It is
the firm's intent to encourage the City and active businesses in the area to collaborate in
' carving out a clearer identity that could play a small yet significant part in adding to the
enrichment of the already recognized historical and cultural identities in Salem.
The Bioengineering Group's building is located in a section of Salem that in undergoing
revitalization in the form of public park improvements (North River Canal park), new
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' businesses and infrastructure improvements such as the Bridge Street improvements and
the proposed Bridge Street bypass road. Certified Project designation will permit River
' Wharf Realty Trust to assist this company's growth and contribute to the overall
economic welfare of Salem. Additionally,the location of this prosperous and healthy
company will further attract other viable economic uses.
1 Economic benefits to applicant
' • Improvements to the building and property and expansion of The Bioengineering
Group's workforce are economically feasible with the receipt of investment tax
' credits and property tax benefits
• River Wharf Realty Trust will receive approximately $4,257 in local property tax
benefits over five years
' • The rehabilitation of the facility will entitle River Wharf Realty Trust to state 5%
investment tax credits
' Economic benefits to the City of Salem
• The new location and expansion of The Bioengineering Group could provide an
' incentive and an anchor for the development of the Business Park along the North
River Corridor. Additional improvement of the Corridor would add to the attraction
of the newly constructed park area, and could incorporate the historical and cultural
identities of Salem in making the area more attractive to tourists/visitors.
• The quality of the neighborhood would be improved and enhanced by recognizing the
need for improving the properties and integrating the utilitarian role of the business
' park district.
• As the company expands its work force,the need for professionals will increase, and
' with that, expectations for increases in property investment and taxes.
• The company is expected to add fifteen new jobs in Salem.
• Tax revenues to the City will be increased because(1)the Commercial Street building
' will now be occupied by a successful business that contributes to the job market and
use of sales and services from the community as a whole; and(2) improvements to
the building and property will result in an increased value of the property.
' Special Requirements for Real Estate Projects
' 1. Will the business own or lease/rent the facility? ❑ Own ✓Lease/Rent
' If leasing/renting, please identify the developer/landlord, and state who will be the
taxpayer of record for the purpose of paying local real estate taxes.
' The Landlord is River Wharf Realty Trust. The property was purchased by The
Bioengineering Group, Inc. in the form of its holding company,River Wharf Realty
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' Trust. As a matter of standard business practice, The Bioengineering Group, Inc., leases
the building from the Realty Trust.
' If owning, will the business fully occupy the space? ❑ Yes ❑ No
' If no, does the business intend to lease/rent the remaining space?
The space will be occupied by The Bioengineering Group and a tenant new to Salem:
' Summa, Inc., distributors of graphic equipment.
I ' 2. Describe how the various tax benefits and other economic incentives that will result from
Certified Project designation will be allocated among the business(e's) developing the
project(i.e. a developer or landlord) and the business(e's) intending to purchase, lease or
' rent space at the facility(i.e.tenant or tenants).
As River Wharf Realty Trust is the holding company of The Bioengineering Group, Inc.,
the tax relief received from Certified Project designation will assist The Bioengineering
Group, Inc. in its renovation plans for the building.
' Supplemental Information
t 1. Name(s) of business(e's) intending to take advantage of state tax
incentives:
' Business Name: River Wharf Realty Trust
Federal Employer ID: 04-6895020
Address: 18 Commercial Street
Salem, MA 01970
Phone: (978) 740-0096
Fax: (978) 740-0097
Contact Person: Wendi Goldsmith/Grace Spence
Type of Organization(check that which applies):
' Corporation: ❑ For profit; S Corp.; ❑ Non-Profit
✓ Business Trust
❑ Partnership: ❑ General Partnership; ❑ Limited Partnership
' ❑ Individual
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' Level of interest: (Indicate the benefits the company seeks)
' ✓ 5%Investment Tax Credit
❑ 10%Abandoned Building Tax Deduction(if applicable)
' ✓ Local Real Estate Tax Incentive Beneficiary
2. Names and Addresses of Organization (please respond according to type)
' Realty Trust:
i ' Robert G. Solomon, Trustee
Wendi Goldsmith, Beneficiary
' Corporation:
' Wendi Goldsmith,President
3. Please provide names, addresses, phone numbers and contact persons
' for organizations which may own or control or be affiliated with the
applicant organization:
tRobert G. Solomon
7 Mall Street
' Salem, MA 01970
(978) 740-0096
' Wendi Goldsmith
7 Mall Street
Salem,MA 01970
' (978) 740-0096
' 4. Certificate of Good Standing:
A Certificate of Good Standing for The Bioengineering Group, Inc. is attached with this
application.
1
mccAtif\forms\cpap.wpd
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Commonwealth of Massachusetts Department of Revenue
Taxpayer Service Division
III , Certificate Unit
PO Box 7066 September 30, 1999
Boston.MA 02204
' BIOENGINEERING GROUP, INC.
' 53 MASON STREET
SALEM, MA 01970
1
' CERTIFICATE OF GOOD STANDING
' It is hereby certified by the Commissioner of Revenue of the Commonwealth of Massachusetts
as of the above date, that the above named corporation is a domestic corporation organized
in Massachusetts on January 16, 1996 and that said corporation is in good standing with
' respect to any and all returns due and taxes.payable to the Commonwealth under General
Laws, Chapter 62C, and the statutes referred to in Section 2 thereof.
' This certificate does not certify the corporation's standing as to unemployment insurance taxes
under G.L.Ch. 151a or taxes under any other provisons or law.
No. 53653
By
' Assistant Chief,
Automated Systems Bureau
1
THIS IS NOT A WAIVER OF LIEN ISSUED UNDER GENERAL LAWS, CHAPTER 62C, SECTION 52,
' AND CANNOT BE USED FOR SUCH PURPOSE.
5066 - 69976
1
' Frederick A.Laskey ®° ted "mcy 1 PBP f
Commissioner
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THE BIOENGINEERING GROUP, INC.
' Affirmative Action Employment Program
January 1996
EEO POLICY STATEMENT
' The Bioengineering Group, Inc. ("TBG"), its officers, and managers are
fully committed to equal employment opportunity and to the implementation of
an effective affirmative action employment program without regard to race, sex,
' religion, color, national origin, age, sexual orientation, or handicap. It is TBG's
policy to provide equal opportunity in employment for all persons and to prohibit
discrimination in all aspects of its personnel policies, program practices and
operations, and in all of its working conditions and relationships with employees
and applicants for employment.
' All TBG employees and managers are responsible for supporting TBG's
policy on equal employment opportunity and for assuring that the workplace is
free from discrimination. As evidence of its commitment to affirmative action in
employment, TBG has made equal employment opportunity a critical element in
its managerial performance appraisal system. Annual evaluation will be made
to measure program accomplishments in affirmative action, and measures will
' be taken to remedy imbalances or lack of progress.
2. PLAN FOR PREVENTION OF SEXUAL HARASSMENT
' The Bioengineering Group, Inc. is committed to providing a work
environment free of sexual harassment. TBG routinely informs employees that
such harassment is a violation of.Title VII of the Civil Rights Act, and that TBG
prohibits sexual harassment of its employees in any form. Reports of
allegations will be treated with discretion, thoroughly investigated, and acted
upon to eliminate such harassment and to prevent recurrences.
3. STATEMENT OF ADEQUATE MONITORING/EVALUATION SYSTEM
In order to permit ongoing assessment of the TBG affirmative action
employment program, a copy of all personnel actions are given to the TBG
Director of Human Resources as they occur. This allows for the analysis of
hiring and promotions. Since the TBG work force consists of fewer than 200
employees, hiring and promotion can be adequately monitored without a
computerized system.
' In addition to the ongoing assessment of personnel data and trends, an
effective, bias-free system of auditing is essential to any affirmative employment
1
' 2Affirmative Action Employment Program
January 1996
' Page 2
' program. Accordingly, on an annual basis, the following will be reviewed by the
Director of Human Resources:
- Effectiveness of barrier elimination strategies.
' - Selection process of new hires during year.
Annual findings will be presented in writing to TBG management with
' recommendations for correcting problem areas.
4. PROGRAM ANALYSES- RECRUITMENT AND HIRING
' It is TBG's policy to promote from within whenever possible. When this
is not possible, professional, administrative, technical, and clerical positions are
advertised in several local newspapers in the recruiting area in an attempt to
reach a diverse group of job candidates.
' As provided by the U.S. Equal Employment Opportunity Commission
Management Directive 714 (EEO-MD-714), Section 13a(5), numerical objectives
(goals) are optional because of TBG's limited employment size. Due to the
' dynamic nature of TBG's business and the market segment in which it operates,
such objectives would be restrictive to its ability to operate cost-effectively and
at the level of expertise for which it is known.
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' RESOLUTION
APPROVING CERTIFIED PROJECT APPLICATION OF
RIVER WHARF REALTY TRUST
' WHEREAS, River Wharf Realty Trust has applied for designation as a Certified Project under
the Massachusetts Economic Development Incentive Program created by Chapter
23A of Massachusetts General laws;
WHEREAS, River Wharf Realty Trust meets the minimum standards of the Economic
Development Incentive Program and the local economic development goals and
' criteria established as part of the documents creating the Beverly & Salem
Regional Economic Target Area and the Salem Economic Opportunity Area;
' WHEREAS, the proposed certified project is located at 18 Commercial Street, within the
boundaries of the Salem Economic Opportunity Area. The legal description is as
' follows:
The land in said Salem with the buildings thereon, if any, bounded and described
' as follows:
Parcel No. 1
' Beginning at a point on the northerly side of Commercial Street at the
SOUTHWESTERLY corner of land formerly of George F. Lord,thence running
' in a NORTHERLY direction along the Westerly property line of the property now
or formerly of George F. Lord, a distance of eighty-nine and 85/100 (89.85) feet
to a point; thence turning and running in a
NORTHWESTERLY direction a distance of fifty and 05/100 (50.05) feet along
land now or formerly of H.P. Hood and Sons, Inc.;thence turning and running in
' a SOUTHERLY direction along land now or formerly of the City of Salem, a
distance of ninety-two and 57/100 (92.57) feet;thence turning and running in an
' EASTERLY direction along the Northerly street line of Commercial Street, a
distance of fifty (50) feet to the point of beginning.
' Containing 4,560 square feet of land, as shown on a plan filed with the Essex
South District Registry of Deeds entitled"Land of City of Salem, Rear of North
Street, Salem, Mass.,May 1955, Revised October 1955 —Edgar W.Nickerson,
' City Engineer" in Book 4809, Page 500.
Parcel No. 2
' The land in said Salem with the buildings thereon, if any, situated on the North
side of the North River Canal and bounded and described as follows:
' Beginning at the SOUTHEASTERLY corner of said lot on the Northwesterly side
of a proposed road the same point being three hundred and eighty-eight and
44/100 (388.44) feet Southwesterly from North Street; thence running ,
' SOUTHWESTERLY by the Northwesterly street line of said proposed road
' seventy (70) feet to other land now of formerly of the City of Salem; thence
turning and running NORTHWESTERLY by said other land now or formerly of
the City of Salem, eighty-nine and 85/100 (89.85)feet to land now or formerly of
' H.P. Hood and Sons, Inc.; thence turning and running EASTERLY by said land
now or formerly of H.P. Hood and Sons,Inc., seventy and 12/100 (70.12) feet to
land now or formerly of Cook; thence turning and running SOUTHEASTERLY
' by said land now or formerly of Cook, eighty-six and 06/100 (86.06) feet to the
point begun at.
' Containing 6,156 square feet of land and being shown on a plan entitled "Land of
the City of Salem, rear of North Street May 1955,Revised October 1955, Edgar
W.Nickerson, City Engineer" and hereinbefore referred to.
' For title, reference is made to Deed of Catharyn H. Lord, dated May 14, 1965 and
recorded with the Essex South District Registry of Deeds in Book 5267, Page 342.
' WHEREAS, the City of Salem has agreed to offer River Wharf Realty Trust a Tax
' Increment Financing Agreement;
WHEREAS, The Bioengineering Group, Inc., having leased the building on the property of its
' holding company,River Wharf Realty Trust, will invest approximately $240,000
to renovate a property at 18 Commercial Street into professional offices, an
investment which creates approximately 15 new,permanent jobs for residents of
the Beverly& Salem Regional Economic Target Area.
WHEREAS, the renovation of the property at 18 Commercial Street will substantially improve
' the aesthetic appearance of the property and reduce blight in one of Salem's
business districts;
' NOW THEREFORE BE IT RESOLVED
that the Salem City Council approves the Certified Project application of River
' Wharf Realty Trust, designating this project as a certified project for a period of
five years, and forwards said application for certification to the Massachusetts
Economic Assistance Coordinating Council for its approval and endorsement.
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Adopted this day of , 2000, by the Salem City Council
' Stanley J. Usovicz, Jr., Mayor
Date
Attest:
Deborah E. Burkinshaw, City Clerk
' SEAL
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Massachusetts Economic Development Incentive Program
' Tax Increment Financing Plan
I. Location
A. Economic Opportunity Area (EOA): Salem EOA
B. Municipality: City of Salem
' C. Tax Increment Financing (TIF) Zone:
' Attached are:
• map of the ETA
• map showing the general location of the proposed private project
' parcel by parcel map with property lines and the outline of each building,
infrastructure improvements, all thoroughfare, public rights of way and easements
• zoning map
' Common description of TIF Zone:
' The proposed TIF Zone is located at 18 Commercial Street in the Salem Economic
Opportunity Area(EOA). The tax parcel is Map 26, Lot 51.
' Legal description of TIF Zone:
' The land in said Salem with the buildings thereon, if any,bounded and described as
follows:
' Parcel No. 1
Beginning at a point on the northerly side of Commercial Street at the
' SOUTHWESTERLY corner of land formerly of George F. Lord, thence running in a
NORTHERLY direction along the Westerly property line of the property now or formerly
of George F. Lord, a distance of eighty-nine and 85/100 (89.85) feet to a point; thence
' turning and running in a
NORTHWESTERLY direction a distance of fifty and 05/100 (50.05) feet along land now
or formerly of H.P. Hood and Sons,Inc.; thence turning and running in a SOUTHERLY
direction along land now or formerly of the City of Salem, a distance of ninety-two and
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' 57/100 (92.57)feet;thence turning and running in an EASTERLY direction along the
Northerly street line of Commercial Street, a distance of fifty (50) feet to the point of
' beginning.
Containing 4,560 square feet of land, as shown on a plan filed with the Essex South
' District Registry of Deeds entitled"Land of City of Salem, Rear of North Street, Salem,
Mass., May 1955, Revised October 1955 —Edgar W.Nickerson, City Engineer"in Book
4809,Page 500.
' Parcel No. 2
' The land in said Salem with the buildings thereon, if any, situated on the North side of the
North River Canal and bounded and described as follows:
' Beginning at the SOUTHEASTERLY corner of said lot on the Northwesterly side of a
proposed road the same point being three hundred and eighty-eight and 44/100 (388.44)
' feet Southwesterly from North Street; thence running
SOUTHWESTERLY by the Northwesterly street line of said proposed road seventy (70)
1 feet to other land now of formerly of the City of Salem; thence turning and running
NORTHWESTERLY by said other land now or formerly of the City of Salem, eighty-
nine and 85/100 (89.85) feet to land now or formerly of H.P. Hood and Sons,Inc.;thence
' turning and running EASTERLY by said land now or formerly of H.P. Hood and Sons,
Inc., seventy and 12/100 (70.12) feet to land now or formerly of Cook;thence turning and
running SOUTHEASTERLY by said land now or formerly of Cook, eighty-six and
' 06/100 (86.06) feet to the point begun at.
Containing 6,156 square feet of land and being shown on a plan entitled"Land of the
' City of Salem, rear of North Street May 1955,Revised October 1955, Edgar W.
Nickerson, City Engineer" and hereinbefore referred to.
' For title, reference is made to Deed of Catharyn H. Lord, dated May 14, 1965 and
recorded with the Essex South District Registry of Deeds in Book 5267, Page 342.
tD. Narrative Description of TIF Zone:
' Needs, Problems and Opportunities:
' Designation of this TIF Zone meets the needs of, solves problems for and creates
opportunities for River Wharf Realty Trust and the City of Salem.
' Solving problems and meeting the needs of River Wharf Realty Trust:
River Wharf Realty Trust,holding company for The Bioengineering Group, Inc.,
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1 purchased the land and building at 18 Commercial on June 30, 1999 and leased it to The
Bioengineering Group, Inc., a small consulting firm that made a sizable investment in
' Salem in locating at 18 Commercial Street and undertaking the extensive renovations to
the property. The building or portions of the building were unused for some time prior
to the purchase, and the building needed to be transformed into professional office space
' from what was essentially an open warehouse.
In order for The Bioengineering Group, Inc. to remain in Salem, it recognized it would
' be necessary to raise funds to convert the building into a viable business location. With
that in mind,the company set out to investigate sources for funding and economic
assistance. With the recommendation of legal and financial advisors, The
' Bioengineering Group formed River Wharf Realty Trust for the purchase of the
property. The Bioengineering Group,Inc. recognized that the Tax Increment Financing
Certified Project designation,would be especially helpful in assisting the company in its
' early years of growth and expansion.
' Creating Opportunityfor River Wharf Realty Trust:
Assistance from the City of Salem and the Massachusetts Office of Business
' Development through Certified Project designation will create the opportunity for River
Wharf Realty Trust to assist The Bioengineering Group to grow its business in Salem.
Although the company has already demonstrated successful growth in the environmental
' technology consulting field,the company is still small and values the opportunity to stay
in Salem where it has already discovered local need for its services.
' This project provides the Bioengineering Group, Inc. with the ideal opportunity to
jumpstart economic development on the Commercial Street corridor and to be the first of
many anticipated businesses to create a business park in this area that is fronting on the
recently established North River Canal Park. The project is also anticipated to employ
15 permanent, net, new jobs in the ETA.
' Solving problems and meeting the needs of the City of Salem:
' Designation of the TIF Zone and approval of this TIF Plan will help River Wharf Realty
Trust, which will expand the tax base and increase the supply of healthy, growing
businesses in the City of Salem. The establishment of a professional firm such as The
' Bioengineering Group in this business corridor will help to spur further economic
growth, as other firms are attracted to this improved business district.
' The City has undertaken several initiatives in this area to boost economic development
and aesthetic appearances. The existence of the North River Canal Park provides a very
attractive setting in which to locate a business. The proposed Bridge Street By-pass,
' which is located nearby to this development, will improve travel in Salem. Additionally,
the nearby former Parker Brothers site is slated for redevelopment as a high end
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' residential and mixed use development, which will greatly improve this section of
Salem.
tCreating Opportunityfor the City of Salem:
' Certified Project designation permits River Wharf Realty Trust to assist The
Bioengineering Group to remain in Salem where it can continue dialogue with
community representatives to learn ways that it can service the local area with
' environmental solutions while helping to bring employment opportunities to the City as
well. The City of Salem will benefit by the presence of a stable company that improves
' the appearance of the Commercial Street area, adds permanent jobs and will be a vital
component of an overall economic development revitalization.
E. Property owners within the proposed TIF Zone:
The property owner is:
' River Wharf Realty Trust(holding company for The Bioengineering Group, Inc.)
Robert G. Solomon, Trustee
' H. Time
' The TIF Plan and TIF Zone described here will be in effect for a period of five years.
' III. TIF Zone & Economic Development
A. Economic Opportunities and Economic Benefits to the
' Community: Approval of the proposed TIF Zone will create the
following economic development opportunities and benefits:
' Creates jobs: 15 net, new permanent jobs. The Bioengineering Group will expand
its work force from the present thirteen employees to an additional fifteen
technical, administrative and management positions over the life of the TIF. With
that, there are expectations for increases in property investment and tax revenues
to the City.
' Generates addtional tax revenue through the life of the TIF and beyond: see
attached spreadsheet entitled "5 Year Tax Increment Financing Plan". Tax
revenues to the City will be increased because (1) the Commercial Street building
' will now be occupied by running, successful businesses contributing to the job
market and use of sales and services from the community as a whole; and(2)
improvements to the building and property will have occurred.
• Improves appearance of vacant property through renovation. The quality of the
neighborhood would be improved and enhanced by recognizing the need for
' 4
1
' improving the properties and integrating the utilitarian role of the business park
district.
' The new location and expansion of The Bioengineering Group could provide an
incentive and an anchor for the development of the Business Park along the North
River Corridor. Additional improvement of the Corridor would add to the
attraction of the newly constructed park, area, and could incorporate the historical
and cultural identities of Salem in making the area more attractive to
tourists/visitors.
' B. Proposed and Potential Land Uses: (analyze how the land uses are
appropriate for anticipated economic development)
I ' The property will be used for the professional offices of The Bioengineering Group,Inc.
' In addition to the building improvements,plans are being made to include an attractive
greenhouse where the company will be able to grow and demonstrate the use of wetland
plants appropriate to the New England area. It is anticipated that the improvements and
greenhouse will greatly enhance the restoration to the area already initiated by the City
and contribute to ongoing economic development initiatives.
C. Zoning in the TIF Zone: The TIF Zone is located in a Business Park
Development district.
A Hazardous Waste: (identify any parcels,public or private, in zone which are
confirmed hazardous waste disposal sites, in accordance with chapter 21E, MGL.
' Describe any public or private site remediation activities and any reuse plans)
Not Applicable
' IV. TIF Zone Projects
A. Planned Private Project:
' The Bioengineering Group,Inc. is renovating a 5,000 square foot warehouse at 18
Commercial Street consisting of one floor and a mezzanine into its professional offices.
' B. Provide Documentary evidence of the level of the developer's
commitment to the proposed and required construction in the TIF
' project:
' The Bioengineering Group,Inc. has already paid legal and professional fees related to the
appraisal, 21E assessment,building inspection, and closing costs associated with the
purchase of the property and building. Wendi Goldsmith, owner and president of the
5
' company, also contributed personally towards the down payment. Additionally, the
company has engaged the services of an architect, general contractor and roofing,
' electrical, plumbing and HVAC contractors for the development of this project.
C. Budget for Project:
1 The costs of completing the project are as follows:
�Ost Ufa mrovem��3�t�s( i _Wdge s
' Architecture Fees 3,600
ASTM Screen/Limited Assessment 500
' Report
Roofing 30,775
' General Construction 56,500
Plumbing 8,000
' Electrical Work 35,500
' Heating and Ductwork 20,000
Air Conditioning 8,600
' Lighting 2,850
Interior Finishes 25,000
' Telephone/Voicemail System 12,500
I ' Building/Company Sign 900
Security System 2,700
' Greenhouse 20,000
Misc. Services: blueprints, permits, 6,500
' waste removal, etc.
Misc. Supplies: lumber,paint, 6,000
hardware, ladder rental, etc.
Total Improvement Costs $2399925
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' D. Relevant business plans:
' Time schedule for development:
' Scheduled construction completion: Fall 2000
Expected increases in job creation:
' 15 permanent professional, technical,management, skilled and unskilled jobs
Estimates of tax revenue based upon increased valuation of parcel:
Please see attached spreadsheet entitled"5 Year Tax Increment Financing Plan"
' E. Participation in other federal, state and local economic
' development programs and initiatives:
N/A
' F. Planned Public Projects:
' N/A
' V. Financing for TIF Zone Projects
' A. Anticipated Financing for Private Projects:
Source: Amount:
Danvers Savings Bank—SBA Loan/Mortgage $342,000
Danvers Savings Bank-Line of Credit 100,000
City of Salem Note 50,000
' Danvers Savings Bank Loan 90,000
Investment from W. Goldsmith 55,000
Total $637,000
' B. Anticipated Financing for Public Projects:
' N/A
I ' C. Detailed Projection of Costs of Public Construction:
N/A
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D. Will Betterments be used to finance any public-private projects,
now or within the proposed life of the TIF Plan?
N/A
tE. If Betterments or Special Assessments are a part of the TIF Plan:
' N/A
F. Describe how private projects will be financed:
1
Evidence of private financing commitments:
' The Bioengineering Group has received approvals and funds for the financing of
this project from Danvers Savings Bank and the City of Salem.
' VI. TAX INCREMENT FINANCING
A. Authorization to use TIF: The attached City Council resolution dated
' March 9, 1995 authorizes the City of Salem to use TIF in the Salem EOA. Also
attached is a City Council Resolution approving the TIF Plan for River Wharf
' Realty Trust on
B. Amount of proposed tax increment exemptions from property
t taxes: As the attached spreadsheet shows,the Chairman of Salem's Board of
Assessors estimates that property tax benefits will total approximately $4,257
over five years. Also, see the description of the proposed TIF Plan in part D of
' this section.
C. Maximum percentage of public project costs that can be
recovered through betterments or special assessments:
' N/A
' D. TIF exemption from property taxes:
As the attached spreadsheet shows, the City estimates the tax benefits to total
' approximately $4,257 over 5 years.
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' The exemption plan works as follows:
' Year River Wharf Realty Trust Pays:
1 75% of the increment, plus the base tax bill
' 2 85%of the increment,plus the base tax bill
3 95% of the increment,plus the base tax bill
4 95% of the increment, plus the base tax bill
t 5 95%of the increment,plus the base tax bill
6 100% of the increment,plus the base tax bill
The effective date of tax increment exemption is July 1, 2000 (Fiscal Year 2001).
The property becomes eligible for the tax increment exemption on the July first
' following the date on which the EACC approves the plan.
Term of the exemption: 5 years
1 VII. Approval of TIF projects
' TIF projects are approved by the Salem City Council. The Mayor and his staff are
responsible for negotiating TIF Plans and, after Council approval, executing those plans.
' Evidence of local approvals of the proposed TIF Zone and TIF Plan is provided here in
the form of a resolution authorizing a TIF agreement passed by the Salem City Council
' on
' \MC\TIF\Bioengineering\TIFPLAN.doe
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' RESOLUTION
AUTHORIZING THE USE OF TAX INCREMENT FINANCING IN THE
' SALEM ECONOMIC OPPORTUNITY AREA
' WHEREAS,the City of Salem is part of the area designated the Beverly & Salem Regional
Economic Target Area and the Salem Economic Opportunity Area;
' WHEREAS,there is strong support for economic development and the use of Tax Increment
Financing as an economic development tool to create jobs and encourage business
' expansion and relocation to the City of Salem;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Salem that:
' (1) Tax Increment Financing may be used as a tool to encourage economic
' development within the Salem Economic Opportunity Area.
(2) The Mayor is hereby authorized to execute and implement Tax Increment
' Financing agreements.
Adopted this day of /LCGi/�L? 19 � by the Salem
' City Council at a regular City Council meeting with a quorum present.
Neil J�HarKngton, may6r Date��
' ATTEST:
' Deborah E. Burkinshaw, City Clerk
1
SEAL
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' RESOLUTION
AUTHORIZING A TAX INCREMENT FINANCING AGREEMENT
' For River Wharf Realty Trust
' WHEREAS, the City of Salem is part of the area designated the Beverly & Salem Regional
Economic Target Area and the Salem Economic Opportunity Area;
' WHEREAS, the Mayor of the City of Salem has prepared a Tax Increment Financing
Agreement in accordance of Chapter 40 and 751 CMR 11.00;
' WHEREAS, there is strong support for economic development and the use of Tax Increment
Financing as an economic development tool to encourage business expansion in
and relocation to the City of Salem;
' WHEREAS, there is strong support for using Tax Increment Financing to encourage the
renovation of 18 Commercial Street, the property owned by River Wharf Realty
' Trust and leased to The Bioengineering Group, Inc.;
' WHEREAS, this property is located in the Salem Economic Opportunity Area;
NOW THEREFORE BE IT RESOLVED by the Salem City Council that:
(1) The Tax Increment Financing Agreement be adopted as it has been substantially
submitted to the City Council. A copy of said Tax Increment Financing Agreement is
' attached as Exhibit A, and made part of this Resolution.
(2) The area to be designated as a Tax Increment Financing Zone is:
The land in said Salem with the buildings thereon, if any, bounded and described as
follows:
' Parcel No. 1
' Beginning at a point on the northerly side of Commercial Street at the
SOUTHWESTERLY corner of land formerly of George F. Lord,thence running in a
' NORTHERLY direction along the Westerly property line of the property now or formerly
of George F. Lord, a distance of eighty-nine and 85/100 (89.85) feet to a point; thence
turning and running in a
' NORTHWESTERLY direction a distance of fifty and 051100 (50.05) feet along land now
1
' or formerly of H.P. Hood and Sons, Inc.;thence turning and running in a SOUTHERLY
direction along land now or formerly of the City of Salem, a distance of ninety-two and
' 57/100 (92.57) feet; thence turning and running in an EASTERLY direction along the
Northerly street line of Commercial Street, a distance of fifty (50)feet to the point of
beginning.
Containing 4,560 square feet of land, as shown on a plan filed with the Essex South
District Registry of Deeds entitled "Land of City of Salem, Rear of North Street, Salem,
' Mass., May 1955, Revised October 1955—Edgar W.Nickerson, City Engineer" in Book
4809, Page 500.
' Parcel No. 2
' The land in said Salem with the buildings thereon, if any, situated on the North side of the
North River Canal and bounded and described as follows:
' Beginning at the SOUTHEASTERLY corner of said lot on the Northwesterly side of a
proposed road the same point being three hundred and eighty-eight and 44/100 (388.44)
feet Southwesterly from North Street;thence running
' SOUTHWESTERLY by the Northwesterly street line of said proposed road seventy(70)
feet to other land now of formerly of the City of Salem;thence turning and running
' NORTHWESTERLY by said other land now or formerly of the City of Salem, eighty-
nine and 85/100 (89.85) feet to land now or formerly of H.P. Hood and Sons, Inc.; thence
turning and running EASTERLY by said land now or formerly of H.P. Hood and Sons,
' Inc., seventy and 12/100 (70.12) feet to land now or formerly of Cook; thence turning and
running SOUTHEASTERLY by said land now or formerly of Cook, eighty-six and
06/100 (86.06) feet to the point begun at.
Containing 6,156 square feet of land and being shown on a plan entitled"Land of the
' City of Salem,rear of North Street May 1955, Revised October 1955,Edgar W.
Nickerson, City Engineer"and hereinbefore referred to.
I ' For title, reference is made to Deed of Catharyn H. Lord, dated May 14, 1965 and
recorded with the Essex South District Registry of Deeds in Book 5267, Page 342.
' (3) A map of the Tax Increment Financing Zone is hereby attached as Exhibit B and made
part of this Resolution.
' (4) The Tax Increment Financing Agreement shall be binding on all subsequent owners of
the property in the Tax Increment Financing Zone. The City of Salem reserves the right
to review and renegotiate the Tax Increment Financing Agreement if the business activity
' ceases to be fully operational during the life of the Tax Increment Financing Agreement,
as specified in the Tax Increment Financing Agreement.
(5) A copy of the adopted Tax Increment Financing Agreement shall be forwarded to the
' Massachusetts Economic Assistance Coordinating Council for its approval.
' (6) The effective date of the Tax Increment Financing Agreement shall be July 1, 2000
(Fiscal Year 2001), whichever is later.
' (7) The Mayor is hereby authorized to execute and implement the Tax Increment Financing
Agreement.
' Adopted this day of 2000 by the Salem City
' Council at a regular City Council meeting with a quorum present.
' Stanley J. Usovicz, Jr., Mayor Date
' ATTEST:
' Deborah E. Burkinshaw, City Clerk
SEAL
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RIVER WHARF REALTY TRUST
5-YEAR TAX INCREMENT FINANCING PLAN
Base Value FY 00 $205,500 Tax Rate $31.65
Value After Building Renovation $450,000
Increment in Value $244,500 Base Year FY 2000
Year Taxes'R 'd efto.
P "t TO
. .................. ............
10
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Blit
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,;.... ..
...............
Rate U . .... W
............
BASE $205,500 $31.65 $6,504 0% $6,504 $0 $6,504 $0
1 $450,000 $31.65 $14,243 75% $6,504 $5,804 $12,308 $1,935
2 $450,000 $31.65 $14,243 85% $6,504 $6,578 $13,082 $1,161
3 $450,000 $31.65 $14,243 95% $6,504 $7,352 $13,856 $387
4 $450,000 $31.65 $14,243 95% $6,504 $7,352 $13,856 $387
5 $450,000 $31.65 $14,243 95% $6,504 $7,352 $13,856 $387
6 $450,000 $31.65 $14,243 100% $6,504 $7,738 $14,243 $0
TOTALS $91,962 $87,885 $4,257
NOTES
*TIF % = Percent of increment that is taxed
"Taxes Paid Each Year= Base Tax Bill plus Taxes on Increment
***Tax Benefit Each Year= Benefit to River Wharf Realty Trust
Base Value consists of FY2000 Assessed value of 18 Commercial Street
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1
TAX INCREMENT FINANCING AGREEMENT
' CITY OF SALEM, MASSACHUSETTS
and
' RIVER WHARF REALTY TRUST
This agreement is made this_day of 2000, by and between the CITY OF
' SALEM, a municipal corporation duly organized under the laws of the Commonwealth of
Massachusetts, having a principal place of business at City Hall, 93 Washington Street, Salem,
Massachusetts, 01970, acting through the Mayor, Stanley J. Usovicz, Jr., (hereinafter called "the
' CITY"), and RIVER WHARF REALTY TRUST, u/d/t dated June 30, 1999 (Recorded with
Essex South District Registry of Deeds in Book 15780, Page 107),with a principal place of
business at 18 Commercial Street in Salem, Massachusetts, 01970 (hereinafter called "the
' TRUST") . This Agreement will take effect as of July 1, 2000 (Fiscal Year 2001).
' WHEREAS, the TRUST has permitted The Bioengineering Group, Inc. (hereinafter called"the
LESSEE" of the TRUST)to renovate the building at 18 Commercial Street in
Salem as the professional offices for the LESSEE; and
' WHEREAS, the CITY is willing to grant tax concessions in return for guarantee of the
renovation of this distressed property and the creation of employment
' opportunities for local workers; and
WHEREAS, the Salem City Council resolved on November 9, 1995 to allow the use of Tax
' Increment Financing as a tool to encourage economic development within the
Salem Economic Opportunity Area; and
' WHEREAS, the Salem City Council resolved on to endorse the Tax
Increment Financing Plan negotiated by the CITY and the TRUST.
' NOW,THEREFORE, in consideration of the mutual promises contained herein,the parties do
mutually agree as follows:
' A. THE TRUST'S OBLIGATIONS
' 1. The TRUST shall purchase and permit the LESSEE to renovate the property at 18
Commercial Street in Salem. "The FACILITY" as used herein means the building at 18
Commercial Street containing approximately 5,000 square feet plus site improvements.
2. During the life of this agreement, if the TRUST decides to sell the FACILITY or the
business or to otherwise transfer control of the FACILITY or business and/or operations
' thereof, the TRUST shall give the CITY at least three months notice of said sale or
transfer. Said notice shall be given by certified mail, return receipt requested, to the
Mayor, City Hall, 93 Washington Street, Salem,Massachusetts, 01970.
1
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THE CITY'S OBLIGATIONS
The CITY shall grant a tax increment financing exemption to the TRUST in accordance
with Massachusetts General Laws, Chapter A, Section 3E, Chapter 40, Section 59, and
' Chapter 59, Section 5. Said exemption shall be granted on the improvements to the
FACILITY. Said exemption shall be valid for a period of five (5) years, beginning with
fiscal year 2001 (July 1, 2000) and ending with fiscal year 2006. During each year of
t this agreement, the TRUST will pay taxes based on the base value of the FACILITY and
on that portion of the value of the FACILITY which is not exempted under the
agreement.
The base value is established by the Board of Assessors (the Board) and is the assessed
value established for the most recent fiscal year immediately prior to the fiscal year in
' which the property first becomes eligible for the tax increment exemption of the
FACILITY unless an abatement is approved by the Board.
' The exemption schedule on the value of the FACILITY works as follows: For the fust
year,the TRUST will pay the base tax bill and will pay taxes on 75%of the full value of
improvements to the FACILITY. The full value of improvements to the FACILITY is
hereinafter called "the INCREMENT". In year two, the TRUST will pay taxes on 85%of
the full value of the INCREMENT,plus the base tax bill. In year three,the TRUST will
' pay taxes on 95% of the full value of the INCREMENT, plus the base tax bill. In year
four, the TRUST will pay taxes on 95% of the INCREMENT,plus the base tax bill. In
year five,the TRUST will pay taxes on 95% of the INCREMENT, plus the base tax bill.
In year six, the TRUST will pay taxes on the full value of the FACILITY.
C. OTHER CONSIDERATIONS
1. This Tax Increment Financing Agreement shall be binding on all subsequent owners of
' the property. The City of Salem reserves the right to review and renegotiate the Tax
Increment Financing Agreement if the business activity ceases to be fully operational
' during the life of the Tax Increment Financing Agreement.
2. If the TRUST decides to expand the facility at any time during the life of the Tax
' Increment Financing Agreement,the CITY and the TRUST may renegotiate the Tax
Increment Financing Agreement to exempt all or part of the value of the expansion from
property taxes. The exact amount of that exemption will be determined at the time of
' expansion.
Executed as a sealed instrument on the day and year first above written.
tCITY OF SALEM RIVER WHARF REALTY TRUST
' Stanley J. Usovicz, Jr., Mayor Robert G. Solomon, Trustee
tNotary Public
' My commission expires
1
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Commonwealth of Massachusetts Department of Revenue
Taxpayer Service Division
Certificate Unit
PO Box 7066 September 30, 1999
Boston. MA 02204
BIOENGINEERING GROUP, INC.
53 MASON STREET
SALEM, MA 01970
CERTIFICATE OF GOOD STANDING
It is hereby certified by the Commissioner of Revenue of the Commonwealth of Massachusetts
as of the above date, that the above named corporation is a domestic corporation organized
in Massachusetts on January 16, 1996 and that said corporation is in good standing with
respect to any and all returns due and taxes payable to the Commonwealth under General
Laws, Chapter 62C, and the statutes referred to in Section 2 thereof.
This certificate does not certify the corporation's standing as to unemployment insurance taxes
under G.L.Ch. 151 a or taxes under any other provisons or law.
No. 53653
By
Assistant Chief,
Automated Systems Bureau
THIS IS NOT A WAIVER OF LIEN ISSUED UNDER GENERAL LAWS, CHAPTER 62C, SECTION 52,
AND CANNOT BE USED FOR SUCH PURPOSE.
5066 - 69976
Frederick A.Laskey ®pnnfe°°"'a`i'°1etlpapef
Commissioner
THE BIOENGINEERING GROUP, INC.
Affirmative Action Employment Program
January 1996
1. EEO POLICY STATEMENT
The Bioengineering Group, Inc. ("TBG"), its officers, and managers are
fully committed to equal employment opportunity and to the implementation of
an effective affirmative action employment program without regard to race, sex,
religion, color, national origin, age, sexual orientation, or handicap. It is TBG's
policy to provide equal opportunity in employment for all persons and to prohibit
discrimination in all aspects of its personnel policies, program practices and
operations, and in all of its working conditions and relationships with employees
and applicants for employment.
All TBG employees and managers are responsible for supporting TBG's
policy on equal employment opportunity and for assuring that the workplace is
free from discrimination. As evidence of its commitment to affirmative action in
employment, TBG has made equal employment opportunity a critical element in
its managerial performance appraisal system. Annual evaluation will be made
to measure program accomplishments in affirmative action, and measures will
be taken to remedy imbalances or lack of progress.
2. PLAN FOR PREVENTION OF SEXUAL HARASSMENT
The Bioengineering Group, Inc. is committed to providing a work
environment free of sexual harassment. TBG routinely informs employees that
such harassment is a violation of Title VII of the Civil Rights Act, and that TBG
prohibits sexual harassment of its employees in any form. Reports of
allegations will be treated with discretion, thoroughly investigated, and acted
upon to eliminate such harassment and to prevent recurrences.
3. STATEMENT OF ADEQUATE MONITORING/EVALUATION SYSTEM
In order to permit ongoing assessment of the TBG affirmative action
employment program, a copy of all personnel actions are given to the TBG
Director of Human Resources as they occur. This allows for the analysis of
hiring and promotions. Since the TBG work force consists of fewer than 200
employees, hiring and promotion can be adequately monitored without a
computerized system.
In addition to the ongoing assessment of personnel data and trends, an
effective, bias-free system of auditing is essential to any affirmative employment
2Affirmative Action Employment Program
January 1996
Page 2
program. Accordingly, on an annual basis, the following will be reviewed by the
Director of Human Resources:
- Effectiveness of barrier elimination strategies.
- Selection process of new hires during year.
Annual findings will be presented in writing to TBG management with
recommendations for correcting problem areas.
4. PROGRAM ANALYSES- RECRUITMENT AND HIRING
It is TBG's policy to promote from within whenever possible. When this
is not possible, professional, administrative, technical, and clerical positions are
advertised in several local newspapers in the recruiting area in an attempt to
reach a diverse group of job candidates.
As provided by the U.S. Equal Employment Opportunity Commission
Management Directive 714 (EEO-MD-714), Section 13a(5), numerical objectives
(goals) are optional because of TBG's limited employment size. Due to the
dynamic nature of TBG's business and the market segment in which it operates,
such objectives would be restrictive to its ability to operate cost-effectively and
at the level of expertise for which it is known.
2
RIVER WHARF REALTY TRUST
5-YEAR TAX INCREMENT FINANCING PLAN
Base Value FY 00 $205,500 Tax Rate $31.65
Value After Building Renovation $450,000
Increment in Value $244,500 Base Year FY 2000
Rear Property Tax T at Tli HASWIT .......... TOM an.... 71axas.:: Aid Tax Benefit
. ...... ......
..........
............. .. ........ .........
.......... ..............
..........
.......... ......
10 Abil Bill Increment
............
BASE $205,500 $31.65 $6,504 0% $6,504 $0 $6,504 $0
1 $450,000 $31.65 $14,243 75% $6,504 $5,804 $12,308 $1,935
2 $450,000 $31.65 $14,243 85% $6,504 $6,578 $13,082 $1,161
3 $450,000 $31.65 $14,243 95% $6.504 $7,352 $13,856 $387
4 $450,000 $31.65 $14,243 95% $6,504 $7,352 $13,856 $387
5 $450,000 $31.65 $14,243 95% $6,504 $7,352 $13,856 $387
6 $450,000 $31.65 $14,243 100% $6,504 $7,738 $14,243 $0
TOTALS $91,962 $87,885 $4,257
NOTES
*TIF % = Percent of increment that is taxed
"Taxes Paid Each Year= Base Tax Bill plus Taxes on Increment
***Tax Benefit Each Year= Benefit to River Wharf Realty Trust
Base Value consists of FY2000 Assessed value of 18 Commercial Street
MAR-25-00 THU 12:59 PM THE BIOENGINEERING GROUP FAX NO. 978 740 0097 P. 1
Y
f l
THE BIOENGINEERING GROUP, INC.
18 Comnwrcial Street
Salem,Massachusetts USA 01970
Phone 978-740-0096
Fax 978-740-0097
Ematl nmtl@blosagioeerin&,om
WWW http:/Avww,bioengineering.eom
Fax Transmission
To:
�'olt.H �Lohh� n le AEP .
Fax No. o V 0 V
Date: \AQ,9- ,IS a o 0 0
Pages: (including cover)
From_
Subject:
Notes
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MAR-23-00 THU 1 :01 PM THE BIOENGINEERING GROUP FAX NO, 978 740 0091 P. 2
THE BIOENGINEERING GROUP,INC.
FINANCIAL MODEL CASH BASIS
MONTH OPENING YeW 2000 YEAR 200,
YEAR 2002 YEAq 200.1
�T- EST. E YEAR 2004 YEAR 2006
CASH ON
NO $/8187 53.626 $945 EST. EST. .
SALES S9 518 f55,215 $140,076
EST
39 ,000 a7.107,00p $1,275050 $1574,613
$2,880,636 E21o7,�4
A Ai LE 391 5111
f1' •1 1. 3 ,
2, ,700
P ES 3414,
1 .
REade,
1 , 526=4001. 7,181, 1.394.
UL 312. 1 311, s 0 31.941 0.500
pRECT .250 •0 '
IP S Eos $4 , S 85,191 14,290 137,075
37,200 6, 12 3 1, 18
33.400 1"o 10,0 9 IZ 23 $14.427
ESi3w � 3,340 ggg 808
UT1Ll $z
EXPE E2, 3z .40
4.400 f 4.725 8.198 T 8$5.280 ,827 R.353 .823
87801S
AGE/BHIP NG z400 10, 31 i, 18 3 5 18.03 379,236
TING NT. 81.9 5,B .879 539, 343,281
f ot5 $0.6fe
ICE ENS $ 310, 35,440
S11,5so313,28
1 939 19,127
FI E .800 9 . 1 31
T/ 28 1 eSIZO23
q O RAMC 1, f1, 31,452 ,8 0 f5
' 17
381,934
.800 280 .004
O P SIO, 0 8• f ,e
1 15, 2
$12.000 13, 28.034 1, 1
71 200 14.5 18.888 ,03
000 3
1 f 74.5 S4 $48.000
PENSE $18, ,038 5
f 1.500 7, row
1 1 f2 B32.73
318, $20.639
TOTAL CASH QPENSE 3788,770 aL022, 71 31.238.485
37,500,887 St 787.782 $2.057,090
DEBT SERVICE SBA IJNE f89,893 540.418
DEBT SERVICESALEM C7YY 30 50 $0 f0
39.472 38,1722$e.472 18472 SSA72 $8.472DEBT SERV.CONSTR,.SBA 312.!,9 a,a51e3.518 373,$46 513.638Y2(S8W $4850 4978 5,976 34.876$16.666 55,976 $5.978
518174So
so -so so
TOTAL EXPENSES $821,761 31,109,581 1 487
$7529883 11,798,767 32,085,076
ENDING CASH $3'$26 3945 $9515 f56275
$140.076 $262.4524
TAX 6 DEPR. 321,OOD 3,9,$50 318,953 S18,005 3,7,105
$76,249
MATED NET PROFIT
AFTEA INTEREST,TAXES
D DEPRECIATION 4 (829. 8.438) p
8122. 1 a 5
RESOLUTION
AUTHORIZING THE USE OF TAX INCREMENT FINANCING IN THE
SALEM ECONOMIC OPPORTUNITY AREA
WHEREAS,the City of Salem is part of the area designated the Beverly& Salem Regional
Economic Target Area and the Salem Economic Opportunity Area;
WHEREAS,there is strong support for economic development and the use of Tax Increment
Financing as an economic development tool to create jobs and encourage business
expansion and relocation to the City of Salem;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Salem that:
(1) Tax Increment Financing may be used as a tool to encourage economic
development within the Salem Economic Opportunity Area.
(2) The Mayor is hereby authorized to execute and implement Tax Increment
Financing agreements.
Adopted this day of ' 19
, 19_�by the Salem
City Council at a regular City Council meeting with a quorum present.
Neil J. HarAngton, May6r Date
ATTEST:
Deborah E. Burkinshaw, City Clerk
SEAL
t' - 53 MASON STREET
BTHE. SALEM,MA 019]0
IOENGINEERING 979-740-0096
-
GROUP, INC >. `...:978-740-0097 .
t - - -
W W W.BIOENGINEERING.COM`
Wednesday, August l8, 1999 RECEIVE
Mary,Cassidy
_R"7 AUh 23 Ohl' .8: 3
City of Salem
One'Salem Green SALEM
Salem,MA 01970 -PLANNING . DEPT .
'Dear Mary",
-I am writing to follow up on our recent conversations, and ask that you share this information ,
With Patrick and others who may able to help move things along. I am interested in,
promoting a coherent and'positive identity for the multi-purpose corridor along the North River "
in Salem;both as a property and business owner with self-interest there as well as a citizen and
professional looking to share my insi;hts and energies with the community as a whole: From
h
t ese combinedperspectives, I
believe I have a uni ue'and valuable contribution to'make to het
4 p
pull together the disparate, and-at times conflicting,needs, opportunities,constraints, and
interests-affecting the',area. As a trained professional active in the ecological restoration of river .
corridors,involving both te`chnological'as"well_as economic solutions,:I have turned a skilled eye -
toward.the fact-finding mission I undertook when recently deciding to buy property adjoining the
river., The North River Corridor has,a long and colorful history, and the more I.learn about it, the .
more astounded I am that few people know much. At this point in time, it appears that the City,
and the businesses active,in the,area are in a position to collaborate in carving out a clearer
identity that could,play its small yet significant part;in adding to,the rich tapestry of historical
and cultural identities in Salem., .
Myproposal is to designate the North River Corridor from North Si. to Flint St.,as River Wharf
Business Park, This area.is currently zoned as Business Park Development;'and suffers from a
fragmented identity.",Although;currmt park construction and road improvement work are
certainly improving the aesthetics of the area, as well as upgrading access and floodproofing, it
stops short of the mark. What is in ing is an effort, a little PR spin,if you will, that gracefully"
integrates the utilitarian role of the business park'district withthe people-friendly role of the
park. As it stands, many agree that the new park has just been plopped'between an inaccessible
road and rail corridor and a dusty, trucking lane,adjoining,some very run down commercial
properties. "Indeed, the,designated'access ways to the park require visitors to drive, walk, or bike
Jo an area that appears"quite"unwelcoming to the recreating,public. For the casual observer, such
as a tourist entering Salem,Jhe.scene also fails to make sense as one reads the landscape:, is it a
river you want to play near; or a canal polluted by modern industry? ;One wonders,what the.City
has in mind for the area; as the initial message appears muddled, if not conflicted.
With luck; the,entire.North.River Corridor from Salem Sound to the Peabody;border,"and
upstream aswell,will be undergoing,a renaissance: Vacant and underutilized properties will
find new uses with support from the Brownfields program-watershed restoration initiatives by' ,
Salem, Peabody,.and Salem:Sound'2000 will receive state and federal funding and achieve
implementation, and transportation improvements will promote greater access, use, and visibility
for the area. These ends will be best achieved if the remarkable histon of the river is;recognized
"" CONSULTANTS IN EROSION CONTROL WATER OUALITY.AND HABITAT RESTORATION
and embraced as a,vision for the future is forged. In fact, the first settlers of Salem with Conant
occupied the banks of the North River for its substantial fishing resources, and the first armed
conflict of the American Revolution was fought here due,to.the strategic location of the river
crossing though few know of Leslie's Retreat: The sheltered,waters were used for early:maritime
commerce connected to trade and whaling, acid iii Salem's heyday,homes along Federal'St.
boasted gardens thatsloped down to beautiful.gem-green marshes extending toward the
riverbank,and several wharves provided access. North of Flint S,t. in,the district still known.as
Blubber Hollow, whale fat was rendered in one of the first industrial'sites in Salem's history..
Ultimately it became one of the,earliest and most intensely.industrialized rivers as tanneries and
other businesses used the water for manufacturing processes as well as waste.conveyance. The
heavy waste discharges,'particularly of hides and toxic heavy metals, gave rise to problems first
with anthrax,the earliest occupational hazard identified in the industrial world, and mores'.
'recently with,chronie'water and.soil contamination. ,In response to.the declining condition of the
river, state and local funds were used at the turn of the century to fill iii,the saltmarshes,and old .
river channel:segments that had-become a foul-smelling-heahh hazard: The current development
of the area happened incrementally with little vision or coordination: The role a revitalized
North River Corridor will play in supporting the future prosperity of Salem should not be
,underestimated.
In creating an identity for the area, it seems appropriate to-create'signage at its access point off of
route 114. One sign that clearly states'the name RiverWharf Business Park,perhaps with-a
simple attractive logo;would go a longway toward helping any passersby,to make visual'sense
of the:area. If the-sign had an arrow indicating.how to access the Business Parkusing the quirky -
intersection with 114 and North St. Extension;it would greatly help:businesses that struggle
when deliveries,or visitors need to 'find their location: Further investment in this area,which is
being sought in conjunction with the Brownfields initiative, would be promoted by giving-
companiasthe'chance to have abetter address. For instance, `"14 kiverWharf Business Park off
North St. (i 14) in;Salem" is a lot more appealing than"1'4 Commercial St.,-no;not Commercial
St:.Extension, it's around the corner from North St:Extension just off Route 114; yes there is a
road there..."., However there is no need to change the names of the streets which might incur
heedless printing expenses for small businesses operating there, as.well as creating confusion
among truckers and others who regularly use street atlaks'to locate delivery locations.-In fact,
the streets:in this area are poorly identified on the common published atlases,.and better signage,
and an office park lot nurimbering system would alleviate existing confusion. Currently,business
owners in the area have pooled resources to erect:an unofficial sign off route 1.14 that is in- .
deteriorated condition, fails to.meet sign permitting codes,and hence has received numerous
formal and informal complaints. Additionally,the sign is-s-located inadequately to help visitors
enter the area, and is fundamentally illegibledue:to the factthat it attempts to list each company,
individually by name on very small'surfaces. One well designed sign would be an immrovement
for the.general community as well as the business e 1 a e her .I m it i
s s oc t d t e. t see s fa and appropriate,.rate. • ,
g y pP p
for the businesses to'share in the expenses, and for the Cityto organize the effort and incorporate
the Business Park identity into its active planning process for the area: ,It seems-a natural step to, ;
add onto the process that originally characterized the area as business park development for
zoning purposes. ;
A
I look forward to discussing these ideas.further and sharing additionalthoughts,about related
issues:affecting the corridor,and.the City in general. Thanks for your interest inthis matter,and
don't hesitate to call.'
Sincerely,
The Bioengineering Group,Inc
`Wendi Goldsmith
President
E t
53 MASON STREET
BTHE SALEM,MA 01970
IOENGINEERING 978-740-0096
GROUP, INC r^a:978-740-0097
W W WBIOENGINEERiNG.COM
Wednesday, August 18, 1999
Mary Cassidy
City of Salem
One Salem Green
Salem, MA 01970 7
Dear Mary:
,lam writing to follow upon our recent conversations, and ask that you share this information
with Patrick and others who may be able to help move things along. I am interested in
promoting a coherent and positive identity for the multi-purpose corridor along the North River
in Salem, both as a property and business owner with self-interest there as well as a citizen and
professional looking to share my insights and energies with the community as a whole. From
these combined perspectives, I believe I have a unique and valuable contribution to make to help
pull together the disparate, and at times conflicting, needs, opportunities, constraints, and
interests affecting the area. As a trained professional active in the ecological restoration of river
corridors, involving both technological as well as economic solutions, I have turned a skilled eye
toward the fact-finding mission I.undertook when recently deciding to buy property adjoining the
river. The North River Corridor has a long and colorful history, and the more I learn about it, the
more astounded I am that few people"know much. At this point in time, it appears that the City
and the businesses active in the area are in a position to collaborate in carving out a clearer
identity that could play its small yet.significant part in adding to the rich tapestry of historical
and cultural identities in Salem.
My proposal is to designate the North River Corridor from North St.to Flint St., as River Wharf
Business Park. This area is currently zoned as Business Park Development, and suffers from a
fragmented identity. Although current park construction and road improvement work are
certainly improving the aesthetics of the area, as.well as upgrading access and floodproofing, it "
stops short of the mark. What is missing is an effort, a little PR spin, if you will, that gracefully
integrates the utilitarian role of the businesspark district with the people-friendly role of the
park. As it stands, many agree that the new park has just been plopped between an inaccessible
road and rail corridor and a dusty, trucking lane adjoining some very run down commercial
properties. Indeed, the designatedaccess ways to the park require visitors to drive, walk, or bike "
to an area that appears quite unwelcoming to the recreating public. For the casual observer, such
as a tourist entering Salem,:the scene also fails to make sense as one reads the landscape: is it a
river you want to play near; or a canal polluted by modem industry? One wonders what the.City
has in mind for the area, as the initial message appears muddled, if not conflicted.
With luck, the entire.North.River Corridor from Salem Sound to the Peabody border, and
upstream as well, will be undergoing a renaissance. Vacant and underutilized properties will
find new uses with support from the Brownfields program,watershed restoration initiatives by
Salem, Peabody, and Salem$ound2000.will receive state and federal funding and achieve
implementation; and transportation improvements will promote greater access, use, and:visibility
for the area. These ends will be best achieved if.the remarkable history of the river is recognized
I.
-..CONSULTANTS IN EROSION CONTROL.,WATER QUALITY.AND HABITAT RESTORATION '
s
1
and embraced as a vision for the future is forged. In fact, the first settlers of Salem with Conant
occupied the banks of the North River for its substantial fishing resources, and the first armed
conflict of the American Revolution was fought here due to the strategic location of the river
crossing though few know of Leslie's Retreat. The sheltered waters were used for early maritime
commerce connected to trade and whaling, and in Salem's heyday, homes along Federal St.
boasted gardens that sloped down to beautiful gem-green marshes extending toward the
riverbank, and several wharves provided access. North of Flint St. in the district still known as
Blubber Hollow, whale fat was rendered in one of the first industrial sites in Salem's history.
Ultimately it became one of the earliest and most intensely industrialized rivers as tanneries and
other businesses used the water for manufacturing processes as well as waste conveyance. The
heavy waste discharges, particularly of hides and toxic heavy metals, gave rise to problems first_
with anthrax, the earliest occupational hazard identified in the industrial world, and more
recently with chronic water and:soil contamination. In response to the declining condition of the
river, state and local funds were used at the turn of the century to fill in the saltmarshes and old
river channel segments that had become a foul-smelling health hazard. The current development
of the area happened incrementally with little vision or coordination. The role a revitalized
North River Corridor will play in supporting the future prosperity of Salem should not be -
underestimated.
In creating an identity for the area, it seems appropriate to.create signage at its access point off of
route 114. One sign that clearly states the name River Wharf Business Park, perhaps with a
simple attractive logo, would go a long way toward helping any passersby to make visual sense
of the area. If the sign had an arrow indicating how to access the Business Park using the quirky
intersection with 114 and North St. Extension, it would greatly help businesses that struggle
when deliveries or visitors needtofind their location. Further investment inthis.area, which is
being sought in conjunction with the Brownfields initiative, would be promoted by giving
companies the chance-to have a better address. For instance, "14 River Wharf Business Park off
North St. (114) in.Salem" is,a lot more appealing than "14 Commercial St., no, not Commercial
St. Extension, it's around the corner from North St. Extension just off Route 114,.yes there is a
road.there...". However there is no need to change the names of the streets which might incur
needless printing expenses:for small businesses operating there, as well as creating confusion
among truckers and otherswho regularly use street atlases to locate delivery locations. In fact,
the streets in this area are poorly identified on the common published atlases, and better signage
and an office park lot numbering system would alleviate existing confusion. Currently,business
owners in the area have pooled resources to erectanunofficial sign off route 1.14 that is in
deteriorated condition, fails to meet sign permitting codes, and hence has received numerous
formal and informal complaints. Additionally, the sign is located inadequately to help visitors
enter the area, and is fundamentally illegible due to the fact that it attempts to list each company
individually by name on very small surfaces. One well designed sign would.be an improvement
for the general community as well_as the businesses located there. It seenms,fair and appropriate
for the businesses to share;in the expenses, and for the City to organize the effort and incorporate
the Business Park.identity into its activeplanning process for the area. It seems a.natural step to
add onto theP rocess that originally characterized the area as business park deveiopment:for
zoning purposes.
I look forward to discussing these ideas further and sharing additional thoughts about related
issues affecting the corridor and the City in general. Thanks for your interest in this matter, and
don't hesitate to call.
Sincerely,
The Bioengineering Group, Inc.
Wendi Goldsmith
President
J Essex M �
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April 29, 1999
To the Members of the Salem City Council:
We ask that you consider the following proposal in the interests of the
residents, businesses, and advocates of our community.
The geography of our city, and particularly its extensive coastline, has
influenced every aspect of its development. From early Native American
fishing settlements to the industrial development of the nineteenth century,
our land use patterns have been shaped by the water that surrounds us.
Today, as Salem seeks to redefine itself for business and tourism, it is
important that we celebrate this rich maritime legacy.
In 1629, when Roger Conant left Gloucester to found the town of
Naumkeag, he chose a'site near the marshes and tidal flats of the North .
River. This estuary supported a great diversity of marine life, including
extensive fishing.grounds and shellfish beds, while the river that flowed.into
it provided a reliable source of fresh water.
As Salem grew_and prospered,its>coastal-land use became increasingly
complex. The North River became a major shipbuilding site, and East India
trading ships.moorediri its channel at the wharfbehind the Peirce Nichols
mansion: In the mid=nineteenth+century,'when the shipping era passed,
industrial sites sprang up along the river's banks and brought a new wave of
-prosperity. Sadly, this development.alsoled to the degradation of the river
through careless disposal:of industrial waste. In the 1-880's,responding to
growing health hazards, the,City Council voted to fill most of the tidal flats
and divert the river into a>narrow channel:
As a community we are faced today with many decisions about our
economic future. We,areseeking to redefine our image to make the best
possible use of existing resources,,including the coastline, and we.are,
revitalizing our historic areas. The development of the National Maritime
Heritage Site,.and significant recent cleanup efforts at the North River,:point
the way for the.future; "
In keeping with this spirit of transformation, we propose that the city change
the name of Commercial Street, located next to the North River. The current
ial era neglecting the river's rich past. It also
name reflects only the industrial g g
stands in stark contrast with the new image created by the North River Canal
Park, currently under construction. The road serves as a major access route
to the park, which is itself in search of a thoughtful and fitting name.
We
propose the name "River Wharf Road" to replace "Commercial Street".
The name change will honor the river, celebrate Salem's maritime legacy,
and symbolize the restoration and revitalization of the North River area.
Respectfully,
MRY-17-99 10 :13 RM y P. 02
� � ( 7� CilCLlj ;J
Is there something to be ashamed of in
Salem's industrial history?
It seems that a group of business owners
thinks so. Wendi Goldsmith, president of
Bioengineer
in the
g Group, is proposing to Chan
the name of Commercial ge
1something'
more picturesque — amel
Road. y River Wharf
In a letter to the Salem City Council co-
signed by Chamber Director Ellen DiGeronimo'
and Karen Hopkins of Salem Sound 2000;
Goldsmith —whose company is located on
Commercial Street — suggests.that "sadly"
the industry along the North River, "led to
the degradation of the river through careless
disposal of industrial waste."
"The name change will honor the river, cel
-
Salem's Salem's maritime legacy, and sym-
bolize the restoration and revitalization of
the North River area," the letter says.
"I think it's a splendid idea," added Di-
Geronimo.
In City Council June 10, 1999 Referred to the Committee on Ordinances, Licenses &
Legal Affairs
Thursday, May 27, 1999
To the Salem City Council:
rIt
Please be advised that the following Business Owners,
Property Owners, Taxpayers, and Employees, are oppose4
to the proposed renaming of Commercial Street, Salem. o _T
N D
J �
Name Address Company -
/V-
-------------------------------------------------- _�---- -
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--------------
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---
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------------------------------------------------------------------------
-----------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
-------------------------=----------------------------------------------
-----------------------------------------------------------------------
Salem Evening News, Salem, MA — June 2, 1999
Letters to the editor
Street names could highlight maritime tradition
To the Editor.
The restoration of the North
River canal area in Salem has pro-
gressed very quickly this spring.
Already it is difficult to re- _ ., �r 3
member how neglected the land
between North and Flint Streets
LrC4T+
1
used to appear to visitors. When
the new park is completed, this
waterfront will become a recre-
ational destination and provide an
attractive greenbelt for one of the
major access routes to downtown _ k 4
f s
ig
As a symbol of the transforma- - a x`
tion of the riverfront, we propose
that the city change the name of
News file photo
Commercial Street, located,along New park being built along the North River canal In Salem Is giv-
the North River across from Ing a new look to Commercial Street seen on the right in this
Bridge Street. We propose the view looking towards the Salem Suede complex.
name "River Wharf Road" to com-
memorate Salem's maritime.his-
tory and celebrate the North River, constructed to reflect the char- see it as a step toward achieving a
a natural resource that has played atter of the new park, for which it balance between quality of life and
an important rollee i port and Salem's LsindusThe proposal to change is name will serve as a major access road. economic I enc
courag viability
interested in
tory aa Shipp
trial center. The name will re- stands before the City Council. the revitalization of the area to
member the prominent wharf that Some have criticized the initiative, contact their representatives and
once projected into the river be- claiming that it amounts to nega- show their suppooldsmith;President
hind the Peirce Nichols House on tive commentary on Salem's com- g The Bioengineering Group
Federal Street. merce and industry. Those of us Salem
Commercial Street has been re- who have supported the proposal
;f
53 MASON STREET
BIME SALEM,MA 01970
IOENGINEERING 978=740-0096
GROUP, INC .:97e-740-0097
+ I IV 1LD " WWWWOENGINEERING.COM
Tuesday, October 12, 1999
e Ii� r I®Y Y
StaniUsovicz �5. ' 4.i
Cityof Salem SAQ )�
One Salem Green P ' NNINCa d1�
Salem, NU 01979 �T " " ' 9y
- noy ops Sq
Dear Stan.• • oFF�c"N M '
Construction on the new office for The Bioengineering Group,is moving forward nicely. We
hope to wrap things up and take occupancy before year's end: I remain ever grateful for the.
support from you and your staff related to:the permitting and,financing:of the project. I would
like to invite you over for a personal tour once things are complete!
Early in the process of scouting.for a new office and contemplating the needed renovations,
Stephanie Cronin'of Mass Business Development suggested that our firm might well be eligible
for various forms of tax.incentives thither,agency helps to,coordinate. She.has now
recommended that I should write a letter to you in order to.initiate a dialog between her office
and your staff in:the planning:department: As I understand it, several opportunities exist that
,may match our eligibility including municipal and state tax breaks, but that Salem and.the state
both have to endorse,our proposal to move forward.,
There is much I still:need to learn about how these programs work, and I do not yet have a clear
idea of what maymaterialize. 'I would appreciate"achance to explore the`possibilities further
-.with your. and will gladly use any available assistanceto help'my small business grow and
prosper here m Salem:`
Sincerely,
The Bioengineering oup,`Inc:
Wendi Goldsmith
President
Cc: Stephanie Cronin
CONSULTANTS IN EROSION CONTROL.WATER QUALITY.AND HABITAT RESTORATION
CITY OF SALEM, MASSACHUSETTS
PLANNING DEPARTMENT
ONE SALEM GREEN
PATRICK REFFETT
• 01907
City Planner (978)745.9595 EM.311
Fax(978)740-0404
MEMORANDUM
TO: Wendi Goldsmith,The Bioengineering Group
FROM: Mary Cassidy,Economic Development Planner
RB: _ TIF Process for The Bioengineering Group ~�
DATE: January 14, 2000
I have been informed by the City Planner that the Mayor is interested in developing a five (5)
year Tax Increment Financing Plan at the following percentages: Year 1: 75% of the increment
plus the base tax bill, Year 2: 85%of the increment plus the base tax bill, Year 3: 95%of the
increment plus the base tax bill, Year 4: 95% of the increment plus the base tax bill, Year 5: 95%
of the increment plus the base tax bill. In year 6, 100% of the increment will be paid, along with
the base tax bill.
The are a number of items to be prepared in order to develop a Tax Increment Financing package
for review by the City Council. I have outlined the process below and have included the
necessary materials to get the process started. The first step is to prepare the Certified Project
Application and the TIF Plan. The development of the Certified Project Application and the TIF
Plan will involve a collaborative effort between you as the project proponent and myself as the
Planning Department representative. The approach I prefer is to have you fill out the forms as a
first draft with as much information as possible, and then for us to review it jointly. I have all the
forms on my computer so I can do the final drafts.
To qualify for tax benefits, an applicant must gain both local and state approval. The process is
as follows:
1. Prepare application for certified project status and include all
supporting materials.
2. Prepare TIF plan and include all supporting materials.
3. Prepare TIF Agreement, City Council Resolution to approve the Certified Project
and City Council Resolution to Authorize a TIF agreement.
4. Submit all of the above materials to the City Council with a cover letter from
Mayor Usovicz.
5. Obtain City Council Approval
}
i
6. Send entire Certified Project application to the Economic Assistance Coordinating
Council (EACC) of the Massachusetts Office of Business Development for State
approval.
The TIF always goes into effect the July 1 after the EACC approves the project. It is preferable
to activate the TIF as close to the completion of construction as possible. Therefore, we should
seek to submit the application to City Council this February or March, and if it is approved, to
the State as soon as Council acts. The TIF would begin on July 1, 2000 (FY 2001). The EACC
meets at the end of every month (except August).
Although the TIF benefits will not begin until July 1, 2000,the 5% investment tax credit can be
utilized as soon as EACC approval is obtained. The investment tax credit can be applied to
virtually any type of tangible, depreciable investment, including improvements to or construction
of a new facility and the purchase of capital equipment. The tax credit has a 10 year carry
forward provision which means that if income does not exceed investment, the tax credit may to
applied to several years of income, abating tax liability over time.
I am enclosing in this package the following items:
• Certified Project Application
• Tax Increment Financing Plan (outline sheet and form)
• Request for a Certificate of Good Standing form
• Sample Resolution Approving a Certified Project Application
• Sample Resolution Authorizing a TIF
• Sample Tax Increment Financing Agreement
• Previously approved TIF application for another firm
You can utilize the previously approved TIF Plan as a guide for the type of information you
should include in your application.
I believe this information provides a realistic picture of the process. Please contact me if you
have any questions about this matter.
06i30/g9 2: 11 inst. 793
BK ti,.l t �158x1 .,,i
' 1iC
QUITCLAIM DEED
/ I
I, THOMAS A. SULLIVAN, of Salem, Essex County, Massachusetts,
for consideration paid, and in full consideration of Three Hundred
Thousand and no/100ths Dollars ($300, 000 . 00) , grant to ROBERT G.
SOLOMON, TRUSTEE OF RIVER WHARF REALTY TRUST, u/d/t dated
June 30, 1999 and recorded immediately prior hereto, of
18 Commercial Street, Salem, MA 01970
WITH QUITCLAIM COVENANTS, the land in said Salem with the buildings
thereon, if any, bounded and described as follows:
Parcel No. 1
Beginn11 ing at a point on the northerly side of Commercial Street at
the SOUTHWESTERLY corner of land formerly of George F. Lord, thence
running in a Northerly direction along the Westerly property line
of the property now or formerly of George F. Lord, a distance of
eighty-nine and 85/100 (89 . 85) feet to a point; thence turning and
running in a
NORTHWESTERLY direction a distance of fifty and 05/100 (50 . 05) feet
along land now or formerly of H.P. Hood & Sons, Inc. ; thence
turning and running in a SOUTHERLY direction along land now or
formerly of the City of Salem, a distance of ninety-two and 57/100
(92 .57) feet; thence turning and running in an EASTERLY direction
along the Northerly street line of Commercial Street, a distance of
fifty (50) feet to the point of beginning.
Containing 4 , 560 square feet of land, as .shown on a plan filed with
the Essex South District Registry of Deeds entitled "Land of City
of Salem, Rear of North Street, Salem, Mass. , May 1955, Revised
October 1955 - Edgar W. Nickerson, City Engineer" in Book 4809 ,
Page 500.
Par
cel No. 2
The land in said Salem with the buildings thereon, if any,_,situated
on the North side of the North River Canal and bounded and
described as follows :
Beginning at the SOUTHEASTERLY corner of said lot on the
Northwesterly side of a proposed road the same point being three
hundred and eighty-eight and 44/100 (388 . 44) feet Southwesterly
from North Street; thence running
SOUTHWESTERLY by the Northwesterly street fine of said proposed
road seventy (70) feet to other land now or formerly of the City of
Salem; thence turning and running NORTHWESTERLY by said other land
now or formerly of the City of Salem, eighty-nine and 85/100
(89.85) feet to land now or formerly of H.P. Hood & Sons, Inc. ;
thence turning and running EASTERLY by said land now or formerly of
1
b\0��
H.P. Hood & Sons, Inc. , seventy and 12/100 (70 . 12) feet to land now
or formerly of Cook; thence turning and running SOUTHEASTERLY by
said land now or formerly of Cook, eighty-six and 6/100 (86 . 06)
feet to the point begun at.
Containing 6 , 156 square feet of land and being shown on a plan
entitled "Land of the City of Salem, rear of North Street May 1955,
Revised October =6a, Edgar W. Nickerson, City Engineer and
hereinbefore referred to. `1955
For title, reference is made to Deed of Catharyn H. Lord, dated May__._._ _
14, ISMOC and recorded with the Essex South District Registry of
Deeds in Book 5267 , Page 342 . x1965
WITNESS my hand and seal this, / day of 1999 .
�
Thomas A. Sullivan
COMMONWEALTH OF MASSACHUSETTS
Essex, ss.. 1999
Then personally appeared the above name Thomas A. Sullivan,
and acknowledged the foregoing instrument to be his free act and
deed, before me,
r
Notary Publc
'
My commissi n xpires:
Cerise Jaleflan, Notary Public
My Commission Expires, December 2,2005
lal W
Iii 6K / \/w tis
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a•. al s
1
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2
The Massachusetts Economic Development Incentive Program
CERTIFIED PROJECT APPLICATION
APPLICANT INFORMATION
1. Name and address of business(es) submitting this application (please list fiscal year end
for each business):
2. Name and address of project (if different from above):
3. Location of ETA:
4. Location of EOA:
5. Authorization: I/We, (print)
, of the
business(es) applying for Certified Project designation, hereby certify
that the information within this application is true and accurate, and
reflects the project's intentions for job creation and investment. I/We
understand that the information provided within this application shall
be binding for the duration of the project certification.
(Signature) (Date)
(Signature) (Date)
(Additional Signatures, if necessary) (Date)
Certified Project Application - Page 2
6. Nature and Purpose of Project: Describe briefly the nature and history of the business as
well as the specific expansion/growth/relocation plans: the level of new investment (with a
breakdown of type of expense: construction, renovation, acquisition of equipment, etc.) and
employment levels - both current and projected. Provide time frames for both the projected total
investment and job creation. As part of this narrative, please explain why the business is seeking
Certified Project designation.
- l
Certified Project Application - Page 3
7. Is this business new to Massachusetts? ❑ Yes ❑ No
If no:
• Where are the existing Massachusetts facilities?
• Will this project require/trigger the closing or consolidation of any Massachusetts
facilities? If yes, please explain.
8. Is this project an expansion of an existing business? ❑ Yes ❑ No
If yes, check the appropriate box: ❑ at existing location
❑ at new location in same municipality
❑ at new location in different municipality
9. Job Creation
In order to qualify for Certified Project status, the governing statute and regulations require
the creation of net, new, permanent full-time employees in Massachusetts. On the chart
provided (see next page), please fill in the blanks provided.
WORK FORCE ANALYSIS AND JOB CREATION PLAN
New Jobs:
JOBS,If any TOTAL,
EMPLOY- to be relocated Projected New New Jobs: New Jobs: New Jobs: New Jobs: New Jobs: Years 6-fo
MENT from another Permanent Year One Year Two Year Three Year Four Yeoar Five (29----1
If Applicable
LEVEL MAfacility Jobs (79—� (19-� �---� �--j
Total Employees at
Certified Project
Facility in Mass. — - - —
Total Employees in—
Massachusetts
o
Massachusetts at
other sites.
#of Employees at— --- -- ---- -- --- -- -- --
Certified Project
Location who live in .
the ETA of the
Certified Project.
#of Permanent Full-
Time Employees —
#of Permanent Part- _
Time Employees
#of Temporary Full- _
Time Employees
#of Temporary Part- _
Time Employees
JOBS BY (List#of Jobs, and Average Wage/Salary. Please feel free to use your company's classification system.
CLASSIFICATION
#of Management
Positions
#of.Professional
Postions -
#of Technical
Positions
# of Skilled Positions — -----
#of Unskilled
Positions
Certified Project Application - Page 4
10. Certification for Abandoned Buildings Does the proposed project involve the renovation
and reuse of an abandoned building? ❑ Yes ❑ No ❑ Unsure
If yes or unsure, please answer the following questions:
(a) How long has the building been vacant? (If known, state date)
(b) During this period of time, what percentage of the building was vacant and
unused? If the percentage varied during this time period, provide information
for each change in the percent of vacant space and the applicable time period.
11. Local Employment - What actions will you take to recruit employees from among residents
of the ETA?
Provide any information, documentation, or studies which demonstrate that:
(a) the business has the intention and capacity to achieve the anticipated level of new
permanent full-time jobs for residents of the municipality/Economic Target Area;
and
(b) taking into consideration existing economic conditions, the proposed project is
likely to succeed in creating and repining the anticipated level of new permanent
full-time jobs for residents of the municipality/Economic Target Area.
t
Certified Project Application - Page 5
12. Affirmative Action - Does the business have an Affirmative Action/Equal Employment
Opportunity Plan or Statement? ❑ Yes ❑ No
If yes, please attach a copy.
If no, describe the business' hiring policies and practices.
13. Agreement Between the Business and Area Banks - Describe briefly the business' local
banking relationship(s), if any. Does the institution with which the business banks
participate in the Massachusetts Capital Access Program, which is designed to commit a
portion of the business' deposits to fund loans to local businesses?
14. Economic Benefits of Project Certification - Provide a description of the economic
benefits that are anticipated for the business and the project, if the project is certified. For
example, describe anticipated state and local tax benefits, municipal road or infrastructure
improvements, assistance from local job training programs, the impact of local permit
streamlining and other benefits anticipated if the project is certified. Also, provide any
information, documentation or studies demonstrating any additional benefits (i.e. reduction
of blight, reuse of abandoned buildings, clean up of contaminated property, job training,
provision of day care, any contributions to the community, etc.) likely to accrue to the area
as a result of Certified Project designation.
Certified Project Designation - Page 6
SPECIAL REQUIREMENTS FOR REAL ESTATE PROJECTS
1. Will the business own or lease/rent the facility? ❑ Own ❑ Lease/Rent
If leasing/renting, please identify the developer/landlord, and state who will be the taxpayer
of record for the purpose of paying local real estate taxes.
If owning, will the business fully occupy the space? ❑ Yes ❑ No
If no, does the business intend to lease/rent the remaining space?
2. Describe how the various tax benefits and other economic incentives that will result from
Certified Project designation will be allocated among the business(es) developing the project
(i.e. a developer or landlord) and the business(es) intending to purchase, lease or rent space
at the facility (i.e. tenant or tenants).
SUPPLEMENTAL INFORMATION
1. Name(s) of the business(es) intending to take advantage of the state tax incentives
Business Name:
Federal Employer Identification //:
Address:
Phone:
Fax:
Contact Person:
Type of Organization (check that which applies):
❑ Corporation: ❑ For profit; ❑ S Corp.; ❑ Non-profit
❑ Business Trust
❑ Partnership: ❑ General Partnership; ❑ Limited Partnership
❑ Individual
Level of Interest: ❑ 5% Investment Tax Credit
❑ 10% Abandoned Building Tax Deduction (if applicable)
0 Local real estate tax incentive beneficiary
Certified Project Application - Page 7
2nd Business Name (if applicable):
Federal Employer Identification N:
Address:
Phone:
Fax:
Contact Person:
Type of Organization (check that which applies):
❑ Corporation ❑ For profit; ❑ S Corp.; ❑ Non-profit
❑ Business Trust
❑ Partnership ❑ General Partnership; ❑ Limited Partnership
❑ Individual
Level of Interest: ❑ 5% Investment Tax Credit
❑ 10% Abandoned Building Tax Deduction (if applicable)
❑ Local real estate tax incentive beneficiary
*** If there are more than two businesses intending to take advantage of the state tax
incentives associated with this project, please provide the above information for all
such businesses.
2. A - If a corporation, please list the names and addresses of the officers and directors of
said corporation, and any person and/or corporation with a financial interest of five percent
or greater in said corporation.
B - If a partnership, please list the names and addresses of all partners, and include the
proportionate share owned by each partner.
C - If a business trust, please name all members and beneficiaries of said trust.
3. Please provide the name, address, phone number and contact person for any
organizations which may own or control the applicant organization, or who are
affiliated with the applicant business organization.
4. Certificate of Good Standing - Please provide proof of good tax standing in the
Commonwealth of Massachusetts via a Certificate of Good Standing, which is a letter
issued by the Massachusetts Department of Revenue. To obtain a copy of a Certificate of
Good Standing, please see Attachment I of this application.
2123/96
02/24/1997 16: 51 617-887-6298 DOR COLLECT PAGE 02
COMMONWEALTH OF MASSACHUSETTS
DEPARTMENT OF REVENUE
ABCC/CERTIFICATE UNIT
P. O. BOX 7066
BOSTON, MA 02204
(617) 887-6550
REQUEST FOR A CERTIFICATE OF GOOD STANDING
DATE OF .REQUEST
FEDERAL I .D. #
OTHER NUMBERS)
NAME OF CORPORATION
D/B/A
ADDRESS
ZIP
TOWN
DAYTIME TELEPHONE --
PLEASE COMPLETE THE FOLLOWING BY CHECKING ALL THAT APPLY:
I SWEAR UNDER THE PAINS AND PENALTIES OF PERJURY THAT MY COMPANY IS NOT
RESPONSIBLE FOR AND DOES NOT COLLECT THE FOLLOWING TAXES : _-
INCOME TAX WITHHOLDING SALES/USE TAX
MEALS TAX ROOM OCCUPANCY
SIGNATURE OF CORPORATE OFFICER
PERSON TO CONTACT RELATIVE TO THIS REQUEST:
NAME --
RELATIONSHIP TO TAXPAYER:
DAYTIME TELEPHONE NUMBER WITH AREA CODE: --
ATTACH A CHECK FOR $10 . 00 MADE PAYABLE TO THE COMMONWEALTH OF
MASSACHUSETTS AND MAIL TO THE ABOVE ADDRESS •
Commonwealth of Massachusetts
Massachusetts Office of Business Development
c/o Springfield Technical community college
One Armory Square
Springfield, MA 01105
WILLIAM F. WELD TELEPHONE:
GOVERNOR (413) 784-1580
ARGEO PAUL-CELLUCCI - FAX:
LIEUTENANT GOVERNOR (413) 739-9175
DAVID A. TIBBETTS
SECRETARY
JOHN R. REGAN
EXECUTIVE DIRECTOR
MASSACHUSETTS OFFICE OF BUSINESS DEVELOPMENT
PROJECT APPLICATION SIGN-OFF
ECONOMIC DEVELOPMENT INCENTIVE PROGRAM
Date :
Municipality:
Economic Target Area :
Economic Opportunity Area :
Proposed Project :
I have reviewed the above referenced project application for
completeness in accordance with the provisions of the Economic
Development Incentive Program . I have made a preliminary
determination that this application is consistent with the
requirements of the program.
MOBD Case Manager
- - 83 MASON STREET
BTHE '. SALEM,MA 01970
IOENGINEERING yj i 979-740.0098
rT eu.979-760-0097
GROUP, INC v ` y.WW.BIOENGIN,EERiNG COM.
Monday, December.06, 1999 RECEIVE
Stan Usovlcz' 20 0"N —a_ Fid 13. 30 -
City of Salerri
One Salem Green SALEM
Salem, MA01970'
P'RNN!1NG DEP
Dear Stan:
Thank you for being so generous with your time during our meeting of November 15`h. l have
called Mary Cassidy to follow up on.our discussions,and we have',not yet been able to catch up
by phone.jjhought it practical to write a'brief letter that might.help in,pursuing'the next steps'
we had identified in cur.conversation'.
As we dtscussed,.our firm is able to qualify for 'support through the MA Office of Business
Development that greatly_assist in faeili'tating'the growth and enl ancing"the stability of
our new.company based in Salem,. Supportthrough,this program involves tax incentives through
both the City and the Commonwealth, and indeed requires at least a small commitment-on the• i
part of the`City to enable us to qualify.for a state tax credit for our real estate 'improvement
investments. !understand that City government must parcel out incentives such as tax,increment
_ financing very JudiciouslY, and thatreci rents are typically lar e employers or other catalYzin
g
businesses-such.as hotels: Ori the other hand, the City has-ari interest in offering a modest tax
break to our firm as it will make us eligible for a state tax credit. .The one-time cash sayings this
represents will put us in a position to invest'more'towards improving our building exterior and
purchasing equipment that will allow us to create more jobs. Salem would make a minor:'
concession the help us grow, urd within a few short years would be collecting even more tax
revenue as we re-invest that money'into ourreal estate improvements and new jobs. I would like .
to request a one-year 251/o tax increment:financing package that would"greatly alleviate the
financial pressure on my small and growing business.- I am making'the most out of the support
>; you have already offered;through a loari to finance S50,000'in renovations to-the:property at 18 .
Commercial St. With further.support from the Commonwealth, our firm would be in a strong
position to survive our,'growth phase and help contribute to the City'over the coming years
thrill ob rra_atic'" of 11. new skilled i,..OF-
- v'
Please let me know-how I can help,to pursue this proc .
Sincerely;
The Bioengineering'Group, inc.
31
Wend1 Goldsmith 99
Senior Bioengureer Q1�C �:��
CONSULTANTS,IN EROSION CONTROL WATER,QUALITY.AND HABITAT RESTORATION
FAX FROM:
CITY OF SALEM, MA
PLANNING DEPARTMENT
ONE SALEM GREEN
SALEM, MA 01970
(978) 745-9595
FAX (978) 740-0404
DATE: 31Z2-10D
TIME:
TO: 6r4G� '�" V C�
FROM:
FAX#: `74 0 C)() i 7
SUBJECT:
PAGES:
(Not including cover sheet)
COMMENTS: &' _ mt'-( �
713 i3 ,
---- --- ---
i Qv-eSt-iwr�
FICetMortgage
_ 53 MASON STREET
BTHE SALEM,MA 01970
IOENGINEERING '978-740-0096
GROUP INC.,
u:976-740-0097 -
� '.WWW.BIOENGINEER7NG.COM
March 3, 2000
Economic Assistance Coordinating Council
M0-,za.
Massachusetts Office of Business Development
One Ashburton Place-Room 2101 . '
Boston,MA 02108 -
To the Members of the Economic Assistance Coordinating Council.
The Bioenginecring'Group, Inc: has recently purchasedproperty:af 18 Commercial Street
in the City of Salem in a"commitment to,continue its business operations and to plan for'the growth and
„expansion of the company withimthe City,. We]rave already begun renovations and improvernmts of the
building and are dedicated to continuance and completion of those plans. In addition;we expect to
construct a greenhouse and to work toward changing the estheticsof our property"to encourage others in :
the development of the Business Park along the North River Corridor.
Our commitment to continue business in Salem is based or an'understanding with City officials;e '
in which the City will offer property tax credits to:make our project economically feasible. The
Bioengineering Group; Inc. would like to take advantage',of state investment credits,offered through '
the.Commonwealth's Economic Developmenthtcentive Program to contribute to the development and
visitor attraction of the newly'constructed.park area along the North River Comdor`
The economic and comriiunity benefits of this,prolect are described.wrthin our application'for
certified project status.'We invite your,interest and questions.
Sincerely,:
The Bioengineering Group,Inc..
Wendi Goldsmith :
President
4 64
OL
r _
CONSULTANTS N EROSION CONTROL.WATER OUALITY SAND HABITAT_RESTORATION
River Wharf Realty Trust
The Bioengineering Group, Inc.
Application for Certified Project Designation
Tax Increment Financing Plan
✓^-�t,o 5ai 5�ie'vING `•A-e>U -_ een -h_ �` _r cA,__M- '+nA- --
Presented to:
Salem City Council
March 30, 2000
g
CITY OF SALEM, MASSACHUSETTS
PLANNING DEPARTMENT
PATRICK REFFETT ONE SALEM GREEN
City Planner 01970
(978)745-9595 EM.311
Fax(978) 740-0404
May 25, 2000
Ms. Grace Spence
The Bioengineering Group, Inc.
18 Commercial Street
Salem, MA 01970
Dear Grace:
Enclosed please find a copy of the Certified Project Application for River Wharf Realty
Trust and The Bioengineering Group, Inc. that was submitted to the Economic Assistance
Coordinating Council of MOBD for consideration at their May meeting.
I enjoyed working with you to put this application together. You were always timely and
helpful.
Sincerely yours,
Mary C. Cassidy
Economic Development Planner
CITY OF SALEM, MASSACHUSETTS
PLANNING DEPARTMENT
PATRICK REFFETT ONE SALEM GREEN
City Planner 01970
(978)745-9595 Ext.311
Fax(978)740-0404
May 25, 2000
Ms. Wendi Goldsmith
President
The Bioengineering Group, Inc.
18 Commercial Street
Salem, MA 01970
Dear Wendi:
Enclosed please find a copy of the Certified Project Application for River Wharf Realty
Trust and The Bioengineering Group, Inc. that was submitted to the Economic Assistance
Coordinating Council of MOBD for consideration at their May meeting.
It was a pleasure developing this document with you and Grace Spence. I am sure we
will meet with success at the EACC and your TIF application will go ahead.
I wish you the best in your business endeavors and thank you for investing in Salem.
Sincerely yours,
Mary C. Cassidy
Economic Development Planner
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