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JACQUELINE'S TIF i � h Tl � ``°�,,, •-�. _ .._ CITY OF SALEM, MASSACHUSE17S 10mberley Driscoll Mayor February 8, 2013 Salem City Council. Salem City Hall Salem, MA 01970 Re: Request to Authorize Tax Increment Financing (TIF) for Jacqueline's Wholesale Bakery, Inc., 96 Swamscott Road, Salem Dear Councillors: I am writing to you to request that you authorize tax increment financing for Jacqueline's Wholesale Bakery located at 96 Swamscott Road in Salem. Tax Increment Financing(TIF) is an economic development tool used to create jobs and encourage business expansion. With a TIF, a city grants property tax exemptions of up to 100 percent of the increased property value, or increment, due to investment in the property for a specific period of time. In this case, it is proposed that the TIF be for a period of five(5) years. Jacqueline's Wholesale Bakery has recently purchased an additional 12,000 square feet at 96 Swampscott Road for$1,288,200 in order to expand their gourmet frozen cookie manufacturing business. The business proposes to invest an additional $550,000 in facility upgrades. The Assessor estimates that the property value will increase by $275,000 due to this additional investment. The TIF would provide a tax exemption on this incremental assessed value according to the following schedule: Fiscal year Exemption Incremental Exempted Base tax bill Total annual assessed property taxes paid value taxes 2014 100% $0 2015 80% $55,000 $1,730.30 2016 60% $110,000 $3,460.60 2017 40% $165,000 $5,190.90 2018 20% $220,000 $6,921.20 2019 0% $275,000 Salem City Hall—93 Washington Street—Salern,MA 01970-3592 Ph.978-745-9595 Fax 978-744-9327 Jacqueline's would continue to pay property taxes at 100%of the full base value of the property. The tax information is only for the 12,000 square foot addition, not the entire facility of 33,380 square feet. Jacqueline's intends to retain seventy-five (75) full-time employees and create at least 35 new full-time jobs. The company is committed to a good faith effort of employing residents of the Beverly and Salem Regional Economic Target Area, with a preference to hiring qualified City of Salem residents for employment opportunities that become available at the facility. It is worth noting that Jacqueline's has done job training for its workforce through the Workforce Investment Board(WIB) located in Salem. The approval of a TIF by City Council enables Jacqueline's Wholesale Bakery to access State manufacturing investment tax credits of up to 40%of their investment because Salem is a Gateway City. Normally, a manufacturer would only be eligible for a tax credit up to 6%, but the State is encouraging revitalization of Gateway Cities through this economic development incentive. I am requesting action at the City Council meeting on February 28, 2013 in order for Jacqueline's to meet the State deadline for the investment tax credit application. The deadline for all paperwork to be into the Massachusetts Office of Business Development (MOBD) is technically February 25 for a March 26 meeting in Boston; however, we believe that a minor extension will be granted to enable filing the paperwork following the February 2 Ih 8 City Council meeting. Marc Hazel of Jacqueline's would welcome the opportunity to further discuss the TIF request and his company. Jacqueline's Wholesale Bakery is a great asset to the City. In the past six years the number of employees has increased from 16 to 105 with 75 full-time employees. The additional investment of$2.88 million, including acquisition and equipment, is significant and will result in the creation of 35 newjobs, as well as additional tax revenue. I ask you to support the expansion of Jacqueline's Wholesale Bakery and enable this economic development project to move forward by approving the proposed TIF. Sincerely, Kimberley Driscoll Mayor Salem City Hall—93 Washington Street—Salem, MA 01970-3592 Ph-978-745-9595 Fax 978-744-9327 CITY OF SALEM, MASSACHUSETTS Kimberley Driscoll Mayor February 25, 2013 Salem City Council Salem City Hall Salem, MA 0 1970 Re: Revised Resolution- Request to Authorize Tax Increment Financing (TIF) for Jacqueline's Wholesale Bakery, Inc., 96 Swampscott Road, Salem Dear Councillors: Thank you for your quick action on the request to authorize a TIF for Jacqueline's Wholesale Bakery. However, the New Landmark Group, on behalf of Jacqueline's Wholesale Bakery, has just advised me they need to make a few corrections on the TIF documents, which also affect the Council Resolution. The corrections are primarily due to a technicality regarding the actual ownership of the property itself, which is owned by MIFI (Mark Hazel) LLC, rather than Jacqueline's. In addition, there are two other clarifications in the documents: I. It needs to be explicit that the City Council is designating the property as an Economic Opportunity Area, not implicit; and, 2. The tax exemptions will start as of the first full fiscal tax year after the CO is issued, rather than FY 2014. It is still anticipated that the tax exemptions will,start in fiscal year 2014. The changes do not impact any of the other components of the Agreement. I am requesting that Council adopt the revised Resolution and approve the TIF at the City Council meeting on February 28, 2013 in order for Jacqueline's to meet the State deadline for the investment tax credit application. Mark Cote of New Landmark Group will attend the Council meeting, should you have any questions about these minor revisions. Given your approval of the TIF at your meeting on February 14, 2013, 1 am hopeful that you will feel comfortable moving forward. Salem City Hall—93 Washington Street—Salem, MA 01970-3592 Ph. 978-745-9595 Fax 978-744-9327 I have attached the revised Resolution, the revised TIF Agreement, and the revised TIF Plan, as well as my cover letter dated February 11, 2013,which contains all of the specifics regarding the TIF. Thank you for your continued support of the expansion of Jacqueline's Wholesale Bakery. Sincerely, Kimberley Driscoll Mayor Salem City Hall—93 Washington Street—Salem, MA 01970-3592 Ph.978-745-9595 Fax 978-744-9327 TAX INCREMENT FINANCING PLAN LOCATION A. Economic Opportuni ity Area (EOA): Site Specific JACQUELINE'S EOA B. Municipality: City of Salem C. TIF Zone: i. Map Exhibit A ii. Description (common) Common Descnplion The proposed TIF Zone is for a proposed ±33,380 sq. ft.Jacqueline's Wholesale Bakery, Inc. C'JACQUELINE'S") manufacturing and warehouse facility and corporate headquarters at 96 Swampscott Road,in the site-specific Jacqueline's Economic Opportunity Area (EOA). The JACQUELINE'S project will be located on land currently owned by MH,LLC and Jacqueline's Gourmet Cookies —each bound together by commonality of interest and mutual ownership. Specifically, the lots are identified as Parcel ID 07-0070-801 and Parcel ID 07- 0070-802 in the Salem Assessor's office. JAC�QUELINE'S development is expected to utilize the existing public utilities available on Swampscott Road for service to the existing facilities. iii. Narrative description of TIF Zone,Needs,Problems, and Opportunities The TIF Zone site is to support a ±33,380 square foot industrial and office facility on Swampscott Road in Salem. JACQUELINE'S proposed investment in the development of the site is: Building purchase: $1,288,200 Equipment Investment: $1,000,000 Facility Upgrades: $550,000 Total Investment: $2,838,200 The proposed development generates more tax dollars, as well as,increased jobs. iv. Property Owners within the proposed zone MH, LJ_C owns Parcel ID 07-0070-802,a ± 11,130 square foot building and JACQUELINE'S owns Parcel ID 07-0070-801,a ± 22,250 building, together consisting of 33,380 sq. ft. building space at the proposed site. II. TIME—DURATION OF TIF PLAN AND ZONE DESIGNATION 5 years IILTIF ZONE & ECONOMIC DEVELOPMENT A. Discuss how TIF Zone is poised to create new economic development opportunities Ile designation of this property as a TIF Zone will create a number of new economic development opportunities. JACQUELINE'S intends to retain seventy- five (75) full-time employees and create at least 35 new full-time jobs. JACQUELINE'S anticipated$2,838,200 investment will increase the City's commercial tax base. If approved, this TIF Plan win demonstrate that the City can and will offer economic development tools to attract business. B. Discuss how TIF Zone will result in a net economic benefit to the local municipality Approving the proposed TIF zone will result in the following net economic benefit to the City of Salem: * JACQUELINE'S investment of approximately$2,838,200—a significant increase over the current base value. 0 JACQUELINE'S retention of seventy-five (75) full-time jobs and the creation of thirty-five (35) new full-time jobs. 9 JACQUELINE'S commitment to a good faith effort of employing residents of the Beverly and Salem Regional Economic Target Area, with a preference to hiring qualified City of Salem residents for employment opportunities that become available at the facility. C. Analysis of proposed and potential land uses The project includes the purchase and redevelopment of 11,300 sq. ft. industrial and office building at 96 Swampscott Road, Unit 2. JACQUELINE'S is expanding their manufacturing facility capacity. D. Zoning in TIF Zone INDUSTRIAL E. Identify any parcels,public or private,in zone which are confirmed hazardous waste disposal sites,in accordance with Chapter 21 E,MGL N/A F. Identify principal commercial and industrial tenants within the TIF Zone JACQUELINE'S will occupy the entire ±33,380 sq. ft. facility. IV.TIF ZONE PROJECTS A. Private Projects 1. Proposed See Preliminary Certified Project Application 2. Planned See above 3. Provide documentary evidence of the level of the developer's conunitment to construction proposed&required in the TIE project. JACQUELINE'S has a longstanding relationship with East Boston Savings Bank and is working through East Boston Savings to support project construction.JACQUELINE'S has annual revenues in excess of $30,000,000. 4. Budget for proposed project expenditures with supporting data. See Certified Project Application 5. Letters of commitment from local lending institutions See Certified Project Application. JACQUELINE'S has a relationship with East Boston Savings Bank. 6. Participation in other federal,state and local Economic Development programs and initiatives. JACQUELINE'S has applied for additional incentives through the Massachusetts Economic Development Incentive Program C'EDIP'D through the Massachusetts Office of Business Development C'MOBU). 7. Relevant business plans a. Time schedules for development Development is expected to be completed by the end of Q2,2013. b. Returns on investment The company is anticipating expanding and growing the business in the new location with the manufacturing of frozen gourmet cookie pro ducts. c. Expected Increases in job Creation The project will retain approximately seventy-five (75) and the creation of at least thirty-five (35) new full-time permanent jobs in five. d. Estimated tax revenues based upon increased valuation of the parcel JACQUELINE'S anticipated$2,838,200 investment will res�t in a significant increase in Salem's commercial industrial tax base,based on their cormnitment to pay taxes on a percentage of the new the value of the new facility for five (5) years and 100% of the taxes in Year Six (6). B. Public Projects 1. Proposed—N/A 2. Planned—N/A 3. Budget for proposed project expenditures supporting data—N/A V. FINANCING FOR TIF ZONE PROJECTS A. Anticipated Financing for Private Projects 1. Sources and Amounts for Proposed Projects See above.JACQUELINE'S is financing the project in collaboration with East Boston Savings Bank. 2. Sources and Amounts for Planned projects See above B. Anticipated Financing for Public Projects N/A C. Detailed projection of costs of public construction N/A D. Will betterment be used to finance any public-ptivate projects,now or within the proposed life of the TIF plan? No betterment will be used. E. lf betterment or Special Assessments are part of the TIF Plan N/A F. Describe how private projects will be financed 1. Evidence of private financing commitments See above.JACQUELINE'S is financing the project in collaboration with East Boston Savings Bank. 2. Material assumption and requirements See above.JACQUELINE'S is financing the project in collaboration with East Boston Savings Bank. VI.TAX INCREMENT FINANCING A. Authorization to use TIF The attached City Council Resolution authorizes the City of Salem to use TIF in the Site-Specific JACQUELINE'S EOA. The City Council will vote on the Resolution authoriz�the use of the TIF Plan for JACQUELINE'S on February 28,2013 and the resolution will be forwarded when executed. B. Amount of proposed tax increment exemptions from property taxes, and applicable criteria The Proposed Increment Exemption for Parcel ID 07-0070-802 is as follows: Exemption Term % 1 100% 2 80% 3 60% 4 40% 5 20% 1. The Term of the exemption shall commence as of the first fun fiscal tax year after Certificate of Occupancy is issued for Parcel ID 07-0070-802 and shall continue for Five (5) years. C. Maximum percentage of public project costs that can be recovered through betterment or special assessments in lieu of the incremental real estate taxes N/A D. TIF Exemption from property taxes 1. Term of exemption: 5 years The exemption plan works as follows: TERM COMPANY PAYS 1 0% of increment 2 20% of increment 3 40% of increment 4 60% of increment 5 80%of increment E. Effective date of tax increment exempt.ton To commence as of the first full fiscal tax year after Certificate of Occupancy is issued for Parcel ID 07-0070-802 F. Betterment of special assessments k N/A VII. APPROVAL OF TAX INCREMENT FINANCING PROJECTS A. Approval Process The City Council is anticipated to approve the two resolutions accepting the Certified Project Application for the project and allowing the Mayor to enter into a TIF Agreement with the company at their meeting on February 28, 2013. The project will then require approval by the EACC,which is slated to meet to discuss the project on March 26,2013. B. Person or Board authorized to execute TIF Agreements The Mayor executes the TIF Agreement,upon approval from the City Council. C. Evidence of local approvals of TIF zone Pending City Council approval on February 28,2013. D. Evidence of local approvals of TIF plan Pending City Council approval on February 28,2013. E. Executed TIF agreements (any and all) Pending City Council approval on February 28,2013. F. EACC approval of TIF plan Pending EACC approval on March 26,2013. TAX INCREMENT FINANCING AGREEMENT CITY OF SALEM, MASSACHUSETTS, MH, LLC and JACQUELINE'S WHOLESALE BAKERY, INC. This agreement is made this 26th day of February, 2013, by and between the CITY OF SALEM, a municipal corporation duly organized under the laws of the Commonwealth of Massachusetts, having a principal place of business at City Hall, 93 Washington Street, Salem, Massachusetts, 01970, acting through the Mayor, Kimberley Driscoll, (hereinafter called the "CITY"), MH,LLC, a Massachusetts limited liability company having a principal place of business at 96 Swampscott Road, Unit 1, Salem, MA 01970 (hereinafter called the "COMPANY"), andjacqueline's Wholesale Bakery, Inc., a Massachusetts corporation,with a principal place of business at 96 Swampscott Road, 6nit 1, Salem, MA 01970 (hereinafter called "JACQUELINE'S"). WHEREAS, the COMPANY owns certain real estate on Swampscott Road U2, Salem, Massachusetts, known as Assessor's Parcel fD 07-0070-802 (the "PROPERTY"), and WHEREAS, the COMPANY and JACQUELINE'S propose to enter into a lease or similar arrangement for the PROPERTY, and WHEREAS,JACQUELINE'S wishes to expand its gourmet frozen cookie manufacturing business into the PROPERTY; and WHEREAS, the City, bv vote of the City Council, requests that the Economic Assistance Coordinating Council (& "EACC"), pursuant to Chapter 23A, Section 3E, designate -as an Economic Opportunity Area ("ECA") an area of the City which includes the PROPERTY on which the COMPANY owns and JACQUELINE'S wishes to expand its manufacturing operation, hereinafter called Site Specific Jacqueline's Economic Opportunity Area; and WHEREAS, the CITY is willing to grant tax concessions in return for guarantee of the lease by JACQUELINE'S and renovation of the +/- 12,000 sq. ft. manufacturing and warehouse facility and the creation of employment opportunities for local workers; and I WHEREAS, the Salem City Council resolved on February 11, 2013 to endorse the Tax Increment Financing Plan negotiated bv the CITY, COMPANY and JACQUELINE'S. WHEREAS, the Salem City Council resolved on February28 2013, to allow the use of Tax Increment Financing as a tool to encourage economic development within the Site Specific Jacqueline's Economic Opportunity Area; and NOW,THEREFORE, in consideration of the mutual promises contained herein, the parties do mutually agree as follows: 1. THE COMPANYS OBLIGATIONS a. The COMPANY shall enter into a lease or similar agreement with JACQUELINE'S to enable expansion of its manufacturing business. For exact location of the PROPERTY, refer to Attachment, "Exhibit A." b. The COMPANY shall invest ± $2.8 million in the PROPERTY. c. During the life of this agreement, if the COMPANY decides to sell the PROPERTY or to otherwise transfer control of the PROPERTY thereof, the COMPANY shall give the CITY at least a three month 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. 2. JACQUELINE'SOBLIGATIONS a. JACQUELINE'S shall enter into a lease or similar agreement with the COMPANY enabling expansion of its manufacturing business and the creation of new jobs. b. JACUELINE's shall use best efforts to create thirty-five (35) and retain seventy-five (75) jobs. c. During the life of this agreement,if JACQUELINE'S decides to sell or to discontinue the operations thereof,JACQUELINE'S shall give the CITY at least a three month notice of said termination or sale. Said notice shall be given by certified mad, return receipt requested, to the Mayor, City Hall, 93 Washington Street, Salem, Massachusetts, 01970. 3. THE CITY'S OBLIGATIONS a. The CITY shall grant a tax increment financing exemption to the COMPANY in accordance with Massachusetts General Laws, Chapter 23A, Section 3E, Chapter 40, Section 59, and Chapter 59, Section 5. Said exemption shall be granted on the improvements to the FACILITY. During each year of this agreement, the COMPANY will pay taxes based on the portion of the value of the PROPERTY whach is not exempt under the agreement. I b. The term of the exemption ("TERM") shall commence as of the first full fiscal tax year after Certificate of Occupancy is issued for the PROPERTY and shall continue for Five (5) years. For the TERM the COMPANY will pay taxes on a percentage of the value of the PROPERTY and be granted an exemption of a percentage of the full value of the PROPERTY, as follows:. TERM Exemption% 1 100% 2 80% 3 60% 4 40% 5 20% In year Six (6), the COMPANY will pay taxes on the full assessed value of the PROPERTY. 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 or JACQUELINE'S decides to expand the facility at any time during the life of the Tax Increment Financing Agreement, the CITY,JBWI 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 MH, LLC. Kimberley r Marc Hazel, Presideht V JACQUELINE'S WHOLESALE BAKERY, INC L Marc Hazel, Presideht I 1�r ECONOMIC ASSISTANCE COORDINATING COUNCIL March 26, 2013 DRAFT Agenda 1. Approval of the December 19, 2012 Economic Assistance Coordinating Council (EACC)Meeting Minutes 2. Approval of the February 21,2012 Economic Assistance Coordinating Council Policy Meeting Minutes 3. Discussion of Economic Development Incentive Program (EDIP) Applications: Municipality Application Name of Application Fitchburg EOA Application Putnam Place Economic Zone Certified Project DRS Power Technology,Inc. Application Hopkinton EOA Application Elmwood Park Economic Opportunity Area Certified "TIF ONLY" Perkin Elmer Health Sciences, Inc. Project Application Leominster EOA Application 9 Mohawk Drive Certified Project New England Wire Products, Inc. Application Natick Certified Project The MathWorks, Inc. Application North Adams EOA Application Crane& Co. Economic Opportunity Area Certified "STA Only" Crane& Co., Inc. Project Application Plymouth EOA Application Cordage Park EOA#2 Certified "TIF ONLY" Plymouth MA 2013,LLC Project Application Revere EOA.Application Northgate/North Revere Area Economic Opportunity Area Certified "TIF ONLY" Squire Charger Realty,LLC Project Application Salem EOA Application Jacqueline's EOA Certified Project Jacqueline's Wholesale Bakery,Inc./MH LLC Application Springfield Certified Project Massachusetts Mutual Life Insurance Company Application 4. March EDIP Investment Tax Credit Awards 5. Decertifications 6. Motion to Adjourn Please note this is a draft agenda and is subject to change TAX INCREMENT FINANCING PLAN 1. LOCATION A. Economic Opportunity Area (EOA): Site Specific JACQUELINE'S EOA B. Municipality: City of Salem C. TIF Zone: i. Map Exhibit A ii. Description (common) Common Descr�blzon The proposed TIF Zone is for a proposed 33,380 sq. ft.Jacqueline's Wholesale Bakery, Inc. C'JACQUELINE'S") manufacturing and warehouse facility and ' corporate headquarters at 96 Swanpott Road, in the site-specific Jacqueline's Economic Opportunity Area (EOA�. The JACQUELINE'S project will be located on land currently owned by MH,LLC and Jacqueline's Gourmet Cookies —each bound together by mutual ownership. Specifically, the lots are identified as Parcels 07-0070-801 and 07-0070-802 in the Salem Assessor's office. JACQUELINE'S development is expected to utilize the existing utilities available on Swamscott Road for service to the existing facilities. iii. Narrative description of TIF Zone, Needs,Problems, and Opportunities The TIF Zone site is to support a 33,380 square foot industrial and office facility on Swarnscott Road in Salem. JACQUELINE'S proposed investment in the development of the site is: Building purchase: $1,288,200 Equipment Investment: $1,000,000 Facihty Upgrades: $550,000 Total Investment: $2,838,200 The proposed development generates more tax dollars, as well as, increased jobs. iv. Property Owners within the proposed zone MH,LLC and JACQUELINE'S intend to solely own the 33,380 sq. ft. facility at the proposed site. 11. TIME—DURATION OF TIF PLAN AND ZONE DESIGNATION 5 years III.TIF ZONE & ECONOMIC DEVELOPMENT A. Discuss how TIF Zone is poised to create new econornicIdevelopment opportunities 'the designation of this property as a TIF Zone will create a number of new economic development opportunities. JACQUELINE'S intends to retain seventy- five (75) full-time employees and create at least 35 new full-time jobs. JACQUELINE'S anticipated$2,838,200 investment will increase the City's commercial tax base. If approved, this TIF Plan will demonstrate that the City can and will offer economic development tools to attract business. B. Discuss how TIF Zone will result in a net economic benefit to the local municipality Approving the proposed TIF zone will result in the following net econormc benefit to the City of Salem: • JACQUELINE'S investment of approximately$2,838,200—a significant increase over the current base value. • JACQUELINE'S retention of seventy-five (75) full-time jobs and die creation of thirty-five (35) new fiiU-dme jobs. e. JACQUELINE'S commitment to a good faith effort of employing residents of the Beverly and Salem Regional Economic Target Area,with a preference to hiring qualified City of Salem residents for employment opportunities that become available at the facility. C. Analysis of proposed and potential land uses Ile project includes the purchase and redevelopment of+/-33,830 sq. ft. industrial and office building at 96 Swamscott Road. JACQUELINE'S is expanding their manufalcturing facility and corporate headquarters in the space. 4 D. Zoning in TIF Zone INDUSTRIAL E. Identify any parcels,public or private,in zone which are confirmed hazardous waste disposal sites,in accordance with Chapter 21 E,MGL N/A F. Identify principal commercial and industrial tenants within the TIF Zone JACQUELINE'S will occupy the entire +/- 33,380 sq. ft. facility. IV.TIF ZONE PROJECTS A. Private Projects 1. Proposed See Preliminary Certified Project Application 2. Planned See above 3. Provide documentary evidence of the level of the developer's commitment to construction proposed&required in the TIF project. JACQUELINE'S has a longstanding relationship with East Boston Savings Bank and is working through East Boston Savings to support project construction.JACQUELINE'S has annual revenues in excess of $30,000,000. 4. Budget for proposed project expenditures with supporting data. See Certified Project Application 5. Letters of commitment from local lending institutions See Certified Project Application. JACQUELINE'S has a relationship with East Boston Savings Bank. 6. Partic'pation in other federal, state and local Economic Development programs and initiatives. JACQUELINE'S has applied for additional incentives through the Massachusetts Economic Development Incentive Program C'EDIP") through the Massachusetts Office of Business Development C'MOBD'�. 7. Relevant business plans a. Time schedules for development Development is expected to be completed by the end of Q2, 2013. b. Returns on m* vestment The company is anticipating expanding and growing the business in the new location with the manufacturing of frozen gourmet cookie products. c. Expected Increases in job Creation The project will retain approximately seventy-five (75) and the creation of at least thirty-five (35) new full-time permanent jobs in five. d. Estimated tax revenues based upon increased valuation of the parcel US B10's anticipated $2,838,200 investment will result in a significant increase in Salem's commercial industrial tax base,based on their commitment to pay taxes on a percentage of the new the value of the new facility for five (5) years and 100%of the taxes in Year Six (6). B. Public Projects 1. Proposed—N/A 2. Planned—N/A 3. Budget for proposed project expenditures supporting data—N/A V. FINANCING FOR TIF ZONE PROJECTS A. Anticipated Financing for Private Projects 1. Sources and Amounts for Proposed Projects See above.JACQUELINE'S is financing the project in collaboration with East Boston Savings Bank. 2. Sources and Amounts for Planned projects See above B. Anticipated Financing for Public Projects N/A C. Detailed projection of costs of public construction N/A D. Will betterment be used to finance any public-private projects,now or within the proposed life of the TIF planP No betterment will be used. E. If betterment or Special Assessments are part of the TIF Plan N/A F. Describe how private projects will be financed 1. Evidence of private financing commitments See above.JACQUELINE'S is financing the project in collaboration with East Boston Savings Bank. 2. Material assumption and requirements See above.JACQUELINE'S is financing the project in collaboration with East Boston Savings Bank. VI.TAX INCREMENT FINANCING A. Authorization to use TIF The attached City Council Resolution authorizes the City of Salem to use TIF in the Site-Specific JACQUELINE'S EOA. The City Council will vote on the Resolution authorizing the use of the TIF Plan for JACQUELINE'S on February 21, 2013 and the resolution will be forwarded when executed. B. Amount of proposed tax increment exemptions from property taxes,and applicable criteria The Proposed Increment Exemption is as follows: Fiscal Exemption Year % 2014 100% 2015 80% 2016 60% 2017 40% 2018 20% C. Maximum percentage of public project costs that can be recovered through betterment or special assessments in lieu of the incremental real estate taxes N/A D. TIF Exemption from property taxes 1. Term of exemption: 5 years The exemption plan works as follows: YEAR COMPANY PAYS 1 0%of increment 2 20% of increment 3 40% of increment 4 60% of increment 5 80% of increment E. Effective date of tax increment exemption Fiscal Year 2014. F. Betterment of special assessments N/A VIT. APPROVAL OF TAX INCREMENT FINANCING PROJECTS A. Approval Process The City Council is anticipated to approve the two resolutions accepting the Certified Project Application for the project and allowing die Mayor to enter into a TIF Agreement with the company at their meeting on February 21,2013. The project will then require approval by the EACC,which is slated to meet to discuss the project on March 26,2013. B. Person or Board authorized to execute TIF Agreements The Mayor executes the TIF Agreement,upon approval from the City Council. C. Evidence of local approvals of TIF zone Pending City Council approval on February 21,2013. D: Evidence of local approvals of TIF plan Pending City Council approval on February 21, 2013. E. Executed TIF agreements (any and all) Pending City Council approval on February 21,2013. F. EACC approval of TIF plan Pending EACC approval on March 26,2013. RESOLUTION WHEREAS,Jacq ueline's Wholesale Bakery, Inc. (hereinafter "JACQUELINE'S") wishes to expand their gourmet frozen cookie manufacturing business located at 96 Swampscott Road, Unit 1, Salem, MA into 96 Swampscott Road, Unit 2 in Salem, MA; and ' WHEREAS, 96 Swampscott Road, Unit 1, Salem, MA, known as Assessor's Parcel ID 07- 0070-01 (hereinafter "UNIT 1") is owned by JACQUELINE's; and WHEREAS, 96 Swampscott Road, Unit 2, Salem, MA, known as Assessor's Parcel ID 07- 0070-02, (hereinafter "UNIT 2") is owned by MH, LLC; and WHEREAS, UNIT 1 and UNIT 2 are owned by commonality of interest, having the same owner, WHEREAS, the City of Salem (hereafter "CITY") is willing to grant tax concessions in return for a guarantee of the lease and renovation of an additional +/- 12,000 sq. ft. of manufacturing and warehouse facility space and the creation.of employment opportunities for local workers; NOW, THEREFORE, BE IT RESOLVED that the Salem City Council hereby • Requests that the Commonwealth of Massachusetts designate an area,of the city that includes UNIT 1 and UNIT 2 as an Economic Opportunity Area (WA) hereinafter called Site Specific Jacqueline's Economic opportunity Area; and • endorses the use of Tax Increment Financing as a tool to encourage economic development within the Site Specific Jacqueline's Economic Opportunity Area, and approves the Tax Increment Financing Plan negotiated by the CITY and the JACQUELINE'S, and • provides for a tax exemption for UNIT 2 for a period of five (5) years, beginning the first full fiscal tax year after Certificate of Occupancy is issued for UNIT 2 in accordance with the schedule below: Term Exemption % 1 100% 2 80% 3 60% 4 40% 5 20% IL Said exemption being in accordance with M.G.L. Chapter 23A, Section3E, Chapter 40, Section 59, Section 5. BE IT FURTHER RESOLVED that the Mayor is hereby authorized, on behalf of the City, to enter into a Tax Increment Financing Agreement, a copy of which is attached hereto, with MH, LLC. In City Council February 28, 2013 Adopted by roll call vote of 9 yeas, 0 nays, 2 absent Approved by the Mayor on March 4, 2013 ATTEST. CHERYL LAPOINTE CITY CLERK City of Salem Yea and Nay Vote of City Council Upon the Question of Yea Nay Pres. Absent Date 2013 Josh H. Turiel Michael Sosnowski Todd A.Siegel Arthur C. Sargent,III Paul C. Prevey Robert K. McCarthy William IL Legault Joseph A. O'Keefe,Sr. Thomas H. Furey Kevin R. Carr,Jr. Jerry L. Ryan, President Jotals A TRUE CO Wy EST —,%TV CLERK A CLERK SALEM: MASS: City of Salem Yea and Nay Vote of City Council Upon the Question of Yea Nay Pres. Absent Date 2013 Josh H. Turiell Nfichael Sosnowski Todd A.Siegel Arthur C.Sargent, III Paul C. Prevey Robert K. McCarthy William H. Legault Joseph A. O'Keefe,Sr. Thomas H. Furey Tfl DE Cop S T Kevin R. Carr,Jr. Jerry L. Ryan, President "ar Totals �CITY CLERK The Massachusetts Economic Development Incentive Program APPLICATION FOR DESIGNATION OF ECONOMIC OPPORTUNITY AREA(S) PART A: Applicant Information 1. Please check one: X This is an application for designation of a new EOA within a previously approved ETA. This is a request to amend an EOA previously approved by the EACC. The City of Salem is applying for a site-specific "JACQUELINE'S"EOA 2. Community submitting this application: City of Salem, MA PART B: MANDATORY REQUIREMENTS FOR THE PROPOSED EOA 1. Location of Proposed EOA(s): Provide a detailed map of each proposed EOA, indicating the existing streets, highways, waterways,natural boundaries, and otherphysical features, along with a legally binding written description of the EOA boundaries(with parcel numbers if appropriate). If the written description is longer than one paragraph,please submit on 3 1/2" computer disk. The proposed, site-specific JACQUELINE'S EOA is located at 96 Swampscott Road, Unit I and Unit 2 in Salem, MA. For a detailed map of the proposed lot, see"Exhibit A"attached. 2. Description of EOA(s): Describe why each proposed EOA was chosen for designation. Include a brief, descriptive narrative of each area which helps to explain the particular situations, issues, or reasons why EOA designation is requested. The City of Salem is requesting site specific JACQUELINE'S EOA designation to support Jacqueline's Wholesale Bakery Inc.'s ("JACQUELINE'S11) intent to purchase and rehabilitate a±33,380 square foot facility at 96 Swampscott Road. Facility investment will support JACQUELINES' expanded manufacturing facility and corporate headquarters and encourage an investment of$2,838,200, the retention of seventy-five(75)new full-time employees and the creation of at least thirty-five(35)new permanent full-time employees. 3. Basis for EOA Designation: Check the applicable category or categories (see definitions in attachment at back of application) for each proposed EOA: The area proposed for designation as an EOA is a "blighted open area." 8. Compliance with Community Reinvestment Act: Include a copy of a municipal plan or policy, if any exists, which links the municipality's choice of banking institutions to the bank's compliance with the requirements of the Community Reinvestment Act. N/A 9. Project Approval: (a)Identify the municipal official or group/board which shall be authorized to review project proposals for and on behalf of the municipality. The Mayor and City Council shall review and approve individual project applications and designations. (b) Indicate the standards and procedures for review of project proposals, including the application procedures,the timeframe for review and determination, and the criteria and process for approval of project proposals. If you intend to use supplemental application material(i.e. municipal cover letter with instructions,job commitment signoff sheet, supplemental questions to be required by the municipality, etc.), it must be mentioned here and must be approved by the Economic Assistance Coordinating Council (EACC). Please attach (if appropriate). Applicants shall apply to the Mayor and City Council by filling out a certified project application and submitting relevant Economic Development Incentive Program materials. The City Council shall review and provide a recommendation to the Mayor via a formal vote at a City Council meeting. 10. Intent of Businesses to Locate in EOA: Identify the names and the nature of businesses, if any,that have indicated an intention to locate or expand in the proposed EOA(s). If possible, include letters of intent from the businesses, outlining the number ofjobs that would likely be created and providing a timetable for development of the projects. See above. JACQUELINE'S intends to purchase and rehabilitate a 11,300 square foot facility to expand their manufacturing facility and corporate headquarters in the EOA. Project investment is expected to approach$3,000,000, and the facility will support the retention of seventy-five full-time employees and the creation of at least thirty-five (35)new full-time employees. PART D: COMMITMENT TO PROVIDE LOCAL PROPERTY TAX RELIEF The municipality completing this application must provide a binding written offer to provide either tax increment financing or a special tax assessment to each certified project located within the proposed EOA(s). Please attach a copy of the municipality's binding written offer. In cities, this shall be in the form of a City Council Order or Resolution, along with a Certified Vote by the City Clerk. See attached. 3 X The area proposed for designation as an EOA is a "decadent area." The area proposed for designation as an EOA is a"substandard area." The area proposed for designation as an EOA has experienced a plant closing or permanent layoffs resulting in a cumulative job loss of 2,000 or more full-time employees within the four years prior to the date of filing this application. 4. Effective Time Period for EOA Designation: How long do you propose to maintain th�EOA designation? The EOA designation may remain in effect for a minimum of five (5) years and a maximum of twenty(20) years. The EOA designation is for a proposed five (5)years). 5. Local Criteria for Designation of EOAs: Describe how each proposed EOA meets your criteria for designation of EOAs, as specified in your application for designation of the ETA. The proposed site specific EOAs`meet the local criteria for designation of a EOA, as stated in the 1994 Beverly and Salem Economic Target Area(ETA) Application. for ETA application, because it has local support for eliminating blighted areas, improving tax base and creating jobs,thus improving the quality of life for residents and visitors to the overall ETA and EOA. The proposed ETA is also compatible with the overall development goals in the Beverly and Salem Economic Target Area. 6. Economic Development Goals: Describe the economic development goals for each proposed- EOA during the first five years of EOA designation. Goals: High-paying quality jobs: JACQUELTNE'S' commitment to retain seventy-five(75) ftill-time employees and create at least thirty-five (35)new full-time employees will bring valuable investment to a Gateway City in Massachusetts. Increase the tax base within the City for future revenues: JACQUELINE'S' commitment to invest approximately$2,83 8,200 in the property will greatly enhance the tax revenues of the City enabling Salem to continue to provide a continuation of the services the City delivers to both the businesses and the residents of the City without creating a higher tax burden on its population. 7. Local Services: Describe the manner and extent to which the municipality intends to provide for an increase in the efficiency of the delivery of local services within the proposed EOA(s) (i.e. streamlining permit application and approval procedures, increasing the level of services to meet new demand, changing management structure for service delivery). The City of Salem is committed to the development of its proposed EOXs as evidenced by the -Technical Assistance and staff support which will be available to businesses which located or expand in designated EOAs and by the numerous financial programs available to these businesses through local, state and federal government agencies. 2 ATTACHMENT DEFINITIONS, as specirted in 402 CMR 2.03: Blighted Open Area -a predominantly open area which is detrimental to the safety,health, welfare or sound growth of a community and which is predominantly open because it is unduly costly to develop it soundly through the ordinary operations of private enterprise. Factors which might make an area unduly expensive to develop include, but are not limited to, existence of hazardous materials or other contaminants; existence of ledge,rock, unsuitable soil,or other physical conditions; need for unduly expensive excavation, fill or grading; need for unduly expensive foundations or retaining walls, need for unduly expensive waterproofing, drainage or flood prevention measures; need for unduly expensive measures to protect adjacent areas and the water tables therein; need for unduly expensive measures incident to building around or over rights-of-way through the area; existence of obsolete, inappropriate or otherwise faulty platting or subdividing; deterioration of site improvements or facilities; division of the area rights-of-way; diversity of ownership; inadequate transportation facilities; inadequate utility systems; tax and special assessment delinquencies; a substantial change in business or economic conditions or practices; an abandonment or cessation of work begun on improvements; any combination of the above; or any other condition or conditions which are detrimental to the safety, health, or sound growth of a community. Decadent Area- an area which is detrimental to safety,health, welfare or sound growth of a community because of the existence of buildings which are out of repair, physically deteriorated, unfit for human habitation, obsolete, or in need of major maintenance or repair; or because much of the real estate in recent years has been sold or taken for non-payment of taxes or upon foreclosure of mortgages; or because buildings have been'torn down and not replaced and in which under existing conditions it is improbable that the buildings will be replaced; or because of a substantial change in business or economic conditions; or because of inadequate light, air, or open space; or because of excessive land coverage; or because diversity of ownership, irregular lot sizes, or obsolete street patterns make it improbable that the area will be redeveloped by the ordinary operations of private enterprise; or by reason of any combination of the foregoing conditions. Substandard Area - an area wherein dwellings predominate which, by reason of dilapidation, overcrowding, faulty arrangement or design, lack of ventilation, light, or sanitation facilities, or any combination of these factors, are detrimental to safety,health, welfare or sound growth of a community. 4 RESOLUTION WHEREAS, Jacqueline's Wholesale Bakery, Inc. (hereinafter "COMPANY") wishes to expand their gourmet frozen cookie manufacturing business located at 96, Swampscott Road, Unit 1, Salem, MA into 96 Swampscott Road, Unit 2 in Salem, MA; and WHEREAS, the CITY is willing to grant tax concessions in return for a guarantee of the purchase and renovation of an additional +/- 12,000 sq. ft. of manufacturing and warehouse facility space and the creation of employment opportunities for local workers; NOW, THEREFORE, BE IT RESOLVED that the Salem City Council hereby endorses the use of Tax Increment Financing as a tool to encourage economic development within the Site Specific Jacqueline's Economic Opportunity Area and approves the Tax Increment Financing Plan negotiated by the CITY and the COMPANY that provides for a tax exemption for a period of five (5) years, beginning with fiscal year 2014 in accordance with the schedule below: Fiscal Year Exemption 2014 100% 2015 80% 2016 60% 2017 40% 2018 20% Said exemption being in accordance with M.G.L. Chapter 23A, Section 3E, Chapter 40, Section 59, and Chapter 59, Section 5. BE IT FURTHER RESOLVED that the Mayor is hereby authorized, on behalf of the City, to enter into a Tax Increment Financing Agreement, a copy of which is attached hereto, with Jacqueline's Wholesale Bakery, Inc. In City Council February 14, 2013 Adopted by roll call vote of 11 yeas, 0 nays, 0 absent Approved by the Mayor on February 19, 2013 ATTEST: '- qHERY A. e!APOINTE CITY CLERK City of S.alern�, Yea and Naiy'Voii of-City Council f Vpon the Qfiestion,o 1'� A V: V., New Nay'� Pies... Absent,-- at , 201 EX `Turiet' Josh H. NuZ fiie1'S6snbwsk1: ev" ,ToddA,��Ie�g-'e'l, I,e LZ AA"r�,E-Sargente][11 T I .-Prevey-- a� c -4 ko�irt K. McUarthy.-� William H. Eegault. 4� Joseph"A.'-O'Kiefe,Snf- 114 Thontas irey KO,in Rx, �;j ar r... -,�Aw Jer.rj L.Ayanjl';� 4 ldi res n e, �.Totals, IUE COP TTEST TO 161,7 1 664 V, le CITALERK,��w�,- ; CITY CLERK SALEM, FB ASS, TAX INCREMENT FINANCING AGREEMENT CITY OF SALEM, MASSACHUSETTS and JACQUELINE'S WHOLESALE BAKERY, INC. This agreement is made this—day of February,2013,by and between the CITY OF SALEM, a municipal corporation duty organized under the laws of the Commonwealth of Massachusetts, having a principal place of business at City Hall, 93 Washington Street, Salem, Massachusetts, 01970, acting through the Mayor, Kimberley Driscoll, (hereinafter called "the CITY"), and Jacqueline's Wholesale Bakery, Inc., a Massachusetts corporation,with a principal place of business at 96 Swampscott Road, Unit 1, Salem, MA 01970 (hereinafter called "the COMPANY"). This Agreement will take effect beginning in fiscal year 2014. For exact location of site, refer to Attachment"Exhibit A". WHEREAS, the COMPANY wishes to expand their gourmet frozen cookie manufacturing business into 96 Swa-mpscott Road,Unit 2 in Salem; and WHEREAS, the CITY is willing to grant tax concessions in return for guarantee of the purchase and renovation of the +/- 12,000 sq. ft. manufacturing and warehouse facility and the creation of employment opportunities for local workers;and WHEREAS, the Salem City Council resolved on February—L4, 2013, to allow the use of Tax Increment Financing as a tool to encourage economic development within the Site Specific Jacqueline's Economic Opportunity Area;and WHEREAS, the Salem City Council resolved on February 14 , 2013 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 COMPANYS OBLIGATIONS 1. The COMPANY shall purchase and renovate a +/- 12,000 sq. ft. facility in at 96 Swampscott Road in Salem. For exact location of the "FACILITY",refer to Attachment, "Exhibit A." 2. During the life of this agreement, if the COMPANY decides to sell the FACILITY or the business or to otherwise transfer control of the FACILITY or business and/or operations thereof, the COMPANY shall give the CITY at least three months notice of said sale or transfer. Said notice shall be given by certified mail,return receipt requested, to the Mayor, City Hall, 93 Washington Street, Salem, Massachusetts, 01970. 3. THE CITY'S OBLIGATIONS 1. The CITY shall grant a tax increment financing exemption to the COMPANY in accordance with Massachusetts General Laws, Chapter 23A, Section 3E, Chapter 40, Section 59, and Chapter 59, Section 5. Said exemption shall be granted on the improv�ments to the FACILITY. Said exemption shall be valid for a period of Five (5) years, beginning with fiscal year 2014. During each year of this agreement, the COMPANY will pay taxes based on the portion of the value of the FACILITY which is not exempt under the agreement. 2. The exemption schedule on the value of the improvements to the FACILITY works as follows: for each of the Five (5) years of this AGREEMENT, the COMPANY will pay taxes on a percentage of the value of the improvements to the FACILITY and be granted an exemption of a percentage of the full value of the improvements to the FACILITY. In year Six (6), the COMPANY will pay taxes on the full value of the improvements to the FACILITY. Fiscal Exemption Year % 2014 100% 2015 80% 2016 60% 2017 40% 2018 20% 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 JACQUELINE'S WHOLESALE BAKERY, INC. Kimberley Driscoll,Mayor Marc Hazel, President TAX INCREMENT FINANCING PLAN 1. LOCATION A. Economic Opportunity Area (EOA): Site Specific JACQUELINE'S EOA B. Municipality: City of Salem C. TIF Zone: i. Map Exhdbit A ii. Description (common) Common Desaiption 'Me proposed TIF Zone is for a proposed 33,380 sq. ft.Jacqueline's Wholesale Bakery, Inc. C'JACQUELINE'S") manufacturing and warehouse facility and corporate headquarters at 96 Swamscott Road, in the site-specific Jacqueline's Economic Opportunity Area (EOA). The JACQUELINE'S project will be located on land currently owned by MH, LLC and Jacqueline's Gourmet Cookies —each bound together by mutual ownership. Specifically, the lots are identified' as Parcels 07-0070-801 and 07-0070-802 in the Salem Assessor's office. JACQUELINE'S development is expected to utilize the existing utilities available on Swamscott Road for service to the existing facilities. iii. Narrative description of TIF Zone, Needs, Problems, and Opportunities The TIF Zone site is to support a 33,380 square foot industrial and office facility on Swamscott Road in Salem. JACQUELINE'S proposed investment in the development of the site is: Budding purchase: $1,288,200 Equipment Investment: $1,000,000 Facility Upgrades: $550,000 Total Investment: $2,838,200 The proposed development generates more tax dollars, as well as, increased jobs. iv. Property Owners within the proposed zone MH, LLC and JACQUELINE'S intend to solely own the 33,380 sq. ft. facility at the proposed site. 11. TIME—DURATION OF TIF PLAN AND ZONE DESIGNATION 5 years III.TIF ZONE & ECONOMIC DEVELOPMENT A. Discuss how TIF Zone is poised to create new economic development opportunities The designation of this property as a TIF Zone will create a number of new economic development opportunities. JACQUELINE'S intends to retain seventy- five (75) full-time employees and create at least 35 new full-time jobs. JACQUELINE'S anticipated $2,838,200 investment will increase the City's commercial tax base. If approved, this TIF Plan will demonstrate that the City can and will offer economic development tools to attract business. B. Discuss how TIF Zone will result in a net economic benefit to the local municipality Approving the proposed TIF zone will result in the following net economic benefit to the City of Salem: • JACQUELINE'S investment of approximately$2,838,200—a significant increase over the current base value. • JACQUELINE'S retention of seventy-five (75) full-time jobs and the creation of thirty-five (35) new full-time jobs. • JACQUELINE'S cominitment to a good faith effort of employing residents of the Beverly and Salem Regional Economic Target Area,with a preference to hiring qualified City of Salem residents for employment opportunities that become available at the facility. C. Analysis of proposed and potential land uses The project includes the purchase and redevelopment of+/-33,830 sq. ft. industrial and office budding at 96 Swamscott Road. JACQUELINE'S is expanding their manufacturing facility and corporate headquarters in the space. D. Zoning in TIF Zone INDUSTRIAL E. Identify any parcels, public or private, in zone which are confirmed hazardous waste disposal sites, in accordance with Chapter 21 E, MGL N/A F. Identify principal commercial and industrial tenants within the TIF Zone JACQUELINE'S will occupy the entire +/- 33,380 sq. ft. facility. IV.TIF ZONE PROJECTS A. Private Projects 1. Proposed See Preliminary Certified Project Application 2. Planned See above 3. Provide documentary evidence of the level of the developer's commitment to construction proposed& required in the TIF project. JACQUELINE'S has a longstanding relationship with East Boston Savings Bank and is working through East Boston Savings to support project construction.JACQUELINE'S has annual revenues in excess of $30,000,000. 4. Budget for proposed project expenditures with supporting data. See Certified Project Application 5. Letters of commitment from local lending institutions See Certified Project Application. JACQUELINE'S has a relationship with East Boston Savings Bank. 6. Participation in other federal, state and local Economic Development programs and initiatives. JACQUELINE'S has applied for additional incentives through the Massachusetts Economic Development Incentive Program C'EDIP") through the Massachusetts Office of Business Development ("MOBD"). 7. Relevant business plans a. Time schedules for development Development is expected to be completed by the end of Q2, 2013. b. .Retums on investment The company is anticipating expanding and growing the business in the new location with the manufacturing of frozen gourmet cookie products. c. Expected Increases in job Creation The project will retain approximately seventy-five (75) and the creation of at least thirty-five (35) new full-time permanent jobs in five. d. Estimated tax revenues based upon increased valuation of the parcel US BIO's anticipated $2,838,200 investment will result in a significant increase in Salem's commercial industrial tax base, based on their commitment to pay taxes on a percentage of the new the value of the new facility for five (5) years and 100% of the taxes in Year Six (6). B. Public Projects 1. Proposed—N/A 2. Planned—N/A 3. Budget for proposed project expenditures supporting data—N/A V. FINANCING FOR TIF ZONE PROJECTS A. Anticipated Financing for Private Projects 1. Sources and Amounts for Proposed Projects See above.JACQUELINE'S is financing the project in collaboration with East Boston Savings Bank. 2. Sources and Amounts for Planned projects See above B. Anticipated Financing for Public Projects N/A C. Detailed projection of costs of public construction N/A D. Will betterment be used to finance any public-private projects, now or within the proposed life of the TIF planP No betterment will be used. E. If betterment or Special Assessments are part of the TIF Plan N/A F. Describe how private projects will be financed 1. Evidence of private financing commitments See above.JACQUELINE'S is financing the project in collaboration with East Boston Savings Bank. 2. Material assumption and requirements See above.JACQUELINE'S is financing the project in collaboration with East Boston Savings Bank. VI.TAX INCREMENT FINANCING A. Authorization to use TIF The attached City Council Resolution authorizes the City of Salem to use TIF in the Site-Specific JACQUELINE'S ECIA. The City Council will vote on the Resolution authorizing the use of the TIF Plan for JACQUELINE'S on February 21, 2013 and the resolution will be forwarded when executed. B. Amount of proposed tax increment exemptions from property taxes, and applicable criteria The Proposed Increment Exemption is as follows: Fiscal Exemption Year % 2014 100% 2015 80% 2016 60% 2017 40% 2018 20% C. Maximum percentage of public project costs that can be recovered through betterment or special assessments in lieu of the incremental real estate taxes N/A D. TIF Exemption from property taxes 1. Term of exemption: 5 years The exemption plan works as follows: YE COMPANY PAYS 1 0%of increment 2 20% of increment 3 40% of increment 4 60% of increment 5 80%of increment E. Effective date of tax increment exemption Fiscal Year 2014. F. Betterment of special assessments N/A VII. APPROVAL OF TAX INCREMENT FINANCING PROJECTS A. Approval Process The City Council is anticipated to approve the two resolutions accepting the Certified Project Application for the project and allowing the Mayor to enter into a TIF Agreement with the company at their meeting on February 21, 2013. The project will then require approval by the EACC,which is slated to meet to discuss the project on March 26, 2013. B. Person or Board authorized to execute TIF Agreements The Mayor executes the TIF Agreement,upon approval from the City Council. C. Evidence of local approvals of TIF zone Pending City Council approval on February 21, 2013. D. Evidence of local approvals of TIF plan Pending City Council approval on February 21, 2013. E. Executed TIF agreements (any and all) Pending City Council approval on February 21, 2013. F. EACC approval of TIF plan Pending EACC approval on March 26, 2013. In City Council February 14, 2013 Adopted by roll call vote of 11 yeas, 0 nays, 0 absent Approved by the Mayor on February 19, 2013 ATTEST: q.1 YIA. aLAPOOWINTE CITY CLERK City of Salem Yen and Nay Vote of City C64hcil f U Question o PO i J-A YCA ,Yen- , Nay-, ,Da e--�) _-3,/ -ionl- josh H.-Tdriel- Michael,SoiiioWski 'Todd A..!Siejie1 i_4,e I �Nl % ��JKV '0 C.; iiur rgenV�I r Paul C.' P�&ey�� Rob�rf K.1 NkCarthv-�,:4�, v3k w illiam H.-,Legaiilt, off o W' -Si sep I AN ho urey., 'Kevin R. Carr,Jr.- jerry L. R�afi, President P�,: L TRUE Cgp A OTTEST c Y.CLERK Ty COK (�p g TAX INCREMENT FINANCING AGREEMENT CITY OF SALEM,MASSACHUSETTS and JACQUELINE'S WHOLESALE BAKERY,INC. This agreement is made this day of February,203,by and between the CITY OF SALEM, a municipal corporation duly organized under the laws of the Commonwealth of Massachusetts, having a principal place of business at City Hall, 93 Washington Street, Salem,Massachusetts, 01970,acting through the Mayor, Kimberley Driscoll, (hereinafter called"the CfIY�, and Jacqueline's Wholesale Bakery, Inc., a Massachusetts corporation,with a principal place of business at 96 Sward tt Road, Unit 1, Salem,MA 01970 (hereinafter called"die COMPANY"). This Agreement will take effe,pt,eginning in fiscal year 2014. For exact location of site, refer to Attachment"Exhibit A". WHEREAS, the COMPANY wishes to expand their gourmet frozen cookie manufacturing business into 96 Swamscott Road,Unit 2 in Salem;and WHEREAS, the CITY is willing to grant tax concessions in return for guarantee of the purchase and renovation of the +/- 12,000 sq. ft. manufacturing and warehouse facility and the creation of employment opportunities for local workers;and WHEREAS, the Salem City Council resolved on February 21,2013, to allow the use of Tax Increment Financing as a tool to encourage economic development within the Site Specific Jacqueline's Economic Opportunity Area; and I WHEREAS, the Salem City Council resolved on February 21 , 2013 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 COMPANYS OBLIGATIONS 1. The COMPANY shall purchase and renovate a +/- 12,000 sq. ft. facility in at 96 Swamscott Road in Salem. For exact location of the"FACILITY",refer to Attachment, "Exhibit A." 2. During the fife of this agreement,if the COMPANY decides to sell the FACILITY or the business or to otherwise transfer control of the 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, retumteceipt requested, to the Mayor,City Hall, 93 Washington Street, Salem,Massachusetts,01970. 3. THE CITY'S OBLIGATIONS 1. The CITY shall grant a tax increment financing exemption to the COMPANY in accordance with Massachusetts General Laws,Chapter A, Section 3E, Chapter 40, Section 59, and Chapter 59, Section 5. Said exemption shall be granted on the improvements to the FACILITY. Said exemption shall be valid for a period of Five (5) years,beginning with fiscal year 2014. During each year of this agreement, the COMPANY will pay taxes based on the portion of the value of the FACILITY which is not exempt under the agreement. 2. The exemption schedule on the value of thekACILITY works as follows: for each of the Five (5) years of this AGREEMENT, the COMPANY will pay taxes on a percentage of the value of the FACILITY and be granted an exemption of a percentage of the fun value of the FACILITY. In year Six (6), the COMPANY will pay taxes on the full value of the FACILITY. Fiscal Exemption Year % 2014 100% 2015 80% 2016 60% 2017 40% 2018 20% 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 die 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. f Executed as a sealed instrument on the day and year first above written. CITY OF SALEM JACQUELINE'S WHOLESALE BAKERY, INC. Kimberley Driscoll,Mayor Marc Hazel,President CaAk GOURMET COOKIES January 16, 2013 Kimberley Driscoll, Mayor City Hall 93 Washington Street Salem, MA 01970 RE:Jacqueline's Wholesale Bakery—Tax 16crem6ht Financing("TIF") Proposal Dear Mayor Driscoll, Pursuant to previous correspondence relating to Jacqueline's Wholesale Bakery, Inc. ("Jacqueline's") and their ability to participate in the Massachusetts Economic Development Incentive Program, I wanted to follow up with you regarding a Tax Increment Financing ("TIF") Proposal. We have also enclosed a Preliminary Certified Project Application to give you greater information about Jacqueline's expansion efforts in Salem. As you are aware,Jacqueline's moved from Malden to Salem in 2006. At that time,Jacqueline's had twenty full-time employees. In the last six years, we have been able to add an additional 55 permanent employees (for a total of 75 full-time employees) as well as well as thirty seasonal temporary employees during our busier times of the year. Today,we have outgrown our existing facility at 96 Swamscott Road, Unit 1. When we were evaluating future expansion options, understanding that Salem is an Economic Target Area ("ETA")—and Salem's designation as a Gateway City within the Economic Development Incentive Program ("EDIP") -was a significant factor in our decision to remain and expand in the City. The benefits associated with the EDIP —including the local TIF and Commonwealth's EDIP-Investment Tax Credit will make a material impact in our proposed expansion project. These benefits Will allow Jacqueline's to achieve our growth plans by reducing business costs and diminishing the growing painsof our expanded headquarters/manufacturing/warehouse facility. Should Jacqueline's receive Certified Project status within the within the EDIP,we would commit to retaining 75 full-time employees in our 26,300 square foot facility and expand into next door's 11,300 sq. ft. facility(37,600 sq. ft. total), creating an additional 35 new full-time employees in the next 60 months (120 total employees) and investing$2,838,200 in building acquisition,facility upgrades and equipment. Jacqueline's respectfully requests that the City of Salem provide, through a Tax Increment Financing Agreement, a five-year partial exemption of real estate taxes based on our investment and renovation of the adjoining property, phased in as follows: 96 Swampscott Road, Unit 1, Salem, MA 01970 13 (978) 744-8600 F (978) 744-8622 Gouu-.%,iE,r COOKIES YEAR EXEMPTION FY14 100% FY15 80% FY16 60% FY17 40% FY18 20% We look forward to discussing this proposal with you and your economic development staff in the immediate future. In the meantime, please do not hesitate to call me or New Landmark Group's Bobby Matthews @ 978-779-0737 x207 should you have any immediate questions. Sincerely yours, Marc Hazel, President Jacqueline's Wholesale Bakery, Inc. Cc: Tom Daniel, AICP, City of Salem Peter Milano, Sr. Regional Director, MOBD 96 Swampscott Road, Unit 1, Salem,MA 01970 P (978) 744-8600 F (978) 744-8622 COMMONWEALTH OF MASSACHUSETTS ECONOMIC ASSISTANCE COORDINATING COUNCIL MASSACHUSETTS OFFICE OF BUSINESS DEVELOPMENT Economic Development Incentive Program (EDIP) PRELIMINARY APPLICATION The following information is required by the Massachusetts Office of Business Development (MOBD) and the Economic Assistance Coordinating Council (EACC) to make a preliminary determination on the eligibility of a project under the Economic Development Incentive Program. This application must be returned in electronic form to your MOBD Regional Director and a bardcopy with original signature(s) mailed to: Eileen Rogan, EDIP Manager, MOBD, 10 Park Plaza, Suite 3730, Boston, MA 02116. Please refer to the EDIP Guidelines, www.mass.gov/d,bd/edip and your MOBD Regional Director for assistance with this application. PART 1. COMPANY INFORMATION Company Name A� Jacqueline's Wholesale Bakery, Inc. Executive '. .1, — I Marc Hazel Officer/C ompany Designee I FirstNarne Last Name Contact(if different from above) I First Name Last Name I Title Email: mhazel@jacquelinesbakery.com Address 96 Swamscott Road, Unit I Salem MA 101970 city State I Zip Phone 978-744-8600 Tax 1978-744-8622 Company Headquarters 96 Swamscott Road, Unit I Location Salem, MA 0 1970 FEIN 04-3494317 Type of Organization- C-Corporation (Corporation,General Partnership,Limited Partnership) Company's Taxable 12/31 Year End Project Location 96 Swamscott Road Salem MA 01970 City State Zip Is the site a 43D Preferred No Development Site(PDS)7 Yes L1 If yes, please name the site Please provide a brief description and history of the company, including NAICS code and ,wheilter MkDbRregiste-r�d'-m'a--n-ufa-ctui or no company is a rer:a-� NAICS code: 311800 MA Department of Revenue Registered Manufacturer: Yes E NoE] Company Description/History: Jacqueline's Wholesale Bakery, Inc. ("Jacqueline's") is a gourmet frozen cookie producer that services store supermarket chains, hotels, cruise lines, food service distributors and national chain accounts throughout the United States. Founded by Jacqueline Hazel in 1993, her kitchen based bakery was incoEporated in 2000 and moved from COMMONWEALTH OF MASSACHUSETTS ECONOMIC ASSISTANCE COORDINATING COUNCIL MASSACHUSETTS OFFICE OF BUSINESS DEVELOPMENT Malden to Salem in 2006 and is now headquartered in a 25,000 sq. ft. NSF Cook& Thurber certified production facility in Salem, MA. In 2006, Jacqueline's had 20 full-time employees and today has 75 full-time employees. Jaqueline's employees include maufacturing(S 19 per hour), warehouse($19 per hour) and management. The reason for this growth is simple: Jacqueline's dedication to create the best tasting, consistently outstanding products that fit the individual needs of Jacqueline's customers. Food service professionals are consistently rewarded with Jacqueline's gourmet superb quality. As a result, Jaqueline's annual sales now exceed $30M and we have outgrown our existing facility. Therefore, beginning in 2012, Jacqueline's began exploring expansion opportunities in the Greater Cape Ann area. PART 11. ECONOMIC DEVELOPMENT PROJECT A. Please 'indicate the-date a Letter of Intent was sent to 4/3/2012 the municipatity and cc: MOBD Regional Director I I �� B. When applicable, please identify the Economic Opportunity Area (EOA) within the project municipality New EOA Jacqueline's EOA Existing EOA 1. Provide a description of the proposed business expansion project including a&W 7- breakdown of investment required and the associated costs with a breakdown of the types,of expense (land, building, construction;equipment etc.)'.,Wh6n does the ��k applicant expect to: (a)to begin the project, (b) to complete construction, and (c) to officiatly open the facility? -4e The business expansion would include the purchase of a new 11,3 00 sq. ft. condominium abutting our existing facility at 96 Swamscott Road, equipment purchases to suppoprt this expansion, and building upgrades to our new facility. Building Purchase: $1,288,200 Late Q4/2012 Equipment Investment: $1,000,000 Q I/Q2 of 2013 Facility Upgrades: $550,000 Q2/2013 2. Does the current public infrastructure meet the proposed certified project's needs? Yes No 3. Is the appficant new to Massachusetts? No a. If not, where are the existing Massachusetts facilities? A�L, b. Will theproposed economic development project No require-and/or trigger.the closing or consolidation of any Massachusetts facilities or Che elimination of any other jobs currently in Massachusetts? If yes, plea�se explain. Economic Development Incentive Program 2 of 6 COMMONWEALTH OF MASSACHUSETTS ECONOMIC ASSISTANCE COORDINATING COUNCIL MASSACHUSETTS OFFICE OF BUSINESS DEVELOPMENT 4. What is the number of(a) full-time jobs to be created (b) full-time jobs to be retained and (c) full-time employees at other Massachusetts facilities? NOTE: These are the numbers that future job compliance will be measured against. (d)Describe how the applicant will create the permanent full-time jobs in Massachusefts'wiib�24 months iitftii`�eeeipt of the inienti�c(s) and how theiejotis- w Hi b d fo, e maintaine r at least 5 years. New Jobs Jobs Retained at Site Total Jobs in Massachusetts 35 120 (d) See above. Jacqueline's has a history of double-digit growth. When Jacqueline's moved from Malden to Salem in 2006, Jacqueline's had 20 full-time employees. Today Jacqueline's has 75 full-time employees with sales exceeding$30 million. Jacqueline's expects to maintain - and even exceed - our existing growth schedule in the coming years. 5. What actions will you take to recruit employees from among residents of the municipality and/or Economic Target Area?, In order to increase the percentage of employees who reside in the Beverly and Salem Regional Economic Target Area - and particularly the City of Salem, Jacqueline's plans to: advertise job openings locally in the Salem News. In addition, Jacqueline's plans to recruit applicants using the resources of the North Shore Career Center on Washington Street in Salem, N&A. 6. Is the project likely to result in another substantial and exceptional economic benefit to the Commonwealth? If yes,please explain. Yes. Project certification will result in a project investment of$2,838,200 and an increase of 35 new full-time employees in a Gateway City. These predominantly manufacturing and warehouse jobs will bring valuable new personal income tax to the Commonwealth. Finally, it is widely accepted that manufacturing has the highest employment multiplier of any industrial sector. The Massachusetts Manufacturing Extension Partnership (MassMEP) once contended that every manufacturing job indirectly supports 3.24 positions elsewhere in the economy 7. Will the project result in a spin off activity that will support Massachusetts based suppliers and contractors? If yes, please explain. M_ See above. The Massachusetts Manufacuring Extension Partnership (MassMEP) once contended thatevery manufacturing job indirectly supports 3.24 positions elsewhere in the economy. The $550,000 in facility upgrades should provide work opportunities to many Massachusetts based suppliers and contractors. 8. Please answer the following questions related to the project location. a. Will the applicant own or lease/rent the facility where Own. Jacqueline's affiliate MH- the business expansion/relocation will occur? LLC will be the owner of record. Both Jacqueline's and MH-LLC yj_ V, are joined together by mutual ownership. Economic Development Incentive Program 3 of 6 COMMONWEALTH OF MASSACHUSETTS ECONOMIC ASSISTANCE COORDINATING COUNCIL MASSACHUSETTS OFFICE OF BUSINESS DEVELOPMENT b. If leasing/renting, identify the developer/landlord and state who will be the taxpayer of record for purposes of paying local real estate taxes? c. If owning, will the applicant fully occupy the space?- d. If the applicant will not fully occupy the space, does it intends to lease/rent the r emaining space? 9. Certification for Abandoned Buildings. a. Does the proposed project involve the rencwation6� YesEl No H and reuse of an abandoned building? b. If yes or unsure, how long has the building been vacant or unused? (If known, state date). c. During the period of tinie that the building has been vacant or unused, what percentage of the building was vacant and unused? If the percentage varied during this time period, provide information for each change in the per'ce'nt or vacant space and the applicable time period. —10. a. Please indicate the length of Certified Proj ct requested. 5 years b. Please state which incentives the applicant is seeking: "State Investment Tax Credit Yes NoEl State Abandoned Mu—ilding Renovation Deduction` Local Real Estate Tax Incentive TIF 11. Please indicate the �6mpany?s outside of Massachusetts sales as a pircentage'of total sales and describe how the prolioi;a��ci:��ilirafter,tbc distribution impact.—K Jacqueline's annual sales are $31,198,168 with sales in Massachusetts of$19,150,567 (61%) and sales outside of Massachusetts of$12,047,601(39%). In-state sales distribution and out-of-state distribution has remained consistent for many years and the new project is not expected to alter the above numbers. 12. Provide detailed information on any other sources of public or quasi-public funding f that has been received or will he sought to'6ntribute towards the fman 1 0 proposed ikpiusion. The project will be conventionally financed through East Boston Savings. Jacqueline's did use the services of MassDevelopment in our original move to Salem in 2006. 13. Is the applicant seeking tax incentives from the Massachusetts Life Science Center? if y es, this my affect the potential EDIP 6�enefits. No Economic Development incentive Program 4 of 6 COMMONWEALTH OF MASSACHUSETTS ECONOMIC ASSISTANCE COORDINATING COUNCIL MASSACHUSETTS OFFICE OF BUSINESS DEVELOPMENT PART 111. LABOR AFFIRMATION Part A: As an applicant requesting Certified Project approval,Jacqueline's Wbolesale Bakery, Inc., affirms*(check box) that this business will not unlawfully misclassify workers as self-employed or as independent contractors, and certifies compliance with applicable state and federal employment laws and regulations, including but not limited to minimum wages, unemployment insurance, workers' compensation, child labor, and the Massachusetts Health Care Reform Law, Chapter 58 of the Acts of 2006, as amended. As an applicant requesting Certified Project approval, Jacqueline's Wholesale Bakery, Inc., affirms (check box) that this business will not knowingly employ developers, subcontractors, or other third parties that unlawfully misclassify workers as self- employed or as independent contractors, or that fail to comply with applicable state and federal employment laws and regulations, including but not limited to mininium wages, unemployment insurance, workers' compensation, child labor, and the Massachusetts Health Care Reform Law, Chapter 58 of the Acts of 2006, as amended. Part B:,, Within-the past five years, has the applicant or any of its officers, directors; f I d employees, agents, or subcontractors o which t e app, icant has I ow e ge, been U th6 si�bieit of(if yes;p ease pro (a) an indictment,judgment, conviction, or grant of immunity, including pending actions, E]Yes ENo for any business-related conduct constituting a crime under state or federal law; Details: (b) a government suspension or debarment, E]Yes MNo rejection of any bid or disapproval of any proposed contract subcontract, including Details: pending actions, for lack of responsibility, denial or revocation of prequalification or a voluntary exch-i— (c) any governmental determination of a OYes MNo violation of any public works law or regulation, or labor law or regulation or Details: any OSHA violation deemed "serious or willful?" Authorization and Certification IlWeMarc Hazel (names and titles) of the applicant business applyingfor "Certified Project"statusfrom the Commonwealth ofMassachusetts, Economic Assistance Economic Development Incentive Program 5 of 6 COMMONWEALTH OF MASSACHUSETTS ECONOMIC ASSISTANCE COORDINATING COUNCIL MASSACHUSETTS OFFICE OF BUSINESS DEVELOPMENT Coordinating Council hereby certify that 11we have been authorized tofile this application and to provide the information within and accompanying this application and that the information provided herein is true and complete and that it reflects the applicant's intentionsfor investment,job creation and sales. 1/we understand that the information provided with this application will be relied upon by the Commonwealth in deciding whether to approve "Certified Project"status and that the Commonwealth reserves the right to take action against the applicant or any other beneficiary of the Certified Project if the Commonwealth discovers that the applicant intentionally provided misleading, inaccurate, orfialse information. 11we make this c fif ae pai i er i ica ion u d h ns andpenalties ofperjury. Signi Ic Name Title DatJ t--�01�rc k-Z Name Title ' Dat6 Certification as to accuracy and Public Records Law acknowledgement: The signatories herby certify that the answers in this application and the documents submitted in support thereof are accurate and complete representations of the applicant. They also hereby acknowledge that, under the Public Records law if the Commonwealth ofMassachusetts, this application and all documents submitted in support thereof are public records under the provisions qfMassachusetts G. L., Ch. 4, sec. 7(26). Signe Id 9c) �s Name Title bate I H'a�,C- �a-Z 6 1<5- 1 1 1 Name Title Date' Economic Development Incentive Program 6of6 "SOLUTION WHEREAS, Jacqueline's Wholesale Bakery, Inc. (hereinafter"COMPANY") wishes to expand their gourmet frozen cookie manufacturing business located at 96 Swampscott Road, Unit 1, Salem, MA into 96 Swampscott Road, Unit 2 in Salem, MA; and WHEREAS, the CITY is willing to grant tax concessions in return for a guarantee of the purchase and renovation of an additional +/- 12,000 sq. ft. of manufacturing and warehouse facility space and the creation of employment opportunities for local workers; NOW, THEREFORE, BE IT RESOLVED that the Salem City Council hereby endorses the use of Tax Increment Financing as a tool to encourage economic development within the Site Specific Jacqueline's Economic Opportunity Area and approves the Tax Increment Financing Plan negotiated by the CITY and the COMPANY that provides for a tax exemption for a period of five (5) years, beginning with fiscal year 2014 in accordance with the schedule below: Fiscal Year Exemption 2014 100% 2015 80% 2016 60% 2017 40% 2018 20% Said exemption being in accordance with M.G.L. Chapter 23A, Section 3E, Chapter 40, Section 59, and Chapter 59, Section 5. BE IT FURTHER RESOLVED that the Mayor is hereby authorized, on behalf of the City, to enter into a Tax Increment Financing Agreement, a copy of which is attached hereto, with Jacqueline's Wholesale Bakery, Inc. (fitp of *alm A1a55arbU5ett5 Off ice of the Citp Council (Eitp �)all COUNCILLORS-AT-LARGE JERRY L. RYAN WARD COUNCILLORS PRESIDENT 2013 CHERYL A. LAPOINTE 2013 KEVIN R.CARR,JR. CITY CLERK ROBERTK.MCCARTHY THOMAS H.FUREY MICHAEL SOSNOWSKI WILLIAM H.LEGAULT TODD A.SIEGEL ARTHUR C.SARGENT III JERRY L.RYAN JOSH H.TURIEL PAULC.PREVEY JOSEPH A.O'KEEFE,SR. February 20, 2013 Mayor Kimberley Driscoll City of Salem Salem, MA 01970 Dear Mayor Driscoll: At a regular meeting of the City Council held on February 14, 2013, the City Council approved by unanimous roll call vote of I I yeas, 0 Days, 0 absent, a Resolution and to authorize the Mayor to enter into a Tax Increment Financing agreement with Jacqueline's Wholesale Bakery Inc., located at 96 Swampscott Road, Unit 2, Salem, MA. Upon executing the documents please submit a signed copy to the City Clerks office for filing. Very truly yours, (?tCRIL A. LAPOINTE CITY CLERK cc: Planner Finance Assessor SALEM CITY HALL-93 WASHINGTON STREET-SALEM, MA 01970-3592 -WWW.SALEM.COM RESOLUTION WHEREAS, Jacqueline's Wholesale Bakery, Inc. (hereinafter "COMPANY") wishes to expand their gourmet frozen cookie manufacturing business located at 9a Swampscott Road, Unit 1, Salem, MA into 96 Swampscott Road, Unit 2 in Salem, MA; and WHEREAS, the CITY is willing to grant tax concessions in return for a guarantee of the purchase and renovation of an additional +/- 12,000 sq. ft. of manufacturing and warehouse facility space and the creation of employment opportunities for local workers; NOW, THEREFORE, BE IT RESOLVED that the Salem City Council hereby endorses the use of Tax Increment Financing as a tool to encourage economic development within the Site Specific Jacqueline's Economic Opportunity Area and approves the Tax Increment Financing Plan negotiated by the CITY and the COMPANY that provides for a tax exemption for a period of five (5) years, beginning with fiscal year 2014 in accordance with the schedule below: Fiscal Year Exemption 2014 100% 2015 80% 2016 60% 2017 40% 2018 20% Said exemption being in accordance with M.G.L. Chapter 23A, Section 3E, Chapter 40, Section 59, and Chapter 59, Section 5. BE IT FURTHER RESOLVED that the Mayor is hereby authorized, on behalf of the City, to enter into a Tax Increment Financing Agreement, a copy of which is attached hereto, with Jacqueline's Wholesale Bakery, Inc. In City Council February 14, 2013 Adopted by roll call vote of 11 yeas, 0 nays, 0 absent Approved by the Mayor on February 19, 2013 ATTEST: CHERY7A LAPOINTE CITY CLERK City.of SWe.rn Yea and Nay,.Vote of C.ity,Co6ncil UP06 the Questio' of - n X, V; Nay Yea Pe.el.", Absent' t" 201`3,'� Jos'h H.-Turiel", ws �Nlichael os-n,,d" kE_ Tddd,A' Siekel Aithlu� Sament.IIF ' r C, Paul C.,Pre*e'y,,, 41 Robert K MXailhy -williamli. Leg* iu_ Josepk�A.'O*eefi'Sr 6 Thomas 14. Ou'rey Kevin R'Care; yanir PresidenC It T -jajS 0 A TRUE COPY TT ST 9;/ CIT LERK S A L E M, FA A S 8 TAX INCREMENT FINANCING AGREEMENT CITY OF SALEM, MASSACHUSETTS and JACQUELINE'S WHOLESALE BAKERY, INC. This agreement is made this—day of February, 2013, by and between the CITY OF SALEM, a municipal corporation duly organized under the laws of the Commonwealth of Massachusetts, having a principal place of business at City Hall, 93 Washington Street, Salem, Massachusetts, 01970, acting through the Mayor, Kimberley Driscoll, (hereinafter called "die CITY"), and Jacqueline's Wholesale Bakery, Inc., a Massachusetts corporation,with a principal place of business at 96 Swampscott Road, Unit 1, Salem, M-A 01970 (hereinafter called "the COMPANY"). TIiis Agreement will take effect beginning in fiscal year 2014. For exact location of site,refer to Attachment"Exhibit A". WHEREAS, the COMPANY wishes to expand their gourmet frozen cookie manufacturing business into 96 Swampscott Road,Unit 2 in Salem; and WHEREAS, the CITY is willing to grant tax concessions in return for guarantee of the purchase and renovation of the +/- 12,000 sq. ft. manufacturing and warehouse facility and the creation of employment opportunities for local workers;and WHEREAS, the Salem City Council resolved on February-L4, 2013, to allow the use of Tax Increment Financing as a tool to encourage economic development within the Site Specific Jacqueline's Economic Opportunity Area;and WHEREAS, the Salem City Council resolved on February 14 , 2013 to endorse the Tax Increment Financing Plan negotiated by the CITY and the COMPANY. NOW,THEREFORE, in consideration of the mutual promises contained herein, the parties do mutually agree as follows: A. THE COMPANY'S OBLIGATIONS 1. The COMPANY shall purchase and renovate a +/- 12,000 sq. ft. facility in at 96 Swampscott Road in Salem. For exact location of the "FACII-ITY", refer to Attachment, "Exhibit A." 2. During the life of this agreement,if the COMPANY decides to sell the FACILITY or the business or to otherwise transfer control of the FACILITY or business and/or operations thereof, the COMPANY shall give the CITY at least three months notice of said sale or transfer. Said notice shall be given by certified mail,return receipt requested, to the Mayor,City Hall, 93 Washington Street, Salem, Massachusetts, 01970. 3. THE CITY'S OBLIGATIONS I. The CITY shall grant a tax increment financing exemption to the COMPANY in accordance with Massachusetts General Laws, Chapter 23A, 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 2014. During each year of this agreement, the COMPANY will pay taxes based on the portion of the value of the FACILITY which is not exempt under the agreement. 2. The exemption schedule on the value of the improvements to the FACILITY works as follows: for each of the Five (5) years of this AGREEMENT, the COMPANY will pay taxes on a percentage of the value of the improvements to the FACILITY and be granted an exemption of a percentage of the full value of the improvements to the FACILITY. In year Six (6), the COMPANY will pay taxes on the full value of the improvements to the FACILITY. Fiscal Exemption Year % 2014 100% 2015 80% 2016 60% 2017 40% 2018 20% 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 fife 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 JACQUELINE'S WHOLESALE BAKERY, INC. Kimberley Driscoll, Mayor Marc Hazel, President TAX INCREMENT FINANCING PLAN 1. LOCATION A. Economic Opportunity Area (EOA): Site Specific JACQUELINE'S EOA B. Municipality: City of Salem C. TIF Zone: i. Map Exhibit A 6. Description (common) Common Desefiption The proposed TIF Zone is for a proposed 33,380 sq. ft.Jacqueline's Wholesale Bakery, Inc. C.`JACQUELINE'S'� manufacturing and warehouse facility and corporate headquarters at 96 Swamscott Road, in the site-specific Jacqueline's Economic Opportunity Area (EOA). The JACQUELINE'S project will be located on land currently owned by MH, LLC and Jacqueline's Gourmet Cookies —each bound together by mutual ownership. Specifically, the lots are identified as Parcels 07-0070-801 and 07-0070-802 in the Salem Assessor's office. JACQUELINE'S development is expected to utilize the existing utilities available on Swamscott Road for service to the existing facilities. iii. Narrative description of TIF Zone, Needs, Problems, and Opportunities The TIF Zone site is to support a 33,380 square foot industrial and office facility on Swamscott Road in Salem. JACQUELINE'S proposed investment in the development of the site is: Building purchase: $1,288,200 Equipment Investment: $1,000,000 Facility Upgrades: $550,000 Total Investment: $2,838,200 The proposed development generates more tax dollars, as well as, increased jobs. iv. Property Owners within the proposed zone MH, LLC and JACQUELINE'S intend to solely own the 33,380 sq. ft. facility at the proposed site. IL TIME—DURATION OF TIF PLAN AND ZONE DESIGNATION 5 years IILTIF ZONE & ECONOMIC DEVELOPMENT A. Discuss how TIF Zone is poised to create new economic development opportunities The designation of this property as a TIF Zone will create a number of new economic development opportunities. JACQUELINE'S intends to retain seventy- five (75) full-time employees and create at least 35 new full-time jobs. JACQUELINE'S anticipated$2,838,200 investment will increase the City's commercial tax base. If approved, this TIF Plan will demonstrate that the City can and will offer economic development tools to attract business. B. Discuss how TIF Zone will result in a net economic benefit to the local municipality Approving the proposed TIF zone will result in the following net economic benefit to the City of Salem: * JACQUELINE'S investment of approximately 52,838,200—a significant increase over the current base value. 9 JACQUELINE'S retention of seventy-five (75) full-time jobs and the creation of thirty-five (35) new full-time jobs. * JACQUELINE'S commitment to a good faith effort of employing residents of the Beverly and Salem Regional Economic Target Area,with a preference to hiring qualified City of Salem residents for employment opportunities that become available at the facility. C. Analysis of proposed and potential land uses ne project includes the purchase and redevelopment of+/-33,830 sq. ft. industrial and office building at 96 Swamscott Road. JACQUELINE'S is expanding their manufacturing facility and corporate headquarters in the space. D. Zoning in TIF Zone INDUSTRIAL E. Identify any parcels, public or private, in zone which are confirmed hazardous waste disposal sites, in accordance with Chapter 21 E, MGL N/A F. Identify principal commercial and industrial tenants within the TIF Zone JACQUELINE'S will occupy the entire +/- 33,380 sq. ft. facility. IV.TIF ZONE PROJECTS A. Private Projects 1. Proposed See Preliminary Certified Project Application 2. Planned See above 3. Provide documentary evidence of the level of the developer's commitment to construction proposed&required in the TIF project. JACQUELINE'S has a longstanding relationship with East Boston Savings Bank and is working through East Boston Savings to support project construction.JACQUELINE'S has annual revenues in excess of $30,000,000. 4. Budget for proposed project expenditures with supporting data. See Certified Project Application 5. Letters of commitment from local lending institutions See Certified Project Application. JACQUELINE'S has a relationship with East Boston Savings Bank. 6. Participation in other federal, state and local Economic Development programs and initiatives. JACQUELINE'S has applied for additional incentives through the Massachusetts Economic Development Incentive Program C'EDIP") through the Massachusetts Office of Business Development C'MOBD"). 7. Relevant business plans a. Time schedules for development Development is expected to be completed by the end of Q2, 2013. b. Returns on investment The company is anticipating expanding and growing the business in the new location with the manufacturing of frozen gourmet cookie products. c. Expected Increases in job Creation The project wig retain approximately seventy-five (75) and the creation of at least thirty-five (35) new full-time permanent jobs in five. d. Estimated tax revenues based upon increased valuation of the parcel US BIO's anticipated $2,838,200 investment will result in a significant increase in Salem's commercial industrial tax base, based on their commitment to pay taxes on a percentage of the new the value of the new facility for five (5) years and 100% of the taxes in Year Six (6). B. Public Projects 1. Proposed—N/A 2. Planned—N/A 3. Budget for proposed project expenditures supporting data—N/A V. FINANCING FOR TIF ZONE PROJECTS A. Anticipated Financing for Private Projects 1. Sources and Amounts for Proposed Projects See above.JACQUELINE'S is financing the project in collaboration with East Boston Savings Bank. 2. Sources and Amounts for Planned projects See above B. Anticipated Financing for Public Projects N/A C. Detailed projection of costs of public construction N/A D. Will betterment be used to finance any public-private projects, now or within the proposed fife of the TIF plan? No betterment will be used. E. If betterment or Special Assessments are part of the TIF Plan N/A F. Describe how private projects will be financed 1. Evidence of private financing commitments See above.JACQUELINE'S is financing the project in collaboration with East Boston Savings Bank. 2. Material assumption and requirements See above.JACQUELINE'S is financing the project in collaboration with East Boston Savings Bank. VI.TAX INCREMENT FINANCING A. Authorization to use TIF The attached City Council Resolution authorizes the City of Salem to use TIF in the Site-Specific JACQUELINE'S EOA. The City Council will vote on the Resolution authorizing the use of the TIF Plan for JACQUELINE'S on February 21, 2013 and the resolution will be forwarded when executed. B. Amount of proposed tax increment exemptions from property taxes, and applicable criteria The Proposed Increment Exemption is as follows: Fiscal Exemption Year % 2014 100% 2015 80% 2016 60% 2017 40% 2018 20% C. Maximum percentage of public project costs that can be recovered through betterment or special assessments in lieu of the incremental real estate taxes N/A D. TIF Exemption from property taxes 1. Term of exemption: 5 years The exemption plan works as follows: YE COMPANY PAYS 1 0% of increment 2 20%of increment 3 40%of increment 4 60%of increment 5 80% of increment ov E. Effective date of tax increment exemption Fiscal Year 2014. F. Betterment of special assessments N/A VII. APPROVAL OF TAX INCREMENT FINANCING PROJECTS A. Approval Process The City Council is anticipated to approve the two resolutions accepting the Certified Project Application for the project and allowing the Mayor to enter into a TIF Agreement with the company at their meeting on February 21, 2013. The project will then require approval by the EACC,which is slated to meet to discuss the project on Match 26,2013. B. Person or Board authorized to execute TIF Agreements The Mayor executes the TIF Agreement,upon approval from the City Council. C. Evidence of local approvals of TIF zone Pending City Council approval on February 21, 2013. D. Evidence of local approvals of TIF plan Pending City Council approval on February 21, 2013. E. Executed TIF agreements (any and all) Pending City Council approval on February 21, 2013. F. EACC approval of TIF plan Pending EACC approval on March 26, 2013. In City Council February 14, 2013 Adopted by roll call vote of 11 yeas, 0 nays, 0 absent Approved by the Mayor on February 19, 2013 a ATTEST: ERI A. LAPOINTE CITY CLERK ity of Salein,,� Yea and ay ote of Cit Upon the Questibn of, e, 21— c N y Counc 0 Q '14 Yea- Vay Preg.,q Ab�ient', ]Date z-2013: josh.H.-Ttirld; zf­ ichiel 9640wiki .-Siegel`W, -Todd A vy Airt&ir.C. Sar&n III 'Paul.0.,i`rev'ey, A, Ro" K.-,Ailc:Cirthy�. Wq % v 'vl J as e 0 lirA�0!K ei _f, Sr'� fhom' aa ureym .......... r �rn KeviiiR." arrar.._'_ 'Jerry L. Ryanj-4 Pr6idenf ,' "Totals AI COP TEST c Y,CLERK,,, CLEM 9 -MR RIM. Jn,� I- (Citp of balm Ina.55atbutettg effite of the Citp Council Citp JE)alf COUNCILLORS-AT-LARGE JERRY L. RYAN WARD COUNCILLORS PRESIDENT 2013 KEVIN R.CARR,JR. CHERYL A. LAPOINTE 2013 THOMAS H. FUREY CITY CLERK ROBERTK.MCCARTHY WILLIAM H.LEGAULT MICHAEL SOSNOWSKI ARTHUR C.SARGENT III TODD A. SIEGEL JERRY L.RYAN JOSH H.TURIEL PAULC.PREVEY JOSEPH A.O'KEEFE,SR. February 20, 2013 Mayor Kimberley Driscoll City of Salem Salem, MA 01970 Dear Mayor Driscoll: At a regular meeting of the City Council held on February 14, 2013, the City Council approved by unanimous roll call vote of 11 yeas, 0 nays, 0 absent, a Resolution and to authorize the Mayor to enter into a Tax Increment Financing agreement with Jacqueline's Wholesale BAery Inc., located at 96 Swampscott Road, Unit 2, Salem, MA. Upon executing the documents please submit a signed copy to the City Clerks office for filing. Very truly yours, OtIeRIL aALAPOINTE CITY CLERK cc: Planner Finance Assessor SALEM CITY HALL-93 WASHINGTON STREET- SALEM, MA01970-3592 - WWW.SALEM.COM Tax Increment Financing Projects at 96 Swampscott Road Tax Increment Financing (TIF) is an economic development tool used to create jobs and encourage business expansion. With TIF, a city grants property tax exemptions of up to 100 percent of the tax increment. In 2007, the City of Salem used TIF for three businesses at 96 Swampscott Road, a new industrial park, resulting in 153 quality permanent jobs being relocated or created. The value of the full taxation in five years represents a 61 to 119% increase in annual tax revenue generated from the current base value. The property tax exemption on the increment will be phased out over five years. The contact information, investments, and economic benefits for each business follows: Doyle Sailmakers Janet and Robbie Doyle (odoyle(d)doyiesails.com, rdoyle(a)doylesails.com, (978) 740- 5950) • $2.382 million investment in purchase and development, and equipment • Generation of$45,600 in ultimate annual tax revenue (an increase of 68% over the current base value) • Relocation of 31 existing permanent full-time jobs to Salem • Creation of at least 12 permanent full-time jobs in Salem • Job training for entry-level employees • Relocation of an internationally respected company that will bring visibility to Salem and high-end clientele to Salem hotels, restaurants, and other retail businesses • Assistance in revitalizing part of a formally abandoned, deteriorating structure I Falmer Associates, Inc. Stacy Ames (sames0falmer.com; (781) 593-0088) • $1.5 million investment in purchase, development, and equipment • Generation of$14,533 in ultimate annual tax revenue (an increase of 119% over the current base value) • Relocation of 4 existing permanent full-time jobs to Salem • Creation of at least 7 permanent full-time jobs in Salem • Job training for entry-level employees • Assistance in revitalizing part of a formally abandoned, deteriorating structure • Assistance to a 45 year old, family-run company that will contribute to the revitalization of Salem's industrial sector as a solid participant in the industrial and high-tech community Groom Construction Company, Inc. Dave Groom (dgroom(&qroomco.com, (781) 592-3135) • $1.725 million investment in the purchase and development • Generation of$30,539 in ultimate annual tax revenue (an increase of 61% over the current base value) • Relocation of 71 existing permanent full-time jobs to Salem • Creation of at least 28 permanent full-time jobs in Salem over the next 5 years. Projection of creating 22 additional permanent full-time jobs in the next 10 years. • Job training for entry-level employees o Assistance in revitalizing part of a formally abandoned, deteriorating structure Page I of 3 Deb Jackson ----—----------- From: Tom Daniel Sent: Thursday, January 24, 2013 4:00 PM h "v, To: Deb Jackson Subject: RE: Jacqueline's Hi Debbie, 1//? They purchased unit 2 for$1,288,200, added $1 million of equipment, and made $550,000 in upgrades. The consultant initially said a value increase of$550,000 (based on the upgrades) and then said the assessor would probably increase the value by only half($225,000). Does that seem realistic? Tom ............. ------------ ---------- - ------ From: Deb Jackson Sent: Thursday, January 24, 2013 1:31 PM To: Tom Daniel CDC)/ Subject- RE: Jacqueline's Hi Tom, We will miss you...last time you did the increments?l I don't know what th ey bought, what unit, what as�sessed? I need some more info, maybe from you? Deborah A. Jackson Director of Assessing City of Salem 93 Washington Street Salem, MA 01970 978-619-5607 From: Tom Daniel Sent: Thursday, January 24, 2013 11:43 AM To: Deb Jackson Cc: Lynn Duncan Subject: Jacqueline's Hi Deb, Attached is the revised preliminary application for Jacqueline's. (There are some cookie samples in the Mayor's office if you're looking for a treat.) They purchased another condo at 96 Swampscott Road, bought new equipment, and made some upgrades (see page 2). The upgrades equal $550,000 which is where any increased value would come from. The Mayor is submitting this to Council on February 5, and we need a increment estimate from your for that filing. I've copied Lynn because my last day with the City is next Friday, and she is helping to manage this project. Please let Lynn and me know if you have any questions. Tom From: Tom Daniel Sent: Wednesday, January 16, 2013 3:49 PM To: Deb Jackson Subject: FW: Final copies for your signature... 2/1/2013 07 0070 802 1 of 1 Commercial TOTAL ASSESSED:600,900 Map Lot Suffix CARD Salem !22373! PROPERTY LOCATION IN PROCESS APPRAISAL SUMMARY ����',f��,�i�Direction/StreeYCity !:��,use Code knis w",Land Sin�, W �1=6 0p, Land Value- 'Tot0la-lue�q- Lal:NiStripb6ti-1. se,"A t, MPSCOTT ROAD,SALEM 444 600,900 0.000 k 600,900 Le ;;�;:U i: 6d�r� le� OWNERSHIP bvider 1:MH LLC Owner.2: �,!!,Eii G 1 S Rif: i 0 oi-0 N'pre,E n banxtL6 t S i ie Z Toiil;W& 600,900 0.000 01 Sk 1,�.... Owner 3: -'a ixrr� L: Total Fatcell 6001900* 0.000 600,96 Patriot .'Strea 1:96 SWAMPSCOTT RD U2 V�Iue per SO ON Pnperdes hw. Street ON.= N-J" 'A , 3/21/06 Jwr�SALEM PREVIOUS ASSESSMENT Parcel ID FO7--0070-802 IqFR DEFINED �St/Prov MA I Cntryl T6]xYr Usb4 Items!1 LandSize.'k Land Value Totalvalue 4Asses'd Value Ndtes� :Data ;!;N 1�P n or I d'-#�J Prior to#2: Postal:0 1970 1 TYPO 2013 444 FV 600,900 0 600,900 600,900.Year End Roll 111/126/120121.1.. PRINT PREVIOUS OWNER 2012 444 FV 619,166 o 619,100 619JOO'�Year End R 11 12128/2011 ![Pdor to#;3: �20nvner 1:KCT REALTY TRUST- 2011 444 FV 619,100 0� 619,100 619,100,Year End 12/17/2010 102/01113 109,15 28, 1,� Owner,2:KEVIN G TOBIN TR- 2010 444 FV 619,100 0 619,100 619,100" 12/22/2009 Prior ld,'-#'-2 665660 6' 13.03 6H,000 665,000 YEAR END 12122/20 8 ST REV �Sbeet 1:96 SWAMPSCOTT RD U2 2009 444 FV Prior to#3: .2.00.8 -4-44 FV 665,000 0'. 13.03 665,060 665,()M 1212012007 Prior Id#1 Tvm/City SALEM - - !'SUProv:MA 2007 400 FV 3,714,600 331700 13.03 2,117,900 6,164,200 6,164,200 year end 12IM26613 12/04/12 10:51:02 .-Prior to#21 1 2006 400 FV 4,559,800 341300 13.03 1,897,800 6,798,900 6,798,900�yearend 12128/2005 n -,Pnor L�12 Poitat 01970 ortes i to#,,3:1 NARRATIVE DESCRIPT16N SALES INFORMATION T ISTRICT PAT ACCT. 22373 -TIASR,Map�'J D tia C, - 6-�Fact Distl This Parcel,contains.Acres o �% 16—ilhe—dill Sale Prn:6',mkV���Tst i�Ne f land mainly classified as rif Assoc P,CL Value Condo4n,d With a(n)Condo i nd Build1413uilt about 1986, KCT REALTY TRUS C205-01- 11/212012 1268820 No No ;2--'R&6I;bIstJ Having Primarily Metal PanI Exterior and Tar-Gravel Roof 96 SWAMPSCOTT R :466819- 4/2812006 695625 To No— r. Cover,with 1 Units,0 Baths,1 HalfBaths,0 3/4 Baths,0 ATLANTIC EXTRUP .79317436 2/1012006 Forclosure 3006000 No No dRb on:1 5500000 No No as Rooms,and 0 Bdrms APPLIED EXTRUSI :69284-349 OTHER ASSESSMENTS :;BldReason: Amount Co BUILDING PERMITS ACTIVITY INFORMATION Data A Number'&"",X DasicHiriE�,Amoumt q C/O,!1 Last Visit Fed Code 'F.Descrip 2T�.�qcornment*n, ipffl)ate Result Kkm PFIQTY I:ACTQP.R 1112912012 458-13 Inter-De 21,5%0 8/21/2006 Inspected JIM JIM Itern Code' 11,!",Descip Iteml Code -:-,Descr%l5,i4 518/2006 j4j-06 Inter Fi 14,4.8 5 C 7/2912006 bath,tolrb 7/2912006 Inspected J M 1. JIM ,I q�U iX INDUSTRIA 1100 313012006 785-06 Demolit 23,000 C 611/2006 demo concrete slab 611/ s JIM JIM "' I-—— I... - - -. - 11 1. �996 In pected i L P111 I' Exmpt rN,Flood Haz: C Top6� AND SECTION(First 7 n v) r4TA Use -111-11� LT "�er Be A Depth I ,-,I-I-21.1-1-1i------- I, Type!V Land Type ji,15 �T unit P4,. In �act Use Q R;unit Notes i- LUC P"a of Spec: 4 'In Priceunits s, 9 Factor-,�V I ul�1 Nei A V,16'�e lar s1F,, L�md God,;`1 Descri Mod No— .7don --,,A,Fact 444Condo-Ind 0 S IP q.Ft. Site 0� 0. 0.000 SCP 1.00 !�otal�ACMA 0 �-Jotal SFISM 0�00 �Parcel LIUCCo �scJSALM COMM PK Disclaimer:This Information is believed to be correct but is subject to change and is not warranteed. Database:AssessPro apro 2014 IMP7 EXTERIOR INFORMATION BATH FEATURES COMMENTS Kc EP TT CC H 'I FT '27 LE�� BANKRUPT PROPERTY PURCHASED IN 2006- ,. 0,71,1-T�peT Cando Ind Full Bath f:,=Sty Ht 1 1 Story -,,A B a th: APPROX 80%OCCUPIED-TO BE CONVERTED "(Liv)Units: I %Totat 1 3/4 Bath: TO CONDOMINIUMS FOR FY2008.MAJORITY Foundation:6 Slab A,3QBth OF UNITS SOLD PRIOR TO 07/01/06. Franne:2 Steel 1�1/2 Bath I _ff�!a Average Prime WaJIL 30 Metal Panl 1 A HBth:_Raft_ n',Sec Wall: 0 5 OthrFix: _Ega RESIDENTIAL GRID Roof SWct:04 Flat OTHER FEATURES 1st Res Grid I Descj Roof Cover.04 Tar-Gravel Kitfl 1 RafinT Level FY�LR DR D,K�F RR-BR FB HB�L,�O,j Other ,=v Color I R ��'AKitsl atinq'i i 71 il-e—Z Mesolt— 110ka, Frpl] I Rafinq�l Lvl 2 m UnSketched SubP�.� GENERAL INFORMATION [,,WSF]ue:l I Rating] CA—11,11,11 FFL:11130. ,-,-GradeC -A erage CONDO 1111 ORMATION L00'r Wear Bit:1986 :Y Eff Yr BIt rLocation: Totals; RM7§.- FBIR�] Feathfl [7HB]i Alt Alt LUC: '13otal Units:U2 ,bJurisdict: Fact:. Floor.1 -Ist Floor REMODELING RES BREAKDOWN 6fist Mod] 0�.%"Own:6.7 Exterior: I No Unit RMS�,,,�,,BRS: FL Lump Sum Adfl Name: 41 Interior: INTERIOR INFORMATION DEPRECIATION :Additions: . ............ VjAvb-Ht/FL:18 1�5Phy!tondjAV -Average 20.% 1 K[tchen: Prim IntWaI01 Drywall 1[!�-,Functional] % Baths: Sec Int,WaII: % Plumbing: ....... r�q,'Partifion:T Typical % -.FE]ectric Is' Tota Prim Floors 08 Average hNkOvbmde:j % -P Heafing: Sec Floors: ilk! 20.8% 4 General. SUB AREA SUB AREA DETAIL I �:Code:Hkq Description Area SQ 2_,k6t6-'AV.��,��UndeorValde�li�Sub %2k-ZFF kbi Bsmnt FIr, CALC SUMMARY COMPARABLE SALES -M,, escnpqj:, 'Bsmnt FFL Usb] T �e%�!!L :�Nhgv Basic$/SQ,165.00 Typ Date Sale Price Gar: First Floor.... - 11,130� 57.710 I.&I,Eta ctric: 3 -Typical Si�e 0.88984728 In 2 -Typical ;:pj.n,44 Const Ad.�0.99768233 Intvs Ext.S �-Em'r,�b ,FAdj$J SO:57.706 P Heaffuel:2 Gas TO Other Features:17493 �i Heat jpe:07 Unit Heaters Grade Factor:im #Heat Sys: 1.14999998 -.VaIj0 [�WtAv$/SQ. I AvRate:� Ind �0/6,Heabid�too M-W;�k ELUC ftaZor 1.00 642,268 Solar HW.,NO �LmhhvpPkf Ad �758725 J§61,Juris.I Factor. "'Vau 111301 Gross Area] 111301 Fin real 41430 dj Total 11 u Fin.53.99 1:Size Ad] ;,%,ComWal %Sprinkled�100 De 'ec" �S 6�ibl Fearturesdo 'Wal/Su Net:53.99 c &�pre iated�T IMAGE =911V Final Total'1600900 I Val/Su SiAd 53.99 ne SNARD ITEMS papr n7-0070-802 o I dJFactjUJuns.Value, ............ E- T:0:ta_S��kia[Featue�s 0070 L L /-R-j 7 -f3-�- �74 C2J 1 115,0-Y-P 6S t5 , -0 t�.rA 9 31 , 4D Lro GVD -+e,n -Pj rq"-P- VA-OL,� I� _ �' � - � - - Lynn Duncan Subject: FW:TIF missing info tymm Lynn Goonin Duncan, AICP Director of Planning &Community Development 120 Washington Street, Salem, MA 01970 T: 978-619-5685 F: 978-740-0404 17 From: Deb Jackson Sent: Friday, February 08, 2013 8:59 AM To: Lynn Duncan Subject: RE: TIF missing info ist year base value$800,000 If it was$600,000 the taxes would be$18,876.00 FY2014 $800,000 estimated t x$25,168.00� Deborah A. Jackson Director of Assessing City of Salem 93 Washington Street Salem, MA 01970 978-619-5607 From: Lynn Duncan V Sent: Thursday, February 07, 2013 5:25 PM To: Deb Jackson Subject: TIF missing info Fiscal year Exemption Incremental Exempted Base tax bill Total annual F assessed value pr9perty taxes taxes paid 2014 100% so 111\ !t /- 25,168 2015 80% $55,000 $1,730.30 2016 60% $110,000 $3,460.60 / 2017 40% $165,000 $5'190.9�y 2018 120% 1 $220,000 IT6 I 2019 0% $275,000 Deb, I thought it might be easier if I shared this chart with you and you could see where I am missing information. I can add the total taxes paid once I have the base tax bill on the current$600,000. We can add a notation that the current base assessment will likely increase. LENOX The Origin u ;1�*Tm T, nt4 THE LENOX HOTEL IN BOSTON'S BACK BAY 61 EXETER STREET AT BOYLSTON BOSTON MA 021 6 HOTEL CATERING 617.421.4906 1 HOTEL 617.5B6.53C)Q www.lenoxhatel.com Estimated Value of EDIP Local Tax Incentives for Groom Construction X gg�m NP an-� MMNX11M, Ale ;11 K UL ,f E t UNWIT K11 2008 $21.33 $479,078.00 $10,218.73 0.8 $8,174.99 $0.00 $8,174.99 $18,� 77.00 $21,020.75 2009 $21.33 $491,054.95 $10,474.20 0.6 $6,284.52 $0.00 $6,284.52 $18,� 77.00 $23,166.68 2010 $21.33 $503,331.32 $10,736.06 0.4 $4,294.42 $0.00 $4,294.42 $18,( 77.00 $25,418.63 2011 $21.33 $515,914.61 $11,004.46 0.2 $2,200.89 $11,00 $2,200,811 $18 77.00 $27,780,57 2012 $21.33 $528,812.47 $11,279.57 0.1 $1,127.96 $0.00 $1,127.96 $18 7.00 $29,128.61 2013 $21.33 $542,032.78 $11,561.56 0 $0.00 $0.00 $0.00 77.00 $30,538.56 *Assumes annual increase of 2.5%in assessed property values* TOTALS. $22,082.78 $0.00 $22,082.78 $113, W2.00 $157,053.80 Base Value FY06 $ 889,672 Purchase Price $ 1,125,000.00 Value After Building Renovation* $ 1,368,750 Cost of Improve ments $ 600,000.00 Increment in Value $ 479,078 Total Investment $ 1,725,000.00 Walue determined by taking 95%of purchase price (1,068,750)plus 60%of cost of RE improvements(300,000) Estimated State and Municipal Tax Benefits� EstUle "M , IR MA, A $86,250.00 $0.00 $22,082.78 $108,332.78 ITC is calculated by Multiplying the Certified Project's Private Investment Number by-�,000+600,000 1,725,000) The value of the 10%ABTD, if applicable, should be determined by the Company's Tax Professionals. Lynn Duncan From: Mark Cote <mcote@landmarkgrp.com> Sent: Tuesday, Februa�y 26, 2013 9:07 AM To: Lynn Duncan Subject: FW: i-9 letter FW:Scan from a Xerox WorkCentre -----Original Message----- - From: Lucille Frecdo [mailto:LucilleFreddo@"acquelinesbakery.com] Sent: Monday, February 25, 2013 5:41 PM To: mcote0landmarkgro.com Subject: Re: i-9 letter FW: Scan from a Xerox WorkCentre Hi Mark, Are you available tomorrow afternoon at 3:30pm/4:00pm?Anytime after 3:30pm will work for me. Thanks Lucille Freddo Quality Assurance Manager Jacqueline's Gourmet Cookies 96 Swampscott Road, Unit 1 Salem, MA 01970 P 978.744.8600 C 617.901.5377 F 978.744.8622 lfreddoL@Iacqueiinesbakery.com www.'acque inesbakery.com On Feb 25, 2013,at 5:16 PM, "mcoteCaDiandmarkgrp.com" <mcote@landmarkgrp.com> wrote: >Yes. May I call you tomorrow? > Mark Cote >Sent from my Wireless Phone •----- Reply message----- • From: "Lucille Freddo"<LucilleFreddo@'acquelinesbakery.com> • Date: Mon, Feb 25,2013 4:57 pm •Subject: i-9 letter FW: Scan from a Xerox WorkCentre •To: "Marc Hazel"<mhazel@oacquelinesbakery.com>, "'Mark Cote' (mcote@landmarkgrp.com)"<mcote@landmarkRrp.com> >Cc: "Jack ONeil"<'oneil@macquelinesbakery.com> 07 0070 802 1 of I Commercial ASSESSED: 600,900 Map Lot Suffix CARD Salem !22373! PROPERTY LOCATION IN PROCESS APPRAISAL SUMMARY T, �,�Use Code Buildinq Value v",Yard Items�INO Land Size�,:`;`��Land Value�WM,Jobal Value_4.L 444 600,900, 0.000 600,900 Le�al OWNERSHIP .......... OWneir,i�MH LLC Owner,2:1 tintbro 00,91 Lot SIzWA ,Owner 3: ptal Card 600,900 0.000, 6 30 600,900 Patriot Street 1:�6—S 0.000 6UU19UU WAMPSCOTT RD U2 _ ,Re: spQat6 ,,Street2 1,11'�ASour(*Jlvlarket Adj Cost J� �ffzln �R�.5Total Value per SQ unit iCard:153.9 :el:53.99 -K Pivperfies fitc. Twn, y SALEM PREVIOUS ASSESSMENT Parcel ID 107-0070-802 —108/21/06 USER DEFINED Prior I SV MA 1�Cntryl Jax Yr i,Use;,i4art-A�';Bldg Value,A,!qYrd Items E Land Siie Land Value Jotal Value,!FAsses'd,value iouW Notes Date�',kn'4 #1 ,WP,0ist 01970 :J��_,Type:l 2013 444 FV 600,900 0 EPrlorld E#2� 60.0,900'... 6.00,900,Year End Roll 11126/2012 P�RINT 2W2 444 FV 619,100 0 PREVIOUS OWNER 619,100 61.91,11010.Year End Roll 12128/2011 0a P not Id#3:1 Owner:1 d KCT REALTY TRUST- 2011 444 FV 619,100 0 §19,100 619,100 Year End 12117/2010 -� 5/t �Rnbrdd.#,I; 2010 '444 FV 619,100 -0 619,100 619,100: 12122/2009 02/25/13 14:06:12 )1 Prior,1 2: Niner2:1KEVIN G TOBIN TR- �21e3 5b­619LI�96 SWAMPSCOTT RD U2 2666 144 FV 5H,006 6- 113.031 665,000 M,000 YEAR END 02212008 LAST REV �Pdo 1 '3: 20013 444 FV 665,000 0 13.03 665,000 665,660 imkow -1�—— 1 SALEM - - --timelpoor #I, TWn1C F:5� ilp 2007 :400 FV 3,714,600 331700 13.03 2,117,900 6,164,200 6,164,200 year end 1211112006 112/04/12 110:51:02 �Pi Stprov�MA I Cnhy] 2006 400 FV 4,559,800 341300 13.03� 1,897,800 6,798,900 6,798,900 year end 12/2812005 ridt'Id#2': Postal:01970 scortes �Pnor-ld#-3: NARRATIVE DESCRIPTION SALES INFORMATION T DISTR PAT ACCT. 22373 ASR I—," @ Giantorj� 2, �Sale C gl� as This�pkncelfixintains.�cresofianc!Jnainly classified' Dist ;,. i � 1 11 :,�5 �i '1112)2012:' g 0-Ut1986 ohd&ihb With e(n)(36lidloind'Su41n''Built ab KCT REALTY TRUS ' C205-01-- 1268820 No No Having Primarily Metal Part Exterior and Tar+Gravel Ro�f 96 SWAMPSCOTT.R, 4B68.119- 4/281210061 6956.215.1.4o 'No. Cover,with I Units,0 Baths,1 HalfBaths,0 3/4 Baths,0 ATLANTIC EXTRUS 79317436 2/1012006 Forclosure 3000000 No No tRoorns.'and 0 Bdrms, APPLIED EXTRUSI 3928�M 5/18/1998 5500000 No *No OTHER ASSESSMENTS BUILDING PERMITS ACTIVITY INFORMATION � Umber urf,,:Dbscrp,-F�qK'Amount��C/O�:!!'Last Visit Fed Code',,�F.DeS4 6-,�S I J&',Co,mmen ':M- i:L Ciafb�,N!i:HflKM±-1& PF:PTV PArTOPQ 11/29/2012 458-13 Inter-De 21,5500 8/21/2006 Inspected JIM JIM Itern-If�CWe Descip,,,,,7 %'? Item Code a�Desdip'j-' 5/8.1.26.06 897-06 1 nter F 1 14,411 7/1 2.91.200.6 be.I I h,to bin 7/29/2006,lnspected., ill M. JIM z INDUSTRIA 1100 N,U A� 313.0/2006 785-06 Demo I Iiii 23,000 C 6/112006 demo concrete sl.ab I O'�, .:I_ 11.1 11 11....... 611/2006,lns ec im JIM 7, P, mn,� pals�C&sus: J Exmpt ".,-FloodMaz: . ......... Street leaffilici VWM:��-- ------------ -- - -------------77_q7-777--- Pic '9-1",�I_4m I inesoniv) LW V Depth 5 Aft3if eo� �WUnft-Type'� �'P'nc 6��Neigh— , ,Negh pP Description-T. No of Units :`�-*,'Neigh-- �,;so fxv ­'K,v kFact— btE Mod 0'1 alue�W 'Oh Influ, g�_-_,!, 0" lffill� D V, 444 Condo-Ind 11RA 0 Sq.Ft. Site 0 0. 0.000 SCP 1.00 Pi �Joal AQ�Hk.jo [,UTpt6'I SFI*10.00 rcel-LUCiI444 iCondo-Ind Ili Prime NB CekJSAL�COMM Spl!Cr6di� Disclaimer:This Information is believed to be correct but is subject to change and is not warranteed. Database:AssessPro apro 2014 EXTERIOR INFORMATION BATH FEATURES COMMENTS SKETCH '4x""AIM:27 Condoind Full Bath Rating BANKRUPT PROPERTY PURCHASED IN 2006- ,?�m Sty Ht:1 -1 Story �rA Bath: Rating: APPROX 80%OCCUPIED-TO BE CONVERTED X(Liv�'Unit 11 1 11_6,T6taI:j1 1 3/4 Bath: Rating TO CONDOMINIUMS FOR FY2008.MAJORITY 5 Rati ,Foundatiop:,6 -Slab A 3QBth UNITS SOLD PRIOR TO 07/01/06. --Q6 F 2 -Steel �1/2,Bath:1 Rati Averaqe Prime-Wall:30 Metal Part ?A:HBth: Rating� 'jIUtN r1AL GRID 7—SW-W—all jFix' LEak Kt, Roof Struct:04 Flat OTHER FEATURES lit Res Grid I Desc'm al'* FY�'LR DR-D K�F 'R fG 04 T +G R"RR1,,BR'FB HE�L�,�O) G_vK-'. Taf+Gravel Ag�Kiti�j 1,��Rating �o�� c gol,w' o'lor Iff A Kits] Rqtlng�� aMm/Desk: _11. aK - :: 11,FTI-1 I"Rating:: LV12 UnSkeched SubAmas: GENERAL INFORMATION I WSFlue'j �Raffng:: FIF L 11130. Grad(i C -A CONDO INFORMATION 0 er, erage ,Year Bit:1986 .�Eff Yr:BItj I"�e Locati Totals TRJvsd FBR_s� FB—aths] FHB]l �Total_Units 2 Alt LUC: 4i'4A'�M � VJurisdict. �Fad:. 1 st Floor REMODELING RES BREAKDOWN -ConstMocit pq%Own716.7 NoUnitA:RMS BRS FIC 6,Exterior�l Lufinp SumAdj: I Nirpe:j m Interior INTERIOR INFORMATION DEPRECIATION �Acclitlbnsf .... 'Lhrs!Conc:jAV -Average 20.% tc an: Avg HVFL 18 17 Fu� % Phm,lnt,Wa 01 -Drywall 1�" ctional: 9ec Int y1all: ',-��Economic, % Plumbi g: -!�RA Partition T Typi all eciat; % "'Elec c: 7m�` FS,17-- Prim Floors:08 Avere a 6 4 Override: % A 6ain Sec Floors: % % i�' "" . —. I I I SUB AREA SUB AREA DETAIL Bsmnt Flr: % RABLE SALES F,Coce 6,�,'�:Desdrptlon Area SQ—�"t�R@tE�-,AVfr',�Undepr,Value !,Sub Dektip 4;,06 rTeni� FFL First Floor 11,130 57.710 CALC SUMMARY COMPA 642,268 Type� Bsmnt Gar. Basic$/SO:65.00 Rate;% �,-,Parcel ID LTyp rDatsi Electric:3 -Typical 0.88984728 1 Insulation:2 -Typical Cbnst�d�0.99768233 EL-Intvs Ext:S W&M-`:�'fAdj$/ SO 57 706 ....... Other Features:17493 ,11,eat�bel.2 -Gas 5 Heat�T 07 Unit Heaters 40_!'�,!Gracle Factor:1.00 4.Heist Sys: '-NeitIhIorh fI14999998 N-et'Sk at ched-Area 100 [_WtA�j/_SQ:j I-AvRated I IndVaI10 64 .... __ '__'%AC:110 UC M - �P , 2,2�68 ;L%Heated: FaGtOr 1.00 ,.--Solar HW- Central Vac:l NO TotaI71758725 'WrJuris,Factorl Su Fin:53.99 size Adl 111301 Gross Areal 111301 Fingreal 11 30 a' Com Wal %E S acial Features7lo -�Val/Su Net:53.99 VSu S riw"".�Final Total:1600900 I Val/Su Wd 53.99 Sfy PARQrl in 07-17)(170-A172 ��d��M k;,A-YIS,-Qty Size]Dim'._'.�Qua],Gon Year Unit Priw__a'�'t D/S Dep_-a LUC zpdl Fact,NB Fa 4&APD(ValUi���� ... ........ .... ta LTotal Yard lt6niij WT—otal] RR-Tobil Sk let Feattieil 07 0070 802 1 of 1 Commercial TOTACASSESSED: 600,900 Map Lot Suffix CARD Salem 122373! PROPERTY LOCATION IN PROCESS APPRAISAL SUMMARY ,!�,,Direcficni/Street/Clty �!Use Code�u,A Buildiniq Value 4,`-,'�Yard Items Laid Size Land Value NW,-,,-A,',TotaI Value' D4crIptjon',1' SCOTT ROAD,SALEM �444 600,900 0.000 ovvlvvv OWNERSHIP ......- ,Omm6r 1:MH U-C ,Owhe(2� TOR!— R, 600,900� 0.000 1 N-dff'Enterbd Lot SiZd 0 Street 1:96 SWAMPSCOTT RD U2 T�101611 M:120A, Owner 3: 1z 600,900 000, Patriot 77,—, SourowlivarketAdj Cost �MAFIA-Fotal Value per SO unit/Card:153.99 1warcerl *,Land Unit Tjp6j .1 Prvper&s hLe. i/12110 10 TWn/City:SALEM PREVIOUS ASSESSMENT Parcel ID 107-0070-802 USER DEFINED Y St/Prbv:MA Xntryj n Qcc� lue 3.,",Yrd Items i Land Size!�LandValw—�iTotal VaI60 Asses�d Value ��Notea Prior Id#1: Tax Yr Use Cat V,-E�Bldg Va P.'Postal:01970 h I YPO 2013 444 FV 6001,9010 0 600,900 600,900 Year End Roll 11126/2012 PRINT Prior Id#2: PREVIOUS OWNER 2012 444 FV 619,100 0 619,100 619,1 01)'Year End Roll 1M13/2011 Pribrld#3: if,Date'�" Time 1� MON�ner f:KCT REALTY TRUST- 2011 FV 619,100 15191100 619,100 Year End IM7/2010 02125113 1 U111111 4:00:5-0 Owner2:KEVIN G TOBIN TR- 2010 444 FV 619,100 6 619,166 69,100 1 2122/2009 �,Prior Id 4 2: Stre Pr— .Street 1:96 SWAMPSCOTT RD U2 2009 444 RS,600 6: 1103 665,000 665,000 YEAR END i;mmn LAST REV — k08 444 FV 665,000 0, ini 665,000 665,000 MOON Pdarld#I Twn/Ci :SALEM T S�t/pr 2007 466 FV 3,714,600 331700- 13.03 2,117,900 6,164,200 6,164,200 year end 12)11/2006 112104/12 1 10:51:02 7�� t/Pmv:MA I Crtryl P104/il2l Ph 'Post 2006 400 FV i 4,559,800 341300 13.03 1,897,800 6,798,900 6,798,900 year end 1Z(MzUUb Postal:01970 'Lrt� �n orld#;3:1 NARRATIVE DESCRIPTION SALES INFORMATION TAX DISTRICT PAT ACCT. 202M3 11�ASIR M6a,"I in e-F �.'-,Ass This Parcel contains�Acres of land mainlyclassified as ffiz,Gr to `!�Lal,Ref L'�,Type,,PV,,Date Code, �,,Salel?rce: ��LV,,�,Ts ot Ist KCT REALTY TRUS :C205-01-� 1112/2012 126882ONo :No ;���ondo�f�d'witha(n)�Co�dolhd,Buff�in�'B'ul'lt'ab'out-1986 o' 96 SWAMPSCOTT R 466819- -R'60!Dise, Having Primarily Metal Pent Exterior and Tar-Gravel R of . .. ... 4128/2006 695625 No No Im -9- Cover,with 1 Units,0 Baths,1 HaIfBaths,0 3/4 Baths,0 ATLANTIC.E.).J.-RUS :79317436 .2111.0.12006 :Forclosure 3000000'No-Al.o.. Rkykf EoQms and 0 Bdrms, APPLIED E)(TRUS1 :69284-349 :5118/1 998 5500000 No No -13106ssonr OTHER ASSESSMENTS A :�,Amvunt gode,;F?�,�Deicdp1No,.:,-4C- 3UILDING PERMITS ACTIVITY INFORMATION -.:L* ',WAmounro,C/o - ,VLNumber.,, . Nsc4iRz ?LW VisiF=F6d Code�LR�Desddip Commew�-.-Wi,. Date aE:RTY FArTQP.- 110/2012 458-13 .Inter-De 21,5500 8121/20061nsp ctt:dd im Item rCode Des6iia P-�' "Code 1',%: 'mem� P:c IM JINDUSTRIA 1100 w�U,F.i 5118/00.61 Inter n 14,485C bath,tobin 712612006'ns im im Z;,i 1 3130/2006 785-06 :Demolid 23,000 C 6/l/2006 demo concrete slab 6/112006 Ins im 'JM Ft n� Exmpt '4t Flood Haz �Tdlpo street CATA —r6frlc t 7 lines oniv) I - Depth 1;11� Ig eig a h uc Units U, a �cnpfion- N 4- - nd Neigh-t,4, *2,19- ATIm , - 1-1�;� ",RN Or PriceunitsJ P-1�� P, J of Eas 'n- hflu :6 a' i Unit Type '-'La -1�4 Fad ��.:,�J , , - Vi:1� E od., iA-5 ....... 444 Condo-Ind 0 Sq.FL Site 0 0. 0.000 RP 1.00 I Spi Cr4dit J !"Tobal; J61al AC/,Hk.10 I�;Total So/sly:10.00 �Condo-Ind escJSALM COMM PK Jcitalj 1,Primb:NB b Disclaimer:This Information is believed to be correct but is subject to change and is not warranteed. Database:AssessPro apro 2014 EXTERIOR INFORMATION BATH FEATURES COMMENTS SKETCH 7 a:27 Condo Ind I Full Bath BANKRUPT PROPERTY PURCHASED IN 2006- ry S'Ht:1 1 Sto 4ABath:_�� APPROX 80%OCCUPIED-TO BE CONVERTED TO CONDOMINIUMS FOR FY2008.MAJORITY 4 Uv Unitsr I "T.T&61:11 I 3/4,Bath; OF UNITS SOLD PRIOR TO 07101/06. Fbundafioir 6 Slab �'A 3QB1h jRal� -�X-m ;�R6ti ge , �Frame:2 Steel 1/2 Bift 1 Avera Prime Wall:11 Metal Panll h'A'M th: 1 1% Ctl­jFjj: RESIDENTIAL GRID 'Ist Res Grid 1"Des (Roof'Struct 04 Flat OTHER FEATURES Level 2 FY 1IR DR,D'K:FIR,RRI BR FB HB,'�L- 0 1 Roof Cover.04 Tar+Gravel 5"K!ts C I I or: other'� GENERAL INFORMATION I WSFlde:l 11 Rating] UnSlkeched SubA�s: CA 1 FFL:11130. C -Average CONDO INFORMATION o er YearBit:1986 _�E#YrBlt NK-i-Lbeaticin: B To—tals,;_�R_Nls] =Rs-, F-8 a_tfi s] HE3 I AItLUC: tkWRAIt%7 4.,Total!Uniti:U2 Jurisdid 1;1-.�.!��,.,��,Fad. V " E�QdFlo6itl -1stFloor REMODELING RES BREAKDOWN :W".Corsr(Mcd: %VOwn.6.7 4�Exteflor. I No,Unit�R.RMS op-BIRS�:�T[Lo! 7-- ,LUMp Sum Adj -i�h Interior. INTERIOR INFORMATION DEPRECIATION Additions: ;No ; ,,�:Avg Hl/FL 18 11,PhysCond;JAV -Average % -Kitchem: % "0 Prim Int We 01 -Drywall -Functional _:"±Baths� "u Sec Int Wall: % -I'�Ec6noinni&. % 0'0 Partition:T -T ;4,Soeclal: % �,�Electric: E ical Prim Floors:08 -Avera oe Override: % ��Sec.Flciors: o/. -F-,7-------T % �Geneal: SUB AREA SUB AREA DETAIL 11,130 57.710 % faluhi' _N h Code-v',,?'�H�Descripton ,:P�Area:'SQ"t.Rate�AV,,,&Undepr,\Ea Birrunt Fir: CALC SUMMARY COMPARABLE SALES 12',u216i' i Aea,pUslbl-'� �,,,IlNmType j;,�q` [§ubq�% FFL First Floor 6, n- 13srant Gar: "�-hffl��Basic$LSQ:65.00 p;�qjL,!Date�wg:;�j Sale Price i'kM; �!:a-WElectric 3 -Typical �0,0:;�MkStze Adj.,0.88984728 *Insulatiom 2 -Typical Coinst Adf:0.99768233 V,'��Intvs,E)d:S $/SO:57.706 %'Heatf6el:2 -Gas �kOk�(Faatdres:17493 H eaters �!-�PGrade Factor:1.00 eatTYpe:07 -UnitH Heat S�s: il Neighborhood Inf 1.14999998 �%Ac Nei Skei ich6d AreaJ11,130 10 al: 642,268� liWtAv$/SQ:l I AvRate:1 I Ind.Vi[10 - Heated:too to h'k LUC Factor:1.00 0i 11iin real Solar HW:NO Central Vac:NO Size Ad 11 130,Gross Areal j�ftA 111301 11 Adj T6tal:1758725 UWJuris'Factoc %Com wal %Spdnkled 100 De e iatin,1,1,17M Special Features*0 c 0 IMAGE qft Final Total:600900 1 Val/Su SzAdJ53.99 D-epeciated Tote 0910 1 " �1 triot SfYARD_ PAR' 07-0070-802 �ttN N,y1s* I FCodeMM mi"Size/Dim �R:, ual Con LYear J I�P UnitPri6e7i-,-,D/S,Dep p,LU-C 4 Fact AB F440�4�Value urkod!JlFact 2','�Juns� 3 Jobal Yardilcowl =jm '_,Tcl Special F6ajdi�jj -Totaij 07 0070 801 1 of 1 Commercial TOTAL ASSESSED: 1,190,100 Map Lot Suffix CARD Salem 1223721 ITO NF__� LOCATION IN PROCESS APPRAISAL SUMMARY -1wBuildinq Value:�-?!�,,,Yard Items OV[.�Land Size Land Value Total Value I 110�1 ,,,�%�,",�'���DireGtion/Street/City��, r Use Code,n,I Legal Pe��cripticm, qjr�� 1 961 ISWAMPSCOTT ROAD,SALEM 444 1,190,100, 0,000 1,190,100 OWNERSHIP ?.P GIS R Owner 1:JACQUELINES GOURMET COOKIES Owner 2: 2 Total Cam 1 1,190,100 0.0004 1,190,100 �DGIS,ReV',,�,,�, L y� CWn_er3 T6� '!r, t Street 1:96 SWAMPSCOTT RD U 1 tal'Parodl, 1,190,100 .000, 1,190,100 ',m&',F,,LotaI Landi 77-i­_n_,_ g Datnot L 41 . �!�,InfSp Datel,�i A p upe Q�!:Total Value per SO unit/Card:153.49 LandUnitType I ilks Inc. Source:JMarket Adj Cost Lw tParcel OJAV :! :Strdet2: -105/06108 SALEM PREVIOUS ASSESSMENT Parcel ID F07-_0070-801 UbLK DEFINED MA J�CnfiyJ 1 own 06&. 1 �,�Notes "4-tm Tax�Yi 1 Use 1,Cat Bidg Value'N6 Yrd Items Land Size,'Land 6,t Asses'd Value z�re Prior Id#1: 0;�Postal:01970 1 ype:1 2013 _444 FV 1,146,300 0 1,146,30011, 1,1,46,300Ye,arEn­dR.oI1, Il/126/2012 PRINT Prior Id#2: PREVIOUS OWNER 20112111-4441 101� 1,181,100 1,181,100 Year End Roll 1212812011 Pribrid If 3; Owner 1:96 SWAMPSCOTT ROAD LLC- 2011 444 FV 1,181,100 0. 1,181,100 1,181,100,YearEnd i2J17/2010 prof ld#1� OWper2:ATTN:THE DRUMLIN GROUP- 2010 444 FV 1,181,100 01 12/2 02/25/13 14:00:03 1,181,100 1,181,1005 2/2 P66T id,4 Street 1:600 LORING AVENUE 2.066 444 N 1,268,760 6 13.03 1,268,700 1,268.700.YEiNR END IWM666 LAST REV i r 10�3: P P 1,266,100 0 13.03 1,266,100 1,266,100z 12/2012007 e-1 �Priorld#1 -Twn/City SALEM I I �.-1-1-1� '�!T StRrcm MIA 2007 400 FV 3,714,660 331700 13.03: 2,117,900: 6,164,200 6,164,200year end 12/11/2006 01/29113:-�]�1�.L21 45 Priorld,#�2 Ydnt�]t 2006 400 FV 4,559,800 341300 13.03 1,897,800 6,798,900 6,798,900year end 12/2812005 — r, , Postal:01970 scortes �Prloi Id#,,3: NARRATIVE DESCRIPTION SALES INFORMATION T IITR PAT ACCT. 22372 L', __a__ I I f ASfWap: of land mainly,classified as 6_61- ';Fa6t b — -�L,�,OYGranfor.� z�� Sale Co i�I t ; This Parcel contains.Acres g Ref,'R�Jype,�,Date SaWErice,Vgig.V�,�Jst0erifl'or Assoc,PCLVaIue Qoerp-��,-�R* v, i6e 4 � CondiYl�d With a(n)Condo Ind Building 136ilfabout,l 686 96 SWAMPSCOTT,R 467237- 511012006 1325000 No No 0eve q.j 0�f ATLANTIC ExTRUS 79317-436 Dist Having Primarily Metal Panl Exterior and Tar-Gravel R 2J1012006 Forclosure 3000000 No No Cover,with I Units,0 Baths,2 HalfBaths,0 314 Baths,0 APPLIED EXTRUSI 69284-349 5/18/1998 5500000 No No sorf� Rooms.and 0 Bdrms, OTHER ASSESSMEITT—S --- P,$'BldRealsk,I -'Ar66d6tT1V ,F,, -zom7ln:tt::::J 1:!Code*r,rX DescripMo,�i;j W D'F;� BUILDING PERMITS ACTIVITY INFORMATION �'LastVisit 4�,Fad Code�,,�F:Desellp 11q,1�R__ BY 0614 1,',,&,,4Numb6r'@A�'Dekrfii,'Hk.Amount C/O WmC�_Z,5',,m�� TORS 1/1812013 570-13 Afterad 573,9300 5/6/2008 I 71tb M9 T�F,�1'D as c i Ins acted JMI I I JM p 4.l�;% :ItemIC6de �',_Des 11/29/2012 458-13 Inter-De 21,550,C 5/10/2007 Inspected im JIM Z,��I INDUSTRIA, 1100 �LY -% 6 1 129/2012 1085-12 11.11 A 1.d..d I i.fi I o-n 178,0000 CONST I R I UCT I AP.P.1 R 1 0 X. 51812007 Inspected Jim .J.M­.­ �0:r 2, 80010 178-11 Alterati 41,000 C 8/21/2006 Inspected im :JM n 11/26/2007 596-08 Redo Bat 11,000 C 5/0008 9:58 astrct handicap b 611/2006 Inspected JIM im �,I=-Census. Exmpt 6/4/2066 64-66 Inter A 463,666 6 511012007 4:2 s ceforjacqueli "Flood Haz; d 0 Topo�l _s Street .Traffic N(Eirst 7 lines onlyl -111 1 LUC Base ��T%�;J No of Unit, Notes Unit Unit Price L ueJ �,,Davthli . Type �Land­Fy�pe' 3 9 Use Value"N",�M e,4- e,X Fact, Phouniti i ���,mpfion wil" �_ �h­_,,,_,y, , �h Al 16fl hili 444 Condo-Ind 0 Sq.Ft. Site 01 0. 0.000 SCIP 1.00 j6tai Ac/HkJo I Jotat tF.0:1o.00 I'Parcel LUC:1444 IC Disclaimer:This Information is believed to be correct but is subject to change and is not warranteed. Database:AssessPro apro 2014 EXTERIOR INFORMATION BATH FEATURES COMMENTS SKETCH 27 Condo Ind Full Bath 1�Rating] BANKRUPT PROPERTY PURCHASED IN 2006- I S;to ,-A Bathi APPROX 80%OCCUPIED-TO BE CONVERTED _Y/4—Bath,— TO CONDOMINIUMS FOR FY2008.MAJORITY ,��,(Liv),Units 1 _3 — OF U N ITS SOLD PRIOR TO 07/01/06...SALEM Foundation'.6 :Slab- QBth COMMERCE PARK CONDOMINIUM. Frame:2 Steel 1/2 Bath:2 Prhe Wall:30 Metal Part i A HE11h �:-'Sec WaIL 0'0 i0thrFix: RESIDENTIAL GRID I#Unitsj Roof Struct:04 Flat OTHER FEATURES ist Res wwj�Uesc:1 04 Tar ravel :41:,Kb:j li Rating:1 L6VelN -FY-UR DR--DA,K:FR RRtBR:FB HB'1L'0 Other6 I-YA-Kits-1 I Rating,I 2 E-2 [w"'L"kFrPIkj I Rat LvI 2',� E d : I Unsketobed SulbAr�s GENERAL INFORMATION WSFlue:I I Rat '22250. FFL -4 Grade:C -A erage CONDO 1111 ORMATION Lower-, Y e dgrBlt;1986 EffYr,Bit Lo6afiov r Totals RMs:j I BRs] "Alt LUC�. VFT"i!Alt -'TotalUnits:Ul 'Jurisdict: i! 6 ljdcf. Floor:1 -1st Floor REMODELING RES BREAKDOWN �.',�Const,lylod: %�Own:13.3 I-Ext6ri I or: No�Unit,�RMS M"BRS�;�',FL� lq�a a me' ­-,Interfor: LurTfp,Sum'Adj: INTERIOR INFORMATION DEPRECIATION Additions: Avg HUFL7 18 [.PhysCord7JAV -Average 1 20% 2-Kitcherv, Prim1rit Wal 05. -Minimum 11A Fundichal:1 I % Sec;lfit,Wall:01 -Drywall 40%1,;,i:: cono % �Vluirn Ing: 1. �Ical S % I N'C'Uvemaq 'Heating: Prim Floors: 8 Avera,a % r, % SUB AREA SUB AREA DETAIL ie 1� --il SQ,in'Rate-AV5WiI V, 'iSub 14%, Sec;Floors: 1 1% �'_Cbde Description Area m' g_s_mn_tFIr I CALC SUMMARY COMPARABLE SALES It' C� First Floor 22,250� 55.120 1,226,1161' t� escrio Ou FFL iiAreal"Usbou Bsmnt Gar: 0R,%Bask;$jS 65.00 yip K,Data Na"iJ 1 Sale Price ype �.,UTin Electric:3 Typical Size Adj.,0.84494382 frIsulatiow 2 Typical I WIM_,��i'CbfistAdj 100356865 Int vs Ext:S �j'�Jik�4i5,FAclj$/,SQ 55.117 Haetruel:2 Gas 96,Other Features'32225 �:Heat T�pe:07 Unit Heaters ic,,-Gradd Factor:1.00 i#'Heat Sp�. xNe ighborhood Int 1,14999998 z%Hejtk .,Rliii 1:Net Sketch 100 :r-,%A00 :--10i-[Q1UQ Factor:1.00 ArE 1,22 1 ac NO I too 0'Gf ��Solar.HW IN-0 Ceniral Vac*NO P-liN Ow'Adj,Total:14473 J�SizeAdj 222501 Gro 1 222501 pr %Sprinkled 100 =LaLion,,301054 S eciz IMAG Tnt. - -W nal,Toial:11190100 _VaI/Su SzAdJ53.49 [_'Dep .1146320 1 Fj riles,Inc SNARDITEM VAKLtL j Unit Price ii�i DIS Dep.4 LU 0 Fact'�N B Fa �_''Apor.Value Cod JFact WhJuds.Value.rl -,-.'A,YIS'i Oly Size/Dim W-3 Qual_'Con;Yeu�. I 64 Mezz-Ftnish 0 S 1 1800 AV AV 2012, 24.583 1 444 1. 43,800 43,800 TofP(YinJ ltbriiiij R�1 Totaj'5 _= =,x FIF tu6s:j 4Mg 07 0070 801 1 of I Commercial TOTAL ASSESSED: 1,1 go,100 Map Lot Suffix CARD Salem !22372! PROPERTY LOCATION IN PROCESS APPRAISAL SUMMARY 1,��)No 4"Alt No v DirectionlStreet/City�,',NOA,,i i�,,Use Gode�,v�.IBWIdlnq y6lueiWkYard ltems'RM�Land Size*ma Land Value allue AM Le�al b6kii6tim-,�11ig,2Y. SCUP,Total V -21R trg g'M M 961 SWA 1,190, 0 MPSCOTT ROAD,SALEME9 444 1,190,100, 0.000 juu,luu OWNERSHIP Owner 1�JACQUELINES GOURMET COOKIES Owmer2�1 To�i—c�r4 1595,155 0.000 P- ad 1,190,100 !15ffi��L 0 Eh te -T-Aki!A r Lot Owner 3:1 Total Pircel-Q 1,190,100. 6,000. 1,190,100 atnot "T L ,Street 1:96 SWAMPS OTT RD Ul y�!L ota and] 5 V�,TNK �4�g �,vhk Sourcis:110arket Adj Cost �-,�4�%Total Val6eper SO unit/Card:153.49 1�arceC OJA� PP erdes Inc. Street 2: p� Twn/City:SALEM I --105106/08 IVP PREVIOUS ASSESSMENT Parcel ID 107-0070-801 USER DEFINED ;�Stfflrov:MA Cntry] Tax vs Use,��cat Bldg value,'1,Yfd Items Land Size f.Land Value�7olal Value AssesM Value Notes Pflor ld#:V. o:�ftstal:01970 1 Type] 2013 444 FV 0 1,146,300 1,1 46,300,Year.End Roll PRINT Prior Id#,2: PREVIOUS OWNER 29121_1.4.4.414 1,181,100 0 1,181,100 1,181,100 Year End Roll 12128/2011 Prior to#3 :§j�A�WA OTT ROAD,ULC- 2011 444._ FV 1,181,100 0 1 8 1 J 0 0 1,181,100 Yea r End 12117120 10 Prior dfL 1: MP" Owmer2JAT' 02/25/13 114:00:35 -�nor to#2 r' 9' Own T er 2 ATTN:THE DRUMILIN GROUP- 2010 444 FV1 1,181,100 .-O� 1,181,100 1,181,100 12/2W069 StreetlMIX)LORING AVENUE 2009 444 FV 1,268,700 0 13.03 1,268,M 1,N8,700 YEAR END iwwou LAST REV ,nor 2008 FV 1,266,100 0 13.01 1,H151166 1,266,100 12/20/2007 Twn/City SALEM Id#1� 2007 :400 FV 3,714,600 331700 13.03 2,1171900 6,1134,206 6,164,200 year end 12111006 01/29113 115:21:4� Pricr,ld'#2�. Pbstal:101970 2006 400 FV i 4,559,800 341300 13.03 1,897,800 6,798,900 6,798,900 year end 12/2812005 scones Prlbr'ld W 3: ,,,,NARRATIVE DESCRIPTION SALES INFORMATION TAX DISTRIL� I PAT ACCT. 22372 A8R-mip: land mainly classified as h,.,!2L'Gran LoT d, t "rFactO&I ThisPercel contains.Acresof Jype��',�, ho,v�:,U Sale Co A�SaltiPnce' Y4"rs v Assoc PCIL-Vilue- L".5 �"MlNote&V-ffi M -hk N 96 SWAMPSCOTT R 467237- A thd With a(n)Condo Ind Building Built 6out 1986 5/1012006 1325000 No 'No 0 R u� bis'f Having Primarily Metal Pani Exterior and Tar-Gravel Roof ATILANTIC-EXTRUS 7931.7.43.6 2/101,200,6, Fordosure 3000000 No No qvaf Cover,with 1 Units,0 Baths,2 HalfBaths,0 3/4 Baths,0 APPLIED EXTRUSI 69284-349 5/1811998 5500000 No No 'UfdReason. 8mms and 0 Bdrms, OTHER ASSESSMENTS easob� TNdel n� p/146,kP.611.�;�Am6unt':M Corh,',16C 3UILDING PERMITS ACTIVITY INFORMATION De suit ------N TtTFTr-- W-�,:'Amoun ---aDate7ki;�Numb 4,��X sap �Last,\(jsiti.,FedCode-z F,D6scrifp�-4�4,.,,Comment wm o CIO Jqj EACTORS 1/1812013 570-13 Altered 573,9300 5/612008 Inspected JIM :im them Code �n4 Desdp-,�I 1t6md Code., Descril"' 110012 458-13 In I ter..De 21,550 C w1012007 z I INDUSTRIA 1100 Inspected JIM im 6129012 1685-12 Addition 178,0000 CONSTRUCT APPROX. 50N07 Inspected im 'JIM 8/2512010 178-11 Alterafi 41,000 C &2112006 Inspected im !JM 11/2612007 596-08 RedoBat,. 11,000 C 5/6)2008 9:58 cnstrct handicap b 6/112006 Inspected JIM im Census: Exm t 5/4/2 983,000C V1 6/2607 4:2 's p 006 894-06 Inter Fi 41 paceforjacqueli FIdod,Haz: D%J Jopo� Skeet, onlyl --F—Vtz!T NO I -.Traffic SECIION(First 7 lines -ATA -r,Rq LTqJ,, �Y"I§ i�i; No of Units&— �i ,UnftTYJb--:`Land Type Y, Nq5 Unit Pric6A,'Adi�,-�Nelgh��, 'i, :�iln -,��Pdml Inift y n- p Note's Walue Ai'," F ac �Xtdod �,r, f �Value!� -4 Fact ton�, 444 Condo4nd 0 Sq.Ft. Site 0� 0., 0.000 SCP 1.00 Jotal3F/SM' ESPI Credit 7 Disclaiffier:This Information is believed to be correct but is subject to change and is not warranteed. Database:AssessPro apro 2014 EXTERIOR INFORMATION BATH FEATURES COMMENTS SKETCH Type:27 Condo Ind I Full Bath k Rating:j BANKRUPT PROPERTY PURCHASED IN 2006- APPROX 80%OCCUPIED-TO BE CONVERTED -A-,&Sty Ht:1 1 Story _�-A Bath: �(Liv)Units:11 1, ­Total�jl 1 314 Bath: TO CONDOMINIUMS FOR FY2008.MAJORITY Foundation:6 Stab A 3QBth OF UNITS SOLD PRIOR TO 07/01/06.. SALEM Frame:2 Steel 1/2 Bath: COMMERCE PARK CONDOMINIUM. -MetalPanl 1,A�HBth: p Sec Wall 1 1% "OthrF[x: RESIDENTIAL GRID Roof Struct 04 -Flat OTHER FEATURES ist Resund�j Desc:1 I� F �UR-DR�D��;Ktl`R:RR L U it 'ravel BR I'M Ls'D 04 -Tar+G WK* Rafing' er 111LIFA K&I Rati6g:l 'View Desir.12 -2 lmi FrP11 Rafingj JnSWched SubPreas: GENERAL INFORMATION [WSFIue:j Rating'I ......... LVI 1-N IF IF L:22260. p Grade:C -Average CONDO III FORMATION Lower, ,,Year Bit:1986 Eff Yp t: �W1ocafiont Totals, 4RMs:j FB 7R , FBathi] F�HB 2 rAlt LUC:: p�,R,'Alt%:: *Total Units:U 1 9 Jurisdict: �z 710.1&-&�Floor.T -lst Floor REMODELING RES BREAKDOWN Aklml Const Mod: NRE -,Own:13.3 7�_E_x_te_h0_rF____] No,Unit RM&M-,SRS z�v FL, 0/6 Y�,�Lump Sum Adj: W:i­Q,Name. �,.`Interior INTERIOR INFORMATION DEPRECIATION Additions: ......... ��Avq I HVFL 18 JEPI�jsCond:JAV -Average 20.% --Kitchen: Prim Int Well 05 -Minimum Functional: % �qp;Baths: Sac lntWall: Edwornic % um MIT 01 Drywall 40% '� % kal Heaflrg v;,� a % �PrhnFloors 8 -A �:Cvaffiide:j 'Generat Sao Floors: %44Total: 20. % SUB AREA SUB AREA DETAIL �Cod CALC SUMMARY COMPARABLE SALES 6�'4Are'-'iU�sb Bsmnt Fir First Floor 22.250 55.120 1,22 a Descdp I l�Rate j',,-M�R Parcel D_ _tA,Typ Sale Price—Hu -'Bsmnt -,'A'BasIc,$,/SO:65.00 T Date,'�'.'&� -Gar. I Electric:3 Typical jmq Size Adj� 0.84494382 Insulation 2 Typical km_��040 Const Adj� 1.00356865 A�:,EAW?415 Adj$4 SO 55 117 �HekFuel:2 -Gas Other Features:32225 07 -UnitHeaters 7rm—lo'Grade Factor 1.00 �tNelghborh xlInf:1.14999998 —I WtAvs/SQ:l ['A�Aated ImLVaIj0 Net Sketched AreaJ22,250 �1 100 �,,-?,,-%AC:10 LU Factor:1.00 1,226,36 t�'ff,lurfs.-Factorj Size Adl 222501 Gross Areal 222501FInArob] 22 50 u, Solar HW NO CentraIVac:NO I -;mx��,��'Adj,Tofa]711447374 Val SuFin:53.49 2 %Com Wal %Sprinkled 100 LivK,Depreciation1301054 S ecial Features]43800 1111�Val[/Su Net 53.49 1,Depreciated Totatj 1146320 1!t' FjnaITotaI:j1 190100 1 VaUSu SzAd 53.49 ism URESNARD ITEMS �m�,, pr 07-01770-80 1 ffl'F We,,ription r-A,�Y/S�,'Qty,­;�Size/Dimwv Qua] C6n�Y6ar Unit Pdce,,N DIS�Dep,','� LUC�--,-;Fact NBFa��&ApprValU�:-JCod'JFact-����:Jluds,�Vialue��;04 lm 6.41 1 Me�-Finish �D�S 1,1800 AV, AV :..2-01.2.1.-,.,.-,�.�112�4.5�18:T 1: 444 1. 43,800 43,8001 N04- I g,TofaI_Yard4tdms:j 1 ;04 edatPeahY6s:j 43.8001 Fiscal year Exemption Incremental Exempted Estimated Estimated Total annual asssessed value property taxes property taxes base tax bill taxes paid 2014 100% 0 8,651.50 0 $25,168 $25,168 2015 80% $55,000 $6,921.20 �1,730.30 $25,16& $26,898 2016 60% $110,000 $5,190.90 $3,460.60 $25,168 $28,629 2917 40% $165,000 $3,460.60 $5,190.90 $25,168 $30,359 2018 20% $220,000 $1,730.30 $6,92L20 $25,168 $32,089 2019 0% $275,000 $0.00 $8,651.50 $25,168 $33,820" —ts> RESOLUTION WHEREAS, Jacqueline's Wholesale Bakery, Inc. (hereinafter "JACQUELINE'S") wishes to expand their gourmet frozen cookie manufacturing business located at 96 Swampscott Road, Unit 1, Salem, MA into 96.5wampscott Road, Unit 2 in Salem, MA; and WHEREAS, 96 Swampscott Road, Unit 1, Salem, MA, known as Assessor's Parcel ID 07- 0070-01 (hereinafter "UNIT 1") is owned by JACQUELINE's; and WHEREAS, 96 Swampscott Road, Unit 2, Salem, MA, known as Assessor's Parcel ID 07- 0070-02, (hereinafter "UNIT 2") is owned by MH, LLC; and WHEREAS, UNIT 1 and UNIT 2 are owned by commonality of interest, having the same owner, WHEREAS, the City of Salem (hereafter "CITY") is willing to grant tax concessions in return for a guarantee of the lease and renovation of an additional +/- 12,000 sq. ft. of manufacturing and warehouse facility space and the creation of employment opportunities for local workers; NOW,THEREFORE, BE IT RESOLVED that the Salem City Council hereby • Requests that the Commonwealth of Massachusetts designate an area of the city that includes UNIT 1 and UNIT 2 as an Economic Opportunity Area (EOA) hereinafter called Site Specific Jacqueline's Economic Opportunity Area; and • endorses the use of Tax Increment Financing as a tool to encourage economic development within the Site Specific Jacqueline's Economic Opportunity Area, and approves the Tax Increment Financing Plan negotiated by the CITY and the JACQUELINE'S, and • provides for a tax exemption for UNIT 2 for a period of five (5) years, beginning the first full fiscal tax year after Certificate of Occupancy is issued for UNIT 2 in accordance with the schedule below: Term Exemption % 1 100% 2 80% 3 60% 4 40% 5 20% Said exemption being in accordance with M.G.L. Chapter 23A, Section3E, Chapter 40, Section 59, Section 5. BE IT FURTHER RESOLVED that the Mayor is hereby authorized, on behalf of the City, to enter into a Tax Increment Financing Agreement, a copy of which is attached hereto, with MH, LLC. In City Council February 28, 2013 Adopted by roll call vote of 9 yeas, 0 rays, 2 absent Approved by the Mayor on March 4, 2013 Nltv ATTEST: CHERYL J LAPO'INTE CITY CLERK City of Salem Yea and Nay Vote of City Council Upon the Question of Q/7'�7 r�7 zd Yea Nay Pres. Absent Date 2-,2S, — 2013 Josh H. Turfel Michael Sosnow.gki Todd A. Siegel Arthur C. Sargent, III Paul C. Prevey Robert K. McCarthy William H. Legault Joseph A. O'Keefe,Sr. ' au 6X eef' e S T homas H. Furey Kevin R. Carr,jr. ,Jerry L. Ryan, President T'ro otals Cl CILERK I IT rl CURK SAW PA'41.. City of Salem Yea and Nay Vote of City Council Upon the Question of '0 9,:t TZ F N, Yea Nay Pres. Absent Date c;? 2013 Josh H. Turiel i'vlichael Sosnowskl Todd A. Siegel Arthur C. Sargent, III Paul C. Prevey Robert K. McCarthy William H. Legault Joseph A. O'Keefe,Sr. Thomas H. Fure TRUE y prig Kevin R. Carr,Jr. Jerry L. Ryan, ri C 1,FR President A I E�W' �1 Totals ap""L a qC[TYCLERK