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FALMER THERMAL SPRAY Ti 168 Braid Srreer - Lynn,1 5 1.001 w FALMER �• Thermal Spray Tel. ;s1 9i.o0s8 Fax 781 598.0280 �{�... Jattiary 10,2007 \favor Kin Driscoll City of Salem 120 Washington Street Salem,ALA 01970 Dear Mayor Driscoll, It was a pleasure speaking with last summer. We at Falmer are excited about our relocation to Salem. Per our conversation un June 20,2007,we intend to apply for Tax Increment Financing with the city and Peter . Milano from the hLli.Office of Business Development. We hope to meet with Tania Hartford at our earliest convenience. Please feel free to contact me with any further questions or requests. Respe fully, ��Qo Stacy M.. fA..mes President Y vd:C CITY OF SALEM, MASSACHUSETTS Kimberley Driscoll Mayor March 12, 2007 Economic Assistance Coordinating Council ATTN: Robert Foley, Program Manager EDIP Massachusetts Office of Business Development One Ashburton Place, Suite 2101 Boston, MA 02108 To the Members of the Economic Assistance Coordinating Council: I am pleased to submit for your review the applications and supporting documentation necessary to designate Swampscott Road Associates, LLC a Certified Project through the Commonwealth's Economic Development Incentive Program (EDIP). Swampscott Road Associates, LLC is the holding company for The Falmer Associates, Inc., a growing, woman-owned, company looking to expand and move their operations to Salem's newest industrial park at 96 Swampscott Road. Shortly after taking office last year, a developer approached me about his purchase of the former Atlantic Extrusions building at 96 Swampscott Road. The 170,000 square foot building had been vacant for over two years, with little interest from companies or developers looking to invest in the property. The developer envisioned redeveloping the property into industrial/commercial condominiums for smaller manufacturing companies. He quickly found interest from local companies looking for space and willing to invest in the property. The building is now home to nine companies, who are investing a great deal in their units. Three of these companies approached the City for assistance, The Falmer Associates, being one of them. The Falmer Associates was founded in 1961. The company has been at its current location in Lynn since 1984. They are moving to Salem and purchasing a 7,500 square foot unit at 96 Swampscott Road. This move will allow the company to increase their plant size by 3,000 square feet. They will more than double their coating production capacity and compressed air, increase machining and abrasive blasting, using upgraded technology and a leading consulting engineering firm. The investment in the purchase and renovation of the unit is anticipated to be $856,400. The company is expecting to increase sales in 2007 by 30 to 50% over 2006 levels and plan to grow sales 3-6 fold in the new facility. The expected job growth is 7 full-time permanent jobs in the next five years. The City is proposing a five-year TIF Agreement for The Falmer Associates. If approved, it will be the first time in nearly six years that the city has used this valuable economic development Salem City Hall—93 Washington Street—Salem, MA 01970-3592 Ph. 978-745-9595 Fax 978-744-9327 t tool to promote development in Salem. Projects using this tool in the past have exceeded job creation goals and continue to provide meaningful tax revenue to the City. The financial impact of the project is substantial and will help send the message that we welcome new businesses and encourage economic development in Salem. On February 22, 2007, the project was submitted to the Salem City Council to designate the company as a certified project and endorse a five-year Tax Increment Financing (TIF) plan. The Council is reviewing the project at the Committee level on March 19 and we anticipate a favorable vote on March 22, 2007. The enclosed TIF plan and application for certified project status describe the City's reasons for offering the incentives and the benefits, which the company will bring to Salem. I appreciate your support of our economic development efforts and hope that, once again, you will vote to certify a Salem project. Very truly yours, � Kimberley Driscoll Mayor Salem City Hall—93 Washington Street—Salem, MA 01970-3592 Ph. 978-745-9595 Fax 978-744-9327 Certified Projed Application —Page 1 The Massachusetts Economic Development Incentive Program CERTIFIED PROJECT APPLICATION APPLICANT INFORMATION 1. Nana and address of businesses) submitting this application (please list fiscal year and for each business): Swampscott Road Associates, LLC 96 Swampscott Road, Unit 910 Salem, MA 01970 Fiscal Year End: December 31st The Falmer Associates, Inc 168 Broad Street Lynn, MA Fiscal Year End: December 31" 2. Name and address of project(if different from above): N/A 3. Location of ETA: Beverly 3 Salem ETA 4. Location of EOA: Salem S. Authorization: I/We, (print) . Stacy M.Ames, of Swampscott Road Associates,LLC 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 certifica ' ?V-jr, V-444 i (Signature '(Dale) (Signature) (Date) n 2'd h0I7WtL8L6T6:01 082086STMT 3i1 83J-tid:W083 6£:ST L002-91-83d 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. Business Description: History and Description of Thermal Spray The Falmer Associates Inc. was founded in 1961 by Newton I. Meyers, a Brown University and Harvard Business School graduate in Marblehead, MA. His goal was to transfer WWII jet engine and rocket technology to commercial applications. A Rhode Island native, he was very familiar with wear and corrosion problems in the state's jewelry and wire manufacturers during the 1950s and 1960s. From the period of 1961 to 1972, Meyers designed and marketed a line of wear resistant,ceramic coated components and created a local market for his services. Newton Meyers had an inventor's mind. Thermal Spray technology is over 100 years old. It is defined as a group of coating processes in which finely divided metallic or nonmetallic materials are deposited in a molten or semi-molten condition to form a coating. Thermal sprays are found in cars, power plants, on Navy Ships, in electronic components, on bridges, and of course in jet engines. Thermal spray coating use is on the rise across industries. They are efficient, elegant value added solutions. High temperature ceramics on aluminum, metals on plastics, carbides on steels, possibilities are endless. Thermal spray is a niche, growth industry. Meyers moved to Danvers in 1965 and ran the company out of the first floor of his home and garage. His business doubled in size in 1972. Unaware of high cholesterol and complications from a previous heart condition, he died from a massive coronary in November. His widow Rita was left with four children, ages 5 to 11, and a business she knew little about. A business teacher by training, she knew there would be no mid-year openings, so she started to read his files, answer customer and supplier calls and eventually filling orders. Newton had set up a network of coating companies and machine shops supplying his operation. He marketed, assembled and did light honing out his facility. With her business education background, Rita studied the records to hunt down suppliers to create production. She sold, managed staff and created a larger concern over time that supported her family and sent all her children to private colleges. Her son Daniel was a salesman for Falmer during his college years. Her daughters Stacy and Lisa also worked in the company. Rita, Dan and Stacy grew Falmer in the early 1980s, adding semi-conductor and other commercial industry customers. As the business grew, suppliers could not keep up with increased production. In 1984, Rita secured capital from the Beverly Savings Bank and rental space in downtown Lynn. The purchase coating equipment and began operations in November 1984. The business was transformed from a supplier based to a manufacturing based service company. Sales Growth and Expansion Over the years, Falmer has built its customer base to include Raytheon, AW Chesterton, General Cable, US Army, MIT, Bayer, Osram Sylvania, Rea Magnet Wire, Stowe Woodward and Schwarzkopf Technologies. We serve a variety of industries with wear, corrosion, erosion, insulation, conduction and surface reclamation coatings. In terms of expansion, Falmer will increase plant size with this move from 4500 to 7500 square feet. We will more than double our coating production capacity and compressed air, increase machining and ` Certified Project Application -- Page 3 abrasive blasting, using upgraded best available technology and a consulting engineering firm who has set up coating systems for Pratt &Whitney and Corning Glass Works. We have added a New England sales representative with decades of industry experience and advertising in an effective, local purchasing publication. We have a consultant working with us to identify costs, update systems, make efficiencies where possible and pinpoint our pricing structures. We are looking at the impact of ISO certification on customer development. I have personally met and take advise from Christine Sullivan at the Enterprise Center and Margaret Somer with the SBDC. Falmer has SOWMBA, WBENC(Women's Business Enterprise Council) and SBA HUBZone certifications. Falmer is a service company with stringent customer delivery requirements. Our reputation has been built on the service as well as the coatings we provide. As a certified Woman Owned Business, Falmer has gained access to Raytheon and Homeland Security contracts;we keep them with quality product, good communication skills and keeping our word. Falmer also partners with one of the best high tolerance grinding companies in New England. Together, we supply seals for the Australian Navy and components for finishing machines that make automotive cam shafts for the Big Three. In addition, we process parts as large as pick up trucks with a local iron forge. As a result, Falmer is bigger and more flexible than the sum of its parts. We plan move into our new facility in two stages, set up our new equipment and bring what we need to be functional, and then move what we can from our existing plant. I hope to increase sales in 2007 by 30 to 50%over 2006 levels. (Sales grew 20% in 2006.) 1 plan to grow sales 3-6 fold in the new facility. Currently, we have 4 full time and 1 part time employees. We hope to bring the part time employ up to full within the next few months. I anticipate bringing on one other full time employee by the middle of 2007, and an additional 1-2 full time employees in 2008. 1 conservatively anticipate 10 full time employees in 3 to 5 years. Investment Falmer's investment includes the following: Purchase of 96 Swampscott Road, Unit 10 industrial condominium 470,000 Build out of shell space including new store front, offices with conference room and kitchen, bathrooms, access doors, heating, air conditioning in offices, electrical service and wiring, plumbing service, telephone, data and high speed internet wiring. 400,000 New plasma coating system with recirculating water chiller 34,000 New coating room with state of the art ventilation and make up air systems. 220,000 30 HP Air compressor with desiccant dryer, air piping throughout the facility 12,000 New Machining Lathes. 10,000 Electrical Work for Manufacturing Facility 70,000 Automated Tumble Abrasive Blast Machine 1,500 Walk behind fork truck. 1,500 Office Furnishings 12,000 Telephone and Data Systems 28,000 Equipment installation and rigging expense 92,000 TOTAL ESTIMATED INVESTMENT 1,351,000 Falmer is seeking Certified Project designation for a number of reasons. First, we hope to access some fiscal support for the project. Falmer is a small business; this is a very large project for us. Support from the city and state is vital for our success. Secondly, my family and I have lived our lives on the North Shore and believe in these communities. We believe Falmer Thermal Spray can be part of the diversified economic base Salem needs for a multi- faceted, vibrant economy. Finally, Falmer has always partnered with other companies to accomplish project that we could not individually take on. I believe these relationships make the participants stronger and open up opportunities that we did not envision when we started. I have supported and served on the board of Certified Project Application -- Page 4 Girls Inc. of Lynn, am a member of the local chamber and a 100 member women's networking group. Falmer has a history of civic support. In conclusion, Falmer Thermal Spray has been a profitable business concern in Lynn for 22 years. We are excited about our new more permanent home in Salem. We look forward to expanding and updating our operation and believe we have a bright future. Thank you for your consideration. Certified Project Application -- Page 5 7. is this business new to Massachusetts? Yes No If no: • Where are the existing Massachusetts facilities? 168 Broad Street Lynn, MA Will this project require/trigger the closing or consolidation of any Massachusetts facilities? If yes, please explain. Yes, Falmer will upgrade facilities and move to its new Salem location. 8. Is this project an expansion of an existing business? Yes No If yes, check the appropriate box: at existing location at new location in same municipality at new location in different municipality At new 96 Swampscott Road, Salem location 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 (2008) (2009) (2010) (2011) (2012) If Applicable Total Employees at Certified Project Facility in Mass. 4 4 7 2 2 1 1 1 Total Employees in Massachusetts at other sites. 4 4 # of Employees at Certified Project Location who live in the ETA of the Certified Project 1 1 4 2 2 1 1 1 # of Permanent Full- Time Employees 4 4 7 2 2 1 1 1 # of Permanent Part- Time Employees 1 1 2 1 1 1 2 2 2 # of Temporary Full- Time Employees 0 0 0 0 0 0 # of Temporary Part- Time Employees 0 0 1 0 0 0 0 JOBS BY CLASSIFICATION List#of Jobs, and Average Wa e/S lary. Please feel free to use your compan 's classifications stem # of Management Positions $75K+ 1 1 1 0 0 0 1 0 # of Professional Positions 0 0 0 0 0 0 0 0 # of Technical Positions $30-60K 2 2 2 1 0 1 0 0 # of Skilled Positions $15-$30K 0 2 1 1 0 0 0 # of Unskilled Positions $12-30K (1) 1 2 0 1 0 1 0 1 Certified Project Application — Page 7 10. Certification for Abandoned Buildings -- Does the proposed project involve the renovation and reuse of an abandoned building? Yes 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? 11. We will work with the existing city and regional resources to find local, qualified individuals for employment. We have in the past used other traditional methods such as newspaper/internet advertising, word of mouth, and local colleges as resources. 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 The only reason to undertake this project is to grow the size of the business. The capital expenditure will make it possible for Falmer to higher more employees and expand its position in the marketplace. (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. This project is likely to succeed for three major reasons. 1. As you can see from the budget, there is a very high barrier to entry for arc wire thermal spray coatings because of increased dust generation. We at Falmer are Certified Project Application -- Page 8 making the investment using best available technology to set up a safe, green facility. Our business has been growing in this area as our competition decreases. These coatings are needed by Raytheon, implantation equipment companies, electronic controls manufacturers, and a new homeland security application. We can demand a higher margin due to the decreased competition and the high barrier to entry. 2. Experience. Falmer is a 45 year old corporation with a broad range of steady customers across industries and a staff with decades of experience. Falmer's senior production employee has a tenure of 13 years. We have a great reputation in our industry and have conquered many challenges along the way. 3. We are moving from a second floor location in a dilapidated mill building in downtown Lynn to a larger, modern, state of the art facility. The efficiencies and professional appearance will on their on help grow the business. 12. Affirmative Action -- Does the business have an Affirmative Action/Equal Employment Opportunity Plan or Statement? Yes No If yes, please attach a copy. Affirmative Action policy Falmer Thermal Spray agrees not to discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation or national origin. 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? Falmer has recently moved to Eastern Bank after more than 20 years with TDBankNorth. Falmer has a flexible line of credit, an equipment line and will mortgage a portion of the built out condo. Our banker is: Joseph V. Leary,S.V.P Eastern Bank LF24 605 Broadway,Saugus,MA 01906 Direct Dial-781-581-4221 Fax 581-4225 J.Leary @ Easternbk.com 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 Certified Project Application -- Page 9 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. Economic benefits to the applicant 1. Swampscott Road Associates, LLC will be entitled to Massachusetts 5% Investment Tax Credits 2. The tax relief will add working capital to Falmer as it renovates the space and aggressively grows its sales, and resulting labor force. 3. Swampscott Road Associates.will save approximately$15,000 in local property taxes over the next 5 years. It will help defray some of the built out costs it incurs in this endeavor. Economic benefits to the City of Salem 1. Falmer helps the city by revitalizing part of a structure that had been abandoned, deteriorating, and vandalized. 2. Falmer is a 45 year old business with a solid customer base and good growth potential. Falmer will provide good, stable employment to local residents. 3. Falmer has a long history of being a supportive corporate citizen, supporting local non-profits and encouraging its employees to live in and enrich the community. 4. Falmer is a solid high technology company that will help revitalize Salem's industrial sector as a solid participant in the industrial/high tech community. 5. Falmer plans to add 6-10 new jobs in Salem. 6. Long term tax revenues generated from the company and future employees will support the city. Certified Project Application — Page 10 SPECIAL REQUIREMENTS FOR REAL ESTATE PROJECTS 1. Will the business own or lease/rent the facility? Own Lease/Rent If leasing/renting, please identify the developer/landlord, and state who will be the taxpayer of record for the purpose of paying local real estate taxes. The landlord is Swampscott Road Associates, LLC. The property was purchased by The Falmer Associates, Inc. in the form of its holding company, Swampscott Road Associates, LLC. As a matter of business practice, The Falmer Associates, Inc., leases the building from the LLC. If owning, will the business fully occupy the space? Yes No If no, does the business intend to lease/rent the remaining space? The Falmer Associates, Inc. will occupy the entire 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 tax relief will benefit the construction and growth planning for the Falmer Associates, Inc. SUPPLEMENTAL INFORMATION 1. Name(s) of the business(es) intending to take advantage of the state tax incentives: Business Name: The Falmer Associates, Inc Federal Employer Identification #: 04-2296030 Address: 168 Broad Street Lynn, MA 01901 Phone: 781-593-0088 Fax: 781-598-0280 Contact Person: Stacy M. Ames Type of Organization (check all which applies): Corporation For-ProfitC S-Corp Non-profit Business Trust Partnership General Partnership Limited Partnership Individual Level of Interest: 5% Investment Tax Credit 10% Abandoned Building Tax Deduction (if applicable) Certified Project Application — Page 11 Local real estate tax incentive beneficiary 2nd Business Name (if applicable): Swampscott Road Associates, LLC Federal Employer Identification #: Address: 168 Broad Street, Lynn, MA 01901 Phone: 781-593-0088 Fax: 781-598-0280 Contact Person: Stacy M Ames Type of Organization (check all which applies): Corporation For-Profit S-Corp Non-profit Business Trust Partnership General Partnership Limited Partnership Individual Level of Interest: 5% Investment Tax Credit 10% Abandoned Building Tax Deduction (if applicable) Local real estate tax incentive beneficiary "'If there are more than two businesses intending to take advantage of 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. Falmer Associates, Inc. Stacy M. Ames 2 Chapel Hill Road Beverly, MA 01915 Daniel M. Meyers 2 Avery Street PH2A Boston, MA 02111 Rita Meyers 5 Lobao Drive Danvers, MA 01923 Lisa Henderson 2112 Roswell Ave Charlotte, NC 28207 Sarah Byrne Ducharme 117 Clifton Avenue Marblehead, MA 01945 Swampscott Road Associates, LLC Stacy M. Ames Daniel M. Meyers Certified Project Application -- Page 12 3. Please provide the name, address, phone number and contact person for any organizations Which may own or control the.applicant organization, or who are affiliated with the applicant business organization. 4. Certificate of Good Standing -- Please provide proof of good tax standing in the Commonwealth of Massachusetts via a Certificate of Good Standing, which is a letter issued by the Massachusetts Department of Revenue. To obtain a Certificate of Good Standing, please see Attachment I of this application. 9%ew ,W ef�>��� (°ioinnionu�errlD� JIM,,3&&4 S OMW4 Awa os>�9 ,wemyo<mw commanwedisik February L%2007 TO WHOM lT MAY CONCERN: I hereby owufy dist seconding to the records of this offtoa, THE FALMBR ASSOCIATES INC. is a donustic eorporation organized on August X 1968,under the General Laws of the Commeoweaith of Massachusetts. I further certify that then are no proceedings presently Pending under the Massachusetts General Laws Chapter 156D section 14.21 for said corporation's dissolution;that articles of dissolution have not been filed by said corporation; that,said corporation has filed all annual reports,and paid all fees with respect to such reports,and so far as appears of record said corporation has legal existence and is in good standing with this office. In testimony of wWch, I have hat v=affixed the � Great Seal of the Commonwealth on the date fust above written. Secretary of the Commonwealth Processed By.NSM 2'd b0t7wbLBL6T6:01 082086ST8LT -UPj3j N3WlHd:W08.j LS:ST LO02-9T-83d Form SS-4 Application for Employer Identification Number OMB No. 1545-0003 (Rev.February 2006) (For use by employers,corporations,partnershi s,trusts,estates, churches, EIN government agencies,Indian tribal entities,certain individuals,and others.) o.pammern of thee Treasury ► See separate instructions for each line. le Kee a co for our records. hrenW ReiMue seniu Pa P PY Y 1 Legal name of entity(or individual)for whom the EIN is being requested - Swampscott Road Associates LLC T 2 Trade name of business(if different from name on line 1) 2 Executor,administrator, trustee,"care of name D 4a Mailing address (room, apt,suite no.and street,or P.O. box) ria Street address(if different)(Do not enter a P.O.box.) c 168 Broad Street ra 4b City, state, and ZIP code Sb City, stale,and ZIP code `o —Lynn, MA 01901 w 6 County and state where principal business is located � Essex, MA 7a Name of principal officer,general partner,grantor, owner,or trustor 7b SSN,ITIN,or EIN Stacy Ames 033-48-3206 8a Type of entity(check only one box) ❑ Estate(SSN,of decedent) ❑Sole proprietor (SSN) ❑ Plan administrator(SSN) ®Partnership ❑ Trust(SSN of grantor) ❑ Corporation (enter term number to be filed) ► ❑ National Guard ❑ StaleAccal government ❑ Personal service corporation ❑ Farmerscooperative ❑ Federal governmentimilitary ❑Church or church-controlled organization ❑ REMIC ❑ Indian tribal governmentslenterignses ❑Other nonprofit organization (specify) ► Group Exemption Number(GEN)Ili- EI ®other ed ► LLC to be treated as a artnershi Sb If a corporation, name the state or foreign country State Foreign country (d applicable)where incorporated MA j 9 Reason for applying(check only one box) ❑ Ranking purpose (specify purpose) ► I IN Started new business (specify type) ► ❑ Changed type of organization(specify new type) ► Real Estate Rental ❑ Purchased going business ❑ Hired employees(Check the box and see line 12.) ❑ Created a trust (specify type) 11- 71 ❑ Compliance with IRSwithholding.regulations ❑ Created a pension plan(specify type) ► ❑ Other(specify) ► 10 Date business started or acquired(month,day, year).See instructions. 11 Closing month of accounting year 07/26/2006 December 12 First date wages or annuities were paid (month,day,year). Note. If applicant is a withholding agent,enter date income will first be paid to nonresident alien. (month,day, year). .. ........... .. .. .. ..... .. .. .... ... ..... . .. ► 13 Highest number of employees expected in the next 12 months(enter-0- if none). Agricultural Household Other Do you exped to have 51,00 or less in employment tax liability for the calendar yea(! I� Yes U No (If you expect to pay $4,000 or less in wages you can mark yes.) 0 0 0 14 Check one box that best describes the principal activity of your business. ❑ Health care 8 social assistance ❑ Wholesale-agentlbraker ❑ Construction ❑ Rental &leasing ❑ Transportation&warehousing ❑ Accommodation Mood service ❑ Wholesale-other ❑ Retail ® Real estate ❑ Manufacturing ❑ Finance&insurance ❑ Other(specify) - 15 Indicate principal line of merchandise sold, specificconstruction work done, products produced, or services provided. - - 16a Has the applicant ever applied for an employer identification number for this or any other business?.. .. .. .. .. . ❑ Yes lM No Note. If"Yes; please complete lines 161b and 16c. 16b If you checked 'Yes' on line 18a, give applicant's legal name and trade name shown on prior application if different from line 1 or 2 above. Legal name ► Trade name ► 16C Approximate data when,and city and state where, the application was fled. Enter previous'employer identification number if known. Approximate date when filed(mo.,day,year) city and state where flied Previous EIN Complete this seclion only you wanllo authorize the named individual to receive the enlay'a EIN and answer questions aboul the completion of the forth Third Designees name Designee's tesphome number Qnchde area code) Party John Sweeney 617-790-4830 Designee Addressand ZlPcoda 4 Lawrence Street Designee's fax nomCer(include area code) Danvers MA 01923 617-790-4930 Under penalties of perjury,I declarettW 1 hmsexamined this application,anda the best of rot,knowledge and belief,it is we,cared,and complete. Appliant's'eiephooe maker(achiria area code) Name and title(type or print clearly) 111, Stacy Ames President 781 593-0088 — V�--� Applicant's fai, numoer(include area code) signature ► (/L oats 781 598-0280 For Privacy Act and PaperviDirk Reduction Act Notice, see separate instructions. - Form SS-4 (Rev.2-2006) ISA STF FE07769F.1 i Due Diligence Letter The Falmer Associates, Inc/Swampscott Road Associates, LLC The Falmer Associates, Inc. provides thermal spray coating services for manufacturing and commercial corporations throughout the United States. In 1984, we leased space at 168 Broad Street in Lynn, MA and have been operating out of that location for 23 years. A change in property ownership forced us to re-evaluate the viability of continued business at that limited location with increased rent and lack of stability being a tenant at will. The Lynn location is 4,000 sq. ft. on a second floor in an old mill building that was formerly a stable and garage for the Hotel Edison. In order to grow, we needed a larger and more accessible facility. Our first thought was to remain in the City of Lynn, and we unsuccessfully attempted to find adequate space for us to lease or purchase. After spending 4 months looking in Lynn, I spoke to Peter DeVeau, the former head of Communities and Development for the city. He suggested that he knew of no suitable available location for us to relocate. He understood my ties to Lynn, but felt it was time for me to explore other options that would be optimal for my business. In April, we found 5500 square feet of industrial rental space off Foster Street in Peabody that would have been appropriate for our needs. The leasehold improvements required for our operation are a considerable investment not to own. We believe purchasing the Salem Commerce Park property is the best location for Falmer. We will own more of our investment and the per foot costs are competitive preconstruction, if not favorable. The new built out facility will afford us the following advantages: Upgraded facility with Best Available Technologies for Dust Collection Professional Location to Showcase our Business to Customers 7500 square foot expanded facility affords us room to grow More access to larger projects with I" floor location and overhead door Ability to become ISO approved more easily in a new facility. The purchase of the 96 Swampscott Road #10 condominium is the best fit for The Falmer Associates, Inc. as it looks to expand its position in the marketplace. I, Stacy .. Ames, as a representative of The Falmer Associates, Inc., hereby certify this state a true and accurate. 7�7t' 2 ao , � Stacy M mes Date THE FALMER ASSOCIATES, INC. TIF Plan TAX INCREMENT FINANCING PLAN I. LOCATION A. Economic Opportunity Area (EOA): Salem EOA B. Municipality: City of Salem C. TIF Zone: i. Map Attachment A —General Location Map Attachment B—Land Use and Zoning Map .Attachment C —Parcel Map (property lines, building footprint and all thoroughfares, public right of ways and easements) ii. Description (common and legal) Common Description The proposed TIF Zone is located at 96 Swampscott Road, Unit 10 in the Salem Economic Area (EOA). Legal Description That property situated in Salem in the County of Essex and Commonwealth of Massachusetts described as follows: 96 Swampscott Road, Salem, Massachusetts, Unit 10, described in the UNIT DEED dated August 1, 2006 and filed on August 4, 2006 with the Essex South Registry District of the Land Court as Document Number 470288. 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. iii. Narrative description of TIF "Lone, Needs, Problems, and Opportunities The TIF "Lone is a 7,500 square foot unit within a 170,000 square foot building that was recently converted to commercial condominiums primarily geared toward smaller industrial and commercial users. Prior to the conversion, the 1 THE FALMER ASSOCIATES, INC. TIF Plan building was vacant and deteriorating for over two years. It was difficult to find such a large commercial user for the space. The City worked with different state agencies to try to attract a company to the space without success. The conversion represented an innovative solution to redeveloping the building. The new condominium owners purchased essentially a large space with walls and were required to invest their own funds in the build-out of their individual space. The Falmer Associates, Inc. plan to invest $1,053,823 in the purchase and development of the unit. In addition, they xvill be investing in new equipment and systems,which will bring their total investment in the project to over $1.5 million. The conversion of the building and the investment the new condominium owners, including The Falmer Associates, Inc., creates an opportunity for investment into this industrial corridor of the City and generates more tax dollars, as well as, increased jobs. iv. Property Owners within the proposed zone Stacy Ames Swampscott Road Associates, LLC (RE Holding Company), 96 Swampscott Rd., Unit 10, Salem, MA II. TIME—DURATION OF TIF PLAN AND ZONE DESIGNATION 5 years III.TIF ZONE & ECONOMIC DEVELOPMENT A. Discuss how TIF Zone is poised to create new economic development opportunities "Che designation of this property as a TIF Zone will create a number of new economic development opportunities. The Falmer Associates is investing in a building that has been vacant and deteriorating for over two years. The conversion of the property and interest by companies, like The Falmer Associates, led to the redevelopment of this building and will most likely open up opportunities for future development around the site. The City believes that this project will attract interest in Salem, particularly in the Swampscott Road area, as a competitive location for business. If approved, this TIF Plan will demonstrate that the City can and will offer economic development tools to attract business. Success here will invite interest of firms located outside of the City, with an emphasis on smaller commercial and industrial businesses, such as The Falmer Associates. B. Discuss how TIF "Lone will result in a net economic benefit to the local municipality Approving the proposed TIF zone will result in the following net economic benefit to the City of Salem: 2 THE FALMER ASSOCIATES, INC. TIF Plan • Generation of$14,533 in ultimate annual tax revenue. An increase of 119% over the current base value. • Relocation of 4 existing permanent full-time jobs to Salem. • Creation of at least 7 permanent full-time jobs in Salem. • Job training for entry-level employees. • Assistance in revitalizing part of a formally abandoned, deteriorating structure. • Assistance to a 45 year old, family-run company that will contribute to the revitalization of Salem's industrial sector as a solid participant in the industrial and high-tech community. C. Analysis of proposed and potential land uses The project includes the purchase and build-out of approximately 7,500 square feet of space in a 170,000 commercial condominium building. The Falmer Associates is moving all of their operations to the space. D. Zoning in TIF Zone Business Park Development (BPD) E. Identify any parcels, public or private,in zone which are confirmed hazardous waste disposal sites, in accordance with Chapter 21 E, MGL N/A F. Analysis of how the land uses are appropriated for anticipated economic development The redevelopment and reuse of 96 Swampscott Road presented a challenge due to the size of the building. It was tough to recruit a company to locate to such a large building with limited highway access. The developer who eventually purchased the abandoned building in early 2006 realized the need for commercial and industrial space for companies looking for under 35,000 square feet of space. They divided the space up based on need and created commercial condominiums. The overall project has been very successful. The Falmer Associates is a perfect fit both for the land use and as a part of continued economic development and growth in the city. G. Discuss proximity of TIF Zone to mass transit and to major rail, highway, or other modes of transportation for shipping and delivery The TIF Zone is located approximately a half mile from Route 107/1-lighland Avenue, a four-lane thoroughfare that connects Salem to Boston. Boston's Logan 3 THE FALMER ASSOCIATES, INC. TIF Plan Airport is only 13 miles south of the site and can be reached via Route 107. The site is approximately 4 miles from Route I-95 and G miles to Route 1. Public transportation is also available along Route 107/Highland Ave by the Massachusetts Bay Transportation Authority (MBTA) buses. 'I he MBTA buses provide service daily between the Salem Commuter Rail Station and Haymarket in downtown Boston. The site is located approximately 3.3 miles from the Salem MBTA Commuter Rail Station, which provides service into Boston's North Station in 30 minutes. H. Identify principal commercial and industrial tenants within the TIF Zone The Falmer Associates, Inc. d/b/a Falmer Thermal Spray will occupy the entire unit. IV.TIF ZONE PROJECTS A. Private Projects 1. Proposed Swampscott Road associates LLC purchased and is renovating approximately 7,500 square feet of space in a 170,000 square foot commercial condominium building (former Atlantic Extrusions). The Falmer Associates, Inc. d/b/a Falmer Thermal Spray will be relocating thea operations from Lynn. This move will allow the company to increase their plant size by 3,000 square feet. They will more than double their coating production capacity and compressed air, increase machining and abrasive blasting,using upgraded technology and a leading consulting engineering firm. 2. Planned See above 3. Provide documentary evidence of the level of the developer's commitment to construction proposed & required in the TIF project. The company has purchased the unit (unit deed Attachment D) and secured funding commitments (see attachments E) to construct the project (project budget Attachment H); and construction plans have been completed (see Attachments G). 4. Budget for proposed project expenditures with supporting data. See attachment F. 4 THE FALMER ASSOCIATES, INC. TIF Plan 5. Architectural, plans, specs, engineering reports. See Attachment G. 6. Letters of commitment from local lending institutions See Attachment D. al Economic development other federal p 7. Participation m , state and local programs and initiatives The business participates in SOWMBA with the state and have been certified as a WBE since 1988. 8. Relevant business plans a. Time schedules for development Property purchased:August 2006 Build-out:May-June 2007 (estimated 10-week schedule) Anticipated move-in:June 15, 2007 b. Returns on investment Sales grew 20% in 2006 and it is anticipated that sales will increase by 30-50% in 2007. The same pace of growth is expected in the new facility. c. Expected Increases in Job Creation The expected job growth is 7 full-time permanent jobs in five years. d. Estimated tax revenues based upon increased valuation of the parcel The base value of the condominium is $456,400,which is an apportioned value of the entire building at 96 Swampscott Road. The base tax bill is $6,636. The total value of the property, after the renovation is projected to be 5633,580, which is based on 95% of the purchase price plus 50% of the cost of real estate improvements. The increment in value is $327,219. At the end of the TIF Plan the project will generate $14,533 in annual tax revenue. This represents an increase of 119% in tax revenue over the current base value. 5 THE FALMER ASSOCIATES, INC. TIF Plan B. Public Projects 1. Proposed—N/A 2. Planned —N/A 3. Budget for proposed project expenditures supporting data—N/A V. FINANCING FOR TIF ZONE PROJECTS A. Anticipated Financing for Private Projects 1. Sources and Amounts for Proposed Projects The company has self-financed all the costs of acquiring and renovating the property. See attached funding commitments (Attachment D). 2. Sources and Amounts for Planned projects See above B. Anticipated Financing for Public Projects N/A C. Detailed projection of costs of public construction N/A D. Will betterment be used to finance any public-private projects, now or within the proposed life of the TIF plan? No betterment will be used. E. If betterment or Special Assessments are part of the TIF Plan N/A F. Describe how private projects will be financed L Evidence of private financing commitments See Attachment D (funding commitment letter) 2. Material assumption and requirements See Attachment D (funding commitment letter) and Attachment F (budget for proposed project) 6 THE FALMER ASSOCIATES,INC. TIF Plan VI.TAX INCREMENT FINANCING A. Authorization to use TIF The attached City Council Resolution dated March 9, 1995 authorizes the City of Salem to use TIF in the Salem EOA (Attachment H). The City Council will vote on the Resolution authorizing the use of the TIF Plan for The Falmer Associates, Inc. on March 22, 2007 and the resolution will be forwarded when executed. B. Amount of proposed tax increment exemptions from property taxes, and applicable criteria The attached spreadsheet (Attachment I) shows that the City estimates the tax benefit to total approximately $15,083 over five years. C. Maximum percentage of public project costs that can be recovered through betterment or special assessments in lieu of the incremental real estate taxes N/A D. TIF Exemption from property taxes 1. Term of exemption: 5 years 2. Calculation The base value of the condominium is $456,400,which is an apportioned value of the entire building at 96 Swampscott Road. The base tax bill is $6,636. The total value of the property after the renovation is projected to be $633,580,which is based on 95% of the purchase price plus 50% of the estimated cost of real estate improvements. The increment in value is $327,219. The exemption plan works as follows: YEAR COMPANY PAYS 1 20% of increment, plus base tax 2 40% of increment, plus base tax 3 60% of increment, plus base tax 4 80% of increment, plus base tax 5 90°G, of increment, plus base tax 6 Taxed at full value E. F_ffective date of tax increment exemption July 1, 2007 (Fiscal Year 2008) 7 THE FALMER ASSOCIATES, INC. TIF Plan F. Betterment of special assessments N/A VII. APPROVAL OF TAY INCREMENT FINANCING PROJECTS A. Approval Process The City Council was presented with the TIF Plans and corresponding resolutions on February 22, 2007. The Council referred the matter to a Committee that is meeting on March 19, 2007 to discuss the project. The Council is anticipated to approve the two resolutions accepting the Certified Project Application for the project and allowing the Mayor to enter into a TIF Agreement with the company at their meeting on March 22, 2007. The project will then require approval by the EACC,which is slated to meet to discuss the project on March 29, 2007. B. Person or Board authorized to execute TIF Agreements The Mayor executes the TIF Agreement, upon approval from the City Council. C. Evidence of local approvals of TIF zone Pending City Council approval on March 22, 2007. See Attachment J. D. Evidence of local approvals of TIF plan Pending City Council approval on March 22, 2007. See .Attachment K. E. Executed TIF agreements (any and all) Pending City Council approval on March 22, 2007. See Attachment L. F. EACC approval of TIF plan - Pending EACC approval on Niarch 29, 2007. 8 ATTACHMENT A General Location Map ATTACHMENT B Land Use and Zoning Map ATTACHMENT C Parcel Map (property lines, building footprint and all thoroughfares, public right of ways and easements) ATTACHMENT D Unit Deed F .. '0N.LN=1Wu 4'702_'88 SALEM COMMERCE PARK CONDOMINIUM UNIT DEED GRANTOR: 96 Swampscott Road, LLC, a Massachusetts limited liability company, having an address at 5 Com Point Road, Marblehead, MA 01945 GRANTEE: Swampscott Road Associates LLC, a Massachusetts limited liability company with a principal place of business at 168 Broad Street, Lynn, MA 01901 UNIT: 10 t, o9D � c PERCENTAGE INTEREST: 4.5% � � �"!�� � N s AREA: 7,531 sq. ft. ¢ p N o ;° NWW PARKING SPACES: 36, 37, 38, 39,40,41, 42 d � J U E UNIT POST OFFICE ADDRESS: 96 Swampscott Load, Salem, Massachusetts 01970 aCONSIDERATION: $456,400.00 >r 0 U N a GRANTOR, owner of the UNIT described above 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 T Document Number 468416, and as further amended by the Second Amendment to the Master Deed dated August 1, 2006 and filed on with said Registry District as Document 0 Number in accordance with the provisions of G.L. c. 183A, grants the UNIT to w GRANTEE with QUITCLAIM COVENANTS for the CONSIDERATION stated above. The UNIT contains the AREA listed above and is laid out as shown on a plan filed herewith, which is a copy of a portion of 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. The UNIT is conveyed together with the above-listed PERCENTAGE INTEREST (a) in the common areas and facilities of the Condominium, as described in the Master Deed, and (b) in SALEM COMMERCE PARK CONDOMINIUM TRUST, under Declaration of Trust dated April 24, 2006, and filed with the Essex South Registry District of the Land Court as Document Number 466708 and noted on Certificate of Title Number C-205000. Lam^ J--"'1-1 ,-t PPROVEl) FOR Rd61"104 BYTHB000 J/ - IIIIIIIIIII�IIillllllllIpIII � �`` ��� `��' ��` . 470268 (0206 IIIWIW etch-204077 6outhern Enox Dl•triol A•61•try 6/4/2006 10:57 AM UDEED The UNIT is to be used in accordance with the Master Deed only for commercial purposes to the extent permitted from time to time under the Zoning Ordinance of the City of Salem(the"Zoning Law"), including all special permits and variances granted thereunder, and for no other purpose. No Unit shall be used for the storage of hazardous materials of any kind except in accordance with all applicable laws and regulations. The UNIT is conveyed together with the right and easement to the exclusive use of the PARKING SPACES stated above and shown on the Site Plan recorded with the Master Deed,for the purpose of parking legally registered cars and trucks in regular use by Unit Owners, their employees, customers, visitors, guests and invitees during the existence of the Condominium. Such parking rights may be transferred,but only among the Unit Owners or to the Condominium Trust, by instrument duly filed in the Registry District, and shall end upon the permanent withdrawal of the premises from condominium status. Such parking rights shall be subject to the provisions and limitations set forth in section 5.1 of the Master Deed. Any transfer of a parking space to other than the Condominium Trustees or a Unit Owner, or lease of a parking space to other than the Condominium Trustees or a Unit Owner,in each case shall be void. The GRANTEE acquires the UNIT with the benefit of, and subject to, the provisions of G.L. c. 183A, relating to condominiums, as that statute is written as of the date hereof and as it may hereafter be amended, the Master Deed and Condominium Trust referred to above and any by- laws and rules and regulations from time to time adopted thereunder, and all matters of mord stated or referred to in the Master Deed as completely as if each were fully set forth herein; and subject to real estate taxes attributable to the UNIT which are not yet due and payable. EXECUTED UNDER SEAL this 151 day of "- 2006. 96 SWAMPSCOTT ROAD,LLC %R< By: J. 414ockett,Jr., Manager By: Jos M.Thibert, er 470268lPae• 2 of 61 Southern E.eex oi,trlol ReytelrY 814120a6 10:67 RM UOEEa . THE COMMONWEALTH OF MASSACHUSETTS � ss. On this jjf- da of - 2006, before me, the undersigned notary public, J• 1, ` a •T' Mane eras aforesaid, proved to me through personally appeared6u-f g satisfactory evidence of identification, which was ❑ photographic identification with signature issued by a federal or state governmental agency,❑oath or affirmation of a credible witness, personal knowledge of the undersigned,to be the person whose name is signed on the preceding or attached document,and acknowledged to me that he signed it voluntarily for its stated purpose as Manager of 96 Swampscott Road,LLC,a Massach tts"limited liability company. sotary u lic My commission expires: ��`EFtN vo. WE 470288 (Papa 3 0! 5) Southern Essex District R,pistry 8/4/2008 W57 RM UDEED UNIT N LNrf 06 UNtf#6 U FF 93 UNrr s2 UNIr 78 UNrf#7 UNR 0 UNIT i1 aNI i BUILDING KEY PLAN UNIT #S LEGEND AND NDTES FRED Aq DEPICTS COMMON AREA DEPICTS UNIT BOUNDARY No. 3388 w o rr� DEPOTS MAIN ENTRANCE ls� W MAU.AD. 30;k MAsa. `ra SQUARE FOOTAGES SHOWN ARE APPROXIMATE, OF MSgt` ROUNDED TO THE NEAREST WHOLE. P UNIT #9 UNIT #10 UNrr #1 7,531 GSF tJHR#10, RM OEITIMIFICATION I HEREBY CETTFY TWITTHIS PLAN WAS PREPARED N CONFORMITY (16'-(",TOP OF STEEL) 8 WITH THE RULES AND REGULATIONS OF THE RE9STRY OF DEEDS OF THE COMMONWEALTH OF MASSACHUSETTS I HEREBY CERTIFY THAT THIS PLAN SHOWS THE UNIT DESIGNATION OF THE UNIT BEING CONVEYED AND OF IMMEDIATE ADJOINING WITS,AND THAT IT FULLY AND ACCURATELY DEPICTS THE LAYOUT OF THE UNIT,rFS LOCATDN, DIMENSIONS,APPROXIMATE AREA,MAIN ENTRANCE AND IMMEDIATE COMMON 73.5• TO ICH H ACCESS,AS BULT. W utp / b"1.31•ora �O J P C O low 7s-0 ro t lliam A.Yuh , Registered Architect Date: O, , O o :— �7 m :V UNIT PLAN FOR UNrT #10 Jxo =" SALEM COMMERCE PARK CONDOMINIUM Mm 12 16 96 SWAMPSCOTT ROAD,SALEM,MA 01970 0 A 0 0 0 10 20 40 I—1 DATE: July 31,2006 Page 1 Of 1 U ' O 2 O �I V) C-4 O Y l ' m o Ckf CO Z o LLJ CD C) U C CJ t O W 0 470288 (Pape 5 of 5) Southern Essex Distriot Registry \ 8/4/2008 10:57 HM WEED ATTACHMENT E Funding Commitments ,r Eastern Bank March 12, 2007 Ms. Stacey Ames The Falmer Associates, Inc. 168 Broad Street Lynn, Massachusetts Re: 96 Swampscott Road, Salem,Ma Dear Stacey: Pursuant to the application of the The Falmer Associates, Inc.or approved nominee (hereinafter, the "Borrower"),Eastern Bank(hereinafter,the "Bank") agrees to establish a loan in favor of the Borrower or Borrower's nominee in an amount of up to Seven Hundred and Fifty Thousand Dollars ($750,000.00)to assist in the financing of real estate located at 96 Swampscott Road, Salem, Ma. Final approval is subject to the receipt an acceptable review of the latest fiscal year end financial statements for The Falmer Associates Inc. The terms and conditions are as follows: 1. SECURITY A. The Bank is to have the first mortgage in the Borrower's fee simple interest in and to the land and the dwelling and improvements thereon located at 96 Swampscott Road in Salem, MA(hereinafter,the "Mortgaged Premises"). B. The Borrower shall collaterally assign to the Bank all leases, tenancies, occupancies, rents and rent subsidy contracts relative to the Mortgaged Premises. By execution of this Commitment Letter, the Borrower, and if appropriate, each Guarantor, hereby authorizes and grants to the Bank a limited power of attorney to, at its option (i)execute on its behalf Uniform Commercial Code Financing Statements evidencing the Bank's security interest in the assets of the Borrower/Guarantor_to be provided in conjunction with the establishment of the Loan, and (ii) pre-file (prior to Loan closing) such Financing Statements with the appropriate filing venues so as to perfect a security interest in and to the Borrower's/Guarantor's assets. This Commitment is conditioned upon the receipt and satisfactory review by the Bank and its counsel of the organizational documentation (i.e. Declaration of Trust, Partnership Agreement, Certificate of Limited Liability Company Formation, Articles of Incorporation/Organization, or the like) of the Borrower, and, as appropriate, the Guarantors of the Loan, certified by the appropriate filing agency, if registered, or by the appropriate office (i.e. Trustee, General Partner) if not registered. a 2. GUARANTEE The payment and performance of the obligations under the loan shall be guaranteed by Stacey M. Ames and Daniel Maxwell Meyers. The personal guaranty of Mr. Meyers is subject to negotiation and must be acceptable to both parties. This loan will also carry the corporate guaranty of The Falmer Associates, Inc. 3. MATURITY DATE OF LOAN Ten years (10 yrs.) from the date of loan closing. 4. INTEREST RATE Option 1.The 5 YR FHLB Rate +175 basis points. Based on today's rate that rate would be 6.80% (5.05% +1.75%=6.85%). The rate will be fixed within 7 days of the closing based on the FHLB (Federal Home Loan Bank) Rate for amortizing advances plus 1.75%. At the five year anniversary, the loan will be repriced at the then applicable 5YR FHLB + 175 basis points for the remaining 5 years. If the loan were to close today, your monthly payment of principal and interest would be approx $5,725.00, fixed for 5 years. Option2. The 10 YR FHLB Rate+200 basis points. Based on today's rate that rate would be 7.21% (5.21% +2.00%=7.21%). The rate will be fixed within 7 days of the closing based on the FHLB (Federal Home Loan Bank)Rate for amortizing advances plus 2.00%. If the loan was to close today, your monthly payment of principal and interest would be approx. $5,910.00,fixed for 10 years. 5. REPAYMENT Monthly principal and interest payments commence one month after loan closing. The payments will be based on an amortization schedule not to exceed 20 years. At the expiration of the term of the note,the Bank will review the Banking relationship in the context of the Borrower's credit history, deposit relationship,and its loan portfolio and pricing. The Bank will then determine in its sole discretion whether the note will be renewed for an additional period of time and the terms and conditions of such renewal. 6. COMMITMENT EXPIRATION Fifteen (15)days from the date hereof. 7. TITLE AND DOCUMENTS All documents, agreements, or other instruments used in conjunction with this transaction shall have the approval of the Bank and Bank's counsel. The Bank is to be furnished with a title insurance policy and title certificate on the Mortgaged Premises in the amount of the Loan containing no exceptions (other than those approved by the Bank and Counsel to the Bank). Such title insurance policy shall be in a company or companies acceptable to the Bank and Bank's counsel. r 8. EVIDENCE OF HAZARDOUS MATERIALS At the option of the Bank, the Bank shall be provided with proper evidence(including, without limitation, engineering studies conducted at Borrower's expense) from a source and in form and substance satisfactory to the Bank and Bank's counsel indicating that the Mortgaged Premises do not contain hazardous materials as defined in the Massachusetts Oil and Hazardous Material Release Prevention and Response Act, Massachusetts General Laws, Chapter 21E or in any other applicable law. Borrowers covenant to strictly comply with the requirements of M.G.L. Chapter 21E and any other applicable law and to promptly notify the lender of any releases of oil or hazardous material upon the mortgaged property. The Borrowers agree to indemnify the Bank against all loss, liability, damage and expense, including attorney's fees, suffered or incurred by the Bank under or on account of M.G.L. Chapter 21E or any other applicable law (including the assertion of the super lien). The bank will review the environmental report to determine if it is acceptable under the Bank's environmental policy. The fee for environmental review is 80.00 10. FLOOD INSURANCE Flood insurance is required if the Mortgaged Premises are within a specified flood hazard area as designated by the Director of the Federal Emergency Management Agency. Eastern Bank will obtain a Flood Certification on the mortgaged premises. The fee for this service will be $25.00, per property, and should be included upon acceptance and return of this commitment. The check should be made payable to Eastern Bank and be separate from any other fee. 11. INSURANCE The loan documents shall provide for fire, casualty and other insurance coverage as the Bank may require from time to time in amounts and in companies acceptable to the Bank. The policies shall contain the proper mortgagee clause, Eastern Bank, its successors and assigns ATIMA,and shall be deposited with the Bank throughout the life of the Loan. The property insurance shall be for 100 percent of its full replacement value which in no event shall be less than the amount of the Loan, meeting all co-insurance requirements. All policies shall contain a provision requiring at least 20 days advance notice to the Bank before any policy cancellation or modification. 12. PREPAYMENT PENALTY Pre payment subject to yield maintenance formula. Under this fixed rate option, a "yield maintenance fee" would apply if the loan was prepaid for any reason prior to the end of the fixed rate period. The yield maintenance fee would be calculated at the time of prepayment and would be based on the amount prepaid, the time remaining until the end of the fixed rate period, and prevailing interest rates at the time of prepayment. Depending on prevailing interest rates at the time of a prepayment, there may or may not be a yield maintenance fee required. Partial pre-payments prior to maturity will be discussed prior to closing. . r 13. PLOT PLAN The Borrower is to furnish the Bank and Bank's counsel at least fifteen (15) days prior to the closing with a plot plan showing lot lines and the location of all improvements and shall indicate all easements, utilities, and rights of way on the mortgaged premises. Such plot plan shall contain a certification as to whether the mortgaged premises are located within a flood hazard zone and shall be in form satisfactory to the Bank and to Bank's counsel. 14. ZONING,LAND USE, AND OTHER MATTERS Zoning, land use,environmental laws, title, subdivision, building, and sign permits must be complied with, to the satisfaction of the Bank and the Bank's counsel. The Bank shall be provided with proper evidence from a source acceptable to Bank's counsel that the mortgaged premises complies in all material respects with all applicable building, zoning and land use, environmental protection, sanitary, and safety laws, rules, and regulations of the City of Salem,the Commonwealth of Massachusetts and the United States of America. 15. APPRAISAL Eastern Bank will request and review an appraisal from a Bank approved appraiser reflecting a maximum eighty percent(80%) loan to value on the "as complete" value of the real estate at 96 Swampscott Road in Salem Ma. The Borrower will also pay an appraisal review fee of$105.00 per report. 16. TAXES Prior to disbursement of the loan proceeds, any outstanding unpaid taxes and assessments are to be paid. 17. TAX ESCROW- The Borrower shall pay the Bank a one time fee of $75.00 for a subscription to the service required to monitor the payment for real estate taxes. This fee will be collected before the closing. Prior to disbursement of the loan proceeds, any outstanding unpaid taxes and assessments are to be paid. 18. LATE CHARGE The Borrower shall pay a late charge equal to five percent (5%) of any installment not received by the Bank within ten (10)days of the due date thereof. I' 19. DEPOSIT ACCOUNTS The Borrower agrees to maintain the operating deposit accounts for the Mortgaged Premises with the Bank for the life of the loan. 20. ALIENATION CLAUSE In the event that the property herein described is sold, transferred, or conveyed to any other entity, individual, or individuals, or otherwise voluntarily encumbered in whole or in part, or if there is a change in the trustees or beneficial interest of the nominee realty trust, without the express written consent of Eastern Bank, the entire unpaid balance shall immediately become due and payable at the option of the Bank. 21. GENERAL CONDITIONS/FUTURE INFORMATION The foregoing terms and conditions are predicated upon our present understanding of the proposed financing; and, after a more comprehensive appreciation of the necessary mechanics and other details involved, some further assurance in the nature of security may be required. In addition to those terms and conditions, which are stated above, the Bank's obligations hereunder are conditioned upon the Borrower's execution of such representations,covenants, and warranties as may be required by the Bank. Such obligations are also conditioned upon no material adverse change taking place between the date of this letter and the closing concerning the Borrower's financial condition. This provision shall lapse upon the execution of the requisite loan documentation. 22. FINANCIAL AND OPERATING STATEMENTS Within 90 days of the close of the fiscal or calendar year of the borrower,the Borrower is required to provide copies of documentation showing all specific income and expenses for the property. This information may be detailed in the consolidated financial statement of The Falmer Associates,Inc and/or the corporate tax returns of the Approved Nominee. The personal financial statements of Stacy M. Ames and Daniel Maxwell Meyers shall also be provided to the Bank annually. 23. FINANCIAL COVENANTS The consolidated financial statements should reflect adherence to the following: 1) Minimum combined Debt Service Coverage of 1.20X 24. CONVEYANCING ATTORNEY James Rudolph, Esq. Rudolph Friedmann LLP 92 State St., Boston, Ma. 02109 (617)723-7700 fax (617)227-0313 ,1 25. COSTS Whether or not the transaction herein contemplated is completed, the Borrower will pay all costs incidental to the transaction, including specifically all costs of title insurance, recording fees, survey costs, appraisal costs, and fees of our counsel. 26. OPINION OF COUNSEL There shall be furnished to Bank an opinion of counsel to the Borrower dealing with such matters as the Bank or Bank's counsel may request relating to the Borrower, the Loan Documents, and the various terms and conditions provided herein. Such opinion shall be in form and substance satisfactory to Bank and Bank's counsel. 27. COMMITMENT TO SURVIVE LOAN CLOSING The parties hereto agree that this commitment shall survive the Loan closing and that each and every one of the obligations and undertakings of the Borrower and the Guarantor set forth in this commitment shall be continuing obligations and undertakings and shall not cease and determine until the entire Loan,together with all interest and fees due hereon and all other amounts which may accrue pursuant to this commitment and/or the Loan Documents executed pursuant thereto, shall have been paid in full,and until the obligations and undertakings of the borrower and the Guarantor shall have been fully completed and discharged. 28. CONDITIONS PRECEDENT Unless otherwise indicated, the conditions provided for herein are conditions precedent to the Bank's obligation to enter into the loan transaction and disburse any funds thereunder. In order to facilitate the Bank's review of the material necessary to evidence the compliance with such conditions, the Borrower agrees to deliver any and all material required hereunder to Bank or Bank's counsel at least ten (10)days before the closing. 29. TERMINATION Bank may terminate this commitment by written or telegraphic notice to the Borrower in the event that: (a) Borrower or Guarantor shall fail to comply with any of the terms, provisions or conditions hereof, or(b) any representation, warranty, statement, certificate, schedule or report made herein or delivered to Bank in connection with this commitment is false or misleading in any material respect as of the time made or furnished; or(c)Borrower does not pay any of the fees and expenses provided for herein; or(d) the financial condition or operations of the Borrower or the Guarantor prior to closing shall have changed unfavorably in any material degree from its or his condition or operations as heretofore represented to Bank; or(e) any material adverse action, suit, or proceeding shall be instituted against or threatened against Borrower, the Premises, or the Guarantor; or(f) Borrower or the Guarantor default on any other loan it may have with Bank or any affiliate thereof; or(g) there shall be any material adverse change in the condition of the Premises. 30. ACCEPTANCE This commitment shall be deemed accepted when the enclosed copy of this letter has been signed by you and delivered in hand to us in or within fifteen (15) days from the date hereof, together with review fees of 285.00. This commitment may not be assigned or otherwise transferred without the written consent of the Bank. We appreciate this opportunity to serve your banking needs and look forward to a mutually satisfactory business relationship. Sincerely, ;06" V Joseph V Leary Senior Vice President Accepted: Date: The Falmer Associates, Inc. BY: Stacy M. Ames, as Officer&Individually BY: Daniel Maxwell Meyers, as Officer &Individually h/cmtl/jvl/falmer07 ATTACHMENT F Project Budget Falmer Thermal Spray Moving Budget Purchase Price of Condominium* 468,000 Groom Construction Build Out of Condo* 565,823 Change Orders 20,000 Atlantic Ventilation Purchase Order (Equipment & Installation)* 169,700 Concord Controls (Consulting, Equipment & Installation)* 96,755 Concord Controls (Additional Consulting, Equip & Installation) 35,000 Bay State Abrasives (Equipment)* 17,000 Bill Yuhas Architect (Services)* 30,000 BLW Engineers (Services)* 11,000 Structures North (Services)* 4,000 Wayne Alarm* 1,000 New England Networks (Tel/Data Equipment & Installation)* 29,000 Rigging & Moving* 35,000 Electrical Hooking up of Equipment 15,000 Office Furniture 10,000 Insurance 1,500 New Air Compressor&Dryer (Air Energy)* 10,000 Legal Services* 3,500 Shelving/Gas Storage/Misc. Equipment 10,000 TOTAL 1,532,278 *These are real quoted costs. Unmarked are estimates. ATTACHMENT G Construction Plans _ F.- x e , vc iero,ea�. i Mi I •- 4) 'r Tai _ _ 1 2 eaa«ces.�«ms mws�m ulo pox.. 3 4 e�e.m wom�eemeYs sFs noos��i.um�+s _ _. ---^ BUILT-IN DETAILS ---_-- ----— -- - -_ - ® Palmer Teavul5pvy �—� J a.a.w uiaro � � •mom ....,m.. � a 20 � U o EQUIPMENT, .E >;� "'• FURNISHINGS AND iy STORAGE PLM EGRESS PUN AND ,I BUILTJNS De1e' .vsw DTewI Ov: vn No. EQUIPMENT, FURNISHINGS AND STORAGE PLAN3 V A- - Snae1 s a T ,r 1�2 C3, IBS � i (� Bot lv.n _ C Or9.3 r 1 k I6l Ilib u Z EXFERIDR ELEVATION ••••n• •,•,•• em...•, .m0o roweu — - --__ _ O .,..a..,.....a.,.., i .,,,..ter.......,... I � 3 I y wxtww.aruwn I Fulmer 11NrAlB1 Spny "o� rano wrwrr..rr , er•w sr.Nwo mLa `/`/ srn Nn Oaru imFa^wri�"rc .nrzx Nu[onmtmc srrsnm[�¢e – [vc. MEAD DETAIL @NEW STOREFRONT - wte STOREFRONT ELEVATION EI m.TM.si•�mwe m.. I pwBu.a rBw I r y' I O M.wP aN.c i FOYER w....nr. Ta "` O 141 uwlmreu. f.�nwrnr EXTERIDR (. mnv[mnc iraevm.r ELEVATION. <oBa[o ursl STG E ANP mrx cow s DANS DETALL@NEW STOREFR OFFICE FOYER ACCOUNTING SEOEALS OM rvro.o.re.ro[.n.on a'w"gyp 103 101 102 DE>'AdS ..w+wweauiucuu ! 4 ONF F O wwi rawwc>,..m[mr u.R uarrc5lwro u.� I� !Dle rnw.- slre������ �wAtlsECTIDN 5 5RL El DETAIL @ NEW STDREFRorrr r� STOREFRONT PLAN A-2.... ...r ra of v I 1P T r 12 . 3 Meo rWLatehe ayacE,teMAStr01eet YY 'r 11 a945 mw o Tel (781)6314039 _mnrur I, - � F..1761)631-1576 q I� Y"I"V� I � I'I � I} Il l ' i {is• I i �� ����� �� I t `�I'i. ?; 'I I.}!--`y rm— 1 I n I C4MOPY TO BE PRICED I p I ro. I er awAMrscon Guss. NCLUDE t 11G11T Flf111PE5 I i LWEEWR�ftwIPI I WxYCKMn MRpdnx�.x ♦MIO µL �lu um5 x LgTED Wp1K BOM ue MES Of ENINgNCE _ R£LFxYam•.[x C/NOPV qND xI w... am nan pp4N LIGHTING Z E%TERIOR ELEVATION EKMEP LOGO TD BE S APPLIED BY OTNEPS /3 t Z.I -PlN STEEL GIRT I r EPST PIETAL p[NNG b i0.1M n MJDIfY A50.EQ11WED ED0.xffW d a °I q3 n SiOREFR— wSigLLNEWTREATED —CAHOPY.SAW CMT.W=BLDCIM FSR oNII E WAu PER .. ' `J.. % _ Falmer Thermal Spray LOGO D ALIMMM P/J¢L n /� /• 965w Ro t —3 DOWN LIGHTINGCH BL MSMG --. _ a • •. Ski—M Ot9T0 FlIt1WEs TIJN . . Dfl.m 9[Raq-BLOB RrLNTERa NU)ALL EIBI STO RMi PfIATEp WOPK AOMD LVSS) SOMOF ENTRANCE /HEAD DETAIL @ NEW STOREFRONT i srALE:l /---------- ----\ - CAROPITO BE PRICEDSASHWTSMNG I•wsUTATMG GtA55 REMIEFWORTION W'41'LS gWNING TYPE.WrtM sg1EENS PEW TV FOR NI E pN OF NCLUpE[4M•IT P%NPEB TTICK I PEW CCCI W bt VP ..T ENRWICE 2 CHE 'I 1$! MPL E. EnsrwG STEEL F1uMN n STOREFRONT ELEVATION seemaT Ll s:re PLRM1' SLgIE:IFra.o i O E%I METAL ADINL b LRM - M'JTy MPEQURFD fM KW I SrpiETAONi l�T� w$lau NEwOCC( w CMr. DBLOCNDD wG I A-I"TACHMENT H City Council Resolution dated March 19, 1995 authorizing the City of Salem to use TIF in Salem EOA RESOLUTION AUTHORIZING THE USE OF TAX INCREMENT FINANCING IN THE SALEM ECONOMIC OPPORTUNITY AREA WHEREAS,.the City of Salem is part of the area designated the Beverly & Salem Regional Economic Target Area and the Salem Economic Opportunity Area; WHEREAS, there is strong support for economic development and the use of Tax Increment Financing as an economic development tool to create jobs and encourage business expansion and relocation to the City of Salem; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Salem that: (I) Tax Increment Financing may be used as a tool to encourage economic development within the Salem Economic Opportunity Area. (2) The Mayor is hereby authorized to execute and implement Tax Increment Financing agreements. Adopted this ZJ/ day of 19 5 by the Salem City Council at a regular City Council meeting with a quorum present. ^/ Neil J. Harrington, Mayor Date ATTEST: Deborah E. Burkinshaw, City Clerk SEAL ' ATTACHMENTI TIF Plan Spreadsheet Estimated Value of EDIP Local Tax Incentives for The Falmer Associates, Inc. *. - ,.... fOlBGte nnUB ' .,.: y �, r >�£y. cq'h., ,Municipal Tax Exompted t , Total Yearly YaLue , ,I,ncremental., '. Proppr(;y Tax Bill for TlF/STA YearlynRnnual { p " "". . Base Tax III Y rO�I Taxes Paid; s �. .r. ..-.A. .. 'eOfFf:O.CaLTalhr FY :Rata Per!,,' r;.el i x; , .�, _ , Annuat Pro y Nl Assessed Value• r Incremental "t Exem tlo k z �Personala=' z ' § i Each Yeafn ThOUSand x4T8%e$ PfG rBrl+Ta%BS pF: 'llCellt�Ve87 ¢ ;.7j ri z ? i r *a h:4a,. .,y -: Assessed Value. 2008 $21.33 $327,219.00 $6,979.58 0.8 $5,583.67 $0.00 $5,583.67 $6,636.00 $8,031.92 2009 $21.33 $335,399.48 $7,154.07 0.6 $4,292.44 $0.00 $4,292.44 $6,636.00 $9,497.63 2010 $21.33 $343,784.46 $7,332.92 0.4 $2,933.17 $0.00 $2,933.17 $6,636.00 $11,035.75 2011 $21.33 $352,379.07 $7,516.25 0.2 $1,503.25 $0.00 $1,503.25 $6,636.00 $12,649.00 2012 $21.33 $361,188.55 $7,704.15 0.1 $770.42 $0.00 $770.42 $6,636.00 $13,569.74 2013 $21.33 $370,218.26 $7,896.76 0 $0.00 $0.00 $0.00 $6,636.00 $14,532.76 Assumes annual increase of 2.5%in assessed property values' TOTALS $15,082.94 $0.00 $15,082.94 $39,816.00 $69,316.79 Base Value FY06 $ 306,361 Purchase Price $456,400.00 Value After Building Renovation $ 633,580 Cost of Improvements $400,000.00 Increment in Value $ 327,219 Total Investment $856,400.00 'Value determined by taking 95%of purchase price (433,580) plus 50%of cost of RE improvements(200,000) Estimated State and Municipal Tax Benefits Estimated Value of Total fist last value of Locel 44ota Yal a of Ince tivesl State's 5%EOA ITC• '` mated.V of.'; ATTACHMENT J City Council Resolution 1 — Authorizing Certified Project Application '01 - RESOLUTION 1 AUTHORIZING CERTIFIED PROJECT APPLICATION OF THE FALMER ASSOCIATES,INC. WHEREAS,The Fahner Associates, 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,The Falmer Associates,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 10. 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 10,described in the UNIT DEED dated August 1,2006 and filed on August 4,2006 with the Essex South Registry District of the Land Court as Document Number 470288. The Unit is located in SALEM COMMERCE PARK CONDOMINIUM created by Master Deed dated April 24, 2006 and Sled on April 27,2006 with the Essex South Registry District of the Iand 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 Sled 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 The Falmer Associates, Inc. a Tax Increment Financing Agreement; Pending Coumil Approval WHEREAS,The Falmer Associates, Inc. will invest approximately $856,400 to construct a new manufacturing space and will retain 4 jobs and create 7 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 The Falmer Associates, 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 ATTEST: Cheryl LaPointe, City Clerk SEAL Pending Council Approval ATTACHMENT K City Council Resolution 2 — Authorizing a Tax Increment Financing Agreement i rI RESOLUTION 2 AUTHORIZING A TAX INCREMENT FINANCING AGREEMENT FOR THE FALMER ASSOCIATES, INC. 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 ivfayor 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 The Falmer Associates, Inc. to the City of Salem and renovation of 96 Swampscott Road, Unit #10, the property owned by Swampscott Road Associates LLC and leased to The Falmer Associates, 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 10, described in the UNIT DEED dated August 1, 2006 and filed on August 4, 2006 with the Essex South Registry District of the Land Court as Document Number 470288. 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 kfaster 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. 183_\. Pending CounalApprooal The UNIT contains the AREA listed in the UNIT DEED and is laid out as shown on the plans filed with the blaster 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_day of March, 2007 by the Salem City Council at a regular City Council meeting with a quorum present. Date: Kimberly Driscoll, lWayor ATTEST: Cheryl LaPointe, City Clerk SEAL EXHIBIT A: Tax Increment Financing Agreement EXHIBIT B: Map of Tax Increment Financing Zone Pending Coun iltlpprovnl r EXHIBIT A TAX INCREMENT FINANCING AGREEMENT CITY OF SALEM, MASSACHUSETTS and THE FALMER ASSOCIATES, 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 THE FALMER ASSOCIATES, INC., a Massachusetts corporation,with a principal place of business at 168 Broad Street,Lynn, MA 01901 (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, Unit 10 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 , 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 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 10 at 96 Swampscott Road in Salem. "The FACILITY" as used herein means 96 Swampscott Road, Unit #10 containing 7,531 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, 1'enrling CowmlAppmval L 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: The full value of improvements to the FACILITY is hereinafter called"the INCREMENT". For the first year, the COMPANY will pay taxes on 20% of the full value of the INCREMENT, plus the base tax bill. In year two, the COMPANY will pay taxes on 40% of the full value of the INCREMENT, plus the base tax bill. In year three, the COMPANY will pay taxes on 60% of the full value of the INCREMENT,plus the base tax bill. In year four, the COMPANY will pay taxes on 80% of the INCREMENT,plus the base tax bill. In year five, the COMPANY will pay taxes on 90% 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 THE FALMER ASSOCIATES, INC—. Kimberley Driscoll, Mayor Stacy M. Ames Pending CounczlApproual TAX INCREMENT FINANCING ZONE :. FALMER THERMAL SPRAY q, � t� >� 96 SWAMPSCOTT ROAD UNIT #10 SALEM, MA t�. w � T � t t W sl i,/ ��� b a�.cwt •. M1 zf*$ ,+?;:,'$§.. �"L'^� � V 'CITY OF SALEM_ �f t � � d4�1 4 ♦ M aalb.n:r 0 0 1. `,��»Y�''-� r. Nap creaeeE by SalemGlS and ^"-^± �,y. 4 ,L Applied Geo9rapbics,Febaary 2001 ' , FOR PLANNING PU0.POSES ONLY �3G '' y ,y Ea 4;( N µvk'r k'M# a y.v,t`j _ DATA SOURCES. FbT} q�;K fes} RaaEa xo G1Y al6abm k _f t �"„.�! '� 3 ( tNS� •T"y�ya,. avw..yy. /� �rvK v •F se swampamn Re Pad y 3�n" 1 > _ , � to}rRik r" � �.,K�".,isry Q Pxd l✓aa _ i � rt� .I .0 h� � S?a}a��,�,K �`/�g� . ATTACHMENT L Tax Increment Financing Agreement f Ilk ? TAX INCREMENT FINANCING AGREEMENT CITY OF SALEM, MASSACHUSETTS and THE FALMER ASSOCIATES, 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 THE FALMER ASSOCIATES, INC., a Massachusetts corporation, with a principal place of business at 168 Broad Street, Lynn,Mil 01901 (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, Unit 10 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 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 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 10 at 96 Swampscott Road in Salem. "The FACILITY" as used herein means 96 Swampscott Road, Unit #10 containing 7,531 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 \favor, Citv 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) PendinX Corn ciL"lpp oval 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: The full value of improvements to the FACILITY is hereinafter called "the INCREMENT". For the fust year, the COMPANY will pay taxes on 20% of the full value of the INCREMENT, plus the base tax bill. In year two, the COMPANY will pay taxes on 40% of the full value of the INCREMENT, plus the base tax bill. In year three, the COMPANY will pay taxes on 60% of the full value of the INCREMENT, plus the base tax bill. In year four, the COMPANY will pay taxes on 80% of the INCREMENT,plus the base tax bill. In year five, the COMPANY will pay taxes on 90% 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 THE FALMER ASSOCIATES, INC. Kimberley Driscoll, :Mavor Stacy \1.Ames Pending Counti!Flppmual Swampscott Road Associates, LLC' The Falmer Associates, Inc. Application for Certified Project Designation Tax Increment Financing Plan ' 7 e Zz 96 Swampscott Road, Salem,Massachusetts Presented to: Economic Assistance Coordinating Council Presented by: Mayor Kimberley Driscoll City of Salem Swampscott Road Associates, LLC The Falmer Associates, Inc. March 13, 2007 168 Broad Street Lynn, 5 01901 FALMER � Thermal Spray Tel.7811 s9s.00as Fax 781 598.0280 January-l0;2007 \favor Kim Driscoll City of Salem 120 Washington Street Salem,\4,101970 Dear mayor Driscoll, It was a pleasure speaking with last summer. We at Falmer are excited about our relocation to Salem. Per our conversation on June 20,2007,we intend to apply for Tax increment Financing with the city and Peter Milano from the NIA Office of Business Development. We hope to meet with Tania Hartford at our earliest convenience. Please feel free to contact me with any further questions or requests. Respy, �Q Z� Stacy iAf. Imes President c CITY OF SALEM, MASSACHUSETTS Kimberley Driscoll Mayor March 12, 2007 Economic Assistance Coordinating Council ATTN: Robert Foley, Program Manager EDIP Massachusetts Office of Business Development One Ashburton Place, Suite 2101 Boston, MA 02108 To the Members of the Economic Assistance Coordinating Council: I am pleased to submit for your review the applications and supporting documentation necessary to designate Swampscott Road Associates, LLC a Certified Project through the Commonwealth's Economic Development Incentive Program (EDIP). Swampscott Road Associates, LLC is the holding company for The Falmer Associates, Inc., a growing, woman-owned, company looking to expand and move their operations to Salem's newest industrial park at 96 Swampscott Road. Shortly after taking office last year, a developer approached me about his purchase of the former Atlantic Extrusions building at 96 Swampscott Road. The 170,000 square foot building had been vacant for over two years, with little interest from companies or developers looking to invest in the property. The developer envisioned redeveloping the property into industrial/commercial condominiums for smaller manufacturing companies. He quickly found interest from local companies looking for space and willing to invest in the property. The building is now home to nine companies, who are investing a great deal in their units. Three of these companies approached the City for assistance, The Falmer Associates, being one of them. The Falmer Associates was founded in 1961. The company has been at its current location in Lynn since 1984. They are moving to Salem and purchasing a 7,500 square foot unit at 96 Swampscott Road. This move will allow the company to increase their plant size by 3,000 square feet. They will more than double their coating production capacity and compressed air, increase machining and abrasive blasting, using upgraded technology and a leading consulting engineering firm. The investment in the purchase and renovation of the unit is anticipated to be $856,400. The company is expecting to increase sales in 2007 by 30 to 50% over 2006 levels and plan to grow sales 3-6 fold in the new facility. The expected job growth is 7 full-time permanent jobs in the next five years. The City is proposing a five-year TIF Agreement for The Falmer Associates. If approved, it will be the first time in nearly six years that the city has used this valuable economic development Salem City Hall—93 Washington Street—Salem, MA 01970-3592 Ph. 978-745-9595 Fax 978-744-9327 Y . tool to promote development in Salem. Projects using this tool in the past have exceeded job creation goals and continue to provide meaningful tax revenue to the City. The financial impact of the project is substantial and will help send the message that we welcome new businesses and encourage economic development in Salem. On February 22, 2007, the project was submitted to the Salem City Council to designate the company as a certified project and endorse a five-year Tax Increment Financing(TIF) plan. The Council is reviewing the project at the Committee level on March 19 and we anticipate a favorable vote on March 22, 2007. The enclosed TIF plan and application for certified project status describe the City's reasons for offering the incentives and the benefits, which the company will bring to Salem. I appreciate your support of our economic development efforts and hope that, once again, you will vote to certify a Salem project. Very truly yours, w �� 46�1 Dvl"t v' Kimberley Driscoll Mayor Salem City Hall—93 Washington Street—Salem, MA 01970-3592 Ph. 978-745-9595 Fax 978-744-9327 Certified Project Application —Page 1 The Massachusetts Economic Development Incentive Program CERTIFIED PROJECT APPLICATION APPLICANT INFORMATION 1. Name and address of business(es)submitting this application (please list fiscal year and for each business): Swampscott Road Associates, LLC 96 Swampscott Road, Unit 810 Salem, MA 01970 Fiscal Year End: December 3191 The Falmer Associates, Inc 168 Broad Street Lynn, MA Fiscal Year End: December 3191 2. Name and address of project(if different from above): N/A 3. Location of ETA: Beverly&Salem ETA 4. Location of EOA: Salem S. Authorization: Me, (print) Stacv M.Ames, Of Swampscott Road Associates,LLC 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 certifica ? Dat (Signature)l (Date) (Signature) (Date) 2'd b0t4MtL8L6T6:01 08208609)1 lki483H1 834-kid:W08d 6£:ST )002-9T-83d 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. Business Description: History and Description of Thermal Spray The Falmer Associates Inc. was founded in 1961 by Newton I. Meyers, a Brown University and Harvard Business School graduate in Marblehead, MA. His goal was to transfer WWII jet engine and rocket technology to commercial applications. A Rhode Island native, he was very familiar with wear and corrosion problems in the state's jewelry and wire manufacturers during the 1950s and 1960s. From the period of 1961 to 1972, Meyers designed and marketed a line of wear resistant, ceramic coated components and created a local market for his services. Newton Meyers had an inventor's mind. Thermal Spray technology is over 100 years old. It is defined as a group of coating processes in which finely divided metallic or nonmetallic materials are deposited in a molten or semi-molten condition to form a coating. Thermal sprays are found in cars, power plants, on Navy Ships, in electronic components, on bridges, and of course in jet engines. Thermal spray coating use is on the rise across industries. They are efficient, elegant value added solutions. High temperature ceramics on aluminum, metals on plastics, carbides on steels, possibilities are endless. Thermal spray is a niche, growth industry. Meyers moved to Danvers in 1965 and ran the company out of the first floor of his home and garage. His business doubled in size in 1972. Unaware of high cholesterol and complications from a previous heart condition, he died from a massive coronary in November. His widow Rita was left with four children, ages 5 to 11, and a business she knew little about. A business teacher by training, she knew there would be no mid-year openings, so she started to read his files, answer customer and supplier calls and eventually filling orders. Newton had set up a network of coating companies and machine shops supplying his operation. He marketed, assembled and did light honing out his facility. With her business education background, Rita studied the records to hunt down suppliers to create production. She sold, managed staff and created a larger concern over time that supported her family and sent all her children to private colleges. Her son Daniel was a salesman for Falmer during his college years. Her daughters Stacy and Lisa also worked in the company. Rita, Dan and Stacy grew Falmer in the early 1980s, adding semi-conductor and other commercial industry customers. As the business grew, suppliers could not keep up with increased production. In 1984, Rita secured capital from the Beverly Savings Bank and rental space in downtown Lynn. The purchase coating equipment and began operations in November 1984. The business was transformed from a supplier based to a manufacturing based service company. Sales Growth and Expansion Over the years, Falmer has built its customer base to include Raytheon, AW Chesterton, General Cable, US Army, MIT, Bayer, Osram Sylvania, Rea Magnet Wire, Stowe Woodward and Schwarzkopf Technologies. We serve a variety of industries with wear, corrosion, erosion, insulation, conduction and surface reclamation coatings. In terms of expansion, Falmer will increase plant size with this move from 4500 to 7500 square feet. We will more than double our coating production capacity and compressed air, increase machining and c Certified Project Application -- Page 3 abrasive blasting, using upgraded best available technology and a consulting engineering firm who has set up coating systems for Pratt &Whitney and Corning Glass Works. We have added a New England sales representative with decades of industry experience and advertising in an effective, local purchasing publication. We have a consultant working with us to identify costs, update systems, make efficiencies where possible and pinpoint our pricing structures. We are looking at the impact of ISO certification on customer development. I have personally met and take advise from Christine Sullivan at the Enterprise Center and Margaret Somer with the SBDC. Falmer has SOWMBA, WBENC(Women's Business Enterprise Council) and SBA HUBZone certifications. Falmer is a service company with stringent customer delivery requirements. Our reputation has been built on the service as well as the coatings we provide. As a certified Woman Owned Business, Falmer has gained access to Raytheon and Homeland Security contracts; we keep them with quality product, good communication skills and keeping our word. Falmer also partners with one of the best high tolerance grinding companies in New England. Together, we supply seals for the Australian Navy and components for finishing machines that make automotive cam shafts for the Big Three. In addition, we process parts as large as pick up trucks with a local iron forge. As a result, Falmer is bigger and more flexible than the sum of its parts. We plan move into our new facility in two stages, set up our new equipment and bring what we need to be functional, and then move what we can from our existing plant. I hope to increase sales in 2007 by 30 to 50% over 2006 levels. (Sales grew 20% in 2006.) 1 plan to grow sales 3-6 fold in the new facility. Currently, we have 4 full time and 1 part time employees. We hope to bring the part time employ up to full within the next few months. I anticipate bringing on one other full time employee by the middle of 2007, and an additional 1-2 full time employees in 2008. 1 conservatively anticipate 10 full time employees in 3 to 5 years. Investment Falmer's investment includes the following: Purchase of 96 Swampscott Road, Unit 10 industrial condominium 470,000 Build out of shell space including new store front, offices with conference room and kitchen, bathrooms, access doors, heating, air conditioning in offices, electrical service and wiring, plumbing service, telephone, data and high speed internet wiring. 400,000 New plasma coating system with recirculating water chiller 34,000 New coating room with state of the art ventilation and make up air systems. 220,000 30 HP Air compressor with desiccant dryer, air piping throughout the facility 12,000 New Machining Lathes. 10,000 Electrical Work for Manufacturing Facility 70,000 Automated Tumble Abrasive Blast Machine 1,500 Walk behind fork truck. 1,500 Office Furnishings 12,000 Telephone and Data Systems 28,000 Equipment installation and rigging expense 92,000 TOTAL ESTIMATED INVESTMENT 1,351,000 Falmer is seeking Certified Project designation for a number of reasons. First, we hope to access some fiscal support for the project. Falmer is a small business; this is a very large project for us. Support from the city and state is vital for our success. Secondly, my family and I have lived our lives on the North Shore and believe in these communities. We believe Falmer Thermal Spray can be part of the diversified economic base Salem needs for a multi- faceted, vibrant economy. Finally, Falmer has always partnered with other companies to accomplish project that we could not individually take on. I believe these relationships make the participants stronger and open up opportunities that we did not envision when we started. I have supported and served on the board of Certified Project Application -- Page 4 Girls Inc. of Lynn, am a member of the local chamber and a 100 member women's networking group. Falmer has a history of civic support. In conclusion, Falmer Thermal Spray has been a profitable business concern in Lynn for 22 years. We are excited about our new more permanent home in Salem. We look forward to expanding and updating our operation and believe we have a bright future. Thank you for your consideration. Certified Project Application -- Page 5 7. Is this business new to Massachusetts? Yes No If no: • Where are the existing Massachusetts facilities? 168 Broad Street Lynn, MA • Will this project require/trigger the closing or consolidation of any Massachusetts facilities? If yes, please explain. Yes, Falmer will upgrade facilities and move to its new Salem location. 8. Is this project an expansion of an existing business? Yes No If yes, check the appropriate box: at existing location at new location in same municipality at new location in different municipality At new 96 Swampscott Road, Salem location 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 (2008) (2009) (2010) (2011) (2012) If Applicable Total Employees at Certified Project Facility in Mass. 4 4 7 2 2 1 1 1 Total Employees in Massachusetts at other sites. 4 4 # of Employees at Certified Project Location who live in the ETA of the Certified Project 1 1 4 2 1 2 1 1 1 # of Permanent Full- Time Employees 4 4 7 2 2 1 1 1 # of Permanent Part- Time Employees 1 1 2 1 1 2 2 2 #of Temporary Full- Time Employees 0 1 0 0 1 0 0 0 # of Temporary Part- Time Employees 0 0 0 0 0 0 JOBS BY CLASSIFICATION (List#of Jobs, and Average Wage/S lary. Please feel free to use your company's classification system) # of Management Positions $75K+ 1 1 1 0 0 0 1 0 #of Professional Positions 0 0 0 0 0 0 0 0 # of Technical Positions $30-60K 2 2 2 1 0 1 0 0 # of Skilled Positions $15-$30K 0 2 1 1 0 0 0 # of Unskilled Positions $12-30K (1) 1 2 0 1 1 0 1 0 1 Certified Project Application -- Page 7 10. Certification for Abandoned Buildings -- Does the proposed project involve the renovation and reuse of an abandoned building? Yes 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? 11. We will work with the existing city and regional resources to find local, qualified individuals for employment. We have in the past used other traditional methods such as newspaper/internet advertising, word of mouth, and local colleges as resources. 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 The only reason to undertake this project is to grow the size of the business. The capital expenditure will make it possible for Falmer to higher more employees and expand its position in the marketplace. (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. This project is likely to succeed for three major reasons. 1. As you can see from the budget, there is a very high barrier to entry for arc wire thermal spray coatings because of increased dust generation. We at Falmer are Certified Project Application -- Page 8 making the investment using best available technology to set up a safe, green facility. Our business has been growing in this area as our competition decreases. These coatings are needed by Raytheon, implantation equipment companies, electronic controls manufacturers, and a new homeland security application. We can demand a higher margin due to the decreased competition and the high barrier to entry. 2. Experience. Falmer is a 45 year old corporation with a broad range of steady customers across industries and a staff with decades of experience. Falmer's senior production employee has a tenure of 13 years. We have a great reputation in our industry and have conquered many challenges along the way. 3. We are moving from a second floor location in a dilapidated mill building in downtown Lynn to a larger, modern, state of the art facility. The efficiencies and professional appearance will on their on help grow the business. 12. Affirmative Action -- Does the business have an Affirmative Action/Equal Employment Opportunity Plan or Statement? Yes No If yes, please attach a copy. Affirmative Action policy Falmer Thermal Spray agrees not to discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation or national origin. 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? Falmer has recently moved to Eastern Bank after more than 20 years with TDBankNorth. Falmer has a flexible line of credit, an equipment line and will mortgage a portion of the built out condo. Our banker is: Joseph V. Leary,S.V.P Eastern Bank LF24 605 Broadway,Saugus,MA 01906 Direct Dial-781-581-4221 Fax 581-4225 J.Leary @ Easternbk.com 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 Certified Project Application -- Page 9 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. Economic benefits to the applicant 1. Swampscott Road Associates, LLC will be entitled to Massachusetts 5% Investment Tax Credits 2. The tax relief will add working capital to Falmer as it renovates the space and aggressively grows its sales, and resulting labor force. 3. Swampscott Road Associates will save approximately $15,000 in local property taxes over the next 5 years. It will help defray some of the built out costs it incurs in this endeavor. Economic benefits to the City of Salem 1. Falmer helps the city by revitalizing part of a structure that had been abandoned, deteriorating, and vandalized. 2. Falmer is a 45 year old business with a solid customer base and good growth potential. Falmer will provide good, stable employment to local residents. 3. Falmer has a long history of being a supportive corporate citizen, supporting local non-profits and encouraging its employees to live in and enrich the community. 4. Falmer is a solid high technology company that will help revitalize Salem's industrial sector as a solid participant in the industrial/high tech community. 5. Falmer plans to add 6-10 new jobs in Salem. 6. Long term tax revenues generated from the company and future employees will support the city. Certified Project Application -- Page 10 SPECIAL REQUIREMENTS FOR REAL ESTATE PROJECTS 1. Will the business own or lease/rent the facility? Own Lease/Rent If leasing/renting, please identify the developer/landlord, and state who will be the taxpayer of record for the purpose of paying local real estate taxes. The landlord is Swampscott Road Associates, LLC. The property was purchased by The Falmer Associates, Inc. in the form of its holding company, Swampscott Road Associates, LLC. As a matter of business practice, The Falmer Associates, Inc., leases the building from the LLC. If owning, will the business fully occupy the space? Yes No If no, does the business intend to lease/rent the remaining space? The Falmer Associates, Inc. will occupy the entire 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 tax relief will benefit the construction and growth planning for the Falmer Associates, Inc. SUPPLEMENTAL INFORMATION 1. Name(s) of the business(es) intending to take advantage of the state tax incentives: Business Name: The Falmer Associates, Inc Federal Employer Identification #: 04-2296030 Address: 168 Broad Street Lynn, MA 01901 Phone: 781-593-0088 Fax: 781-598-0280 Contact Person: Stacy M. Ames Type of Organization (check all which applies): Corporation For-ProfitC S-Corp Non-profit Business Trust Partnership General Partnership Limited Partnership Individual Level of Interest: 5% Investment Tax Credit 10% Abandoned Building Tax Deduction (if applicable) Certified Project Application -- Page 11 Local real estate tax incentive beneficiary 2nd Business Name (if applicable): Swampscott Road Associates, LLC Federal Employer Identification #: Address: 168 Broad Street, Lynn, MA 01901 Phone: 781-593-0088 Fax: 781-598-0280 Contact Person: Stacy M Ames Type of Organization (check all which applies): Corporation For-Profit S-Corp Non-profit Business Trust Partnership General Partnership Limited Partnership Individual Level of Interest: 5% Investment Tax Credit 10% Abandoned Building Tax Deduction (if applicable) Local real estate tax incentive beneficiary ***If there are more than two businesses intending to take advantage of 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. Falmer Associates, Inc. Stacy M. Ames 2 Chapel Hill Road Beverly, MA 01915 Daniel M. Meyers 2 Avery Street PH2A Boston, MA 02111 Rita Meyers 5 Lobao Drive Danvers, MA 01923 Lisa Henderson 2112 Roswell Ave Charlotte, NC 28207 Sarah Byrne Ducharme 117 Clifton Avenue Marblehead, MA 01945 Swampscott Road Associates, LLC Stacy M. Ames Daniel M. Meyers Certified Project Application -- Page 12 3. Please provide the name, address, phone number and contact person for any organizations Which may own or control the applicant organization, or who are affiliated with the applicant business organization. 4. Certificate of Good Standing -- Please provide proof of good tax standing in the Commonwealth of Massachusetts via a Certificate of Good Standing, which is a letter issued by the Massachusetts Department of Revenue. To obtain a Certificate of Good Standing, please see Attachment I of this application. wa G.Mn 8=catryo:the cauunmwedft February 1%2007 TO WHOM LT MAY CONCERN: I hereby certify that according to dw records of this office, THE FALMEIR ASSOCIATES INC. is a domestic corporation organized on August 3,1968,under the General Laws of the Commonwealth of Massachusetts. I further certify that there are no proceedings preseatiy pending under the Massachusetts General Laws Chapter 156D section 14.21 for said corporation's dissolution;that articles of dissolution have not been filed by said corporation;that,said corporation has filed all annual reports,and paid all fees with respect to such reports,and so far as appears of record said corporation has legal existence and is in good standing with this office. In tesUrnony of which, I have hereunto atfwtd the Great Seal of the Commonwealth �i on the date fuer above written. Secretary of the Commonwealth Processed.By.NEM 2'd t,0t7WtLBL6i6:01 092086St0Lt -kM83H1 8314lli3-W083 LS:SS L002-91-e3d Fonl Application for Employer Identification Number OMB No. 1545-0003 (Rev.February 2006) (For use by employers,corporations,partnerships,trusts,estates, churches, EIN government agencies,Indian tribal entities,certain individuals,and others.) Department of the Treasury h amal Revenue service ► See separate instructions for each line. ►Keep a copy for your records. 1 Legal name of entity (or individual)for whom the EIN is being requested Swampscott Road Associates LLC r2 Trade name of business(If different from name on line 1) 3 Executor,administrator, trustee,"pre of name ra to ZS 4a Mailing address(room, apt,suite no.and street,or P.O. box) 6a Street address(if different)(Do not enter a P.O.box.) c 168 Broad Street p 41a City, state, and ZIP code 5b City. state,and ZIP code o` Lynn, MA 01901 o. 6 County and state where principal business is located ' Essex, MA 7a Name of principal officer,general partner,grantor, owner,or trustor 7b SSN,ITIN,or EIN Stacy Ames 033-48-3206 Set Type of entity(check only one box) ❑ Estate (SSN,of decedent) ElSole proprietor (SSN) ElPlan administrator(SSN) ® Partnership ❑ Trust(SSN of grantor) ❑ Corporation (enter form number to be filed) ► ❑ National Guard ❑ StateAccal government ❑ Personal service corporation ❑ Farmers'cooperative ❑ Federal governmentmit itary ❑Church or church-controlled organization ❑ REMIC ❑ Indian tnbai governments/enterprises; ❑Other nonprofit organization (specify) ► Group Exemption Number(GEN)► ®other (specify) ► LLC to be treated as aartnershi Bb If a corporation, name the state or foreign country State Foreign country (if applicable)where incorporated MA j 9 Reason for applying(check only one box) ❑ Banking purpose (specify purpose) ► ® Started new business (specify type) ► ❑ Changed type of organization (specify new type) ► Real Estate Rental ❑ Purchased going business ❑ Hired employees(Check the box and see line 12.) ❑ Created a trust (specify type) ► ❑Compliance with IRS withholding,regulations ❑ Created a pension plan (specify type) ► ❑Other(specify) ► - 10 Date business started or acquired(month, day, year).See instructions. 11 Closing month of accounting year 07/26/2006 December 12 First date wages or annuities were paid (month, day,year). Note. If applicant is a withholding agent,enter date Income will first be paid to nonresident alien. (month,day, year). .... .. ......... .. .. ..... .... ....... ....... ► ` 13 Highest number of employees expected in the next 12 months(enter-0- if none). Agricultural Household Other Do you expect to have $1,000 or less in employment tax liability for the calendar year? M Yes [J- No.(If you expect to pay $4,000 or less in.wages,you can mark yes.) 0 0 14 Check one box that best describes the principal activity of your business. ❑ Healthcare&social assistance ❑ Wholesale-agentbroker ❑ Construction ❑ Rental&leasing ❑ Transportation&warehousing ❑ Accommodation &food service ❑ Wholesale-other ❑ Retail ® Real estate ❑ Manufacturing ❑ Finance&insurance ❑ Other(specify) 15 Indicate principal line ofmerchandise sold, specific construction work done, products produced, or services provided. 16a Has the applicant ever applied for an employer identification number for this or any other business?.. .. .... .. . ❑ Yes 1Y No Note. If"Yes" please complete lines 161b and 160. 161a If you'checked 'Yes'online 16a,give applicant's legal name and trade name shown on prior application if different from line 1 or 2 above. Legal name ► Trade name 11- 16c 16c Approximate date when,and city and state where, the application was fled. Enter previous'employer identification number if known. Approximate date when flied(mo.,day,year) City and state where filed Previous EIN Complete this section only if you want to authodzelhe named individual to receive the entity's EIN and answer questions about the complelion of this form. Third Designee's name - Designee's telephone number(include area code) Party John Sweene 617-790-4830 Designee Address and ZIP code 4 Lawrence Street Designee's fax number Conclude area code) Danvers MA 01923 617-790-4930 Under penalties of perjury,I declare that I haveexamined this application.and to the best of my knowledge and bete(it is true,correct,and complete. Applicant's telephone number(include area code) Name and title("or print clearly) ► Stacy Ames President 781 593-0088 Applicant's fax number(include area code) Signature ► Date 0-8/4/2006 781 598-0280 For Privacy Act and Paperujbirk Reduction AM Notice, see separate instructions. Form SS-4 (Rev.2-2006) ISA STF FE07769F.1 Due Diligence Letter The Falmer Associates, Inc/Swampscott Road Associates, LLC The Falmer Associates, Inc. provides thermal spray coating services for manufacturing and commercial corporations throughout the United States. In 1984, we leased space at 168 Broad Street in Lynn, MA and have been operating out of that location for 23 years. A change in property ownership forced us to re-evaluate the viability of continued business at that limited location with increased rent and lack of stability being a tenant at will. The Lynn location is 4,000 sq. ft. on a second floor in an old mill building that was formerly a stable and garage for the Hotel Edison. In order to grow, we needed a larger and more accessible facility. Our first thought was to remain in the City of Lynn, and we unsuccessfully attempted to find adequate space for us to lease or purchase. After spending 4 months looking in Lynn, I spoke to Peter DeVeau, the former head of Communities and Development for the city. He suggested that he knew of no suitable available location for us to relocate. He understood my ties to Lynn, but felt it was time for me to explore other options that would be optimal for my business. In April, we found 5500 square feet of industrial rental space off Foster Street in Peabody that would have been appropriate for our needs. The leasehold improvements required for our operation arc a considerable investment not to own. We believe purchasing the Salem Commerce Park property is the best location for Falmer. We will own more of our investment and the per foot costs are competitive preconstruction, if not favorable. The new built out facility will afford us the following advantages: Upgraded facility with Best Available Technologies for Dust Collection Professional Location to Showcase our Business to Customers 7500 square foot expanded facility affords us room to grow More access to larger projects with I" floor location and overhead door Ability to become ISO approved more easily in a new facility. The purchase of the 96 Swampscott Road #10 condominium is the best fit for The Falmer Associates, Inc. as it looks to expand its position in the marketplace. I, Stacy . Ames, as a representative of The Falmer Associates, Inc., hereby certify this stat e e true and accurate. 2'C t' Z/Z' 0 1 Stacy M mes Date THE FALMER ASSOCIATES, INC. TIF Plan TAX INCREMENT FINANCING PLAN 1. LOCATION A. Economic Opportunity Area (EOA): Salem EOA B. Municipality: City of Salem C. TIF Zone: i. Map Attachment A—General Location Map Attachment B—Land Use and Zoning Map Attachment C —Parcel Map (property lines, building footprint and all thoroughfares, public right of ways and easements) it. Description (common and legal) Common Description The proposed TIF Zone is located at 96 Swampscott Road, Unit 10 in the Salem Economic Area (EOA). Legal Description That property situated in Salem in the County of Essex and Commonwealth of Massachusetts described as follows: 96 Swampscott Road, Salem, Massachusetts, Unit 10, described in the UNIT DEED dated August 1, 2006 and filed on August 4, 2006 with the Essex South Registry District of the Land Court as Document Number 470288. 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. iii. Narrative description of TIF Zone, Needs, Problems, and Opportunities The TIF Zone is a 7,500 square foot unit within a 170,000 square foot building that was recently converted to commercial condominiums primarily geared toward smaller industrial and commercial users. Prior to the conversion, the 1 THE FALMER ASSOCIATES, INC. TIF Plan building was vacant and deteriorating for over two years. It was difficult to find such a large commercial user for the space. 'I he City worked with different state agencies to try to attract a company to the space without success. The conversion represented an innovative solution to redeveloping the building. The new condominium owners purchased essentially a large space with walls and were required to invest their own funds in the build-out of their individual space. The Falmer Associates, Inc. plan to invest $1,053,823 in the purchase and development of the unit. In addition, they will be investing in new equipment and systems,which will bring their total investment in the project to over $1.5 million. The conversion of the building and the investment the new condominium owners, including The Falmer Associates, Inc., creates an opportunity for investment into this industrial corridor of the City and generates more tax dollars, as well as,increased jobs. iv. Property Owners within the proposed zone Stacy Ames Swampscott Road Associates, LLC (RE Holding Company), 96 Swampscott Rd., Unit 10, Salem, MA II. TIME—DURATION OF TIF PLAN AND ZONE DESIGNATION 5 years III.TIF ZONE & ECONOMIC DEVELOPMENT A. Discuss how TIF Zone is poised to create new economic development opportunities The designation of this property as a TIF Zone will create a number of new economic development opportunities. The Falmer Associates is investing in a building that has been vacant and deteriorating for over two years. The conversion of the property and interest by companies, like The Falmer Associates, led to the redevelopment of this building and will most likely open up opportunities for future development around the site. The City believes that this project will attract interest in Salem, particularly in the Swampscott Road area, as a competitive location for business. If approved, this TIF Plan will demonstrate that the City can and will offer economic development tools to attract business. Success here will invite interest of firms located outside of the City, with an emphasis on smaller commercial and industrial businesses, such as The Falmer Associates. B. Discuss how TIF Zone will result in a net economic benefit to the local municipality Approving the proposed TIF zone will result in the following net economic benefit to the City of Salem: 2 THE FALMER ASSOCIATES, INC. TIF Plan • Generation of$14,533 in ultimate annual tax revenue. An increase of 119% over the current base value. • Relocation of 4 existing permanent full-time jobs to Salem. • Creation of at least 7 permanent full-time jobs in Salem. • Job training for entry-level employees. • Assistance in revitalizing part of a formally abandoned, deteriorating structure. • Assistance to a 45 year old, family-run company that will contribute to the revitalization of Salem's industrial sector as a solid participant in the industrial and high-tech community. C. Analysis of proposed and potential land uses The project includes the purchase and build-out of approximately 7,500 square feet of space in a 170,000 commercial condominium building. The Falmer Associates is moving all of their operations to the space. D. Zoning in TIF Zone Business Park Development (BPD) E. Identify any parcels, public or private,in zone which are confirmed hazardous waste disposal sites, in accordance with Chapter 21 E, MGL N/A F. Analysis of how the land uses are appropriated for anticipated economic development The redevelopment and reuse of 96 Swampscott Road presented a challenge due to the size of the building. It was tough to recruit a company to locate to such a large building with limited highway access. The developer who eventually purchased the abandoned building in early 2006 realized the need for commercial and industrial space for companies looking for under 35,000 square feet of space. They divided the space up based on need and created commercial condominiums. The overall project has been very successful. The Falmer Associates is a perfect fit both for the land use and as a part of continued economic development and growth in the city. G. Discuss proximity- of TIF Zone to mass transit and to major rail, highway, or other modes of transportation for shipping and delivery The TIF Zone is located approximately a half mile from Route 107/1- ighland Avenue, a four-lane thoroughfare that connects Salem to Boston. Boston's Logan 3 THE FALMER ASSOCIATES, INC. TIF Plan Airport is only 13 miles south of the site and can be reached via Route 107. The site is approximately 4 miles from Route I-95 and 6 miles to Route 1. Public transportation is also available along Route 107/Highland Ave by the Massachusetts Bay Transportation Authority (MBTA) buses. The MBTA buses provide service daily between the Salem Commuter Rail Station and Haymarket in downtown Boston. The site is located approximately 3.3 miles from the Salem MBTA Commuter Rail Station,which provides service into Boston's North Station in 30 minutes. H. Identify principal commercial and industrial tenants within the TIF Zone The Falmer Associates, Inc. d/b/a Falmer Thermal Spray will occupy the entire unit. IV.TIF ZONE PROJECTS A. Private Projects 1. Proposed Swampscott Road Associates LLC purchased and is renovating approximately 7,500 square feet of space in a 170,000 square foot commercial condominium building (former Atlantic Extrusions). The Falmer Associates, Inc. d/b/a Falmer Thermal Spray will be relocating their operations from Lynn. This move will allow the company to increase their plant size by 3,000 square feet. They will more than double their coating production capacity and compressed air, increase machining and abrasive blasting,using upgraded technology and a leading consulting engineering firm. 2. Planned See above 3. Provide documentary evidence of the level of the developer's commitment to construction proposed & required in the TIF project. The company has purchased the unit (unit deed Attachment D) and secured funding commitments (see Attachments E) to construct the project (project budget Attachment 1�; and construction plans have been completed (see Attachments G). 4. Budget for proposed project expenditures with supporting data. See Attachment F. 4 THE FALMER ASSOCIATES, INC. TIF Plan 5. Architectural, plans, specs, engineering reports. See Attachment G. 6. Letters of commitment from local lending institutions See Attachment D. 7. Participation in other federal, state and local Economic development programs and initiatives The business participates in SOWMBA with the state and have been certified as a WBE since 1988. 8. Relevant business plans a. Time schedules for development Property purchased:August 2006 Build-out:May June 2007 (estimated 10-weep schedule) Anticipated move-in:June 15, 2007 b. Returns on investment Sales grew 20% in 2006 and it is anticipated that sales will increase by 30-50% in 2007. The same pace of growth is expected in the new facility. c. Expected Increases in Job Creation The expected job growth is 7 full-time permanent jobs in five years. d. Estimated tax revenues based upon increased valuation of the parcel The base value of the condominium is $456,400,which is an apportioned value of the entire building at 96 Swampscott Road. The base tax bill is $6,636. The total value of the property after the renovation is projected to be $633,580, which is based on 95% of the purchase price plus 50% of the cost of real estate improvements. The increment in value is $327,219. At the end of the TIF Plan the project will generate $14,533 in annual tax revenue. This represents an increase of 119% in tax revenue over the current base value. 5 THE FALMER ASSOCIATES, INC. TIF Plan B. Public Projects 1. Proposed—N/A 2. Planned—N/A 3. Budget for proposed project expenditures supporting data—N/A V. FINANCING FOR TIF ZONE PROJECTS A. Anticipated Financing for Private Projects 1. Sources and Amounts for Proposed Projects The company has self-financed all the costs of acquiring and renovating the property. See attached funding commitments (Attachment D). 2. Sources and Amounts for Planned projects See above B. Anticipated Financing for Public Projects N/A C. Detailed projection of costs of public construction N/A D. Will betterment be used to finance any public-private projects, now or within the proposed life of the TIF plan? No betterment will be used. E. If betterment or Special Assessments are part of the TIF Plan N/A F. Describe how private projects will be financed 1. Evidence of private financing commitments See Attachment D (funding commitment letter) 2. Material assumption and requirements See Attachment D (funding commitment letter) and Attachment F (budget for proposed project) 6 THE FALMER ASSOCIATES, INC. TIF Plan VI.TAX INCREMENT FINANCING A. Authorization to use TIF The attached City Council Resolution dated March 9, 1995 authorizes the City of Salem to use TIF in the Salem EOA (Attachment H). The City Council will vote on the Resolution authorizing the use of the TIF Plan for The Falmer Associates, Inc. on March 22, 2007 and the resolution will be forwarded when executed. B. Amount of proposed tax increment exemptions from property taxes, and applicable criteria The attached spreadsheet (Attachment I) shows that the City estimates the tax benefit to total approximately $15,083 over five years. C. Maximum percentage of public project costs that can be recovered through betterment or special assessments in lieu of the incremental real estate taxes N/A D. TIF Exemption from property taxes 1. Term of exemption: 5 years 2. Calculation The base value of the condominium is $456,400,which is an apportioned value of the entire building at 96 Swampscott Road. The base tax bill is $6,636. The total value of the property after the renovation is projected to be $633,580,which is based on 95% of the purchase price plus 50% of the estimated cost of real estate improvements. The increment in value is $327,219. The exemption plan works as follows: YEAR COMPANY PAYS 1 20% of increment, plus base tax 2 40% of increment, plus- base tax 3 60% of increment, plus base tax 4 80% of increment, plus base tax 5 90% of increment, plus base tax 6 Taxed at full value E. Effective date of tax increment exemption July 1, 2007 (Fiscal Year 2008) 7 THE FALMER ASSOCIATES, INC. TIF Plan F. Betterment of special assessments N/A VII. APPROVAL OF TAY INCREMENT FINANCING PROJECTS A. Approval Process The City Council was presented with the TIF Plans and corresponding resolutions on February 22, 2007. The Council referred the matter to a Committee that is meeting on Match 19, 2007 to discuss the project. The Council is anticipated to approve the two resolutions accepting the Certified Project Application for the project and allowing the Mayor to enter into a TIF Agreement with the company at their meeting on March 22, 2007. The project will then require approval by the EACC,which is slated to meet to discuss the project on March 29, 2007. B. Person or Board authorized to execute TIF Agreements The Mayor executes the TIF Agreement,upon approval from the City Council. C. Evidence of local approvals of TIF zone Pending City Council approval on March 22, 2007. See Attachment J. D. Evidence of local approvals of TIF plan Pending City Council approval on March 22, 2007. See Attachment K. E. Executed TIF agreements (any and all) Pending City Council approval on March 22, 2007. See Attachment L. F. EACC approval of TIF plan Pending EACC approval on March 29, 2007. 8 ATTACHMENT A General Location Map BEVERLY AND SALEM ECONOMIC TARGET AREA �Q .�Ua wa ,r�ar o ° D 1. rvwrtxurovha � d 0.Nmom mrsnm � Ilxrtnx4ovp 1.411f1161FR o.ar� BWEALY wm.c .rxrmen rc..00r 0 w - CITY OF SALEM Ilk J'- yr ° u'� sw.ncsc M or e varus Khnbaday piacail p o t 2 a lviicum i 4 bs wwm r4ororm � - Map created by Salem GIS and Applied Geographic,February 2007 A. FOR PLANNING PURPOSES ONLY DATASOURCES: aaLa. Rae&Pom Gry&Be T B°ua&ur am rtromwa is r O Ewnontla R10Are9 msu[ Q Iis r County Tw u[ �O LOCATION MAP OF FALMER THERMAL SPRAY BEVERLY 96 SWAMPSCOTT ROAD DANVERs UNIT #10 SALEM, MA 7ti C 7A r 774 lSi PEABODY * C� 4i cr'' i SALEM p 71dQ + CITY OF SALEM 3L wmmrl,ney orn.aal o no 1,500 31000 LYNN Y/ 4, (1 " Y�MARBLEHEAD Map treated by SalennGlS and L��\} Applied!Geographic,February 2007 FOR PLANNING PURPOSES ONLY OATASWRLEa: 7=Rom Ory a59an SWAMPSCOTT BwM ne eM A er RomM sG15 +- Q no smmpeanRa opam.�m�m i D aR aReam �MBTACvnmJerRil ' ATTACHMENT B Land Use and Zoning Map INCREMENT FINANCING ZONE Business Residential : Highway ZONING MAP FALMER THERMAL SPRAY 96 SWAMPSCOTT ROAD ` . UNIT #10 Business SALEM, MA q s,� Highwayw _ .,Y ,P.it -:cry ��5• yK l+ C-- *.- 'b'4,�y i r �� � i" yiri' 3 3t A Residential Multi- Family Business ResidentialPark Multi- Development J Family, �q Id E Residential 91�A One Family CITY OF SALEM Mayor _� cc ESS � YGmbedey Metall - U 85 IN aau FT Map created by SalemGIS and Applied Geograpbia,February 2002 FOR R NTNG MRMMS ONLY DATA SWRCEb: �' R.&ft.Myny Salem T.Bmntlafl..W yekrM1 rnlvl s S Zoning Desi9 ab t fF ya 9.rmiR�lRa Pam QRN . F.rny QRrstlenWMUYF L (� SWtliryIOWYne ODw�H o wmM u� 0 ibmmai _ 8�,,, ;B�mRMxpeewm�a ,A Industrial << ATTACHMENT C Parcel Map (property lines, building footprint and all thoroughfares, public right of ways and easements) TAX INCREMENT FINANCING ZONE FALMER THERMAL SPRAY 96 SWAMPSCOTT ROAD UNIT #10 4Ca 3 t �,� SALEM, MA N ° K ^s'' �°"'�i ry , Tae .��r^F� `Y^'. ,'°�^$`' ��w`��^ r �' ��,. , Y,. 'RJI�•� ox>! h, �� � . , � ' Y IF 5r Nr �� � R,j y, �^°elka."r ,f by l{I J '� ��� CT � ♦ G� KII OP 16 CITU OF SALEM 1 e. lip Ll •"� T gmberNleYweeWlId i .»♦ n ; `� v /. .`^ V^C $S Yi" *.F ay,S Y +j♦ � 5 _ +t• a .�T' � .. ry"+�4 1 Mao aeoted hl S,Fab.Santl MOIIeG Geographic,February 2007 �, h •4. � t e" .! �` Y`14' �, FOR PIANN[NG PURPOSES ONLY .�y k� ,, " , ji . ",; _Wk 4x ' `.,,• . '!�'y ,� Tm trwn db°rsaem .I e " f `♦.1']��A •+it... r�enc NtmrrromN�s 1 F, ,� t^'�•iRAo q'V���' F 'h 9.Vanpu°RO Part<I 1 1p � I ° Ki . '• J,�' � � - - � 't U. .�.t,�k`t', ATTACHMENT D Unit Deed 'ON 1N_1Vut i.w- 470288 SALEM COMMERCE PARK CONDOMINIUM UNIT DEED GRANTOR: 96 Swampscott Road, LLC, a Massachusetts limited liability company, having an address at 5 Corn Point Road, Marblehead, MA 01945 GRANTEE: Swampscott Road Associates LLC, a Massachusetts limited liability company with a principal place of business at 168 Broad Street, Lynn, MA 01901 UNIT: 10 j W PERCENTAGE INTEREST: 4.5% J N AgD . s AREA. 7,531 sq. ft. PARKING SPACES: 36, 37, 38,39, 40, 41, 42 p W o U E _ UNIT POST OFFICE ADDRESS: 96 Swampscott Iroad, Salem, Massachusetts 01970 b 0 CONSIDERATION: $456,400.00 a 0 U a GRANTOR, owner of the UNIT described above 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 with said Registry District as Document Number in accordance with the provisions of G.L. c. 183A, grants the UNIT to GRANTEE with QUITCLAIM COVENANTS for the CONSIDERATION stated above. The UNIT contains the AREA listed above and is laid out as shown on a plan filed herewith, which is a copy of a portion of 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. The UNIT is conveyed together with the above-listed PERCENTAGE INTEREST (a) in the common areas and facilities of the Condominium, as described in the Master Deed, and (b) in SALEM COMMERCE PARK CONDOMINIUM TRUST, under Declaration of Trust dated April 24, 2006, and filed with the Essex South Registry District of the Land Court as Document Number 466708 and noted on Certificate of Title Number C-205000. • p(At�! PPRQVEDPQ€tREQ119hi ° BY T" // J IIIIIIIII11111111111111111111111 ` .. 470ZB8 (C206000+) etoh:z0a077' SoRapistry uthern Eswx Dl str iot E_ e/a/p008 10:57 qM UDEEL) r The UNIT is to be used in accordance with the Master Deed only for commercial purposes to the extent permitted from time to time under the Zoning Ordinance of the City of Salem(the "Zoning Law"), including all special permits and variances granted thereunder, and for no other purpose. No Unit shall be used for the storage of hazardous materials of any kind except in accordance with all applicable laws and regulations. The UNIT is conveyed together with the right and easement to the exclusive use of the PARKING SPACES stated above and shown on the Site Plan recorded with the Master Deed, for the purpose of parking legally registered cars and trucks in regular use by Unit Owners, their employees, customers, visitors, guests and invitees during the existence of the Condominium. Such parking rights may be transferred,but only among the Unit Owners or to the Condominium Trust, by instrument duly filed in the Registry District, and shall end upon the permanent withdrawal of the premises from condominium status. Such parking rights shall be subject to the provisions and limitations set forth in section 5.1 of the Master Deed. Any transfer of a parking space to other than the Condominium Trustees or a Unit Owner, or lease of a parking space to other than the Condominium Trustees or a Unit Owner,in each case shall be void. The GRANTEE acquires the UNIT with the benefit of, and subject to, the provisions of G.L. C. 183A, relating to condominiums, as that statute is written as of the date hereof and as it may hereafter be amended, the Master Deed and Condominium Trust referred to above and any by- laws and rules and regulations from time to time adopted thereunder, and all matters of record stated or referred to in the Master Deed as completely as if each were fully set forth herein; and subject to real estate taxes attributable to the UNIT which arc not yet due and payable. EXECUTED UNDER SEAL this 151 day of 1449 2006. 96 SWAMPSCOTT ROAD,LLC sy: J. 'I ockett,Jr.,Manager By: i7eh M. Thibert,Nklmager 470288 (page 2 of 61 Southern S,sex 01strictReg1atry 814/2008 10:67 RM UDEED I THE COMMONWEALTH OF MASSACHUSETTS ss. On this Isda of �+ 2006, before me, the undersigned notary public, personally appeared T_ ,,, -:-.,'.Ti r Managenas aforesaid, proved to me through satisfactory evidence of identification, which was ❑ photographic identification with signature issued by a federal or state governmental agency,❑oath or affirmation of a credible witness, E-� personal knowledge of the undersigned, to be the person whose name is signed on the preceding or attached document, and acknowledged to me that he signed it voluntarily for its stated purpose as Manager of 96 Swampscott Road,LLC,a Massach kimited liability company. d( F s otary My commission expires: Jae i 4 470296 (Papa 3 0! 5) Southern Eaaax Diatriot Rafiiatr, 6/4/2006 10:57 RM UDEED rd Ulfr#4 LIN fr#6 MIT#6 Ulfr#3 UNrr n LNIT#8 LIN If#7 UNR MT UJIr#1 i10 BUILDING KEY PLAN UNIT #5 LEGEND AND NOTES DA RCy/l ® DEPICTS COMMON AREA NM YG e�` DEPICTS UNIT BOUNDARY 3,�No. 3386 w MARBLEHEAD. t 44DEPICTS MAIN ENTRANCE 3 MASS. SQUARE FOOTAGES SHOWN ARE APPROXIMATE, fq�t Sg! ROUNDED TO THE NEAREST WHOLE. �N DF MP UNIT #9 UNIT #10 UNIT #I 7,531 GSF UNIT#10, PLAN CERnFICATION I HEREBY CERTIFY THAT THIS FLAN WAS PREPARED N CONFORMITY (16'-6",TOP OF STEEL) g WITH THE RULES AND REGULATIONS OF THE REGISTRY OF DEEDS OF ' THE COMMONWEALTH OF MASSACHUSETTS I HEREBY CERTIFY THAT THIS PLAN SHOWS THE UNIT DESIGNATION OF THE UNIT BEING CONVEYED AND OF IMMEDIATE ADJONNG UMTS,AND THAT IT FULLY AND ACCURATELY DEPICTS THE LAYOUT OF THE UNIT,ITS LOCATON, DIMENSIONS,APPROXIMATE AREA,MAIN ENTRANCE AND IMMEDIATE COMMON 753' AREA TO vJ4I(Xj ACCESS,AS BUILT. 07.3!•6ra P C 0 a;'m 76-0To William A.4j, Registered Architect Date: J a :v UNIT PLAN FOR UNIT #10 3^P o SALEM COMMERCE PARK CONDOMINIUM m 12 16 96 SWAMPSCOTT ROAD,SALF-K MA 01970 0 e 0 0 10 20 40 ( 1--I DATE: July 31,2006 Page 1 of 1 3 �J � I^ H J ) CO U) p Y+ C9 —J cn f O o Z CO r w v ii w U C UA V UA O W 470268 (Paps 5 of 5) Southern Essex District Registry {\� 8!4!2006 10:57 AM UDEED ATTACHMENT E Funding Commitments f 0 Eastern Bank, March 12, 2007 Ms. Stacey Ames The Falmer Associates, Inc. 168 Broad Street Lynn, Massachusetts Re: 96 Swampscott Road, Salem, Ma Dear Stacey: Pursuant to the application of the The Falmer Associates, Inc.or approved nominee(hereinafter, the "Borrower"),Eastern Bank(hereinafter, the "Bank") agrees to establish a loan in favor of the Borrower or Borrower's nominee in an amount of up to Seven Hundred and Fifty Thousand Dollars ($750,000.00) to assist in the financing of real estate located at 96 Swampscott Road, Salem,Ma. Final approval is subject to the receipt an acceptable review of the latest fiscal year end financial statements for The Falmer Associates Inc. The terms and conditions are as follows: 1. SECURITY A. The Bank is to have the first mortgage in the Borrower's fee simple interest in and to the land and the dwelling and improvements thereon located at 96 Swampscott Road in Salem, MA (hereinafter, the "Mortgaged Premises"). B. The Borrower shall collaterally assign to the Bank all leases, tenancies, occupancies,rents and rent subsidy contracts relative to the Mortgaged Premises. By execution of this Commitment Letter, the Borrower, and if appropriate, each Guarantor, hereby authorizes and grants to the Bank a limited power of attorney to, at its option (i) execute on its behalf Uniform Commercial Code Financing Statements evidencing the Bank's security interest in the assets of the Borrower/Guarantor to be provided in conjunction with the establishment of the Loan, and (ii) pre-file (prior to Loan closing) such Financing Statements with the appropriate filing venues so as to perfect a security interest in and to the Borrower's/Guarantor's assets. This Commitment is conditioned upon the receipt and satisfactory review by the Bank and its counsel of the organizational documentation (i.e. Declaration of Trust, Partnership Agreement, Certificate of Limited Liability Company Formation, Articles of Incorporation/Organization,'or the like) of the Borrower, and, as appropriate, the Guarantors of the Loan, certified by the appropriate filing agency, if registered, or by the appropriate office (i.e. Trustee, General Partner) if not registered. i,� 2. GUARANTEE The payment and performance of the obligations under the loan shall be guaranteed by Stacey M. Ames and Daniel Maxwell Meyers. The personal guaranty of Mr. Meyers is subject to negotiation and must be acceptable to both parties. This loan will also carry the corporate guaranty of The Falmer Associates, Inc. 3. MATURITY DATE OF LOAN Ten years (10 yrs.) from the date of loan closing. 4. INTEREST RATE Option 1.The 5 YR FHLB Rate+175 basis points. Based on today's rate that rate would be 6.80% (5.05% +1.75%=6.85%). The rate will be fixed within 7 days of the closing based on the FHLB (Federal Home Loan Bank)Rate for amortizing advances plus 1.75%. At the five year anniversary, the loan will be repriced at the then applicable 5YR FHLB + 175 basis points for the remaining 5 years. If the loan were to close today, your monthly payment of principal and interest would be approx $5,725.00, fixed for 5 years. Option2. The 10 YR FHLB Rate+200 basis points. Based on today's rate that rate would be 7.21% (5.21% +2.00%=7.21%). The rate will be fixed within 7 days of the closing based on the FHLB (Federal Home Loan Bank)Rate for amortizing advances plus 2.00%. If the loan was to close today,your monthly payment of principal and interest would be approx. $5,910.00,fixed for 10 years. 5. REPAYMENT Monthly principal and interest payments commence one month after loan closing. The payments will be based on an amortization schedule not to exceed 20 years. At the expiration of the term of the note, the Bank will review the Banking relationship in the context of the Borrower's credit history,deposit relationship,and its loan portfolio and pricing. The Bank will then determine in its sole discretion whether the note will be renewed for an additional period of time and the terms and conditions of such renewal. 6. COMMITMENT EXPIRATION Fifteen (15)days from the date hereof. 7. TITLE AND DOCUMENTS All documents, agreements, or other instruments used in conjunction with this transaction shall have the approval of the Bank and Bank's counsel. The Bank is to be furnished with a title insurance policy and title certificate on the Mortgaged Premises in the amount of the Loan containing no exceptions (other than those approved by the Bank and Counsel to the Bank). Such title insurance policy shall be in a company or companies acceptable to the Bank and Bank's counsel. 8. EVIDENCE OF HAZARDOUS MATERIALS At the option of the Bank, the Bank shall be provided with proper evidence (including, without limitation, engineering studies conducted at Borrower's expense)from a source and in form and substance satisfactory to the Bank and Bank's counsel indicating that the Mortgaged Premises do not contain hazardous materials as defined in the Massachusetts Oil and Hazardous Material Release Prevention and Response Act, Massachusetts General Laws, Chapter 21E or in any other applicable law. Borrowers covenant to strictly comply with the requirements of M.G.L. Chapter 21E and any other applicable law and to promptly notify the lender of any releases of oil or hazardous material upon the mortgaged property. The Borrowers agree to indemnify the Bank against all loss, liability, damage and expense, including attorney's fees, suffered or incurred by the Bank under or on account of M.G.L. Chapter 21E or any other applicable law (including the assertion of the super lien). The bank will review the environmental report to determine if it is acceptable under the Bank's environmental policy. The fee for environmental review is 80.00 10. FLOOD INSURANCE Flood insurance is required if the Mortgaged Premises are within a specified flood hazard area as designated by the Director of the Federal Emergency Management Agency. Eastern Bank will obtain a Flood Certification on the mortgaged premises. The fee for this service will be $25.00, per property, and should be included upon acceptance and return of this commitment. The check should be made payable to Eastern Bank and be separate from any other fee. 11. INSURANCE The loan documents shall provide for fire,casualty and other insurance coverage as the Bank may require from time to time in amounts and in companies acceptable to the Bank. The policies shall contain the proper mortgagee clause,Eastern Bank, its successors and assigns ATIMA, and shall be deposited with the Bank throughout the life of the Loan. The property insurance shall be for 100 percent of its full replacement value which in no event shall be less than the amount of the Loan, meeting all co-insurance requirements. All policies shall contain a provision requiring at least 20 days advance notice to the Bank before any policy cancellation or modification. 12. PREPAYMENT PENALTY Pre payment subject to yield maintenance formula. Under this fixed rate option, a "yield maintenance fee" would apply if the loan was prepaid for any reason prior to the end of the fixed rate period. The yield maintenance fee would be calculated at the time of prepayment and would be based on the amount prepaid, the time remaining until the end of the fixed rate period, and prevailing interest rates at the time of prepayment. Depending on prevailing interest rates at the time of a prepayment, there may or may not be a yield maintenance fee required. Partial pre-payments prior to maturity will be discussed prior to closing. 13. PLOT PLAN The Borrower is to furnish the Bank and Bank's counsel at least fifteen(15) days prior to the closing with a plot plan showing lot lines and the location of all improvements and shall indicate all easements, utilities, and rights of way on the mortgaged premises. Such plot plan shall contain a certification as to whether the mortgaged premises are located within a flood hazard zone and shall be in form satisfactory to the Bank and to Bank's counsel. 14. ZONING,LAND USE,AND OTHER MATTERS Zoning, land use, environmental laws, title, subdivision, building, and sign permits must be complied with, to the satisfaction of the Bank and the Bank's counsel. The Bank shall be provided with proper evidence from a source acceptable to Bank's counsel that the mortgaged premises complies in all material respects with all applicable building, zoning and land use, environmental protection, sanitary, and safety laws, rules, and regulations of the City of Salem,the Commonwealth of Massachusetts and the United States of America. 15. APPRAISAL Eastern Bank will request and review an appraisal from a Bank approved appraiser reflecting a maximum eighty percent(80%) loan to value on the"as complete" value of the real estate at 96 Swampscott Road in Salem Ma. The Borrower will also pay an appraisal review fee of$105.00 per report. 16. TAXES Prior to disbursement of the loan proceeds, any outstanding unpaid taxes and assessments are to be paid. 17. TAX ESCROW - The Borrower shall pay the Bank a one time fee of $75.00 for a subscription to the service required to monitor the payment for real estate taxes. This fee will be collected before the closing. Prior to disbursement of the loan proceeds, any outstanding unpaid taxes and assessments are to be paid. 18. LATE CHARGE The Borrower shall pay a late charge equal to five percent(5%) of any installment not received by the Bank within ten(10) days of the due date thereof. 19. DEPOSIT ACCOUNTS The Borrower agrees to maintain the operating deposit accounts for the Mortgaged Premises with the Bank for the life of the loan. 20. ALIENATION CLAUSE In the event that the property herein described is sold, transferred, or conveyed to any other entity, individual, or individuals, or otherwise voluntarily encumbered in whole or in part, or if there is a change in the trustees or beneficial interest of the nominee realty trust, without the express written consent of Eastern Bank, the entire unpaid balance shall immediately become due and payable at the option of the Bank. 21. GENERAL CONDITIONS/FUTURE INFORMATION The foregoing terms and conditions are predicated upon our present understanding of the proposed financing; and, after a more comprehensive appreciation of the necessary mechanics and other details involved, some further assurance in the nature of security may be required. In addition to those terms and conditions, which are stated above, the Bank's obligations hereunder are conditioned upon the Borrower's execution of such representations, covenants, and warranties as may be required by the Bank. Such obligations are also conditioned upon no material adverse change taking place between the date of this letter and the closing concerning the Borrower's financial condition. This provision shall lapse upon the execution of the requisite loan documentation. 22. FINANCIAL AND OPERATING STATEMENTS Within 90 days of the close of the fiscal or calendar year of the borrower, the Borrower is required to provide copies of documentation showing all specific income and expenses for the property. This information may be detailed in the consolidated financial statement of The Falmer Associates, Inc and/or the corporate tax returns of the Approved Nominee. The personal financial statements of Stacy M. Ames and Daniel Maxwell Meyers shall also be provided to the Bank annually. 23. FINANCIAL COVENANTS The consolidated financial statements should reflect adherence to the following: 1)Minimum combined Debt Service Coverage of 1.20X 24. CONVEYANCING ATTORNEY James Rudolph, Esq. Rudolph Friedmann LLP 92 State St.,Boston, Ma. 02109 (617)723-7700 fax(617)227-0313 25. COSTS Whether or not the transaction herein contemplated is completed, the Borrower will pay all costs incidental to the transaction, including specifically all costs of title insurance, recording fees, survey costs, appraisal costs, and fees of our counsel. 26. OPINION OF COUNSEL There shall be furnished to Bank an opinion of counsel to the Borrower dealing with such matters as the Bank or Bank's counsel may request relating to the Borrower, the Loan Documents, and the various terms and conditions provided herein. Such opinion shall be in form and substance satisfactory to Bank and Bank's counsel. 27. COMMITMENT TO SURVIVE LOAN CLOSING The parties hereto agree that this commitment shall survive the Loan closing and that each and every one of the obligations and undertakings of the Borrower and the Guarantor set forth in this commitment shall be continuing obligations and undertakings and shall not cease and determine until the entire Loan, together with all interest and fees due hereon and all other amounts which may accrue pursuant to this commitment and/or the Loan Documents executed pursuant thereto, shall have been paid in full, and until the obligations and undertakings of the borrower and the Guarantor shall have been fully completed and discharged. 28. CONDITIONS PRECEDENT Unless otherwise indicated, the conditions provided for herein are conditions precedent to the Bank's obligation to enter into the loan transaction and disburse any funds thereunder. In order to facilitate the Bank's review of the material necessary to evidence the compliance with such conditions, the Borrower agrees to deliver any and all material required hereunder to Bank or Bank's counsel at least ten(10)days before the closing. 29. TERMINATION Bank may terminate this commitment by written or telegraphic notice to the Borrower in the event that: (a) Borrower or Guarantor shall fail to comply with any of the terms, provisions or conditions hereof; or(b)any representation, warranty, statement, certificate, schedule or report made herein or delivered to Bank in connection with this commitment is false or misleading in any material respect as of the time made or furnished; or(c)Borrower does not pay any of the fees and expenses provided for herein;or(d)the financial condition or operations of the Borrower or the Guarantor prior to closing shall have changed unfavorably in any material degree from its or his condition or operations as heretofore represented to Bank; or(e) any material adverse action, suit, or proceeding shall be instituted against or threatened against Borrower, the Premises, or the Guarantor; or(f)Borrower or the Guarantor default on any other loan it may have with Bank or any affiliate thereof; or(g)there shall be any material adverse change in the condition of the Premises. 30. ACCEPTANCE This commitment shall be deemed accepted when the enclosed copy of this letter has been signed by you and delivered in hand to us in or within fifteen (15)days from the date hereof, together with review fees of 285.00 . This commitment may not be assigned or otherwise transferred without the written consent of the Bank. We appreciate this opportunity to serve your banking needs and look forward to a mutually satisfactory business relationship. Sincerely, ;0" V Joseph V Leary Senior Vice President Accepted: Date: The Falmer Associates, Inc. BY: Stacy M. Ames, as Officer&Individually BY: Daniel Maxwell Meyers, as Officer& Individually h/cmtl/jvl/falmer07 ATTACHMENT F Project Budget Falmer Thermal Spray Moving Budget Purchase Price of Condominium* 468,000 Groom Construction Build Out of Condo* 565,823 Change Orders 20,000 Atlantic Ventilation Purchase Order(Equipment &Installation)* 169,700 Concord Controls (Consulting, Equipment &Installation)* 96,755 Concord Controls (Additional Consulting, Equip &Installation) 35,000 Bay State Abrasives (Equipment)* 17,000 Bill Yuhas Architect (Services)* 30,000 BLW Engineers (Services)* 11,000 Structures North (Services)* 4,000 Wayne Alarm* 1,000 New England Networks (Tel/Data Equipment &Installation)* 29,000 Rigging & Moving* 35,000 Electrical Hooking up of Equipment 15,000 Office Furniture 10,000 Insurance 1,500 New Air Compressor &Dryer (Air Energy)* 10,000 Legal Services* 3,500 Shelving/Gas Storage/Misc. Equipment 10,000 TOTAL 1,532,278 *These are real quoted costs. Unmarked are estimates. ATTACHMENT U Construction Plans ly. �.0 W°a I 6d`ln111 7 ...e,rcv erc.rcv .u+�n.w n _ wrema itl.()Bli0]9 m1Fm�ca,. 1 2 eau wo6sK Inns aownslm �eaanawoa.e6wcns s6s aooss ll) 8 BUILT-IN DETAILS I� �gnn_ � � V J ®� ® Falmer Thamel Spray �" 6NErninYl., I Q Q •16"� �.�_.... S 3 ey MR.—' o z 0 u EQUIPMENT, FURNISHINGS AND II1\RI� _ 9p STDRAGE PLAN t 1 — ieO EGRESS PIAN AND BUILT-INS SPo `�'1 � w.ava z 1 _ Scala: rs vwwm Data: vaw Om mb : x O O rc......o...,.se— O 5 Job No. EQUIPMENT, FURNISHINGS AND STORAGE PLAN A-1.2 Sheel 3 of L- i i:'u.c•v�""' i ; rWMeae,"1 01141 al,()8�163-)0l9 V wa.xc.wev. � ee��n�n ` _ far IJ91)6-f1-15)6 vaY^cxPceircul rc� lirff� Y •>os z EXTERIOR ELEVATIONn.neoeramsxs `l J _ E.mwomEE.om , yl ��rspw[owclaw u n n .. � n I I s— aaol�h. Falmer TM1ermal5prny is.�,nn olnu uxsr sort rwr[x c« wxx wwu rwcu.vl ca,rowmlmwrwEL �. 191xrn nulowa cw.w i n arovn�Lwrxo owrzxxLt ox Erssms �� _ muruo¢r ruruee wow. I I � / I � oEiE,E rExe.e.on J HEAD DETAIL @NEW STOREFRONT< ,AZ am--4 WWWWSTME— E 11EL— 6STOREFRONT ELEVATION �- I I FOYER - .w.aER 101 u>Iv.� wnmrEoxr °�'BL°O�^ EXTERIOR ELEVATION. w Dual _ SECTION AND ¢m w,.zro OFFICE FOYER4 ACCOUNTING STOREFRONT x �oao°n tOJ 101 102 DETAILS nm E.fPOL'N'r sx.0 3 �\ JAMB DETAIL @ NEW STOREFRONT roil ! E� ,,,.._,-0. Sa ------------ ,w .a wwo _ --_—_—_—__ —__—_ _ ---_--_ _ u a ww o xEw Dale: "eE <-- Drawn e w.rw J.1,N. mu __ 13 /1 WALL SECOON $ SILL DETAIL@NEW STOREFROM �, STOREFRONT PLAN A_2 -S_�o vz-Ia / Shaei d Ot ] 0 15 I eo Larareue sireel �1 d Marbleheatl MA D1945 uce .wxE..wo-x.- ii TBI (761)6317039 13 FRY(781)631 1576 ..ec"mc+�c.exo wayarch@comcast.nec j�r� I i4ii Jill(1,a rl tyIr, 'III, '`I Um�u CANOPY TO DE PRICED BY SWAMP6COTT CLA6S. BY SW MPSCO T GLAS $ LETS VERSABLOKTA S..M= i E6.Y ANT6 AND ALL y oW�la 5 ER - LATEDWORM.BOTH w )ES -ENTIUNCE WE e MCPV ND ae..mss_..11.aex DCWNI LIGHTING C2) EXTERIOR ELEVATION " FKMER LINO TOGBE . 5 APPLIED BV OTHERS A2 11 ENSTING STEEL ORT N EXISTING METAL 901NG B TRIN- STOIFYIAS OREQUIREDFORNEW d a a n - a aL Aa NT INSTALLNEW TREATED s.\ —CANOPY,6� CONT.WOC9 BLOCKING COLOR AN oN LIANCE WALL POICELAIn - .. 1� -. Falmer Thermal Spray LOBO CGA_.ALUMII_FAIWL .. BY HIGH STANDARO,G.O. w MA 01 9T. —Y W WN LIGHTING TO MAT01 BLUE DN FRIG( G # SM—, I D FlKTUNE6 SIDING. ` 96 S NSVATON DELETE VERBA-BLOK REMOVE FASTING STOREFRONT PLANTEflS AXD WORK B / qa (DASHED LINES) SIDES OF ENTRANCETM / HEAD DETAIL @ NEW STOREFRONT scue 1 vz•-ra• CANOP YTODE PRICEDI OPERABLE SASH.OI SWING I-INSUXATWGGIASS HEYOW FOVDATION WALL AS WANMOTT GLASS. BV SAWNING TYPE.WITH SCREENS, I REWIRED FOR INSTALLATION OF XXCWDE]LIGHT AMBES TYPICAL NEW NEW STOREFRONT ENTRANCE STOREFRONT ELEVATION Az SEE SH Err ENFRA AN SCALE:1r.1'v FISTING STEEL FggWH 6EF6H1`GLC S:TI PUN n FISTING METAL SIDING B TRIM- MODFY AS REQUIRED FOR NEW STOURRONT INSTALL NEW TREATED CONT.WOW BLCCI(MG ........ .........._ Nicowumn srnimv /1 ATTACHMENT H City Council Resolution dated March 19, 1995 authorizing the City of Salem to use TIF in Salem EOA RESOLUTION AUTHORIZING THE USE OF TAX INCREMENT FINANCING IN THE SALEM ECONOMIC OPPORTUNITY AREA WHEREAS,.the City of Salem is part of the area designated the Beverly & Salem Regional Economic Target Area and the Salem Economic Opportunity Area; WHEREAS,there is strong support for economic development and the use of Tax Increment Financing as an economic development tool to create jobs and encourage business expansion and relocation to the City of Salem; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Salem that: (l) Tax Increment Financing may be used as a tool to encourage economic development within the Salem Economic Opportunity Area. (2) The Mayor is hereby authorized to execute and implement Tax Increment Financing agreements. Adopted this 9 zt� day of 19 by the Salem City Council at a regular City Council meeting with a quorum present. Neil J. Harrington, Mayor Date ATTEST: Deborah E. Burkinshaw, City Clerk SEAL ATTACHMENT TIF Plan Spreadsheet Estimated Value of EDIP Local Tax Incentives for The Falmer Associates, Inc. rojectpdnnlu�l�P {, Municipal Taz! 1I r EAW � n d3 i Total �ri ia iue Loial Tax -rcrn AssessedValue' K BIll!or TIF/ TAYearly nhui!"PoprgArmuii Bjej Tax BOOFY „Rate P rIncremental Exempti y 1 Total Taxes Paid ' � P A, sedValua Prop Xesl 2008 $21.33 $327,219.00 $6,979.58 0.8 $5,583.67 $0.00 $5,583.67 $6,636.00 $8,031.92 2009 $21.33 $335,399.48 $7,154.07 0.6 $4,292.44 $0.00 $4,292.44 $6,636.00 $9,497.63 2010 $21.33 $343,784.46 $7,332.92 0.4 $2,933.17 $0.00 $2,933.17 $6,636.00 $11,035.75 2011 $21.33 $352,379.07 $7,516.25 0.2 $1,503.25 $0.00 $1,503.25 $6,636.00 $12,649.00 2012 $21.33 $361,188.55 $7,704.15 0.1 $770.42 $0.00 $770.42 $6,636.00 $13,569.74 2013 $21.33 $370,218.26 $7,896.76 0 $0.00 $0.00 $0.00 $6,636.00 $14,532.76 *Assumes annual increase of 2.5%in assessed property values* TOTALS $15,082.94 $0.00 $15,082.94 $39 $69,316.79 Base Value FY06 $ 306,361 Purchase Price $456,400.00 Value After Building Renovation $ 633,580 Cost of Improvements $400,000.00 Increment in Value $ 327,219 Total Investment $856,400.00 *Value determined by taking 95%of purchase price (433,580) plus 50%of cost of RE improvements(200,000) Estimated State and Municipal Tax Benefits ;Estimated ValJotal-EstlrnatedValue,of Local,,�' 6T IW,Ff �i'iIliid�%i 5%E61 , , w�Inc,.e 1 3� stimateValuiof siate!sio S6te A:iTC*:,4 $40,320.00 $0.00 $15,082.94 $55,402.94 ITC is calculated by Multiplying the Certified Project's Private Investment Number by.05(456,400+350,000=806,400) The value of the 10%ABTD, if applicable, should be determined by the Company's Tax Professionals. ATTACHMENTJ City Council Resolution 1 —Authorizing Certified Project Application RESOLUTION 1 AUTHORIZING CERTIFIED PROJECT APPLICATION OF THE FALMER ASSOCIATES,INC. WHEREAS,The Falmer Associates, 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,The Falmer Associates,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 10. 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 10, described in the UNIT DEED dated August 1,2006 and filed on August 4,2006 with the Essex South Registry District of the Land Court as Document Number 470288. The Unit is located in SALEM COMMERCE PARK CONDOMINIUM created by Master Deed dated April 24,2006 and fled 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 Fust 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 The Falmer Associates, Inc. a Tax Increment Financing Agreement; Pending CouncilAppmval WHEREAS,The Falmer Associates, Inc.will invest approximately$856,400 to construct a new manufacturing space and will retain 4 jobs and create 7 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 The Falmer Associates, 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 quomm present Date: Kimberly Driscoll,Mayor ATTEST: Cheryl LaPointe, City Clerk SEAL Pending Council Approval ATTACHMENT K City Council Resolution 2 — Authorizing a Tax Increment Financing Agreement I I RESOLUTION 2 AUTHORIZING A TAX INCREMENT FINANCING AGREEMENT FOR THE FALMER ASSOCIATES, INC. 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 The Falmer Associates, Inc. to the City of Salem and renovation of 96 Swampscott Road, Unit #10, the property owned by Swampscott Road Associates LLC and leased to The Falmer Associates, 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 10, described in the UNIT DEED dated August 1, 2006 and filed on August 4, 2006 with the Essex South Registry District of the Land Court as Document Number 470288. 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 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. Pending Council Approval n 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 day of March, 2007 by the Salem City Council at a regular City Council meeting with a quorum present. Date: Kimberly Driscoll, Mayor ATTEST: Cheryl LaPointe, City Clerk SEAL EXHIBIT A: Tax Increment Financing Agreement EXHIBIT B: Map of Tax Increment Financing Zone Pending CountilApproval EXHIBIT A TAX INCREMENT FINANCING AGREEMENT CITY OF SALEM, MASSACHUSETTS and THE FALMER ASSOCIATES, 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 THE FALMER ASSOCIATES, INC., a Massachusetts corporation,with a principal place of business at 168 Broad Street,Lynn, MA 01901 (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, Unit 10 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 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 10 at 96 Swampscott Road in Salem. "The FACILITY" as used herein means 96 Swampscott Road, Unit #10 containing 7,531 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, Pending CounalApproval 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: The full value of improvements to the FACILITY is hereinafter called"the INCREMENT'. For the fust year, the COMPANY will pay taxes on 20% of the full value of the INCREMENT, plus the base tax bill. In year two, the COMPANY will pay taxes on 40% of the full value of the INCREMENT, plus the base tax bill. In year three, the COMPANY will pay taxes on 60% of the full value of the INCREMENT,plus the base tax bill. In year four, the COMPANY will pay taxes on 80% of the INCREMENT, plus the base tax bill. In year five, the COMPANY will pay taxes on 90% 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 THE FALMER ASSOCIATES, INC. Kimberley Driscoll, Mayor Stacy M. Ames Pending CoumilApproval auiano Bvippo ti P,,.W—S SID., .p,,Al,wW SPeoa munosvi�a AINO SgSOdLnd 9MINN"d tlOJ LODZ kewqoj's,dej6oa9 pajIddV Due Slg..ISS Aq pjlo dial OK W!, DI 0 A w 3-Ivs AID Aim "d 'JI .......... vw ,w3-lvs MilNn OVOID 110OSdWVMS 96 IdS WM13HI U3WIV=l wr 3NOZ !DNIONVNI:l IN3W3 NONI X Me", em4 ATTACHMENT L Tax Increment Financing Agreement TAX INCREMENT FINANCING AGREEMENT CITY OF SALEM, MASSACHUSETTS and THE PALMER ASSOCIATES, 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 THE FALMER ASSOCIATES, INC., a Massachusetts corporation,with a principal place of business at 168 Broad Street, Lynn, MA 01901 (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, Unit 10 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 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 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 10 at 96 Swampscott Road in Salem. "'I he FACILITY" as used herein means 96 Swampscott Road, Unit #10 containing 7,531 square feet to be renovated; that is improvements to the unimproved unit as of the date of this agreement. 2. During the fife of this agreement,if the COMPANY decides to sell the FACILITY or the business or to otherwise transfer control of the FACILI"IY 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) Pending CouneilApproval f years,beginning with fiscal year 2008 Only 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: The full value of improvements to the FACILITY is hereinafter called "the INCREMENT". For the first year, the COMPANY will pay taxes on 20% of the full value of the INCREMENT, plus the base tax bill. In year two, the COMPANY will pay taxes on 40% of the full value of the INCREMENT, plus the base tax bill. In year three, the COMPANY will pay taxes on 60% of the full value of the INCREMENT, plus the base tax bill. In year four, the COMPANY will pay taxes on 80% of the INCREMENT, plus the base tax bill. In year five, the COMPANY will pay taxes on 90% 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 first above written. CITY OF SALEM THE FALMER ASSOCIATES, INC. Kimberley Driscoll, Mayor Stacy M. Ames Pending Council_Approwl Certifies!Project Application —Page 1 The Massachusetts Economic Development Incentive Program CERTIFIED PROJECT APPLICATION APPLICANT INFORMATION 1. Name and address of business(es)submitting this application (please list fiscal year and for each business): Swampscott Road Associates, LLC 96 Swampscott Road, Unit#10 Salem, MA 01970 Fiscal Year End: December 31a The Falmer Associates, Inc 168 Broad Street Lynn, MA Fiscal Year End: December 318 2. Name and address of project(if different from above): N/A 3. Location of ETA: Beverly&Salem ETA 4. Location of EOA: Salem S. Authorization: I/We, (print) . Stacy M. Ames, of Swampscott Road Associates,LLC 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 certifiCa ' (Signature (D e) (Signature) (Date) 2'd b0b006L8L6T6:01 082086STBLT "IUW83H1 8B0dd:W0dJ 6£:ST L002-9T-83d 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. Business Description: History and Description of Thermal Spray The Falmer Associates Inc. was founded in 1961 by Newton I. Meyers, a Brown University and Harvard Business School graduate in Marblehead, MA. His goal was to transfer WWII jet engine and rocket technology to commercial applications. A Rhode Island native, he was very familiar with wear and corrosion problems in the state's jewelry and wire manufacturers during the 1950s and 1960s. From the period of 1961 to 1972, Meyers designed and marketed a line of wear resistant, ceramic coated components and created a local market for his services. Newton Meyers had an inventor's mind. Thermal Spray technology is over 100 years old. It is defined as a group of coating processes in which finely divided metallic or nonmetallic materials are deposited in a molten or semi-molten condition to form a coating. Thermal sprays are found in cars, power plants, on Navy Ships, in electronic components, on bridges, and of course in jet engines. Thermal spray coating use is on the rise across industries. They are efficient, elegant value added solutions. High temperature ceramics on aluminum, metals on plastics, carbides on steels, possibilities are endless. Thermal spray is a niche, growth industry. Meyers moved to Danvers in 1965 and ran the company out of the first floor of his home and garage. His business doubled in size in 1972. Unaware of high cholesterol and complications from a previous heart condition, he died from a massive coronary in November. His widow Rita was left with four children, ages 5 to 11, and a business she knew little about. A business teacher by training, she knew there would be no mid-year openings, so she started to read his files, answer customer and supplier calls and eventually filling orders. Newton had set up a network of coating companies and machine shops supplying his operation. He marketed, assembled and did light honing out his facility. With her business education background, Rita studied the records to hunt down suppliers to create production. She sold, managed staff and created a larger concern over time that supported her family and sent all her children to private colleges. Her son Daniel was a salesman for Falmer during his college years. Her daughters Stacy and Lisa also worked in the company. Rita, Dan and Stacy grew Falmer in the early 1980s, adding semi-conductor and other commercial industry customers. As the business grew, suppliers could not keep up with increased production. In 1984, Rita secured capital from the Beverly Savings Bank and rental space in downtown Lynn. The purchase coating equipment and began operations in November 1984. The business was transformed from a supplier based to a manufacturing based service company. Sales Growth and Expansion Over the years, Falmer has built its customer base to include Raytheon, AW Chesterton, General Cable, US Army, MIT, Bayer, Osram Sylvania, Rea Magnet Wire, Stowe Woodward and Schwarzkopf Technologies. We serve a variety of industries with wear, corrosion, erosion, insulation, conduction and surface reclamation coatings. In terms of expansion, Falmer will increase plant size with this move from 4500 to 7500 square feet. We will more than double our coating production capacity and compressed air, increase machining and Certified Project Application -- Page 3 abrasive blasting, using upgraded best available technology and a consulting engineering firm who has set up coating systems for Pratt &Whitney and Corning Glass Works. We have added a New England sales representative with decades of industry experience and advertising in an effective, local purchasing publication. We have a consultant working with us to identify costs, update systems, make efficiencies where possible and pinpoint our pricing structures. We are looking at the impact of ISO certification on customer development. I have personally met and take advise from Christine Sullivan at the Enterprise Center and Margaret Somer with the SBDC. Falmer has SOWMBA, WBENC(Women's Business Enterprise Council) and SBA HUBZone certifications. Falmer is a service company with stringent customer delivery requirements. Our reputation has been built on the service as well as the coatings we provide. As a certified Woman Owned Business, Falmer has gained access to Raytheon and Homeland Security contracts; we keep them with quality product, good communication skills and keeping our word. Falmer also partners with one of the best high tolerance grinding companies in New England. Together, we supply seals for the Australian Navy and components for finishing machines that make automotive cam shafts for the Big Three. In addition, we process parts as large as pick up trucks with a local iron forge. As a result, Falmer is bigger and more flexible than the sum of its parts. We plan move into our new facility in two stages, set up our new equipment and bring what we need to be functional, and then move what we can from our existing plant. I hope to increase sales in 2007 by 30 to 50% over 2006 levels. (Sales grew 20% in 2006.) 1 plan to grow sales 3-6 fold in the new facility. Currently, we have 4 full time and 1 part time employees. We hope to bring the part time employ up to full within the next few months. I anticipate bringing on one other full time employee by the middle of 2007, and an additional 1-2 full time employees in 2008. 1 conservatively anticipate 10 full time employees in 3 to 5 years. Investment Falmer's investment includes the following: Purchase of 96 Swampscott Road, Unit 10 industrial condominium 470,000 Build out of shell space including new store front, offices with conference room and kitchen, bathrooms, access doors, heating, air conditioning in offices, electrical service and wiring, plumbing service, telephone, data and high speed internet wiring. 400,000 New plasma coating system with recirculating water chiller 34,000 New coating room with state of the art ventilation and make up air systems. 220,000 30 HP Air compressor with desiccant dryer, air piping throughout the facility 12,000 New Machining Lathes. 10,000 Electrical Work for Manufacturing Facility 70,000 Automated Tumble Abrasive Blast Machine 1,500 Walk behind fork truck. 1,500 Office Furnishings 12,000 Telephone and Data Systems 28,000 Equipment installation and rigging expense 92,000 TOTAL ESTIMATED INVESTMENT 1,351,000 Falmer is seeking Certified Project designation for a number of reasons. First, we hope to access some fiscal support for the project. Falmer is a small business; this is a very large project for us. Support from the city and state is vital for our success. Secondly, my family and I have lived our lives on the North Shore and believe in these communities. We believe Falmer Thermal Spray can be part of the diversified economic base Salem needs for a multi- faceted, vibrant economy. Finally, Falmer has always partnered with other companies to accomplish project that we could not individually take on. I believe these relationships make the participants stronger and open up opportunities that we did not envision when we started. I have supported and served on the board of Certified Project Application -- Page 4 Girls Inc. of Lynn, am a member of the local chamber and a 100 member women's networking group. Falmer has a history of civic support. In conclusion, Falmer Thermal Spray has been a profitable business concern in Lynn for 22 years. We are excited about our new more permanent home in Salem. We look forward to expanding and updating our operation and believe we have a bright future. Thank you for your consideration. Certified Project Application -- Page 5 7. Is this business new to Massachusetts? Yes No If no: • Where are the existing Massachusetts facilities? 168 Broad Street Lynn, MA • Will this project require/trigger the closing or consolidation of any Massachusetts facilities? If yes, please explain. Yes, Falmer will upgrade facilities and move to its new Salem location. 8. Is this project an expansion of an existing business? Yes No If yes, check the appropriate box: at existing location at new location in same municipality at new location in different municipality At new 96 Swampscott Road, Salem location 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 (2008) (2009) (2010) (2011) (2012) If Applicable Total Employees at Certified Project Facility in Mass. 4 4 7 2 2 1 1 1 Total Employees in Massachusetts at other sites. 4 4 # of Employees at Certified Project Location who live in the ETA of the Certified Project 1 1 4 2 2 1 1 1 # of Permanent Full- Time Employees 4 4 7 2 1 2 1 1 1 1 # of Permanent Part- Time Employees 1 1 2 1 1 2 2 2 #of Temporary Full- Time Employees 0 0 0 0 0 0 #of Temporary Part- Time Employees 0 0 1 0 1 0 0 0 JOBS BY CLASSIFICATION (List# of Jobs, and Average Wage/Salary. Please feel free to use your company's classification system) # of Management Positions $75K+ 1 1 1 0 0 0 1 0 # of Professional Positions 0 0 0 0 0 0 0 0 # of Technical Positions $30-60K 2 2 2 1 0 1 0 0 # of Skilled Positions $15-$30K 0 2 1 1 0 0 0 # of Unskilled Positions $12-30K (1) 1 2 0 1 1 1 0 0 1 Certified Project Application -- Page 7 10. Certification for Abandoned Buildings -- Does the proposed project involve the renovation and reuse of an abandoned building? Yes 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? 11. We will work with the existing city and regional resources to find local, qualified individuals for employment. We have in the past used other traditional methods such as newspaper/internet advertising, word of mouth, and local colleges as resources. 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 The only reason to undertake this project is to grow the size of the business. The capital expenditure will make it possible for Falmer to higher more employees and expand its position in the marketplace. (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. This project is likely to succeed for three major reasons. 1. As you can see from the budget, there is a very high barrier to entry for arc wire thermal spray coatings because of increased dust generation. We at Falmer are Certified Project Application -- Page 8 making the investment using best available technology to set up a safe, green facility. Our business has been growing in this area as our competition decreases. These coatings are needed by Raytheon, implantation equipment companies, electronic controls manufacturers, and a new homeland security application. We can demand a higher margin due to the decreased competition and the high barrier to entry. 2. Experience. Falmer is a 45 year old corporation with a broad range of steady customers across industries and a staff with decades of experience. Falmer's senior production employee has a tenure of 13 years. We have a great reputation in our industry and have conquered many challenges along the way. 3. We are moving from a second floor location in a dilapidated mill building in downtown Lynn to a larger, modern, state of the art facility. The efficiencies and professional appearance will on their on help grow the business. 12. Affirmative Action -- Does the business have an Affirmative Action/Equal Employment Opportunity Plan or Statement? Yes No If yes, please attach a copy. Affirmative Action policy Falmer Thermal Spray agrees not to discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation or national origin. 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? Falmer has recently moved to Eastern Bank after more than 20 years with TDBankNorth. Falmer has a flexible line of credit, an equipment line and will mortgage a portion of the built out condo. Our banker is: Joseph V. Leary,S.V.P Eastern Bank LF24 605 Broadway,Saugus,MA 01906 Direct Dial-781-581-4221 Fax 581-4225 J.Leary @ Easternbk.com 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 Certified Project Application -- Page 9 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. Economic benefits to the applicant 1. Swampscott Road Associates, LLC will be entitled to Massachusetts 5% Investment Tax Credits 2. The tax relief will add working capital to Falmer as it renovates the space and aggressively grows its sales, and resulting labor force. 3. Swampscott Road Associates will save approximately $15,000 in local property taxes over the next 5 years. It will help defray some of the built out costs it incurs in this endeavor. Economic benefits to the City of Salem 1. Falmer helps the city by revitalizing part of a structure that had been abandoned, deteriorating, and vandalized. 2. Falmer is a 45 year old business with a solid customer base and good growth potential. Falmer will provide good, stable employment to local residents. 3. Falmer has a long history of being a supportive corporate citizen, supporting local non-profits and encouraging its employees to live in and enrich the community. 4. Falmer is a solid high technology company that will help revitalize Salem's industrial sector as a solid participant in the industrial/high tech community. 5. Falmer plans to add 6-10 new jobs in Salem. 6. Long term tax revenues generated from the company and future employees will support the city. Certified Project Application -- Page 10 SPECIAL REQUIREMENTS FOR REAL ESTATE PROJECTS 1. Will the business own or lease/rent the facility? Own Lease/Rent If leasing/renting, please identify the developer/landlord, and state who will be the taxpayer of record for the purpose of paying local real estate taxes. The landlord is Swampscott Road Associates, LLC. The property was purchased by The Falmer Associates, Inc. in the form of its holding company, Swampscott Road Associates, LLC. As a matter of business practice, The Falmer Associates, Inc., leases the building from the LLC. If owning, will the business fully occupy the space? Yes No If no, does the business intend to lease/rent the remaining space? The Falmer Associates, Inc. will occupy the entire 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 tax relief will benefit the construction and growth planning for the Falmer Associates, Inc. SUPPLEMENTAL INFORMATION 1. Name(s) of the business(es) intending to take advantage of the state tax incentives: Business Name: The Falmer Associates, Inc Federal Employer Identification #: 04-2296030 Address: 168 Broad Street Lynn, MA 01901 Phone: 781-593-0088 Fax: 781-598-0280 Contact Person: Stacy M. Ames Type of Organization (check all which applies): Corporation For-ProfitC S-Corp Non-profit Business Trust Partnership General Partnership Limited Partnership Individual Level of Interest: 5% Investment Tax Credit 10% Abandoned Building Tax Deduction (if applicable) Certified Project Application -- Page 11 Local real estate tax incentive beneficiary 2nd Business Name (if applicable): Swampscott Road Associates, LLC Federal Employer Identification #: Address: 168 Broad Street, Lynn, MA 01901 Phone: 781-593-0088 Fax: 781-598-0280 Contact Person: Stacy M Ames Type of Organization (check all which applies): Corporation For-Profit S-Corp Non-profit Business Trust Partnership General Partnership Limited Partnership Individual Level of Interest: 5% Investment Tax Credit 10% Abandoned Building Tax Deduction (if applicable) Local real estate tax incentive beneficiary ***If there are more than two businesses intending to take advantage of 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. Falmer Associates, Inc. Stacy M. Ames 2 Chapel Hill Road Beverly, MA 01915 Daniel M. Meyers 2 Avery Street PH2A Boston, MA 02111 Rita Meyers 5 Lobao Drive Danvers, MA 01923 Lisa Henderson 2112 Roswell Ave Charlotte, NC 28207 Sarah Byrne Ducharme 117 Clifton Avenue Marblehead, MA 01945 Swampscott Road Associates, LLC Stacy M. Ames Daniel M. Meyers Certified Project Application -- Page 12 3. Please provide the name, address, phone number and contact person for any organizations Which may own or control the applicant organization, or who are affiliated with the applicant business organization. 4. Certificate of Good Standing -- Please provide proof of good tax standing in the Commonwealth of Massachusetts via a Certificate of Good Standing, which is a letter issued by the Massachusetts Department of Revenue. To obtain a Certificate of Good Standing, please see Attachment I of this application. 7Z 00 MM OnW ea"WJ tr0k440 c� Jame Jffawa&6�02>tsty Wnalam Mach Galvin Secretary of the Commonwealth February 13,tom TO WHOM 1T MAY CONCERN: I hereby certify that according to the records of this office, THE FALMER ASSOCIATES INC. is a domestic corporation organized on August 3,1968,under the General Laws of the Commonwealth of Massachusetts. I further certify that there are no proceedings presently pending under the Massachusetts General Laws Chapter 156D section 14.21 for said corporation's dissolution;that articles of dissolution have not been filed by said corporation; that,said corporation has filed all annual reports,and paid all fees with respect to such reports,and so far as appears of record said corporation has legal existence and is in good standing with this office. In testimony of which, I have hereunto affixed the Great teal of the Commonwealth G i on the bate first above written. Secretary of the Commonwealth Processed By:NEM 2'd h0U00t,L&6T6:01 082086ST&T -IUWb3H1 b3W-1UJ-W8bd LS:ST L002-9T-83d I scpi Form SS"4 Application for Employer Identification Number OMB No. 1545-0003 (Rev.February 2006) (For use by employers,corporations,partnerships,trusts,estates, churches, EIN government agencies,Indian tribal entities,certain individuals,and others.) Department of the Treasury ► See separate instructions for each line. ►Kee a co for our records. DepartIntemna)Rev of the Service Pa P PY Y 1 Legal name of entity (or individual)for whom the EIN is being requested Swampscott Road Associates LLC C 51 2 Trade name of business(if different from name on line 11 3 Executor,administrator, trustee,-care of name M d tZ 4a Mailing address(room, apt.,suite no.and street, or P,O, box) fie Street address(if different)(Do not enter a P.O.box.) C 168 Broad Street a 4b City, state, and ZIP code 6b City, state,and ZIP code `o Lynn, MA 01901 da 6 County and state where principal business is located T Essex, MA 7a Name of principal officer, general partner,grantor, owner,or trustor 7b SSN,ITIN,or EIN Stacy Ames 033-48-3206 Sa Type of entity(check only one box) ❑ Estate(SSN of decedent) ❑Sole proprietor (SSN) ❑ Plan administrator (SSN) ®Partnership ❑ Trust(SSN of grantor) ❑Corporation (enter form number to be filed) ► ❑ National Guard ❑ State4ocal government ❑ Personal service corporation ❑ Farmers'cooperative ❑ Federal government/military ❑ Church or church-controlled organization ❑ REMIC ❑ Indiantribal governmentslenterprises ❑ Other nonprofit organization (specify) ► Group Exemption Number(GEN)11- 21 ® other (specify) ► LLC to be treated as a partnershi 8b If a corporation, name the stale or foreign country State Foreign country (if applicable) where incorporated MA 9 Reason for applying(check only one box) ❑ Banking purpose (specify purpose) P- Z ® Started new business (specify type) l ❑ Changed type of organization(specify new type) 11- Real Real Estate Rental ❑ Purchased going buslness ❑ Hired employees(Check the box and see line 12.) ❑ Created a trust (specify type) ► ❑Compliance with IRS withholding regulations ❑ Created a pension plan (specify type) ► ❑ Other(specify) 11- 10 10 Date business started or acquired(month, day,year).See instructions. 11 Closing month of accounting year 07/26/2006 December 12 First date wages or annuities were paid (month, day,year). Note. If applicant is a withholding agent,enter date income will first be paid to nonresident alien. (month,day, year)..... .. .... ... .. .. .. .. ... .... ......... .... .'. ► 13 Highest number of employees expected in the next 12 months(enter-0- if none). Agricultural Household Other Do you expect to have $1,000 or less in employment tax liability for the calendar )earn Yes n nth of you rt ss expect to pay$4000 or lein wades you can mark yes.) - 0 0 0 M 14 Check one box that best describes the principal activity of your business. ❑ Health care&social assistance ❑ Wholesale-agent/braker ❑ Construction ❑ Rental&leasing ❑ Transportation&warehousing ❑ Accommodation &food service ❑ Wholesale-0ther ❑ Retail El Real estate ❑ Manufacturing ❑ Finance&insurance ❑ Other(specify) - - 16 Indicate principal line of merchandise said, specific construction work done, products produced, or services provided. 16a Has the applicant ever applied for an employer identification number for this or any other business?.,.. . . .. . . . ❑ Yes ® No Note. If"Yes," please complete lines 16b and 16c. 16b If you checked 'Yes'online 16a,give applicant's legal name and trade name shown on prior application if different from line 1 or 2 above. Legal name ► Trade name ► - 16c Approximate date when,and city and state where, the application was filed. Enter previous'employer identification number if known. Approximate date when filed Into.,day,year) City and state where fled Previous EIN Complete this section only you want to authorize the named individual to receive 1he entity's EIN and answer questions about the completion of this form. Third Designee's name Designee's telephone number(include area code) Party John Sweene 617-790-4830 Designee Address and ZIP code 4 Lawrence Street Designees fax number(include area code) Danvers MA 01923 617-790-4930 Under penall'ies of perjury,I declarethat I havanamined this application,amain the best of my knowledge and belief,it is ime,correct,and complete. Appliant's telephone number(include area mo,,) Name and title(type or print clearly) ► StacV Ames President 781 . 593-0088 _ Applicant's fax number(include area code) signature 0. �(/� Date ►8/4/2006 781 598-0280 For Privacy Act and Pape rk Reduction Act Notice, see separate instructions. - - Form SS-4 (Rev.2-2oo5) ' ISA STF FE01769F.1 Due Diligence Letter The Falmer Associates, Inc/Swampscott Road Associates, LLC The Falmer Associates, Inc. provides thermal spray coating services for manufacturing and commercial corporations throughout the United States. In 1984, we leased space at 168 Broad Street in Lynn, MA and have been operating out of that location for 23 years. A change in property ownership forced us to re-evaluate the viability of continued business at that limited location with increased rent and lack of stability being a tenant at will. The Lynn location is 4,000 sq. ft. on a second floor in an old mill building that was formerly a stable and garage for the Hotel Edison. In order to grow, we needed a larger and more accessible facility. Our first thought was to remain in the City of Lynn, and we unsuccessfully attempted to find adequate space for us to lease or purchase. After spending 4 months looking in Lynn, I spoke to Peter DeVeau, the former head of Communities and Development for the city. He suggested that he knew of no suitable available location for us to relocate. He understood my ties to Lynn, but felt it was time for me to explore other options that would be optimal for my business. In April, we found 5500 square feet of industrial rental space off Foster Street in Peabody that would have been appropriate for our needs. The leasehold improvements required for our operation are a considerable investment not to own. We believe purchasing the Salem Commerce Park property is the best location for Falmer. We will own more of our investment and the per foot costs are competitive preconstruction, if not favorable. The new built out facility will afford us the following advantages: Upgraded facility with Best Available Technologies for Dust Collection Professional Location to Showcase our Business to Customers 7500 square foot expanded facility affords us room to grow More access to larger projects with ls`floor location and overhead door Ability to become ISO approved more easily in a new facility. The purchase of the 96 Swampscott Road 410 condominium is the best fit for The Falmer Associates, Inc. as it looks to expand its position in the marketplace. I, Stacy .. Ames, as a representative of The Falmer Associates, Inc., hereby certify this state e true and accurate. Stacy M 4mes Date x.(781)"-1.111 •.(7W 63vm6 y_..._I' ....... AI ..n2xx•o-x� s. [•v.mx re i 4F"M`2L`:AW ..Evn.nx � 4 4� yueun.sx Desk uxi.s:xooxs im R 4 sun*�nwoxr 6encrvs:see xaaxs iisn aro ins � r BUILT-IN DETAILS — s 3. �emee�e 91 tn _ ® em�rTnmxrvi sn..y � o .q o u� o "a E m _ - p � V fW` s EQUIPMENT, FURNISHINGS AND STORAGE PLAN EGRESS PLAN AND BUILT-INS cO yc cxW[6 p ' I - SCeB' <661gNN Days' ,I EQUIPMENT, FURNISHINGS AND STORAGE PLAN snrei a or � r o.a t{ �exeatl Xx D19.5 ra yFy E it @am XX FI 116II IP6 T WX,XCM1Fet XS=- D1 WASPEN-GLASS � I ---- - - - - - - ele WINS. XXTEED.— X=.. IF I ..F. . .. T.. -EXW-EXT. ISEEFIENTRANKEXa. .. xpp-avomEx QXT-E---X.- WE ..�rr........va 3 F"TWIGSTEELDim 1 EXTSTINGETTAL- AEQWFDxI XxIw L c u a STOREFS SIT �. 000 Falmer Thermal Spray wsr.LL NEW,at.TEo DESSO ox x.wlaw.I..Dxal.Dl Eo.11,IANDxDx..xEE o.xwn.ID.EI,pox ' To«ATEx oTDEox Exil,<xo z wrvx ErxTxc . II. wE.ExDED a.� E.TxxEo .0.o. 1 W xsuuTiDx uECOE rE'S.scux _-• -- a EEL m `�En„ lcsmuEsoxr EsoEEmmSxcE �\ HEAD DETAIL @ NEW STOREFRONT v .xTEns a. 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WrE�FOUSEADSON o. orilSWEENMETALESSEE —.E SE D.Trixu..rox 12 oEsxD.Dx.wwo:rax xOPASSED...1LETE 13 WALLSECTION �1 S L,DETAIL@NEW STOREFRONT �, STOREFRONT PLANEFFEREec 11 _ �_�`"" Ia r a or y 16 eo Lafayette Street `Y "1 evw MaNlehead MA 01945 .s xEwEABPEE xE.wxx iii Tel.(781)631-7039 Fax p81)631-1576 rECE m rch@comcastnet I I a 9.a"L cn exc I I wayarch@comcast.net sll- c+.E reµPwr. & .{{ s tT :xp IEn.»ExE xnEN, Q CANOPY TO BE PRICED BCLUDE 2 LIGHT GLASS. ` INCLUOER LIGHT FUTURES LETS VE FISK BLOK — --- -- anRrS e'xnxe�Kvwncw.TEUCxnwiwx AMIE PS AND ALL la,A uxEx LATEC WORK.BOTH HER OF ENTRANCE _ WE.—K B. �a CANOPY PND vi,,(npEi r..xrv.v'x DOWN LIGHTING z EXTERIOR ELEVATION '" eIT "'" PALMER LOGO TO BE a APPLIED BY OTHERS P2 d� Lig chRP Q d�' Iw.l HLn w aw -i1 9 I a xce ,v. .. 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