DOYLE SAILMAKERS INC I
RESOLUTION 1
AUTHORIZING CERTIFIED PROJECT APPLICATION OF DOYLE
SAILMAKERS, INC.
WHEREAS, Doyle Sailmakers, Inc. has applied for designation as a Certified Project
under the Massachusetts Economic Development Incentive Program created by
Chapter 23A of Massachusetts General Laws;
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;
WHEREAS, Doyle Sailmakers, Inc. 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 96 Swampscott Road, Unit 8.
The legal description of this property is as follows and is within the boundaries
of the Salem Economic Opportunity Area:
That property situated in Salem in the County of Essex and Commonwealth of
Massachusetts, described as follows:
96 Swampscott Road, Salem, Massachusetts, Unit 8, described in the UNIT
DEED dated September 19, 2006 and filed on September 22, 2006 with the
Essex South Registry District of the Land Court as Document Number 471783.
The Unit is located in SALEM COMMERCE PARK CONDOMINIUM
created by Master Deed dated April 24, 2006 and filed on April 27, 2006 with
the Essex South Registry District of the Land Court as Document Number
466707, and noted on Certificate of Title Number C-205000, as amended by the
First Amendment to the Master Deed dated June 2, 2006 and filed on June 13,
2006 with said Registry District as Document Number 468416, and as further
amended by the Second Amendment to the Master Deed dated August 1, 2006,
and filed on August 4, 2006 with said Registry District as Document Number
470286, and by the Third Amendment to the Master Deed dated September 12,
2006 and filed on September 22, 2006 with said Registry District as Document
Number 471780, in accordance with the provisions of G.L. c. 183A.
The UNIT contains the AREA listed in the UNIT DEED and is laid out as
shown on the plans filed with the Master Deed and to which is affixed a verified
statement in the form provided for in G.L. c. 183A, Section 9.
WHEREAS, the City of Salem has agreed to offer Doyle Sailmakers, Inc. a Tax
Increment Financing Agreement;
WHEREAS, Doyle Sailmakers, Inc. will invest approximately $2,382,000 to construct a
new manufacturing space and will retain 31 jobs and create 12 new permanent,
full-time jobs for residents of the Beverly&Salem Regional Economic Target
Area and the City in 5 years.
NOW THEREFORE BE IT RESOLVED that the Salem City Council approves the
Certified Project application of Doyle Sailmakers, Inc. and forwards said application for
certification to the Massachusetts Economic Assistance Coordinating Council for
approval and endorsement.
Adopted this gg.day of March, 2007 by the Salem City Council at a regular City Council
meeting with a quorum present.
i
Date: 27 W .—
Kimberly Driscoll Mayor
ATTEST:
416—ZA
Che aPointe, City Clerk
SEAL
In City Council February 22, 2007
Referred to the Committee on Administration and Finance and co-post with the
Committee of the Whole
In City Council March 22, 2007
Adopted
Approved by the Mayor on March 26, 2007
r
RESOLUTION 2
AUTHORIZING A TAX INCREMENT FINANCING AGREEMENT FOR DOYLE
SAILMAKERS
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 create jobs and encourage business
expansion and relocation to the City of Salem;
WHEREAS, there is strong support for using Tax Increment Financing to encourage the
relocation of Doyle Sailmakers, Inc. to the City of Salem and renovation of 96
Swampscott Road, Unit#8, the property owned by R&J Swampscott Road LLC and
leased to Doyle Sailmakers, 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 a part of this Resolution.
(2) The area to be designated as a Tax Increment Financing Zone is:
That property situated in Salem in the County of Essex and Commonwealth of
Massachusetts described as follows:
96 Swampscott Road, Salem, Massachusetts, Unit 8, described in the UNIT DEED
dated September 19, 2006 and filed on September 22, 2006 with the Essex South
Registry District of the Land Court as Document Number 471783. The Unit is
located in SALEM COMMERCE PARI{ CONDOMINIUM created by Master
Deed dated April 24, 2006 and filed on April 27, 2006 with the Essex South
Registry District of the Land Court as Document Number 466707, and noted on
Certificate of Tide Number C-205000, as amended by the First Amendment to the
Master Deed dated June 2, 2006 and filed on June 13, 2006 with said Registry
District as Document Number 468416, and as further amended by the Second
Amendment to the Master Deed dated August 1, 2006, and filed on August 4, 2006
with said Registry District as Document Number 470286, and by the Third
Amendment to the Master Deed dated September 12, 2006 and filed on September
22, 2006 with said Registry District as Document Number 471780,in accordance
with the provisions of G.L. c. 183A.
The UNIT contains the AREA listed in the UNIT DEED and is laid out as shown
on the plans filed with the Master Deed and to which is affixed a verified statement
in the form provided for in G.L. c. 183A, Section 9.
(3) A map of the Tax Increment Financing Zone is hereby attached as Exhibit B and
made a part of this Ordinance.
(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, 2007
or the date which the Tax Increment Financing Agreement is approved by the
Massachusetts Economic Assistance Coordinating Council,whichever is later.
(7) The Mayor is hereby authorized to execute and implement the Tax Increment
Financing Agreement.
Adopted this day of JA, of March, 2007 by the Salem City Council at a regular City Council
meeting with a quorum present.
Date: 20
41berlytDriscofl, Ayor�
ATTEST:
qChe ointe, City Clerk
SEAL
EXHIBIT A: Tax Increment Financing Agreement
EXHIBIT B: Map of Tax Increment Financing Zone
EXHIBIT A
TAX INCREMENT FINANCING AGREEMENT
CITY OF SALEM, MASSACHUSETTS
and
DOYLE SAILMAKERS, INC.
This agreement is made this _ day of Match, 2007, 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, Kimberley Driscoll, (hereinafter called "the
CITY"), and DOYLE SAILMAKERS, a Massachusetts corporation,with a principal place of
business at 89 Front Street, Marblehead, MA 01945 (hereinafter called "the COMPANY"). This
Agreement will take effect as of July 1, 2007 (Fiscal Year 2008).
WHEREAS, the COMPANY wishes to locate a manufacturing business at 96 Swampscott Road in
Salem; 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 March Z&, 2007, 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 March 2007 to endorse the Tax
r .
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 renovate Unit 8 at 96 Swampscott Road in Salem. "The
FACILITY" as used herein means 96 Swampscott Road, Unit #8 containing 31,366
square feet to be renovated; that is improvements to the unimproved unit as of the date
of this agreement.
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.
3. THE CITY'S OBLIGATIONS
1. 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 2008 (July 1, 2007) and ending with fiscal year 2012.
During each year of this agreement, the COMPANY will pay taxes based on the
apportioned value of the current value for 96 Swampscott Road, on the unimproved
unit owned by the COMPANY, as of the date of this agreement (the base tax bill) and
on that portion of the value of the FACILITY which is not exempt under the
agreement.
2. The exemption schedule on the value of the FACILITY works as follows: for the first
year, the COMPANY will pay only the base tax bill and will be granted an exemption of
100% of the full value of the FACILITY. The full value of improvements to the
FACILITY is hereinafter called "the INCREMENT". In year two, the COMPANY will
pay taxes on 20% of the full value of the INCREMENT, plus the base tax bill. In year
three, the COMPANY will pay taxes on 40% of the full value of the INCREMENT,
plus the base tax bill. In year four, the COMPANY will pay taxes on 60% of the
INCREMENT,plus the base tax bill. In year five, the COMPANY will pay taxes on
80% 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
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
Incr g 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 DOYLE SAILMAKERS, INC.
44dA4- - -
Kimberley Drisc III,
Mayor Robert Doyle
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DOYLE SAILMAKERS
96 SWAMPSCOTT ROAD
UNIT #8
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DOYLE SAILMAKERS, INC.
FACT SHEET
PROJECT NAME: Doyle Sailmakers, Inc.
R'&J Swampscott Road LLC
OWNER INFORMATION: Robert Doyle
PROJECT LOCATION: 96 Swampscott Road, Unit 8
PROJECT SCOPE: R&J Swampscott Road LLC purchased and is
renovating approximately 31,000 square feet of space in a
170,000 square foot commercial condominium building
(former Atlantic Extrusions). Doyle Sailmakers, Inc. will
be relocating their operations from Marblehead. This
move will allow the company to consolidate two existing
locations to increase efficiency, expand into a new
product line (construction of airships), and increase
manufacturing capacity to meet a growing market
demand for its products.
TOTAL INVESTMENT: $2,382,000
EMPLOYMENT:
Existing Jobs (coming to Salem): 31, full-time permanent jobs
Project New Jobs (within 5 yrs): 12, full-time permanent jobs
Total New Jobs in Salem: 43
COMMUNITY BENEFITS: • Generation of $45,600 in ultimate annual tax revenue.
An increase of 68% over the current base value.
• Relocation of 31 existing permanent full-time jobs to
Salem.
• Creation of at least 12 permanent full-time jobs in
Salem.
• Job training for entry-level employees.
• Relocation of an internationally respected company
that will bring visibility to Salem and high-end clientele
to Salem hotels, restaurants, and other retail
businesses.
• Assistance in revitalizing part of a formally abandoned,
deteriorating structure.
COMPANY BACKGROUND: Doyle Sailmakers, founded in 1982 in Marblehead,is a
leading manufacturer of racing and cruising sails for large
boats as well as small boats. Doyle makes sails for boats
6 to 300 feet and currently has sails on two of the most
visible yachts in the world,Mirabella V and the Maltese
Falcon. They also produce most of the sails worldwide
for the women's keelboat used in the Olympics.
The company operates 50 Doyle lofts in 30 countries,
which maintain and build sails. Doyle is committed to
innovation and the evolution of sensible sailmaking
technology. Utilizing the hydrodynamic design advances
behind the famous winged keel of America's Cup winner
.Australia II, Doyle Sailmakers was the first to apply the
principle of Elliptical Aerodynamic Loading to sail
shapes, leading to fast and efficient sails for Doyle's
racing customers. Doyle's continual advances in racing
sails include Code Alpha asymmetric spinnakers, the
Doyle D4 fiber-membrane manufacturing process, and
Strais, the ultimate evolution of load-path, laid-fiber sails.
PROPOSED TIF PLAN:
Term: 5 years
Calculation of exemption: The base value of the condominium is $1,275,969,which
is an apportioned value of the entire building at 96
Swampscott Road. The base tax bill is $27,216. The
total value of the property after the renovation is
projected to be $2,037,900, which is based on 95% of the
purchase price plus 50% of the cost of real estate
improvements. The increment in value is $761,931.
Proposed exemption schedule*: YEAR COMPANY PAYS
1 Only base tax bill of$27,216
also see attached epreadsbeet 2 20% of increment, plus base tax
3 40% of increment, plus base tax
4 60% of increment, plus base tax
5 80% of increment, plus base tax
6 Taxed at full value
Estimated Value of EDIP Local Tax Incentives for Doyle Sailmakers
py y Incremental .Pro rt Tax Bill TIF/STp Yearl rExemptedx xempte Total Yearl Value } _' +'
RaterPeryx �� Pe Y 2 ,.... Y, z s f%lnnual " Y r _" r .'
„.Thousand i`' Assessed Value Vkforin'creme tai Exe pu n"/°'. Annuat Pioperty k " Base Tax:Bill Total;Taxes Paid Each
� m o w of Local^Tax r �
. 'Assessed Velt�e ?" ,k� Taxes < Personal � � IricentNes� n > E r Yeai`°"'
2008 $21.33 $761,931.00 ;•Pio ert ; <� 4," :.r�.,, :.�' ',n., `�'a*t � Yx._.:.`r' "'t* a,; %. s
2009 $21.33 $780,979.28 $16,251.99 1 $16,251.99 $0.00 $16,251.99 $27,216.00
$16,658.29 0.8 $13,326.63 $0.00 $27,216.00
2010 $21.33 $800,503.76 $17,074.75 0.6 $10,244.85 $0.00 $13,326.63 $27,216.00 $30,547.66
2011 $21.33 $820,516.35 $17,501.61 0.q $10,244.85 $27,216.00 $34,045.90
2012 $21.33 $841,029.26 $7,000.65 $0.00 $7,000.65 $27,216.00 $37,716.97
2013 $17,939.15 0.2 $3,587.83 $0.00 $3,587.83 $27,216.00
$21.33 $862,054.99 $18,387.63 0 $0.00 $0.00 $41,567.32
$0.00 $27,216.00 $45,603.63
'Assumes annual increase of I C',in assessed property values'
TOTALS $50,411.94 $0.00 $50,411.94 $163,296.00 $216,697.48
Base Value FY06 $ 1,275,969
Value After Building Renovation Purchase Price $ 1,882,000.00
$ 2,037,900
Increment in Value Cost of Improvements $ 500,000.00
$ 761,931 Total Investment
'Value determined by taking 95%of purchase price (1,787,900) $ 2,382,000.00
plus 50%of cost of RE improvements(250,000)
Estimated State and Municipal Tax Benefits
Estimated Value ofy r nr 'Estimated Value otiState,s 10%Nl sTotal+Esitmated Value of Local'
r State's 5'/o EOA'ITC x. m, ABTD"fi ,6, � 4 r
. ¢: .Tax.lnc-::v , ' Total 1/alue of Incentives
$119,100.00 $0.00 $50,411.94
$169,511.94
' ITC is calculated by Multiplying the Certified Project's Private Investment Number by.05(1,882,000+500,000=2,382,000)
"The value of the 10%ABTD, if applicable, should be determined by the Company's Tax Professionals.
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7-77
Certified Project Application —Page 1
The Massachusetts Economic Development Incentive Program
CERTIFIED PROJECT APPLICATION RECEIVED
FEB 2 0 2007
APPLICANT INFORMATION DEPT OF PLANNING
COMMUNriY DEVELOPMENT
1. Name and address of business(es)submitting this application (please list fiscal
year end for each business):
Doyle Sailmakers, Inc. Fiscal year end is August 31st
89 Front Street
Marblehead, MA 01945
R & J Swampscott Road LLC
96 Swampscott Road, Unit 8
Salem, MA 01970
2. Name and address of project(if different from above):
R & J Swampscott Road LLC Fiscal year end is December 31"
96 Swampscott Road, Unit 8
Salem, MA 01970
3. Location of ETA: Beverly and Salem Regional ETA
4. Location of EOA: Salem
S. Authorization: I/We, (print) Roe- 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. I
(Si9n� p�t���
(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.
Doyle Sailmakers is a well-known international sailmaking business that was started
by Robert Doyle in 1982 in Marblehead. Doyle makes sails for boats 6' 10 300' and
currently has sails on the two most visible yachts in the world, Mirabella V and the
Maltese Falcon. We also produce most of the sails worldwide for the women's
keelboat used in the Olympics. Doyle is a very healthy business that needs more
space to manufacture.This move will allow the company to consolidate two existing
locations to increase efficiency, expand into a new product line (construction of
airships), and increase manufacturing capacity to meet a growing market demand for
its products.
Currently Doyle has 31 employees in Marblehead in two locations. With the move to
Salem, there will be an immediate and ongoing need for growth in employment that
will benefit the ETA. We will train entry-level employees as there is no preparation in
any school system or work experience for sailmaking.
As we are all aware manufacturing in many fields is moving offshore. With it go jobs
previously available to the residents of our state and region.
Project designation to help Doyle Sailmakers manufacture a in t1he City of Salee are m and
iCertified
have the ability to provide job opportunities to the ETA.
The cost of the new building location at the Salem Commerce Park is $1,882.000.
The projected improvements to the location are in the range of$510,000. The
additional piece of equipment required for the airships cost $101,000. The loans
Doyle has for this project in the amount of$2,276,400. are projected over 20 years.
The build out of the space be
q�an in November and is scheduled to be finished for
Doyle to move in February 19 .
Certified Project Application —Page 3
7. Is this business new to Massachusetts? ❑ Yes X❑ No
If no:
• Where are the existing Massachusetts facilities?
• 89 Front Street, Marblehead, MA 01945
• 16 Lincoln Avenue, Marblehead, MA 01945
• Will this project require/trigger the closing or consolidation of any
Massachusetts facilities? If yes, please explain.
• The two leased facilities above will be consolidated into the
• new owned facility in Salem.
8. Is this project an expansion of an existing business? ❑X Yes ❑ No
If yes, check the appropriate box: ❑ at existing location
❑ at new location in same municipality
X ❑ 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 new, 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:
CURRENT JOBS, if any to be TOTAL, New Jobs: New Jobs: New Jobs: New Jobs: New Jobs: Years 6-10
EMPLOYMENT relocated from Projected New Year One Year Two Year Three Year Four Year Five (20�
LEVEL another MA facility Permanent Jobs (2005) (2006) (2007) (2008) (2009) If Applicable
Total Employees at
Certified Project
Facility in Mass. 0 31 12 4 2 2 2 2
Total Employees in
Massachusetts at
other sites. 6
#of Employees at
Certified Project
Location who live in
the ETA of the
Certified Pro'ect 3
#of Permanent Full-
Time Employees 30
#of Permanent Part-
Time Employees 7
#of Temporary Full-
Time Employees
#of Temporary Part-
Time Employees
JOBS BY
CLASSIFICATION List#of Jobs and Avera a Wa la . Please feel free to use your corn an 's classifications stem
#of Management
Positions 3 $100,000
#of Professional
Positions 4 $56,000
#of Technical
Positions 3 $57,000
#of Skilled Positions 27 $17 per hour
#of Unskilled
Positions
Certified Project Application —Page 4
Certified Project Application —Page 5
10. Certification for Abandoned Buildings — Does the proposed project involve the
renovation and reuse.of an abandoned building?
❑ Yes ❑X No ❑ Unsure
If yes or unused, please answer the following questions:
(a) How long has the building been vacant? (If know, 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
Doyle Sailmakers is committed to providing jobs to the ETA. To do this we will work
with local agencies, organizations and the Salem High School and Salem State
College career offices. We generally advertise in the local newspapers including but
not limited to the Salem News, Beverly Citizen, Danvers Herald, Peabody weekly
newspaper.
Due to space and labor limitations in 2006 Doyle Sailmakers had to contract out
$650,000 worth of sails. This represents 6 sailmakers worth of labor. The airships that
Doyle has a contract to build will require 4 full time people. Doyle is currently
contracting out $75,000 service work and not pursuing more due to space and labor
limitations. Plan is to increase service by $250,000 and do all the service in house.
This represents an additional 2.5 people. The preceding does not reflect speculative
ventures but known work that we have been unable to accept due to existing space
and labor limitations. The labor that is required for all of the above is entry-level labor
that is not likely to commute any distance.
The economic condition of the luxury sailing industry is quite healthy at the moment.
The average age of the sailor is increasing. This has the positive effect that the
Certified Project Application —Page 6
clientele requires and is willing to pay for more services. The economic condition of
the airship industry is that the supply is not keeping up with the demand. Doyle
Sailmakers has made the commitment of a larger manufacturing space in Salem in
order to create full time jobs that we feel will benefit the people of the ETA.
(b) taking into consideration existing economic conditions, the proposed
project is likely to succeed in creating and retaining the anticipated
level of new permanent full-time jobs for residents of the
municipality/Economic Target Area.
12. Affirmative Action — Does the business have an Affirmative Action/Equal
Employment Opportunity Plan or Statement? ❑ X Yes ❑ No
If yes, please attach a copy. — Doyle Sailmakers s Code of Conduct is attached, it
includes our Equal Opportunity Statement.
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?
Doyle Sailmakers, Inc. and R&J Swampscott LLC bank with Danversbank who
participates 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.
For example, describe the anticipated state and local tax benefits, municipal road or
infrastructure improvements, assistance for 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.
Doyle Sailmakers' plan for the newly acquired space on 96 Swampscott Rd. is to
increase our production of sails and sail repair and to enter the production of large
i
Certified Project Application —Page 7
lighter than air ships. We will be increasing our workforce to achieve this end. Our
current problem is that we have a very experienced work force, and thus a very
expensive work force. We need to balance this work force with entry-level workers
that we will train. We have already invested in two key employees being trained to
train others in the very exacting and demanding airship assembly process.
Doyle Sailmakers has considered space in Salem in the past but the high commercial
tax rate in Salem has always been the back breaker. However, this time Ken Goode
and Ben Wong were very helpful in pointing out the economic incentives available to
business. With this, coupled with our partial MA Development Finance Agency
Revenue bond, we made the decision to go forward with new space in Salem. We did
not get the 85% financing for which we had hoped, but only 65%. This reduced
amount of financing and costs of the build out is making the move much more
financially challenging than originally planned.
It should be important for the state of Massachusetts as well as the municipality of
Salem to retain manufacturing. The cost to manufacture in Massachusetts continues
to escalate and as a result companies are reducing manufacturing jobs by sending
work offshore. Doyle Sailmakers has made a commitment to expand our
manufacturing business and provide more jobs for the people of Massachusetts. We
are expanding into the airship field because we believe that is one business that will
not go offshore and is a source for entry-level jobs with training. We would appreciate
any help that the Mass Economic Development Incentive Program can provide.
As a historical note of interest to the City of Salem, the first sail loft in America was
located on Derby Wharf. Doyle Sailmakers is seeking to restore a tradition of
sailmaking to the city. Doyle is an internationally respected company that will bring
visibility to the City of Salem. Hotels, restaurants and other retail businesses will be
enhanced by Doyle being located in Salem as our high-end clientele will find the
charm of Salem irresistible.
i
Certified Project Application —Page 8
SPECIAL REQUIREMENTS FOR REAL ESTATE PROJECTS
1. Will the business own or lease/rent the facility? Xo 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? X❑ 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).
The 5% Economic Opportunity Credit will be applied to the cost of qualified property
as follows:
R&J Swampscott Road LLC — Building & Improvements estimated @
$2,382,000
Doyle Sailmaker, Inc. —Cost of new equipment estimated @ $101,000
The savings generated from the tax exemption schedule on future incremental real
property taxes will benefit R & J Swampscott Road LLC, the entity holding the
property.
SUPPLEMENTAL INFORMATION
1. Name(s)of the business(es) intending to take advantage of the state tax
incentives:
Business Name: Doyle Sailmakers, Inc.
Federal Employer Identification #: 04-2765012
Address: 89 Front Street, Marblehead, MA 01945
Phone: 781-639-1490
Fax: 781-639-1497
Contact Person: Robbie Doyle
Type of Organization (check all which applies):
u X Corporation ❑ For-Profit us-Corp u Non-profit
❑ Business Trust
❑ Partnership ❑ General Partnership E Limited Partnership
❑ Individual
Level of Interest: X ❑ 5% Investment Tax Credit
❑ 10%Abandoned Building Tax Deduction (if applicable)
Certified Project Application —Page 9
0 Local real estate tax incentive beneficiary
2nd Business Name (if applicable): R& J Swampscott Road LLC
Federal Employer Identification#: 51-0600068
Address: 96 Swampscott Road LLC, Unit 8
Salem, MA 01970
Phone: 781-039-1490
Fax: 781-639-1497
Contact Person: Robert Doyle
Type of Organization (check all which applies):
0 Corporation 0 For-Profit OS-Corp 0 Non-profit
0 Business Trust
i7 X Partnership 0 General Partnership 0 Limited Partnership
0 Individual
Level of Interest: XO 5% Investment Tax Credit
0 10%Abandoned Building Tax Deduction (if applicable)
X0 Local real estate tax incentive beneficiary
" if there are more than two businesses intending to take advantage of these
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.
Corporation = Doyle Sailmakers, Inc.
Name and Address of officers and directors:
• Robert Doyle, 43 Norman Street, Marblehead, MA
• Janet Doyle, 43 Norman Street, Marblehead, MA
• Sam Byrne, Bridge Street, Manchester, MA
• Gary Gregory, Millpond Road, Marblehead, MA
Person or corporation with greater than five percent interest
• Robert Doyle
• Gary Gregory
Partnership = R&J Swampscott Road LLC
Name and Addresses of Members
• Robert Doyle, 43 Norman Street, Marblehead, MA — 50% interest
• Janet Doyle, 43 Norman Street, Marblehead, MA — 50% interest
Certified Project Application —Page 10
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.
Please see above relationship between Doyle Sailmakers, Inc. and R&J Swampscott
Road, LLC
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 Certificate of
Good Standing, please see Attachment I of this application.
Copy of Certificate is attached.
In City Council February 22, 2007
Referred to the Committee on Administration and Finance and co-post with the Committee
of the WHole
In City Coucnil March 22, 2007
Adopted
Approved by the Mayor on March 26, 2007
� .
ATTEST:
qRY A. LAPOINTE
Y C ERK
•s
cltattx " -qorto /�as=Ck� 0,21W
th !
September 6, 2006
OM IT MAY CONCERN:
I hereby certify that a certificate of organization of a Limited Liability Company was
in this office by
r; R & J SWAMPSCOTT ROAD LLC
tdance with the provisions of Massachusetts General Laws Chapter 156C on September
06.
r I further certify that said Limited Liability Company has filed all annual reports due and
all fees with respect to such reports; that said Limited Liability Company has not filed a 1
Cate of cancellation or withdrawal; and that, said Limited Liability Company is in good
g with this office. '
'I also certify that the names of all managers listed in the most recent filing are: ROBERT i A
UYLE,JANET DOYLE
I further certify, the names of all persons authorized to execute documents filed with this
and listed in the most recent filing are: ROBERT E. DOYLE, JANET DOYLE
The names of all persons authorized to act with respect to real property listed in the most
f filing are: ROBERT E. DOYLE, JANET DOYLE
In testimony of which,
r,
I have hereunto affixed the u
id
Great Seal of the Commonwealth 3
o'er on the date first above written. of
Secretary of the Commonwealth
i•.
i
, /21/2006 12:43 FAX (®002/002
assachusetts
epartment
,.a ` Of
1 Revenue PO BOX 7010 BOSTON.MA 02204
ALAN LaBOVIDGE, COMMISSIONER
''.,; '• ROBERT O'NEILL,BUREAU CHIEF
'a
Notice: 80619
DOYLE SAILMAKERS, INC. T/P ID: 042765012
89 FRONT STREET Date: 9r21/06
MARBLEHEAD, MA.01945 Bureau: Certificate Unit
i<1
e, CERTIFICATE OF GOOD STANDING AND/OR TAX COMPLIANCE
The Commissioner of Revenue certifies as of the above date, that the above named individual
or entity is in compliance with its tax obligations payable under M.G.L..c.62C, Including
corporation excise, sales and use taxes, sales tax on meals,withholding taxes,room occupancy
excise and personal income taxes,with the following exceptions.
' This Certificate certifies that individual taxpayers are in compliance with income tax obligations
and any sales and use taxes,sales tax on meals,withholding taxes,and/or room occupancy
t taxes related to a sole proprietorship. Persons deemed responsible for the payment of these
taxes on behalf of a corporation, partnership or other business entity may not use our
automated process to obtain a certificate.
-'- This certificate does not certify that the entity's standing as to taxes such as unemployment
insurance administered by agencies other than the Department of Revenue, or taxes under any
" r other provisions of law. Taxpayers required to collect or remit the following taxes must submit a
separate request to certify compliance:Alcoholic Beverage Excise, Cigarette Excise,Sales Tax
on Boats, International Fuels Tax Agreement.Smokeless Tobacco or Ferry Embarkation.
THIS IS NOT A WAIVER OF LIEN ISSUED UNDER GENERAL LAWS, CHAPTER 62C,
SECTION 52.
1�
Very truly yours.
11
Robert O'Neill, Bureau Chief
cel W en]slang tew!10610� '..
d r
u•,
M9•
rk
;,
n
"Due Diligence Letter"
Doyle Sailmakers, Inc.
Doyle Sailmakers, Inc. is a manufacturer of sails, established in 1982 by Robert Doyle in
Marblehead Massachusetts where the company has leased space in the same building on
the third floor at 89 Front Street for 25 years. As the business grew an additional space
was leased at 16 Lincoln Avenue, also in Marblehead.
Doyle Sailmakers is in the business of servicing sails and producing new sails for boats
from 6' to 300'. Doyle is one of the most respected names in saihnaking in the world
with over fifty affiliated lofts in over twenty different countries. Currently Doyle has
sails on the two largest privately owned sailing yachts in the world that brings a lot of
visibility to the company.
With combined loft space of approximately 19,000 square feet between the two leased
buildings Doyle has been looking to expand for the past five years. Parking in down
town Marblehead is limited. Having manufacturing space on a third floor is not very
convenient. Having two different facilities in the same town is not cost effective.
Five years ago the search began for a larger, permanent space in Marblehead with the
following characteristics:
Approximately 30,000+ square feet of open space to allow for continued growth
in the sail manufacturing and servicing business as well as entry into a new
field of manufacturing, that being lighter than air ships. Had to be first floor.
A site that was"for sale"as opposed to "for lease".
No commercial/industrial sites that met the above requirements were found available in
Marblehead during the last five years. The company began to look to neighboring
cities/towns. The company became aware of the industrial property at 96 Swampscott
Road in Salem in the summer of 2006. After much consideration and inspection it was
deemed that the 32,000 square feet of basically open space met the company's
requirements for expansion. With the help of state agencies for funding of loans for Unit
8 as well as the build out, an offer to buy was made and papers passed in September
2006. The build out began in October and will be completed by the end of February 2007
at which time Doyle Sailmakers will take occupancy of its new space.
I, Robert Doyle, President and Founder of Doyle Sailmakers, Inc., hereby certify that this
statement is true and accurate.
R yle Date
tf'Z:??nL"'m-``�`
AMM-,�Y
JNTINUAT[®N SHEET __ . AlADOCUMENTG703
At.4 Document G702,APPLICATION AND CERTIFICATION FOR PAYMENT,containm8 PAGE 2 Of 2 PAGES
Contractor's sinned certification is attached. - APPLICATION NO: 2
In tabulations below,amounts arc_stated to the nearcst dollar. APPLICATION DATE: 01-01.07
Use Column 1 on Contacts where variable retainage for Iine items may apply, PERIOD TO: 01.01.07
ARCHITECTS PROJECT NO:
_.
ITEM DESCRIPTION OF WORK D E F G
NO. SCHEDULED WORK COMPLETED MATFJUALS H 1
VALUE FROM PREVIOUS THIS PERIOD PRESENTLY "" TOTAL % BALANCE RETAINAGE
_.INVOICES _ COMPLETED (G C) ---
. - _STORED AND STORED j REMANNG
00-TN - TODATE ON BUDGET
?w k)D OR Ej �- (ptE+F) --
INSURANCE@ 1.25% 522,600.00 $5,406:82 _ 59,139.87 `
$6,305.02 $14,546.69 64% $8,053.31
_." � $1,390.84 $2,105.55
` DEMOLITION - � � - � - _ - -
-jj _ $16,700.00 - -- - _ $3,496.39 55% $2,808.63
SITE WORK 58,140.00 - $8140.00 49% 58,560.00
-._ _
514450.00 _ 413,850.00 - - ---" - _ _
CONCRETE -- - - - .. 513,850.00 96%_ 5600.00
-"--- $17400.00 515,935.00 52,966.30 - -"
- _
CONCRETE FLOOR EPDXY -- - - $18,901.30 X090/ - '-
_. -.-__.
E 18,095.00 "-
- 56,240.00 -
" $8,250.00 "-- - .
M4SONRY - - 51,501.30)
_ - ---- - 514,490.00 80%_ 53,605.00
54,150.00 -__ . -
STRUCTURAL STEEEL/MISC.METALS 51,600.00 - ---'- --- _ "
-" --- 58,300.00 54 859.00 - - - - "-� 51 600'00 39% 52,550.00
CARPENTRY MATERIALS - - - - ._._ $1,336.00 - - - -- -
-" - $15,450.00 - ' $6,195.00 75% $2,105.00
CARPENTRY LABOR �" - � - - --- - -- _ -
- -. S16.400.00 . . . - 4_0.00
ROOFING ---. _ .. -. __ - ..- - - _ S4,345.00 $275.00 - - _... $4,620.00 _ 415450.00
55.000.00 .__-- -. ._. 28% $11.780.00
WINDOWS - - ..- -. - .0 ._. _$7,449.00 - -. -. .. .
DOORS&HARDWARE -- - _ S6 070.00 43 520.00 - - "- -- 1'�9=00 29% S3,551.00
_ . .- - 83.520.00 a _." .
5583000 "- - " -- - - 58/0 52.550.00
STOREFRONT DOORS " - - 57,794.99 - --- -
---"-- £7,794.99 134%
5564000 _ -" - - ' - - -I,964.99j
OVERHEAD DOOR_% _ . - . .__ _ _ - -- -__
41,715.00 - .- - _. . 40.00 __
METAL
STUD/DRYWALL _ _ $1,715.00 ---"-'- - _ _ %5.6400,00
.. . -._-- $1,715.00 100%
--- - - --- � - 526,195.00 -" 421 030.00 _- - -
CEILCNG � - __._. � .. _. _.._ SO.
00
____ _- 521,03000
- 6611 80%___ $5.165.00
"-- 46.890.00 -- __ - .__ ---
PRODUCTION FLOOR/INST4LL - - -
-G $15,125.00 - - -
6166-. 6661.. 50.00 --_
--
PANTING -5611_. -
- __. 6111...
._ _.. 90.00
1616_ . - --- --
_ - - 40.00
___
$6,250.00 _ -- SI5,I25.00
6116 _ --,
BATH ACCESSORIES � 5555 _.._.- _.. 1166
1111 _
- -- - - - - 4500.00 ._ -. . _ _ 1666. S0.00 _ - --- 56.250.00
PLUMBING 6655- 5565 '
6616_-_. ...__.
. - $23.050.00 _ $2,386.20 _._ 1111 50.00
FIRE PROTECTION $16,400.00 --- _ _ 5500.00 _
1616
HVAC .._ - - S19,800.00 - -- - -- -- - - - - 82/0_._... ---
4!8,786.20 0
--'- 41,710.00 $16,110.00 -- -"---- -" -_ _. 44,263.80
_"--- _ 417,820.00 0 ---,
ELECTRIC - _545.00000 .. . _ $18,000.00 $27,000.00 . . -- . 1166 / .
.. - $1!0.0000_0 5611. ._ _. ._ __ _ _ 545,000.00 00%
--- - _ 5556.. ." .. SI 98000
FIRE DETECTION S36,666.66 -- .---S45,
-- 1 40.00
-_ 1161 . _ - -�
$36,666.6633%-. - - 34
LIGHTING - . .. _. .. _ _..59,500.00 -- - - -- - . . ._ 6155 -- ' -- $73:333.34
.. - 16 . 6 . .
. -. 518,500.00
47,102.00 _
5616_ 6655- -- - --. 5555 ---
GC OVERHEADBPROFITC IS°/ _ _- - _ _
S7,10.2.00.
. . _.. _ __. _. � 38/0 _ 411,398.00
79150
$65, - -
"- 4113.10
-- 6611 4,56611.. 821,970.92
$36,484.02 - . . . -
_ .. - _. - -- 529,307.48
.. _1161 1566_
it
1166
1111 __
- 6166 _ 6166
GRAND TOTALS 5510.706.52
- $1126_57._96
4170,54929 S0.00 _ 428_3,20725 0
55_/0
� - 5227499_27 _ 50.00
Users ma obtain validation of this document b re uestln o}the license a cam leted AIA Document D407 •Cartiflwtlon of DocumenPs Autltentici
Mimi Michaud
From: Kelly Hurley
Sent: Monday, February 05, 2007 11:35 AM
To: Mimi Michaud
Subject: code of conduct
CODE OF CONDUCT
1. CODE
In any organization such as ours,it is necessary to set down rules governing conduct and
procedures to ensure smooth running of the Company. Any conduct which threatens personal
health,well-being or security of employees,or which endangers plant,property or product is
outside our accepted behavior.
2. GENERAL CONDUCT
All employees are expected to maintain a high standard of conduct and performance relating to
the operational requirements and reputation of the Company. This standard is to be
maintained at all times while engaged on Company business so as to avoid bringing the
Company into disrepute. The following indicates the Company position on a number of such
standards:
2.1 PUBLIC RELATIONS
Your future with the Company,your security and your promotion depends on the continuing
prosperity of the Company. Success however, is not achieved automatically, it must be worked
for. All employees are expected therefore to act in such a way as to maintain the reputation of
the Company.
2.2 EQUAL EMPLOYMENT OPPORTUNITIES
Doyle Sailmakers, Inc.is an Equal Opportunity Employer. This means that the company will
extend equal opportunity to all individuals without regard for race, religion, color,sex, national
origin, age, disability, handicaps or veteran status. This policy affirms Doyle Sailmakers'
commitment to the principles of fair employment and the elimination of all vestiges of
discriminatory practices that might exist. The company encourages all employees to take
advantage of opportunities for promotion as they occur.
2.3 SEXUAL HARASSMENT
Doyle Sailmakers will not, under any circumstances, condone or tolerate conduct that may
constitute sexual harassment on the part of its management, supervisors or non-management
personnel. It is our policy that all employees have the right to work in an environment free
from any type of illegal discrimination, including sexual harassment.Any employee found to
have engaged in such conduct will be subject to immediate discipline up to and including
discharge.
Any employee found to be engaged in the conduct of sexual harassment will be subject to
immediate discipline up to and including discharge.
i
Sexual harassment is defined as:
i. Making submission to unwelcome sexual advances or requests for sexual favors a term or
condition of employment;
2. Basing an employment decision on submission or rejection by an employee of unwelcome
sexual advances, requests for sexual favors or verbal or physical contact of a sexual nature;
3. Creating an intimidating, hostile or offensive working environment or atmosphere either by
a)verbal actions, including calling employees by terms of endearment; using vulgar or
demeaning language; or
b)physical conduct that interferes with an employee's work performance.
Doyle Sailmakers encourages healthy fraternization among its employees; however, employees,
especially management and supervisory employees, must be sensitive to acts of conduct that
may be considered offensive by fellow employees and must refrain from engaging in such
conduct.
It is also expressly prohibited for an employee to retaliate against employees who bring sexual
harassment charges or assist in investigating charges. Retaliation is a violation of this policy
and may result in discipline, up to and including termination. No employee will be
discriminated against or discharged because of bringing or assisting in the investigation of a
complaint of sexual harassment.
2.4 SAFETY& SECURITY
Safety is a joint venture at Doyle Sailmakers. Doyle Sailmakers provides a clean, hazard free,
healthy, safe environment in which to work in accordance with the Occupational Safety and
Health Act of 1970.As an employee,you are expected to take an active part in maintaining this
environment.You should observe all posted safety rules, adhere to all safety instructions
provided by your supervisor and use safety equipment where required.Your work place should
be kept neat, clean and orderly.
All safety equipment will be provided by Doyle Sailmakers,and employees will be responsible
for the reasonable upkeep of this equipment.Any problems with or defects in equipment
should be reported immediately to management.
As an employee,you have a duty to comply with the safety rules of Doyle Sailmakers,assist in
maintaining the hazard free environment, to report any accidents or injuries - including any
breaches of safety- and to report any unsafe equipment, working condition, process or
procedure, at once to a supervisor.
Employees may report safety violations or injuries anonymously to the Safety Officer, if they
are not the injured or violating party. NO EMPLOYEE WILL BE PUNISHED OR
REPRIMANDED FOR REPORTING SAFETY VIOLATIONS OR HAZARDS. However, any
deliberate or ongoing safety violation, or creation of hazard, by an employee will be dealt with
through disciplinary action by Doyle Sailmakers, up to and including termination.
Employees who are injured on the job at Doyle Sailmakers are covered by Worker's
Compensation Insurance. It is your responsibility to immediately notify your immediate
supervisor- or in the absence of your supervisor,the next available supervisor- of any injuries
you sustain while on the job at Doyle Sailmakers.
2
This supervisor will notify your personnel representative.The company encourages injured
employees to seek immediate medical attention.All medical expenses related to the treatment
of an injury,sustained on the job,are paid in full direct to the medical providers.After a
specified waiting period,you are also eligible for disability payments set forth by state law,
where necessary.
The Worker's Compensation plan is administered by a separate insurance company who will
be notified by your personnel representative.You will be contacted by a representative of the
administering company. Information on the current company administering this plan will be
provided to you by your personnel representative and is available on posters displayed in your
work area.Additional information on Worker's Compensation Insurance is available through
the Accounting office.
2.5 LOSS CONTROL
All incidents or accidents involving loss or damage to Company property must be reported
immediately to the supervisor concerned.
2.6 PERFORMANCE OF DUTIES
Employee's attitudes to work and performance of duties are to be of a consistently high
standard. The Company's standard procedures for all jobs must be followed to ensure integrity
of service or result, quality of performance and product and timeliness of completion. In
particular,the Company's procedures of accounting, contract administration and quality
assurance must be followed.
2.7 ABSENCE/TARDINESS
Employees who cannot attend work because of personal illness or emergency are to notify their
manager or supervisor as soon as possible on the day of absence. All other absences must have
prior approval of the manager or supervisor. A medical certificate will be required.
Tardiness will not be tolerated. If an employee is late for work with frequency he/she will be
dismissed. Productivity amongst the group is affected by each person's promptness.
2.8 PERSONAL APPEARANCE
Personal appearance is a matter of Employee's own personal taste and common sense,but the
Company does expect employees to look neat and dress appropriately for their jobs. Where
protective clothing and/or equipment is issued, it must be worn/used.
2.9 SECONDARY EMPLOYMENT AND COMMERCIAL INTERESTS
The company has no objection to Employees taking on secondary employment, being self-
employed, or involved in other commercial activities providing:
a) Prior consent &knowledge of the employee's manager has been obtained,
b) The secondary employment does not adversely affect the performance of duties,
c) The Company has first call on employee's services,
d) Company property,facilities and information are not used in activities that are
not connected with Company business interests,
d) The work takes place entirely outside employee's working hours with the
3
Company,
d) There is no possible conflict of interest or activities between the Company and
those with whom it does business,
g) Company employees and members of their families should not accept gifts and favors
from any source that could be seen as influencing a business relationship.
2.10 SMOKING
Doyle Sailmakers endeavors to provide a healthy environment,therefore prohibits any form of
tobacco consumed in company buildings.Additionally, no smoking is allowed within ten (10)
y feet of exterior entranceways. Smoking breaks are to be taken at the two`set break periods or at
lunch, no other time is acceptable.
2.11 ANTI SUBSTANCE ABUSE
Doyle Sailmakers takes seriously the problem of drug and alcohol abuse, and is committed to
provide a substance abuse free work place for its employees.This policy applies to all
employees of Doyle Sailmakers,without exception, including part-time and temporary
employees.
No employee is allowed to consume, possess,sell or purchase any alcoholic beverage on any
property owned by or leased on behalf of Doyle Sailmakers, or in any vehicle owned or leased
on behalf of Doyle Sailmakers. No employee may use, possess,sell,transfer or purchase any
drug or other controlled substance on any property owned by or leased on behalf of Doyle
Sailmakers, or in any vehicle owned or leased on behalf of Doyle Sailmakers. Exceptions are
aspirin or ibuprofen based products and legal drugs that have been prescribed to that
employee, which are being used in the manner prescribed.
Doyle Sailmakers will not tolerate employees who report for duty while impaired by use of
alcoholic beverages or drugs.
All employees should report evidence of alcohol or drug abuse to a supervisor or a personnel
representative immediately. In cases where the use of alcohol or drugs pose an imminent
threat to the safety of persons or property, an employee must report the violation. Failure to do
so could result in disciplinary action for the non-reporting employee.
2.12 CONFIDENTIALITY
Any confidential information including trade secrets for example relating to business
connections and technical information or processes,clients or suppliers lists of private affairs
acquired by an employee in the course of employment following the cessation of employment
must remain confidential.
Kelly Hurley
Doyle Sailmakers
89 Front Street
Marblehead, MA 01945
Tel 781.639.1490
Fax 781.639.1497
www.doylesailsxom
4
,n
TAX INCREMENT FINANCING AGREEMENT
CITY OF SALEM, MASSACHUSETTS
and
DOYLE SAILMAKERS, INC.
This agreement is made this 4 day of March, 2007, 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, Kimberley Driscoll, (hereinafter called "the
CITY"), and DOYLE SAILMAKERS,a Massachusetts corporation,with a principal place of
business at 89 Front Street, Marblehead,MA 01945 (hereinafter called"the COMPANY"). This
Agreement will take effect as of July 1,2007 (Fiscal Year 2008).
WHEREAS,the COMPANY wishes to locate a manufacturing business at 96 Swampscott Road in
Salem; 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 March 22 ,2007,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 March 2Z , 2007 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
mutuallyagree as follows:
A. THE COMPANY'S OBLIGATIONS
1. The COMPANY shall renovate Unit 8 at 96 Swampscott Road in Salem. "The
FACILITY" as used herein means 96 Swampscott Road, Unit # 8 containing 31,366
square feet to be renovated;that is improvements to the unimproved unit as of the date
of this agreement.
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.
THE CITY'S OBLIGATIONS
1. 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)
P �
years,beginning with fiscal year 2008 Duly 1,2007) and ending with fiscal year 2012.
During each year of this agreement,the COMPANY will pay taxes based on the
apportioned value of the current value for 96 Swampscott Road, on the unimproved
unit owned by the COMPANY, as of the date of this agreement (the base tax bill) and
on that portion of the value of the FACILITY which is not exempt under the
agreement.
2. The exemption schedule on the value of the FACILITY works as follows: for the fust
year,the COMPANY will pay only the base tax bill and will be granted an exemption of
100% of the full value of the FACILITY. The full value of improvements to the
FACILITY is hereinafter called"the INCREMENT". In year two,the COMPANY will
pay taxes on 20% of the full value of the INCREMENT,plus the base tax bill. In year
three,the COMPANY will pay taxes on 40% of the full value of the INCREMENT,
plus the base tax bill. In year four,the COMPANY will pay taxes on 60% of the
INCREMENT,plus the base tax bill.In year five,the COMPANY will pay taxes on
80% 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
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.COMPANY decides to expand the facility at anytime 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 fust above written.
CITY OF SALEM DOYLE SAIL , INC.
l
KimberleyDriscoll, yor R` e Doyle,President
RESOLUTION 1
AUTHORIZING CERTIFIED PROJECT APPLICATION OF DOYLE
SAILMAKERS, INC.
WHEREAS, Doyle Sailmakers, Inc. has applied for designation as a Certified Project
under the Massachusetts Economic Development Incentive Program created by
Chapter 23A of Massachusetts General Laws;
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;
WHEREAS, Doyle Sailmakers, Inc. 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 96 Swampscott Road, Unit 8.
The legal description of this property is as follows and is within the boundaries
of the Salem Economic Opportunity Area:
That property situated in Salem in the County of Essex and Commonwealth of
Massachusetts, described as follows:
96 Swampscott Road, Salem, Massachusetts, Unit 8, described in the UNIT
DEED dated September 19, 2006 and filed on September 22, 2006 with the
Essex South Registry District of the Land Court as Document Number 471783.
The Unit is located in SALEM COMMERCE PARK CONDOMINIUM
created by Master Deed dated April 24, 2006 and filed on April 27, 2006 with
the Essex South Registry District of the Land Court as Document Number
466707, and noted on Certificate of Title Number C-205000, as amended by the
First Amendment to the Master Deed dated June 2, 2006 and filed on June 13,
2006 with said Registry District as Document Number 468416, and as further
amended by the Second Amendment to the Master Deed dated August 1, 2006,
and filed on August 4, 2006 with said Registry District as Document Number
470286, and by the Third Amendment to the Master Deed dated September 12,
2006 and Filed on September 22, 2006 with said Registry District as Document
Number 471780, in accordance with the provisions of G.L. c. 183A.
The UNIT contains the AREA listed in the UNIT DEED and is laid out as
shown on the plans filed with the Master Deed and to which is affixed a verified
statement in the form provided for in G.L. c. 183A, Section 9.
WHEREAS, the City of Salem has agreed to offer Doyle Sailmakers, Inc. a Tax
Increment Financing Agreement;
WHEREAS,Doyle Sailmakers, Inc. will invest approximately$2,382,000 to construct a
new manufacturing space and will retain 31 jobs and create 12 new permanent,
full-time jobs for residents of the Beverly & Salem Regional Economic Target
Area and the City in 5 years.
NOW THEREFORE BE IT RESOLVED that the Salem City Council approves the
Certified Project application of Doyle Sailmakers, Inc. and forwards said application for
certification to the Massachusetts Economic Assistance Coordinating Council for
approval and endorsement.
Adopted this day of March, 2007 by the Salem City Council at a regular City Council
meeting with a quorum present.
Date:
Kimberly Driscoll Mayor _ 1t
ATTEST:
Che aPointe, City Clerk
SEAL
In City Council February 22, 2007
Referred to the Committee on Administration and Finance and co-post with the
Committee of the Whole
In City Council March 22, 2007
Adopted
Approved by the Mayor on March 26, 2007
RESOLUTION 2
AUTHORIZING A TAX INCREMENT FINANCING AGREEMENT FOR DOYLE
SAILMAKERS
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 create jobs and encourage business
expansion and relocation to the City of Salem;
WHEREAS, there is strong support for using Tax Increment Financing to encourage the
relocation of Doyle Sailmakers, Inc. to the City of Salem and renovation of 96
Swampscott Road, Unit #8, the property owned by R&J Swampscott Road LLC and
leased to Doyle Sailmakers, 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 a part of this Resolution.
(2) The area to be designated as a Tax Increment Financing Zone is:
That property situated in Salem in the County of Essex and Commonwealth of
Massachusetts described as follows:
96 Swampscott Road, Salem, Massachusetts, Unit 8, described in the UNIT DEED
dated September 19, 2006 and filed on September 22, 2006 with the Essex South
Registry District of the Land Court as Document Number 471783. The Unit is
located in SALEM COMMERCE PARK CONDOMINIUM created by Master
Deed dated April 24, 2006 and filed on April 27, 2006 with the Essex South
Registry District of the Land Court as Document Number 466707, and noted on
Certificate of Title Number C-205000, as amended by the First Amendment to the
Master Deed dated June 2, 2006 and filed on June 13, 2006 with said Registry
District as Document Number 468416, and as further amended by the Second
Amendment to the Master Deed dated August 1, 2006, and filed on August 4, 2006
with said Registry District as Document Number 470286, and by the Third
Amendment to the blaster Deed dated September 12, 2006 and filed on September
22, 2006 with said Registry District as Document Number 471780, in accordance
with the provisions of G.L. c. 183A.
.r
The UNIT contains the AREA listed in the UNIT DEED and is laid out as shown
on the plans filed with the Master Deed and to which is affixed a verified statement
in the form provided for in G.L. c. 183A, Section 9.
(3) A map of the Tax Increment Financing Zone is hereby attached as Exhibit B and
made a part of this Ordinance.
(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, 2007
or the date which the Tax Increment Financing Agreement is approved by the
Massachusetts Economic Assistance Coordinating Council, whichever is later.
(7) The Mayor is hereby authorized to execute and implement the Tax Increment
Financing Agreement.
Adopted this day of J day of March, 2007 by the Salem City Council at a regular City Council
meeting with a quorum present.
4KimberlytDriscoU, ayor
- -\ Date:
ATTEST:
Cheryl L ointe, Ctty Clerk
SEAL
EXHIBIT A: Tax Increment Financing Agreement
EXHIBIT B: Map of Tax Increment Financing Zone
r
EXHIBIT
A
TAX INCREMENT FINANCING AGREEMENT
CITY OF SALEM, MASSACHUSETTS
and
DOYLE SAILMAKERS, INC.
This agreement is made this_day of March, 2007, 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, Kimberley Driscoll, (hereinafter called "the
CITY"), and DOYLE SAILMAKERS, a Massachusetts corporation,with a principal place of
business at 89 Front Street, Marblehead, MA 01945 (hereinafter called"the COMPANY"). This
Agreement will take effect as of July 1, 2007 (Fiscal Year 2008).
WHEREAS, the COMPANY wishes to locate a manufacturing business at 96 Swampscott Road in
Salem;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 March a&, 2007, 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 Match .�, 2007 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 renovate Unit .�
8 at 96 Swampscott Road in Salem. The
FACILITY" as used herein means 96 Swampscott Road, Unit#8 containing 31,366
square feet to be renovated; that is improvements to the unimproved unit as of the date
of this agreement.
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,
3. THE CITY'S OBLIGATIONS
1. The CITY shall grant a tax inctement 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 2008 Quly 1, 2007) and ending with fiscal year 2012.
During each year of this agreement, the COMPANY will pay taxes based on the
apportioned value of the current value for 96 Swampscott Road, on the unimproved
unit owned by the COMPANY, as of the date of this agreement (the base tax bill) and
on that portion of the value of the FACILITY which is not exempt under the
agreement.
2. The exemption schedule on the value of the FACILITY works as follows: for the first
year, the COMPANY will pay only the base tax bill and will be granted an exemption of
100% of the full value of the FACILITY. The full value of improvements to the
FACILITY is hereinafter called "the INCREMENT'. In year two, the COMPANY will
pay taxes on 20% of the full value of the INCREMENT, plus the base tax bill. In year
three, the COMPANY will pay taxes on 40% of the full value of the INCREMENT,
plus the base tax bill. In year four, the COMPANY will pay taxes on 60% of the
INCREMENT, plus the base tax bill. In year five, the COMPANY will pay taxes on
80% 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
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 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 fust above written.
CITY OF SALEM DOYLE SAILMAKERS, INC.
Kitnberley Drisc ll, Mayor Robert Doyle
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YLE SAILMAKERS
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DOYLE SAILMAKERS, INC.
FACT SHEET
.PROJECT NAME: Doyle Sailmakers, Inc.
R&J Swampscott Road LLC
OWNER INFORMATION: Robert Doyle
PROJECT LOCATION: 96 Swampscott Road, Unit 8
PROJECT SCOPE: R&J Swampscott Road LLC purchased and is
renovating approximately 31,000 square feet of space in a
170,000 square foot commercial condominium building
(former Atlantic Extrusions). Doyle Sailmakers, Inc. will
be relocating their operations from Marblehead. This
move will allow the company to consolidate two existing
locations to increase efficiency, expand into a new
product line (construction of airships), and increase
manufacturing capacity to meet a growing market
demand for its products.
TOTAL INVESTMENT: $2,382,000
EMPLOYMENT:
Existing Jobs (coming to Salem): 31, full-time permanent jobs
Project New Jobs (within 5 yrs): 12, full-time permanent jobs
Total New Jobs in Salem: 43
COMMUNITY BENEFITS: • Generation of $45,600 in ultimate annual tax revenue.
An increase of 68% over the current base value.
• Relocation of 31 existing permanent full-time jobs to
Salem.
• Creation of at least 12 permanent full-time jobs in
Salem.
• Job training for entry-level employees.
• Relocation of an internationally respected company
that will bring visibility to Salem and high-end clientele
to Salem hotels,restaurants, and other retail
businesses.
• Assistance in revitalizing part of a formally abandoned,
deteriorating structure.
t
COMPANY BACKGROUND: Doyle Sailmakers, founded in 1982 in Marblehead, is a
leading manufacturer of racing and cruising sails for large
boats as well as small boats. Doyle makes sails for boats
6 to 300 feet and currently has sails on two of the most
visible yachts in the world,Mirabella V and the Maltese
Falcon. They also produce most of the sails worldwide
for the women's keelboat used in the Olympics.
The company operates 50 Doyle lofts in 30 countries,
which maintain and build sails. Doyle is committed to
innovation and the evolution of sensible sailmaking
technology. Utilizing the hydrodynamic design advances
behind the famous winged keel of America's Cup winner
Australia II, Doyle Sailmakers was the first to apply the
principle of Elliptical Aerodynamic Loading to sail
shapes, leading to fast and efficient sails for Doyle's
racing customers. Doyle's continual advances in racing
sails include Code Alpha asymmetric spinnakers, the
Doyle D4 fiber-membrane manufacturing process, and
Strais, the ultimate evolution of load-path, laid-fiber sails.
PROPOSED TIF PLAN:
Term: 5 years
Calculation of exemption: The base value of the condominium is $1,275,969, which
is an apportioned value of the entire building at 96
Swampscott Road. The base tax bill is $27,216. The
total value of thero ex after the renovation P P tY is
projected to be $2,037,900, which is based on 95% of the
purchase price plus 50% of the cost of real estate
improvements. The increment in value is $761,931.
Proposed exemption schedule*: YEAR COMPANY PAYS
1 Only base tax bill of$27,216
*also see attached ipreads'beei 2 20% of increment, plus base tax
3 40% of increment, plus base tax
4 60% of increment, plus base tax
5 80% of increment, plus base tax
6 Taxed at full value
Estimated Value of EDIP Local Tax Incentives for Doyle Sailmakers
nua
}°k Municipal Tax F�, z :'^ �c I,o)ect
u E :.Incremental Pro a} Flcempted ealP y'; To I Y it Val "� TMt> ,t
FY ; ';Rate?er ° pertY Tax Bill TiF/STA YeagY Annual '
Thousand > Asse sed Value *for_Incrarlfental aSxemption%` r ual Pro r Persgnal"a f 's , Taxi dl < 1
ne�Y 4 {oca Tax B se T tI Taxes Pald E@ch
a7w;;��t'' r�r Tax@ cM't-" ;x>
2008: $21.33 Assessed Value Sad ! .;n Pf0 : : wwirlCBrlIt
$761,931.00 $16,251.99 $16,251.99
2009 $21.33 $780,979.28 1 w $0.00 $16,251.99 ,;.$27,216.00
$16,658.29 0.g �$27,216.00
2010 $21.33 $800,503.76 $13,326.63 $0.00 $13,326.63 $27,216.00 $30,547.66
2011 $17,074.75 0.6 $10,244.85 $0.00 $10,244.85 $27,216.00 $34,045.90
$21.33 $820,516.35 $17,501.61 0.4 $7,000.65 $0.00
2012 $21.33 $841,029.26 $17,939.15 0.2 $3,587.83 $0.00 $7,000.65 $27,216.00 $37,716.97
2013 $21.33 $862,054.99 $18,387.63 0 $3,587.83 $27,216.00 $41,567.32
$0.00 $0.00 $0.00 $27,216.00
$45,603.63
'Assumes annual increase of 2.5%in assessed property values'
TOTALS $50,411.94 $0.00 $50,411.94 $163,296.00 $216,697.48
Base Value FY06 $ 1,275,969
Value After Building Renovation Purchase Price $ 1,882,000.00
$ 2,037,900 Cost of Improvements $ 500,000.00
Increment in Value $ 761,931
'Value determined by taking 95%of purchase price(1,787,900) Total Investment $ 2,382,000.00
Plus 50%of cost of RE improvements(250,000)
Estimated State and Municipal Tax Benefits
Estimatetl'Value of Estimated Value of States 10%> ,To :Es i
State's 5°h EOAITC ` � ' ABTD' yi i11 T x Iricen ives$f51 rTotal Value of Joint des`
$119,100.00 $0.00 $50,411.94
ITC is calculated by Multiplying the Certified Project's Private Investment Number by.05(1,882,000+500,000=2,382,000)
The value of the 10%ABTD, if applicable, should be determined b th
y e Compan 's Tax Profe
Y ssionals.
Certified Project Application —Page 1
The Massachusetts Economic Development Incentive Program
CERTIFIED PROJECT APPLICATION RECEIVED
FEB 2 0 2007
APPLICANT INFORMATION DEPT OFPIAWNG&
COMMUNITY DEVELOPMENT
1. Name and address of business(es)submitting this application (please list fiscal
year end for each business):
Doyle Sailmakers, Inc. Fiscal year end is August 31"
89 Front Street
Marblehead, MA 01945
R & J Swampscott Road LLC
96 Swampscott Road, Unit 8
Salem, MA 01970
2. Name and address of project(if different from above):
R & J Swampscott Road LLC Fiscal year end is December 31"
96 Swampscott Road, Unit 8
Salem, MA 01970
3. Location of ETA: Beverly and Salem Regional ETA
4. Location of EOA: Salem
S. Authorization: [/We, (print) Po k the
business(es) applying for Cert- Wed Project designationof, 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.
(SWgn� (Date)
(Signature) (Date)
(Additional Signatures, if necessary) (Date)
Certified Project Application —Page 2
B. 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.
Doyle Sailmakers is a well-known international sailmaking business that was started
by Robert Doyle in 1982 in Marblehead. Doyle makes sails for boats 6' 10 300' and
currently has sails on the two most visible yachts in the world, Mirabe//a V and the
Maltese Falcon. We also produce most of the sails worldwide for the women's
keelboat used in the Olympics. Doyle is a very healthy business that needs more
space to manufacture.This move will allow the company to consolidate two existing
locations to increase efficiency, expand into a new product line (construction of
airships), and increase manufacturing capacity to meet a growing market demand for
its products.
Currently Doyle has 31 employees in Marblehead in two locations. With the move to
Salem, there will be an immediate and ongoing need for growth in employment that
will benefit the ETA. We will train entry-level employees as there is no preparation in
any school system or work experience for sailmaking.
As we are all aware manufacturing in many fields is moving offshore. With it go jobs
previously available to the residents of our state and region. We are seeking Certified
Project designation to help Doyle Sailmakers manufacture in the City of Salem and
have the ability to provide job opportunities to the ETA.
The cost of the new building location at the Salem Commerce Park is $1,882.000.
The projected improvements to the location are in the range of$510,000. The
additional piece of equipment required for the airships cost $101,000. The loans
Doyle has for this project in the amount of$2,276,400. are projected over 20 years.
The build out of the space be%an in November and is scheduled to be finished for
Doyle to move in February 19 .
Certified Project Application —Page 3
7. Is this business new to Massachusetts? ❑ Yes XC No
If no:
• Where are the existing Massachusetts facilities?
• 89 Front Street, Marblehead, MA 01945
• 16 Lincoln Avenue, Marblehead, MA 01945
• Will this project requirettrigger the closing or consolidation of any
Massachusetts facilities? If yes, please explain.
• The two leased facilities above will be consolidated into the
• new owned facility in Salem.
S. Is this project an expansion of an existing business? OX Yes ❑ No
If yes, check the appropriate box: ❑ at existing location
at new location in same municipality
X ❑ 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 new, 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
Now s:
CURRENT JOBS, if any to be TOTAL, New Jobs: New Jobs: New Jobs: New Jobs: New Jobs: Years 6-10
EMPLOYMENT relocated from Projected New Year One Year Two Year Three Year Four Year Five (20�
LEVEL another MA facility Permanent Jobs (2005) (2006) (2007) (2006) (2009) If Applicable
Total Employees at
Certified Project
Facility in Mass. 0 31 12 4 2 2 2 2
Total Employees in
Massachusetts at
other sites. 6
#of Employees at
Certified Project
Location who live in
the ETA of the
Certified Project 3
#of Permanent Full-
Time Employees 30
#of Permanent Part-
Time Em to ees 7
#of Temporary Full-
Time Em to ees
#of Temporary Part-
Time Em to ees
JOBS BY
CLASSIFICATION List#of Jobs and Avera a Wa &ISala . Please feel free to use our company's classlflcaUon s stem
#of Management
Positions 3 $100,000
#of Professional
Positions 4 $56,000
#of Technical
Positions 3 $57,000
#of Skilled Positions 27 $17 Per hour
#of Unskilled
Positions
Cerdfied Project Applicadon —Page 4
r
Certified Project Application —Page 5
10. Certification for Abandoned Buildings — Does the proposed project involve the
renovation and reuse of an abandoned building?
❑ Yes ❑X No ❑ Unsure
If yes or unused, please answer the following questions:
(a) How long has the building been vacant? (If know, 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
Doyle Sailmakers is committed to providing jobs to the ETA. To do this we will work
with local agencies, organizations and the Salem High School and Salem State
College career offices. We generally advertise in the local newspapers including but
not limited to the Salem News, Beverly Citizen, Danvers Herald, Peabody weekly
newspaper.
Due to space and labor limitations in 2006 Doyle Sailmakers had to contract out
$650,000 worth of sails. This represents 6 sailmakers worth of labor. The airships that
Doyle has a contract to build will require 4 full time people. Doyle is currently
contracting out $75,000 service worts and not pursuing more due to space and labor
limitations. Plan is to increase service by $250,000 and do all the service in house.
This represents an additional 2.5 people. The preceding does not reflect speculative
ventures but known work that we have been unable to accept due to existing space
and labor limitations. The labor that is required for all of the above is entry-level labor
that is not likely to commute any distance.
The economic condition of the luxury sailing industry is quite healthy at the moment.
The average age of the sailor is increasing. This has the positive effect that the
certified Project Application —Page 6
clientele requires and is willing to pay for more services. The economic condition of
the airship industry is that the supply is not keeping up with the demand. Doyle
Sailmakers has made the commitment of a larger manufacturing space in Salem in
order to create full time jobs that we feel will benefit the people of the ETA.
(b) taking into consideration existing economic conditions, the proposed
project is likely to succeed in creating and retaining the anticipated
level of new permanent full-time jobs for residents of the
municipality/Economic Target Area.
12. Affirmative Action — Does the business have an Affirmative Action/Equal
Employment Opportunity Plan or Statement? C X Yes C No
If yes, please attach a copy. —Doyle Sailmaker's s Code of Conduct is attached, it
includes our Equal Opportunity Statement.
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?
Doyle Sailmakers, Inc. and R&J Swampscott LLC bank with Danversbank who .
participates 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.
For example, describe the anticipated state and local tax benefits, municipal road or
infrastructure improvements, assistance for 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.
Doyle Sailmakers' plan for the newly acquired space on 96 Swampscott Rd. is to
increase our production of sails and sail repair and to enter the production of large
Certified Project Application —Page 7
lighter than air ships. We will be increasing our workforce to achieve this end. Our
current problem is that we have a very experienced work force, and thus a very
expensive work force. We need to balance this work force with entry-level workers
that we will train. We have already invested in two key employees being trained to
train others in the very exacting and demanding airship assembly process.
Doyle Sailmakers has considered space in Salem in the past but the high commercial
tax rate in Salem has always been the back breaker. However, this time Ken Goode
and Ben Wong were very helpful in pointing out the economic incentives available to
business. With this, coupled with our partial MA Development Finance Agency
Revenue bond, we made the decision to go forward with new space in Salem. We did
not get the 85% financing for which we had hoped, but only 65%. This reduced
amount of financing and costs of the build out is making the move much more
financially challenging than originally planned.
It should be important for the state of Massachusetts as well as the municipality of
Salem to retain manufacturing. The cost to manufacture in Massachusetts continues
to escalate and as a result companies are reducing manufacturing jobs by sending
work offshore. Doyle Sailmakers has made a commitment to expand our
manufacturing business and provide more jobs for the people of Massachusetts. We
are expanding into the airship field because we believe that is one business that will
not go offshore and is a source for entry-level jobs with training. We would appreciate
+ any help that the Mass Economic Development Incentive Program can provide.
As a historical note of interest to the City of Salem, the first sail loft in America was
located on Derby Wharf. Doyle Sailmakers is seeking to restore a tradition of
sailmaking to the city. Doyle is an internationally respected company that will bring
visibility to the City of Salem. Hotels, restaurants and other retail businesses will be
enhanced by Doyle being located in Salem as our high-end clientele will find the
charm of Salem irresistible.
Certified Project Application -Page 8
SPECIAL REQUIREMENTS FOR REAL ESTATE PROJECTS
1. Will the business own or lease/rent the facility? XD 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? X❑ 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
businesses) developing the project (i.e., a developer or landlord) and the
business(es) intending to purchase, lease or rents space at
the facility i.e. tenant
pa ltY(
or tenants).
The 5% Economic Opportunity Credit will be applied to the cost of qualified property
as follows:
R&J Swampscott Road LLC - Building & Improvements estimated @
$2,382,000
Doyle Sailmaker, Inc. -Cost of new equipment estimated ® $101,000
The savings generated from the tax exemption schedule on future incremental real
property taxes will benefit R & J Swampscott Road LLC, the entity holding the
property.
SUPPLEMENTAL INFORMATION
1. Name(s)of the business(es) intending to take advantage of the state tax
incentives:
Business Name: Doyle Sailmakers, Inc.
Federal Employer Identification #: 04-2765012
Address: 89 Front Street, Marblehead, MA 01945
Phone: 781-639-1490
Fax: 781-639-1497
Contact Person: Robbie Doyle
Type of Organization (check all which applies):
E X Corporation E For-Profit _-S-Corp ❑ Non-profit
El Business Trust
71
Partnership E General Partnership C Limited Partnership
C Individual
Level of Interest: X ❑ 5% Investment Tax Credit
10% Abandoned Building Tax Deduction (if applicable)
Certified Project Application —Page 9
Local real estate tax incentive beneficiary
2nd Business Name (if applicable): R &J Swampscott Road LLC
Federal Employer Identification#: 51-0600068
Address: 96 Swampscott Road LLC, Unit 8
Salem, MA 01970
Phone: 781-639-1490
Fax: 781-639-1497
Contact Person: Robert Doyle
Type of Organization (check all which applies):
❑ Corporation ❑ For-Profit ES-Corp ❑ Non-profit
❑ Business Trust
❑ X Partnership ❑ General Partnership ❑ Limited Partnership
❑ Individual
Level of Interest: X❑ 5% Investment Tax Credit
❑ 10% Abandoned Building Tax Deduction (if applicable)
X❑ Local real estate tax incentive beneficiary
" if there are more than two businesses intending to take advantage of these
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.
Corporation = Doyle Sailmakers, Inc.
Name and Address of officers and directors:
• Robert Doyle, 43 Norman Street, Marblehead, MA
• Janet Doyle, 43 Norman Street, Marblehead, MA
• Sam Byrne, Bridge Street, Manchester, MA
• Gary Gregory, Millpond Road, Marblehead, MA
Person or corporation with greater than five percent interest
• Robert Doyle
• Gary Gregory
Partnership = R&J Swampscott Road LLC
Name and Addresses of Members
• Robert Doyle, 43 Norman Street, Marblehead, MA —50% interest
• Janet Doyle, 43 Norman Street, Marblehead, MA — 50% interest
Certified Project Application —Page 10
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.
Please see above relationship between Doyle Sailmakers, Inc. and R&J Swampscott
Road, LLC
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 Certificate of
Good Standing, please see Attachment 1 of this application.
Copy of Certificate is attached.
In City Council February 22, 2007
Referred to the Committee on Administration and Finance and co-post with the Committee
of the WHole
In City Coucnil March 22, 2007
Adopted
Approved by the Mayor on March 26, 2007
� I
ATTEST: CHERYL A. LAPOINTE
CITY ERK
Jcatr.&ius&, �osto�r, /�as� 02933
Galvin
t
September 6, 2006
f
r
OM IT MAY CONCERN: f
I hereby certify that a certificate of organization of a Limited Liability Company was 1
in this office by
R &J SWAMPSCOTT ROAD LLC
6.
. ance with the provisions of Massachusetts General Laws Chapter 156C on September
0
I further certify that said Limited Liability Company has filed all annual reports due and 1 y
all fees with respect to such reports; that said Limited Liability Company has not filed a.
Cate of cancellation or withdrawal; and that, said Limited Liability Company is in good % 1>
g with this office.
I also certify that the names of all managers listed in the most recent filing are: ROBERT
TLE,JANET DOYLE
I further certify, the names of all persons authorized to execute documents filed with this
and listed in the most recent filing are: ROBERT E. DOYLE, JANET DOYLE
The names of all persons authorized to act with respect to real property listed in the most
filing are: ROBERT E. DOYLE,JANET DOYLE
a
'i
In testimony of which,
I have hereunto affixed the
Great Seal of the Commonwealth
on the date first above written. l
Secretary of the Commonwealth
{q
....{ti.. A21/2008 12:45 FAX 1®002/002
assachusetts
epartment
Of \.
Revenue PO BOX 7010 BOSTON.MA 02204 .
SAWN LeBOVIDGE, COMMISSIONER
ROBERT O'NEILL,BUREAU CHIEF
`. Notice: 80619
DOYLE SAILMAKERS, INC. TIP ID: 042765012'
69 FRONT STREET Date: 9i2l/06
-z
ARBLEHEAD, MA.01945 Bureau: Certificate Unit
.T
CERTIFICATE OF GOOD STANDING AND/OR TAX COMPLIANCE
The Commissioner of Revenue certifies as of the above date, that the above named Individual
or entity is in compliance with its tax obligations payable under M.G.L.c.62C,Including
corporation excise, sales and use taxes, sales tax on meals,withholding taxes,room occupancy
excise and personal income taxes,with the following exceptions.
Th s Certificate certifies that individual taxpayers are in compliance with income tax obligations
and any sales and use taxes, sales tax on meals,withholding taxes,and/or room occupancy
taxes related to a sole proprietorship. Persons deemed responsible for the payment of these
taxes on behalf of a corporation, partnership or other business entity may not use our
automated process to obtain a certificate.
This certificate does not certify that the entity's standing as to taxes such as unemployment
_ insurance administered by agencies other than the Department of Revenue, or taxes under any
other provisions of law. Taxpayers required to collect or remit the following taxes must submit a
'.� separate request to certify compliance:Alcoholic Beverage Excise, Cigarette Excise,Sales Tax
on Boats, International Fuels Tax Agreement.Smokeless Tobacco or Ferry Embarkation.
THIS IS NOT A WAIVER OF LIEN ISSUED UNDER GENERAL LAW S, CHAPTER 62C,
SECTION 52.
i
iy Very Indy yours,
f5
;ts Robert O'Neill, Bureau Chief
'7 Celt a Gms sera tljwsosi!iy
1J
C
ti
"Due Diligence Letter"
Doyle Sailmakers, Inc.
Doyle Sailmakers, Inc. is a manufacturer of sails, established in 1982 by Robert Doyle in
Marblehead Massachusetts where the company has leased space in the same building on
the third floor at 89 Front Street for 25 years. As the business grew an additional space
was leased at 16 Lincoln Avenue, also in Marblehead.
Doyle Sailmakers is in the business of servicing sails and producing new sails for boats
from 6' to 300'. Doyle is one of the most respected names in sailmaking in the world
with over fifty affiliated lofts in over twenty different countries. Currently Doyle has
sails on the two largest privately owned sailing yachts in the world that brings a lot of
visibility to the company.
With combined loft space of approximately 19,000 square feet between the two leased
buildings Doyle has been looking to expand for the past five years. Parking in down
town Marblehead is limited. Having manufacturing space on a third floor is not very
convenient. Having two different facilities in the same town is not cost effective.
Five years ago the search began for a larger, permanent space in Marblehead with the
following characteristics:
Approximately 30,000+ square feet of open space to allow for continued growth
in the sail manufacturing and servicing business as well as entry into a new
field of manufacturing, that being lighter than air ships. Had to be first floor.
A site that was"for sale"as opposed to "for lease".
No commercial/industrial sites that met the above requirements were found available in
Marblehead during the last five years. The company began to look to neighboring
cities/towns. The company became aware of the industrial property at 96 Swampscott
Road in Salem in the summer of 2006. After much consideration and inspection it was
deemed that the 32,000 square feet of basically open space met the company's
requirements for expansion. With the help of state agencies for funding of loans for Unit
8 as well as the build out,an offer to buy was made and papers passed in September
2006. The build out began in October and will be completed by the end of February 2007
at which time Doyle Sailmakers will take occupancy of its new space.
1, Robert Doyle, President and Founder of Doyle Sailmakers, Inc., hereby certify that this
statement is true and accurate.
07
R yle Date
-vNTINUATI �..,
ON SHEET AMDOCUMENTc703
AIA Document G702,APPLICA770N AND CERTIFICATION FOR PAYMENT,containin8 PAGE 2 OF r PAGES
Contnttor s signed ocnification is attached. APPLICATION NO: 2
In tabulations below,amounts are_stated to the nwest dollar. APPUCATION DATE: 01-01.07
Use Column I on Contracts where variable retainage for lint items may apply, - _ PERIOD TO: Ol,Ol.07
ARCHITECTS PROJECT NO:
4 B _
ITEM DESCRPTIONOFWO D E
NF G
O. SCHEDULED O MPLETED MAH I
VALUE FROM PREM U PERIOD ---
'p -_ .. .TOTAL. _ -°A BALANCE RETAINAGE
INVOICES --SfUR—Eb COMPLETED (G•C) FbZM ING
AND STORED ON BUDGET
(NOT RJ 'TO DATE
GENERAL REQUIREMENTS DOR E) (prE+F)
INSURANCE@ 1.25% $22,600.00 55,406.82 59,139.67
$6,305.02 _ S1,390.84 $!4_546.69 64% $8,053.31
SITEDEMOLITION -- -- 52,105.55 53,496.39 55% 52,806.63
516,700.00
CON WORK - - - 28,140.00 S8,140.00 _ 49% 58,360.00
S14,450.00 $13,850.00 ' -"-
004CRETE - - - 513,850.00 %% S600.00
CONCRETE FLOOR EPDXY - $17400.00 SIS,935.00 52,966.30 - " -- -
- '" - 318,095.00 ----- - 218,901_30 109% (S 1,501.30)
.m450NRY - - - .- - - -.. S6,240.00 $8,250.00 514,490.00 _ 80% - - . ..
-" - 54,150.00 - -
STRUCTURAL STEEEL/MISC.METALS 51,600.00 --- - -- 53 605.00
-- ----- _ . 51,600.00 39% $2,550.00
- .. --- - - 58.300.00 — -. -
CARPENTRY MATERIALS - - _ 54,859.00 51,336.00 -'- -- -
515,450.00 -_.-- - $6,195.00 75% $2,105.00
CARPENTRY LABOR - - - - .._ 50.00 � S15,450.00.- ..
. - S 16,400.00 - . _ _ ___
ROOFMG - - . .. _. . - - - - _ _ -54.345.00 5275.00 ..--54.620.00 28%_ 511,780.00
WINDOWS - - $5_000.00 S1,449.00 — - .._ _ 0
56,070.00 - - ._ $1,449.00 --2-9-% 53,551.00
DOORS&HARDWARE _ $3,520.00 -- ...
$3,520.00 0 -
E 55,830.00 - -- �- " --- - � --... ., 58/e 52.550.00
STOREFRONT DOORS - _$7,794.99 --- -
57,794.99 _ 134% = . ,
OVERHEAD- -
OVERHEADDOORS .... . - . - - .$5.640_00 - - - __ _ _ (SI 964_99).
._ V-
_ $1.715.00 .. - $0.00 —... _ 55.640.00 .
METAL STUD/DRY\VALL _ 51,715.00 ----"�'
._-- 51,715.00 _ too- _
C_E11U.iG -- - - 526,195.00 521,030.00 - - _ 5_0.00
_ - - _ _ 521,030.00 _80_% __ 55,165_00
.__ _ 56.890.00 . . _ .._.
_PRODUCTION FLOOR/INSTALL
_.-515,125.00 ._ _. - .._ ._ ....... _. _- _.. 56.690.00
__ 50.00
PAINTING ._.- ...__.. -
-- � - _ ____-00 SI5,125.00
- - - ------- - ---- .$6.250.00 - _.. _ _
BATH ACCESSORIES —�--- --- -
PLUMBING 5500.00 ._. -_. -'- - -._ ..... . _.. -._-- 50.00 _.._ _ . _._ _ 56,250.00
FIRE PROTECTION - - - - —.-50. 0 52,386.20 516,400.00 - - - - - -- $U.00 -- .. _ .. - 5500.00
_ 519800.00 -- "-- -" -" _- -- - - - __ 518,786.20 - 82% 54,263.80
HVAC _ _ 51,710.00 516,110.00 -
_ 545.000.00 --- _- .__ _. __ S17.92O.00 90% .. $1,980.0_0
ELECTRIC _ - 518,000.00 527,000.00 - - -- -
_.. _. _ _ .._ _.- .---S45.000.00 100% --
_ $110,000.00 __ - 6, --
- __ .. 50.00
FIRE DETECTION � " - � �� - _ - _ 536,666.66 -
- -
$9,500.00 - ----- . . .. .___536,666.66 _ 33%_ 573,333.34
LIGHTING - - -_ -__
- $18.500.00 . _ .. _._. . . . —00.0
.._ 57.102.00 .__ _ . _. ._._-__-50.00 59,500.00
GCO\'ERHEAD&PROFIT@IS°io - - -- - - - --- "' - -.0
. - 57,10200 38% 511_398.00
- - 565,79150S14,513.10 -- -
__.._ --
_ .._ -, .821,970.92 � - ---
-_ - - 536,484,02 55% 529,307.48
GRAND TOTALS
'- ------- --. _ $510,70652
$112657%
-- 5170,54929 50.00
Users m0_72.5
z ss_% 5_zn49927 $o.00
a_ y oy�I=validation of thls doeumont b re uestln of the license a wm leted AIA Document D401•Certfflwtlon of
" ' Dowment's Authentld
Mimi Michaud
From: Kelly Hurley
Sent: Monday, February 05, 2007 11:35 AM
To: Mimi Michaud
Subject: code of conduct
CODE OF CONDUCT
1. CODE
In any organization such as ours,it is necessary to set down rules governing conduct and
procedures to ensure smooth running of the Company. Any conduct which threatens personal
health,well-being or security of employees,or which endangers plant,property or product is
outside our accepted behavior.
2. GENERAL CONDUCT
All employees are expected to maintain a high standard of conduct and performance relating to
the operational requirements and reputation of the Company. This standard is to be
maintained at all times while engaged on Company business so as to avoid bringing the
Company into disrepute. The following indicates the Company position on a number of such
standards:
2.1 PUBLIC RELATIONS
Your future with the Company,your security and your promotion depends on the continuing
prosperity of the Company. Success however, is not achieved automatically, it must be worked
for. All employees are expected therefore to act in such a way as to maintain the reputation of
the Company.
2.2 EQUAL EMPLOYMENT OPPORTUNITIES
Doyle Sailmakers, Inc.is an Equal Opportunity Employer. This means that the company will
extend equal opportunity to all individuals without regard for race, religion, color, sex, national
origin,age, disability, handicaps or veteran status. This policy affirms Doyle Sailmakers'
commitment to the principles of fair employment and the elimination of all vestiges of
discriminatory practices that might exist. The company encourages all employees to take
advantage of opportunities for promotion as they occur.
2.3 SEXUAL HARASSMENT
Doyle Sailmakers will not, under any circumstances, condone or tolerate conduct that may
constitute sexual harassment on the part of its management,supervisors or non-management
personnel. It is our policy that all employees have the right to work in an environment free
from any type of illegal discrimination, including sexual harassment. Any employee found to
have engaged in such conduct will be subject to immediate discipline up to and including
discharge.
Any employee found to be engaged in the conduct of sexual harassment will be subject to
immediate discipline up to and including discharge.
1
Sexual harassment is defined as:
1. Making submission to unwelcome sexual advances or requests for sexual favors a term or
condition of employment;
2. Basing an employment decision on submission or rejection by an employee of unwelcome
sexual advances, requests for sexual favors or verbal or physical contact of a sexual nature;
3. Creating an intimidating, hostile or offensive working environment or atmosphere either by
a)verbal actions, including calling employees by terms of endearment; using vulgar or
demeaning language; or
b) physical conduct that interferes with an employee's work performance.
Doyle Sailmakers encourages healthy fraternization among its employees; however,employees,
especially management and supervisory employees, must be sensitive to acts of conduct that
may be considered offensive by fellow employees and must refrain from engaging in such
conduct.
It is also expressly prohibited for an employee to retaliate against employees who bring sexual
harassment charges or assist in investigating charges. Retaliation is a violation of this policy
and may result in discipline,up to and including termination. No employee will be
discriminated against or discharged because of bringing or assisting in the investigation of a
complaint of sexual harassment.
2.4 SAFETY& SECURITY
Safety is a joint venture at Doyle Sailmakers. Doyle Sailmakers provides a clean, hazard free,
healthy, safe environment in which to work in accordance with the Occupational Safety and
Health Act of 1970.As an employee,you are expected to take an active part in maintaining this
environment.You should observe all posted safety rules, adhere to all safety instructions
provided by your supervisor and use safety equipment where required. Your work place should
be kept neat, clean and orderly.
All safety equipment will be provided by Doyle Sailmakers,and employees will be responsible
for the reasonable upkeep of this equipment.Any problems with or defects in equipment
should be reported immediately to management.
As an employee,you have a duty to comply with the safety rules of Doyle Sailmakers,assist in
maintaining the hazard free environment, to report any accidents or injuries - including any
breaches of safety- and to report any unsafe equipment, working condition, process or
procedure, at once to a supervisor.
Employees may report safety violations or injuries anonymously to the Safety Officer, if they
are not the injured or violating party. NO EMPLOYEE WILL BE PUNISHED OR
REPRIMANDED FOR REPORTING SAFETY VIOLATIONS OR HAZARDS. However, any
deliberate or ongoing safety violation, or creation of hazard, by an employee will be dealt with
through disciplinary action by Doyle Sailmakers, up to and including termination.
Employees who are injured on the job at Doyle Sailmakers are covered by Worker's
Compensation Insurance. It is your responsibility to immediately notify your immediate
supervisor- or in the absence of your supervisor, the next available supervisor- of any injuries
you sustain while on the job at Doyle Sailmakers.
2
This supervisor will notify your personnel representative.The company encourages injured
employees to seek immediate medical attention.All medical expenses related to the treatment
of an injury, sustained on the job,are paid in full direct to the medical providers.After a
specified waiting period,you are also eligible for disability payments set forth by state law,
where necessary.
The Worker's Compensation plan is administered by a separate insurance company who will
be notified by your personnel representative.You will be contacted by a representative of the
administering company. Information on the current company administering this plan will be
provided to you by your personnel representative and is available on posters displayed in your
work area.Additional information on Worker's Compensation Insurance is available through
the Accounting office.
2.5 LOSS CONTROL
All incidents or accidents involving loss or damage to Company property must be reported
immediately to the supervisor concerned.
2.6 PERFORMANCE OF DUTIES
Employee's attitudes to work and performance of duties are to be of a consistently high
standard. The Company's standard procedures for all jobs must be followed to ensure integrity
of service or result, quality of performance and product and timeliness of completion. In
particular,the Company's procedures of accounting, contract administration and quality
assurance must be followed.
2.7 ABSENCE/TARDINESS
Employees who cannot attend work because of personal illness or emergency are to notify their
manager or supervisor as soon as possible on the day of absence. All other absences must have
prior approval of the manager or supervisor. A medical certificate will be required.
Tardiness will not be tolerated. If an employee is late for work with frequency he/she will be
dismissed. Productivity amongst the group is affected by each person's promptness.
2.8 PERSONAL APPEARANCE
Personal appearance is a matter of Employee's own personal taste and common sense,but the
Company does expect employees to look neat and dress appropriately for their jobs. Where
protective clothing and/or equipment is issued, it must be worn/used:
2.9 SECONDARY EMPLOYMENT AND COMMERCIAL INTERESTS
The company has no objection to Employees taking on secondary employment,being self-
employed, or involved in other commercial activities providing:
a) Prior consent &knowledge of the employee's manager has been obtained,
b) The secondary employment does not adversely affect the performance of duties,
c) The Company has first call on employee's services,
d) Company property, facilities and information are not used in activities that are
not connected with Company business interests,
d) The work takes place entirely outside employee's working hours with the
3
Company,
d) There is no possible conflict of interest or activities between the Company and
those with whom it does business,
g) Company employees and members of their families should not accept gifts and favors
from any source that could be seen as influencing a business relationship.
2.10 SMOKING
Doyle Sailmakers endeavors to provide a healthy environment,therefore prohibits any form of
tobacco consumed in company buildings.Additionally,no smoking is allowed within ten (10)
feet of exterior entranceways. Smoking breaks are to be taken at the two set break periods or at
lunch, no other time is acceptable.
2.11 ANTI SUBSTANCE ABUSE
Doyle Sailmakers takes seriously the problem of drug and alcohol abuse,and is committed to
provide a substance abuse free work place for its employees.This policy applies to all
employees of Doyle Sailmakers,without exception, including part-time and temporary
employees.
No employee is allowed to consume,possess,sell or purchase any alcoholic beverage on any
property owned by or leased on behalf of Doyle Sailmakers, or in any vehicle owned or leased
on behalf of Doyle Sailmakers. No employee may use,possess, sell,transfer or purchase any
drug or other controlled substance on any property owned by or leased on behalf of Doyle
Sailmakers,or in any vehicle owned or leased on behalf of Doyle Sailmakers. Exceptions are
aspirin or ibuprofen based products and legal drugs that have been prescribed to that
employee,which are being used in the manner prescribed.
Doyle Sailmakers will not tolerate employees who report for duty while impaired by use of
alcoholic beverages or drugs.
All employees should report evidence of alcohol or drug abuse to a supervisor or a personnel
representative immediately. In cases where the use of alcohol or drugs pose an imminent
threat to the safety of persons or property, an employee must report the violation. Failure to do
so could result in disciplinary action for the non-reporting employee.
2.12 CONFIDENTIALITY
Any confidential information including trade secrets for example relating to business
connections and technical information or processes, clients or suppliers lists of private affairs
acquired by an employee in the course of employment following the cessation of employment
must remain confidential.
Kelly Hurley
Doyle Sailmakers
89 Front Street
Marblehead, MA 01945
Tel 781.639.1490
Fax 781.639.1497
www.doylesails.com
4