GROOM CONSTRUCTION REQUEST FOR TIF GROOM
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RECEIVED
lopMAR 0 6 2007
DEPT TRUC PICOMMUNITY DEVELING PMENT
"S/NCE 1979"
General Building Contractors
March 2,2007
Tania Hartford
Economic Development Program Director
City of Salem
120 Washington Street
Salem,MA 01970
Dear Tania Hartford:
After over twenty years in our current location in Swampscott, Groom Construction is
moving operations to Salem Commerce Park at 96 Swampscott Road in Salem. This move
represents a large expansion that involves a $1.7 million investment and an anticipated job
growth of 28 full-time employees over five years. Due to the large investment, we are
looking for assistance from the City of Salem through a Tax Increment Financing ('TIF)
Agreement. We hope you will support our application for this assistance.
Groom Construction was established in 1979 in Swampscott. The company serves both the
residential and commercial construction markets. Clients include national retailers (Best Buy,
Home Depot), nonprofit organizations (YMCA, Salvation Army), local developers, and the
Commonwealth of Massachusetts. Since 1998, the full time staff has increased by fifty
employees and the company has had a significant positive impact on local subcontractors
and suppliers.
Groom Construction has a history of adding jobs through reinvesting profits into the
Company to diversify its services. The company has experienced strong growth over the last
five years. With the addition of a second company, Groom Energy Solutions, LLC (formed
in 2005 to serve the energy needs of commercial clients) it has become difficult to operate at
our current location. We currently employ seventy-one people fulkime, and by moving from
our 5,000 square foot facility to a new expanded facility in Salem we expect to be able to
expand our work capacity and employment base by twenty-eight employees in the next five
years.
We are excited about our move to Salem. We feel that this move will be good for us as well
as the City of Salem. It will allow us the opportunity to expand our operations and continue
to grow as a company. We will be investing a great deal of money into the City and will be
bringing a number of jobs to the city with the intention of growing that number over the
GROOM CONSTRUCTION CO., INC. 96 SWAMPSCOTT ROAD, SALEM, MA 01970
TELEPHONE(781) 592-3135 FACSIMILE(781) 593-1480 WEBSITE: www.Groomco.com
next five years. The move also allows us to be a part of the renovation of 96 Swampscott
Road, a once abandoned building, and help to continue the expansion of small commercial
and industrial businesses in that area of Salem
Again, I hope that you will give our application for a TIF a positive vote. This relief will
help us as we make our move to Salem and continue our expansion over the next five years.
Please feel free to contact me at (781) 592-3135 should you have any questions or need more
information about our application. Thank you for your consideration.
Sincerely,
Thomas Groom
President
cc: Mayor Kimberley Driscoll
Cheryl LaPointe, City Clerk
Tania Hartford,Economic Development Program Director
RECEIVE®
• NOV 2 S 2006
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DEPT.OF PLANNINGSTRTrcvoi� COMMUNITYDEVELOPMENT
U
"SINCE 1979"
November 21, 2006 General Building Contractors
Hon. Mayor Kimberly Driscoll
City of Salem
City Hall
93 Washington Street
Salem, MA 01970
Dear Mayor Driscoll,
I am writing to you in my capacity as president of Groom Construction Co., Inc. to once
again notify the City of Salem of our interest in participating in the MA Economic
Development Incentive Programs and related fiscal incentives that may be available to
our business.
Groom Construction has been in business since 1979 and was incorporated in
Massachusetts in 1983. Our subsidiary, Groom Energy Solutions was formed in 2005 to
serve the energy needs of manufacturing and warehouse-based clients. We currently
employ a combined 98 persons, and by moving from our 5,000 sq. ft. facility in
Swampscott, MA, to a new 27,000 sq. ft. facility at 96 Swampscott Rd. in Salem we
expect to be able to expand our work capacity and employment base significantly in the
coming years.
As you may know, we were in contact with Tania Hartford of the City's Economic
Development team on April 30`h of this year regarding our interest in participating in
these programs, and, it remains our hope,that the City of Salem will continue to assist us
in our efforts. We welcome the opportunity to have yourself and/or representatives of
your team to visit our existing facility as well as our planned new facility to get a better
understsnding of our operation and our goals.
I look forward to hearing from you on this matter.
Yours tr ly,
Thomas Groom, president
Groom Construction Co., Inc.
Cc: Peter Milano
Tania Hartford
GROOM CONSTRUCTION CO., INC. 324 ESSEX STREET, SWAMPSCOTT, MA 01907
TELEPHONE (781) 592-3135 FACSIMILE (781) 593-1480 WEBSITE: www.Groomco.com
UC
"SINCE 1979"
General Building Contractors
March 12, 2007
Tania Hartford
Economic Development Program Director
City of Salem
Department of Planning and Community Development
120 Washington Street
Salem, MA 01970
96 SWAMPSCOTT RD
Dear Tania,
Groom Realty purchased the property in June 2006, with the project starting soon after
the closing. The project is expected to be fully completed by July 2007.
We are riot currently participating in any other federal or state or economic development
plans except the TIF and, assuming passage of the TIF,the EOA ITC.
Enclosed are the following requested documents pertaining to our TIF Application:
• Project floor design & elevations
• Letter of commitment for the project from Danversbank
• Project budget with supporting data. Note much of the work was self-performed by
Groom Construction; we have included invoices where applicable.
Please contact me if you need additional information.
Sincer ly,
Mark Beirnato
GROOM CONSTRUCTION CO.,INC. 96 SWAMPSCOTT ROAD, SALEM, MA 01970
TELEPHONE(781) 592-3135 FACSIMILE(781) 593-1480 WEBSITE: www.Groomco.com
Due Diligence Letter
Groom Construction Co, Inc.
Groom Construction was established in 1979 by Tom and David Groom both of
Swampscott, MA. The company serves both the residential and commercial construction
markets. Clients include national retailers (Best Buy, Home Depot), nonprofit
organizations (YMCA, Salvation Army), local developers, and the Commonwealth of
Massachusetts.
Groom Construction has been located at 324 Essex Street, Swampscott, MA since 1984.
The building has approximately 5,000 square feet of office/storage space and a small yard
used for the storage of equipment and supplies used in the business. There is no off street
parking.
The company has experienced strong growth over the last five years and with the addition
of a sister company (Groom Energy Solutions, LLC), it has become difficult to operate in
the Essex Street space.
Management has been actively looking for a new location since 2004 and was open to
either building a new location or purchasing an existing one. Following are the general
requirements of the new space:
• Office space in range of 10-12,000 square feet
• Off street parking to accommodate a minimum of twenty five vehicles
• Contractor storage space in excess of 3-5,000 square feet
• Salem/Swampscott location
Management looked at several sites during the 2004-05 period, most that could not meet
the company's general requirements.
An offer was submitted for a property on Highland Avenue in Salem, MA in early 2006.
After agreeing to terms with Groom Construction, the owner sold the property to another
buyer.
In June 2006, management completed a deal to purchase Unit#6 of the Salem Commerce
Park located at 96 Swampscott Rd, Salem, MA. The property is currently being built-out
to meet management's specifications.
I, Thomas Groom, as a representative for both Groom Construction and Groom Realty
LLC, hereby certify that this statement is true and accurate.
Thomas Groom Date
02/15/2007 15:58 7815931480 GROOM CONSTRUCTION PAGE 01/02
- GROOM CONSTRUCT IONCOMPANX INC .
324 ESSEX STREET
SWAMPSCOTT , MA .
PHONE 781. 592 . 3135
FAX 781 - 593 - 1480
FACSIMILE TRANSMITTAL SHEET
TO:
Ona N(Aftjraak FROM: V%a GRov-A
COMPANY: DATE: a ` %5l U,
FAX NO. q-1`6 TOTAL NO.OF PAGES INCLUDING OOVER:
PHONE NUMDER: pI. 9r
RE: YOUR REFERENCE NUMEJER J
❑URGENT X POR RPvi):w ❑PLEASE COMMENT ❑PLEASE REPLY ❑PLEASE RECYCLE
NOTES/COMMENTS ..
Should you have any problems with this transmissimy Please call(781)592.304
02/15/2007 15:58 7815931480 GROOM CONSTRUCTION PAGE 02/02
Certified Project Application —Page 1
The Massachusetts Economic Development Incentive Program
CERTIFIED PROJECT APPLICATION
APPLICANT INFORMATION
1. Name and address of business(es) submitting this application (please list fiscal
year and for each business):
Groom Really,LLC -
Groom Construction Co.,Inc
324 Essex Street
Swampscott, MA 019D7
VE 12/31
2. Name and address of project(if different from above):
Salem Commerce Park
86 Swampscott Road/unit 6
Salem,MA 01970
3. Location of ETA: Salem,MA
4. Location of EOA: Salem,MA
S. Authorization: I/We, (print) David Groom of the
business(es) applying for Certified Project designation, hereby
certify that the information within this application is true and
accurate, and reflects the project's intentions for job creation and
investment. Me understand that the information provided
with' this application shall be binding for the duration of the
procertification
3-
( gnature) (Date)
(Signature) (Date)
(Additional Signatures, if necessary) (Date)
I
Tania Hartford
From: Tania Hartford
Sent: Monday, February 12, 2007 2:17 PM
To: Mark Bernato (E-mail)
Subject: TIF Application
Hi Mark,
I wanted to check in with you following up on our meeting with the Mayor to see whether you or Dave had any questions
or concerns regarding the spread sheet we left with you.
I am also trying to finalize the TIF Applications and package them for the City Council meeting next week. As part of the
application, I need a Certificate of Good Standing from the Commonwealth for the company and a "due diligence" letter
which outlines what efforts you have made to stay in the current community and a subsequent site search. If you need
more guidance on that letter, I'll check in with Peter Milano from MOBD to find out if they have a template out there for
you to use, as this is their requirement. If I have any other comments on your application, I'll let you know later this
week.
Please give me a call if you have any questions or need more information.
Thank you,
Tania
Tania Hartford, Economic Development Program Director
City of Salem, Dept. of Planning and Community Development
120 Washington Street, Salem, MA 01970
Phone: 978/619-5685 - Fax: 978/740-0404
www.salem.com
1
Page 1 of 2
Tania Hartford
From: Kim Driscoll
Sent: Monday, October 23, 2006 4:58 PM
To: Tania Hartford k
Cc: Lynn Duncan `�5 \ \�
Subject: Groom Construction
Tania: Can you reach out to Tom Groom regarding the message below. Please feel free to join us on the 3rd, if
you're able. Thanks.
Kim
-----Original Message-----
From: Kim Driscoll
Sent: Monday, October 23, 2006 4:56 PM
To: Tom Groom'
Cc: Dave Groom; Jonathan Gibbs
Subject: RE:
Hi Tom: Good to hear from you and please accept my apologies for taking this long to respond to your message.
I would like an opportunity to meet with you to discuss your proposed move to Salem and ways we may be able to
assist in that effort. My schedule leading up to Halloween is a bit hectic, to say the least, but I am available on
Friday, Nov. 3rd at 11:30am, if that time works for you. In the meantime, I am going to forward your contact
information to Tania Hartford, the City's Economic Development Planner. Tania has been working with a number
of businesses at 96 Swampscott Road on potential financing tools and should be able to reach out to you prior to
the 3rd to get a handle on how best we can help.
Thanks for contacting me and please let me know if the 3rd works for your schedule.
Best,
Kim Driscoll
-----Original Message-----
From: Tom Groom [mailto:tgroom@groomco.com]
Sent: Friday, October 13, 2006 11:04 AM
To: Kim Driscoll
Cc: Dave Groom; Jonathan Gibbs
Subject:
Dear Mayor Driscoll,
My name is Tom Groom. I am the president of Groom Construction Co., Inc. in Swampscott.
As you may know, we have purchased one of the industrial condominiums at 96 Swampscott Rd. in Salem
from Hilary Rockett and Joe Thebert. At this time, I am in the process of developing my unit and had
been intent on moving our entire business to Salem. We currently employ 94 persons on a full time basis.
Some office personnel and many field employees.
In recent months we have seen some signs of economic slowdown in the building industry, especially with
regard to our residential division. This slowdown is giving me cause to step back and evaluate our move
and to try and carefully assess all of out up-front and potential recurring costs from an affordability
standpoint as we move forward with the project.
10/26/2006
Page 2 of 2
I/ Would it be possible to arrange a meeting with you and possibly your economic team sometime in the near
future so that we might get a feel for where I should expect to be with regard to real estste taxes.
I am becoming increasingly concerned that the over-development of this former warehouse space could
result in construction costs and annual expenses that don't make economic sense for my business. I have
been in the same location in Swampscott since 1982 and enjoy the luxury of no mortgage. So far I have
been unable to garner interest in the sale of my building, and this move is becoming a slightly bigger
decision that I had initially anticipated.
Any time you or your team could give me in the upcoming weeks that could help me to further evaluate my
investment would be greatly appreciated. I look forward to your response.
Sincerely,
Tom Groom
office: (781)592-3135 x-202
cell: (617)212-8510
e-mail: tom@groomco.com
10/26/2006 ��
Tania Hartford
From: Tania Hartford
Sent: Wednesday, November 08, 2006 12:50 PM
To: 'dave @ g roomco.com'
Subject: TIF Information - 96 Swampscott Rd.
Dave,
It was nice to meet you on Friday. To follow-up on that meeting and my voice message to you, I am attaching a copy of
the letter that Doyle Sailmakers sent to the Mayor stating their intent to apply for assistance through the program. You
need to get a similar to the Mayor ASAP. Please let me know if you have any questions in putting this together.
I set-up a tentative meeting with Peter Milano from the MA Office of Business Development to discuss the TIF Application
with you and walk you through any questions you might have about the state benefits available to you. This meeting is
scheduled for Tuesday, November 21 at 8:45am here at 120 Washington Street on the third floor. It would be helpful if
you had your accountant with you as they will most likely be helping you with your application.
As the Mayor said at the meeting, you should think about your financing gap is for this project so that we can try to meet
that gap with the TIF program.
Please feel free to call or email me with any questions you might have. I also attached an electronic version of the TIF
application for your use as you start filling in information.
Thank you,
Tania
>w:
mayor of salem.pdfCP Applicationl.DOC
Tania Hartford, Economic Development Planner
City of Salem, Dept. of Planning and Community Development
120 Washington Street, Salem, MA 01970
Phone: 978/619-5685 - Fax: 978/740-0404
www.salem.com
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