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BIOENGINEERING GROUP CERTIFIED PROJECT �, GJpb �., MAR-16-01 FRI 1. 11 :51 All THE EIOENG!NEEk!NG GROUP FAX NO, 978 140 0097 F, 2 MOTION TO APPROVE RIVER WHARF REALTY TRUSTIBIOENGINEERING GROUP AS A CERTIFIED PROJECT WITHIN THE Town of Salem EOA WHEREAS, Chapter 23A, Sections 3A through F as amended by Chapter 19 of the Acts of 1993, established the Economic Development Incentive Program (EDIP); WHEREAS, the EDLP is designed to promote increased business development and expansion in Economic Target Areas (ETAS) and Economic Opportunity Areas (EOAs) of the Commonwealth; WHEREAS, the Economic Assistance Coordinating Council (SACC), established by Section 38 of said Chapter 23A, is charged with administering the EDIP, including the review and approval of applications from municipalities for the designation of areas as ETAS and EOAs, as well as the designation of Certified Projects; WHEREAS, the Municipality of Salem has been designated by the EACC as an Economic Target Area; WHEREAS, the EACC approved the Town of Salem Economic Opportunity Area within the Economic Target Area; WHEREAS, River Wharf Realty Trust/Bioengineering Group has committed to creating 15 new permanent full-time jobs; WHEREAS, total project investment will be approximately $637,000 in construction costs and related expenses during the life of the project; WHEREAS, River Wharf Realty Trust/Bioengineering Group filed a Certified Project application with the Municipality of Salem, which the Municipality approved; WHEREAS, the Municipality of Salem approved a TIF for the company; WHEREAS, the EACC finds that the proposed Certified Project in the Town of Salem EOA meets the mandatory criteria required in MGL C. 23A; WHEREAS, the EACC finds that the proposed Certified Project has received the appropriate municipal approval from Salem, in accordance with the statute; and WHEREAS, the EACC finds that the proposed Certified Project, if so certified, will have a reasonable chance for increasing employment opportunities for the residents of the Municipality of Salem and the ETA, thereby reducing conditions of blight, economic depression, and widespread reliance on public assistance; MAR-16-01 FRI 11 :52 AM THE RICENGINEERING GROUP FA; N0, 978 740 0097 P. NOW THEREFORE BE IT RESOLVED by the Economic Assistance Coordinating Council that: 1. The River Wharf Realty Trust/Bioengiueering Group Certified Project is approved, as the SACC has received a Certificate of Good Standing from the Department of Revenue. 2. River Wharf Realty Trust/Bioengineering Group is eligible for the Massachusetts 5% Economic Opportunity Area Tax Credit for qualifying expenditures, hIOTION by Mr. Bevilacqua, seconded by Mr.McCullough at the May 31,2000 meeting of the Economic Assistance Coordinating Council, at which a quorum was present. Ayes—g Nays _0 Abstentions 0 Absent 3 MAR-15-01 FRI 11 :52 AM THE HIGENGINEERING GROUP FAX IN, 978 740 0097 P, 4 Jane Walis umble D" ector Departme of HousW & Community Development Co-Chairperson, Economic Assistance Coordinating Council TAX INCREMENT FINANCING AGREEMENT ' CITY OF SALEM, MASSACHUSETTS and RIVER WHARF REALTY TRUST i ' This agreement is made this&I of� 2000, 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, Stanley J. Usovicz, Jr., (hereinafter called "the CITY"), and RIVER WHARF REALTY TRUST, u/d/t dated June 30, 1999 (Recorded with Essex South District Registry of Deeds in Book 15780, Page 107), with a principal place of ' business at 18 Commercial Street in Salem, Massachusetts, 01970 (hereinafter called "the TRUST") . This Agreement will take effect as of July 1, 2000 (Fiscal Year 2001). ' WHEREAS, the TRUST has permitted The Bioengineering Group, Inc. (hereinafter called"the LESSEE" of the TRUST)to renovate the building at 18 Commercial Street in Salem as the professional offices for the LESSEE; and ' WHEREAS, the CITY is willing to grant tax concessions in return for guarantee of the renovation of this distressed property and the creation of employment ' opportunities for local workers; and ' WHEREAS, the Salem City Council resolved on November 9, 1995 to allow the use of Tax Increment Financing as a tool to encourage economic development within the Salem Economic Opportunity Area; and ' WHEREAS, the Salem City Council resolved on April 13, 2000 to endorse the Tax Increment Financing Plan negotiated by the CITY and the TRUST. ' NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties do mutually agree as follows: A. THE TRUST'S OBLIGATIONS ' 1. The TRUST shall purchase and permit the LESSEE to renovate the property at 18 Commercial Street in Salem. "The FACILITY" as used herein means the building at 18 Commercial Street containing approximately 5,000 square feet plus site improvements. 2. During the life of this agreement, if the TRUST decides to sell the FACILITY or the ' business or to otherwise transfer control of the FACILITY or business and/or operations thereof, the TRUST 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. B. THE CITY'S OBLIGATIONS ' 1. The CITY shall grant a tax increment financing exemption to the TRUST 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 2001 (July 1, 2000) and ending with fiscal year 2006. During each year of this agreement, the TRUST will pay taxes based on the base value of the FACILITY and on that portion of the value of the FACILITY which is not exempted under the ' agreement. The base value is established by the Board of Assessors (the Board) and is the assessed value established for the most recent fiscal year immediately prior to the fiscal year in which the property first becomes eligible for the tax increment exemption of the FACILITY unless an abatement is approved by the Board. The exemption schedule on the value of the FACILITY works as follows: For the first year, the TRUST will pay the base tax bill and will pay taxes on 75% of the full value of ' improvements to the FACILITY. The full value of improvements to the FACILITY is hereinafter called "the INCREMENT". In year two, the TRUST will pay taxes on 85% of ' the full value of the INCREMENT, plus the base tax bill. In year three, the TRUST will pay taxes on 95% of the full value of the INCREMENT, plus the base tax bill. In year four,the TRUST will pay taxes on 95% of the INCREMENT, plus the base tax bill. In ' year five, the TRUST will pay taxes on 95%of the INCREMENT, plus the base tax bill. In year six, the TRUST will pay taxes on the full value of the FACILITY. ' C. OTHER CONSIDERATIONS ' 1. This Tax Increment Financing Agreement shall be binding on all subsequent owners of the property. The City of Salem reserves the right to review and renegotiate the Tax Increment Financing Agreement if the business activity ceases to be fully operational during the life of the Tax Increment Financing Agreement. ' 2. If the TRUST decides to expand the facility at any time during the life of the Tax Increment Financing Agreement, the CITY and the TRUST may renegotiate the Tax Increment Financing Agreement to exempt all or part of the value of the expansion from ' property taxes. The exact amount of that exemption will be determined at the time of expansion. 1 1 Executed as a sealed instrument on the day and year first above written. ' CITY OF SALEM RIVER WHARF REALTY TRUST ' Stanley J. Uso c Jr., r Robe rt G. S lomon, Trustee Notary Public - ' My commission expires s/ /may ©� ri r �' I RESOLUTION AUTHORIZING A TAX INCREMENT FINANCING AGREEMENT For River Wharf Realty Trust WHEREAS, the City of Salem is part of the area designated the Beverly & Salem Regional Economic Target Area and the Salem Economic Opportunity Area; WHEREAS, the Mayor of the City of Salem has prepared a Tax Increment Financing Agreement in accordance of Chapter 40 and 751 CMR 11.00; WHEREAS, there is strong support for economic development and the use of Tax Increment Financing as an economic development tool to encourage business expansion in and relocation to the City of Salem; I WHEREAS, there is strong support for using Tax Increment Financing to encourage the renovation of 18 Commercial Street,the property owned by River Wharf Realty Trust and leased to The Bioengineering Group, Inc.; WHEREAS, this property is located in the Salem Economic Opportunity Area; I NOW THEREFORE BE IT RESOLVED by the Salem City Council that: (1) The Tax Increment Financing Agreement be adopted as it has been substantially submitted to the City Council. A copy of said Tax Increment Financing Agreement is attached as Exhibit A, and made part of this Resolution. (2) The area to be designated as a Tax Increment Financing Zone is: The land in said Salem with the buildings thereon, if any, bounded and described as follows: Parcel No. 1 Beginning at a point on the northerly side of Commercial Street at the SOUTHWESTERLY comer of land formerly of George F. Lord, thence running in a NORTHERLY direction along the Westerly property line of the property now or formerly of George F. Lord, a distance of eighty-nine and 85/100 (89.85) feet to a point; thence turning and running in a NORTHWESTERLY direction a distance of fifty and 05/100 (50.05) feet along land now I or formerly of H.P. Hood and Sons, Inc.;thence turning and running in a SOUTHERLY direction along land now or formerly of the City of Salem, a distance of ninety-two and 57/100 (92.57) feet; thence turning and running in an EASTERLY direction along the Northerly street line of Commercial Street, a distance of fifty(50) feet to the point of beginning. Containing 4,560 square feet of land, as shown on a plan filed with the Essex South District Registry of Deeds entitled"Land of City of Salem, Rear of North Street, Salem, Mass., May 1955, Revised October 1955—Edgar W. Nickerson, City Engineer" in Book 4809, Page 500. Parcel No. 2 The land in said Salem with the buildings thereon, if any, situated on the North side of the North River Canal and bounded and described as follows: Beginning at the SOUTHEASTERLY comer of said lot on the Northwesterly side of a proposed road the same point being three hundred and eighty-eight and 44/100 (388.44) feet Southwesterly from North Street; thence running SOUTHWESTERLY by the Northwesterly street line of said proposed road seventy (70) feet to other land now of formerly of the City of Salem; thence turning and running NORTHWESTERLY by said other land now or formerly of the City of Salem, eighty- nine and 85/100 (89.85) feet to land now or formerly of H.P. Hood and Sons, Inc.; thence turning and running EASTERLY by said land now or formerly of H.P. Hood and Sons, Inc., seventy and 12/100 (70.12) feet to land now or formerly of Cook; thence turning and running SOUTHEASTERLY by said land now or formerly of Cook,eighty-six and 06/100 (86.06) feet to the point begun at. Containing 6,156 square feet of land and being shown on a plan entitled"Land of the City of Salem, rear of North Street May 1955, Revised October 1955, Edgar W. Nickerson, City Engineer" and hereinbefore referred to. Fortitle,_referenceis-madeloDeed_ofrCarhanmH T.ord>datedMay- 4,1465_and recorded with the Essex South District Registry of Deeds in Book 5267,Page 342. (3) A map of the Tax Increment Financing Zone is hereby attached as Exhibit B and made part of this Resolution. (4) The Tax Increment Financing Agreement shall be binding on all subsequent owners of the property in the Tax Increment Financing Zone. The City of Salem reserves the right to review and renegotiate the Tax Increment Financing Agreement if the business activity ceases to be fully operational during the life of the Tax Increment Financing Agreement, as specified in the Tax Increment Financing Agreement. (5) A copy of the adopted Tax Increment Financing Agreement shall be forwarded to the In City Council March 30, 2000 Referred to the Committee on Administration and Finance In City Council April 13, 2000 Adopted by Roll Call Vote of 9 Yeas 0 Nays 2 Absent Approved by the Mayor on April 24, 2000 Massachusetts Economic Assistance Coordinating Council for its approval. (6) The effective date of the Tax Increment Financing Agreement shall be July I, 2000 (Fiscal Year 2001), whichever is later. (7) The Mayor is hereby authorized to execute and implement the Tax Increment Financing Agreement. Adopted this 13th day of April 2000 by the Salem City Council at a regular City Council meeting with a quorum present. I Zd71b Stanley J. Uso ' , Jr.,Mayor 4at . A Deborah E. Burkinshaw, City C erk SEAL City of Salem Yea and Nay Vote of City Council Upon the Question of 7 � z Yea Nay Pres. Absent Date z000 Laura A. DeToma Kimberley L. Driscoll Regina R Flynn Thomas H. Furey Sarah M. Hayes Scott A. LaCava Joan B. Lovely Joseph A. O'Keefe Leonard F. O'Leary Arthur C. Sargent q Kevin R Harvey, Pres. Totals ' PY ATTEST CITY CLERK �C C LE� --- Qn C� �n� _ _ _ , .- 1 � i i i I� I RESOLUTION ' APPROVING CERTIFIED PROJECT APPLICATION OF RIVER WHARF REALTY TRUST WHEREAS, River Wharf Realty Trust has applied for designation as a Certified Project under the Massachusetts Economic Development Incentive Program created by Chapter 23A of Massachusetts General laws; WHEREAS, River Wharf Realty Trust meets the minimum standards of the Economic Development Incentive Program and the local economic development goals and i criteria established as part of the documents creating the Beverly & Salem Regional Economic Target Area and the Salem Economic Opportunity Area; WHEREAS, the proposed certified project is located at 18 Commercial Street,within the boundaries of the Salem Economic Opportunity Area. The legal description is as i follows: The land in said Salem with the buildings thereon, if any, bounded and described as follows: j Parcel No. 1 I Beginning at a point on the northerly side of Commercial Street at the SOUTHWESTERLY comer of land formerly of George F. Lord,thence running- in a NORTHERLY direction along the Westerly property line of the property now or formerly of George F. Lord, a distance of eighty-nine and 85/100 (89.85)feet to a point;thence turning and running in a NORTHWESTERLY direction a distance of fifty and 05/100 (50.05) feet along land now or formerly of H.P. Hood and Sons, Inc.; thence turning and running in a SOUTHERLY direction along land now or formerly of the City of Salem, a distance of ninety-two and 57/100 (92.57) feet; thence turning and running in an EASTERLY direction along the Northerly street line of Commercial Street,a distance of fifty(50) feet to the point of beginning. Containing 4,560 square feet of land, as shown on a plan filed with the Essex South District Registry of Deeds entitled "Land of City of Salem, Rear of North Street, Salem, Mass., May 1955, Revised October 1955 —Edgar W. Nickerson, City Engineer" in Book 4809, Page 500. i Parcel No. 2 The land in said Salem with the buildings thereon, if any, situated on the North side of the North River Canal and bounded and described as follows: Beginning at the SOUTHEASTERLY comer of said lot on the Northwesterly side of a proposed road the same point being three hundred and eighty-eight and 44/100 (388.44)feet Southwesterly from North Street;thence running SOUTHWESTERLY by the Northwesterly street line of said proposed road seventy(70) feet to other land now of formerly of the City of Salem; thence turning and running NORTHWESTERLY by said other land now or formerly of the City of Salem, eighty-nine and 85/100 (89.85) feet to land now or formerly of H.P. Hood and Sons, Inc.;thence turning and running.EASTERLY by said land now or formerly of H.P. Hood and Sons,Inc., seventy and 12/100(70.12) feet to land now or formerly of Cook;thence turning and running SOUTHEASTERLY by said land now or formerly of Cook, eighty-six and 06/100 (86.06) feet to the point begun at. Containing 6,156 square feet of land and being shown on a plan entitled"Land of 1955, Revised October 1955 Edgar the City of Salem,rear of North Street May g W.Nickerson, City Engineer"and hereinbefore referred to. For title, reference is made to Deed of Catharyn H. Lord, dated May 14, 1965,and recorded with the Essex South District Registry of Deeds in Book 5267, Page 342. WHEREAS, the City of Salem has agreed to offer River Wharf Realty Trust a Tax Increment Financing Agreement; WHEREAS, The Bioengineering Group,Inc., having leased the building on the property of its holding company, River Wharf Realty Trust, will invest approximately $240,000 to renovate a property at 18 Commercial Street into professional offices, an investment which creates approximately 15 new, permanent jobs for residents of the Beverly & Salem Regional Economic Target Area. WHEREAS, the renovation of the property at 18 Commercial Street will substantially improve the aesthetic appearance of the property and reduce blight in one of Salem's - business districts; NOW THEREFORE BE IT RESOLVED that the Salem City Council approves the Certified Project application of River Wharf Realty Trust, designating this project as a certified project for a period of five years, and forwards said application for certification to the Massachusetts Economic Assistance Coordinating Council for its approval and endorsement. i i it In City Council March 30, 2000 REferred to the Committee on Administration and Finance In City Council April 13, 2000 Adopted by Roll Call Vote of 9 Yeas 0 Nays 2 Absent Approved by the Mayor on April 24, 2000 ATTEST: DEBORAH E. BURRINSHAW CITY CLERK Adopted this 13th day of April, 2000, by the Salem City Council. Stanley J. Us z,Jr., ayor Dat 2 i Attest:� _ Deborah E. Burkinshaw, City Clerk SEAL i City of Salem Yea and Nay Vote of City Council Upon the Question of 44=&Let/5>-r Yea Nay Pres. Absent Date - g 2000 Laura A. DeToma Kimberley L, Driscoll VIIL Regina R Flynn Thomas H. Furey Sarah M.Hayes Scott A. LaCava Joan B. Love ly Joseph A. O'Keefe Leonard F. O'Leary Arthur C. Sargent Kevin R Harvey, Pres. �✓ Totals A7::7L4 S CTTY CLERK SALEM, MASS. �J