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G AND M ROSSI CO.
A , G;-r� Knsl Com.f Alt42Or t J 4iI S-A a , ; A a . w z4 � � p ai, ax' +es •-6 �� - n o- �' - � � � �� �' �^P �ta�'a� � d �:�r: r,ra �..- � . t , - AA m aa•."�` ik _ e� s 4 t > i¢ �,�' � �` � „ter •�` �. � d- �*Hk' � a � ;, e ' M'_. S.i, �s„a tR x t'ie.A.9 x 'F f 'ateik vi v �>a �`� r l .a CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT WILLIAM E. LUSTER —� ONE SALEM GREEN City Planner 3 A 01970 3� jro (508) 745.9595, EXT. 311 "--' FAX (508) 744-5918 TO: . Neil J. Harrington, Mayor FROM: Elizabeth A. Debski, Acting Cit ""6-�� RE: CERTIFIED PROJECT DESIGNATION FOR G & M ROSSI COMPANY,INC. DATE: May 21, 1996 I am writing to recommend that the City designate G & M Rossi Company, Inc. as Salem's fourth Certified Project. This designation will allow the company to qualify for the State and local tax benefits available through the Commonwealth's Economic Development Incentive Program. G & M Rossi Company, Inc. does business in Salem as O'Rourke Brothers Memorials and Absolute Environmental Company. The company's president, Gabriel P. Rossi, Jr., approached City officials in January, seeking to participate in the City's economic development programs. In May, the City approved a low-interest loan for $12,000 to enable exterior improvements to the company's property at 73 North Street. This was the first loan made through the City's new Entrance Corridor Loan Program. Now we hope to assist this small but growing Salem company further by offering State and local tax benefits. The Companies: O'Rourke Brothers Memorials was founded in Salem at 73 North Street in 1890. Mr. Rossi and his wife, Mary Rossetti-Rossi purchased the business in 1981. Since then annual sales have increased by 500 percent. Their success in this business led the Rossis to start another company in 1992, Absolute Environmental Company, which specializes in commercial and residential sandblasting, building restoration and environmental cleaning. Annual gross sales are approximately $100,000. The Rossis employ six full-time employees and expect to create several new jobs in the coming years. The companies' current 8,500 s.f. building can no longer accommodate operations and is an obstacle to future growth. The Rossis plan to construct a 1,500 s.f. addition at a cost of$75,000. They expect the expansion to allow Absolute Environmental Company to increase sales by 50 percent in the first year. In addition, the Rossi hope to purchase approximately $20,000 in new equipment in order to increase production and the efficiency of their operations. ' r The Proposed Tax Plan: We proposed that the`City designate G & M Rossi Company, Inc. a Certified Project for a term of five years. The new addition to the property will increase its value by $40,000. Through a tax increment financing agreement, the City will phase in taxation of the full value of the addition, allowing the company to save approximately $3,300. At the same time, company will be eligible for a State Investment Tax Credit of five percent on its State corporate income taxes. The company plans to invest approximately $100,000 in new construction and new equipment, allowing a savings of$5,000 in the first year of its tenure as a Certified Project. While the company is smaller than other businesses which have received tax benefits from the City, these benefits are significant to its bottom line and will enable the Rossis to continue to grow their businesses and generate jobs in Salem. 1 4 I - v���oN9IT��Qi a�s.k SALEM CITY COUNCIL October 26, 1995 Page 2 incentive will allow the Rossis to direct investment in the future growth of their businesses. The more substantial benefit of Certified Project designation, however, is the State's five percent Investment Tax Credit. Investment in new construction and new capital equipment will total approximately $100,000 enabling the company to take an investment tax credit of$5,000 in the first year of its tenure as a Certified Project. G& M Rossi Company Inc. is a worthy beneficiary of these incentives. Not only will its expansion and renovation of the North Street property generate tax revenue for the City, it will provide jobs for Salem residents as well. The growing company current employs six people and plans to hire several new employees during the next five years. Also, exterior renovations will help to improve the appearance of a business located on an entrance corridor. If approved, this project will mark the fourth time that the City has used the tools available through the Economic Development Incentive Program to promote development in Salem. The City used state and local tax benefits to retain the Salem manufacturer Thermal Circuits and facilitate development of a new industrial park. Property tax incentives were critical in convincing a regional corporation,Ninety-Nine West, Inc., to invest in a blighted location burdened with delinquent taxes. Recently, with the designation of New England Wire Assemblies, the City retained a growing Salem company with 16 employees and encouraged the re-use of a vacant building. Together, these projects created or retained 260 jobs, generated $78,000 in annual tax revenue and demonstrated Salem's ability to create opportunities for economic growth. These projects have sent a strong message to companies located in Salem and outside of the City, showing that we are able to compete successfully for business. The economic impact of these projects and the pro-business message they send have combined to result in an improved business climate and new employment opportunities for local residents. Gabriel Rossi and Mary Rossetti-Rossi wish to continue to grow their businesses in Salem and have demonstrated a commitment to their employees and to the City. I urge you to support their application for Certified Project status and to vote to endorse this Tax Increment Financing plan. Sincerely, Neil J. Harrington Mayor G & M ROSSI COMPANY, INC. D/B/A O'ROURKE BROTHERS MEMORIALS AND D/B/A ABSOLUTE ENVIRONMENTAL COMPANY PROPOSED FIVE-YEAR TAX INCREMENT FINANCING PLAN Value now $190,000 Value of the property before renovation Base tax bill $6,504 Value after renovation $230,000 Assumed Increment in value $40,000 Tax at full value $7,590 Year t Year 2 Year 3 Tax at full value $7,590 Tax at full value $7,590 Tax at full value $7,590 Base tax bill $6,504 Base tax bill $6,504 Base tax bill $6,504 Company pays $6,504 Tax on increment $132 Tax on increment $396 Company saves $1,086 Company pays $6,636 Company pays $6,900 Company saves $954 Company saves $690 Company pays base tax bill only. Company pays taxes on 10% of Company pays taxes on 30%of increment plus base tax bill. increment plus base tax bill. Year 4 Year 5 Year 6 Tax at full value $7,590 Tax at full value $7,590 Tax at full value $7,590 Base tax bill $6,504 Base tax bill $6,504 Tax on increment $660 Tax on increment $924 Company pays $7,164 Company pays $7,428 Company saves $426 Company saves $162 Company pays taxes on 50%of Company pays taxes on 70% of Company pays taxes on the full increment plus base tax bill. increment plus base tax bill. value of the property. Total property tax exemptions over five years $3,320 Total property tax paid during TIF agreement $34,631 RESOLUTION AUTHORIZING A TAX INCREMENT FINANCING AGREEMENT For G & M Rossi Company, 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 encourage business expansion in and relocation to the City of Salem; WHEREAS, there is strong support for using Tax Increment Financing to encourage the continued growth of G& M Rossi Company, Inc., in Salem and to encourage the expansion and improvement of the company's property at 73 North Street, and this property is located in the Salem Economic Opportunity Area; NOW THEREFORE BE IT RESOLVED by the Salem City Council that: (1) The Tax Increment Financing Agreement be adopted as it has been substantially submitted to the City Council. A copy of said Tax Increment Financing Agreement is attached as Exhibit A, and made part of this Resolution. (2) The area to be designated as a Tax Increment Financing Zone is: That land situated in Salem in the County of Essex and Commonwealth of Massachusetts, bounded and described as follows: "NORTHEASTERLY by the Road to North Street, as show on a plan hereinafter referred to, one hundred seven and 79/100 (100.79) feet; SOUTHEASTERLY by the way shown on said plan, one hundred(100) feet; SOUTHWESTERLY by Lot A, as shown on said plan, one hundred seven and 99/100 (107.99) feet; and NORTHWESTERLY by North River Canal, as shown on said plan, one hundred (100) feet. The above described premises is shown as Lot B on a plan of land entitled "Plan of Land in Salem, MA, Property of O'Rourke Brothers, Inc. Scale 1"=50' Dec. 9, 1980, Essex Survey Service, Inc., 47 Federal Street. Salem, MA." recorded with Essex South District Registry of Deeds, Book 6806, Page 781 and containing 10,789 square feet, more or less, according to said plan." (3) A map of the Tax Increment Financing Zone is hereby attached as Exhibit B and made part of this Resolution. (4) The Tax Increment Financing Agreement shall be binding on all subsequent owners of the property in the Tax Increment Financing Zone. The City of Salem reserves the right to review and renegotiate the Tax Increment Financing Agreement if the business activity ceases to be fully operational during the life of the Tax Increment Financing Agreement, as specified in the Tax Increment Financing Agreement. (5) A copy of the adopted Tax Increment Financing Agreement shall be forwarded to the Massachusetts Economic Assistance Coordinating Council for its approval. (6) The effective date of the Tax Increment Financing Agreement shall be the date which the Tax Increment Financing Agreement is approved by the Massachusetts Economic Assistance Coordinating Council or July 1, 1996 (Fiscal Year 1997), whichever is later. (7) The Mayor is hereby authorized to execute and implement the Tax Increment Financing Agreement. Adopted this 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 EXHIBIT A: Tax Increment Financing Agreement EXHIBIT B: Map of Tax Increment Financing Zone RESOLUTION AUTHORIZING A TAX INCREMENT FINANCING AGREEMENT For G & M Rossi Company, 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 encourage business expansion in and relocation to the City of Salem; WHEREAS,there is strong support for using Tax Increment Financing to encourage the continued growth of G & M Rossi Company, Inc., in Salem and to encourage the expansion and improvement of the company's property at 73 North Street, and this property is located in the Salem Economic Opportunity Area; NOW THEREFORE BE IT RESOLVED by the Salem City Council that: (1) The Tax Increment Financing Agreement be adopted as it has been substantially submitted to the City Council. A copy of said Tax Increment Financing Agreement is attached as Exhibit A, and made part of this Resolution. (2) The area to be designated as a Tax Increment Financing Zone is: That land situated in Salem in the County of Essex and Commonwealth of Massachusetts, bounded and described as follows: "NORTHEASTERLY by the Road to North Street, as show on a plan hereinafter referred to, one hundred seven and 79/100 (100.79) feet; SOUTHEASTERLY by the way shown on said plan, one hundred (100) feet; SOUTHWESTERLY by Lot A, as shown on said plan, one hundred seven and 99/100 (107.99) feet; and NORTHWESTERLY by North River Canal, as shown on said plan, one hundred (100) feet. The above described premises is shown as Lot B on a plan of land entitled "Plan of Land in Salem, MA, Property of O'Rourke Brothers, Inc. Scale V=50' Dec. 9, 1980, Essex Survey Service, Inc., 47 Federal Street. Salem, MA." recorded with Essex South District Registry of Deeds, Book 6806, Page 781 and containing 10,789 square feet, more or less, according to said plan." (3) A map of the Tax Increment Financing Zone is hereby attached as Exhibit B and made part of this Resolution. (4) The Tax Increment Financing Agreement shall be binding on all subsequent owners of the property in the Tax Increment Financing Zone. The City of Salem reserves the right to review and renegotiate the Tax Increment Financing Agreement if the business activity ceases to be fully operational during the life of the Tax Increment Financing Agreement, as specified in the Tax Increment Financing Agreement. (5) A copy of the adopted Tax Increment Financing Agreement shall be forwarded to the Massachusetts Economic Assistance Coordinating Council for its approval. (6) The effective date of the Tax Increment Financing Agreement shall be the date which the Tax Increment Financing Agreement is approved by the Massachusetts Economic Assistance Coordinating Council or July 1, 1996 (Fiscal Year 1997), whichever is later. (7) The Mayor is hereby authorized to execute and implement the Tax Increment Financing Agreement. Adopted this 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 EXHIBIT A: Tax Increment Financing Agreement EXHIBIT B: Map of Tax Increment Financing Zone TAX INCREMENT FINANCING AGREEMENT CITY OF SALEM, MASSACHUSETTS and G & M Rossi Company, Inc. This agreement is made this XX day of May, 1996, 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 the Mayor, Neil J. Harrington, hereinafter called "the CITY" , actin g through h o g y gt , ( ), and G & M Rossi Company, Inc. (d/b/a/ O'Rourke Brothers Memorials and d/b/a Absolute Cleaning Company), a Massachusetts corporation with a principal place of business at 73 North Street in Salem, Massachusetts, 01970 (hereinafter called "the COMPANY") . This Agreement will take effect as of July 1, 1996 (Fiscal Year 1997) or upon approval by the Massachusetts Economic Assistance Coordinating Council, whichever is later. WHEREAS, the COMPANY wishes to expand its operations at its facility at 73 North Street in Salem; and WHEREAS, the CITY is willing to grant tax concessions in return for guarantee of exterior improvements to the property, construction of an addition on the property,the expansion of business operations in Salem, and the creation of employment opportunities for local workers; and WHEREAS, the Salem City Council resolved on November 9, 1995 to allow the use of Tax Increment Financing as a tool to encourage economic development within the Salem Economic Opportunity Area; and WHEREAS, the Salem City Council resolved on May X, 1996 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 make exterior renovations to the facility and expand the facility at 73 North Street in Salem. "The FACILITY" as used herein means a building containing approximately 8,500 square feet plus site improvements. 2. During the life of this agreement, if the COMPANY decides to sell the FACILITY or the business or to otherwise transfer control of the FACILITY or business and/or operations thereof, the COMPANY shall give the CITY at least three months notice of said sale or transfer. Said notice shall be given by certified mail, return receipt requested, to the Mayor, City Hall, 93 Washington Street, Salem, Massachusetts, 01970. 3. The COMPANY shall make good faith efforts to use qualified local contractors for renovation and development of the FACILITY. The COMPANY shall make good faith efforts to use qualified local contractors for future repairs and renovations to the FACILITY. 4. Subject to applicable law and assuming equal qualifications, the COMPANY will afford priority to residents of the Beverly & Salem Regional Economic Target Area in its hiring of new employees. B. THE CITY'S OBLIGATIONS 1. The CITY shall grant a tax increment financing exemption to the COMPANY in accordance with Massachusetts General Laws, Chapter A, Section 3E, Chapter 40, Section 59, and Chapter 59, Section 5. Said exemption shall be granted on the improvements to the FACILITY. Said exemption shall be valid for a period of five (5) years, beginning with fiscal year 1997 (July 1, 1996) and ending with fiscal year 2002. During each year of this agreement, the company will pay taxes based on the current value of the FACILITY as of the date of this agreement (the base tax bill) and on that portion of the value of the FACILITY which is not exempted under the agreement. The exemption schedule on the value of the FACILITY works as follows: For the first year, the COMPANY will pay only the base tax bill and will be granted an exemption of 100 percent of the full value of improvements to the FACILITY. The full value of improvements to the FACILITY is hereinafter called "the INCREMENT". In year two, the COMPANY will pay taxes on 10%of the full value of the INCREMENT, plus the base tax bill. In year three, the COMPANY will pay taxes on 30% of the full value of the INCREMENT, plus the base tax bill. In year four, the COMPANY will pay taxes on 50% of the INCREMENT, plus the base tax bill. In year five, the COMPANY will pay taxes on 70% of the INCREMENT, plus the base tax bill. In year six, the COMPANY will pay taxes on the full value of the FACILITY. C. OTHER CONSIDERATIONS I. This Tax Increment Financing Agreement shall be binding on all subsequent owners of the property. The City of Salem reserves the right to review and renegotiate the Tax Increment Financing Agreement if the business activity ceases to be fully operational during the life of the Tax Increment Financing Agreement. 2. If the COMPANY decides to expand the facility at any time during the life of the Tax Increment Financing Agreement,the CITY and the COMPANY may renegotiate the Tax Increment Financing Agreement to exempt all or part of the value of the expansion from property taxes. The exact amount of that exemption will be determined at the time of expansion. Executed as a sealed instrument on the day and year first above written. CITY OF SALEM G & M Rossi Company, Inc. Neil J. Harrington, Mayor Gabriel P. Rossi, Jr., President Notary Public My commission expires N it 'VU'61S 'A3tl +•r rr - � °on a occs 9b4 - m _ r w 414 'tl'o'B AB 'A3tl el Sbb G.:: a r .•• /,\\\� rve'fa or.+• ��j3Zf LbY c ' V IZ J :I'Y'0'B�AB A3tll �� BSb = ccGnt � N fIS' BZS .cl 11 'VU'S AS 'A3tl --.•• 3. d 'e' a 3 f 5 3 _ •• ZZ9 ,l. efs t II -VU'S A6 'A311 ifm r.n•i. vl• xtl°xa r.. � n a� l U'3S AS A3111 S Gr.Y Lfb gfy n xt 9fb 't'a-.'a ca•'l.+•� t.ril IIS AS A3tl) L.... an Z. 060P a°+. I'U9S AS A3tl rtH _ �d 1g1v3 Y°Gr Sf .MIYYt. F �y ❑ 0[f'9 V• SW y. A113 1 173Y14• .• NiYnxa i£8Y 1 5 il'G � °laYr W a]IOI. tiYl1 af'I j4ttGG � a Yb • F bfb u 960 e V s 3 �7 I b61' SSC Y°o l °• .rrr • • Gtia' .. •+1 n. I.J..1r'b °Ibb I G„'r a ortlf aocal pO + I AN3 3 Y c ``•�' I r � � a'� S: 'a 1 tla4' n _ 4 3 S lNA i ', 7 SSI ccYc beg £Z9 u u a fFb` IYY GY- .. G/III rwa 2 l OF► .RIO ° Y•• .+r S a L6C r0` 9£9 LW SIS aYtr -i Z arc. /N tigl aGP-I 13 oto'.rGp [Zb SZ► ^`• ai�^c �� y IG°G � In• •.. 1 �a it lrl ib Pd” ,.• 'ea a.tq J-.YYY/ ' �. • 4 3 y �aY .a //'//' 90S a l •�• ` /// /� Its, ats, ♦ It xa•n.0 1 ;; ��____ aydA ltal lG4 a.lr•rG � f/ D.. / /- col / - ect by nalr. /e Alla / i 1t\) •Y Oct, 1 .\ • GIG e ' it 414 NO id 16 It /1t• i' \ d Q G O � / �� !c ^i+ ••. 4y 49 +yL.4 �+ •� At t 9 t rw nr ZM �'+OO' �A • oGa'� '° s t7t L oft • p ot�prx cti Yd.e cdt tyfw 6 t s 4 `I a .I a ?tod5' }�q. �t ` aA•ye °fall 4 Gttpy J y • "o ,. � FEB BI '96 12:28 PM O'ROURKE BROS. MEMORIALS Page 1 COMMONWEALTH OF MASSACBU5ETTS ECONOMIC DEVELOPMENT INCENTIVE PROGRAM - CITY OF SALEM G. & M. ROSSI COMPANY INCORPORATED d/b/a O 'ROURKE BROS MEMORIALS d/b/a ABSOLUTE ENVIRONMENTAL CO. d/b/a ABATE MONUMENTS 73 NORTH STREET SALEM, MA. 01970 FED. I .D.# 04-2727890 S CORPORATION OFFICERS GABRIEL P. ROSSI JR. - PRESIDENT MARY E. ROSSETTI-ROSSI - V. PRESIDENT MARY E. ROSSETTI-ROSSI - CLERK both living at ONE HUNTER LANE HAMILTON, MA. 01982 SIX EMPLOYEES WAGES RANGE FROM $18 ,000.00 to $100,000.00 YEARLY WE PLAN ON ADDING TWO MORE JOBS BECAUSE OF THE F.XPANTI0N WITH WAGES FOR EACH POSITION TO BE BETWEEN $20 ,000.00 to $24,000.00 YEARLY. O'ROURKE BROS. MEMORIALS WAS ESTABLISHED IN 1890, AND IS ONE OF THE OLDEST MONUMENT COMPANIES IN NEW ENGLAND. IT HAS BEEN AT THE SAME LOCATION IN SALEM SINCE IT WAS ESTABLISHED. THE COMPANY HAS GROWN OVER THE YEARS, ESPECIALLY SINCE IT WAS PURCHASED BY GABRIEL AND MARY ROSSI IN 1981 . SINCE 1981 ANNUAL SALES HAVE GROWN FROM $150,000.00 TO $900,000.00. THIS NEWPPANTION INTO THE COMMERCIAL AND RESIDENTIAL SANDBLASTING MARKET/AUILDING RESTORATION AND ENVIRONMENTAL CLEANING MARKETS SHOULD PROVE TO BE REWARDING. OUR ANNUAL. GROSS SALES FOR THE - SANDBLASTING BUSINESS IS APPROX. $100,000.00. ONCE THE EXPANTION IS COMPLETE WE EXPECT TO SEE OUR SALES INCREASE BY 50% THE FIRST YEAR, OUR COMPANY OFFERS A MEDICAL PLAN TO THE EMPLOYEES. THE EXPANTION WILL COST APPROX. $75,000 .00. THE EXPANTION WILL PROVIDE 1500 SQ. FT. OF ENCLOSED HEAPED SPACE WHICH WILL BE USED FOR STATE OF THE ART SANDBLASTING AND PAINTING BOOTHS, MATERIALS STORAGE, AND GENERAL SHOP SPACE. THE PROJECT WILL BE FINANCED BY CENTURY BANK AND THE SALEM REDEVELOPMENT AUTHORITY. THE PROJECT SHOULD BE COMPLETED BY THE SUMMER OF 1996. i 40 N • � N/( r � r, 1 e,7 A I� II FAX TRANSMISSION SALEM PLANNING DEPARTMENT ONE SALEM GREEN SALEM. MAO 19 70 508 745-9595 Exr3 1 1 FAX: 508 740-0404 To: Date: Fax#: Pages: including this cover sheet. Fro Subject: r COMMENTS: %% � t CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT WILLIAM E. LUSTER ONE SALEM GREEN City Planner - - lr�cll j 01970 '�x f i (508) 745.9595, EXT. 311 FAX (508) 744-5918 TO: Gabe Rossi FROM: Michelle Cammarataab-_ RE: TAX BENEFITS DATE: May 17, 1996 I have started working on your applications for state and local tax benefits. I will need to compile a list of follow-up questions in order to complete them. For now, however, I have almost enough information to present the deal to the City Council at Thursday's Council meeting. Attached is the proposed five-year property tax plan. The company would save $3,320 over five years. The more substantial benefit to you will be the State's 5% Investment Tax Credit. You can deduct 5% of the value of the construction cost as well as the cost of any new equipment from your State corporate income tax or State personal income tax. You mentioned that you will be purchasing some expensive equipment. How much do you expect to invest in equipment over five years? Please let me know today if you can. Thanks. G & M ROSSI COMPANY, INC. DIB/A O'ROURKE BROTHERS MEMORIALS AND D/B/A ABSOLUTE ENVIRONMENTAL COMPANY PROPOSED FIVE-YEAR TAX INCREMENT FINANCING PLAN Value now $190,000 Value of the property before renovation Base tax bill $6,504 Value after renovation $230,000 Assumed Increment in value $40,000 Tax at full value $7,590 Year 1 Year 2 Year 3 Tax at full value $7,590 Tax at full value $7,590 Tax at full value $7,590 Base tax bill $6,504 Base tax bill $6,504 Base tax bill $6,504 Company Pays $6,504 Tax on increment $132 Tax on increment $396 Company Saves $1,086 Company pays $6,636 Company pays $6,900 Company saves $954 Company saves $690 Company pays base tax bill only. Company pays taxes on 10% of Company pays taxes on 30% of increment plus base tax bill. increment plus base tax bill. Year 4 Year 5 Year 6 Tax at full value $7,590 Tax at full value $7,590 Tax at full value $7,590 Base tax bill $6,504 Base tax bill $6,504 Tax on increment $660 Tax on increment $924 Company pays $7,164 Company pays $7,428 Company saves $426 Company saves $162 Company pays taxes on 50% of Company pays taxes on 70%of Company pays taxes on the full value, increment plus base tax bill. increment plus base tax bill. of the property. Total property tax exemptions over five years $3,320 Total property tax paid during TIF agreement $34,631 CP is a Gt 777; Commonwealth of Massachusetts Massachusetts Office of Business Development One Ashburton Place, Room 2101 Boston, Massachusetts 02108 WILLIAM F.WELD TELEPHONE GOVERNOR (617)7273206 ARGEO PAUL CELLUCCI - FAX : LIEUTENANT GOVERNOR (617)727-8797 DAVIDA.TIBBETTS SECRETARY JOHN R. REGANr EXECUTIVE DIRECTOR NUG 19g6 August 1, 1996 g �Q'oP The Honorable Neil J. Harrington Mayor, City of Salem Salem City Hall 93 Washington Street Salem, Massachusetts 01970 Dear Mayor Harrington: On behalf of the Economic Assistance Coordinating Council (SACC) and Office of Business Development Executive Director John Regan, I am pleased to transmit a copy of the formal approval of the,G�&-M-Rossi-Company;=Inc?d/b/a O'Rourke Brothers Memorials and d/b/a Absolute Environmental Cleaning Company as a Certified Project within the Salem Economic Opportunity Area. This approval was granted by the EACC at its meeting of July 31, 1996. Please keep this record of designation for your files. Please know that I am once again very appreciative of the assistance provided by Ms. Michelle Cammarata in the successful implementation of the Economic Development Incentive Program, and I look forward to designating additional Certified Projects in Salem. Sincerely, kle"---5. /2�'7 ' Karen S. Baptiste, Director / Economic Assistance Coordinating Council cc: Michelle Cammarata ✓ A Gabriel P. Rossi, Jr., G & M Rossi Company, Inc. MOTION TO APPROVE G & M ROSSI COMPANY, INC. AS A CERTIFIED PROJECT WITHIN THE SALEM ECONOMIC OPPORTUNITY AREA WHEREAS, Chapter 23A, Sections 3A through F as amended by Chapter 19 of the Acts of 1993, established the Economic Development Incentive Program (EDIP); WHEREAS, the EDIP program is designed to promote increased business development and expansion in Economic Target Areas (ETAs) and Economic Opportunity Areas (EOAs) of the Commonwealth; WHEREAS, the Economic Assistance Coordinating Council (EACC), established by Section 3B of said Chapter 23A, is charged with administering the EDIP program, including the review and approval of applications from municipalities for the designation of areas as ETAs and EOAs; WHEREAS, the city of Salem was designated by the EACC as part of the Beverly-Salem regional Economic Target Area on September 12, 1994; WHEREAS, the EACC approved the Salem Economic Opportunity Area within the Beverly- Salem Economic Target Area on March 30, 1995; WHEREAS, the G & M Rossi Company, Inc. d/b/a O'Rourke Brothers Memorials and d/b/a Absolute Environmental Cleaning Company, hereinafter referred to as G & M Rossi, intends to build an addition onto its existing facility at 73 North Street to accommodate current needs and anticipated future growth; WHEREAS, G & M Rossi intends to invest approximately $187,000.00 in construction costs, exterior renovations and capital equipment over the next five years; WHEREAS, G & M Rossi has committed to hiring nine (9) new permanent full-time employees within five years, with a preference to hiring qualified city and ETA residents; WHEREAS, G & M Rossi filed a Certified Project application with the city of Salem, which the city approved by a Vote of its City Council on June 27, 1996; WHEREAS, the Salem City Council approved a Tax Increment Financing Plan and Agreement for G & M Rossi at its meeting of June 27, 1996; WHEREAS, the city of Salem and G & M Rossi have entered into a Tax Increment Financing Agreement for five years; City of Salem - Certified Project Designation Page 2 WHEREAS, the EACC finds that the proposed Certified Project for G & M Rossi in the approved Salem EOA meets the mandatory criteria required in 402 CMR 2.10 (3) and (4); WHEREAS, the EACC finds that the proposed G & M Rossi Certified Project has received the appropriate municipal approval by the Salem City Council, in accordance with 402 CMR 2.10 (5) and (6) and 2.11; and WHEREAS, the EACC finds that the proposed G & M Rossi Certified Project, if so certified, will have a reasonable chance for increasing employment opportunities for the residents of the Beverly-Salem ETA, thereby reducing conditions of blight, economic depression, and widespread reliance on public assistance; NOW THEREFORE BE IT RESOLVED by the Economic Assistance Coordinating Council that: 1. The G & M Rossi Company, Inc. d/b/a O'Rourke Brothers Memorials and d/b/a Absolute Environmental Cleaning Company Certified Project is approved, as the EACC has received a Certificate of Good Standing issued by the MA Department of Revenue. 2. The G & M Rossi Company, Inc. d/b/a O'Rourke Brothers Memorials and d/b/a Absolute Environmental Cleaning Company is eligible for the Massachusetts 5% Economic Opportunity Investment Tax Credit effective this date. MOTION by oil S Aaa i 0seconded by & �yill n at the July 31, 1996 meeting f the Economic Assistance Coordinating Council, at which a quorum was present. Ayes Irl Nays Abstentions d Absent 5 City of Salem - Certified Project Designation Page 3 APPROVED: A. Tibbetts, Director Department of Economic Development Co-Chairperson, Economic Assistance Coordinating Council Jane alli Gu le Deputy Director Divis o of Ho and Community Development Co-Chairperson, Economic Assistance Coordinating Council i' TAX INCREMENT FINANCING AGREEMENT CITY OF SALEM, MASSACHUSETTS and G & M Rossi Company, Inc. This agreement is made this/day of July, 1996, 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,Neil J. Harrington, (hereinafter called "the CITY"), and G& M Rossi Company, Inc. (d/b/a/O'Rourke Brothers Memorials and d/b/a Absolute Cleaning Company), a Massachusetts corporation with a principal place of business at 73 North Street in Salem, Massachusetts, 01970 (hereinafter called "the COMPANY") . This Agreement will take effect as of July 1, 1996 (Fiscal Year 1997) or upon approval by the Massachusetts Economic Assistance Coordinating Council, whichever is later. WHEREAS, the COMPANY wishes to expand its operations at its facility at 73 North Street in Salem; and WHEREAS, the CITY is willing to grant tax concessions in return for guarantee of exterior improvements to the property, construction of an addition on the property, the expansion of business operations in Salem, and the creation of employment opportunities for local workers; and WHEREAS,the Salem City Council resolved on November 9, 1995 to allow the use of Tax Increment Financing as a tool to encourage economic development within the Salem Economic Opportunity Area; and WHEREAS, the Salem City Council resolved on June 27, 1996 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 make exterior renovations to the facility and expand the facility at 73 North Street in Salem. "The FACILITY" as used herein means a building containing approximately 8,500 square feet plus site improvements. 2. During the life of this agreement, if the COMPANY decides to sell the FACILITY or the business or to otherwise transfer control of the FACILITY or business and/or operations thereof, the COMPANY shall give the CITY at least three months notice of said sale or transfer. Said notice shall be given by certified mail, return receipt requested, to the Mayor, City Hall, 93 Washington Street, Salem, Massachusetts, 01970. 3. The COMPANY shall make good faith efforts to use qualified local contractors for renovation and development of the FACILITY. The COMPANY shall make good faith efforts to use qualified local contractors for future repairs and renovations to the FACILITY. 4. Subject to applicable law and assuming equal qualifications, the COMPANY will afford priority to residents of the Beverly & Salem Regional Economic Target Area in its hiring of new employees. B. THE CITY'S OBLIGATIONS 1. The CITY shall grant a tax increment financing exemption.to the COMPANY in accordance with Massachusetts General Laws, Chapter A, Section 3E, Chapter 40, Section 59, and Chapter 59, Section 5. Said exemption shall be granted on the improvements to the FACILITY. Said exemption shall be valid for a period of five (5) years, beginning with fiscal year 1997 (July 1, 1996) and ending with fiscal year 2002. During each year of this agreement, the company will pay taxes based on the current value of the FACILITY as of the date of this agreement (the base tax bill) and on that portion of the value of the FACILITY which is not exempted under the agreement. The exemption schedule on the value of the FACILITY works as follows: For the first year, the COMPANY will pay only the base tax bill and will be granted an exemption of 100 percent of the full value of improvements to the FACILITY. The full value of improvements to the FACILITY is hereinafter called "the INCREMENT". In year two, the COMPANY will pay taxes on 10% of the full value of the INCREMENT, plus the base tax bill. In year three, the COMPANY will pay taxes on 30% of the full value of the INCREMENT, plus the base tax bill. In year four, the COMPANY will pay taxes on 50% of the INCREMENT, plus the base tax bill. In year five, the COMPANY will pay taxes on 70% 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 G &M Rossi Company, Inc. Neil J. Harri gton, Mayo Gabriel P. Rossi, Jr., Preside otary Public My commission expires S /3 G,�F / s �/ L.. \� N I RESOLUTION AUTHORIZING A TAX INCREMENT FINANCING AGREEMENT For G & M Rossi Company, 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 encourage business expansion in and relocation to the City of Salem; WHEREAS, there is strong support for using Tax Increment Financing to encourage the continued growth of G& M Rossi Company, Inc., in Salem and to encourage the expansion and improvement of the company's property at 73 North Street, and this property is located in the Salem Economic Opportunity Area; NOW THEREFORE BE IT RESOLVED by the Salem City Council that: (1) The Tax Increment Financing Agreement be adopted as it has been substantially submitted to the City Council. A copy of said Tax Increment Financing Agreement is attached as Exhibit A, and made part of this Resolution. (2) The area to be designated as a Tax Increment Financing Zone is: That land situated in Salem in the County of Essex and Commonwealth of Massachusetts, bounded and described as follows: "NORTHEASTERLY by the Road to North Street, as show on a plan hereinafter referred to, one hundred seven and 79/100 (100.79) feet; SOUTHEASTERLY by the way shown on said plan, one hundred (100) feet; SOUTHWESTERLY by Lot A, as shown on said plan, one hundred seven and 99/100 (107.99) feet; and NORTHWESTERLY by North River Canal, as shown on said plan, one hundred (100)feet. The above described premises is shown as Lot B on a plan of land entitled"Plan of Land in Salem, MA, Property of O'Rourke Brothers, Inc. Scale 1"=50' Dec. 9, 1980, Essex Survey Service, Inc., 47 Federal Street, Salem, MA recorded with Essex South District Registry of Deeds, Book 6806, Page 781 and containing 10,789 square feet, more or less, according to said plan." f (3) A map of the Tax Increment Financing Zone is hereby attached as Exhibit B and made part of this Resolution. (4) The Tax Increment Financing Agreement shall be binding on all subsequent owners of the property in the Tax Increment Financing Zone. The City of Salem reserves the right to review and renegotiate the Tax Increment Financing Agreement if the business activity ceases to be fully operational during the life of the Tax Increment Financing Agreement, as specified in the Tax Increment Financing Agreement. (5) A copy of the adopted Tax Increment Financing Agreement shall be forwarded to the Massachusetts Economic Assistance Coordinating Council for its approval. (6) The effective date of the Tax Increment Financing Agreement shall be the date which the Tax Increment Financing Agreement is approved by the Massachusetts Economic Assistance Coordinating Council or July 1, 1996 (Fiscal Year 1997), whichever is later. (7) The Mayor is hereby authorized to execute and implement the Tax Increment Financing Agreement. Adopted this 27 day of rte, 0 19 P6 by the Salem City Council at a regularCityCouncil meeting with a quorum present. lilt2? , V--, July 15, 1996 Neil J. Mayor Date ATTEST: Deborah E. Burkinshaw, City Clerk SEAL,', EXHIBIT A: Tax Increment Financing Agreement EXHIBIT B: Map of Tax Increment Financing Zone O" ROURKE BROS. MEMORIALS O IAI,S July 16, 1996 Economic Assistance Coordinating Council Massachusetts Office of Business Development One Ashburton Place, Room 2102 Boston, MA 02108 To the Members of the Economic Assistance Coordinating Council: G & M Rossi Company,Inc., doing business as O'Rourke Brothers Memorials and Absolute Environmental Company, is committed to remaining and growing in the City of Salem. O'Rourke Brothers Memorials has been in business at 73 North Street since 1890. In 1981, my company purchased the business and began a successful expansion program. In 1992, we founded Absolute Environmental Company in the same facility. Both ventures have proven successful, and the facility can no longer meet our needs. To continue to grow we are constructing an addition,which will be completed by the end of the summer. The City of Salem has offered a tax increment financing plan which will save$3,320 over five years, allowing us to direct additional resources toward improving the facility. The five percent investment tax credit will aid us tremendously as we purchase new equipment. In exchange for these benefits,the expansion of both companies provides several benefits for the community. Together both companies will add nine full-time jobs over the next five years. With the help of a low-interest loan from the City of Salem,we are improving the appearance of the property, located on one of Salem's busiest gateways. I grew up in Salem, and I care about the City's future. I want to continue to do business here and help to improve the economic vitality of the North Street area. Sincer Gabriel P. Rossi, Jr. President 73 North Street, Salem, MA 01970 Phone (508)744-0871/1-800-439-0871 / Fax (508)741-2016 CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT WILLIAM E. LUSTERa ONE SALEM GREEN City Planner 01970 (508) 745-9595, EXT. 311 FAX(508) 7445918 INVOICE July 23, 1996 Through its Entrance Corridor Business Loan Program,the City of Salem has made a loan in the amount of$12,000 to G& M Rossi Company, Inc. (d/b/a O'Rourke Brothers Memorials) This loan will enable improvements to the property at 73 North Street in Salem. Please prepare a check for the third installment of$3,090. Payment activity of the loan principal is summarized below: Principal $12,000 Installment 1 $ 5,760 paid to borrower Balance $6,240 Installment 2 $3,150 invoice presented on July 3. Balance $3,090 Installment 3 $3,090 requested in this invoice balance $0 The first installment of 5,760 has been paid. An invoice was presented on July 3 for the second . installment of$3,150. The remaining balance is $3,090. Please prepare a check for this amount. This represents the third and final installment of the loan. l o�� �� RESOLUTION APPROVING CERTIFIED PROJECT APPLICATION OF G & M Rossi Company, Inc. WHEREAS, G& M Rossi Company, 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, G & M Rossi Company, 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 73 North Street, within the boundaries of the Salem Economic Opportunity Area. The legal description is as follows: "NORTHEASTERLY by the Road to North Street, as show on a plan hereinafter referred to, one hundred seven and 79/100 (100.79) feet; SOUTHEASTERLY by the way shown on said plan, one hundred (100) feet; SOUTHWESTERLY by Lot A, as shown on said plan, one hundred seven and 99/100 (107.99) feet; and NORTHWESTERLY by North River Canal, as shown on said plan, one hundred (100) feet. The above described premises is shown as Lot B on a plan of land entitled"Plan of Land in Salem, MA, Property of O'Rourke Brothers, Inc. Scale 1"=50' Dec. 9, 1980, Essex Survey Service, Inc., 47 Federal Street, Salem, MA recorded with Essex South District Registry of Deeds, Book 6806, Page 781 and containing 10,789 square feet, more or less, according to said plan." WHEREAS the City of Salem has agreed to offer G& M Rossi Company, Inc. a Tax Increment Financing Agreement; WHEREAS, G& M Rossi Company, Inc. will invest approximately $87,000 to construct an addition to the property and make a complete exterior renovation of the property, expand the company's operations in Salem, retain eight jobs in the City and create approximately nine new, permanent, full-time jobs. WHEREAS, the exterior renovation of the property at 73 North Street will substantially improve the aesthetic appearance of a property on one of the City's entrance corridors; NOW THEREFORE BE IT RESOLVED that the Salem City Council approves the Certified Project application of G & M Rossi Company, Inc., designating this project as a certified project for a period of five years, and forwards said application for certification to the Massachusetts Economic Assistance Coordinating Council for its approval and endorsement. Adopted this 27th day of June 199 6 by the Salem City Council. /� � � I L2:3 �i Dz- Date July .15, 1996 Neil J. Harrington, Mayor Attest: Deborah E. Burkinshaw, City Clerk SEAL:- Y r - 1 gOND1 as\� rt s7 a. ' �OtM1AIB 0�� CITY OF SALEM. MASSACHUSETTS ' NEIL J. HARRINGTON MAYOR ' G & M Rossi Company, Inc. ' Application for Certified Project Designation Tax Increment Financing Plan 1 ' GABRIEL P. ROSSI `I I I `Ill It-IA L� ROURKE BROS. l _1 — 1 � e O'Rourke Brothers Memorials has operated sc 73 North Street in Salem since 1890. In 1981, G&M Rossi Company purchased the easiness. In 1992,company officials ' founded Absolute Environmental Compam:.a the same facility. Both ventures have proven successful,and an expanded facilit}' s needed to ensure continued growth. ' Presented to: The Economic Assistance Coordinating Council ' Presented by: The City of Salem Neil J. Harrington, Mayor and ' G & M Rossi Company, Inc. July 19, 1996 ' SALEM CITY HALL • 93 WASHINGTON STREET • SALEM. MASSACHUSETTS,01970 • 508/745-9595 • FAX 508/744-9327 1 - MEMORLALS ' July 16, 1996 Economic Assistance Coordinating Council Massachusetts Office of Business Development ' One Ashburton Place,Room 2102 Boston, MA 02108 R ' To the Members of the Economic Assistance Coordinating Council: ' G & M Rossi Company, Inc., doing business as O'Rourke Brothers Memorials and Absolute Environmental Company, is committed to remaining and growing in the City of Salem. ' O'Rourke Brothers Memorials has been in business at 73 North Street since 1890. In 1981, my company purchased the business and began a successful expansion program. In 1992, we founded Absolute Environmental Company in the same facility. Both ventures have proven ' successful, and the facility can no longer meet our needs. To continue to grow we are constructing an addition, which will be completed by the end of the summer. ' The City of Salem has offered a tax increment financing plan which will save $3,320 over five years, allowing us to direct additional resources toward improving the facility. The five ' percent investment tax credit will aid us tremendously as we purchase new equipment. In exchange for these benefits, the expansion of both companies provides several benefits for the community. Together both companies will add nine full-time jobs over the next five years. With the help of a low-interest loan from the City of Salem,we are improving the appearance of the property, located on one of Salem's busiest gateways. ' I grew up in Salem, and I care about the City's future. I want to continue to do business here and help to improve the economic vitality of the North Street area. ' Sincer Gabriel P. Ross4ir, . ' President ' 73 North Street, Salem, MA 01970 Phone (508)744-0871/1-800-439-0871 / Fax (508)741-2016 � 1 The Massachusetts Economic Development Incentive Program Certified Project Application ' Applicant Information tI. Name and address of business submitting this application: ' G& M Rossi Company, Inc. d/b/a O'Rourke Brothers Memorials d/b/a Absolute Environmental Cleaning t 73 North Street Salem, MA 01970 ' Fiscal year end is: September 30 2. Name and address of project (if different from above): ' See above. ' 3. Location of ETA: ' Salem 4. Location of EOA: Salem ' S. Authorization: We, Gabriel P. Rossi, Jr. and Mary E. Rossetti-Rossi, of G& M Rossi Company, Inc., the business 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. We understand that the ' information provided within this application shall be binding for the duratio f the project certification. Gabriel P. Rossi, Jr., Pfesident (Date) Mary $.;Rossetti-Rossi, Vice-President T�(Date) 1 ' 1 t 6. Nature and purpose of project: ' Description of company Representatives of G& M Rossi Company, Inc. seek Certified Project designation for the company, which does business as O'Rourke Brothers Memorials and Absolute ' Environmental Company. O'Rourke Brothers Memorials was founded at 73 North Street in Salem in 1890. Today ' it operates in the same location, under the direction of Gabriel P. Rossi, Jr. and Mary E. Rossetti-Rossi, who purchased the business in 1981. Since that time the company has grown considerably. In 1981 annual sales were $150,000. Last year, annual sales topped ' $900,000 -- an increase of 500 percent. O'Rourke Brothers Memorials has six full-time employees. Company officials expect to add another full-time position next year; by the end of five years, they will add three additional full-time employees. ' Building on their success in managing O'Rourke Bothers Memorials,the Rossis founded ' a new business, Absolute Environmental Company, in 1992. The company specializes in commercial and residential sandblasting, building restoration and environmental cleaning. The business also operates out of 73 North Street. Absolute Environmental ' currently employs two full-time workers. Company officials expect to add another full- time position next year; by the end of five years, they expect to create four additional full- time jobs. Annual sales are approximately $100,000. ' The Expansion Plan ' Company officials will construct a 1,500 s.f. addition to their 8,500 s.f. facility at a cost of$75,000. They also plan exterior improvements to the property at a cost of$12,000. These investments and Certified Project designation will allow the companies to ' accomplish several goals: ' • To grow in a larger facility: The companies' current facility cannot accommodate future growth. The addition will house new sandblasting and painting booths, and will be used for storage and general shop space. • To increase productivity and sales: The addition will accommodate new equipment, allowing Absolute Environmental to serve new customers and ' increase sales by 100 percent in the first year, company officials estimate. By the end of five years, the company's annual sales will climb to $500,000 -- an increase of 400 percent over current levels. This year, O'Rourke Brothers' ' sales are estimated at$900,000. Next year, sales are projected to rise to $1.1 million. By year five, annual sales will reach $1.5 million. 2 1 • To invest in equipment and inventory: During the next several years, company ' officials expect to invest in state-of-the art equipment. The local and State tax benefits available through the Economic Development Incentive Program will assist them in making those investments. This year, Absolute Environmental ' Company will invest in several pieces of new sandblasting equipment,totaling $20,000. By the end of five years, they expect to invest an additional $40,000 in capital equipment. O'Rourke Brothers will spend$10,000 on new ' equipment next year. By the end of five years, they will invest another $30,000 in new equipment, such as a forklift and blasting equipment. G & M Rossi Company, Inc. Growth Projections ' Current Future Current Projected New ' Company Employment Employment Sales Sales Investment G&M Rossi Company, $75,000--construction Inc. $12,000--exterior renovation ' O'Rourke Brothers 6 In year 1: 1 $900,000 In year 1: $I.Im Year I:$10,000 in new equipment Memorials By year 5: 3 By year 5:$1.5m Year 5:$30,000 in new equipment Total:4 Total: $40,000 ' Absolute 2 In year I: 1 $100,000 In year I: $200,000 In year I: $20,000 in new equipment Environmental By year 5: 4 By year 5: $500,000 By year 5:$40,000 in new equipment ' Company Total:5 Total: $60,000 ' 7. Is this business new to Massachusetts? ' This business is not new to Massachusetts. The existing facilities are at 73 North Street in Salem. This project will not require the closing or consolidation of any Massachusetts facilities. 8. Is this project an expansion of an existing business? This project represents the expansion of an existing business at its current location, 73 North Street in Salem. ' 9. job creation tPlease see the chart below. 3 1 Work Force Analysis and Job Creation Plan ' Key: 0=O'Rourke Brothers Memorials A=Absolute Environmental Company (urrent TOTAL projected NEWJOBS NEW JOBS NEW JOBS NEW JOBS NEW JOBS ' employment new permanent jobs Year 1,1996 Year 2, 1991 Year 3, 1998 Year 4,1999 Year 5, 2000 #employees at certified project 0: 6 t facility A: 2 Total employees at other sites in Mass. ' #of employees at certified project 0: 1 location who live in the ETA A: I ' #of permanent,full-time employees 0: 6 0: 4 0: 1 0: 3 A: 2 A: 5 A: I A: 4 ' #of temporary,full-time employees 0: 0 A: 0 #of temporary part-time employees 0: 2 This is seasonal employment and difficult to predict. Rather than hire additional temporary,part-time employees,the A: I company expects to hire permanent,full-time employees. ' #of management positions 0: 2 ' A: I Average salary of management 0:$100,000 positions ' A: $40,000 #of professional positions 0: 2 ' A: I Average salary of professional positions 0:$35,000 ' A:$25,000 #of technical positions 0: 2 ' A: 2 Average salary of technical positions 0:$30,000 ' A:$25,000 #of skilled positions 0: 6 ' A: 2 #of unskilled positions 0: 0 ' A: 0 4 10. Certification for abandoned buildings: ' This project does not involve the renovation and reuse of an abandoned building. ' H. Local employment: Company officials believe that the majority of new employees will be ETA residents, as the company advertises new positions exclusively in the Salem Evening News. ' G& M Rossi Company, Inc. has the intention and capacity to achieve the anticipated level of new permanent, full-time jobs for local residents. This intention is based on the company's track record of growth. Since the Rossis purchased O'Rourke Brothers ' Memorials in 1981, annual sales have increased from $150,000 to $900,000 -- an increase of 500 percent. Company officials expect Absolute Environmental Company's sales to increase by 100 percent after they expand the facility. ' 12. Affirmative action statement: ' It is the policy and practice of G & M Rossi Company, Inc. to hire and promote that person determined to be the best qualified without regard to race, color, religion, sex, age, ' marital status, or national origin. 13. Agreement between the business and area banks: The business banks with Century Bank, which does participate in the Massachusetts ' Capital Access Program. 14. Economic benefits of project certification: ' Economic benefits to the company ' The benefits of project certification are described in greater detail in Section 6. In summary they are: ' to grow in a larger facility; • to increase productivity and sales and remain competitive; ' to invest in equipment and inventory; and • to receive investment tax credits and property tax benefits that will facilitate investment in facilities and equipment. 1 5 ' Economic benefits to the City of Salem ' The company's facility is strategically located near Salem's North River on North Street, one of the City's entrance corridors. The Rossis' investment in their businesses and their ' facility advances several economic development goals: • This project improves the appearance of one of Salem's entrance ' corridors. The City has launched several initiatives to improve the appearance of commercial and residential properties on Salem's entrance corridors. Business owners and residents must comply with restrictions and ' regulations regarding signage, fencing, curb cuts, storage areas,parking areas and landscaping. In addition the City now offers low-interest loans to . ' businesses located on Salem's gateways. Loans may be used only for improvements to the exterior of a commercial property. In May, the Rossis received a loan of$12,000 to help finance exterior improvements to the ' building at 73 North Street. • The Rossis' investment in their facility complements major public ' investment in infrastructure surrounding the North River area, including: 1. The Beverly-Salem Transportation Project: The $57 million Beverly- Salem Transportation Project, funded by the Massachusetts Highway Department, is the most ambitious transportation project in Salem's history and the largest infrastructure project in Massachusetts, after ' Boston's Central Artery/Third Harbor Tunnel project. The Project includes three major infrastructure improvements with a direct impact ' on the economic value and viability of properties in the area of the North River: ' Beverly-Salem Bridge: The new, fixed-span Beverly-Salem Bridge, set to open to traffic in August 1996, will replace an antiquated drawbridge and,together with the North River Parkway, will eliminate an historic ' obstacle into Salem from communities to the North. North River Parkway: The Highway Department will construct a two- lane road from the new Beverly-Salem Bridge, along the North River to Washington Street, doubling traffic capacity into downtown Salem. The Parkway will meet downtown Salem at Bridge and Washington ' Streets. Now in at the 25 percent design stage,the North River Parkway will open to traffic in 1998. ' Bridge Street Reconstruction: The final element of the Beverly-Salem Transportation Project, now in design, will widen Bridge Street from ' two lanes to four from Flint Street to Boston Street. The project will 6 include the development of a linear park to serve as a buffer of open ' space between Bridge Street on one side and the North River Canal and an adjacent industrial area on the other. 1 2. Salem Station: The MBTA's Salem Station off Bridge Street is the fourth busiest in the commuter rail system. The MBTA will construct a parking deck at the existing parking lot, doubling the number of spaces ' to 900. MBTA officials aim to select a design team by June 1996. The design phase will take six to nine months, and construction will take approximately one year. ' • The growth of O'Rourke Brothers Memorials and Absolute Environmental ' Company will create nine new full-time jobs in the next five years. • The addition to the facility will add $40,000 to the property's assessed value ' and increase annual tax revenue. • City officials hope that this project will send a signal to other businesses that ' the City is serious about improving its business climate and willing to use a variety of tools to promote growth. The City's success in using tax benefits to retain the manufacturers New England Wire Assemblies and Thermal Circuits and to attract investment by Ninety-Nine West, Inc. inspired a sharp increase in interest in Salem as a location for business. City officials expect that the certification of G& M Rossi Company will encourage other Salem business ' owners to seek assistance in improving and expanding their facilities. ,1 7 1 1 Supplemental Information ' I. Name of business intending to take advantage of state tax incentives: 1 G& M Rossi Company, Inc. Federal Tax Identification#: 04-2727890 ' 73 North Street Salem, MA 01970 (508) 744-0871 ' fax: (508) 741-2106 Gabriel P. Rossi, Jr., President (contact person) ' The organization is an S Corp/For profit Level of interest: 15% Investment Tax Credit ' 10% Abandoned Building Tax Deduction I Local real estate tax beneficiary ' 2. Names and addresses of officers and directors: ' Gabriel P. Rossi, Jr. Mary E. Rossetti-Rossi President Vice President& Clerk One Hunter Lane One Hunter Lane ' Hamilton, MA 01982 Hamilton, MA 01982 3. Names, addresses, phone numbers and contact persons for organizations which may own or control or be affiliated with the applicant organization: Not applicable. 4. Certificate of Good Standing: A Certificate of Good Tax Standing is attached with this application. 8 RESOLUTION ' APPROVING CERTIFIED PROJECT APPLICATION OF G & M Rossi Company, Inc. 1 WHEREAS, G & M Rossi Company, 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, G & M Rossi Company, 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 73 North Street, within the boundaries of the Salem Economic Opportunity Area. The legal description is as follows: ' "NORTHEASTERLY by the Road to North Street, as show on a plan hereinafter referred to, one hundred seven and 79/100 (100.79) feet; SOUTHEASTERLY by the way shown on said plan, one hundred (100) feet; SOUTHWESTERLY by Lot A, as shown on said plan, one hundred seven and 99/100 (107.99) feet; and NORTHWESTERLY by North River Canal, as shown on said plan, one hundred (100) feet. The above described premises is shown as Lot B on a plan of land entitled"Plan of Land in Salem, MA, Property of O'Rourke Brothers, Inc. Scale 1"=50' Dec. 9, 1980, Essex ' Survey Service, Inc., 47 Federal Street, Salem, MA recorded with Essex South District Registry of Deeds, Book 6806, Page 781 and containing 10,789 square feet, more or less, according to said plan." ' WHEREAS the City of Salem has agreed to offer G& M Rossi Company, Inc. a Tax Increment Financing Agreement; WHEREAS, G& M Rossi Company, Inc. will invest approximately $87,000 to construct an ' addition to the property and make a complete exterior renovation of the property, expand the company's operations in Salem, retain eight jobs in the City and create approximately nine new, permanent, full-time jobs. ' WHEREAS, the exterior renovation of the property at 73 North Street will substantially improve the aesthetic appearance of a property on one of the City's entrance corridors; NOW THEREFORE BE IT RESOLVED that the Salem City Council approves the Certified ' Project application of G & M Rossi Company, Inc., designating this project as a certified project for a period of five years, and forwards said application for certification to the Massachusetts Economic Assistance Coordinating Council for its approval and endorsement. Adopted this 27th day of June 1996 by the Salem ' City Council. /1 � Date July 15, 1996 ' Neil J. Harrington, Mayor ' Attest: Deborah E. Burkinshaw, City Clerk SEAL I 1 1 1 I FROM : O'ROURKE BROS. MEMORIALS SALEM PHONE NO. : 508 741 2016 Mar. 08 1996 12:27PM P1 commonwealth of Mas"Chusetts Department of Retrentte ' Ta payer Serace Certificate unit 215 First street ' CamOrfdge.MA 02142 February 29, 1996 ' G & M ROSSI COMPANY, INCORPORATED 73 NORTH ST. ' SALEM, MA 01970 A CERTIFICATE OF GOOD STANDING It is hereby certified by the Commissioner of Revenue of the Commonwealth of Massachusetts as of the above date, that the above named corporation is a domestic corporation organized in Massachusetts on December 4, 1980 and that said corporation is in good standing with respect to any and all returns due and taxes payable to the Commonwealth under General Laws, Chapter 62C, and the Statutes referred to in Section 2 thereof. This certificate does not certify the corporation's standing as to unemployment insurance taxes under G.L.Ch. 151 a or taxes under any other provisons or law. ' No. 29100 By �' 'Assiftant Chief. Customer Service Bureau THIS IS NOT A WAIVER OF LIEN ISSUED UNDER GENERAL LAWS, CHAPTER 62C, SECTION 52, ' AND CANNOT BE USED FOR SUCH PURPOSE. 5343 - 40192 ' Milehell Adams Anry A.PNler Commgsiorer Deputy Carr M"wer Massachusetts Economic Development Incentive Program 1 Tax Increment Financing Plan ' Location Economic Opportunity Area (EOA): Salem EOA Municipality: City of Salem ' Tax Increment Financing (TIF) Zone: Attached are: a map of the ETA, a map showing the general location of the proposed private project, a map indicating infrastructure improvements, and a zoning map. w ' Common description of TIF Zone: The proposed TIF Zone is located at 73 North Street in the Salem EOA. The tax parcel is Map 26, Lot 642. The legal description of this TIF ' Zone is: "The land and building in Salem, Essex County, Massachusetts, more particularly described as follows: ' NORTHEASTERLY by the Road to North Street, as show on a plan hereinafter referred to, one hundred seven and 79/100 (100.79) feet; SOUTHEASTERLY by the way shown on said plan, one hundred (100) feet; SOUTHWESTERLY by Lot A, as shown on said plan, one hundred seven and ' 99/100 (107.99) feet; and NORTHWESTERLY by North River Canal, as shown on said plan, one hundred (100) feet. ' The above described premises is shown as Lot B on a plan of land entitled "Plan of Land in Salem, Mass., Property of O'Rourke Brothers, Inc. Scale 1"=50' Dec. 9, 1980, Essex Survey Service, Inc., 47 Federal Street, Salem, Ma. recorded with ' Essex South District Registry of Deeds, Book 6806, Page 781 and containing 10,789 square feet, more or less, according to said plan." ' Narrative Description of TIF Zone -- Needs, Problems and Opportunities: Designation of this TIF Zone meets the needs of, solves problems for and creates opportunities for both G& M Rossi Company, Inc. and the City of Salem. The company does business as O'Rourke Brothers Memorials and 1 ,1 Absolute Environmental Company. O'Rourke Brothers Memorials was founded at 73 North Street in Salem in 1890. Today it operates in the same location, under the direction of Gabriel P. Rossi, Jr. and Mary E. ' Rossetti-Rossi, who purchased the business in 1981. Since that time the company has grown considerably. In 1981 annual sales were $150,000. Last year, annual sales topped $900,000 -- an increase of 500 percent. O'Rourke Brothers Memorials has six full-time employees. Company officials expect to add another full-time position next year; by the end of five years, they will add three additional full-time employees. ' Building on their success in managing O'Rourke Bothers Memorials, the Rossis founded a new business, Absolute Environmental Company, in 1992. The company specializes in ' commercial and residential sandblasting, building restoration and environmental cleaning. The business also operates out of 73 North Street. Absolute Environmental currently employs two full-time workers. Company officials expect to add another full- time position next year; by the end of five years, they expect to create four additional full- time jobs. Annual sales are approximately $100,000. ' Solving problems for and meeting needs of the company: In order to grow at its current location, the company must expand its 8,500 s.f. facility. Company officials will construct a 1,500 s.f. addition at a cost of$75,000. They also plan exterior improvements to the property at a cost of$12,000. These investments will provide needed shop space and storage space and will enhance the image of both businesses that operate at the ' facility. Creating opportunityfor the company: With expansion and physical improvements come ' increased productivity and increased sales. The addition will accommodate new equipment, allowing Absolute Environmental to serve new customers and boost sales by 100 percent in the first year, company officials estimate. By the end of five years, the ' company's annual sales will climb to $500,000 -- an increase of 400 percent over current levels. This year, O'Rourke Brothers' sales are estimated at $900,000. Next year, they are projected to rise to $1.1 million. By year five, annual sales will reach$1.5 million. Solving problems for and meeting the needs of the City of Salem: City officials have identified a need to improve both residential and commercial properties on entrance corridors. The tax benefits available through tax increment financing -- along with a low- interest loan from the City's Entrance Corridor Business Loan Program --will allow the ' company to direct resources toward improving the North Street facility. The City has also identified a need to retain growing businesses. The ability to offer tax increment financing enables Salem to compete with communities that offer better highway access and more land for new development. Creating opportunityfor the City of Salem: Designation of this TIF Zone and approval of ' this TIF Plan will help G& M Rossi Company, Inc. to grow in Salem, retaining jobs, ' 2 generating new jobs, expanding the City's tax base, improving the image of a property on ' an entrance corridor, and making Salem a more competitive and attractive location for business. All of these benefits are described in more detail in Section 3: TIF Zone & Economic Development. ' Property owners: The only property owner within the proposed TIF Zone is the ' G & M Realty Trust. Gabriel P. Rossi, Jr. and Mary E. Rossetti-Rossi are the trustees. Time ' The TIF Plan and TIF Zone described here will be in effect for a period of five years. TIF Zone & Economic Development ' Economic Opportunities and Economic Benefits to the Community: Approval of the proposed TIF Zone will create the following economic opportunities and benefits: ' Retains jobs: This project retains six jobs in Salem. Creates jobs: This project will create nine full-time jobs in the next five years. Generates tax revenue: Improvements to the facility will increase the assessed ' value from $190,000 to $230,000, increasing potential annual tax revenue from $6,504 to $7,590. tSends a pro-business message: City officials hope that this project will send a signal to other businesses that the City is serious about improving its business climate and willing to use a variety of tools to promote the revitalization of blighted areas. In their efforts to site new and expanding businesses, City officials actively market the City's success in using tax benefits and other incentives to ' retain the manufacturers Thermal Circuits and New England Wire Assemblies and recruit Ninety-Nine West, Inc. ' Proposed and potential land uses: The company will expand and renovate the facility for continued use by O'Rourke Brothers Memorials and Absolute Environmental ' Company. O'Rourke Brothers manufactures and sells cemetery memorials. Absolute Environmental is a sandblasting and environmental cleaning company. Zoning in the TIF Zone: The TIF Zone is in a Business Park Development Zoning District. ' 3 Hazardous Waste: No part of the proposed TIF Zone is a hazardous waste disposal site. ' TIF Zone projects Planned Private Project: G & M Rossi Company, Inc. will add an addition of 1,500 ' s.f. to its 8,500 s.f. facility and will make aesthetic improvements to the building. Budget for Project: The costs of completing the project are as follows: ITEM COST Expansion and renovations $75,000 Signage and exterior improvements $12,000 TOTAL $87,000 Relevant business plans: Time schedule for development: Company officials aim to complete the expansion by the end of the summer. Expected increases in job creation: O'Rourke Brothers Memorials has six full- time employees. Company officials expect to add another full-time position next ' year; by the end of five years,they will add three additional full-time employees. Absolute Environmental currently employs two full-time workers. Company officials expect to add another full-time position next year; by the end of five years they expect to create four additional full-time jobs. ' Estimates of tax revenue: The Chairman of Salem's Board of Assessors estimates the property's base value at $190,000 for a tax bill of$6,504. Expansion and improvements will add $40,000 in value, an increase of$1,086 in ' the company's annual tax bill. During the life of the five-year TIF agreement, the company will receive property tax exemptions of$3,320 and will pay property taxes of$36,631. Planned Public Projects: No public projects are planned in this TIF Zone. However, a number of public projects will affect access to the business and enhance its value: ' The Beverly-Salem Transportation Project: The $57 million Beverly- Salem Transportation Project, funded by the Massachusetts Highway Department, is the most ambitious transportation project in Salem's history and the largest ' 4 infrastructure project in Massachusetts, after Boston's Central Artery/Third Harbor Tunnel project. The Project includes three major infrastructure improvements with a direct impact on the economic value and viability of properties in the area of the North River: ' Beverly-Salem Bridge: The new, fixed-span Beverly-Salem Bridge, set to open to traffic in August 1996, will replace an antiquated drawbridge and, together with ' the North River Parkway, will eliminate an historic obstacle into Salem from communities to the North. ' North River Parkway: The Highway Department will construct a two-lane road from the new Beverly-Salem Bridge, along the North River to Washington Street, ' doubling traffic capacity into downtown Salem. The Parkway will meet downtown Salem at Bridge and Washington Streets. Now in at the 25 percent design stage, the North River Parkway will open to traffic in 1998. Bridge Street Reconstruction: The final element of the Beverly-Salem Transportation Project, now in design, will widen Bridge Street from two lanes to four from Flint Street to Boston Street. The project will include the development of a linear park to serve as a buffer of open space between Bridge Street on one side and the North River Canal and an adjacent industrial area on the other. Financing for TIF zone projects ' Anticipated Financing for expansion and exterior improvements: ' Source: Amount: Century Bank $ 75,000 City of Salem $ 12,000 Total $ 87,000 ' Anticipated Financing for Public Projects: Not Applicable ' Detailed Projection of Costs of Public Construction: Not Applicable Betterments: Betterments will not be used to finance any public or private projects ' during the life of the TIF Plan. ' Betterments or Special Assessments: Neither betterments nor special assessments are part of this TIF plan. ' 5 Describe how private projects will be financed: Financing for expansion and exterior improvements: ' Source: Amount: Century Bank $ 75,000 City of Salem $ 12,000 ' Total $ 87,000 ' TAX INCREMENT FINANCING ' Authorization to use TIF: The attached City Council resolution dated March 9, 1995 authorizes the City of Salem to use TIF in the Salem EOA. Also attached is a City Council resolution approving this TIF Plan for G & M Rossi Company, Inc. Amount of proposed tax increment exemptions from property taxes: As the attached spreadsheet shows, the Chairman of Salem's Board of Assessors estimates that property tax benefits will total approximately $3,320 over five years. Also, see the description of the proposed TIF Plan in part D of this section. Maximum percentage of public project costs that can be recovered through betterments or special assessments: Not applicable. ' TIF exemption from property taxes: The term of exemption is five years. The base valuation of the property that makes up the proposed TIF Zone is now approximately $190,000. Improvements to the facility will lead to a new valuation of approximately $230,000 The increment, therefore, is $40,000. The exemption plan works as follows: ' YEAR G& M Rossi Company. Inc. Pays 1 Only the base tax bill of$6,504. ' 2 10% of the increment, plus the base tax bill. 3 30% of the increment, plus the base tax bill. 4 50% of the increment, plus the base tax bill. ' 5 70% of the increment, plus the base tax bill. 6 100% of the increment, plus the base tax bill. ' As the attached spreadsheet shows, the City estimates the tax benefits to total approximately $3,320 over five years. ' The effective date of increment exemption is July 1, 1996 (Fiscal Year 1997) or upon approval by the Economic Assistance Coordinating Council, whichever is later. 6 Approval of TIF projects ' TIF projects are approved by the Salem City Council. The Mayor and his staff are ' responsible for negotiating TIF Plans and, after Council approval, executing those plans. Evidence of local approvals of the proposed TIF Zone and TIF Plan is provided here in ' the form of a resolution passed by the Salem City Council on Thursday, June 27, 1996. t w 1 1 1 1 ' 7 G & M ROSSI COMPANY, INC. ' D/B/A O'ROURKE BROTHERS MEMORIALS AND D/B/A ABSOLUTE ENVIRONMENTAL COMPANY PROPOSED FIVE-YEAR TAX INCREMENT FINANCING PLAN ' Value now $190,000 Value of the property before renovation Base tax bill $6,504 ' Value after renovation $230,000 Assumed Increment in value $40,000 Tax at full value $7,590 I ' Year 1 Year 2 Year 3 Tax at full value $7,590 Tax at full value $7,590 Tax at full value $7,590 ' Base tax bill $6,504 Base tax bill $6,504 Base tax bill $6,504 Company pays $6,504 Tax on increment $132 Tax on increment $396 Company saves $1,086 Company pays $6,636 Company pays $6,900 Company saves $954 Company saves $690 ' Company pays base tax bill only. Company pays taxes on 10%of Company pays taxes on 30%of increment plus base tax bill. increment plus base tax bill. ' Year 4 Year 5 Year 6 Tax at full value $7,590 Tax at full value $7,590 Tax at full value $7,590 Base tax bill $6,504 Base tax bill $6,504 ' Tax on increment $660 Tax on increment $924 Company pays $7,164 Company pays $7,428 Company saves $426 Company saves $162 Company pays taxes on 50%of Company pays taxes on 70% of Company pays taxes on the full increment plus base tax bill. increment plus base tax bill. value of the property. ' Total property tax exemptions over five years $3,320 Total property tax paid during TIF agreement $34,631 RESOLUTION ' AUTHORIZING THE USE OF TAX INCREMENT FINANCING IN THE SALEM ECONOMIC OPPORTUNITY AREA ' WHEREAS, the City of Salem is part of the area designated the Beverly & Salem Regional Economic Target Area and the Salem Economic Opportunity Area; ' WHEREAS, there is strong support for economic development and the use of Tax Increment ' Financing as an economic development tool to create jobs and encourage business expansion and relocation to the City of Salem; ' NOW THEREFORE BE IT RESOLVED by the City Council of the City of Salem that: (1) Tax Increment Financing may be used as a tool to encourage economic development within the Salem Economic Opportunity Area. (2) The Mayor is hereby authorized to execute and implement Tax Increment ' Financing agreements. ' Adopted this day of ".'/C CLQ _ 19by the Salem City Council at a regular City Council meeting with a quorum present. ' Neil J. Harrington, Mayor Date ATTEST: ' v iJ Ze X" ' Deborah E. Burkinshaw, City Clerk SEAL 1 RESOLUTION ' AUTHORIZING A TAX INCREMENT FINANCING AGREEMENT For G & M Rossi Company, 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 encourage business expansion in and ' relocation to the City of Salem; WHEREAS, there is strong support for using Tax Increment Financing to encourage the ' continued growth of G& M Rossi Company, Inc., in Salem and to encourage the expansion and improvement of the company's property at 73 North Street, and 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 I!I attached as Exhibit A, and made part of this Resolution. (2) The area to be designated as a Tax Increment Financing Zone is: ' That land situated in Salem in the County of Essex and Commonwealth of Massachusetts, ' bounded and described as follows: "NORTHEASTERLY by the Road to North Street, as show on a plan hereinafter ' referred to, one hundred seven and 79/100 (100.79) feet; SOUTHEASTERLY by the way shown on said plan, one hundred (100) feet; ' SOUTHWESTERLY by Lot A, as shown on said plan, one hundred seven and 99/100 (107.99) feet; and NORTHWESTERLY by North River Canal, as shown on said plan, one hundred (100) feet. ' The above described premises is shown as Lot B on a plan of land entitled "Plan of Land ' in Salem, MA, Property of O'Rourke Brothers, Inc. Scale 1"=50' Dec. 9, 1980, Essex Survey Service, Inc., 47 Federal Street, Salem, MA recorded with Essex South District Registry of Deeds, Book 6806, Page 781 and containing 10,789 square feet, more or less, ' according to said plan." ' (3) A map of the Tax Increment Financing Zone is hereby attached as Exhibit B and made part of this Resolution. I ' (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 the date which the Tax Increment Financing Agreement is approved by the Massachusetts Economic ' Assistance Coordinating Council or July 1, 1996 (Fiscal Year 1997), whichever is later. (7) The Mayor is hereby authorized to execute and implement the Tax Increment Financing ' Agreement. Adopted this 27 day of Tune 19 26 by the Salem City Council at a regular City Council meeting with a quorum present. T„1v 15, 1996 ' Neil J. Mayor Date ' ATTEST: ' Deborah E. Burkinshaw, City Clerk SEAL EXHIBIT A: Tax Increment Financing Agreement EXHIBIT B: Map of Tax Increment Financing Zone 1 1 1 1 TAX INCREMENT FINANCING AGREEMENT ' CITY OF SALEM, MASSACHUSETTS ' and G & M Rossi Company, Inc. ' This agreement is made this=day of July, 1996, 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,Neil J. Harrington, (hereinafter called "the CITY"), and G& M Rossi Company, Inc. (d/b/a/ O'Rourke Brothers Memorials and d/b/a Absolute Cleaning Company), a Massachusetts corporation with a principal place of business at 73 North Street in Salem, Massachusetts, 01970 (hereinafter called "the COMPANY") . This Agreement will take effect as of July 1, 1996 (Fiscal Year 1997) or upon approval by the Massachusetts Economic a ' Assistance Coordinating Council, whichever is later. WHEREAS, the COMPANY wishes to expand its operations at its facility at 73 North Street in tSalem; and WHEREAS, the CITY is willing to grant tax concessions in return for guarantee of exterior ' improvements to the property, construction of an addition on the property, the expansion of business operations in Salem, and the creation of employment opportunities for local ' workers; and WHEREAS, the Salem City Council resolved on November 9. 1995 to allow the use of Tax ' Increment Financing as a tool to encourage economic development within the Salem Economic Opportunity Area; and ' WHEREAS, the Salem City Council resolved on June 27, 1996 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 make exterior renovations to the facility and expand the facility at 73 North Street in Salem. "The FACILITY" as used herein means a building containing approximately 8,500 square feet plus site improvements. ' 2. During the life of this agreement, if the COMPANY decides to sell the FACILITY or the ' business or to otherwise transfer control of the FACILITY or business and/or operations thereof, the COMPANY shall give the CITY at least three months notice of said sale or transfer. Said notice shall be given by certified mail, return receipt requested, to the ' Mayor, City Hall, 93 Washington Street, Salem, Massachusetts, 01970. 1 ° 3. The COMPANY shall make good faith efforts to use qualified local contractors for ' renovation and development of the FACILITY. The COMPANY shall make good faith efforts to use qualified local contractors for future repairs and renovations to the FACILITY. ' 4. Subject to applicable law and assuming equal qualifications, the COMPANY will afford priority to residents of the Beverly & Salem Regional Economic Target Area in its hiring ' of new employees. ' B. THE CITY'S OBLIGATIONS ' I. The CITY shall grant a tax increment financing exemption to the COMPANY in accordance with Massachusetts General Laws, Chapter A, Section 3E, Chapter 40, Section 59, and Chapter 59, Section 5. Said exemption shall be granted on the ' improvements to the FACILITY. Said exemption shall be valid for a period of five (5) years, beginning with fiscal year 1997 (July 1, 1996) and ending with fiscal year 2002. During each year of this agreement, the company will pay taxes based on the current ' value of the FACILITY as of the date of this agreement (the base tax bill) and on that portion of the value of the FACILITY which is not exempted under the agreement. ' The exemption schedule on the value of the FACILITY works as follows: For the first year, the COMPANY will pay only the base tax bill and will be granted an exemption of ' 100 percent of the full value of improvements to the FACILITY. The full value of improvements to the FACILITY is hereinafter called "the INCREMENT". In year two, the COMPANY will pay taxes on 10%of the full value of the INCREMENT, plus the ' base tax bill. In year three, the COMPANY will pay taxes on 30%of the full value of the INCREMENT, plus the base tax bill. In year four, the COMPANY will pay taxes on 50% of the INCREMENT, plus the base tax bill. In year five, the COMPANY will pay ' taxes on 70% 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. 1 1 Executed as a sealed instrument on the day and year first above written. CITY OF SALEM G & M Rossi Company, Inc. tNeil J. Harri gton, Mayo Gabriel P. 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ON EILC 1LRM M MT MAS CT1 LLET,SALEM MA or-[ t The Massachusetts Economic Development Incentive Program Certified Project Application Applicant Information I. Name and address of business submitting this application: G & M Rossi Company, Inc. d/b/a O'Rourke Brothers Memorials d/b/a Absolute Environmental Cleaning 73 North Street Salem, MA 01970 Fiscal year end is: September 30 2. Name and address of project (if different from above): See above. 3. Location of ETA: Salem 4. Location of EOA: Salem S. Authorization: We, Gabriel P. Rossi, Jr. and Mary E. Rossetti-Rossi, of G & M Rossi Company, Inc., the business 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. We understand that the information provided within this application shall be binding for the duratiollpf the project certification. Gabriel P. Rossi, Jr., Pfesident (Date) Mary ossetti-Rossi, Vice-President Date) 1 b. Nature and purpose of project: Description of company Representatives of G& M Rossi Company, Inc. seek Certified Project designation for the company, which does business as O'Rourke Brothers Memorials and Absolute Environmental Company. O'Rourke Brothers Memorials was founded at 73 North Street in Salem in 1890. Today it operates in the same location, under the direction of Gabriel P. Rossi, Jr. and Mary E. Rossetti-Rossi, who purchased the business in 1981. Since that time the company has grown considerably. In 1981 annual sales were $150,000. Last year, annual sales topped $900,000 -- an increase of 500 percent. O'Rourke Brothers Memorials has six full-time employees. Company officials expect to add another full-time position next year; by the end of five years, they will add three additional full-time employees. Building on their success in managing O'Rourke Bothers Memorials, the Rossis founded a new business, Absolute Environmental Company, in 1992. The company specializes in commercial and residential sandblasting, building restoration and environmental cleaning. The business also operates out of 73 North Street. Absolute Environmental currently employs two full-time workers. Company officials expect to add another full- time position next year; by the end of five years,they expect to create four additional full- time jobs. Annual sales are approximately $100,000. The Expansion Plan Company officials will construct a 1,500 s.f. addition to their 8,500 s.f. facility at a cost of$75,000. They also plan exterior improvements to the property at a cost of$12,000. These investments and Certified Project designation will allow the companies to accomplish several goals: • To grow in a larger facility: The companies' current facility cannot accommodate future growth. The addition will house new sandblasting and painting booths, and will be used for storage and general shop space. • To increase productivity and sales: The addition will accommodate new equipment, allowing Absolute Environmental to serve new customers and increase sales by 100 percent in the first year, company officials estimate. By the end of five years, the company's annual sales will climb to $500,000 -- an increase of 400 percent over current levels. This year, O'Rourke Brothers' sales are estimated at $900,000. Next year, sales are projected to rise to $1.1 million. By year five, annual sales will reach$1.5 million. 2 • To invest in equipment and inventory: During the next several years, company officials expect to invest in state-of-the art equipment. The local and State tax benefits available through the Economic Development Incentive Program will assist them in making those investments. This year, Absolute Environmental Company will invest in several pieces of new sandblasting equipment, totaling $20,000. By the end of five years,they expect to invest an additional $40,000 in capital equipment. O'Rourke Brothers will spend $10,000 on new equipment next year. By the end of five years,they will invest another $30,000 in new equipment, such as a forklift and blasting equipment. G & M Rossi Company, Inc. Growth Projections Current Future Current Projected New Company Employment Employment Sales Sales Investment G&M Rossi Company, $75,000--construction Inc. $8,000--exterior renovation O'Rourke Brothers 6 In year I: 1 $900,000 In year I: $I.Im Year 1:$10,000 in new equipment Memorials By year 5: 3 By year 5:$1.5m Year 5:$30,000 in new equipment Total:4 Total: $40,000 Absolute 2 In year 1: 1 $100,000 In year I: $200,000 In year I: $20,000 in new equipment Environmental By year 5: 4 By year 5: $500,000 By year 5:$40,000 in new equipment Company Total:5 Total: $60,000 7. Is this business new to Massachusetts? This business is not new to Massachusetts. The existing facilities are at 73 North Street in Salem. This project will not require the closing or consolidation of any Massachusetts facilities. 8. Is this project an expansion of an existing business? This project represents the expansion of an existing business at its current location, 73 North Street in Salem. 9. Job creation Please see the chart below. 3 Work Force Analysis and job Creation Plan Key: 0=O'Rourke Brothers Memorials A=Absolute Environmental Com an Current TOTAL projected NEWJOBS NEW JOBS NEWJOBS NEW JOBS NEWJOBS employment new permanent jobs Year 1,1996 Year 2, 1991 Year 3, 1998 Year 4,1999 Year S, 2000 #employees at certified project 0: 6 facility A: 2 Total employees at other sites in Mass. #of employees at certified project 0: 1 location who live in the ETA A: I #of permanent,full-time employees 0: 6 0: 4 0: 1 0: 3 A: 2 A: S A: I A: 4 #of temporary,full-time employees 0: 0 A: 0 #of temporary part-time employees 0: 2 This is seasonal employment and difficult to predict. Rather than hire additional temporary,part-time employees,the A: I company expects to hire permanent,full-time employees. #of management positions 0: 2 A: I Average salary of management 0:$100,000 positions A: $40,000 #of professional positions 0: 2 A: I Average salary of professional positions 0:$35,000 A:$25,000 #of technical positions 0: 2 A: 2 Average salary of technical positions 0:$30,000 A:$25,000 #of skilled positions 0: 6 A: 2 #of unskilled positions 0: 0 A: 0 4 10. Certification for abandoned buildings: This project does not involve the renovation and reuse of an abandoned building. 11. Local employment: Company officials believe that the majority of new employees will be ETA residents, as the company advertises new positions exclusively in the Salem Evening News. G & M Rossi Company, Inc. has the intention and capacity to achieve the anticipated level of new permanent, full-time jobs for local residents. This intention is based on the company's track record of growth. Since the Rossis purchased O'Rourke Brothers Memorials in 1981, annual sales have increased from $150,000 to $900,000 -- an increase of 500 percent. Company officials expect Absolute Environmental Company's sales to increase by 100 percent after they expand the facility. 12. Affirmative action statement: It is the policy and practice of G& M Rossi Company, Inc. to hire and promote that person determined to be the best qualified without regard to race, color, religion, sex, age, marital status, or national origin. 13. Agreement between the business and area banks: The business banks with Century Bank, which does participate in the Massachusetts Capital Access Program. 14. Economic benefits of project certification: Economic benefits to the company The benefits of project certification are described in greater detail in Section 6. In summary they are: • to grow in a larger facility; • to increase productivity and sales and remain competitive; • to invest in equipment and inventory; and • to receive investment tax credits and property tax benefits that will facilitate investment in facilities and equipment. 5 Economic benefits to the City of Salem The company's facility is strategically located near Salem's North River on North Street, one of the City's entrance corridors. The Rossis' investment in their businesses and their facility advances several economic development goals: • This project improves the appearance of one of Salem's entrance corridors. The City has launched several initiatives to improve the appearance of commercial and residential properties on Salem's entrance corridors. Business owners and residents must comply with restrictions and regulations regarding signage, fencing, curb cuts, storage areas, parking areas and landscaping. In addition the City now offers low-interest loans to businesses located on Salem's gateways. Loans may be used only for improvements to the exterior of a commercial property. In May, the Rossis received a loan of$12,000 to help finance exterior improvements to the building at 73 North Street. • The Rossis' investment in their facility complements major public investment in infrastructure surrounding the North River area, including: 1. The Beverly-Salem Transportation Project: The $57 million Beverly- Salem Transportation Project, funded by the Massachusetts Highway Department, is the most ambitious transportation project in Salem's history and the largest infrastructure project in Massachusetts, after Boston's Central Artery/Third Harbor Tunnel project. The Project includes three major infrastructure improvements with a direct impact on the economic value and viability of properties in the area of the North River: Beverly-Salem Bridge: The new, fixed-span Beverly-Salem Bridge, set to open to traffic in August 1996, will replace an antiquated drawbridge and, together with the North River Parkway, will eliminate an historic obstacle into Salem from communities to the North. North River Parkway: The Highway Department will construct a two- lane road from the new Beverly-Salem Bridge, along the North River to Washington Street, doubling traffic capacity into downtown Salem. The Parkway will meet downtown Salem at Bridge and Washington Streets. Now in at the 25 percent design stage,the North River Parkway will open to traffic in 1998. Bridge Street Reconstruction: The final element of the Beverly-Salem Transportation Project, now in design, will widen Bridge Street from two lanes to four from Flint Street to Boston Street. The project will 6 include the development of a linear park to serve as a buffer of open space between Bridge Street on one side and the North River Canal and an adjacent industrial area on the other. 2. Salem Station: The MBTA's Salem Station off Bridge Street is the fourth busiest in the commuter rail system. The MBTA will construct a parking deck at the existing parking lot, doubling the number of spaces to 900. MBTA officials aim to select a design team by June 1996. The design phase will take six to nine months, and construction will take approximately one year. • The growth of O'Rourke Brothers Memorials and Absolute Environmental Company will create nine new full-time jobs in the next five years. • The addition to the facility will add $40,000 to the property's assessed value and increase annual tax revenue. • City officials hope that this project will send a signal to other businesses that the City is serious about improving its business climate and willing to use a variety of tools to promote growth. The City's success in using tax benefits to retain the manufacturers New England Wire Assemblies and Thermal Circuits and to attract investment by Ninety-Nine West, Inc. inspired a sharp increase in interest in Salem as a location for business. City officials expect that the certification of G& M Rossi Company will encourage other Salem business owners to seek assistance in improving and expanding their facilities. 7 Supplemental Information I. Name of business intending to take advantage of state tax incentives: G& M Rossi Company, Inc. Federal Tax Identification#: 04-2727890 73 North Street Salem, MA 01970 (508) 744-0871 fax: (508) 741-2106 Gabriel P. Rossi, Jr., President(contact person) The organization is an S Corp/For profit Level of interest: d 5% Investment Tax Credit 10% Abandoned Building Tax Deduction I Local real estate tax beneficiary 2. Names and addresses of officers and directors: Gabriel P. Rossi, Jr. Mary E. Rossetti-Rossi President Vice President& Clerk One Hunter Lane One Hunter Lane Hamilton, MA 01982 Hamilton, MA 01982 3. Names, addresses, phone numbers and contact persons for organizations which may own or control or be affiliated with the applicant organization: Not applicable. 4. Certificate of Good Standing: A Certificate of Good Tax Standing is attached with this application. 8 G & M Rossi Company, Inc. Application for Certified Project Designation Tax Increment Financing Plan rGABRIEL P. RO-S AM O� r A 7 ROURKE BROS. 1' 111 1-0 1 L - O'Rourke Brothers Memorials has operated at 73 North Street in Salem since 1890. In 1981, G&MRossi Company purchased the business. In 1992,company officials founded Absolute Environmental Company at the same facility. Both ventures have proven successful,and an expanded facility is needed to ensure continued growth. Presented to: The Economic Assistance Coordinating Council Presented by: The City of Salem Neil J. Harrington, Mayor and G & M Rossi Company, Inc. July 19, 1996 W m LU W J Q N i J W 7 � e 0 0 Z a 0 m � m D 0 U Sti a +' 3 1 •.. �c CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT WILLIAM E. LUSTER ONE SALEM GREEN City Planner 01970 Vis,j (508) 745.9595, EXT. 311 FAX (508) 7445918 TO: Gabe Rossi FROM: Michelle Cammarat<,/ RE: APPLICATION FOR TAX BENEFITS DATE: July 16, 1996 Your application for tax benefits is due to the State's Economic Assistance Coordinating Council on Friday, and I am putting the finishing touches on the application materials. A few items need your signature: Tax Increment Financing Agreement: This specifies the way the property tax benefits will work. Please sign page three. Letter of Commitment: This is required to introduce your application. I have drafted a letter that is similar to those we have sent in the past. If it is okay as is, please copy it onto your stationery. If not, please make whatever changes you think are necessary. Certified Project Application: This application gives information on your company and explains your plans for the future. The first page should be fine as it is --please sign and date the first page. (Your wife's signature is also needed.) Please review the rest of the application and note any changes or improvements that are necessary. After you have reviewed and signed everything, please give me a call. I plan to finish the applications on Wednesday and send them via overnight delivery on Thursday. Thanks for your cooperation. To: Gabe Rossi Y Fax#: 741-2106 ' Re: Application for State and Local Tax Benefits Date: May 22, 1996 Pages: Wi cludingthiscoversheet. k'r Gabe -- On Thursday night, the City Council will consider granting tax benefits to your bush . Council approval, I will forward the application to the State board for review. A draft oSLi I application is attached. I need your help to fill in the blanks. Please fill in the information where you see a Please fill in the tables on pages 3 and 4. Please estimate sales growth and new employment over the next five years. It is okay to estimate or make projections based on current levels of sales and employment. The more we can provide a favorable impression of growth, the better the application. Please let me know how much you plan to invest in new equipment for either company for the next five years. I know you want to buy new equipment this year, but what about in the future? If I can finish this application and get it to the State board by the end of next week, they may review it at their June meeting. If not, we will have to wait until their July meeting. Thanks for your help. l � From the desk of... Michelle Cammarata Assistant Director for Economic Development I City of Salem Planning Department One Salem Green Salem, MA 01970 (508)745-9595,extension 311 Fax: (508)740-0404 G & M Rossi Company, Inc. Growth Projections Current Future Current Projected New Company Employment Employment sales sales investment G&M Rossi Company, $75,000--construction Inc. $?,000--exterior renovation ja O'Rourke Brothers Next year? j $900,000 Next yearn Are any purchases of new 3 Memorials In S years? In S years': �r planned? ve year one estimates and,if j� possible,estimates for future years. Absolute ? 100,000 2,;— Next year . $ Next year . $ 0 000 in new equipment ment in year one. Environmental Co. 2 In S years? In 5 years 9_90 Estimates for future years? 40k � — lt7k 7. Is this business new to Massachusetts? S'' 30 k This business is not new to Massachusetts. The existing facilities are at 73 North Street in Salem. This project will not require the closing or consolidation of any Massachusetts facilities. 8. Is this project an expansion of an existing business? This project represents the expansion of an existing business at its current location, 73 North Street in Salem. 9. job Creation Please see the chart below. 3 Work Force Analysis and Job Creation Plan Key: 0=O'Rourke Brothers Memorials A=Absolute Environmental Company Current TOTAL projected NEW JOBS NEWJOBS NEW JOBS NEWJOBS NEWJOBS employment new permanent jobs Year I,1996 Year 1, 1997 Year 3, 1998 Year 4, 1999 Year S, 2000 #employees at certified project 0: facility A: 2 Total employees at other sites in Mass. #of employeeso Itcertified project 0: location who live in the ETA A: #of permanent,full-time employees 0: 0: / 0: 0: 0: 0: 0: A: A: A: A: A: A: A: #of temporary,full-time employees 0: 0: 0: 0: 0: 0: 0: A: A: A: A: A: A: A: #of temporary part-time employees 0: a' 0: 0: 0: 0: 0: 0: �0D A: ` A: A: A: A: A: A: #of management positions 0: A: Average salary of management 0: + ! positions A: U #of professional positions 0: oZ A: Average salary of professional positions 0: �K A: o? #of technical positions 0: A: Average salary of technical positions 0: 20 A: a'S #of skilled positions old #of unsk le tions A: 4