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THERMAL CIRCUITS TIF
As `5 � x` �W�' '4 ki `r it$• 9 .r'" rt 1 ." -T,.,�.,.,.�. - -- :� ° r 5 `8- t'm .� r - tg ' '-. ayi " +3 ' e£ ta' 'l " "� F41 Z s ; IA ati coq 4 '� 4 SM •k a., :ti —61 max+' "" e^r, F y"n, 110, v xx jj w Ma5�-�. p..'y�-f S x+ t u ' k % S a tf� k{-, � ' � bt ?��, `$!y y •y. ` } r"1�..�..i�`i ,yf�r��� _: � � � k'�+ � b•`p It ,y x.S •. r-rza T ,� F „ ' a 3^'r t % "° k-�ft.at '- w '< ' ` 1 �.,� � s` iWR `� yn, *f �2 0' Mk r' z ' wR ?^ .ds '•-Aw" "X. MV t '" '4 c c +• x � � : '"� *� fi „.n. ``��„� w �, � � •, � � ,�,,��� y, .�6` tri - r � � � a � � l��. L ttn� i 7 it m CITY OF SALEM. MASSACHUSETTS NEIL J. HARRINGTON MAYOR March 9, 1995 Salem City Council Salem City Hall Salem, MA 01970 Ladies and Gentlemen of the City Council: I am pleased to submit for your review and approval the resolutions, Order and applications necessary to build a new industrial park and keep Thermal Circuits in Salem. I have requested a short period of time at the beginning of the March 9 City Council meeting to present this plan and request approval of the attached. This project represents an exciting opportunity for Salem. Utilizing an array of local, State and Federal economic development tools, the City has formulated a strategy which will keep a rapidly growing manufacturer in Salem while also serving as the catalyst for .construction of a 29 acre, six lot industrial park on Swampscott Road. To implement this plan the City is using the following development incentives: • Salem's Economic Target Area designation - In September of 1994 the City of Salem was designated as an Economic Target Area along with the City of Beverly. This designation provides prospective businesses with a State investment tax credit of 5% and allows municipalities to negotiate Tax Increment Financing (T.I.F.) plans. • Tax Increment Financing (T.I.F.) - As a result of the City's ETA designation the City can offer eligible businesses pre-agreed property tax relief to entice them to remain in, or relocate to, Salem. In this case the City has negotiated a 10-year T.I.F. plan which is further described in Resolution #4 (see attached). • Community Development Action Grant Program - The City has received a preliminary commitment from the CDAG program to provide $260,000 to be used to construct the access road to the industrial park. This assistance comes as a grant from the State to the City for use in constructing a portion of the road. SALEM CITY HALL . 93 WASHINGTON STREET • SALEM. MASSACHUSETTS 01970 • 508/7459595 • FA% 508/744.9327 Salem City Council March 9, 1995 Page 2 • Community Development Block Grant - In order to complete the industrial park, the City has agreed to provide infrastructure improvements matching the State grant to complete the new road into the industrial park. These improvements will be undertaken as betterments and will be repaid upon sale of each remaining tract of land in the park. This commitment is estimated at not to exceed $200,000. Approval of the attached package of information is an essential step in completing the Thermal Circuits success story. The form of the resolutions is as required by the Massachusetts Office of Business Development. Although voluminous, City Council approval of the resolutions will result specifically in only the following four actions: Approval of the entire City as an Economic Opportunity Area, thus allowing the 5% State tax credit and T.I.F. incentives to be used at any location within the City (as long as they are approved by the Mayor and the City Council). Approval of the Thermal Circuits parcel as a Certified Local Project, which provides the eligibility needed by Thermal Circuits to take advantage of the State and local tax incentives. Approval of the Tax Increment Financing plan which has been worked out with Thermal Circuits. Authorization for the Mayor to submit the final application for the CDAG funding which has been preliminarily approved by EOCD. One of the commitments which the City has made to Thermal Circuits is to meet an expedited development timeline. The timeline which we committed to is similar to that which Thermal Circuits would have been able to meet had they moved into the building which they identified outside of Salem. In order to meet this timeline it is imperative that the City Council approve the attached package at its March 9th meeting. This approval will allow the City to meet the deadline for submission of the resolutions for approval at the March 31 meeting of the Massachusetts Economic Assistance Coordinating Council (SACC). If the March EACC meeting is missed, the timeline will be jeopardized. I am aware that this request is unusual. However, in order to continue our forward progress, immediate action on these requests is necessary. From the beginning of these negotiations the City has worked tirelessly to ensure that this company remain in Salem. I believe the potential benefits of this proposal are wide-ranging enough to warrant this expedited approval. Salem City Council March 9, 1995 Page 3 A similar timeline request has been made to the Salem Planning Board and will soon be made to the Conservation Commission. Since the initial announcement by Thermal Circuits of their intention to remain in Salem, we have generated great interest in the proposed industrial park, as well as other sites across the City. Two medium-sized manufacturing firms now located inside the Route 128 beltway and a national restaurant chain have each made serious inquiries about expanding their operations into Salem. In addition to the tremendous value which the retention of Thermal Circuits will offer to Salem's commercial base, this action will be symbolic of Salem's ability to compete with neighboring communities in attracting companies to expand our commercial tax base. 1 look forward to attending Thursday's meeting with City Planner William Luster to present the attached package and to request the approvals necessary to allow this beneficial project to continue to move forward. Sincerely, Neil J. Harrington Mayor jm\bilNhemcc tf Thermal Circuits/Swampscott Road Industrial Park Description of Attachments 1. Resolution #1 This resolution authorizes the creation of a city-wide Economic Opportunity Area. Such designation is necessary to allow the State and local tax incentives to be utilized by Thermal Circuits and the City of Salem. 2. Resolution #2 This resolution designates the Thermal Circuits development parcel (4 acres) as a Certified Project. This designation is necessary to allow the State and local tax incentive to be allowed at this site. 3. Resolution #3 This resolution authorizes the use of Tax Increment Financing within the Economic Opportunity Area created by Resolution #1. 4. Resolution #4 This resolution approves the Tax Increment Financing plan offered to Thermal Circuits. 5. Order This order authorizes the Mayor to apply to the Community Development Action Grant program for funding to build the access road to the industrial park. Such funding has been preliminarily approved by EOCD. 6. Economic Opportunity Area: This application provides the necessary information to allow Resolution #1 to be submitted to the State. 7. Project Certification Form: This form is the application provides the necessary information to allow Resolution #2 to be submitted to the State. 8. Tax Incentive Financing Plan: This application provides the necessary information to allow Resolution #4 to be submitted to the State. RESOLUTION 1 AUTHORIZING THE CREATION OF AN ECONOMIC OPPORTUNITY AREA WHEREAS, the Salem City Council strongly supports increased economic development to provide additional jobs for City residents, and expanded commercial and industrial activity with the City to promote and develop a healthy economy and stronger tax base; WHEREAS, the City of Salem is part of the Beverly & Salem Regional Economic Target Area (ETA) designated on September 12, 1994 by the Economic Assistance Coordinating Council; WHEREAS, the Salem City Council desires beneficial economic uses creating jobs for local residents and increasing commercial and industrial activity for the area known as the Salem Economic Opportunity Area; WHEREAS, the Salem City Council desires that this area, described as the City of Salem, be designated as the Salem Economic Opportunity Area; WHEREAS, finds that the proposed Salem Economic Opportunity Area meets the definition of a Decadent Area as defined by 402 CMR 2.03; WHEREAS, the Salem City Council finds that the proposed Salem Economic Opportunity Area meets the local criteria set forth in the approved Beverly & Salem Regional Economic Target Area application; WHEREAS, the Salem City Council supports and endorses the economic development goals for the Salem Economic Opportunity Area; WHEREAS, the ability of the municipality, the needs of the proposed economic development projects, and the community benefits of proposed projects will be reasonably proportional to state tax incentives offered through the Massachusetts Economic Development Incentive Program, and the resulting economic development benefits to the municipality; NOW THEREFORE BE IT RESOLVED by the Salem City Council that the following activities as necessary pursuant to the application for an Economic Opportunity Area designation in the City of Salem be authorized; 1. The City Council hereby authorizes the submission of the Economic Opportunity Area application to the Massachusetts Economic Assistance Coordinating Council, substantially in the form attached hereto as Exhibit 1; 2. The Salem Economic Opportunity Area is defined to be: The corporate boundaries of the City of Salem, MA A map of said area is attached, and marked as Exhibit 2, which is hereby made a part of this Resolution. 3. The City Council agrees to authorize the use of either tax increment financing or a special tax assessment for each qualified certified project located within said Economic Opportunity Area. Adopted this day of 199 by the Salem City Council. Date Neil J. Harrington, Mayor Attest: Deborah E. Burkinshaw, City Clerk SEAL EXHIBIT 1: Application to Designate Salem Economic Opportunity Area EXHIBIT 2: Map of Proposed EOA 2. The Salem Economic Opportunity Area is defined to be: The corporate boundaries of the City of Salem, MA A map of said area is attached, and marked as Exhibit 2, which is hereby made a part of this Resolution. 3. The City Council agrees to authorize the use of either tax increment financing or a special tax assessment for each qualified certified project located within said Economic Opportunity Area. Adopted this day of 199,x, by the Salem City Council. 74za:; Date 31�95 Neil J. Har ,Kngfon, M40r Attest: A/cj,�4�rxl borah E. Burkmshaw, City Clerk SEAL EXHIBIT 1: Application to Designate Salem Economic Opportunity Area EXHIBIT 2: Map of Proposed EOA RESOLUTION 2 APPROVING CERTIFIED PROJECT APPLICATION OF Thermal Circuits, Inc. WHEREAS, Thermal Circuits, Inc. has applied for designation as a Certified Project under the Massachusetts Economic Development Incentive Program created by Chapter 23A of Massachusetts General laws; WHEREAS, Thermal Circuits, Inc. meets the minimum standards of the Economic Development Incentive Program and the local economic development goals and criteria established as part of the documents creating the Beverly & Salem Regional Economic Target Area and the Salem Economic Opportunity Area; WHEREAS, the proposed certified project is located at 58 Swampscott Road, tax parcel # 763. The legal description of this are is as follows and is within the boundaries of the Salem Economic Opportunity Area: That land situated in Salem in the County of Essex and Commonwealth of Massachusetts, bounded and described as follows: NORTHEASTERLY by Swampscott Road eight hundred ten and 28/100 (810.28) feet; SOUTHERLY and SOUTHEASTERLY on two courses measuring together eight hundred forty four and 95/100 (844.95) feet, NORTHEASTERLY thirty (30) feet, SOUTHEASTERLY eighty two and 84/100 (82.84) feet, NORTHEASTERLY three hundred fifty (350) feet, NORTHWESTERLY sixty seven and 84/100 (67.84) feet, NORTHEASTERLY two hundred sixty six and 11/100 (266.11) feet, NORTHWESTERLY one hundred forty one and 51/100 (141.51) feet, NORTHEASTERLY one hundred seventy three and 97/100 (173.97) feet by lot 699, as shown on plan hereinafter mentioned; SOUTHEASTERLY by land now or formerly of Margaret J. Bryson seven hundred sixteen and 16/100 (716.16) feet; SOUTHWESTERLY by lot 633, as shown on said plan, one thousand thirty four and 30/100 (1034.30) feet; WESTERLY, by land now or formerly of Frederick H. Griswold nine hundred eighty five and 40/100 (985.40) feet; NORTHEASTERLY by lots 524, 524-B and 524-A, as shown on said plan, four hundred eighteen and 43/100 (418.43) feet, and NORTHWESTERLY by said lot 524-A, as shown on said plan, five hundred eighty three and 0/100 (583.06) feet. All of said boundaries are determined by the Court to be located as shown upon plan numbered 11802-42, draw by Merrimack Engineering Services, Surveyors, dates September 13, 1985, as modified and approved by the Court, filed in the Land Registration Office, a copy of a portion of which is filed with certificate of title 55254 in said Registry, and the above described land is shown as lot 698, on last mentioned plan. Part of the above described land is subject to a Taking of Easement by the Essex County Commissioners, dated July 16 1963, and filed as Document 106456 in said Registry, and shown on plan filed with said Document. The above described land is subject to the rights and easements in favor of said lot 699, as described in Deed Document 206220 in said Registry. WHEREAS the City of Salem has agreed to offer Thermal Circuits, Inc. a Tax Increment Financing Agreement; WHEREAS, Thermal Circuits, Inc. will invest approximately $975,000 to construct a new manufacturing facility and will retain 81 jobs and create approximately 40 new permanent, full-time jobs for residents of the Beverly & Salem Regional Economic Target Area, and the City within three years. NOW THEREFORE BE IT RESOLVED that the Salem City Council approves the Certified Project application of Thermal Circuits, Inc., and forwards said application for certification to the Massachusetts Economic Assistance Coordinating Council for its approval and endorsement. Adopted this day of 1199 , by the Salem City Council. Date Neil J. Harrington, Mayor Attest: Deborah E. Burkinshaw, City Clerk SEAL Land Registration Office, a copy of a portion of which is filed with certificate of title 55254 in said Registry, and the above described land is shown as lot 698, on last mentioned plan. Part of the above described land is subject to a Taking of Easement by the Essex County Commissioners, dated July 16 1963, and filed as Document 106456 in said Registry, and shown on plan filed with said Document. The above described land is subject to the rights and easements in favor of said lot 699, as described in Deed Document 206220 in said Registry. WHEREAS the City of Salem has agreed to offer Thermal Circuits, Inc. a Tax Increment Financing Agreement; WHEREAS, Thermal Circuits, Inc. will invest approximately $975,000 to construct a new manufacturing facility and will retain 81 jobs and create approximately 40 new permanent, full-time jobs for residents of the Beverly& Salem Regional Economic Target Area, and the City within three years. NOW THEREFORE BE IT RESOLVED that the Salem City Council approves the Certified Project application of Thermal Circuits,Inc., and forwards said application for certification to the Massachusetts Economic Assistance Coordinating Council for its approval and endorsement. Adopted this day of (/�e24 199, by the Salem City Council � a. Date Neil J. Harfmgton, Ma' or Attest: Deborah E. Burkinshaw, City Clerk SEAL RESOLUTION 3 AUTHORIZING THE USE OF TAX INCREMENT FINANCING IN THE SALEM ECONOMIC OPPORTUNITY AREA WHEREAS, the City of Salem is part of the area designated the Beverly & Salem Regional Economic Target Area and the Salem Economic Opportunity Area; WHEREAS, there is strong support for economic development and the use of Tax Increment Financing as an economic development tool to create jobs and encourage business expansion and relocation to the City of Salem; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Salem that: (1) Tax Increment Financing may be used as a tool to encourage economic development within the Salem Economic Opportunity Area. (2) The Mayor is hereby authorized to execute and implement Tax Increment Financing agreements. Adopted this day of 19 by the Salem City Council at a regular City Council meeting with a quorum present. Neil J. Harrington, Mayor Date ATTEST: Deborah E. Burkinshaw, City Clerk SEAL RESOLUTION AUTHORIZING THE USE OF TAX INCREMENT FINANCING IN THE SALEM ECONOMIC OPPORTUNITY AREA WHEREAS, the City of Salem is part of the area designated the Beverly& Salem Regional Economic Target Area and the Salem Economic Opportunity Area; WHEREAS, there is strong support for economic development and the use of Tax Increment Financing as an economic development tool to create jobs and encourage business expansion and relocation to the City of Salem; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Salem that: (1) Tax Increment Financing may be used as a tool to encourage economic development within the Salem Economic Opportunity Area. (2) The Mayor is hereby authorized to execute and implement Tax Increment Financing agreements. ] p Adopted this 7 day of 19_X�_by the Salem City Council at a regular City Council meeting with a quorum present. Neil J. H ngton, may6r Date ATTEST: GDe— borah E. Burkinshaw, City Clerk SEAL RESOLUTION 4 AUTHORIZING A TAX INCREMENT FINANCING AGREEMENT FOR THERMAL CIRCUITS, INC. WHEREAS, the City of Salem is part of the area designated the Beverly & Salem Regional Economic Target Area and the Salem Economic Opportunity Area; WHEREAS, the Mayor of the City of Salem has prepared a Tax Increment Financing Agreement in accordance of Chapter 40 and 751 CMR 11.00; WHEREAS, there is strong support for economic development and the use of Tax Increment Financing as an economic development tool to encourage business expansion and relocation to the City of Salem; WHEREAS, there is strong support for using Tax Increment Financing to encourage the development of a manufacturing facility for Thermal Circuits, Inc. off Swampscott Road in the Salem Economic Opportunity Area. NOW THEREFORE BE IT RESOLVED by the Salem City Council that: (1) The Tax Increment Financing Agreement be adopted as it has been substantially submitted to the City Council. A copy of said Tax Increment Financing Agreement is attached as Exhibit A, and made part of this Resolution. (2) The area to be designated as a Tax Increment Financing Zone is: That land situated in Salem in the County of Essex and Commonwealth of Massachusetts, bounded and described as follows: NORTHEASTERLY by Swampscott Road eight hundred ten and 28/100 (810.28) feet; SOUTHERLY and SOUTHEASTERLY on two courses measuring together eight hundred forty four and 95/100 (844.95) feet, NORTHEASTERLY thirty (30) feet, SOUTHEASTERLY eighty two and 84/100 (82.84) feet, NORTHEASTERLY three hundred fifty (350) feet, NORTHWESTERLY sixty seven and 84/100 (67.84) feet, NORTHEASTERLY two hundred sixty six and 11/100 (266.11) feet, NORTHWESTERLY one hundred forty one and 51/100 (141.51) feet, NORTHEASTERLY one hundred seventy three and 97/100 (173.97) feet by lot 699, as shown on plan hereinafter mentioned; SOUTHEASTERLY by land now or formerly of Margaret J. Bryson seven hundred sixteen and 16/100 (716.16) feet; SOUTHWESTERLY by lot 633, as shown on said plan, one thousand thirty four and 30/100 (1034.30) feet; WESTERLY, by land now or formerly of Frederick H. Griswold nine hundred eighty five and 40/100 (985.40) feet; NORTHEASTERLY by lots 524, 524-B and 524-A, as shown on said plan, four hundred eighteen and 43/100 (418.43) feet, and NORTHWESTERLY by said lot 524-A, as shown on said plan, five hundred eighty three and 0/100 (583.06) feet. All of said boundaries are determined by the Court to be located as shown upon plan numbered 11802-42, draw by Merrimack Engineering Services, Surveyors, dates September 13, 1985, as modified and approved by the Court, filed in the Land Registration Office, a copy of a portion of which is filed with certificate of title 55254 in said Registry, and the above described land is shown as lot 698, on last mentioned plan. Part of the above described land is subject to a Taking of Easement by the Essex County Commissioners, dated July 16 1963, and filed as Document 106456 in said Registry, and shown on plan filed with said Document. The above described land is subject to the rights and easements in favor of said lot 699, as described in Deed Document 206220 in said Registry. (3) A map of the Tax Increment Financing Zone is hereby attached as Exhibit B and made a part of this Ordinance. (4) The Tax Increment Financing Agreement shall be binding on all subsequent owners of the property in the Tax Increment Financing Zone. The City of Salem reserves the right to review and renegotiate the Tax Increment Financing Agreement if the business activity ceases to be fully operational during the life of the Tax Increment Financing Agreement, as specified in the Tax Increment Financing Agreement. (5) A copy of the adopted Tax Increment Financing Agreement shall be forwarded to the Massachusetts Economic Assistance Coordinating Council for its approval. (6) The effective date of the Tax Increment Financing Agreement shall be July 1, 1995 or the date which the Tax Increment Financing Agreement is approved by the Massachusetts Economic Assistance Coordinating Council, whichever is later. (7) The Mayor is hereby authorized to execute and implement the Tax Increment Financing Agreement. Adopted this day of 19 by the Salem City Council at a regular City Council meeting with a quorum present. Neil J. Harrington, Mayor Date ATTEST: Deborah E. Burkinshaw, City Clerk SEAL EXHIBIT A: Tax Increment Financing Agreement EXHIBIT B: Map of Tax Increment Financing Zone �ONUIT�� CITY OF SALEM NF. In City Council, Ordered: That the Mayor be authorized to apply for and expend a $260,000 Community Development Action Grant through the Massachusetts Executive Office of Communities and Development to support the construction of a road and infrastructure off of Swampscott Road in Salem for the purpose of accessing and serving a six-parcel industrial park under development. r Adopted this 9 day of 19by the Salem City Council at a regular City Council meeting with a quorum present. Neil J. H�ar[ington, Maydr Date ATTEST: Deborah E. Burkinshaw, City Clerk SEAL EXHIBIT A: Tax Increment Financing Agreement EXHIBIT B: Map of Tax Increment Financing Zone TAX INCREMENT FINANCING AGREEMENT CITY OF SALEM, MASSACHUSETTS and THERMAL CIRCUITS, INC. This agreement is made the 30th day of March, 1995,by and between the CITY OF SALEM,a municipal corporation duly organized under the laws of the Commonwealth of Massachusetts, having a principal place of business at City Hall,93 Washington Street, Salem, Massachusetts, 01970, acting through the Mayor,Neil J. Harrington, (hereinafter called "the CITY"), and THERMAL CIRCUITS, INC., a Massachusetts corporation with a principal place of business at 4 Jefferson Avenue, Salem, Massachusetts, 01970 and KAK Realty Trust(hereinafter collectively called "the COMPANY") . This Agreement will take effect as of July 1, 1995 (Fiscal Year 1996). WHEREAS, the COMPANY wishes to locate a manufacturing facility off of 58 Swampscott Road in Salem; and WHEREAS, the CITY is willing to grant tax concessions in return for guarantee of construction of a new manufacturing facility and employment opportunities for local workers; and WHEREAS, the Salem City Council resolved on March 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 March 9, 1995 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 locate a manufacturing facility on a certain parcel of land off of 58 Swampscott Road in Salem. "The FACILITY" as used herein means a building to be constructed containing approximately 31,000 square feet plus site improvements;that is, improvements to the unimproved parcel of land as of the date of this agreement. 2. During the life of this agreement, if the COMPANY decides to sell the FACILITY or the business or to otherwise transfer control of the FACILITY or business and/or operations thereof,the COMPANY shall give the CITY at least three months notice of said sale or transfer. Said notice shall be given by certified mail, return receipt requested, to the Mayor, City Hall, 93 Washington Street, Salem, Massachusetts, 01970. B. THE CITY'S OBLIGATIONS 1. The CITY shall grant a tax increment financing exemption to the COMPANY in accordance with Massachusetts General Laws, Chapter A, Section 3E, Chapter 40, Section 59, and Chapter 59, Section 5. Said exemption shall be granted on the construction of the FACILITY. Said exemption shall be valid for a period of ten (10) years,beginning with fiscal year 1996 (July 1, 1995) and ending with fiscal year 2006. During each year of this agreement,the company will pay taxes based on the current value of the unimproved land as of the date of this agreement(the base tax bill) and on that portion of the value of the FACILITY which is not exempted under the agreement. The exemption schedule on the value of the FACILITY works as follows: For the first two(2) years, the COMPANY will pay only the base tax bill and will be granted an exemption of 100 percent of the full value of the FACILITY. In year three, the COMPANY will pay taxes on 12.5%of the full value of the FACILITY,plus the base tax bill. In year four, the COMPANY will pay taxes on 25%of the full value of the FACILITY,plus the base tax bill. In year five,the COMPANY will pay taxes on 37.5% of the full value of the FACILITY, plus the base tax bill. In year six,the COMPANY will pay taxes on 50% of the full value of the FACILITY, plus the base tax bill. In year seven,the COMPANY will pay taxes on 62.5%of the full value of the FACILITY,plus the base tax bill. In year eight, the COMPANY will pay taxes on 75%of the full value of the FACILITY, plus the base tax bill. In year nine, the COMPANY will pay taxes on 87.5%of the full value of the FACILITY, plus the base tax bill. In year ten, the COMPANY will pay taxes on the full value of the FACILITY. C. OTHER CONSIDERATIONS I. This Tax Increment Financing Agreement shall be binding on all subsequent owners of the property. The City of Salem reserves the right to review and renegotiate the Tax Increment Financing Agreement if the business activity ceases to be fully operational during the life of the Tax Increment Financing Agreement. 2. If the COMPANY decides to expand the facility at any time during the life of the Tax Increment Financing Agreement, the CITY and the COMPANY may renegotiate the Tax Increment Financing Agreement to exempt all or part of the value of the expansion from property taxes. The exact amount of that exemption will be determined at the time of expansion. Executed as a sealed instrument on the day and year first above written. CITY OF SALEM THERMAL CIRCUITS, INC. NeilJ. Haf�ingi on, Mayor Anth y President 7 P�otary Public My commission expires City of Salem Application for Designation of Salem Economic Opportunity Area March 10, 1995 PART A: Applicant Information 1. Please check one: X The ETA application was previously submitted to the EACC. The ETA application has been submitted with this EOA application. This is an application for amendment to an EOA application previously approved by the EACC. 2. Name of each municipality completing this application: City of Salem PART B: MANDATORY REQUIREMENTS FOR THE PROPOSED EOA 1. Location of Proposed EOA: The City of Salem seeks EOA designation for the entire City. (a) Please see the enclosed map of the designated ETA, including the location of the proposed EOA. (b) Provide see the enclosed detailed map of the proposed EOA, indicating the existing streets, highways, waterways, natural boundaries, and other physical features. 2. Basis for EOA Designation: Check the applicable category or categories (see definitions in Attachment 11). The EOA proposed for designation as an EOA is a "blighted open area." The area proposed for designation as an EOA is a "decadent area The area proposed for designation as an EOA is a "substandard area." _x_ 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. 1 City of Salem Application for Designation of Salem Economic Opportunity Area March 10, 1995 Reasons for seeking a City-wide EOA designation: • Within Salem, there are several areas which meet the legal descriptions of "blighted open area", "decadent area" and "substandard area" as defined in 402 CMR 2.00 and which would be appropriate for EOA designation. • Significant public investment is currently underway throughout Salem, with additional investments in infrastructure planned during the coming years. With a City-wide EOA designation, we believe we will have the flexibility to act more efficiently and effectively in promoting private investment to accompany this public improvements. • In recent months, Salem has seen a renewal of business activity in several areas of the City and will assist several private firms in pursuing approval as certified projects. In our discussions with representatives of these firms, we have learned the importance of quick action. Whether they are planning to construct a new manufacturing facility, open a restaurant or renovate an abandoned building, representatives of these firms require prompt action on the part of City officials in order to make decisions as they evaluate Salem against competing locations. With a City-wide EOA designation we can take advantage of this renewed interest in Salem, certify projects quickly without filing several EOA applications and keep or attract these firms to Salem. Public Investments and Private Development Planned in Salem: AT THE WATERFRONT: Public investment: Mayor Neil J. Harrington recently announced an ambitious plan for development of the South River area. The plan calls for investment in projects that include but are not limited to: construction of a new Congress Street Bridge (to begin this Spring); dredging of the South River Channel to enable more small boat traffic, establishment of a public marina for transient docking and the development of marine-related businesses; creation of a marina walk; and construction of a 200-car municipal parking garage at the intersection of Congress and Derby Streets (in design, construction expected to begin in 1996). Potential Certified Projects: A growing manufacturer of automated, PC-based fabric cutting machines with 65 employees will relocate to Shetland Properties, 2 City of Salem Application for Designation of Salem Economic Opportunity Area March 10, 1995 an office/industrial park located on Salem's waterfront. The company is attracted to the local amenities as well as the prospect of earning state investment tax credits. The Salem Redevelopment Authority and Eastern Bank have agreed to provide a loan to finance the company's relocation and renovation costs. City officials will work with representatives of the manufacturer to secure certified project status for the company. THE BRIDGE STREET CORRIDOR/NORTH RIVER: Public investment: The $57 million Beverly-Salem Transportation Project is currently underway. The project includes the construction of a new Beverly- Salem Bridge, the addition of a two-lane access road from the Bridge to downtown Salem; and the widening of Bridge Street, one of the City's entrance corridors. The Beverly Transportation Project will greatly improve access into and travel through downtown Salem from communities to the North and has the potential to catalyze major economic activity in and near downtown Salem. Other public projects in the planning stages include the construction of a new parking facility at the MBTA's Salem Station. Potential Certified Projects: 1.) The City is working with Northland Development Corporation, the firm selected to redevelop the former Parker Brothers site, to promote the reuse of this 15-acre property. Representatives of Northland are considering a variety of possible uses for the property, and City officials are prepared to offer TIF agreements in order to attract appropriate users to the site. 2.) The City is developing a TIF agreement with the a restaurant chain which will buy the former Hong Kong Restaurant at 15 Bridge Street. City officials believe this reputable organization will make an important contribution to the renewal and improvement of the Bridge Street corridor. AT SWAMPSCOTT ROAD: Public Development: The City will construct a road and infrastructure to develop a 29-acre, six parcel industrial park off of Swampscott Road in Salem. One of Salem's greatest challenges in maintaining its industrial base is the City's lack of environmentally clean, industrially zoned land available for development. This project will go a long way toward surmounting that obstacle and will enable the City to offer Salem firms and other North Shore companies a place to expand or relocate. 3 City of Salem Application for Designation of Salem Economic Opportunity Area March 10, 1995 Potential Certified Projects: 1.) Thermal Circuits, a Salem manufacturer of heaters and heater assemblies with 81 employees, will be the first property owner in this industrial park. This project is described in more detail below. 2.) The City has entered serious discussion with a Massachusetts high-tech company which seeks to construct a manufacturing facility in an ETA community. ON BOSTON STREET Public Projects: The City is currently improving this entrance corridor, widening traffic lanes, enhancing the drainage system and improving lighting and implementing new safety measures. Meanwhile, the Commonwealth plans to make major improvements to Commercial Street in order to improve the connection between Bridge and Boston Streets and enhance opportunities for business development in this area along the North River. Potential Certified Projects: With EOA status, the City will finally have a tool available to redevelop some of the most troublesome vacant properties in Salem, including the former Flynntan Leather Factory on Bridge Street, a contaminated site and the soon to be vacated GTE plant located at the intersection of Bridge and Boston Streets. 4. Effective Time Period for EOA Designation: The City of Salem proposes to maintain the EOA designation for a period of 20 years. 5. Local Criteria for Designation of EOAs: In addition to the mandatory criteria set forth by the Commonwealth, the proposed Salem EOA meets the criterion specified in Salem's application for ETA designation: • EOAs should contain a minimum of three acres of undeveloped land or 15,000 square feet of vacant commercial or industrial space. 6. Economic Development Goals: The short- and long-term economic development goals at the proposed Salem ECA are: • To retain the manufacturing firm Thermal Circuits, Inc. in Salem. The company has outgrown its facility on Jefferson Ave. Development plans for the proposed Salem EOA include the construction of a new Thermal Circuits plant off of Swampscott Road. 4 City of Salem Application for Designation of Salem Economic Opportunity Area March 10, 1995 • To develop the five remaining vacant industrial parcels at Swampscott Road for firms that want to expand in or relocate to Salem, in effect creating a small industrial park. • To strengthen and expand the City's manufacturing/industrial sector. One of the greatest challenges Salem faces in trying to maintain and expand our industrial base is a lack of environmentally clean, properly zoned industrial parcels suitable for development. Development of an industrial park at Swampscott Road will go a long way toward surmounting that obstacle. EOA designation will make the area a more competitive location for business and enhance opportunities to maintain and expand Salem's industrial base. • To expand the City's tax base. • To create jobs for local residents. • To encourage the productive reuse of abandoned buildings and former industrial sites. 7. Local Services: In order to provide for an increase in the efficiency of the delivery of local services within the proposed EOA, The City is making improvements in services throughout the City. AT SWAMPSCOTT ROAD: The City has obtained a Community Development Action Grant to construct a road and infrastructure to serve three of six available development parcels. The City will use CDBG funds to construct the remaining road and infrastructure, ensuring that the entire 29-acre area is served and ready for development, in effect creating a small industrial park. These CDBG funds will be repaid by the landowner as betterment fees as the remaining parcels are developed. AT THE WATERFRONT: Infrastructure improvements include the construction of a new Congress Street Bridge (to begin this Spring), dredging of the South River Channel to enable more small boat traffic and construction of a 200-car municipal parking garage at the intersection of Congress and Derby Streets (in design, construction ekpected to begin in late 1995). 5 City of Salem Application for Designation of Salem Economic Opportunity Area March 10, 1995 THE BRIDGE STREET CORRIDOR/NORTH RIVER: Improvements include the $57 million Beverly-Salem Transportation Project, which includes the construction of a new Beverly-Salem Bridge, the addition of a two-lane access road from the Bridge to downtown Salem; and the widening and of Bridge Street, one of the City's entrance corridors. ON BOSTON STREET The City is currently making improvements to this entrance corridor, widening traffic lanes, making improvements to the drainage system and improving lighting and safety. 8. Compliance with Community Reinvestment Act: The City of Salem does not link its choice of banking institutions to the bank's compliance with the requirements of the Community Reinvestment Act. 9. Project Approval: (a) City Planner William Luster will review and approve project proposals on behalf of the municipality. (b) The standards and procedures for review of project proposals are as follows: Application procedure: First, City officials will meet with representatives of firms interested in locating within the EOA to determine if their companies can advance the City's economic development goals for the area. City officials will assist companies in completing applications for project certification. Time frame for review and determination: The City will review each application for project certification and determine its eligibility within a week of the date of submission. Criteria for approval of project proposals: The City will encourage projects that meet one or all of the following descriptions: • The project will provide jobs for residents of Salem. • The project will, after property tax exemptions expire, generate significant tax revenue for the City. 6 City of Salem Application for Designation of Salem Economic Opportunity Area March 10, 1995 • The project will allow the expansion of a Salem-based firm. • The project will establish a new company in Salem. • The project will help to maintain or expand the City's industrial base. 10. Intent of Businesses to Locate in EOA: A Firm Commitment from Thermal Circuits, Inc: Thermal Circuits, Inc., a Salem manufacturer of heaters and heater assemblies, has outgrown its Jefferson Avenue facility and wishes to locate off of Swampscott Road proposed Salem EOA. This innovative manufacturing firm has prospered in Salem for 25 years, and now provides 81 high-quality, stable jobs for local residents of diverse levels of skill and education. The company's existing business plan calls for 15 to 18 percent growth each year for the next five years. These growth projections translate into approximately nine to 12 new factory-level jobs per year, with additional administrative positions, for the next five years. The average length of service at the company is 14 years. This project advances the City's economic development goals for the Salem EOA: • Creates and retains jobs: Construction of a new Thermal Circuits facility will retain 81 jobs in Salem and lead to the creation of 15 new jobs in Spring of 1995 and 40 to 60 additional positions within the next three years. • Generates tax revenue: During the time Thermal Circuits' TIF Plan is in effect, property tax revenues will actually increase, even as the company receives generous tax exemptions. The Chairman of Salem's Board of Assessors estimates that the project immediately generates $39,000 in additional tax revenue, since the tax bills increase for the parcels surrounding the Thermal Circuits plant. After Thermal Circuits' TIF Plan expires, the development of this project will generate $76,456 per year in property tax revenue. • Expands a Salem-based firm: Thermal Circuits, a rapidly growing manufacturer, will continue to its impressive record of growth in a 7 City of Salem Application for Designation of Salem Economic Opportunity Area March 10, 1995 modern, 26,0000 s.f. facility. • Maintains the City's industrial base: EOA designation and approval of Thermal Circuits as a certified project will keep the company in Salem. The project will actually improve the City's industrial base as Thermal Circuits is a rapidly growing firm with plans for continued expansion and additional hiring during the next five years. Other Businesses interested in locating off of Swamspcott Road: The City hopes to attract similar firms to the remaining five industrial parcels off of Swampscott Road. Growing, Salem-based firms and other North Shore companies seeking to relocate would be the likely tenants of the proposed EOA. The proposed industrial park is particularly appropriate for small manufacturers that do not require immediate access to Route 128. Already, representatives of two manufacturers -- one located in Peabody and another headquartered in Lexington — have met with City officials to discuss building facilities in the Swampscott Road Industrial Park. Both are attracted by Salem's ETA designation. Interest in the Bridge Street Area: Representatives of a family restaurant chain are negotiating a tax Increment financing plan with the City. Interest in the Waterfront: The City recently learned that a growing manufacturer of automated, PC-based fabric cutting machines with 65 employees intends to locate at Shetland Properties during 1995. PART C: SPECIAL REQUIREMENTS FOR LARGE MUNICIPALITIES Salem's population is less than 50,000. The City is not required to submit this section of the application. 8 City of Salem Application for Designation of Salem Economic Opportunity Area March 10, 1995 PART D: COMMITMENT TO PROVIDE LOCAL PROPERTY TAX RELIEF Each 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 EOA. Please attach a copy of each municipality's binding written offer, indicating the type of tax relief selected. If tax increment financing is selected, include a copy of the tax increment financing plan adopted in accordance with the provisions of M.G.L. c.40 Section 59 and the regulations promulgated thereunder. The City of Salem will offer tax increment financing plans to certified projects with the Salem. City officials anticipate that each TIF plan will be designed to suit the individual certified project. Attached is the proposed TIF plan for Thermal Circuits, Inc. This plan has been endorsed by Salem Mayor Neil J. Harrington, the Salem City Council and representatives of Thermal Circuits. 9 March 10, 1995 Salem Economic Opportunity Area SECTION 3 PROJECT CERTIFICATION Instructions: This application form should be completed by businesses seeking project certification. Businesses may be eligible for project certification if the business controls a facility which is located or which intends to locate or expand its operations in an EOA. The business must obtain municipal approval for the project prior to submitting the application form to the EACC. The application should be typed on 8/2/ x 11 inch paper. The pages should be indexed and numbered. Please submit ten (10) copies of the completed application and ten (10) copies of all other required application materials to Karen S. Baptiste, Director of Economic Assistance, Massachusetts Office of Business Development, One Ashburton Place, Room 2101, Boston, MA 02108. PART A: APPLICATION INFORMATION 1. Name and address of business submitting application: Thermal Circuits, Inc. 4 Jefferson Ave. Salem, MA 01970 2. Name and address of project (if different from business): This project involves the construction of a new manufacturing facility for Thermal Circuits at 58 Swampscott Road in Salem. 3. Location of ETA: Beverly & Salem Regional ETA 4. Location of EOA: Salem EOA 5. Nature and Purpose of Project: Nature of Project: Thermal Circuits, a Salem manufacturer of heaters and heater assemblies, intends to purchase a four-acre development parcel and construct a new, 26,000 s.f. manufacturing facility in the Salem Economic Opportunity Area in Salem. The building will be constructed to allow for future expansion. [According to the Salem Zoning Ordinance, the maximum allowable foot print (ground floor) is 78,408 1 square feet. The maximum height is 50 feet. Thus, depending on the first floor height, three to four stories could be added. If four stories are constructed, the maximum allowable building size would be 313,632 square feet (4 floors, each 78,408 square feet).] The company will continue to operate its current facility at Jefferson Avenue for at least two years, possibly longer. Purpose of Project: For Thermal Circuits, the purpose of this project is to increase its manufacturing capability. The company must expand its operations to continue to serve its customers and grow. For the City, the purposes of this project are: to retain a growing manufacturer in the City; save 81 jobs and promote the opportunity to generate new jobs; expand the City's tax base and begin the development of an industrial park off of Swampscott Road. The industrial park-- approximately 29 acres of undeveloped, industrially-zoned land -- consists of six development parcels. Thermal Circuits will be the first company to locate in the park. Construction of a road and infrastructure to serve the entire area will accompany development of Thermal Circuits' new facility. This infrastructure development -- to be paid for with federal Community Development Black Grant funds and with a Community Development Action Grant from the Executive Office of Communities and Development -- will open the entire area for development. PART B: MANDATORY REQUIREMENTS 1. Is the proposed project an expansion of an existing business that is currently located in the EOA? Yes. Thermal Circuits currently operates a facility at 4 Jefferson Avenue in Salem. The company will construct a new plant at Swampscott Road in Salem but will continue to operate its Jefferson Avenue facility for at least two years after construction of the new plant 2. Is the proposed project a new facility to be located within an EOA after the date of this application? Yes. (a) Is this the applicant business'first facility in the Commonwealth? No. (b) How many new permanent full-time employees will be employed by the applicant business at the new facility? Approximately 12 new permanent, full-time employees will be hired in the first year and assigned to the new plant. Thereafter, approximately nine to 12 new employees per year will be hired and assigned to the new facility. 2 (c) (i) Will the project result in the replacement or relocation of any permanent,full- time employees who work existing facilities located in the Commonwealth? If yes, where are the facilities located and how many permanent full-time employees will be replaced or relocated? When the new facility is complete, approximately 60 of Thermal Circuits' 81 current employees will be assigned to the new plant. Approximately 21 current employees will remain in the facility at 4 Jefferson Avenue in Salem. We anticipate that 12 new employees will be hired and assigned to the new facility in the first year. Thereafter, approximately nine to 12 new employees er earw ill be hired and assigned to then w facility. (ii)Provide documentation demonstrating that you are not seeking project certification or relocation for any portion of the project that is attributable to the replacement or relocation of permanent full-time employees of an existing facility already located in the Commonwealth. This project allows for the continued growth of Thermal Circuits and is more than simply the relocation of employees from one facility to another. As the answer to question cl shows, some employees will be reassigned to the new facility. However, this project generates jobs as well. To meet current orders and obligations, Thermal Circuits must keep both plants in operation. In time, it will be more efficient to move all operations to the new, modern facility off of Swampscott Road. The new facility will be built to allow for expansion. We expect that in years to come, Thermal Circuits will expand the building size beyond 26,000 s.f. The reassignment of employees from the existing plant to our new facility will be smooth and convenient. The new facility is located just 1.5 miles from the Jefferson Avenue plant. Many of the employees who walk to work will continue to be able to do so. Those who rely on public transportation will also continue to be served. It is important to note that The City of Salem has agreed to fund a reuse study for the existing Jefferson Avenue facility. This study will examine redevelopment options for the site. Both the City of Salem and Thermal Circuits are committed to pursuing a productive reuse of the Jefferson Avenue facility when Thermal Circuits vacates the building. 3. Does the proposed project involve the renovation and reuse of an abandoned building? No. 3 4. Local Employment - How many residents of the ETA are expected to be employed in a new permanent full-time jobs at the project? What actions will you take to recruit employees from among residents of the ETA? Thermal Circuits expects that most (perhaps 80%) of its new hires will be from Salem. The company plans to advertise only in the Salem Evening News. 5. Affirmative Action - describe your affirmative action goals and recruitment techniques that will be used to fill the newly created jobs. See the attached sheet for Thermal Circuits' hiring policy. We currently employ 18 minorities out of 81 total employees. 6. Agreement Between the Business and Area banks - If the business has entered into any agreement with area banking institutions relating tot he business' intention to deposit funds in these banks and the banks' intentions to commit a portion of such deposits to fund loans to businesses in the EOA, pursuant to the Massachusetts capital Access Program, established by M.G.L. c. 23A, Section 57, provide documentation of such agreement or agreements. No such agreement exits. 7. Economic Benefits of Project Certification - Provide a description of the benefits that are anticipated for the business and the project, if the project is certified. Benefits to Thermal Circuits: • The company will receive approximately $232,000 in local property tax benefits over 10 years. • The construction of a $975,000 plant will entitle the company to $48,750 in state investment tax credits. • The company will receive additional state investment tax credits as a result of investment in equipment. • Construction of a new facility will enable Thermal Circuits to increase sales by 46% by 1998. • The City of Salem has agreed to finance a study of the reuse of the Jefferson Avenue facility. This study will help the company to identify parties interested in redeveloping the building and enhance the company's ability to sell this real estate. 4 Benefits to the City of Salem: • This project retains 81 jobs in Salem and adds 40 more. • The City has agreed to a 10-year tax increment financing plan with Thermal Circuits. Nevertheless, this project immediately generates $39,000 in additional tax revenue, since the tax bills increase for the parcels surrounding the Thermal Circuits plant. • Thermal Circuits will maintain operations at its existing Jefferson Avenue facility for at least two years, continuing to generate revenue for the City. • After all local property tax abatements expire, this project will generate $76,456 per year in property tax revenues. • Thermal Circuits plans to maintain its Jefferson Avenue facility for at least two years, providing tax revenue for the City. • Prior to Thermal Circuits' move of all operations to its new facility, the City will conduct a reuse study to determine the most productive redevelopment plan for the Jefferson Avenue facility, taking steps to ensure that the building does not remain vacant for long. 8. Likelihood of Increasing Employment Opportunities for Residents of the Project ETA - Provide any information, documentation, or studies which demonstrate that: (a) the business has the intention and capacity to achieve the anticipated level of new permanent full-time jobs for residents of the project area. (b) taking into consideration existing economic conditions, the proposed project is likely to succeed in creating and retaining the anticipated level of new permanent full- time jobs for residents of the project area. Thermal Circuits is in the third year of an original business plan. This plan has been revised (upward) on two occasions during this time. Forecasts have been met or exceeded each year. This record of fast growth suggests that we have both the intention and capacity to continue to fulfill our sales and employment forecasts. We expect that 80 percent (possibly more) of these jobs will go to Salem residents. 5 GROWTH OF THERMAL CIRCUITS: 1992 TO 1998 Year Sales Total Employment 1992 $3.63 in 57 1993 $4.20 in 63 1994 $4.45 in 72 1995 $5.13 in (estimated) 85 (estimated) 1996 $5.75 in (estimated) 95 (estimated) 1997 $6.50 in (estimated) 107 (estimated) 1998 $7.48 in (estimated) 1 120 (estimated) 9. Other Benefits to the Project ETA - Provide any information, documentation, or studies demonstrating any additional benefits (i.e. reduction of blight, reuse of abandoned buildings, clean up on contaminated land, job training, provision daycare, etc.) As the first company to make a commitment to locate in the vacant area off of Swampscott Road, Thermal Circuits is the catalyst for development of a six-parcel industrial park. To develop this industrial park and serve Thermal Circuits' new facility, a road and infrastructure will be constructed, opening a total of six parcels for development. Thus this project encourages the following economic spin-offs: • Development of an industrial park. This project will enable the City to offer environmentally clean, industrially zoned land to firms interested expanding within or relocating to Salem. • Expansion of commercial tax base. The Chairman of Salem's Board of Assessors estimates that development of all six industrial parcels will generate $260,000 in property tax revenues annually. • Generation of jobs. Development of an industrial park has the potential to create 750 to 1,000 jobs. PART C: SPECIAL REQUIREMENTS FOR REAL ESTATE PROJECTS This project is not a real estate project. 6 PART D: MUNICIPAL APPROVAL 1. Documentation of Municipal Approval -- Attached are resolutions passed by the Salem City Council endorsing this application for project certification and the Tax Increment Financing plan negotiated by the City and Thermal Circuits. 2. Duration of Project Certification -- The City of Salem approves this project for 10 years, as the attached City Council resolutions show. PART E: SUPPLEMENTAL INFORMATION 1. Name(s) of the business(es) intending to take advantage of state tax incentives Business Name: Thermal Circuits, Inc. Federal Employer Identification #: 042282863 Address: 4 Jefferson Ave, Salem, MA 01970 Phone: (508) 745-1662 Fax: (508) Contact Person: Anthony A. Klein, President Type of organization (check that which applies): _X_ Corporation X For profit S Corp Non-profit _Business Trust _Partnership General Partnership Limited Partnership Individual Anticipated Level of Interest: Thermal Circuits is committed to locating in the industrial park to be developed off of Swampscott Road in the Salem EOA. The company has hired architects to draw plans for the new facility and has begun to work with the land owner and the City of Salem to expedite the development and permitting processes. 2. A - If a corporation,please list the names and addresses of the officers and directors of said corporation, and any person and/or corporation with a financial interest of five percent or greater in said corporation: The following are officers and directors and owners of the company: 7 David M. Abbott, Chairman 72 Central St. Andover, MA 01810 Anthony A. Klein, President 35 Lexington Cr. Swampscott, MA 01907 John J. Kellogg, Treasurer 27 Ledge Rock Rd. Concord, MA 01742 3. Please provide the name, address, phone number and contact person for any organization which may own or control the applicant organization, or who are affiliated with the applicant business organization. Not applicable. 4. Certificate of Good Standing - Please provide proof of good tax standing in the Commonwealth of Massachusetts via a Certificate of Good Standing, which is a letter issued by the Massachusetts Department of Revenue. To obtain a copy of a Certificate of Good Standing Please see Attachment 1 of this application. We filed our request for a Certificate of Good Standing with the Department of Revenue on February 23, 1995. 8 City of Salem Tax Increment Financing Plan for Thermal Circuits, Inc. March 10, 1995 I. LOCATION A. Economic Opportunity Area: Salem EOA B. Municipality: City of Salem C: Tax Increment Financing (TIF) Zone: Attached are: general location map, parcel by parcel map, property lines, all thoroughfares public rights of way and easements, land use and zoning map, and the location of proposed private project. Common description of TIF Zone: The proposed Thermal Circuits TIF Zone is located off of 58 Swampscott Road in the Salem EOA. The certificate of title is 462422 and the tax parcel is #763. Legal description of TIF Zone: Add. D. Narrative Description of TIF Zone --Needs . Problems and Opportunities: Designation of this TIF Zone meets the needs of, solves problems for and creates opportunities for both Thermal Circuits and the City of Salem. • Meeting the needs of Thermal Circuits: A rapidly growing manufacturer of heaters and heater assemblies, Thermal Circuits can no longer continue to operate in its antiquated, three-story, 20,000 s.f. manufacturing facility at 4 Jefferson Avenue in Salem. To meet customers' orders and continue to grow, the company must expand into a modern, one-floor, 26,0000 s.f. facility with room for expansion. The tax benefits offered through the Commonwealth's Economic Development Incentive Program and this TIF plan will enable the company to invest in a state-of-the-art facility. • Meeting the needs of the City of Salem: To improve its ability to retain and attract new business, the City of Salem must gain a competitive advantage over other communities with better highway access and more land available for development. The ability to offer tax increment financing, beginning with this proposal, will help Salem to retain existing industry and attract new companies to the City. • Solving problems for the City and Thermal Circuits: Approval of this TIF Zone and TIF Plan will enable Thermal Circuits to construct a new facility 1 City of Salem Tax Increment Financing Plan for Thermal Circuits, Inc. March 10, 1995 in Salem, solving the operational problems that stem from the company's cramped, antiquated plant. Approval of this project solves a problem for the City as well. Without designation as a TIF Zone, the land that makes up the TIF will not be developed through ordinary market forces. Public investment and creative economic development tools are necessary to promote the development of one of the few remaining industrially zoned, environmentally clean areas of the City of Salem. • Creating opportunityfor Thermal Circuits: Once in its new facility, Thermal Circuits will be able to continue its record of impressive growth. GROWTH OF THERMAL CIRCUITS: 1992 TO 1998 Year Sales Total Employment 1992 $3.63 in 57 1993 $4.20 in 63 1994 $4.45 in 72 1995 $5.13 in (estimated) 85 (estimated) 1996 $5.75 in (estimated) 95 (estimated) 1997 $6.50 m (estimated) 107 (estimated) 1998 $7.48 in (estimated) 120 (estimated) • Creating opportunityfor the City of Salem: Designation of this TIF Zone and approval of this TIF plan will keep Thermal Circuits in Salem, retaining jobs, creating newjobs, expanding the City's tax base and making the City a more competitive location for business. All of these benefits are described in more detail in SECTION III: TIF ZONE & ECONOMIC DEVELOPMENT. • Creating opportunityfor the City of Salem outside of this TIF Zone: Development of a new Thermal Circuits plant within this TIF Zone will serve as a catalyst for future development in the land surrounding the new facility. The Thermal Circuits TIF Zone is one of six vacant industrial parcels available at what will become a 29-acre industrial park. The City, using a state grant and Federal funds, will construct a road and infrastructure to serve all of these industrial parcels. This road 2 City of Salem Tax Increment Financing Plan for Thermal Circuits, Inc. March 10, 1995 construction and the tax incentives available through the Economic Development Incentives Program will keep Thermal Circuits in Salem, enable the development of the remaining five parcels and the creation of a small industrial park, generate jobs for area residents and expand the City's tax base significantly. E. Property owners within the proposed TIF Zone: The property owner within the TIF Zone is Thermal Circuits, Inc. II. TIME The TIF Plan and TIF Zone described here will be in effect for a period of 10 years. III. TIF ZONE & ECONOMIC DEVELOPMENT A & B Economic Opportunities and Economic Benefits to the Community: Approving the proposed TIF Zone will create the following economic opportunities and benefits: 1. It will enable Thermal Circuits, a rapidly growing manufacturer of heaters and heater assemblies, to remain in Salem and develop a 26,000 s.f. manufacturing facility. 2. Retains 81 jobs in Salem. 3. Generates jobs: Thermal Circuits expect to hire at least 15 new employees in the Spring of 1995 and more 40 to 60 employees during the next three years. 4. Increases property tax revenue in the short term: During the time that Thermal Circuits' TIF Plan is in effect, property tax revenue will actually increase, even as the company receives tax exemptions. The Chairman of Salem's Board of Assessors estimates that the project immediately generates $39,000 in additional tax revenue, since the tax bills increase for the parcels surrounding the Thermal Circuits plant. 5. Increases property tax revenue in the long term: After Thermal Circuits' TIF Plan expires, the tax impact of development will be $76,456 per year. 3 City of Salem Tax Increment Financing Plan for Thermal Circuits, Inc. March 10, 1995 6. Generates interest in Salem as a competitive location for business. If successfully approved, Salem's first TIF plan will demonstrate that the City can offer economic development tools to retain business. Success here will invite the interest of firms located outside of the City. C: PROPOSED AND POTENTIAL LAND USES Thermal Circuits will construct a 26,000 s.f. manufacturing and office facility within the proposed TIF Zone. D. ZONING IN THE TIF ZONE The TIF Zone is currently zoned for business park development. E. No part of the proposed TIF Zone is a hazardous waste disposal site. IV. TIF ZONE PROJECTS A. Planned Private Project: Thermal Circuits will develop a 26,000 s.f. manufacturing and office facility in the proposed TIF Zone. Please see the enclosed letter for evidence of the company's commitment to developing this facility. Budeet for Project: ITEM COST Land acquisition $ 50,000 Grading $ 50,000 Paving $ 45,260 Utilities $ 60,000 Parking lot lights $ 8,000 Contingency (less real estate) 10% $ 17,600 Engineering (less real estate) 4% $ 7,000 Supervision $ 10,000 New building construction $975,000 Total $1,222,860 4 I City of Salem Tax Increment Financing Plan for Thermal Circuits, Inc. March 10, 1995 Relevant business plans: Time schedule for development: Construction will be completed and the company will occupy its new facility on September 1, 1995. Expected increases in job creation: The company will add 15 new jobs in the Spring of 1995 and expects to add 40 to 60 new jobs over the next three years. Given the company's recent strong growth, these are conservative estimates of potential job creation, according to company officials. Estimates of tax revenue: During the time that Thermal Circuits' TIF Plan is in effect, property tax revenue will actually increase, even as the company receives generous tax exemptions. The Chairman of Salem's Board of assessors estimates that the project immediately generates $39,000 in additional tax revenue, since the tax bills increase for the parcels surrounding the Thermal Circuits plant. After Thermal Circuits' TIF Plan expires, the tax impact of development will be $76,456 per year. B. Planned Public Projects: The City of Salem will direct a Community Development Action Grant of$260,000 to construct a road and infrastructure from the existing Swamspcott Road to the TIF Zone (the site of Thermal Circuits' new plant.) This road will serve three of the six development parcels that make up the industrial park under development off of Swampscott Road. The City will use CDBG funds to enable the completion of a road to serve the remaining three parcels. This infrastructure development will create a small industrial park. Budget: The road is 1,500 linear feet and can be constructed for $384 per linear foot. BUDGET FOR CONSTRUCTION OF ROAD AND INFRASTRUCTURE Line Item Amount Clearance & Demolition $141,272 Street & Site Improvements $137,005 Water& Sewer Facilities $109,700 Professional Fees (3%) $ 8,867 5 City of Salem Tax Increment Financing Plan for Thermal Circuits, Inc. March 10, 1995 Cost Subtotal $516,784 Contingencies (10%) $ 51,679 Total Project Cost $568,463 V. FINANCING FOR TIF ZONE PROJECTS A. Anticipated Financing for Thermal Circuits Plant: Source: Amount: City of Salem Loan $ 50,000 (for land acquisition) Fafard Real Estate Land subsidy $ 210,000 (for land acquisition) Bank Financing $ 962,860 Total $1,222,860 B. Anticipated Financing for Construction of Road and Infrastructure: Source: Amount: Community Development Action Grant $268,553 (for construction of road and infrastructure of 700 linear feet) Community Development $299,910 (for construction of road and Block Grant infrastructure of 800 linear feet) C: Detailed Projection of Costs of Public Construction: The road is 1,500 linear feet and can be constructed for $384 per linear foot. BUDGET FOR CONSTRUCTION OF ROAD AND INFRASTRUCTURE Line Item Amount Clearance & Demolition $141,272 Street & Site Improvements $137,005 Water & Sewer Facilities $109,700 6 City of Salem Tax Increment Financing Plan for Thermal Circuits, Inc. March 10, 1995 Professional Fees (3%) $ 8,867 Cost Subtotal $516,784 Contingencies (10%) $ 51,679 Total Project Cost $568,463 D. Will betterments be used to finance any public-private projects now or within the proposed life of the TIF Plan? Yes. The portion of the road and infrastructure paid for with CDBG funds will be repaid to the City over time as the landowner, Fafard Real Estate, sells the remaining parcels served by that road. E. If Betterments or Special Assessments are a part of the TIF Plan: I. Schedule for defrayal of construction costs: Costs will be defrayed as the land owner sells the remaining five lots for development. 2. Agreement of all participating parties in the betterment: Please see the attached Memorandum of Understanding signed by representatives of the City of Salem, Thermal Circuits and Fafard Real Estate. F. Describe how private projects will be financed: Anticipated Financing for Thermal Circuits Plant: Source: Amount: City of Salem Loan $ 50,000 (for land acquisition) Fafard Real Estate Land subsidy $ 210,000 (for land acquisition) Bank Financing $ 962,860 Total $1,222,860 Thermal Circuits is weighing financing proposals from several banks. VI. TAX INCREMENT FINANCING A. Authorization to use TIF: The attached City Council resolution authorizes the City of Salem to use TIF in the Salem EOA. Also attached is a City Council resolution approving this TIF Plan for Thermal Circuits. 7 City of Salem Tax Increment Financing Plan for Thermal Circuits, Inc. March 10, 1995 B. Amount of proposed tax increment exemptions from property taxes and applicable criteria: As the attached spreadsheet shows, the City estimates the tax benefits to total approximately $231,621 over 10 years. Also, see the description of the proposed TIF Plan in part D of this section. C. Maximum percentage of public project costs that can be recovered through betterments or special assessments in lieu of the incremental real estate taxes: 0 for this project. D. TIF exemption from property taxes: 1. The term of exemption is 10 years. 2. Calculation of exemption: The base valuation of the four-acre parcel of land that makes up the proposed TIF Zone is now $1,300. Construction of the new plant will lead to anew valuation of$38,479 The increment, therefore, is $37,179. The exemption package works as follows: YEAR THERMAL CIRCUITS PAYS 1 Only the base tax bill of$1,300.' 2 Only the base tax bill of$1,300.' 3 12.5% of the increment, plus base tax bill. 4 25.0% of the increment, plus base tax bill. 5 37.5 % of the increment, plus base tax bill. 6 50.0% of the increment, plus base tax bill. 7 62.5% of the increment, plus base tax bill 8 75.0% of the increment, plus base tax bill. 9 87.5% of the increment, plus base tax bill. 10 100% of the increment, plus base tax bill. As the attached spreadsheet shows, the City estimates the tax benefits to total approximately $231,621 over 10 years. NOTE: In years one and two, Thermal Circuits will continue to operate its existing facility at 4 Jefferson Avenue, paying property taxes of $12,212.90 per year. Also note that during the time that Thermal Circuits' "CIF Plan is in effect, property tax revenue will actually increase, even as the company receives tax exemptions. The Chairman of Salem's Board of 8 I City of Salem Tax Increment Financing Plan for Thermal Circuits, Inc. March 10, 1995 Assessors estimates that the project immediately generates $39,000 in additional tax revenue, since the tax bills increase for the parcels surrounding the Thermal Circuits plant. 3. The effective date of increment exemption is January 1, 1995 or upon approval by the Economic Assistance Coordinating Council, whichever is later. VII. APPROVAL OF TIF PROJECTS TIF projects are approved by the Salem City Council. The Mayor and his staff are responsible for negotiating TIF Plans and, after Council approval, executing those plans. Evidence of local approvals of the proposed TIF Zone and TIF Plan are provided here in the form of a resolution passed by the Salem City Council on Thursday, March 10, 1995. 9 PROPERTY TAX BENEFITS AVAILABLE THROUGH TAX INCREMENT FINANCING 10-YEAR PLAN Current tax bill(base) $1,300 This is for the four-acre parcel which Thermal Circuits will develop. Tax bill after plant built $38,479 This is based on an assessed value of$1.15 million. Increment $37,179 TIF is applied to the increment. Year Year Year Year Years Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Increment $37,179 Increment $37,179 Increment $37,179 Increment $37,179 Increment $37,179 Thermal Pays $1,300 Thermal Pays $1,300 Thermal Pays $5,947 Thermal Pays $10,595 Thermal Pays $15,242 Thermal Saves $37,179 Thermal Saves $37,179 Thermal Saves $32,532 Thermal Saves $27,884 Thermal Saves $23,237 Thermal pays base tax bill. Thermal pays base tax bill. Thermal pays 12.5%of increment Thermal Pays 25%of increment Thermal pays 37.5%of increment plus the base tax bill. plus the base tax bill. plus the base tax bill. Year Year Year Year Year 10 Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Increment $37,179 Increment $37,179 Increment $37,179 Increment $37,179 Increment $37,179 Thermal Pays $18,590 Thermal Pays $23,237 Thermal Pays $27,884 Thermal Pays $32,532 Thermal Pays $38,479 Thermal Saves $19,890 Thermal Saves $15,242 Thermal Saves $10,595 Thermal Saves $5,947 Thermal Saves $0 Thermal pays 50% of increment Thermal pays 62.5%of increment Thermal pays 75%of increment Thermal Pays 87.5%of increment Thermal Pays entire tax bill. plus the base tax bill. plus the base tax bill. plus the base tax bill. plus the base tax bill. Total property tax exemptions over ten years $231,621 i Z CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT v��CONDIT�q�' WILLIAM E. LUSTER ONE SALEM GREEN City Planner �+ , 01970 at 'trr9 (508) 745-9595, EXT. 311 'fq& E FAX (508) 744-5918 SECOND DRAFT February 16, 1995 MEMORANDUM OF UNDERSTANDING The City of Salem has determined that the retention of the manufacturer Thermal Circuits, Inc. and the development of a modern facility for the company will produce substantial benefits for the community. City officials will work with representatives of Thermal Circuits to enable the company to purchase vacant land off of 29 Swampscott Road from the land owner, Fafard Real Estate & Development Corp. The City will ensure construction of a road and infrastructure to serve the new Thermal Circuits facility and will work with Fafard Real Estate to construct a road and infrastructure to serve the remaining parcels of land in the 29-acre area. These actions shall be implemented in accordance with the following stipulations: STIPULATIONS The City of Salem The City of Salem shall ensure that the following measures are carried out: 1. The City will obtain a grant of approximately $250,000 for the construction of a road and infrastructure from Swampscott Road in Salem to the site of the new Thermal Circuits facility, a site known as Lot E. (This road will effectively serve three parcels: Lots D, E and F.) The source of the grant is the Community Development Action Grant (CDAG) Program, administered by the Commonwealth's Executive Office of Communities and Development(EOCD). Should the release of these funds be delayed for any reason,the City will provide the funding for infrastructure construction and will be reimbursed upon receipt of the state grant. 1 2. The City will make a loan of approximately $200,000 to Fafard Real Estate & Development Corporation to continue construction of the road in order to serve the remaining parcels of land: Lots A, B, and C. The loan amount is subject to verification of the cost of the road specifications. 3. The City will make an interest free, deferred loan in the amount of$50,000 to Thermal Circuits for the purchase of the land. 4. The City will designate the entire 29-acre area, which includes Lot E, as an Economic Opportunity Area. This designation, when approved by the Commonwealth's Economic Assistance Coordinating Council, allows companies locating or expanding within this area to apply for state and local tax benefits. 5. The City will designate Thermal Circuits as a Certified Project within an Economic Opportunity Area. This designation, when approved by the Commonwealth's Economic Assistance Coordinating Council, does qualify Thermal Circuits for state and local property tax benefits. 6. The City will implement a property tax increment financing plan for Thermal Circuits to provide tax relief for the company. This TIF plan is outlined in detail in Exhibit 1. 7. At the end of two years, the City will fund a reuse analysis of the existing Thermal Circuits facility at 4 Jefferson Avenue. This study will determine the highest and best use of the property and will design a marketing strategy for the disposition of the site. 8. City officials will work with members of City boards to expedite the permitting process, from the development of the road to construction of Thermal Circuits' new facility. 9. City officials will obtain for Thermal Circuits a one-year, free membership to the Salem Partnership, an organization that will help to facilitate the reuse of the company's Jefferson Avenue facility. Fafard Real Estate and Development Corporation Fafard Real Estate and Development Corporation shall ensure that the following measures are carried out: 1. Fafard Real Estate will prepare all necessary plans for approval of this site as a buildable lot as soon as possible for submission to the Planning Board. 2 2. Fafard Real Estate will work closely with the City to provide the Planning Board with all necessary information to obtain all necessary permits so that a building permit for the facility can be obtained. 3. Fafard Real Estate will prepare an agreement for review by Thermal Circuits regarding the purchase of four acres of Lot E for the cost of$50,000. This parcel is valued at approximately $260,000. As a part of this agreement, Fafard Real Estate agrees to complete the grading relative to Lot E for the sum of$50,000. 4. Fafard Real Estate will install -- from the access road to the Thermal Circuits plant-- water, sewerage and drainage facilities at an estimated cost of$60,000. 5. Fafard Real Estate and Development will complete the following work for the estimated costs indicated: ITEM COST Paving $45,260 Parking lot lights 8,000 Contingency (less real estate) 17,600 Engineering (less real estate) 7,000 Supervision 10,000 6. Fafard Real Estate will submit to the Salem Planning Department the information required for the City to claim a Community Development Action Grant. 7. Fafard Real Estate will repay the City's $200,000 loan as Lots A, B, and C are sold. The amount and schedule of these repayments will be negotiated upon completion of road construction. Thermal Circuits, Inc. Thermal Circuits, Inc. shall ensure that the following measures are carried out: 1. Thermal Circuits will facilitate meetings of its consultants and architects with the staff of the Salem Planning Department to ensure a smooth permitting process. 3 2. Thermal Circuits, its consultants and architects will submit building plans to the Salem Planning Department as soon as possible in order to expedite the permitting process. 3. Thermal Circuits will expedite meetings with its experts and Fafard Real Estate so that the permitting process can proceed quickly. 4. Thermal Circuits will submit to the Salem Planning Department the information required for designation as a Certified Project by the Commonwealth's Economic Assistance Coordinating Council. 5. Thermal Circuits will submit to the Salem Planning Department the information required for the City to obtain a Community Development Action Grant. 6. Upon the sale of its Jefferson Avenue facility, Thermal Circuits will repay to the City its $50,000 loan. Other: 1. The transactions described herein are subject to the satisfactory results of a 21E evaluation conducted at Lot E. 4 EXECUTIVE OFFICE OF COMMUNITIES & DEVELOPMENT - William F. Weld, Governor Argeo Paul Cellucci,Lt. Governor Mary L. Padula, Cabinet Secretary d December 18, 1995 The Honorable Neil J. Haff ingtons��s°. City Hall 93 Washington Street Salem, MA 01970 P IC Dear Mayor Harrington: Enclosed please find one copy of a signed and executed Grant Agreement between the City of Salem and the Executive Office of Communities and Development for a Community Development Action Grant (CDAG), in the amount of $268,559. Please retain this document in the City's CDAG files. We look forward to working with the City of Salem. Sincerel Tintothy�}lT� an, Manager Co=Development Development Action Grant Program r Enclosure s:\wp\tims\salem.fin �3EG 2 " 169495 � / CITY OF SALEM MAYOR'S QFP'IiCE 100 Cambridge Street Boston, Massachusetts 02202-0044 r �y DOCS ----_---- ------ STATE FISCAL YEAR. COMMONWEALTH OF MASSACHUSETTS STANDARD CONTRACT - LONG FORM This Contract has been approved by the Executive Office for Administration and Finance and the Office of the Comptroller for use by all Commonwealth Departments. Alternative provisions may be made ONLY as specifically authorized herein: COMMONWEALTH OFMASSACHUSEITS-DFPAR7MENn.. OCD Executive Office of Communities and Development ADDRESS: 100 Cambridge Street, Boston, KA 02202 CON7RACTORN,s_wE: City of Salem ADDRESS: Salem City Hall, 93 Washington Street, Salem, HA 01970 BRrFFDEscR>YnoNOFCONTRACT sEitvlcES:The City of Salem will purchase 700 linear feet of roadway into a vacant parcel of industrial land on Swampscott Road. Using entitlement CDBG funds the City will construct an additional 800 linear feet of roadway on the same site, completi the access way for the Swampscott.Raad Industrial Park TOTAL NA)mmuM OBuGATTON OF CONTRACT: 5 268,559 SUBSIDIARY:Ate. OBJECT RODE: P 0 1 TS CONTRACT FUNDED WITH FEDERAL FL.%DST(account Type '04')_yes no CONTRACT START DATE: 19 It (See Section 1.COMPENSATION for restrictions) CONTRACT TERMINATION DATE: January 1, 1997 _ 1g For the purposes of this Contract the term'serpices'shall include'obligations due,caste incurred,goods delivered and accepted,sereius nrodered,progreace,provided, orpre-approved costs or mtcancellahle Legal commitments authorized under this Contract.•The Contractor agrees to perform the services outlined herein in accordance with the terata and conditions of this Contract, as follows: 1.COMPENSATION. (a)For E-ecurrre Devarretents covered by M G.L.c.29 "A(Obiecr in Codes CC HN 11 NM: Even if an earlier start data is indicated above,the.Contncem shall not be compensated for any services provided prior to the dab that this Concoct has been approved by the Departatent's Sectary in accordance with WI CMR 20.00,provided however,that if this approval is obtained prior to the beginning of the state fiscal year in which the Contract will be performed,the effective start date of this Contract shall be the fiat day of that stab fiscal you. (b)For M.G.Lc.29. 629A Eremet Derartments OR other Obiect Codes:Even if an earlier start data is indicated above,the Contractor will not be eampenaaad fm any services provided prior to the date that this Contract has been executed by authorized signatories of both parties, provided however,that if this Contract is executed prior to the beginning of the sats fiscal you in which the Contract will be performed,the effective start data of this Contract shall be the first day of that sure fiscal year. 2.FUNDING.LVD FISCAL YEAR APPROPRIAT7O.NS. Appropriations for expenditures by Departments of the Commonwealth an ordinarily made in the General Appropriation Act on a sate fiscal yew basis only 1-June 30)as defined in M.G.L.cA,§7.The obliptiom of the Department under this Contract fee any sats fiscal year an subject to the appropriation,allotment and availabiliry of sufficient funds to discharga the Deportment's obligations under this Contract which action in that state fiscal year,and subject to the authorization to spend such funds for the purposes of this Concoct. Pursuant to M.G.L.c_9,§26,In thee-absenw of such appropriation,allotment,availability or authorization,this Contract shall be terminated immediately upon the Contractor's receipt of written notice of termination. If the Conmror is a recipient of federal funds from the Department,the Contractor agrees to comply with all federal requirements including but not limited to federal audits.Not-for-profit corpontiom that receive federal funds from the Department must comply with the audit requirements outlined in the federal Office of Managementand Budget OMB Cirndu A-133,or as amended.Any additional federal nquiremena shall be specified by the parties in ATTACEMINTA-SCOPE OF SERVICES.4LND ADDITIONAL TERMS A.YD CONDITIONS(hereinafter refected to ae,*ATTACHMENT A) of this Contact 3. P.1YM .%7S. No payments shall be made to the Contractor prior to the dam that the executed Contract,including all relevant atachmeab,authmi eed signatures and approval,,has been filed with the Uffice of the Comptroller. The Contractor shall only be compensated for services actually provided during the period of this Contract which we specifically identified in ATTACMdENTA of this Contract. Payments to the Contactor shall not exceed either the ma:dmam a obligation identified above or the rates and budget line-items specifically identified in ATTACEDAENT B-BUDGET AND APPROVED E CFENDITDRBS(laeumafterrefomd to as'ATTACEEI ENTB1 of this Contact. Any additional payment provisions,allowable variations in budget lins-itenu amounts,authorized true lexpendiRns and owes,and budget restrictions shall be specifically detailed by the parties in ATTAC M=A of this Contact The acceptance by the Contractor of the list payment for service,performed or goods delivered upon completion of this Contract or upon termination,without any written objection,shall.in each instance operate as a release and discharge of the Commonwealth,the Department,its agentsand employees,from all claims,liabilities,responsibilities or other oblignioas relating to the performance of this Contract 4.PAYMENT.a FCFMNiSM. (a)Contractor Payoff System.This:paymsnt mechanism shall be used ONLY far'Individual' Contractors who have been determined to he-'Comsec Fnpbyees'" in accordance with the Omnibus Budget Reconciliation Act (OBRA) 1990 upon the Depa awes completion of an Internal Revenue Service SS-6 form. All mandatory payroll deductions including state and federal taxes and retirement coverage shall be made automatically under this payment machanism. The Contractor's supervisor,timesheet submission procedures and additional provisions shall be specified in ATTACMIENT A of this Contract.. (b)Pavmenr Voucher Svsum. This payment mechanism shall be used for ALL Contracts unless payments are required to be made under the fouttvetor Parnell Svf m. The Department shall review Payment Vouchers(Form Ph1 or other approved invoices submitted by the Contractor,along with any required supporting documentation,and either return any unapproved invoice within fifteen(2S)-calendar days of its receipt with a written explanation for the its npt_1ioa,ter shill make every effort to process payment of an approved invoice within forty-five(45)calendar days of its receipt,in accordance with the Office of thelComptroller regulation 615 0,1314.00. Invoices for services provided during any state fiscal year Only 1-June 30)must be submitted for payment,with say required supporting documentation,no later than the fifteenth(15th)day of August immediately following the end of that state fiscal yeu,or payments to the Coneractoriiiy be delayed without perultyto the Department.The format,detail and contents of invoices,any required supporting documentation,invoice submissionprocedmir" Department individual(s)and address(ea)to receive invoices, and additional payment procedures shall be specified by the patties in ATTACHMEN 'A of this.CmtmcL S.TERNPdATION. This Contract shall terminate on the date specified above,unless terminated prior thereto as follows: (a) Without Cauca. Either party may terminate this Contract, without cause and without penalty, by providing the other party with prior written notice of termination. Unless a different notice period is specified by the parties in ATTACHMENT of this Contract,such prior written notice shall be daliveted-to the- other party at least dirty(30)calendu days before the effective date of termination. ICTR Form 93SC-LF/ nSEE_.A17AC111,fC,NT An ,jew.L of I, CDAG COMMONWEALTH OF MASSACHUSETTS - STANDARD CONTRACT - LONG FORM (b) For Caure. if the Contactor breaches any material term or condition Of this Contract, or fail to perform or fulfill any material obligation required by this Contract, the Department may terminate or suspend this Contract by providing the Contractor with prior written notice of termination or suspension. Unless a different notice period is specified by the parties in ATTACE3MENT A of this Contract,such prior written notice shall be delivered to the Contractor at lest warn C9 caltndardays before to the effective date of termination or suspension. The Department reserves the right to terminate this Contract immediately in the event of the Contractor's criminal indictment, participation in fraudulent activities, or in the event the Contractor files for banlwptcy. (c) Emereruv. The Department cay immediateiy terminate or suspend this Contact, without penalty, if the Department deteramines that an unanticipated emergency situation raises,ehrouzh no fault of the Department,which by law mandates immediate Department action to protect state or federal funds,property Or pentons,or to remedy damages which have already occurred.Such termination or suspension shall be effective upon the Contractor's receipt of written notice of either suspension or tersination. (d) Elimisatipn or Reduction of F,ndine. In the event of an elimination or reduedon of funding, for any reason, and through no fault of the Department,the Deparmmentmay terminate or suspend this Cont-act, without penalty,by providing the Contractor with prior written notice of teradrution orsuspension. Unless a different notice period is specified by the parties in ATTACFLMENTA of this Contact,such prior written notice to the Contractorehall be made at least fourteen (14) calendar days before to the eifeczive date of termination or suspension. (e) Force Narivre. Neither the Detm parent nor toe Contractor shall be liable to the other nor be deemed to be in breach of this Contract for failure or delay in rendering performance arising our of causes fa=aiiv beyond their control and without their fault or negligence.Such causes may include,but are not limited to: Acts of Gad or the public enemy,wan,fires, floods, epidemics,quarantine testriaioru,strikes,unfoseen freight embargoes or unusually severe weather.Dates or times of performance shall be extended to the extent of delays excused by this section,provided that the party whose performance is affected notifies the other promptly of the existence and nar_n of such delay.Unit"otherwise provided by law, or unless otherwise specified by the parties in AITACMMENTA of this Contract,the performance dates of this Contract ars of the essence and important to the implementation of essential Department work,and continued failure by the Contractor to perform for an a_endedperiad, even for causes beyond the control of the Contractor,shall afford the Departmentthe right to immedutely teratinste this Concoct upon the Contractors receipt of wrcten notice of termination. Unless a different period is specified by the parties in ATTACH74LNP A of this Contra=, an erornaled Period shall be any period aggregating thirty(30) or more calendar days. 6. 09LICA770V N EDT.\T OF-RNIVA770 N OR SUSPENSION.The notice of ter enation or suspension from the Departnment shall state the circumstances of the termination or suspension, identify any alleged breach,a reasonable period to cue any alleged breath,if applicable, and any instructions or restrictions concerning any allowable activities or Coss during this notice period. U the Contracor is not in default or breach of the terms of this Contract, the Department shall promptly pay the Contactor for all services provided up until the date of termaation or suspension,provided the Contractor submits invoices for payment, with any required supporting documentation,pursuant to the provisions of Section 4.above,and makes every reasonable effort to minimize any such costs incurred. 7. NOTICE.Any written notice shall be deemed delivered and received when given in person or mailed to the signatory of this Contract, or other individual identified in ATTACMME:vT A of this Contract, or when delivered by any other appropriate method evidencing actual receipt by the addressee. S. RECORDASEPNG.P.ROMLi ts,f477C AND F 5C4L REPORTS.NSPECITO.N OF.RECORDS AND AUDTIS.The Contractor shall maintain books,records and other compilations of dam,in such detail as shall properly substantiate claims for pay:nentunderths Contract. The Contractor shall comply with anyprogrammatie or fiscal reporting requirements identified in ATTAC 113 E7`TA of this Contract,including format,contents,detail and submission requirements. The Contractor's failure to timely submit required reports may be considered a material breach of this Contract and may subject the Contractor to delayed or reduced payments without penalty to the Department. All such records and reports shall be kept for a minimum period of seven(7)years or until the resolution of say litigation, claim,negotiation,audit or other aeon involving the records which arises at any z--.e during the retention period, whish shall begin on the first day after final payment under this Contract.pursuant to Executive Order 195,or as amended,the Department,the Governor,the Secretary for Administration and Finance,the State Auditor, or their duly authorized designees, shall have access,at reasonable times and upon reasonable notice, to the books,records,reports and other compilations of data of the Contractor which pertain to the provision of goods andserrims and other requirements of this Contract Such acrosashall include oo ita audits,review and photocopying of such records,reports or ether dam,at a reasonable expense.The Department shall make a good faith effort to coordinate multiple requests by the aforementioned agencies to reduce any hardship or undue burden an the Contractor. 9.SUBCO,\TRACTWG BY CO.%TRACTOR. The Contractor may use subcontractors in the performance of this Contract ONLY upon the prior written approval of the Department.Such prior written approval may be included to ATTACMvMW A of this Contract. A subcontract shall not relieve or discharge the Contractor from any obligation,responsibility or liability under this Contract. All subcontract shall be in writing and contain provisions which are functionally identical to, consistent with, and subject to the provisions of this Contract. Unless otherwise provided by law,the Commonwealth shall not be obligated or bound by any provisions contained in a subcontract to which it is not a party. Upon written mouser by the Department,the Contactor shall provide a copy of any subcontract which is horded by this Contact. The Contractor agrees to take affirmative stem to utilize certified small businesses, certified minority and womere-awned businesses,and businesses or Erns owned or controlled by socially or economicallydisadvantaged individual or individual with disabilities,as sources of supplite and subcontvcted services. Any additional subcontracting provisions shall be spmfied in ATTACILMENI A of this Contract. 10.ASSIGNMENT BY CONTRACTOR.The Contractor mavnot assign or delegate,in whole or in part,Or otherwisetransfer any liability,responsibility,obligation, duty or interest under this Contact,provided however,that the Department may approve the assignment of patent and prospective daima for money due and owing to the Contactor pursuant to this Contract to a bank, cruet company or other financal institution insured by the Federal Depwit Insurance Corporation(ERIC). Absent such approval by the Deoarznent, or other judicial mandate or legislative requirement, the Department shall have no legal obligation to transfer any paymentsto the Contractor's asoit met. Any authorized complete or partial assignment of the Contractor's interest in this Contract shall require the assignee to supply such information as the Department deems necessary to comply with the Commonwealth-rules and regulations governing contras for services,and shall be expressly made subject to all defenses,set-offs, or counter-c!amms which would have been available to the Commonwealth against the Contractor without such assignment. 11.FORUMAND CHOICE OF LAW. Any actions arising out of this Contract shall be governed by the laws of the Commonwealth of Massachusetts,and shall be brought and maintained in a state or federal tour: within the Commonwealth which shall have exclusive jurisdiction thereof. 12..NON.DISCRLMNAT70N AND.tFFIR,NATIVE A CTIO.N.The Contractor agrees to comply with all applicable Federal and State statutes,rules and regulations prohibiting discrimination in emoievment,including but not limited to,the Americans with Disabilities Act 42 USC 12101,23 CFR pan 3g,or as amended;29 USC §791«req.;Faecutive Orden 227,237,246;M.G.L.c.151B;and M.G.L.c272,§92A,§9$etxq.,or any amencimentato these provisions.Pursuant to Executive Orden and 246,the Contractor is required to take affi-native actions designed to eliminate the patters and practices of discrimination including providing written notice of its commitment to nondiscrimination to env labor association with which it has as employment agreement,and to certified minority and women-owned businesses,and organizations or businesses awned by individuals with disabilities. The Commonwealth shall not be liable for any costa associated with the Contactor's defense of claims of discrimination. Anv additional nondleimination or affirmative action provisions shall be specified in ATTACIEWENTA. 13.POLITICiL ACf7Vl7Y PROHIBITED AND A..NT7-BOYCOTT WARRANTY. The Contractor may not use any Contract funds and none of the services to be provided by the Contractor maybe used for any partisan political activity or to further the election or defeat of any candidate for public office. Pursuantto Executive Order 130,or as amended,neither the Contractor nor any affiliated company of the Contractor shall participate in or cooperate with any international boycott,as defined in Section 999 (b) (3) and (4) of the Internal Revenue Code of 1954, or as amended;nor shall either engage in conduct declared to be unlawful by Nf.G.L.c.151E,§2. As used herein,an affiliated company shall be any business entire of which at least SI%of the ownership interests are directly or indirectly owned by the Contractor or by a person or persons,or a business entity or entities which directly or indirectly owns at least 510/6 of the ownership interest of the Contractor or any business entity which directly or indirectly owns 51%ownership interest in the Contractor. 14.INTELLECTUAL PROPERTY RIGHTS. PUBLICITY,PUBLICATION, REPRODUC 70M AND USE OF CONTRACT MATERIALS. (a)DelfoerabW. Upon the termination of this Contract, the Originals of all finished and unfinished,documents,data,studies,reports,manuals,materials or other 'delioeretb es', identified in ATTACcL M T A of Otis Contract,prepared Or delivered by the Contractor pursuant to this Contract, or paid for with Contract funds, ICIR Form CSC-LF7 pane 2.o/1 r tCOMMONWEA.LTH OF MASSACHUSETTS - STANDARD CONTRACT - LONG FORM shell become the property of the Department,and the Commonwealth shall have title and awn the copyright in such'delioerables'. 'Deliverables'shall alp include equipment or furnishings provided by the Department or purchased with Contract funds.The Contractor shall have a royalty-Gee nonreclusive and imvamble License to reproduce,publish or otherwise use and to authorize others to use thew 'delioemblea'whether published or=published,unless such use is restricted in ATTACMWC4TA of this Contract.If the Commonwealth provides financial assistance or support for jointly funded or jointly sponsored initiatives,programs, research or other Contractor operations,the Department may require the Contractor to use reasonable memo to inform the public that the Department provides, financial support for these activities.The Contractor shall not make any application for patent or copyright of any'deliaerables'without the prior written consent of the Department.Unless other procedures are specified by the parties in ATTACIZIENTA of this Contact,the Contactor shall submit all deliverable,and rent, all Department or Commonweakh-owned data,material,and documents to the Department within seven M calendar days of receipt of the Department's wn m request or upon termination of this Contract. Unless otherwise specified by the partes in ATTACFL%fEM A of this Contract, the Contractor shall not make any press statements or issue any material for publication, derived from the deliverables under this Contract without the prior written approval of the Department (b)Non-d,fivembfes. The originals of finished and uafirished,documents,data,studies,reports,manuals,material or programs provided by the Contractor which ate nor copyrightable by the Department or which am aiready oratwd or copyrighted by the Contactor shall be specifically identified as own-dcUirera ries' in ATTACILNITNTA.The Commonwealth shall have a rovalry•tee non-exclusive and imvocable license to coproduce,publish or otherwise use and to authorize others to use any non-delicerabls identified in ATTA(MIMENT A of this Contract, unless specific resttictiom on such use are specified m ATTACMMENT A. 15.CONFTDEaTLAL=.The following provisions shall apply only in the event the Contractor acquires or has access to 'yertaut data' of the Department,or an behalf of the Department, and becomes a 'holder' of personal data as defined by M.G.L. C. 66A.The Contractor shall at all times recognize the Department's ownership of Department personal dam and the exclusive right and jurisdiction of the Commonwealth and'data subjects'(st defined in Chapter 66A)to control the use of personal data.The Contactor shall immediately notify the Department both orally and in writing if any Department personal data in the Contractor's possession is subpoenaed,improperly used,copied or removed by anyone except an authorized representative of the Department. The Contractor shall enjoin or prevent the misuse,regain possession,and otherwise protect the Commonwealth's right,in its personal data and ensure the dam subject's privacy. The Department shall have full access to any of its personal data held by the Contactor without the consentof the data subject. The Contactor shall take reasonable steps to prevent any unauthorized access,or physical damage,to such data under its control. The Contactor shall use the Departunt's personal dam,and material derived from such dam,only as necessary for the performance of this Contract.The Department's personal data shall be delivered to the Department within fourteen(li)calendar days after termination of this Contract, unless other procedures aro specified by the parties in ATTACMNfENT A of this Contract. 16.INDENMFICATION. Unless otherwise exempted by law,the Contractor shall indemnify and hold haradese the Commonwealth,including the Department, its agents,officers and employees against any and all liability and damages the Commonwealth may sustain or in=in connection with the performance of this Contact by reason of acts,inactions,omissions,negligence or reckless or intentional conduct of the Contactor,its agents),officers,employees or subcontractors; provided that the Contactor is notified by the Commonwealth of any claim within a reasonable time after the Cammonwealth becomes aware of it, and the Contractor is afforded an opportunity to participate in the defense of such claim and any negotiated settlement agreement or final judgment. Indemnification by or for an'lrtdieidtral' Contractor paid order the 'Contractor Payroll System'shall be determined in accordance with the provisions of M.G.L.C.258. 1'.WAIVM5.Forbearance or indulgence in any fort or manner by a party shall not be construed ae a waiver,not in any way limit the legal or equitable recordist available to that party.No waiver by either parry of any default or breach shall comtitute a waiver of any subsequent default or breach. 18.,LWEVD.WENTS. No amendment to this Contract shall be effective unless it is executed by authorized representatives of both parties in accordance with all applicable laws,regulations and procedures and filed with the original Contact at the Office of the Comptroller.Any amendmencby the parties which delt,s or replaces any printed boilerplate language of this Contract shall be considered void es a mater of Commonwealth policy and may result in the rejection of this Contact by the Office of the Comptroller. Any authorized alternative provisions or additional tomato and conditiorms to this Contact that the patties are directed to specify in ATIACMMEN TA shall not delete or replace any bailerpiats language,butsball clearly and specifically establish the ondenmadin&latent,obligations, responsibilities and expectations of the parties under this Contract. 19.5EVERABILTIY,HEADINGS AND INTERPRETATION =GP 4TION.If any provision of this Contract is found to be illegal,unenfmveable or void,then both patties shall be relieved of all obligations under that provision,provided however,that the remainder of the Concoct shall be enforced to the fullest extent permitted by law.The headings used herein are for reference and convenience only and shall not be a factor in the interprpmtion of this Contact. The parties understand and agree that this Contract,including ATFACFLYfENT A,ATTAC M'Drr B,and any additional attachments referenced in this Contract shall supersede all other verbal negotiations and written agreements relating to the performance of this Contract,including contracts provided by the Contactor. 10.=CUTIO:V LVD CERTIFICATIONS. IN WITNESS WHEREOF,the Department and the Contractor certify that this Contract L executed by their respective authorized signatories, as of the last date set forth below, and the CO`'TRACTOR CERTIFIES,UNDER THE PAINS AND PENALTIES OF PERJURY,THAT IT S IN COWLIA.NCE WITH EACH OF THE FOLLOWING: (Complete All Blanks Indicated by an arrow('—') or Contract Will Be Rejected. Attach additional sheets if necessary.) (at OualiPrarions and Tazes.The Contactor represents that it is qualified to perform the services required under thin Contract and possesses or shall obtain all requisite licenses and permits.Pursuant to M.G.L. c.62C,§49A,the Contactor has complied with all laws of the Commonwealth relating to taxes. (b)Emvtovtnent Security Contnbmions and Compulsory Workers'Cornwrisaton Innnance.(Emplaym Only)Pursuant to M.G.LcASL%,§19A and M.G.Le.152, the Contactor certifies compliance with all laws of the Commonwealth relating to payment,to the Employment Security System and all Commonwealth laws relating to required workers'compensation insurance policies. -0(c)Additiowl Income Disclostrte.N.GL c29,WA Cuntracm only. Object Cade,'CC', 'HH', 1171, 'NN)The Contactor certifies that the following amount, represent all income due,or to become due,to the Contactor,for services rendered to the Commonwealth,any political subdivision or pubiie authority,during the period of this Contract. (Complete information below or Check �/'here if _none, _not applicable) _ PUBLIC ENTITY - PURPOSE INCOME DL'EICONTRACT AMOUNC CITY OF SALEM T6 pur.chdse 700 linear feet of roadway $268,559 into a vacant parcel of industrial land on Swampscott Road. Using entitlement CDBG funds the City will construct an additional 800 linear feet of roadway on the same site, completing the access way for the Swampscott Road Industrial Park. _IR Form 935C.LFI page 3.of M COMMONWEALTH OF MASSACHUSETTS - STANDARD CONTRACT - LONG FORM —)'(d) ouct.,vre of Pmmu with Financia!fntem,t. 4N.G.L c.19,§29A Ca,rtractt only Object Cad"'CV, 'RH, 'I7', 'NN7 Funaantto the provisionsof M.G.L. c.29,§29A and c.7A,§6.,the following is a list of names of all persons having a financial interest in this Contrat,including persons with mon than ane percent (n1a)interest in the capital stock of the Contractor. (Complete information below or Check %"here it_ none; _not applicable) NA.INfES ADDRESSES Anthony A. Klein, President Thermal Circuits, Inc. 4 Jefferson Ave. Salem, MA 01970 Howard Fafard, Fafard Real Estate and Development Corp. 190 Eliot St. Ashland, MA 01721 (e)Proovion of Child cam.(Effective for all Contract,awarded on or after 7/1/92.)The Contractor certifies that,at the time of execution,it is in compliance with the provisions of the Aces of 1990,c.3I1,§7 as amended by the Acts of 1991,c.329 and 102 CMR 12.00,and that the Contractor is either a-qualified employer' (t has fifty(50)or mom full time employees and has established a dependent cue assistance program,child care tuition assistance,or on+its or nsar+ita child can placements)or the Contractor is m'exempt employer'. (fl Certificate,and Revorb.The Contractor certifies that pursuant to M.G.L.c.136B,5109(business mepo etions), e.180,§26A facn-prafit corporations),e.131, p(foreign corporations)and c.12,§eF(public charitint,it has filed all certificates and reports with the Secretary of State and the Attorney General's Office. (g)Debamsnt.The Contractor is not currently debarred or suspended by the Commonwealth of Massachusetts,or any of its endtiss or subdivisions,under aay Cammanwealth law or regulation,including but not limited to Executive Order 147,M.C.L.e19,§29F and M.G.L. "I,§25C,Or by the federal government. —O(h) Kev Personnel. ((M.C.L. c.19,VYA Contracts only. Obfeet Codes 'CC', 'BH', -)7-, -NN-)) The Contractor certifies that any named key personnel an the Contractors employees and shall be required unless that individual becomes=available for performance under this Contra for neons of We individual's death, disability, incapacity, relocation, retirement,resignation or termination of the underlying employment relationship.The Contractor shall notify the Department immediately in the event of the unavailability of my key penorumL The procedures fornplacing or mmoving key personnel of the Contractor shall be specified in ATTACMME 4 T A of this Contract.THE CON72ZACTOR SHAM ATTACH A RE5fI11IE FOR ALL KEY PERSONNEL L94DFR THIS CON72ZAL7. G) Executive Order 336. For Privatization Contracts, the Contractor certifies that during the period of this Contract it shall not him my Department ora management employee who has been involved in the preparation of the RFP,negotiations leading to the decision to award this Contract,or shall be involved in the supervision or oversight of the performance of this Contra Connartar Sirnatom Author-anom (Check a/'one option only, and Complete Certification at bottom of page if required as follows): Individual Public Authority CH.G.L c19,53) _ Private Non State University(State Universities must follow 815 CMR 6.00 and uss an ISN Municipality,County, City,Town,District, Commission or other Local Governmental Entity _ Massachusetts Corporation(Domestic)' _ Non-Mau Corporation(Fonigal• _ Non-U.S.Corporation(Alien) _ Not-For-Profit Corporation _ Partnership _ Trust•• _ Other. • Qf Contract exceeds 510,000.00 Complete Certification below with Corporate Seal by Clerk or attach Board of Director's VOt4) * (If Contract exceeds S10,000.00 Complete Certification below with notarized authorized signature.) Executive Office of —*CONTRACTOR: City of Salem DEPAFCTNE . Communities and Developm e n t (prier of typal a ignatnrsl (signature) .. 'MARY GREENDALE —>SICNATORY: W.41 T H^rringfrin SIGNATORY' (print or type name if different from Contractor above) .(print or type°am') ADMINISTRATOR (print or type) - (print or type) -0 DATE: 9S� II � "S � DATE: —I, CORPORATTON•,P.1RTNERSHM",or MUST CER77RCAITON"a,��� I f Gi F- ��,ss Clerk of the aforementioned Corporation, or as a Notary Public, hereby attest to the fact that the aforementioned signatory of the Cun?actor is authorized to execute contracts m that obligatio sin this signato s name e411 be bin�ig and valid on this Contractor,as witnessed to under the pains and penalties of pe:;:Uy this contracts=4 day of (9 V Q 7Y1 �7-P h 19 Cli 1. X Signature of Corporate Clerk or Notary Public Clark or Notary Seal pigs t of 12.._ IC7)t Fo 9350-IFI COMMONWEALTH OF MASSACHUSETTS-STANDARD CONTRACT-LANG FORM ATTACHMENT A-SCOPE OF SERVICES AND ADDTTIONALTERMS AND CONDITIONS INMU MONS: In order to ensure that the Deparhnent and the Contractor have a clear understanding of their respective responsibilities and performance expectations ender this Contract,the following ATTACHMENT shall con a specific acrd detailed description of ALL the obligations and responsibilities of the parties. Attach additional pages if necessary.Sections referenced in brackets'11'refer to specific Sections in the Contract boilerplate. ALL SECTIONS OF THIS ATTACM ENT MUST BE COMPLETED OR THE CONTRACT WILL BE REJECTED. SCOPE OF SERVICES.RESPONSIBH=S OF PARTIES,PERFORMANCEAf A- 1REME .[Sactim 31 The following outlines the obligations due, goods to be delivered,services or be performed,programs or'defioerabfes' to be provided to or on behalf of the Department;the duties and responsibilities of the parties;performance objectives,goals or requirements;performance measurements that the Department will use to measure compliance and to monitor satisfactory performance;any applicable performance dates,deadlines,schedule of delivery, date.: (C.hecckk V'one option only, and complete): V as outlined in ATTACW%M'NT A (specify letter or number) outlined as follows: I [CTR Form 93SC-LR page i.of ' I COMMONWEALTH OF MASSACHUSfiFIS-STANDARD CONTRACT-LONG Form ATTACi N(ENT A-SCOPE OF SERVICES AND ADDIlIONALTERMS AND CONDMONS ADDMONAL FEDERAL REOUMEME VIS.[Section 1.(c)] (Check V'one option only, and complete if appGcabk). _ Not applicable,this Comma is not funded with federal funds,or no additional federal requirements apaly to this Contract. The Contactor shall comply with the following additional federal requirements,statutes,or regulations:(Check V'one option only,and complete): as outlined in ATTACHMENT_(specify letter or numbed - outlined as follows: '- TRAVEL AND RELATED REAfBIIRSEMENIS.[Section 3.1 (Check '/'one option only, and complete if applicable): JL/Not applicable,the Contactor SMALL NOT be reimbursed for travel expenses or meals under this Contact The Contactor SHALL be reimbursed for approved travel expenses or meals as follows:(Check^/'ow:option only,and complete): _at the same rates as Commonwealth employees. as outlined in ATTACHMENT.(specify letter or numbed - _outlined as follows:(specify rates,approval process,authorized travel) Variations acro individual budget line-iteats which DO NOT alter the BUDGET LINE-IIEMVARIATTONS.(Section 3.1 ng ge nudmnm obligation of the Contract: (Check W'one option only, and complete if applicable): No applicable to this Contract. I' Z11SHALL NOT be permitted without the prior written approval of the Department _ SHALL be permitted without the prior written approval of the Depanatent,with the following restrictions:(Check '/'rete option only,and complete if applicable:) .. the variation in line-item expenditures may not result in a fifty percent(50%)increase or reduction in.any budget lineitem amount. Variations which result in an increase or reduction of mom than 50%percent of any budget line-ilsnt amount shill be considered a material change to the Contract and shall require the prior written approval of the Department _ the variation in line•item expenditures may not exceed un percent 130%)of the maximum obligation of the Contact Variation which exceed 10%of the maximum obligation of the Contact shall be eonidered a material change to the Contract and shall require fie prior written approval of the Deparmtent. - _ the Contractor provides at least fourteen(li)calendar days notice to the Department prior to the effective date of the intended variation in budget line-item and the variation does not result in an increase in any prior approved unit ate,hourly rate,price increase or an increase in the maximum obligation of the Contract. _ as outlined in ATTACHMENT�(specify least or number) outlined as follows: COMMONWEALTH OF MASSACHUSETTS-STANDARD CONTRACT-LONG FORM ATTACHM04 T A-SCOFE OF SERVICES AND ADDITIONAL TERMS AND CONDITIONS PAYMHNI'MECHANISM[Set'tion 4.1 Con adorPa ll S stern.[Section 4.(a)l (Check "I'one option only, and complete if applicable): _ Not applicable to this Contract,the Contractor is paid through the 'Payment Voucher System'. The contractor's Department supervisor,timesheet submission procedures,and any additional personnel procedures or provisions are outlined: in ATTACHMENT_(specify letter or number) ae follows: Payment Voycher System.[Section 4.(b)] (Check'/'one option only,and complete if applicable): - lZNot applicable to this Contract,the Contractor L paid through the 'Contractor Payroll System'. a description of any required supporting documentation,the format,detail,contents,for invoices and supporting doeamentation,submission procedures for invoices including Department individual(s) and address(es)to receive invoices,and any additional payment procedures or provisions ace outlined: - - - ATTACHMENT (specify letter or number) as follows: - - NOTICE OFT£RMMWATTONOR SMPENSIONPERIODS. [Section 5.1 (Check V*one option only, and complete if applicable): Not applicable,no changes to the notice periods have been negotiated by the parties. - - -' The following notice periods have been negotiated by the parties: as outlined in ATTACHNIENT_(specify letter or nuatber) - as outlined as follows: - - - Clft Farm 935C-U7 Page 7.of L' COMMONWEALTH OF MASSACHI)SEITS-STANDARD CONTRACT-LONG FORM ATTACHMENT A-SCOPE OF SERVICES AND ADDITIONAL TERMS AND CONDITIONS N077CF.[Section 7.1 Additional individuals to receive notice if different from signatories,include addresses:dedicate-NIA- if not applicable) To The Department To the Contractor. CONTRACTOR FISCAL AND PROGRAMMATTCREPOR7S [Section 8.1 (Checkone option only,and complete if applicable) Nat applicable,additional reports SHALL NOT be required under this Contract The Contractor SHALL provide detailed fiscal and programmatic reports on the services,$code or progium s provided,and the expenditures made under this Contract.Time schedules for submission of reports(monthly,quarterly,annually)format,-detail and contents requirements of reports, Department individual and address where reports are to be sent,individuals to receive any additional copies of reports,and any additional procedures or reporting requirements: Z.outlined in ATTACfMENT g(specify letter or number) outlined as follows: SUBCON72ZAC77NG BY 1HE CONTRACTOR.[Section 9.1 (Check V'one option only,and complete if applicable:) Not applicable,the Contractor may NOT use subcontractor,in the performance of this Contract. •Contractor may use subcontractors in o performance of this Contract ONLYupon the prior unit w azahoriranDepartment. us of the Deparent. 11e tContractor SHALL be authorized to use subcontractors in to performance of this Contract Additional subcontracting provisions or restrictions are outlined: (Check -/'ane option only,and complete Ef applicable): _ Not applicable,there an no additional subcontracting provisions in addition to Section 9.of this Contract in ATTACIUvfENT_(specify letter or munber) as follows: (specify) - h JCTR Fome 939GLF7 _ pare S.of rZ COMMONWEALTH OF MASSACHUSETTS-STANDARD CONTRACT-LONG FORM ATTACHMENT A-SCOPE OF SERVICES AND ADDITIONAL TERMS AND CONDITIONS NOIWDI5CRA7M477ONANDAFFIRMATIVEAClIONPLAN. (Section12.1 (a) Pursuant to Executive Orden 227,237 and 246,my Contract with a maximum obligation of fifty thousand(S50,000)dollen or mon requires the Contractor to file an Affirmative Action Plan outlining the Contractor's commitment to ensure nondiscrimination in employment and purchasing, and commitments to purchasing supplies,equipment or services from certified minority or women- wnsd businesses,or busirnseee owned by persons with disabilities. (Check V'one option only, and complete if applicable:) _ Not applicable,this Contract has a total maximum obligation of less than$50,000.00 dollars. The Contractor has attached a copy of the Contractor's Affirmative Action Plan to this Contract the Contractor has filed an approved copy of the Contnctoes Affirmative Action Plan with the Department. The Contractor certifies that a copy of the Contractor's Affirmative Action Plan is on file and available for review upon written request by the Department. - (b) Any additional nondiscrimination or affirmative aeon provisions or prohibitions are outlined:(fleck ti'one option only,and complete if applicable:) . Yat applicable,no additional provisions or prohibitions are required in addition to Section 12.of thin Contract. in ATTAcHrA NI' A (specify letter or number as follows: CONFIDENTIALITY.!Section 15.1 (Check one option only, and complete if applicable:) Not applicable to this Contract.the Contactor in performance of this Contract will NOT acquire at hrve access to'penmral data'of the Department and therefore will NOT be a'holder'of personal data of the Department as defined by M G.L.c.66A. _ the Contactor SHALL be a*holder' of the Department's personal data as defined in M.G.L.c.66A. Any additional provisions for physical security,use or the return of my personal data of the Department or additional confidentiality requirements an: _ Not applicable,no provisions are required in addition to Section 15.of this Contract. �udined in ATTAC:LMENT_(specify letter or number) utiined as follows: The Contractor shall comply with all the requirements of M.G.L. c.66A for a "holder" of personal data. KEY PF.R.SONNEL (Seaton 20.001 06LG.L.c23,¢9A Commada only. Object Codes'CC', 'HH','IT','NN'). the Contractor is required to attach a resume for the Contractor if an Individual, or for all key personnel of the Contractor who will be assigned to the performance of this Contract. The following procedures shall be followed for replacing or removing key personnel of the Contractor. (Check V. one option only, and complete if applicable)• 1Not applicable to this Contract, either because the Department is exempt&am M.G.L.c29,§29A,this is not a'CC','EDi','JJ','MJ' object code, or there an no key personnel assigned by the Contactor under this Contact. _ Not applicable,Contractor is an Individual,and the Contract will terminate if Contractor becomes unavailable. - _ The Contractor shall have full discretion in replacing or removing any key peramutel under this ContracL The Contractor may replace or remove key personnel ONLY upon prior written notification to the Department. . Since the key personnel an a material element of the Contract,the Contractor shall replace or remove key personnel ONLY upon the prior written approval of the Department as outlined in ATTACHMENT (specify letter or number) outlined as follows: =R Farm 93SG411 page 9.of 1 -- COMMONWEALTH OF MASSACHUSETTS-STANDARD CONTRACT-LONG FORM ATTACHMENT A-SCOPE OF SERVICES AND ADDITIONAL TERMS AND CONDITIONS I7IRFZIECTUALPROPER7YRIGH75,PUBLICITY.PUBLICATION.REPRODUCTTONAND USE OFMAT£RIAL (Section 14.) W Deffverablts.The following is a list or description of the original documents,data,studies,reports,manuals,materials or other'defimables',that will be prepared or delivered by the Contractor pursuant to this Contract,or paid for with Contra funds,and which SMALL become the property of the Department and which the Commonwealth shall have title and own the copyright,including equipment or furnishings provided by the Department or purchased with Contract funds: (Check ti/'one option only,and complete if applicable, include any additional provisions or restrictions): - V Not applicable,there are NO 'deliverables'that will be owned by the Department at the termination of this Contract,or performance will be completed with'nosdelivtrables' as outlined below which are not copyrightabla by the Department,or are already owned or copyrighted by the Contractor. as outlined in AT17ACEU. l'�(specify letter or numbed outlined as follows: (b) Non-deliverables.The following is a list or description of the original documents,data,studies,reports,manuals,materials or programs that will be provided by the Contractor which am NOT copyrightable by the Department or which are already oruned or copyrighted by the Contractor and shall be provided or wed in the performance of this Contract: (Check U'one option only, and complete if applicable, include any additional provisions or restrictions): /flat applicable,there will NOT be any'non-deliverables' provided or used in the performance of this ContracL outlined in ATTACHh=AT (spedfy letter or number) - outlined as follows: (d Before the Contractor,any of its officers,agents,employees or subcontractors,either during or after tsmtihation of the Contract,makes any statement to the press or issues any material for publication,derived from the deliverables received under this Contract, the Contractor shall:(Check V'one option only, and complete if applicable) - - t applicable,the Contractor certifies that no such press statements or publications shall be made. bahin the prior written approval of the Department. provide the Department with at least seven(f)calendar days prior written or facsimile notification. _follow procedures outlined in ATI-ACELMLNT_(specify letter or number) _follow procedures outlined as follows:(specify) ICIR Form 93SC LR page Io.of 72 COMMONWEALTH OF MASSACHUSFI S-STANDARD CONTRACT-LONG FOAM ATTACE1IOEN T A-SCOPE OF SERVICES AND ADDITIONAL TERMS AND CONDITIONS INSURANCE. The Contactor shall be required to obtain the following additional insurance or bonds)to cover the performance of services under this Contact Thew amounts will be in addition to any statutorily required amounts a other reasonable amounts of liability iruosance already carred by the Contac/tor. (Check'V' one option only, and complete if applicable): Y Not applicable,the Contactor shall NOT be required to provide any additional insurance or bonds for the perfonnanc,of wrvias ander this ._... _ Contract. as outlined in ATTACFI.%=_.(specify letter or number) outlined as follows.(specify type of insurance or bond(s)required,specifications,liability amounts,restrictions and proof of fulfillment requirements) _ ...._ .. ADDMOM4L7MW AND CONDTITONS[Section 18.1 (Check V'one option only, and complete if applicable): Nat applicable,no additional provisions or prohibitions are required in addition to those already outlined herein. _ additional provisions are oultined in ATTACHb1ENT_A (specify letter or number) _ _ additional provisions are outlined as follows: I LLS772VG OFA7TACHMENIS.[Section 19.1 The following is a complete listing of all attachments: (a) ATTACMMENT A-SCOPE OF SERVICES AND ADDITIONAL TERMS AND CONDITIONS - ATTACMWENI B-BUDGEr AND APPROVED EXYENDI TURES ATTACHPA= ATTACM%IENT . .- . (b) Check'V* here if a Request For Proposals(RFP) is referenced or attached to this Contract-YES NO (CTR Form 93SC•LJ7 page 11.of L' COMMONWEALTH OF MASSACHUSETTS STANDARD CONTRACT-LONG FORM ATTACHMENT B -BUDGET AND APPROVED EXPENDITURES n he Department and the Contractor may complete this format or attach an approved alburnative Budget format or invoice.l Items Identified below which are not part of Contract should be left blanc- - Attach as many additional copies of this format as necessary,Maximum obligation should appear as last entry. CONTRACT EXPENDTIVRES uNrT RATB NUMB ER OF UNITS OTHER FEES OR TOTAL (per axilt,hoar,dad CHARGES fsp.dfy) s " SEE STT CHED BUDGET " s EXHIBIT D s $ . s s Fees(specify) - S Photocopies f 0 copy 9 of Unite S Equipment rental or supplies(specify) MaterialslsuppHas(specify) S Mileage f ®mile 9 of Mile Meals 5 ®meal 9 of Meals - ' - s ' s S1187riIAL ","Page) $ MAXIMUM OBLIGATION Page_of Budget page& ATTACMIENT 3 I SUBJECT TO ANY RES-MCTfONS OR ADD177ONAL PROVISIONS OUTLINED IN ATTAaZRIENI'A ICTR Form 93sc-Ln - page 3L of 72 I MMARS ENCUMBRANCE ID# : ATTACHMENT A-SCOPE OF SERVICE AND ADDITIONAL TERMS AND CONDITIONS THE COMMONWEALTH OF MASSACHUSETTS EXECUTIVE OFFICE OF COMMUNITIES AND DEVELOPMENT DEPARTMENT OF COMMUNITY AFFAIRS GENERAL TERMS AND CONDITIONS BETWEEN THE COMMUNITY DEVELOPMENT ACTION GRANT PROGRAM AND THE CITY OF SALEM This Contract is entered into as of this day of 199 by and between the Executive Office of Communities and Development, Commonwealth of Massachusetts, with its principal place of business at 100 Cambridge Street, Room 1803 , Boston, Massachusetts 02202 (herein referred to as "the Department" ) ; and the City of Salem with its principal place of business at 93 Washington Street, Salem (herein referred to as "the Contractor" ) . WHEREAS, Chapter 789 of the Acts of 1981 has authorized the Department to administer a Community Development Action Grant Program (hereinafter referred to as "CDAG Program" ) to be financed from the proceeds of bonds issued by the Commonwealth; and WHEREAS, the Contractor has submitted an application to the Department for financial assistance through the CDAG Program for a Community Development Project ; and WHEREAS, the Department has made the following findings relative to the Community Development Project set forth in the application submitted by the Contractor: o The project area is decadent, substandard or blighted open as defined by Massachusetts General Laws, Chapter 121B, Section 1 . o The project will be undertaken on property which is publicly owned or managed. o The project will be of public benefit, in the public interest and for a public purpose, consistent with the sound needs of the community as a whole, and any benefit to private entities or individuals will be indirect and incidental and not the purpose of the project. o The project area would not by private enterprise alone and without either government subsidy or the exercise of governmental powers be made available for redevelopment . o The amount of the grant to be provided appears to be the minimum amount necessary to make the project feasible . o The project will have a significant impact on the economic condition of the city or town, including the generation or retention of long term employment . 0 There exist firm commitments of private or other public resources in amounts sufficient, when added to the amount of the proposed grant, to render the project financially sound. o The project will not foster any adverse secondary growth impacts . And, WHEREAS, the Department has approved an award of up to $268, 559 in CDAG funds for the Community Development Project as described in Section II .A. ; NOW THEREFORE, in consideration of the mutual promises hereafter stated, the parties mutually covenant and agree as follows : I. PERIOD OF PERFORMANCE: The period of performance for this Contract shall begin on and shall continue until January 1, 1997, unless this Contract is amended by either party in accordance with the terms of Section IV.B. of this Contract or otherwise suspended or terminated in accordance with the terms of Section V. of this Contract . A Performance Schedule is attached as Exhibit A and is hereby incorporated and made a part of this Contract . All work activities and quarterly reporting shall proceed in accordance with said Exhibit A. II. RESPONSIBILITY OF THE CONTRACTOR: A. Scope : In accordance with the terms and conditions of this Contract, the Contractor agrees to construct 700 linear feet Page 2 of 13 of roadway into vacant industrial land on Swampscott Road for the purpose of establishing an industrial park. The City will construct an additional 800 linear feet of roadway using CDBG funds to complete the roadway. The CDAG portion of the roadway will facilitate the relocation and expansion of Thermal Circuts to the proposed park (hereinafter referred to as "CDAG Project" ) . The terms and conditions herein shall take precedence over any conflicting terms or conditions attached hereto. B . Compliance with other Department Requirements : The Contractor shall comply with the terms and conditions of this Contract and all its attachments, and any Department rules, regulations, guidelines or directives for the CDAG Program as may from time to time be issued or amended. C. Compliance with Applicable Law: All activities authorized by this Contract shall be performed in accordance with all applicable federal, state and local laws, including but not limited to statutes, regulations, ordinances and codes pertaining to public bidding requirements, wage rates, non-discrimination, equal employment, affirmative action and conflict of interest . This Contract shall be construed under and governed by the laws of the Commonwealth of Massachusetts . The Contractor, and the agents thereof, agree to bring any federal or state legal proceedings arising under this Contract, in which either the Commonwealth or the Department is a party, in a court of competent jurisdiction within the Commonwealth of Massachusetts . This paragraph shall not be construed to limit any rights a party may have to intervene in any action, wherever pending, in which the other is a party. D. Non-Discrimination: The Contractor shall not discriminate against any qualified employee or applicant for employment because of race, color, national origin, ancestry, age, sex, religion, or physical or mental handicap . The Contractor agrees to comply with all applicable Federal and State statutes, rules and regulations prohibiting discrimination in employment . The Contractor shall take affirmative action to insure that applicants for employment are employed and that employees are treated during employment, without regard to their race, color, national origin, ancestry, age, sex, religion, or physical or mental handicap . Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor shall post, in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this Section. The Contractor shall state that all qualified applicants will receive consideration for employment without regard to race, Page 3 of 13 color, national origin, ancestry, age, sex, religion, or physical or mental handicap. The Contractor shall incorporate the foregoing requirements of this section in all contracts for work to be performed in accordance with the CDAG Project, and will require all of its contractors for such work to incorporate such requirements in all subcontracts for CDAG Project activities . In the event of Contractor' s noncompliance with the provisions of this section, the Department may impose such sanctions as it deems appropriate, including, but not limited to: 1 . Withholding of payments due the Contractor under this Contract until the Contractor complies . 2 . Termination or suspension of this Contract . E . Minority Business Enterprises : In keeping with the policies and intent of Massachusetts Executive Order 237, the Contractor hereby agrees to contract with Minority Business Enterprises certified by the Massachusetts State Office of Minority and Women Business Assistance (hereinafter referred to as "SOMWBA" ) pursuant to 425 CMR 2 . 03 . At least five percent of the total dollar value of CDAG funds shall be awarded to Minority Business Enterprises pursuant to contracts for construction, goods, or services . Prior to advertising for bids on the CDAG Project, the Contractor shall notify SOMWBA of the Contractor' s intent to solicit bids, and the availability to SOMWBA upon request, of copies of the bid proposals, plans and specifications, .and invitations to bid. F. Conflict of Interest : The Department and the Contractor shall not enter into any arrangement whereby: 1 . Any employee of the Commonwealth .participates in any decision relating to this Contract which affects his/her personal interest; or 2 . The Contractor knowingly employs or compensates any employee of the Commonwealth during the term of this Contract , unless such arrangement or decision is permitted under the provisions of Massachusetts General Laws, Chapter 268A. Employment of former Commonwealth employees must also be in compliance with the provision of M.G.L. c . 268A. G. Prohibition Against Payments of Bonus or Commission: The Contractor covenants that no person or organization has been retained to solicit or secure the CDAG funds covered by this Contract, and that no CDAG funds shall be used in the payment of any bonus or commission for the purpose of obtaining approval or concurrence of the Department in any matter related to the CDAG Project . Page 4 of 13 V H. Environmental Review: In addition to such other requirements or environmental reviews which may be applicable to the CDAG Project, the Contractor assumes responsibility for compliance with any applicable provisions of Massachusetts General Laws, Chapter 30 , Section 61 et seq. , the Massachusetts Environmental Policy Act and the regulations issued pursuant thereto . I . Relocation Assistance : In carrying out the CDAG Project, the Contractor shall comply with any applicable provisions of Massachusetts General Laws, Chapter 79A, and the regulations issued pursuant thereto (760 CMR 27 . 01 et seq. ) . J. Prohibition Against Assessments or Fees : The Contractor shall not charge any person or entity a betterment assessment for the benefit of services or facilities made possible by the CDAG Project . Further, the Contractor shall not charge any person or entity any type of fee which exceeds amounts properly allocable to the payment of ordinary and necessary expenses directly attributable to the operation and maintenance of such portion of the CDAG Project used or to be used by or for the benefit of such person or entity. K. Certifications : 1 . The Contractor certifies by letter from its town counsel/city solicitor that it has obtained, or has reasonable assurance of obtaining all federal, state and local government approvals required by law relative to the CDAG Project . Said letter is attached as Exhibit B and is hereby incorporated and made a part of this Contract . 2 . The Contractor certifies by letter from its town counsel/city solicitor that it has obtained, or has reasonable assurance of obtaining all necessary easements, rights of way, or other title to the CDAG Project site (s) to assure that the CDAG Project is publicly owned, operated or maintained and will be properly operated and maintained during the CDAG Project life . Said letter is attached as Exhibit C and is hereby incorporated and made a part of this Contract . L. Reporting: The Contractor shall submit to the Department Quarterly Reports within ten days of the close of each quarter, as specified in the Performance Schedule set forth in Exhibit A. Such reports shall include, but need not be limited to a statement indicating expenditures and disbursements of CDAG funds during the previous quarter and cumulatively and a statement on the progress and status of activities performed in relation to the Performance Schedule . Page 5 of 13 M. Recordkeeping, Audit , and Inspection of Records : The Contractor shall maintain books, records and other compilations of data pertaining to the performance of the provisions and requirements of the Contract to the extent and in such detail as shall properly substantiate claims for payment under this Contract . All such records shall be kept for a period of six (6) years or for such longer period as is specified herein. All retention periods start on the first day after final payment under this contract . If any litigation, claim, negotiation, audit or other action involving the records is commenced prior to the expiration of the applicable retention period, all records shall be retained until completion of the action and resolution of all issues resulting therefrom, or until the end of the applicable retention period, whichever is later. The Governor, the Secretary of Administration and Finance, the Head of the Department, the Department' s Executive Secretary, and the State Auditor, or their designees, shall have the right at reasonable times and upon reasonable notice to examine and copy, at reasonable expense, the books, records and other compilations of data Contractor to of the Co actor wh'ich pertain to the provisions and requirements of this Contract . The Contractor shall cause to be prepared an independent audit of CDAG. Project expenditures, the cost of which will be charged against the administrative portion of CDAG funds received pursuant to this Contract . Such audit shall be conducted by an independent public accountant in accordance with generally accepted standards of accounting and any additional EOCD requirements . The Chief Executive of the Contractor shall transmit a copy of the completed audit to the Secretary of the Department within 135 days after completion of the CDAG Project . N. Acknowledgement of State Assistance : The Contractor shall erect project signs acknowledging State participation in the financing of the CDAG Project site (s) as soon as possible after execution of this Contract . III. COMPENSATION: A. Payment : The Department shall compensate the Contractor on an incremental basis, as invoices for work performedwon the project are submitted to the Contractor, and after all appropriate financial records supporting each amount requested have been received and approved by the Department . The maximum obligation under this Contract shall be an amount up to $268, 559 . 00 . The Contractor shall submit invoices on a regular basis to the Director - CDAG Program, EOCD, 100 Cambridge Street, Room 1803 , Boston, MA 02202 . The Department shall have fifteen (15) days to Page 6 of 13 review and approve the invoice . If the Department does not approve the invoice it shall return the invoice with a written explanation for the rejection within fifteen (15) days of the date of receipt of the invoice . Payment shall be made within forty-five (45) days of the receipt of a properly submitted invoice, provided that the goods or services have been delivered. Late penalty interest shall be paid in accordance with the Office of the Comptroller Regulation 815 CMR 4 . 00 unless otherwise provided by law. Final invoices must be submitted within fifteen (15) days of delivery of the final good or service or by July 31, whichever is sooner. B . Funding and Fiscal Year Appropriations and Authorizations : Appropriations for expenditures by Departments of the Commonwealth and authorizations to spend for particular purposes are made on a fiscal year basis . The fiscal year of the Commonwealth is the twelve (12) month period ending June 30 of each year. The obligations of the Department under this Contract are subject to the appropriation to the Department of funds sufficient to discharge the Department' s obligation and the authorization to spend such funds for the purposes of this contract . In the absence of such appropriation and authorization, this Contract shall be terminated immediately without liability for damages, penalties or other charges arising from early termination as provided in this Contract . C. The total amount of CDAG funds for the CDAG Project has been determined by the Secretary of the Department in reliance upon the Project Budget submitted by the Contractor, which is attached as Exhibit D and is hereby incorporated and made a part of this Contract . The Secretary of the Department reserves the right to reduce the total amount of CDAG funds for the CDAG Project : 1 . To conform to any revision to which the Contractor and the Secretary may agree, by written addendum, with respect to the CDAG Project; 2 . If the Secretary determines, by written notification to the Contractor, that the actual costs for the CDAG Project are lower than those set forth in the Project Budget; or 3 . If the Secretary determines, by written notification to the Contractor, that the investment of other public or private entities in association with the CDAG Project is less than the amount specified in Section III .B. D. Other Public and/or Private Commitments : The Contractor certifies that it has obtained firm commitments of resources in Page 7 of 13 r association with the CDAG Project from the following public and/or private sources : Source: Amount: Activity: Thermal Circuts $1, 170, 000 Construction of a new facility Fafard Corp. $ 210 , 000 Land Subsidy Fafard Corp. $ 19 , 000 Site Subsidy City of Salem (CDBG) $ 306, 923 Additional build out of the road. Written evidence of such commitment (s) is attached as Exhibit E and is hereby incorporated and made a part of this Contract . Y E. Contractor - Private Sector Participant Contract : The Contractor shall execute separate sub-contracts with the above mentioned private sector participant (s) (see Section III .D. ) and/or its successors, heirs, and assigns as an assurance that the private sector participant (s) will, in fact, undertake the activities identified in Exhibit E . Contractor - Private Sector Participant Contract (s) are attached as Exhibit F and are hereby incorporated and made a part of this Contract . Any significant change in the private activities described in Exhibits E and F may result in the termination or suspension of this Contract in accordance with the provisions of Section V. F. Authorized Uses of CDAG Funds : 1 . The CDAG funds provided to the Contractor under this Contract shall be used solely for the purposes of the approved CDAG Project . 2 . Administrative costs, including the cost of a final independent audit (see Section II .M. ) , shall not exceed five percent of the total CDAG award. 3 . CDAG funds shall not be used to cover costs incurred prior to the execution of this Contract . 4 . The Department reserves the right to recover interest earned by the Contractor on any CRAG funds on deposit prior to vendor payment . Page 8 of 13 IV. GENERAL PROVISIONS A. Assignment and Delegation: The Contractor shall not assign, sub-contract, delegate or otherwise transfer any obligation or interest in this Contract, except as provided in the paragraph below, without the prior written consent of the Department, which shall not be unreasonably withheld or delayed. Present and prospective claims for money due to the Contractor from the Department hereunder may be assigned to a bank, trust company, or other financial institution insured by the Federal Deposit Insurance Corporation (FDIC) without the consent required in the paragraph above, so long as notice of such assignment is promptly furnished to the Department, and in compliance with the Comptroller' s rules . B . Amendments : The Contractor agrees to submit to the Department a written request for approval of any CDAG Project amendment involving changes in the approved Project Budget; new activities; or changes in the scope, location, scale, scheduling or beneficiaries of the approved CDAG Project prior to continuation or commencement of work thereon. No amendment to this Contract shall be effective unless it is signed by authorized representatives of both parties and accepted for filing in the Office of the Comptroller. C. Notice : Unless otherwise specified, any notice hereunder shall be in writing and shall be deemed delivered when given in person to either party or deposited in the U.S . Mail, postage prepaid and addressed as follows : To The Department : Director - Community Development Action Grant Program Executive Office Communities and Development 100 Cambridge Street, Room 1803 Boston, MA 02202 To The Contractor: City of Salem Mayor' s Office 93 Washington Street Salem,MA 01970 D. Assurance of Projected Jobs and/or Affordable Housing Units : In selecting the Contractor as a recipient of CDAG funds, the Secretary of the Department considered certain representations by the Contractor concerning the creation of permanent new job opportunities and/or affordable housing units as a result of the Page 9 of 13 CDAG Project . The Contractor acknowledges its representations and agrees to use its best efforts to create, or cause to be created the numbers of and types of jobs and/or affordable housing units as specified. Those representations are attached as Exhibit G and are hereby incorporated and made a part of this Contract . E . Confidentiality: The Contractor acknowledges that in the performance of this Contract he/she may acquire or have access to "personal data" and become a "holder" of such data, as defined in M.G.L. Chapter 66A, or other information deemed confidential by the Commonwealth. The Contractor shall comply with all laws and regulations relating to confidentiality and privacy, including but not limited to any rules or regulations of the Department . The Contractor further agrees to take reasonable steps to insure the physical security of such data under its control and to inform each of its employees having any involvement with personal data or other confidential information, of the laws and regulations relating to confidentiality. F. Political Activity Prohibited: None of the services to be provided by the Contractor shall be used for any partisan political activity or to further the election or defeat of any candidate for public office . G. Anti-Boycott Warranty: During the term of this Contract, neither the Contractor nor any "affiliated company" as hereafter defined, shall participate in or cooperate with an international boycott, as defined in Section 999 (b) (3) and (4) of the Internal Revenue Code of 1954 , as amended by the Tax Reform Act of 1986, or engage in conduct declared to be unlawful by Section 2 of Chapter 151E, Massachusetts General Laws . As used herein, an "affiliated company" shall be any business entity of which at least S1% of the ownership interests are directly or indirectly owned by the Contractor or by a person or persons or business entity or entities which directly or indirectly own at least 510 of the ownership interests of the Contractor. H. Severability: If any provision of this Contract is declared or found to be illegal, unenforceable, or void, then both parties shall be relieved of all obligations under that provision. The remainder of the Contract shall be enforced to the fullest extent permitted by law. I . Headings and Interpretations : The headings used herein are for reference and convenience only and shall not be a factor in the interpretation of this Contract . J. Waivers : All conditions, covenants, duties and obligations contained in this Contract can be waived only by written agreement . Forbearance of indulgence in any form or manner by a party shall not be construed as a waiver, nor in any way limit Page 10 of 13 the legal or equitable remedies available to that party. V. SUSPENSION AND TERMINATION: A. General : This Contract will terminate on the date specified in Section I, unless renewed as allowed by applicable regulation or policy, or unless terminated upon any of the events or conditions set forth in Sections V.B-E. B. Without Cause : Either party may terminate this Contract by giving written notice to the other party at least twelve (12) calendar days prior to the effective date of termination as stated in the notice . C. For Cause : If the Contractor fails to fulfill his/her obligations, the Department may terminate this Contract by giving written notice to the Contractor at least seven (7) calendar days before the effective date of termination stated in the notice. The notice shall state the circumstance of the alleged breach and may state a reasonable period, not less than seven (7) calendar days, during which the alleged breach may be cured, subject to the approval of the Department . D. Emergencv: The Department may terminate or suspend this Contract by providing written notice to the Contractor stating the grounds for the Department' s action, in the form of telegram, mailgram, hand-carried letter or other appropriate written means, if the Department determines that immediate action is necessary to protect state and/or federal funds or property or to protect persons from injury. Such termination or suspension action shall be effective upon receipt of notice of either suspension or termination by the Contractor. In the case of a suspension under this paragraph, the notice of suspension shall be accompanied by instructions from the Department specifying requisite action (s) by the Contractor to remove the suspension, a proposed timetable for meeting those requirements and a description by the Department of allowable activities and costs, if any, during the suspension period. Failure by the Contractor to remedy the stated deficiencies according to the timetable prescribed by the Department shall be cause for immediate termination. E . Elimination or Reduction of Funding: In the event of a reduction or elimination of funding, the Department may terminate this Contract by providing notice of termination without cause, as provided in Section V.B. or in the alternative, the Department may provide a conditional notice of termination effective not less than forty (40) calendar days after the date of the notice, with a proposed amendment to the Contract . Any such notice shall provide that the Contract will terminate on the effective date specified, unless, prior to the date, the Contractor submits to the Department a properly signed copy of the amendment . Unless the Contractor makes a timely submission of the amendment, or such modified form Page 11 of 13 of amendment as may be agreeable to the Department, the Contract will terminate as specified in the Department' s notice . F. Property: In the event of any termination, all property and finished or unfinished documents, data, studies, and reports purchased or prepared by the Contractor under this Contract shall be disposed of according to the Department . The Contractor shall, within thirty days of any such termination, return to the Department any CDAG funds not expended for the liquidation of outstanding obligations properly incurred as a result of performance pursuant to this Contract up to the date of termination, and shall deliver to the Department a final accounting for all CDAG funds expended during the effective term of this Contract . G. Unallowable Expenses : Amounts paid under this Contract found on the basis of an audit examination to constitute unallowable expenditures shall be reimbursed to the Department by the Contractor . H. Cancellation: This Contract may be canceled by the Department or the Contractor, prior to the completion of the CDAG Project, when both parties agree that continuation is not feasible or would not produce beneficial results commensurate with the further expenditure of CDAG funds . In such case, the parties shall agree upon any termination conditions, including the effective date . The Contractor shall not incur new obligations for the terminated portion of the CDAG Project after the effective date of the termination and shall cancel as many outstanding obligations as possible . The Department shall allow full credit to the Contractor for those obligations which cannot be canceled, so long as they were properly incurred by the Contractor in carrying out the CDAG Project prior to termination. I . Recovery of Funds : The Department reserves the right to review and approve the Private Sector Participant' s performance of the activities cited in Section II .A. above. Should the Department make payment of CDAG funds to the Contractor and should the Department find that the Private Sector Participant ,has failed to use diligent efforts to perform those activities, the Department reserves the right to take any and all 'actions necessary to recover from the Contractor and/or the Private Sector Participant an amount equal to those CDAG funds paid to the Contractor plus all costs associated with such recovery. However, in no event shall the Department' s approval be unreasonably withheld. VI. INCORPORATION: The following documents are hereby incorporated and made an Page 12 of 13 integral part of this document : CDAG Exhibit A - Project Performance Schedule CDAG Exhibit B - Assurance of Obtaining Governmental Approvals CDAG Exhibit C - Certificate as to Title to CDAG Project Site CDAG Exhibit D - CDAG Project Budget CDAG Exhibit E - Financial Commitment documentation CDAG Exhibit F - Contractor - Private Sector Participant Contracts CDAG Exhibit G - Job Creation Potential CDAG Exhibit H - Affidavit of Tax Compliance VII . ENTIRE CONTRACT: This Contract, including all attachments, represents the entire contract between the parties . No changes or additions to this Contract shall be made except in writing and upon the express agreement of the parties . IN WITNESS WHEREOF, the Department and the Contractor have caused this Contract to be executed by their respective authorized officers . The Commonwealth of Massachusetts Contractor BY BY � �Signature) (Si a ure) MARY M. GREENDALE NEIL J, HAVINGTON (Print Name) (Print Name) MA`0R DEPUTY ASSISTANT SECRETARY (Print Title) (Print Title) Date : Date : // /-2 �9s .:k pMMS6AL .CON[M419:051 Page 13 of 13 • CDAG II EXHIBIT A: PROJECT SCHEDULE June 1995 Road construction began August, 1995 Construction of Thermal Circuits' plant begins December, 1995 Binder cost is completed and drainage, sewer and water are installed in the road April, 1996 Thermal Circuits' plant opens May, 1996 Road construction is entirely completed CDAG II EXHIBIT B: ASSURANCE OF OBTAINING GOVERNMENT APPROVALS l Robert A. Ledoux , Attorney at Law, representing the City of Salem, do hereby certiA, that the proposed Community Development Action Grant project has obtained, or has reasonable assurance of obtaining all federal, state, and local governmental approvals required by law relative to the project. Dated this: Fifth day of April 1995. Attorney at Law 49 Federal Sr. Address Salem, ?IA 01970 City and State CDAG II EXHIBIT C: CERTIFICATE AS TO TITLE TO CDAG PROJECT SITE 1, Robert A. Ledoux . Attorney at Law. representing the City of Salem, do hereby certify: 1. That I have investigated and ascertained the location of, and am familiar with, the legal description of the site or sites for all elements of the public component of the proposed Community Development Action Grant project. 2. That I have examined the deed records of the county in which this proposed project is to be located and, in my opinion, the City has or is likely to have a legal and valid fee simple tittle or other estate or interest in the site of the proposed project, including the necessary easements and rights-of-way as are necessary to undisturbed use and possession for the purposes of construction and operation for the estimated life of the proposed project. I That any deeds or documents required to be recorded in order to protect the title of the owner and the interest of the City will be duly recorded or filed for record wherever necessary. 4. Remarks: Dated this: Fif h day of Aril 1995. Attorney at Law 49 Federal St. Address Salem, MA 01970 City and State CDAG EXHIBIT D: SOURCES AND USES OF FUNDS/CDAG PROJECT BUDGET SUMMARY OF PROPOSED EXPENDITURES This chart concerns sources and uses of funds for road construction only. The total cost of developing the land and constructing a new Thermal Circuits facility is not considered here. OTHER LINE ITEM ACTIVITY CDAG PRIVATE PUBLIC TOTAL (700 linear (800 linear feet of road) feet of road) 1. Land Acquisition 2 acres at $130,000 $65,000 per acre 2. Clearance & $ 65,927 $ 75,345 $141,273 Demolition 3. Street & Site $119,878 $137,004 $256,882 Improvements 4. Water & Sewer $51,227 $ 58,545 $109,773 Facilities 5. Construction Costs 6. Professional Fees $ 7,111 $ 8,126 $ 15,238 (3%) 7. Cost Subtotal $244,144 $279,071 $523,165 8. Contingencies (10%) $ 24,414 $ 27,902 $ 52,317 9. Total Project Cost $268,559 130,000* $306,923 $575,482 The cost of land acquisition is noted here for informational purposes only. It should not be considered part of the project budget and is not included in Salem's grant request. CDAG II EXHIBIT E: PRIVATE AND PUBLIC COMMITMENTS PRIVATE INVESTMENTS' AMOUNT: A. Budget for new Thermal Circuits plant $1, 170,000 B. Land subsidy provided by Fafard Corp. $ 210,000 C. Site cost subsidy provided by Fafard Corp. $ 19,000 D. Cost of building remainder of road" $ 306,923 TOTAL $1,705,923 These estimates of private investment include only the development of the new Thermal Circuits plant. We do not estimate the additional private development that will follow the construction of the road and the opening of the five remaining parcels. The CDAG will enable the construction of a road to serve three of the six parcels at the industrial park off of Swampscott Road. Using CDBG funds, the remainder of the road will be built. These funds will be repaid by Fafard Real Estate as the remaining development parcels are sold. NON-CDAG PUBLIC INVESTMENTS: AMOUNT: A. Estimated property tax abatements to Thermal $231,621 Circuits in years 1 through 10 B. City loan to Thermal Circuits for purchase of $ 50,000 four-acre parcel.` C. Estimated state investment tax credits in year 1 $ 53,750 D. Hiring of consultants to conduct reuse study $ 5,000 and devise marketing strategy for the sale of Thermal Circuits' existing Jefferson Avenue facility. The City of Salem will fund for the study. TOTAL $340,371 This is a$50,000, interest-free, deferred loan to be repaid by Thermal Circuits upon the sale of its Jefferson Avenue facility. EXHIBIT F CONLNIUNITY DEVELOPMENT ACTION GRANT Grantee - Private Sector Participant Agreement This Grantee - Private Sector Participant Agreement is entered into as of this twenty-third day of October, by and between the City of Salem (hereinafter referred to as "Grantee") and Fafard Real Estate and Development Corporation (hereinafter referred to as "Private Sector Participant'). WHEREAS, the Grantee has submitted an application to the Massachusetts Executive Office of Communities and Development hereinafter referred to as"EOCD") for a Community Development Action Grant(hereinafter referred to as"CDAG")to support the costs of specific activities necessary for the carrying out and completion of a Community Development Project (hereinafter referred to as CDAG Project'); WHEREAS,EOCD has approved an award of up to$268,559 in CDAG funds to the Grantee for that CDAG Project; WHEREAS, in its selection of the Grantee, EOCD relied on certain representations by the Grantee and the Private Sector Participant relative to the CDAG Project; and WHEREAS, those representations included firm commitments of resources from the Private Sector Participant; NOW THEREFORE, in consideration of the mutual promise hereinafter stated,the parties mutually covenant and agree as follows: I. RESPONSIBILITY OF THE GRANTEE A. Grantee Activities. The grantee shall,in a manner satisfactory to the EOCD,perform specific activities necessary for the carrying out and the completion of the CDAG project. Those activities are described below: The City of Salem will provide the fends to purchase 800 linear feet of roadway, completing the land acquisition project begun with CDAG funding. B. Period Of Performance. The Grantee Activities cited above shall commence on of after October 1, 1995 and shall be completed on or before November 30, 1995. II. RESPONSIBILITY OF THE PRIVATE SECTOR PARTICIPANT A. Private Sector Participant Activities. The Private Sector Participant shall,in a manner reasonably satisfactory to the EOCD and consistent with the agreement with the City of Salem, perform specific activities in association with the CDAG, perform specific activities in association with the CDAG Project. Those activities are described below: Fafard Real Estate and Development Corp. Will sell a four-acre parcel of land to Thermal Circuits, Inc. for$50,000. Fafard Real Estate and Development Corp. will sell control of the roadway, Technology Way, to the City of Salem. Technology Way will be maintained as a public way. B. Period of Performance. The Private Sector Participant activities cited above shall commence on or after October 1, 1995 and shall be completed on or before November 30, 1995. III. PROJECT COMPLETION The Grantee and the Private Sector Participant hereby warrant and represent to EOCD that the activities described in sections I.A. and II.A. above will be completed to the EOCD's satisfaction in accordance with the performance schedule cited in section I.B. and II.B. above. NOTE: Should EOCD make payment of CDAG funds to the Grantee and should the Private Sector Participant not satisfactory perform the activities identified in section II.A above, EOCD reserves the right to take any and all actions necessary to recover from the Grantee and/or Private Sector Participant an amount equal to those funds paid to the Granter, plus all costs associated with such recovery. IV. ENTIRE AGREEMENT This Grantee--Private Sector Participant Agreement between the parties relative to the provision of CDAG funds. No changes or additions to this Agreement may be made except in writing and upon the express written consent of the parties and EOCD. This Agreement will not be final and binding upon the parties until approved by EOCD and thereafter incorporated into the CDAG Agreement between EOCD and the Grantee. In witness whereof,the Grantee,authorized by vote of the governing body, an attested copy of which is attached hereto, and the Private Sector Participant* have executed this Grantee - Private Sector Participant Agreement in triplicate as of the date above written. G NTEE WILLIAM E. LUSTER CITY PLANNER PRIVA SEC' ��fjR_PARTIC ANT 1 / G � . 0 I�rtCAf1 ) BEAU 61 --A T 1mn �r"1��1�Omt�; CaZp RICHARD E. TERRILL, CFO Appr e by EOCD *The Private Sector Participant must execute and attach hereto a certification under the pains and penalties of perjury,pursuant to M.G.L. C. 62C Section 49A, that it has complied with all laws of the Commonwealth relating to taxes. MMIBIT P COMMUNITY DEVELOPMENT ACTION GRANT Grantee - Private Sector Participant Agreement This Grantee-Private Sector Participant Agreement is entered into as of this seventh day of October, by and between the City of Salem (hereinafter referred to as "Grantee") and Thermal Circuits, Inc. (hereinafter referred to as "Private Sector Participant'). WHEREAS, the Grantee has submitted an application to the Massachusetts Executive Office of Communities and Development hereinafter referred to as "EOCD") for a Community Development Action Grant(hereinafter referred to as"CDAG")to support the costs of specific activities necessary for the carrying out and completion of a Community Development Project(hereinafter referred to as CDAG Project"); WHEREAS,EOCD has approved an award of up to$268,559 in CDAG funds to the Grantee for that CDAG Project; WHEREAS, in its selection of the Grantee, EOCD relied on certain representations by the Grantee and the Private Sector Participant relative to the CDAG Project; and WHEREAS those representations included firm commitments of resources from the Private Sector Participant; NOW THEREFORE, in consideration of the mutual promise hereinafter stated;the parties mutually covenant and agree as follows: 1. RESPONSIBILITY OF THE GRANTEE A. Grantee Activities. The grantee shall,in a manner satisfactory to the EOCD,perform specific activities necessary for the carrying out and the completion of the CDAG project. Those activities are described below: The City of Salem will purchase 800 linear feet of roadway, completing the land acquisition project begun with CDAG funding. B. Period Of Performance. The Grantee Activities cited above shall commence on of after October 1, 1995 and shall be completed on or before November 30, 1995. II. RESPONSIBILITY OF THE PRIVATE SECTOR PARTICIPANT A. Private Sector Participant Activities. The Private Sector Participant shall,in a manner satisfactory to the EOCD,perform specific activities in association with the CDAG,perform specific activities in association with the CDAG Project. Those activities are described below: Thermal Circuits, Inc. will construct a 32,000 s.f. facility at Technology Way in Salem. Thermal Circuits will continue to operate its facility at 4 Jefferson Avenue in Salem for approximately two years after-the construction of this new facility. B. Period of Performance. The Private Sector Participant activities cited above shall commence on or after October 1, 1995 and shall be completed on or before June 30, 1996. III. PROJECT COMPLETION The Grantee and the Private Sector Participant hereby warrant and represent to EOCD that the activities described in sections I.A. and II.A. above will be completed to the EOCD's satisfaction in accordance with the performance schedule cited in section I.B. and II.B. above. NOTE: Should EOCD make payment of CDAG funds to the Grantee and should the Private Sector Participant not satisfactory perform the activities identified in section II.A above, EOCD reserves the right to take any and all actions necessary to recover from the Grantee and/or Private Sector Participant an amount equal to those funds paid to the Granter, plus all costs associated with such recovery. IV. ENTIRE AGREEMENT This Grantee--Private Sector Participant Agreement between the parties relative to the provision of CDAG funds. No changes or additions to this Agreement may be made except in writing and upon the express written consent of the parties and EOCD. This Agreement will not be final and binding upon the parties until approved by EOCD and thereafter incorporated into the CDAG Agreement between EOCD and the Grantee. In witness whereof,the Grantee,authorized by vote of the governing body,an attested copy of which is attached hereto, and the Private Sector Participant* have executed this Grantee - Private Sector Participant Agreement in triplicate as of the date above written. GRA T E At P�n - WILLIAM E. LUSTER CITY PLANNER PRIVATE SECTOR PARTICIPANT / Yl Appr d by EOCD *The Private Sector Participant must execute and attach hereto a certification under the pains and penalties of perjury, pursuant to M.G.L. C. 62C Section 49A, that it has complied with all laws of the Commonwealth relating to taxes. CDAG II EXHIBIT G: JOB CREATION POTENTIAL OF PROPOSED PRIVATE PROJECT Full-Time Permanent Jobs at Thermal Circuits Total Jobs A. Number of New Jobs To Be Created: Year 1: 14-17 Year 2+ 9-12 B. Types of New Jobs To Be Created: Upper Management, Year 1 1 position Middle Management, Year 1- 3 2 positions Production Assembly 9 -12 positions per year Clerk/Office, Year 1-3 2 positions C. Number of Jobs Retained: 85 Part-Time Permanent Jobs (Thermal Circuits) D. Number of New Jobs To Be Created: Year 1 Unknown at this time Year 2+Unknown at this time Minority/Low-Moderate Income Recruitment at Thermal Circuits Please see Thermal Circuits' Equal Employment Opportunity Statement Objective. E. Is There An Active Recruitment Plan in Place? Yes No F. What is the Company's Hiring Goal? Year 1 % Year 2+ % Additional Full-time Permanent Jobs We estimate that development of the five remaining parcels has the potential to create 684 full- time permanent jobs. f EXHIBIT H COMMHNITY DEVELOPMENT ACTION GRANT II AFFIDAVIT OF TAX COMPLIANCE Pursuant to Massachusetts General Laws, Chapter 62C, Section 49A, clause (b) added by Section 35 of Chapter 233 of the Acts of 1983, I, Anthony A. Klein. President, authorized (Name and Title) signatory for Thermal Circuits. Inc. whose principal place of business is 4 Jefferson Avenue in (Private Sector Participant) Salem, MA hereby certify under the pains and penalties of perjury that the above-named Private Sector Participant has complied with all laws of the Commonwealth of Massachusetts relating to taxes. i /, Authorized Signature Ant ony A. Klein, President Date EXHIBIT H COMMUNITY DEVELOPMENT ACTION GRANT II AFFIDAVIT OF TAX COMPLIANCE Pursuant to Massachusetts General Laws, Chapter 62C, Section 49A, clause (b) added by Section 35 of Chapter 233 of the Acts of 1983, I,_RK Ri rlD r=. iF�iYiLL S.R.V P.4CF U authorized (Name and Title) signatory for Fafard Real Estate and Development Corp whose principal place of business is (Private Sector Participant) 290 Eliot Street in Ashland, MA hereby certify under the pains and penalties of perjury that the above-named Private Sector Participant has complied with all laws of the Commonwealth of Massachusetts relating to taxes. Authorized Signature Print Name d(hc-)(- 16'L of>, IVL Title ncwh", L3 I7�i_S Date CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT WILLIAM E. LUSTER ONE SALEM GREEN City Planner 3 01970 f (508) 745-9595, EXT. 311 FAX (508) 7445918 November 2 1995 Paul J. Beattie, Attorney Fafard Real Estate and Development Corporation 290 Eliot St. Ashland, MA 01721 Dear Attorney Beattie: This letter is to confirm that the City will make its final payment of$230,000 in the purchase of Technology Way in Salem upon completion of the binder coat and the installation of drainage, sewer and water in the road. The costs of curbing and the finish coat of asphalt are adequately covered by the betterment of$200,000 to remain on the unsold land. The City will take delivery of the deed for Technology Way on Friday,November 3, 1995 at the offices of Serafini, Serafini & Darling. Thank you for your cooperation. Si cere y, tl t uster City P er me\hermahpayment wpd - ® FAFARD REAL ESTATE AND DEVELOPMENT CORP. 290 ELIOT STREET ' ASHLAND, MASSACHUSETTS 01721 TEL. (508) 881-1600 FAX (508) 875-8610 Residential Sales (508)881-6662 Commercial Sales/Leasing (508)881-1512 VIA FAX 1-508-744-5918 November 2 1995 Ns. Michelle Commarata Planning Department City of Salem, MA One Salem Green Salem, MA 01970 RE: Technology Way, Salem, MA Dear Michelle, Please note the current plan for the delivery of the Deed for Technology Way in Salem is to occur at the Offices of Serafini, Serafini & Darling on Friday, November 3, 1995. Howard is willing to deliver the deed to the road pursuant to his agreement with Mr: Luster providing a letter is sent to me in advance of closing indicating that full and final payment will occur upon completion of the binder coat and drainage, sewer and water in the road. Howard has asked me to point out to you that any costs for the finish coat of asphalt on the road is more than adequately covered by the $200,000.00 Betterment to remain on the unsold land. Howard will be available today by telephone to discuss this matter with Biu. Please contact me should you have any questions. i Ve trulyYon ., Paul J.,Bea ie. Attorney To: Sean Calnan MEMORANDUM From: Mary Cassidy City of Salem Subject: Thermal Circuits Article Planning Department Date: June 9, 1998 Sean, On June 1, 1998, Thermal Circuits had a ground breaking ceremony for its new addition. Enclosed is an article from the Salem Evening News on the event. Thanks for all your assistance when questions arise! ■ the satem schools. 1942 and taught It will cost about$90,000 to hire far' t "mjyn � adtyN1 a xs . gi E' there from 1949 to achers and staff for the new spe 1955. She Is a al educationrogram, but the v s aax y p e t�d , resident .hool system' spends `about Peabody � ✓� 50,000 on the tuitions of those ✓ d �� F } r ,x, News staff photo/ ✓e students,Callahan said. r f� , �� %�,r Amy Sweeney "We're trying more and more to )me-base it here,"he said. "This w really a significant step. We can fer these programs here." The school system also will add �' MM* :# ^� foreign language teacher at the u � dtonstall School. _;; "This is a new position Dr. ,' 9E��-� t�1 orley (Saltonstall Principal athy Corley) has asked for the st two m saidyears,"athe snperrnten- Thermal Circuits- breaks ground on addition By GREGORY LIAKOS : up its operation at Technology Klein. Most of the new, 20,000-square- News staff. Way should help the city market ."We consider ourselves a world- foot building will be used for mah- p the park to light manufacturers. class company," said Klein. ufacturing, while a third of it will �lfep� SALEM —.Thermal Circuits "Actions speak louder than "We're the sole supplier to Xerox be set aside as warehouse space. broke ground yesterday on a $1 .words," said Chamber of Com- Corp.,which has put all its eggs in Connolly Brothers of Beverly is ling lessons offered by the million addition to its manufac- merce Director Ellen DiGeromino. Thermal Circuits'basket." doing the work, which is expectyd tment will take place every turing plant, a project that may "Manufacturing is one of the areas The company has hired an addi- .to finish up in September. ;day,June 2 through Friday, help turn around the moribund that assures good work for people." tional 30 workers over the past Usovicz vowed to focus more of in.on Thursdays,at the Park Technology Way industrial park. Thermal Circuits built its $1.7 year, and now employs 105. It's City Hall's attention on encour- Thermal Circuits is still the only million manufacturing plant with also invested . an additional aging manufacturing during hi's through Friday for children major tenant in the industrial park the help of a big property tax $500,000 in new equipment. campaign for mayor. He said idult sailing program,for res- off Swampscott.Road,despite rapid break from the city in 1995. The "We expect that trend will con- Thermal Circuits' addition will =venings. All lessons will be development of the residential company, which makes infrared tinue,"said Klein. boost Technology Way's attrac- ailing instructors.Last year's area that surrounds it. and surface heaters, has doubled Klein joined Usovicz, Di- tiveness to firms looking to refo- )f of residency is required.A But Mayor Stanley Usovicz is in size over the past years and Geronimo and a host-of company rate. new applicants.An indoetri- now wooing a South Shore manu- now handles about$8 million in and city officials yesterday for a "We're actively pursuing teh- vided, and the program will facturer to locate there. And annual sales, said President and groundbreaking on the company's ants for this property," he said. ✓Ionday,June 22. Thermal Circuits' decision to beef Chief Executive Officer Anthony new addition. It's imperative we fill the park." .ng hike just,makes cents vo full-time meter readers on staff sends a "mixed message" to busi- n Formonths,t g limits. noses since it increases their cus- Key, nVes en s For months, there was only one tourers'costs. 1. i t-time meter maid covering the But some businesses said the lackmire city:Usovicz later hired a of meter readers meant motoristsabot Money Management Breakfast Meeting �cond part-time staffer to help. were parking in front of their shops Of course,there weren't any com- for hours at a time,taking available ' `aintsabout lack ofparking en- parking away from their patrons. Held at The Hawthorne Hotel, Salem, Massachusetts. rcement from residents and busi- If there's any consolation to the ass leaders who view the meters increase, it's that Salem isn't alone. . Wednesday, June 24, 1998, 7:30 a.m. - 9:00 a.m. a bane. . I I The Parking Board noted that most Indeed, , ,Councilor-at-large cities with populations under homas`Furey voted against the in- 100,000, including Peabody,already *Are the markets over-valued? eape last week because he said it charge 25 cents an hour to park. What are the best investment opportunities in the coming year? CUSTOMERpRECIATIQINNE9 *Where are interest rates and the stock market headed? r CALCULATING NUMBER AND VALUE OF PERMANENT JOBS 1. Calculate square footage per parcel Maximum build-out is 45% of lot size Assume building sizes are roughly 38% of maximum allowable build-out , following Thermal Circuits' model. Maximum Estimated Parcel #Acres Lot size (s.f.) Bldg. Size (s.f.) Bldg Size (s.f.) A 5.63 245,242.8 110,359.3 41,936.5 B 4.90 213,444.0 96,049.8 38,419.9 C 4.00 174,240.0 78,408.0 30,000.0 D 4.00 174,240.0 78,408.0 31,363.2 E 5.00 217,800.0 98,010.0 39,204.0 F 4.20 182,952.0 82,328.4 32,931.4 2. Determine number of jobs per square foot of building space Figures are based on Thermal Circuits'job creation estimates Model for job creation estimates: Thermal Circuits retains 63 jobs and creates 60 jobs Number of jobs generated per square foot is 0.0041 (123 jobs/30,000 s.f) Parcel #Jobs created A 172 B 158 C 123 Thermal Circuits D 129 E 161 F 135 Total 877 3. Determine value of jobs Average wage-Thermal Circuits $28,000 Number of jobs 1468 Total value of jobs $41,104,000 CALCULATING NUMBER AND VALUE OF CONSTRUCTION JOBS 1. Determine value of faciltiies developed Six plants valued at $1.1 million per plant $6,600,000 2. Take 50 percent of value of facilities $3,300,000 3. Determine Number of jobs Divide Step 2 by average construction salary 110 (average annual construction salary is $30,000) 4. Determine value of jobs (#jobs " salary) $3,300,000 L - ]? DEC-15-85 FR1 11;28 AM FARARD R E & DEV, FAX N0, 1 508 875 8810 P. 01 © FAFARD RHAL ESTAT8 AND DEVPLOPMENT CORP. 290 Euor STaaer Aera,v m, MASSACW3rrM 01721 Tet, (508)881-1600 FAX(508)875-8610 Pm&nt&i Belo (508)ul.W2 CommrrNalSahe/lseriq (508)BB1-1512 DO"Albor 12, 19118 AD Wmi m Lumer,oftr Pkaaer One Selman anon flAbon,HA 01970 Dear Bob lndutd ilealEataa Sad Dweleyaate t7e:poeatloa pmpotu a Spp*the Nadu 00=0 of bttamtaaaa aoae»tt pa0eanac at?aahaolotf Wap as Deeeaoher Is, 1Y9d. we 1at0 haat made Swan ar the rNatremente and 0appaadukatlose retardim sold or"A r Pavan• 7a8ud Real aft"i Dnalap a"t CaVam loa Wlf1 f"A"and all da60ta that rusk&"a the aaenme eandit aAGOW�P1419 Mlonlb�ee t a t=penffin:toted Aam 13 to 30 dqp", We WM repab thm da&ob dw4as a prlat, 19%, waeualp, samm x ah am Howard VWkrd HkKAMW 2'd T906-96E-2T9*Xb3 GMOJG3W'GdUJU3 TO:TT S6, Si 33G I City of Salem App&cadon for CDAG 1. Description of Project: The City of Salem seeks a $400,000 CDAG award to construct an access road and make other infrastructure improvements in order to create an industrial park at Swampscott Road. These improvements will allow Salem to retain a growing manufacturing company and will enable the City to attract small and medium-sized industrial firms to the site. Thermal Circuits, a Salem-based manufacturer of heaters and heater assemblies with 63 full-time employees, has outgrown its antiquated, 27,000 square foot manufacturing facility on Jefferson Avenue. The company must move into a modern, 30,000 square foot plant by July, 1995. Currently, no appropriate facility exists in Salem. However, the proposed project area would be very suitable for a new Thermal Circuits plant. Discussions between the City, the land owner and Thermal Circuits have led to an understanding that: 1) Thermal Circuits will locate at Swampscott Road and 2) the land owner will create five additional development parcels, if the City can obtain funding to construct a road and infrastructure. The land owner will greatly subsidize the sale price of the parcel to Thermal Circuits. The land cost subsidy is vital because the total cost of constructing a new plant in Salem is estimated at $1.6 million, while an existing facility outside the City can be fit to their specifications at a cost of$1.1 million. This is a rare and outstanding opportunity for Salem to improve its industrial facilities. The City of Salem faces several challenges in trying to maintain its industrial base. Unlike other cities in the region, Salem does not own industrial land and cannot package attractive deals for potential developers. Nor is there significant privately-owned industrial property available in the City. Salem's existing small manufacturers cannot find adequate facilities as they grow, and many outside firms do not consider our City a viable location for that reason. A small city such as Salem might not be able to compete for giant manufacturing concerns, but we are confident that, with better facilities, we can be an attractive option to small and medium-sized industrial firms. In addition, the City is working to designate the site an Economic Opportunity Area. 2. Jobs: If Thermal Circuits locates at the site, Salem will retain 63 manufacturing jobs. The company's growth projections call for nine to 12 new factory-level jobs per year for the next five years for a total of 45 to 60 new jobs, plus additional administrative positions. It is difficult to define for certain how many new jobs will be created in the long run as the other five sites are developed. Using Thermal Circuits as a model, we would estimate the retention/creation of between 300 and 600 jobs at the remaining five development parcels. 3. Description of Area: The project area meets the definition of a "Decadent Area" -- it is an area detrimental to the sound growth of the community, since business and economic conditions make it unlikely that vacant land will be developed by ordinary operations of private enterprise. 4. Impact on communities of low to moderate income: Thermal Circuits provides stable, relatively well-paying manufacturing jobs for Salem residents. Since the industrial park is envisioned as a location for Salem manufacturers as they outgrow their facilities, this project will retain and create high-quality jobs in Salem, offering low to moderate income residents employment options outside of the low-paying retail and tourism sectors. 5. Matching Investment: The land owner has agreed to transfer two acres of land valued at $200,000 to the City. The City will develop this land as a public access road. The $200,000 1 City of Salem Application for CDAG land value represents the local match for this project. Private investment at the site of the proposed industrial park will far exceed the $400,000 grant required to catalyze the project. Because Thermal Circuits will locate at the site of these improvements, the public investment will leverage $1.4 million in private investment: $1 million for development of a Thermal Circuits plant; $400,000 is the value of four developable acres that the private land owner has agreed to sell to Thermal Circuits for just $50,000 if the City can win funds to construct a road. 6. The City of Salem has successfully administered numerous community and economic development programs. Please see the attached table. 7. Secondary Growth: The proposed infrastructure improvements will not benefit Thermal Circuits alone -- additional private investment will follow. With road and sewer lines in place, the remaining property will be subdivided into five industrial parcels. Salem will be able to offer existing manufacturing firms a place to expand and will compete more effectively for small manufacturing funis interested in relocating to our region. 8. Tunes of Jobs Created: Thermal Circuits is a source of high quality, stable jobs for Salem residents of diverse levels of skill and education. The average length of service at the company is 14 years. Employees enjoy specialized training --the company has already invested more than $42,000 in training programs and continues with plans to upgrade workers' skills. At the remaining five parcels of land, the City will work to attract other manufacturing companies. Such funis typically offer better wages and skill-building opportunities than jobs in other sectors. 9. Properly Tax Impact: The Salem Board of assessors estimates that the construction of a new Thermal Circuits plant will generate an additional $74,260 per year in property tax revenue. Assuming similar development on the remaining five parcels, additional revenues of$35,750 per parcel could be realized, amounting to additional potential tax growth of$178,750. 10. Financial Commitments: The City of Salem can have all commitments in place from the land owner and from Thermal Circuits within 14 days of approval. The prospective tenant and developer are committed to begin construction in a timely manner. Time is of the essence for Thermal Circuits; the company must be in a new facility by July, 1995. 11. Unemployment rate: Salem's unemployment rate is 6.30%, according to DET data for 1993. 12. Low/Moderate Income Residents: According to HUD, 41.27% of Salem's residents are of low to moderate income. 13. Cost: The total project cost is estimated at $400,000. 14. Site Control: The City does not own the site of the proposed road and infrastructure. Site control will be secured when City is able to inform the land owner that it has received the necessary grant funds to construct the road and infrastructure. 15. The opportunity to develop an industrial park is a rare chance to stabilize Salem's industrial base and improve the job prospects and wages of low to moderate income residents. While the site of the proposed park is not proximate to a low income neighborhood, the employers expected to locate there will draw-employees from low income areas, as Thermal Circuits currently does. 2 City of Salem Application for CDAG CITY OF SALEM -- COMMUNITY AND ECONOMIC DEVELOPMENT PROGRAMS The following table provides an outline of the community and economic development programs successfully managed by the City of Salem as well as a select list of community and economic development grants made by state and federal sources. YEAR PROGRAM 1983-present Salem Redevelopment Authority Small Business Capitalization Loan Program 1992-present City of Salem Facade Improvement Loan Program 1993 to present Soft Second Mortgage Program for first time homebuyers. (CDBG and HOME Funds) 1976 to present Salem Home Improvement Program -- low interest loans for qualified home owners. (CDBG Funds) 1993 to present US Trust/City of Salem Rehabilitation Loan Program -- $250,000 loan pool for low and moderate income residents. 1993 to present US Trust/City of Salem De-Leading Loan Program -- $50,000 loan pool for investor-owned and owner-occupied housing. 1992 to present MHFA Get the Lead Out Program 1992 to present MHFA Home Improvement Loan Program 1984 Public Works Economic Development Grant 1985,91,92,94 UPARR grants totalling $323,770 for development of recreational facilities. 1985 Urban Development Action Grant (UDAG) in the amount of$650,000 for development of Shetland Properties industrial park. 1986, 1987, 1988 CDAG grants totaling $2,240,675 awarded for successful development projects on Derby Street, Essex Street and Swampscott Road. 1987 Public Works Urban System grant for $1.6 million 1984 to 1994 CDBG Entitlement I-XI: Funds totalling $11,633,000 used in successful management of social services, park improvements, and housing programs. 1991, 1992 MHFA Home Improvement grants totalling $345,000 successful used to implement housing programs. 1989-1992 MHFA Neighborhood Rehabilitation grants totalling $775,000 used in housing programs. 3 CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT �oxoir t. Mp WILLIAM E. LUSTER y��a ONE SALEM GREEN City Planner = 01970 a,s 1 t,.�< ��-`,,.^,,;,,,. c (508) 745-9595, EXT. 311 9g��NE�� FAX (508) 744-5918 CITY OF SALEM PROPOSALS FOR COMMUNITY DEVELOPMENT ACTION GRANT L Original CDAG Proposal-- October, 1994 GRANT AMOUNT REQUESTED: $400,000 PROJECT DESCRIPTION: The City of Salem requested a $400,000 CDAG award to construct an access road and make other infrastructure improvements in order to create an industrial park at Swampscott Road. These improvements will allow Salem to retain a growing manufacturing company, Thermal Circuits, and will enable the City to attract small and medium-sized industrial firms to the site. Discussions between the City, the land owner and Thermal Circuits have led to an understanding that: 1) Thermal Circuits will locate at Swampscott Road and 2) the land owner will create five additional development parcels, if the City can obtain funding to construct a road and infrastructure. The land owner will greatly subsidize the sale price of the parcel to Thermal Circuits. The land cost subsidy is vital because the total cost of constructing a new plant in Salem is estimated at $1.6 million, while an existing facility outside the City can be fit to their specifications at a cost of$1.1 million. The land owner agreed to transfer to the City two acres of land valued at $200,000. The city would develop this land as a public road. This $200,000 land value represents the local match for this grant. 1 . JOBS CREATED Jobs retained at Thermal Circuits: 63 New permanent jobs created by Thermal Circuits: 60 Permanent jobs created at five other development parcels: 930 Construction jobs: 110 TAX REVENUE GENERATED Salem's City assessor estimates that this project could result in additional potential tax growth of$253,010. Since the City hopes to designate this site an Economic Opportunity Area, it will grant property tax credits in order to attract companies to the site and would not experience the full benefits of property tax growth until these incentives expire. EOCD OBJECTIONS TO SALEM'S PROPOSAL 1. Local match not appropriate 2. Private benefit to land owner is more than incidental CITY'S RESPONSE TO EOCD OBJECTIONS 1. Public benefit far exceeds private benefit • Private benefit is evident in all CDAGs, since economic development is the goal • Value of jobs and tax revenue exceeds benefits to Fafard by more than $23 million • Project improves Salem's industrial facilities -- offering environmentally clean, industrially zoned land for development • Salem gains ability to compete with other cities for firms interested in expanding in and/or relocating to our region 2. City offers to impose price ceilings on the sale price of the land after road is completed, preventing windfall profits. This idea was rejected. 2 As a direct result of the many issues raised by EOCD staff, the City outlined a second CDAG proposal. IL Second CDAG Proposal--December, 1994 GRANT AMOUNT REQUESTED: $200,000 PROJECT DESCRIPTION: The City of Salem now seeks a $200,000 CDAG award, one half of the original request, to buy a parcel of land at Swampscott Road. This four-acre parcel will be leased or transferred to Thermal Circuits in order to retain this growing manufacturing firm in Salem. As the second phase of this project and as the local match the City will loan funds to the landowner to allow construction of a road and infrastructure to serve the remaining five development parcels in the area. Fafard Real Estate and Development Corporation, the land owner, has agreed to build the road. The City will lend $200,000 to Fafard, and Fafard will contribute $200,000. After the new Thermal Circuits plant is built, Fafard will repay the City's $200,000 as the remaining land is sold. The payment will be in the form of a betterment fee per acre. (If there are 24 acres suitable for development after the Thermal Circuits plant is built. To repay the $200,000 loan, Fafard will pay $8,333 per acre as land is sold.) The City's loan of$200,000 to Fafard for construction of the road represents the local match for this grant. JOBS CREATED Jobs retained at Thermal Circuits: 63 New permanent jobs created by Thermal Circuits: 60 Permanent jobs created at five other development parcels: 930 Construction jobs: 110 3 TAX REVENUE GENERATED Salem's City assessor estimates that this project could result in additional potential tax growth of$253,010. Since the City hopes to designate this site an Economic Opportunity Area, it will grant property tax credits in order to attract companies to the site and would not experience the full benefits of property tax growth until these incentives expire. EOCD OBJECTIONS TO SALEM'S PROPOSAL 1. Although the City has reduced its request by 50 percent and matched this request with local funds, EOCD has suggested that the local match is not appropriate. It is EOCD's contention that the land acquisition and road construction are two separate projects. The City must provide local match for land acquisition. EOCD officials do not want to be associated with construction of the road. 2. Private benefit to land owner(Thermal Circuits) is more than incidental. 3. Development must occur at front parcel (closest to existing road) in order to be funded. CITY'S RESPONSE TO EOCD OBJECTIONS 1. If road and land acquisition are two distinct projects, why does EOCD care which parcel is chosen for development? 2. While Fafard will experience an increase in the value of the land as a result of road construction, the issue of private benefit is mitigated by the company's paying of betterment fees to City as remaining parcels are sold. 3. If road and land acquisition are two distinct projects and the road will not be funded by EOCD, why is the "private benefit" created by road an issue? 4. Public benefit far exceeds private benefit • Value of jobs and tax revenue far exceeds profits to Fafard • Project improves Salem's industrial facilities -- offering environmentally clean, industrially zoned land for development • Salem gains ability to compete with other cities for firms interested in expanding in and/or relocating to our region mcAthemakhmno.fac 4 EXECUTIVE OFFICE OF COMMUNITIES & DEVELOPMENT William F. Weld, Governor dei �L9l69pg�9 /�'f� Argeo Paul Cellucci,Lt. Governor �lhfi/ yam''' Mary L. Padula,Cabinet Secretary y o �yy3 Date: August 23, 1995 ®��'�� �oSFcE� F Address: Mayor Neil Harrington Salem City Hall Salem, Ma. 01970 Dear Mayor Harrington: Enclosed you will find your CDAG 11 Contracts for your awarded $268,559. Also, enclosed are blank copies of a Private Sector Participant Agreement and Tax Compliance Certificate which need to be included when you return the sig e contracts. I call your attention to Page 13 of the Attachment A - Scope of Services. There are CDAG required Exhibits A-H. These Exhibits must also be returned with the signed contracts. However, most of the information isoalready in your application. Please use that information to assist you in filling out these Exhibits and update any of the application material to reflect the project's current status as needed. I look forward to working with you on your project and do not hesitate to contact me at 617-727- 7001 [X 410: Tim Sheehan; X458: Arleen Tremblay] if you have any questions. Sincerely, Arleen R. Tremblay,.Special Assistant for Economic Development sAwp\art\saleml.doc sAwp\art\cdagform.3 100 Cambridge Street Boston,Massachusetts 02202-0044 __ ___ New England-R.eal Eetate-Journal--Massaehusetts�November,10 -November`:10, 1895 I! Massachusetts At Fafard RAE.=&:Dew's-Ilechnalogy_Way=�� ° Thermal Circuits begins 32,00.4 s/f 'plant n-- Salen SALEM.MA Ma or Neil &fpasy '+r3it�d,YrY�i�u a i. E �Mtf4 *�+ secretary 1' � Paduula of the Excutive Office of Communities and Develop- " menti,Thermal Circuits'direc- tors and employees, and Sa- lem business leaders gathered October 24 at Technology Way —Salem's new industrial park -to break ground for Thermal Circuits'manufacturing facil- ity. 'With the development of Technology Way and this in- -� dustrial park,Salem can offer , ,,,7. r;=•,_ .a _. , something few communities on the North Shore can offer: The city obtained a$268,559 parcel in the industrial park. clean,affordable land for com- Community Development Ac- ' Shown in photo (from left) mercial and industrial,devel- tion Grant from the Massa- are:Salem city councillorJohn opment," said mayor chusetts Executive Office of Donahue; Thermal Circuits Harrington. "We are pleased Communities and Develop- president Anthony Klein;sec- that Thermal Circuits, a rap- ment and tapped its Federal retary Mary Padula, Execu- idly growing Salem manufac- Community Development tive Office of Communities & turer, chose to expand in Sa- Block Grant funds to purchase Development; Salem mayor lem as the industrial park's the road. The land owner, Neil Harrington; Salem city first tenant." Fafard Real Estate and Devel- councillor William Bums; Sa- The City of Salem,with state opment, will repay the city's lem city councillor Kevin and federal funds,is develop- CDBG funds as.a betterment Harvey;George Mazareas and ing a road and infrastructure fee as the company sells par- Jeffrey King of the Mass. Of- to serve the.29-acre,six parcel cels for development: fice of Business Development. industrial park under devel- Public investment in this opment off Swampscott Rd. project will leverage significant Thermal Circuits, a Salem private investment in Salem, manufacturer:of heaters and as the city combines its ability heater assemblies, is con- to offer affordable, clean land structing a 32,000 AN plant on with its ability to offer state Technology Way. When fully and local tax benefits through developed, city officials esti- its designation as one of the mate that the park could be Commonwealth's Economic home to 200,000-300,000s/f of Target Areas. Thermal Cir- development and up to 1,000 cuits was the first beneficiary full-time jobs. The park has of Salem's ETA designation. the potential to generate The company received a pack- $230,000 in tax revenue an- age of local and state tax ben- nually. efits and purchased a four acre itsnology To: Tara FrieFax #: (617)727 FACSIMILE Re: ThermalCir Way Ground Breaking Event Date: October 23, 1995 Pages: I , including this cover sheet. Paula DiMichele asked me to forward this information about Tuesday's event in Salem. The ground breaking event will be held tomorrow at 2 p.m. at Technology Way, off Swampscott Road in Salem. The event celebrates both the developments of a new facility for Thermal Circuits, a Salem manufacturer of heaters and heater assemblies, and the development of Technology Way. This is the agenda for speakers at the event: • Mayor Neil J. Harrington -- opening remarks and emcee A' • Senator Fred Berry -- assisted with state grant • Representative Mike Ruane -- assisted with state grant • EOCD Secretary Mary Padula--to discuss the role of CDAG in promoting the infrastructure project • MOBD Executive Director-John Regan --to discuss how incentives available through the EDiP helped to make this project possible • Thermal Circuits President Anthony A. Klein • Howard Fafard of Fafard Real Estate and Development • Salem City Council President Sally Hayes Please call me if you have any questions about the event. [ Thank you. From the desk of... Michelle Cammarata Assistant Director for Economic Development City of Salem Planning Department One Salem Green Salem,MA 01970 (508)745-9595,extension 311 - Fax:(508)744-5918 CrTY OF SALEM. MA FAX COVER LETTER FAX (508) 744-5918 DATE: JO 2 TIME: FROM: DEPT: TO: � � SUBXFCT. COMMENTS: WE ARE TRANSUrMNG THIS AND PAGES (S). IF YOU HAVE ANY QUESTIONS OR PROBLEMS, PLEASE-C US AT v6��OND1 ASG tt f 3 fn•' li . �C/MINE tP� CITY OF SALEM, MASSACHUSETTS NEIL J. HARRINGTON MAYOR PRESS RELEASE FOR MORE INFORMATION, CONTACT FOR IMMEDIATE RELEASE NEIL J. HARRINGTON, MAYOR OCTOBER 24, 1995 (508) 745-9595, EXT. 311 CITY BREAKS GROUND AT TECHNOLOGY WAY; THERMAL CIRCUITS BEGINS PLANT CONSTRUCTION Mayor Neil J. Harrington, Secretary Mary Padula of the Executive Office of Communities and Development (EOCD), Thermal Circuits' directors and employees, and Salem business leaders gathered today at Technology Way-- Salem's new industrial park--to break ground for Thermal Circuits' manufacturing facility. "With the development of Technology Way and this industrial park, Salem can offer something few communities on the North Shore can offer: clean, affordable land for commercial and industrial development," said Mayor Harrington. "We are pleased that Thermal Circuits, a rapidly growing Salem manufacturer, chose to expand in Salem as the industrial park's first tenant." The City, with State and Federal funds, is developing a road and infrastructure to serve the 29-acre, six parcel industrial park under development off Swampscott Road. Thermal Circuits, a Salem manufacturer of heaters and heater assemblies, is constructing a 32,000 square foot plant on Technology Way. When fully developed, City officials estimate that the park could be home to 200,000 - 300,000 square feet of development and up to 1,000 full-time jobs. The park has the potential to generate $230,000 in tax revenue annually. The City obtained a $268,559 Community Development Action Grant (CDAG) from the Massachusetts Executive Office of Communities and Development (EOCD) to construct 50 percent of the road. The City tapped its Federal Community Development Block Grant (CDBG) funds to finance construction of the remainder of the road. The land owner, Fafard Real Estate and Development, will repay the City's CDBG funds as a betterment fee as the company sells parcels for development. (more) SALEM CITY HALL • 93 WASHINGTON STREET • SALEM. MASSACHUSETTS 01970 • 508/745'9595 • FAX 508/7449327 GROUND BREAKING October 24, 1995 Page 2 Mayor Neil J. Harrington praised the state and legislative leaders who helped to make this project a reality. "Senator Fred Berry and Representative Mike Ruane were instrumental in helping us gain access to state grant funds. Without their assistance, this road may never have been built and we may have lost Thermal Circuits to another community," said Mayor Harrington. "The City is also grateful for the assistance we received from the Massachusetts Office of Business Development and the cooperation of Secretary Mary Padula and her staff at EOCD." Public investment in this project will leverage significant private investment in Salem, as the City combines its ability to offer affordable, clean land with its ability to offer state and local tax benefits through its designation as one of the Commonwealth's Economic Target Areas (ETAs). Thermal Circuits was the first beneficiary of Salem's ETA designation. The company received a package of local and state tax benefits and purchased a four acre parcel in the industrial park. The incentive package keeps the company in a competitive position, according to Thermal Circuits President Anthony A. Klein. "We have grown from 60 employees to 85 employees in just over a year, with more growth ahead. To keep pace and continue to win new contracts, we had to expand our operation to a modern, one-story facility. At first it seemed impossible to build a new plant in Salem for roughly the same cost as an existing facility elsewhere. Mayor Harrington and his staff worked with us until we could find a solution that made sense for the company," said Klein. "In the past, companies have made a successful start in Salem, moved into the expansion phase and--unable to find suitable new space-- moved on to other communities. Now we can offer these companies room to grow and the financial incentives necessary to make Salem a competitive location for their businesses," said Mayor Harrington. "The City has the tools its needs to keep Salem companies here and attract outside firms as well. I look forward to several ground breaking events at Technology Way in the future." - 30- mc:\releases\techway.p r i CITY OF SALEM, MASSACHUSETTS NEIL J. HARRINGTON MAYOR TECHNOLOGY WAY INDUSTRIAL PARK FACT SHEET October 24, 1995 Project. The City of Salem, Thermal Circuits and Fafard Real Estate will develop a 29-acre industrial park on Swampscott Road. The park will house a new, 32,000 square foot manufacturing facility for Thermal Circuits. Funding: In order to complete the project, the City is using two sources of funds: • Community Development Action Grant funds from EOCD (State) • Community Development Block Grant funds (Federal) Funds Needed to Complete Project: $450,000 Size of Industrial Park: 29 acres Number of Parcels in Industrial Park: Six parcels (each approximately 5 acres) Land Owner. Fafard Real Estate & Development Corporation Potential Build-Out of Park: 200,000 - 300,000 square feet of industrial space Potential Tax Revenue: $230,000 when fully developed Potential Job Creation: Up to 1,000 full-time jobs when fully developed SALEM CITY HALL • 93 WASHINGTON STREET . SALEM. MASSACHUSETTS 01970 • 508/7459595 • FAX 508/7449327 TECHNOLOGY WAY INDUSTRIAL PARK FACTSHEET PAGE 2 OF 2 OCTOBER 24, 1995 First Tenant/Owner: Thermal Circuits,Jefferson Avenue, Salem, MA About Thermal Circuits: Since its initial move to Salem from Beverly 25 years ago, Thermal Circuits has grown and prospered as a vital member of Salem's business community. This innovative manufacturer of surface heaters and heater assemblies has now outgrown its Jefferson Avenue facility and will expand in Salem. Thermal Circuits'Size: Approximately 32,000 square feet are needed in the new facility. Thermal Circuits will continue to operate out of the existing Jefferson Avenue facility. Thermal Circuits' Investment in Facility: Approximately $1.2 million Number of Employees: 80 employees, with plans to add 15 new employees in the coming months and additional growth expected in coming years Other:- City used utilize its Economic Target Area (ETA) designation to provide development incentives in the form of tax reductions to Thermal Circuits. me\releases\thermfct.sht To: Karen Baptiste Fax#: (617) 727-8797 f AU M I LE Re: Thermal Circuits' Ground Breaking Event Date: October 17, 1995 Pages: 1 , including this cover sheet. Karen -- This is the agenda for speakers at the October 24 ground breaking event: • Mayor Neil J. Harrington -- opening remarks and emcee • Thermal Circuits President Anthony A. Klein • Howard Fafard of Fafard Real Estate and Development Corporation (land owner&developer) • Senator Fred Berry -- assisted with state grant • Representative Mike Ruane -- assisted with state grant • MOBD Executive Director John Regan --to discuss how incentives available through the EDIP helped to make this project possible • Secretary Mary Padula or designee from EOCD -- to discuss CDAG • Salem City Council President Sally Hayes Thanks for your help. I hope we see you at the ground breaking next Tuesday! From the desk of... Michelle Cammarata Assistant Director for Economic Development City of Salem Planning Department One Salem Green Salem,MA 01970 (508)745-9595,extension 311 Fax:(508)744-5918 i To: Tara Frier f ACSIMILE Fax#: (617) 727-5060 Re: Thermal Circuits/Technology Way Ground Breaking Event Date: October 23, 1995 Pages: 1 , including this cover sheet. Paula DiMichele asked me to forward this information about Tuesday's event in Salem. The ground breaking event will be held tomorrow at 2 p.m. at Technology Way, off Swampscott Road in Salem. The event celebrates both the development of a new facility for Thermal Circuits, a Salem manufacturer of heaters and heater assemblies, and the development of Technology Way. This is the agenda for speakers at the event: • Mayor Neil J. Harrington -- opening remarks and emcee • Thermal Circuits President Anthony A. Klein • Howard Fafard of Fafard Real Estate and Development • Senator Fred Berry -- assisted with state grant • Representative Mike Ruane -- assisted with state grant • MOBD Executive DirectorJohn Regan --to discuss how incentives available through the EDIP helped to make this project possible. • EOCD Secretary Mary Padula--to discuss the role of CDAG in promoting the project • Salem City Council President Sally Hayes Please call me if you have any questions about the event. Thank you. From the desk of... Michelle Cammarata Assistant Director for Economic Development City of Salem Planning Department One Salem Green Salem,MA 01970 (508)745-9595,extension 311 Fax:(508)744-5918 CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT c CRAIG L.WHEELER � 'L �m ONE SALEM GREEN City Planner yl 01970 a� too (508)745-9595 Ext.311 �,`���,pT Fax(508)740-0404 TO: Craig Beth✓ FROM: MichelleAf L RE: FINAL REPORT ON TECHNOLOGY WAY CDAG DATE: January 9, 1997 The Department of Housing and Community Development requires us to file a report on the Technology Way CDAG. They want a project narrative and a summary of expenses. (Please., see the attached letter.) This report was due at the end of November. I held on to it while we were trying to figure out our presentation of Technology Way expenditures for the GPR. (As you recall, it took a while to sort that out.) Later, I just forgot about this report. This week I called Arleen Tremblay asking for guidance on the content of the report. She has not called back yet. I drafted a report, which is attached. After Arleen provides more guidance we can finalize it and submit it. The computer file name is on the bottom of the report. All of the Thermal Circuits and Technology Way files are in my office on top of the green filing cabinets. Thanks. mc:\thermal\craigmem.wpd January 8, 1997 Ms. Arleen Tremblay CDAG Program Manager Department of Housing & Community Development 100 Cambridge Street Boston, MA 02202-0044 Dear Ms. Tremblay: I am writing to provide a final narrative report on the CDAG project for Technology Way. a In August 1995, the City of Salem was awarded a CDAG of$269,559 to purchase 700 linear feet of roadway into a vacant parcel of industrial land off Swampscott Road in Salem. (The road is now known as Technology Way.) With entitlement CDBG funds,the City constructed an additional 800 linear feet of roadway on the same site, completing the access way for the Salem Business Park at Technology Way. These CDBG funds will be repaid by the land owner as the remaining land is sold for development. PURPOSE OF PROJECT The project began to unfold during the summer of 1994, when representatives of Thermal Circuits informed the City of their need to expand, possibly outside of Salem. The cost of constructing a new facility in Salem, company officials found, was approximately $400,000 greater than the cost of purchasing and renovating an existing facility elsewhere. City officials located a suitable parcel for development on Swampscott Road, owned by Fafard Real Estate and Development Corporation. The parties agreed that-- if the City could obtain funding to build a road and infrastructure -- Fafard would offer four acres to Thermal Circuits at a subsidized purchase price and the company would locate at the site. This strategy closed $210,000 of the $400,000 gap. Salem's designation as a City-wide Economic Opportunity Area enabled City to close the gap entirely through property tax increment financing and state investment tax credits. At the time these negotiations began, Salem lacked environmentally clean, industrially zoned parcels available for development-- a major obstacle to economic growth. With the CDAG, the City was able to purchase a road and infrastructure from Fafard Real Estate and open 1 29 acres of land for development. The project not only found a home for a new Thermal Circuits plant, it created a small industrial park, enabling the City offer companies a place to expand or relocate. This clean, available land -- and the ability to offer tax incentives through its designation as an Economic Opportunity Area--makes Salem a more competitive location for business. The Salem Business Park off Technology Way consists of six development parcels. Thermal Circuits was the first company to locate in the park. Today, new construction is pending on one development parcel, while a long-time Salem company is considering expansion into the site as well. City officials estimate that the complete development of this industrial park will create 829 jobs and generate more than $240,000 in property tax revenues annually. ECONOMIC IMPACT The economic impact of this project may be summarized as follows: • This project retained Thermal Circuits, with 85 jobs and plans to create 60 more over five years • After all local property tax abatements expire, Thermal Circuits' property will generate $46, 000 per year in property tax revenues. • This project has enabled the City to offer environmentally clean, industrially zoned land to firms interested expanding within or relocating to Salem, creating a small industrial park. • The Chairman of Salem's Board of Assessors estimates that development of all six industrial parcels will generate $260,000 in property tax revenues annually. • The full development of an industrial park has the potential to create 829 jobs. • The project creates opportunity for low to moderate income persons. Thermal Circuits provides high-quality, stable jobs for local residents of diverse levels of skill, income and ethnicity. Approximately 22 percent of Thermal Circuits' employees are members of minority groups. The average length of service at the company is 14 years, and the average wage is $28,000. Based on its current employment profile (and the company's practice of advertising new factory and clerical jobs only in the Salem Evening News), Thermal Circuits estimates that 80 percent of its new hires will be from Salem. More than 41 percent of Salem-residents are low income persons. 2 SUMMARY OF EXPENSES OTHER PUBLIC LINE ITEM ACTIVITY CDAG PRIVATE INVESTMENT TOTAL (700 linear (800 linear feet of road) feet of road) 1. Land Acquisition 2 acres at $130,000 $65,000 per acre 2. Clearance & Demolition $ 65,927 $ 75,345 $141,273 3. Street/Site Improvements $119,878 $137,004 $256,882 4. Water& Sewer Facilities $51,227 $ 58,545 $109,773 5. Professional Fees (3%) $ 7,111 $ 8,126 $ 15,238 6. Cost Subtotal $244,144 $279,071 $523,165 a 7. Contingencies (10%) $ 24,414 $ 27,902 $ 52,317 8. Total Project Cost $268,559 130,000' $306,923 $575,482 The City of Salem has successfully used its CDAG award to purchase a road and infrastructure and access land for industrial and commercial development. Thermal Circuits opened the doors of its $1.2 million facility in April 1996. Today, Fafard Real Estate is actively marketing the remaining parcels at Technology Way. City officials are optimistic that we will see high quality development at the site. If you have any questions about the content of this report or if you require more information, please contact me or Assistance City Planner Elizabeth Debski at (508) 745-9595 extension 311. Sincerely, Craig L.Wheeler City Planner mc:\thermal\cdagrep.wpd The cost of land acquisition is noted here for informational purposes only. It was not part of the CDAG project budget and was not included in Salem's grant request. 3 DEPARTMENT OF HOUSING & COMMUNITY NUV I ,1 1996 DEVELOPMENT _ - William F. Well, Governor V� IAr'en Paul Cellucci,Lt. Governor V Jane Wallis Gumble, Director November 13, 1996 William Luster City Planner 1 Salem Green Salem, MA 01970 Dear Mr. Luster, s ' The Department of Housing and Community and Development (formerly EOCD) provided the City of Salem with a Community Development Action Grant (CDAG) for the Swampscott Road project. Our records indicate that the contract for this project ends on January 1, 1997, however all CDAG funds have been expended at this time. We are requesting that, in order to finalize our files and to fully close this project, you submit a final narrative report on the project, along with a summary of expenses from the CDAG grant funds and, additionally, any other funding sources contributing to the project. We need to receive this final report no later than November 29, 1996. The final document due under the contractual obligation between the Department of Housing and Community Development and the City of Salem is the completion of a Single Project Audit. DHCD is in the process of completing the procurement process for a certified Public Accounting Firm to complete all Single Project Audits for the CDAG program. We expect to have a firm named and to begin the audit process in January of 1997. This audit will be performed at no cost to you. Please maintain all records regarding CDAG project for this audit. You will be contacted by DHCD and the audit firm after January 1, 1997 regarding scheduling dates for this audit. Please feel free to call me at (617) 727-7765 x 458 or Deirdre Walsh at (617) 727-7765 x 456 if you have any questions or concerns regarding these requirements. Sincerely, '� y Arlee& tnblay CDAG Program Manager 100 Cambridge Street Boston,Massachusetts 02202-0044 CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT a WILLIAM E. LUSTER ONE SALEM GREEN City Planner 01970 (508) 745-9595, EXT. 311 FAX (508) 744-5918 February 28, 1996 Timothy Sheehan, Manager Community Development Action Grant Program Executive Office of Communities & Development 100 Cambridge St. Boston, MA 02202-0044 Dear Mr. Sheehan: As outlined in our CDAG agreement, the City of Salem has purchased a road and infrastructure, Technology Way, from Fafard Real Estate and Development. Technology Way will serve Salem's newest industrial park and will be the new home of Thermal Circuits, Inc. The City has purchased Technology Way for $450,000 using CDBG and UDAG funds. Now we seek reimbursement with a Community Development Action Grant of $268,559. The remaining $181,441 of the purchase price of the road will be repaid by Fafard Real Estate as a betterment fee as the company sells and develops the remaining land. Enclosed you will find: a statement of sources of uses; invoices; canceled checks; and a copy of the deed for Technology Way. If you require additional information, please contact Michelle Cammarata. Thank you for your continued cooperation in making the development of Technology Way possible. i S' cerely illia . Luster City Pla er mcAcdaginv.wpd R r MASSACHUSETTS OUITCLAM OECD BY C PINION (9HOfST FORM) BB< 1 1 IESSEX SOUTH REGISTRY DISTRICT; Fafard Real Estate and Development Corp. 4 a corporation duly established under the laws of the Commonwealth of::•?assachusetts I 290..Eliot Street, Ashland, Midk@Vser,3 and having its usual place ofbusiness at I -- ea assachusetts -iECIEVED 0' LOC for considera[ion paid, and in full consideration of . Four Hundred Fifty T ousan4U1�� lars 4S4t50 000.00) l -,--1STRATION SK PI; __J 9 anst6 The City of Salem, Massachusetts a municipal Corporation of 93 Washington Street, Salem, MA 01970 with quitrltttlu ruurnttnfs the land in Salem, Essex County, Massachusetts, described as follows: (Description and encumbrances,if any) lit tuttnr.ss w4rrnif, thesaid Fafard Real Estate and Development Corp. has caused its corporate seal to be hereto affixed and these presents to be signed, acknowledged and delivered in its name and behalf by Howard A. Fafard its President and Treasurer igx hereto duly authorized, this a q { V) day of September in the year one thousand nine hundred and ninety—five Sig fansealed ipresence o $ P Fafard Real Estate and Development Corp. . . . ....... I/ by. Howard A. Fafard, President and Treasurer �ETe LnuunanwettITlt of t�lttlssttrl1usefTs Middlesex SS. September 291 19 95 Then personally appeared the above named Howard A. Fafard, President and Treasurer and acknowledged the foregoing instrument to be the free act and deed of the Fafard Real Estate and Development Corp. before me ................. .................I....... Nntary "/u 1't• --iu.vicc of Iltc I care Qty conunissiun expires ...................... ...... . ........ 19 ' CHAPTER 183 SEC. 6 AS AMENDED BY CHAPTER 197 OF 1969 Every deed presented for record shall contain or have endorsed upon it the full name, residence and post office address of the grantee and a recital of the amount of the full consideration thereof in dollars or the nature of the other nlasideration therefor, if not dclivercd for a specific monetary sum. The full consideration shall mean the total price for the conveyance wi!hour deduction for any liens ar enen;nhMinc, assumed by the grantee or remaining thercon. All such a,dnrsemenis and recitals shall be roi-r•kd as put of the decd. Failure Io .....I l'-will, this section shall not alfect the validity of aay dmf. No register of decvls shall accept a deed for rertsrding unless it i. ill to n;•l i:!t the requirements of this section. EXHIBIT"A" That certain parcel of land in Salem, Essex County, Massachusetts, located on Technology Way and shown as Lot 723 and as "Technology Way" shown on a plan of land entitled: Subdivision of Lot 698 Land Court Case No. 11802 Definitive Plan of Land in Salem, MA Owner: Fafard Real Estate and Development Corp., 290 Eliot Street, Ashland, MA 01721, Prepared by: Fafard Real Estate and Development Corp., 290 Eliot Street, Ashland, MA 01721, Date: 24 March 1995, Scale: 1" == 1�0�0�' recorded with the Land Court Engineering Department on Z-AL--, 1995 as Plan No. 11802 - 54. Grantor, its successors and assigns, reserves the right and easement, is common with those lawfully entitled thereto, to use Lot 723, "Technology Way", as shown on said plan, for all purposes as streets, roads and ways are commonly used in the Commonwealth of Massachusetts. The lot herein conveyed is subject to easements, restrictions and rights of way of record, if any, as the same are now in force and applicable. The lot herein conveyed is not all or substantially all of the Grantor's assets in the Commonwealth of Massachusetts. For title see Certifcate 62422 Essex South District of the Land Court. forms/Sal"723 LAND �p RT ��.T,,O,N, The land herein`� Fb'e shown on our approved plan to iollow as OCT 255 1'995,'r�-f1ee Plan ( ,NIED AS TO DESiVTIDN OKY) Louis A Mc»re. LTJW Jl v March 6, 1995 MEMORANDUM OF UNDERSTANDING The City of Salem has determined that the retention of the manufacturer Thermal Circuits, Inc. and the development of a modern facility for the company will produce substantial benefits for the community. City officials will work with representatives of Thermal Circuits to enable the company to purchase vacant land off of 29 Swampscott Road from the land owner, Fafard Real Estate & Development Corp. The City will ensure construction of a road and infrastructure to serve the new Thermal Circuits facility and will work with Fafard Real Estate to construct a road and infrastructure to serve the remaining parcels of land in the 29-acre area. These actions shall be implemented in accordance with the following stipulations: STIPULATIONS The City of Salem The City of Salem shall ensure that the following measures are carried out: 1. The City will obtain a grant of approximately $250,000 for the construction of a road and infrastructure from Swampscott Road in Salem to the site of the new Thermal Circuits facility, a site known as Lot E. (This road will effectively serve three parcels: Lots D, E and F.) The source of the grant is the Community Development Action Grant(CDAG) Program, administered by the Commonwealth's Executive Office of Communities and Development(EOCD). Should the release of these funds be delayed for any reason, the City will provide the funding through the Community Development Block Grant Program (CDBG) for infrastructure construction and will be reimbursed upon receipt of the state grant. 1 2. The City will make a loan not to exceed $200,000 to Fafard Real Estate & Development Corporation to continue construction of the road in order to serve the remaining parcels of land: Lots A, B, and C. The exact loan amount is subject to verification of the cost of the road. 3. The City will make an interest free, deferred loan in the amount of$50,000 to Thermal Circuits to help offset the cost of the purchase of the land. Such loan will be repaid by Thermal Circuits, Inc. upon the sale of its Jefferson Ave. facility. 4. The City will designate the entire 29-acre area, which includes Lot E, as an Economic Opportunity Area. This designation, when approved by the Commonwealth's Economic Assistance Coordinating Council, allows companies locating or expanding within this area to apply for state and local tax benefits. 5. The City will designate Thermal Circuits as a Certified Project within an Economic Opportunity Area. This designation, when approved by the Commonwealth's Economic Assistance Coordinating Council, does qualify Thermal Circuits for state and local property tax benefits. 6. The City will implement a property tax increment financing plan for Thermal Circuits to provide tax relief for the company. This TIF plan is outlined in detail in Exhibit 1. 7. At the end of two years, the City will fund a reuse analysis of the existing Thermal Circuits facility at 4 Jefferson Avenue. This study will determine the highest and best use of the property and will design a marketing strategy for the disposition of the site. 8. City officials will work with members of City boards to expedite the permitting process, from the development of the road to construction of Thermal Circuits' new facility. 9. City officials will obtain for Thermal Circuits a one-year, free membership to the Salem Partnership, an organization that will help to facilitate the reuse of the company's Jefferson Avenue facility. Fafard Real Estate and Development Corporation Fafard Real Estate and Development Corporation shall ensure that the following measures are carried out: 1. Fafard Real Estate will prepare all necessary site plans for approval of this site as a buildable lot as soon as possible for submission to the Planning Board. 2 2. Fafard Real Estate will work closely with the City to provide the Planning Board with all necessary information to obtain all necessary permits so that a building permit for the facility can be obtained. 3. Fafard Real Estate will prepare an agreement for review by Thermal Circuits regarding the purchase of four acres of Lot E for the cost of$50,000. This parcel is valued at approximately $260,000. As a part of this agreement, Fafard Real Estate agrees to complete the grading relative to Lot E for the sum of$50,000. Lot to be finish graded for 35,000 s.f. building and appropriate parking areas according to the Zoning Ordinances of the City of Salem. 4. Fafard Real Estate will install -- from the access road to the Thermal Circuits plant-- water, sewerage and drainage facilities for the sum of$60,000. 5. In addition to grading, Fafard Real Estate has quoted the following work based on a 35,000 s.f. building as indicated below. Thermal Circuits may or may not award any or all of this work to Fafard Real Estate. ITEM COST Paving $45,260 Parking lot lights 8,000 Landscaping 15,000 Contingency (less real estate) 10%of cost of work done Engineering (less real estate) 4% of cost of work done Supervision To be negotiated based on the amount of work done 6. Fafard Real Estate will submit to the Salem Planning Department the information required for the City to claim a Community Development Action Grant. 7. Fafard Real Estate will repay the City's $200,000 loan as the remaining 25 acres are sold,. The payment amount is $8,000 per acre. Thermal Circuits, Inc. 3 f Thermal Circuits, Inc. shall ensure that the following measures are carried out: 1. Thermal Circuits will facilitate meetings of its consultants and architects with the staff of the Salem Planning Department to ensure a smooth permitting process. 2. Thermal Circuits, its consultants and architects will submit building plans to the Salem Planning Department as soon as possible in order to expedite the permitting process. 3. Thermal Circuits will expedite meetings with its representatives and Fafard Real Estate so that the permitting process can proceed quickly. 4. Thermal Circuits will submit to the Salem Planning Department the information required for designation as a Certified Project by the Commonwealth's Economic Assistance Coordinating Council. 5. Thermal Circuits will submit to the Salem Planning Department the information required for the City to obtain a Community Development Action Grant. 6. Upon the sale of its Jefferson Avenue facility, Thermal Circuits will repay to the City its $50,000 loan. Other: 1. The transactions described herein are subject to the satisfactory results of a 2 1 E evaluation conducted at Lot E. 2. This agreement is not legally binding on the parties. Signed this_day of March, 1995. Neil J. Harrington, Mayor Anthony A. Klein, President Thermal Circuits, Inc. 4 r Howard Fafard Fafard Real Estate 5 r March 10, 1995 Salem Economic Opportunity Area SECTION 3 PROJECT CERTIFICATION Instructions: This application form should be completed by businesses seeking project certification. Businesses may be eligible for project certification if the business controls a facility which is located or which intends to locate or expand its operations in an EOA. The business must obtain municipal approval for the project prior to submitting the application form to the SACC. The application should be typed on 8 1/2 x 11 inch paper. The pages should be indexed and numbered. Please submit ten (10) copies of the completed application and ten (10) copies of all other required application materials to Karen S. Baptiste, Director of Economic Assistance, Massachusetts Office of Business Development, One Ashburton Place, Room 2101, Boston, MA 02108. PART A: APPLICATION INFORMATION 1. Name and address of business submitting application: Thermal Circuits, Inc. 4 Jefferson Avenue Salem, MA 01970 2. Name and address of project (if different from business): This project involves the construction of a new manufacturing facility for Thermal Circuits at 58 Swampscott Road in Salem. 3. Location of ETA: Beverly & Salem Regional ETA 4. Location of EOA: Salem EOA 5. Nature and Purpose of Project: Nature of Project: Thermal Circuits, a Salem manufacturer of heaters and heater assemblies, intends to purchase a four-acre development parcel and construct a new, 26,000 square foot manufacturing facility in the Salem Economic Opportunity Area in Salem. The building will be constructed to allow for future expansion. [According to the Salem Zoning Ordinance, the maximum allowable foot print (ground floor) is 1 78,408 square feet. The maximum height is 50 feet. Thus, depending on the first floor height, three to four stories could be added. If four stories are constructed, the maximum allowable building size would be 313,632 square feet (4 floors, each 78,408 square feet).] The company will continue to operate its current facility at Jefferson Avenue for at least two years, possibly longer. Purpose of Project: For Thermal Circuits, the purpose of this project is to increase its manufacturing capability. The company must expand its operations to continue to serve its customers and grow. For the City, the purposes of this project are: to retain a growing manufacturer in the City; save 81 jobs and promote the opportunity to generate new jobs; expand the City's tax base and begin the development of an industrial park off of Swampscott Road. The industrial park— approximately 29 acres of undeveloped, industrially-zoned land— consists of six development parcels. Thermal Circuits will be the first company to locate in the park. Construction of a road and infrastructure to serve the entire area will accompany development of Thermal Circuits' new facility. This infrastructure development — to be paid for with federal Community Development Block Grant funds and with a Community Development Action Grant from the Executive Office of Communities and Development — will open the entire area for development. PART B: MANDATORY REQUIREMENTS 1. Is the proposed project an expansion of an existing business that is currently located in the EOA? Yes. Thermal Circuits currently operates a facility at 4 Jefferson Avenue in Salem. The company will construct a new plant at Swampscott Road in Salem but will continue to operate its Jefferson Avenue facility for at least two years after construction of the new plant 2. Is the proposed project a new facility to be located within an EOA after the date of this application? Yes. (a) Is this the applicant business'first facility in the Commonwealth? No. (b) How many new permanent full-time employees will be employed by the applicant business at the new facility? Approximately 12 new permanent, full-time employees will be hired in the firsi year and assigned to the new plant. Thereafter, approximately nine to 12 new employees per year will be hired and 2 assigned to the new facility. (c) (i) Will the project result in the replacement or relocation of any permanent,full- time employees who work in existing facilities located in the Commonwealth? If yes, where are the facilities located and how many permanent full-time employees will be replaced or relocated? When the new facility is complete, approximately 60 of Thermal Circuits' 81 current employees will be assigned to the new plant. Approximately 21 current employees will remain in the facility at 4 Jefferson Avenue in Salem. We anticipate that 12 new employees will be hired and assigned to the new facility in the first year. Thereafter, approximately nine to 12 new employees per year will be hired and assigned to the new facility. (ii)Provide documentation demonstrating that you are not seeking project certification or relocation for any portion of the project that is attributable to the replacement or relocation of permanent full-time employees of an existing facility already located in the Commonwealth. This project allows for the continued growth of Thermal Circuits and is more than simply the relocation of employees from one facility to another. As the answer to question cl shows, some employees will be reassigned to the new facility. However, this project generates jobs as well. To meet current orders and obligations, Thermal Circuits must keep both plants in operation. In time, it will be more efficient to move all operations to the new, modern facility off of Swampscott Road. The new facility will be built to allow for expansion. We expect that in years to come, Thermal Circuits will expand the building size beyond 26,000 square feet. The reassignment of employees from the existing plant to our new facility will be smooth and convenient. The new facility is located just 1.5 miles from the Jefferson Avenue plant. Many of the employees who walk to work will continue to be able to do so. Those who rely on public transportation will also continue to be served. It is important to note that the City of Salem has agreed to fund a reuse study for the existing Jefferson Avenue facility. This study will examine redevelopment options for the site. Both the City of Salem and Thermal Circuits are committed to pursuing a productive reuse of the Jefferson Avenue facility when Thermal Circuits vacates the building. 3. Does the proposed project involve the renovation and reuse of an abandoned building? No. 3 4. Local Employment - How many residents of the ETA are expected to be employed in a new permanent full-time jobs at the project? What actions will you take to recruit employees from among residents of the ETA? Thermal Circuits expects that most (perhaps 80%) of its new hires will be from Salem. The company plans to advertise only in the Salem Evening News. 5. Affirmative Action - describe your affirmative action goals and recruitment techniques that will be used to fill the newly created jobs. See the attached sheet for Thermal Circuits' hiring policy. The company currently employs 18 minorities out of 81 total employees. 6. Agreement Between the Business and Area banks - If the business has entered into any agreement with area banking institutions relating to the business' intention to deposit funds in these banks and the banks' intentions to commit a portion of such deposits to fund loans to businesses in the EOA, pursuant to the Massachusetts Capital Access Program, established by M.G.L. c. 23A, Section 57, provide documentation of such agreement or agreements. No such agreement exists. 7. Economic Benefits of Project Certification - Provide a description of the benefits that are anticipated for the business and the project, if the project is certified. Benefits to Thermal Circuits: • The company will receive approximately $232,000 in local property tax benefits over 10 years. • The construction of a $975,000 plant will entitle the company to $48,750 in state investment tax credits. • The company will receive additional state investment tax credits as a result of investment in equipment. • Construction of a new facility will enable Thermal Circuits to increase sales by 46% by 1998. • The City of Salem has agreed to finance a study of the reuse of the Jefferson Avenue facility. This study will help the company to identify parties interested in redeveloping the building and enhance the company's ability to sell this real estate. 4 r Benefits to the City of Salem: • This project retains 81 jobs in Salem and adds 40 more. • The City has agreed to a 10-year tax increment financing plan with Thermal Circuits. Nevertheless, this project immediately generates $39,000 in additional tax revenue, since the tax bills increase for the parcels surrounding the Thermal Circuits plant. • Thermal Circuits will maintain operations at its existing Jefferson Avenue facility for at least two ,years, continuing to generate revenue for the City. • After all local property tax abatements expire, this project will generate $76,456 per year in property tax revenues. • Thermal Circuits plans to maintain its Jefferson Avenue facility for at least two years, providing tax revenue for the City. • Prior to Thermal Circuits' move of all operations to its new facility, the City will conduct a reuse study to determine the most productive redevelopment plan for the Jefferson Avenue facility, taking steps to ensure that the building does not remain vacant for long. 8. Likelihood of Increasing Employment Opportunities for Residents of the Project ETA - Provide any information, documentation, or studies which demonstrate that: (a) the business has the intention and capacity to achieve the anticipated level of new permanent full-time jobs for residents of the project area. (b) taking into consideration existing economic conditions, the proposed project is likely to succeed in creating and retaining the anticipated level of new permanent full- time jobs for residents of the project area. Thermal Circuits is in the third year of an original business plan. This plan has been revised (upward) on two occasions during this time. Forecasts have been met or exceeded each year. This record of fast growth suggests that the company has both the intention and capacity to continue to fulfill our sales and employment forecasts. The company expects that 80 percent (possibly more) of these jobs will go to Salem residents. 5 PART C: SPECIAL REQUIREMENTS FOR REAL ESTATE PROJECTS This project is not a real estate project. PART D: MUNICIPAL APPROVAL 1. Documentation of Municipal Approval -- Attached are resolutions passed by the Salem City Council endorsing this application for project certification and the Tax Increment Financing plan negotiated by the City and Thermal Circuits. 2. Duration of Project Certification -- The City of Salem approves this project for 10 years, as the attached City Council resolutions show. PART E: SUPPLEMENTAL INFORMATION 1. Name(s) of the business(es) intending to take advantage of state tax incentives Business Name: Thermal Circuits, Inc. Federal Employer Identification #: 042282863 Address: 4 Jefferson Avenue, Salem, MA 01970 Phone: (508) 745-1662 Fax: (508) 741-3420 Contact Person: Anthony A. Klein, President Type of organization (check that which applies): Corporation _X_For profit _S Corp _Non-profit Business Trust _Partnership _ General Partnership Limited Partnership Individual Anticipated Level of Interest: Thermal Circuits is committed to locating in the industrial park to be developed off of Swampscott Road in the Salem EOA. The company has hired architects to draw plans for the new facility and has begun to work with the land owner and the City of Salem to expedite the development and permitting processes. 7 2. A -If a corporation,please list the names and addresses of the officers and directors of said corporation, and any person and/or corporation with a financial interest of five percent or greater in said corporation: The following are officers and directors and owners of the company: David M. Abbott, Chairman 72 Central Street Andover, MA 01810 Anthony A. Klein, President 35 Lexington Circle Swampscott, MA 01907 Jon J.. Kello , Treasurer 27 Ledge Rock Road Concord, MA 01742 3. Please provide the name, address, phone number and contact person for any organization which may own or control the applicant organization, or who are affiliated with the applicant business organization. Not applicable. 4. Certificate of Good Standing- Please provide proof of good tax standing in the Commonwealth of Massachusetts via a Certificate of Good Standing, which is a letter issued by the Massachusetts Department of Revenue. To obtain a copy of a Certificate of Good Standing Please see Attachment l of this application. We filed our request for a Certificate of Good Standing with the Department of Revenue on February 23, 1995. 8 �. 08 8/94 12:91 /27413420 THERMAL CIRCUITS W1001/003 THERMAL CIRCUITS specialising In[De Oaatgn,engineering,and pro0uetlen or surface nectars.Domtar aaaemDtlee,and intrared panel entiRen August 05, 1994 Fax# 1-508-744-5918 City Of Salem One Salem Green Salem, Ma 10970 Attn: Michelle Cammarata Economic Development Planner Dear Ms. Cammarata: Thank you for taking the time last Thursday to visit our company and discuss our relocation program. It is comforting to know that you and Mr. Luster will be giving Thermal Circuits' needs your highest priority in the weeks ahead. Based on your follow-up Fax, you understand the urgency and importance of moving ahead as expeditiously as possible. Sense our Initial move from Beverly 25 years ago, our relationship with the city of Salem has been a good one. From the time we made the decision one year ago to relocate once again, we have not been shy at stating our desire to remain in Salem. However, as we have come to realize, there is a significant cost to remaining in Salem that has brought us to a very important point in the strategic process. As you will see below, there is a substantial difference in cost between building a new facility (our only option for Salem), and acquiring an existing one including upgrade and buildout expense. Unfortunately, Our cast problem compounds with the issue of what to do with our existing plant. We owe$265,000. The prospect of finding a buyer for anywhere near this amount is poor at best. As we advised, our 20 July meeting with Mr. Fafard went well. He appears genuinely interested in working with Thermal Circuits on this relocation project. We provide you his quotation to develop property on Swampscott Road and comparison to the cost of procuring an existing facility: Thernvw Circuli:inc..A Jefferson Avenue,Salem,MA 01970-2976 Telephone 600-608-HEAT(4928)Fax 508-741-3420 08/08/04 12:32 /27413420 THERMAL CIRCUITS 0002/003 City of Salem,pg 2 August 05. 1994 Swampscott Road Land Acquisition and Site Work: Item Sc49 Real Estate $65,000/acre x 4 acres= 260,000 Grading 50,000 Paving 45,260 Utilities(W, S. &D) 58,350 L.Ping Lot Lights 8,000 Contingency(less real estate) 10% 17,600 ,.Engineering ( ) 4% 7,000 Supervision 10,000 456,210 New Building Construction: $37.50/square foot x 30,000 = 1,125,000 (not including tum-key electrical) Tum-key Electrical Build-Out 45,000 Grand Total 1,626,210 Comparison: Purchase of Existing Facility(Outside Salem, 32,000 sq. ft.)Est. 900,000 N Upgrade/Build-Out 240,000 E' 1,140,000 Premium to Build New Facility ty Salem e 86 2�10 Thermal Circuits Inc..4 Jefferson Avenue.Salem.MA01970-2976 Taleonone 600-606-HEAT(4326)Fax 500-741-3420 08/08/94 12:33 '07413420 THERMAL CIRCUITS 10003/003 City of Salem, pg 3 August 5, 1994 It is vital that Thermal Circuits be in a modem, one story, 30,000 square foot facility with room for expansion, no later than July 01, 1995. In fact, all indications are we will be impeding our ability to meet new business opportunities as early as January. Concurrently, we are loosing business(estimated at$500.000 in the past two years), as a result of some customers' perception that we can not produce the volume or the quality level they require in our existing four story, tum-of-the-century mill building.Additionally, our operating costs are projected to be 11-13% lower in a one story facility. In this day of tremendous competition, it is crucial that we realize this saving and pass it on to our customers, customers who not only demand the highest of quality but also demand year over year price decreases. Our existing business plan calls for 15-18% growth each year for the next five years. This translates to approximately 9-12 new factory level jobs per year with additional overhead and administrative positions. Our New Technology Development effort has recently spawned three / products capable of producing sales beyond forecast, including exports, which presently account for about 23% of our total business. Investment in new and updated capital equipment and process improvement is targeted at$150,000 over the next two years. At present, Thermal Circuits has 45 full time and 18 part time employees. Our a7foundereD:i full time employee eams$28,000 an 14 arr em pa Gpate regularly in training programs and have recently compleursn /deT and Cycle Time Management. This program was administered b its ' c Equ�pment Corporation at their training and educational cen in" n Maynard We are presently —Z0.°k the wa t ora certification, at a cost of$42, Is s tegic necessity if we are to compete in the global marketplace. OD o e the first in our industry so registered. We also hold numerous internal process and supervisory training programs, geared towards promoting employee involvement in goal setting and problem solving. We appreciate your interest and involvement in this matter and applaud Mr. Luster's-Salem's recent efforts. If you should require information in addition to what we have provided herewith, please do not hesitate to ask. Yours very truly, THERMAL CIRCUITS INC., Jidho4ny . Klein ent cc: William E. Luster David M-Abbot John R. Serafini Sr. John H. Kellogg Thermal Cireulta Ino.,4 Jerremon Avenue,Salem,MA 01970-2976 Telephone 800-808-HEAT(4328)Fax 508-741-3420 THERMAL CIRCUITS INC. FORECAST WITH NEW FACILITY Mar 3,1995 1992 1993 1994 '95 CURRENT(JAN) '95 BAL 1995 TOTAL 1996 1997 1998 ACTUAL % ACTUAL % ACTUAL % ACTUAL % FORECAST % FORECAST % FORECAST % FORECAST % FORECAST % ( I REVENUE 3.62],48] 100.0 4,195.292 100.0 4,438,951 100.0 441,624 100.0 4,693,376 100.0 5,135,000 1000 5,750,000 100.0 6,500,OG0 100. 7.485.000 100.0 100.0 8.6 91.4 100.0 COST of SALES MATERIALS 1,006,840 27.8 1,204,615 287 1,152,884 26.0 111,038 25.1 1,203,522 25.6 1,314,560 25.6 1,466,250 25.5 1,657,500 25.5 1,893.705 25.3 DIRECT LABOR 650.353 17.9 700,020 167 610.500 18.3 85.146 19.3 875,099 18.6 960245 187 1,040,750 18.1 1,170,000 180 1,339,815 19.9 FACTORY OVERHEAD 1,12],]40 31.1 1,0]14]1 25.5 1,198,]5] 27.0 101,583 23.0 1,299,317 27.7 1,400,900 21.3 1,648,145 28.7 1,83],5]1 28.3 1.994.312 26.6 TOTAL COST of SALES 2784,933 76.8 2,976,106 70.9 3,162,149 71.2 297,767 67.4 3,3]],938 720 3,6]5,]05 71.6 4,155.145 72.3 4,665,071 71.8 5,227,832 69.8 GROSS EARNINGS 842,554 23.2 1,219,186 29.1 1,276.802 28.8 143,857 32.6 1,315,438 28.0 1,459295 28.4 1,594.855 277 1.834,929 28.2 2257,168 30.2 SG&A 627,00] 17.3 829,994 19.8 961,843 217 83,742 19.0 986,599 21.0 1.068,341 20.8 1,184,500 206 1,293,500 189 1444,605 19.3 INCOME FROM OPERATIONS 215.547 5.9 389,192 9.3 314.959 7.1 60.115 13.6 330,839 7.0 390,954 7.6 410,355 7.1 541,429 8.3 812,563 10.9 OTHER INCOME(EXPENSES) MISCELLANEOUS INCOME(EXPENSE) 0 0.0 0 0.0 25 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 00 GAIN(LOSS)ON FIXED ASSETS 0 00 100 0.0 0 00 0 0.0 0 0.0 0 0.0 0 0.0 0 00 0.0 INTEREST EXPENSE (32,171) .09 (18,128) -0.4 (35,836) -0.8 (3,708) -0.8 (36.292) -08 (40,000) -08 (45,000) -0.8 (50,000) -0.8 (55,W0) -07 DEPRECIATION(ALL) (86,250) -2.4 (103.652) -25 (109,190) -2.5 (6,611) -1.5 (82,221) -1.8 (88,832) -1.7 (103,208) -1.8 (113,750) -1.8 (125,000) -1.7 TOTAL OTHER INCOME(EXPENSE) (118,621) 3.3 (121,680) -2.9 (145,001) -3.3 (10.319) -2.3 (118,613) -2.5 (128,W2) -2.5 (148,208) -2.6 (163,760) -2.6 (1&0.00) -24 INCOME(LOSS)BEFORE --_____ _______________ _________.____= '________._____ ---- _____ _________ STOCK PURCHASE&TAXES 97.126 27 267,512 6.4 169,958 3.8 49,796 11.3 212,326 4.5 262,122 5.1 262.147 4.6 377,679 5.8 632,563 8.5 ----------____ _______________ _________.____= .________._____ _________------ _______________ _________._____ _________-_____ ------ TPURCHASE and ASS and ASSOCIATED COSTS 0 00 152.500 36 187,651 42 0 0.0 176,000 31 174.000 3.4 160,000 2.8 160,000 2.5 160,000 2.1 INCOME(LOSS)BEFORE TAXES 97,126 27 115,012 27 (17,693) 44 49,796 11.3 38.326 0.8 88.122 17 102,147 1.8 217,679 3.3 472,563 6.3 PROVISION FOR INCOME TAX FEDERAL INCOME TAX2],900 0.8 28,012 0.7 3,650 0.1 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 INC MASSACHUSETTS INCOME TAX 6,500 0.2 16,911 0.4 9.680 0.2 0 00 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 I I TOTAL PROVISION FOR TAXES 34,400 0.9 44,923 1.1 13,330 03 0 0.0 0 0.0 0 0.0 0 00 0 0.0 0 0.0 NET INCOME(LOSS) 62,726 17 70,089 17 (31,023) -07 49,796 113 38,326 0.8 0.122 1.7 102,147 1.8 21],6]9 3.3 472,563 6.3 CASH FLOWS STOCK PURCHASE 0 100,000 100000 0 100000 100000 100,000 100000 100000 DEPRECIATION 86,250 103,652 109.190 6.611 82,221 88832 103,208 113,750 125.000 TOTAL 148,976 273,741 1]8.16] 56,407 220,547 276,964 305,355 431,429 697.563 THERMAL CIRCUITS, INC. Financial Statements at December 31st, 1994 *Does not include accountants letters or statements COW THERMAL CIRCUITS, INC. BALANCE SHEET DECEMBER 31, 1944 :O CURRENT ASSETS PETTY CASH no.no CASH IN BANE 28,104.31 ACCOUNT!] REOF1VADLE 897,4M. 10 ALLOW. D0UF3TFUL ACCOUN,'S p!so An) OTHER RECEIVABLES 4,853.30 INVENTORY 340,134.16 PREPAID EXPENSES 2S,77S.S1 'T1 aRi4i'1 iT ACppc,)yI' )KO IU-Ai. .N � FIXED AWA. BII I LDIN3 IMM1[NEMFNTe, 8,844.S9 ACCUM UE"F; °I ';_"Ialli .MPi< (6i ' .121 �'„ n .n r n ir. . i n? mac- P+E„Y s ::�I,,.M,.��T 8•I,, •,. .4It ACCU� r" 1.0:i 6 ril,r, (un Key.a7 VEHICLc 2q mo Ao A;;c7„M P: JTf. ! F OFFICE FL'RNIP RE i '-iXTURES 7s °45..'. AC(',UM DEPR - OFFICE. FURN u FIX (60,446.01) CAPITAL LEASED LQUIPMENT it lot 5il ACCUM OEM - CAP LEASED ':QW 1 ,201An; TO'AL, : ixFO OOFTc 338,36W OTHER ASSET:; DEPOSITS ti 'S4 CVT; DFEIC_R L , INt, 6,6.on ;.DAN ACQ COOS, NE,” '100.0o MIAL 5,810.0 OTA.. ;wpE 9? 59 TOTAL ,. . . I,6.,•,0., .46 ca��,WeA)49� THERMAL. CIRCUIT` INC. BALANCE SHEET Al, DECEMBER 11, 1394 LIABILITIES & EQUITY CURRENT LIABILITIES SHAWMUT-LINE OF CRFOIT-THERMAL 320,000.00 CURRENT PORTION L/T DEBTS 7,200.00 ACCOUNTS PAYABLE J41,3i4.55 OTHER PAYABLES 315.79 ACCRUED & WITHHELD P/R TAXES 36,102;11 ACCI�SEC PAYROLL 2t 13160 ACCRUED '.1ACA110N 3902.04 ACCRUED INTEREST PAYABLE DMA 5,2?1 .00 ACCRUED INTEREST PAYABLE 3HK J,109. 15 AGMUED COMMMSIONS 27168.1; 'OTAI. ;,JRR;NT LIAB:I.I1,E5 BOA,S67.88 LONG TERM DEBT NOTES PAYABLE-STOCKHOLDERS 90,000.00 001:..','TN :AP!1,AL ._EAt;E-40PELCO 1 E An lo LESS CHREIT PORTION LTC 200.i0? MiAL iLONt3 TERM; DFP" TO'Ai. .WIL TI':I2. - 90L isr 88 EQUfTY CAPI,,,._ ,"-,TOM .:° 498,00 A.T...C. 111910:1? RETAINED EARNINGS - PRIOR ;5,521 54 IIRRENI YEAR 1,02,^.90` „TAL CQU;, , 731304.58 WA IATA-17MI', S •`Qul 1,59°,0`9.45 C.oNfi�CNt'g�(. THERMAL CIRCUITS, INC. , STATEMENT OF INCOME FOR THE PERIOD ENDED DECEMBER 31, 1994 +--- PERIOD TO DATE ---+ YEAR TO DATE ---+ ACTUAL ; ACTUAL 2EVENUE 463,866. 11 100.00 4,438,951-12 100.00 OCT OF SALES MATERIALS 31,351.07 20.39 !, 152,883.83 25.07 DIRECT LABOR t9i,136.99 18.88 -895,480.41 ' 18.37 FACTORY OVERHEAD 127,386.71 26.33 1,269,627.8.3; 28.50 TOTAL COST OF SALES 356,077.57 11.59 3,237,992.07 - 7 .9s GROSS PROFIT 127,788.60 26,41 1,200,959.OS 27,06 TELLING, GENERAL AND ADMINISTRATIVE EXPENSES 133,539.39 27.SO 1,102,841.45 ^6.55 Nr,OME FROM 0PETIATIONS (.`„750.79) (1.19j 8,117.60 .41 ')THE!” INCOME (EXPENSES) MISCELLANEOUS INCOME(EXPENSE) (322.00) (.07) 25.02 .00 ('iA1N (I.O,iS) ON FIXED AS 00 .00 00 .00 INTE;iFST I:XPFNC' 91.06) (.02) 35, 36 1 ( 8!) TOTAL OTHER INCOME(EXPF,1<,F) (1!3.06) (.09) (35,510.50) I i<,c Ucc WF" c nr, �, 2 N NCOME .,Ll,;,, , _ Ort:_ ., ,,, �6.^•.�.,, ��. .7� '�ROVISIOM FOR INCOME TAX FEDERAL TNCOMF TAX .00 OO 55.^,.00 O8 MASSACHUSETTS INCOME TAX 00 U0 9,688.00 TOTAL PROVISION FOR TAXES 00 .00 13,330,00 .30 NFT 1N40ME 0.O1111s1 (6, IsJ.O`1 (I 27? (3i,'I^2.°0; THERMAL CIRCUITS, INC. SCHEDULE OF REVENUE FOR THE PERIOD ENDED DECEMBER 31, 1994 • k + PRIO^ TGDA♦E ---+E „ + - - - YEAR TO DATE ACTUAL $ ACTUAL SALES SILICONE WIRE HEATERS 1.',,;'13.95 2.76 370,485.30 8.35 SALES-TADCO 00 .00 85.43 .00 SALES RAPTON FOIL HTRS. 23,546.70 4.87 343,734.20 7.'14 SALES TEFLON FOIL ;?EATERS 24,058,25 4.97 184,981.09 4.17 SALES CERAMIC FOIL. HEATERS 97,316.60 20.11 480,724.22 10.83 SALES-SILICONE FOIL HTRS 119,269.22 24.55 1,099,955.50 24.78 SALES NOMEX FOIL HEATERS 351.05 .07 41,978.05 .95 SALES-MICA FOIL HEATERS 49,422.;15 10.21 370,446.40 8.35 SALES PREPREG FOIL HEATERS 134,023.00 27.70 1,196,700.95 26.1(- SALES-ALL OTHER FOIL HTRS 9,73'1.55 4.08 282,533. 11 8.36 SALES-ART u SCREEN 2,580.(10 .53 43,850.00 .99 SALES--TOOLING 4 DIES 755.00 .16 ;2,785.00 .51 SALtS ENGINEERING U0 .00 °t,575.00 .13 .ALES-DISCOUNT, 00 .00 RE7 S ALLOIti SIL;FOIL HTRS '12.00 .00 (706.35) (.02) RE'T 5 AL1-01W MICA FOIL H7R5 .00 .00 (274.75) (.01) RET & ALLOW OTHER FOIL HTRS (52.10) (.O1) (511.A0) (.01) RET S ALLOW 0PTON FOU. HTRS 00 .00 40.95 .00 RET A ALLOW SILICONE WIRE HTRS 00 .1119 391.110 .01. RET ; ALLOW TEFLON FOIL HTRS .00 .00 785.20) RET CE C 'OIL nn, A OW RAM1HrI R (-3".", :.. (.11) ('1,413.601 RET S ALLOW NOMEX FOIL HTRS 00 .00 375.90 .01 RET .S ALLOW PREPR`G FOIL HTRS OC 00 (2198.00) OC TOTAt. REVENUE 483,888. 17 100.00 4,438,951.12 100.00 l.Opl 7:� gleA)Z /)lam THERMAL CIRCUITS, INC. SCHEDULE OF COST OF SALES . FCR THE PERIOD ENDED DECEMBER :31, 1994 ---- PERIOD 10 DATE ---+ ---- YEAR TO DATE - ACTUAL $ ACTUAL 9 MATERIALS PURCHASES-PART 320000000 33,517.84 6.93 346,467.31 7-81 PURCHASES PART 4:30000000 27,810.81 5.1 F, 7,518.P,3 ;',.78 PURCHASES 470000000 6,?83.62 .1.47 156,649. 13 PURCHASES-PART 9720000110 39,'191.32 8.22 396,9'?'3.20 8,8'1 PURCHASES OTSCOUNTS (95.57) (.112) (9S.57j .00 PURCHASES RETURNS S ALLOW !1,251.48, (.26) (14,234.40) (.32) INVENTORY CHANGE RAW !MAT. 10,069.0!! 2.08 (42,754.99) 'V 6) U22.oc 9 12E1 , . IN 8 .. 7. ART `: SCREEN CHARGES 986.7(! .20 8,9:39.25 .20 ART a SCREEN CHARGES-IADCO 796.5? 16 9,589.23 .22 U]E CHAR6E5 (TL'CLINGI 2, '^6.55 .44 32,382 61 .73 DIE CHARGES ITOOLIN(6)-W R^N 00 .00 530.00 .12 ?URCHASES-ASTRON ,5.n4 403 5,095.72 .34 PURCHASES 9150000DO 694.00 .14 PURCHASES 97"O U0 314.50 .07 2,013.08 .05 PURCHASE", 07001,10;12, U0 OC - - --------- ---- TnI,; ��? "n n zcn AL COST of MAT(-R!AL�- 131, 7-. .87 D'RECT LABOR n mrCT L'2ON' '8,?40.83 :1 :50,985.59 0. 15 (lU'SIDE. JIRaCT '._A`,1(:.` 1,Ifi8_11 4.91 29'7,86'1.22 6.11 PAYR01.l. TAXES 4,!157. !8 .84 3:3,6S3.0S .16 WG;sEIiS cO,r,F. 1P:SUiA^r'F 1,384.99 .29 !1,703. ,7 26 EMPLOYEE GROUP !N3UlWCE 3,335.40 70 21,361.28 .48 fOTAI.. OIRFCT I-AH,^,6 91 1'!6.99 18.08 015,480.41 18 37 FACTORY OVERHFAO LA301'-tN0I12Efi:T 22,075.53 d.56 221,465.29 4.99 PAYROLL. TAXES WORKMENS COMP. INSURANCE 990.55 . 10 ^,732.11 . 13 EMPLCYFF GROUT' INSURANCE 1,380.49 .29 10,`54.92 .24 INDIRECT 5ALARIES 22,931.5? 4.12 724, 189.98 5.05 PAYRULt, 'AXES 581.ti .33 17, 169.E1 .39 WOGKME"!S COMP. INSURANCE ;14.84 li 5,970.47 !3 EMPLC`YPE GROUT' INSURANCE 430.16 .'3C 10,398.1? .25 SLI PERVI510N-FACTORY . 1,064.00 2.29 97,551.50 2.20 OVL'RIIM1, PREMIUM,-0IREC` 0'8.31 .33 18,'26 ,, .41 OVERTIME 'REMIIIM !!JDI'-ECT 159.31 .09 5,8£S8.i15 "AYROLI. TAXES 918.57 .19 9,652.35 .19 WORKIMENS COMP.INSURANC° 301.55 .06 3,011.65 .07 �, nears 194.68 .16 491 .99 I2 EMPL'JYEE ,;,JU? ;M1SL,,.•..,,. 1 1,,T0i1Y REFIT 9,0(10.(10 I.Hfi :08,m).00 2..43 REPAIRS S MAINT.3U1 DINQ 888.23 .18. 5 701.2'! t3 .IANC!C'RIA1- EXPENSE 99.02 .02 4, 150.22 .09 REAL :'STATE TAXfiS 919.01 .19 8,99'..'70 .20 ELECTRICI7Y6' a5 76 11,7;5 14 .96 WATT" S SEWER - 05:.09 .18 11,609.49 .31 UIL (i00.S2) .02) 5,543..`„`, 2 AMORT. DLDC. IMPROVEMEPITS 5.56 9,,6'.14.,, 9 �dl f i of�N�iiq THERMAL CIRCUITS, INC. SCHEDULE OF COST OF SALES FOR THE PERIOD ENDED DECEMBER 31, 1994 PERIOD TO DATE ---+ t--- YEAR TO DATE .....__.� ACTUAL ACTUAL EQUIPMENT RENTAL 158.00 .03 ?,882 i3 .05 LEASE EXPENSE-ABLOC 323.50 .07 3,882.00 .09 REPA1125,MAINT.PIACH;E'QU:P 3,240.36 .67 24,047.°;3 .54 DEPRECATEON MAC', S EQUIP x,''35.47 .57 79, 129.72 1.78 SMALL FQUIPMENT PURCHASES ?251.4t 25 9,88..37 .22 'WASTE REMOVAL-FACT012Y CHEMICAL5^4.75 3 6,006.07 . 14 WASTE. REMOVAL-RUSBI34 542.33 .11 4,743,'13 1 FACTORY EXPFNSE-C!J,!'MICALS ID'S 74;.44 .36 64,'41. 17 46 e nc F rivr._IAPES SD's 61: nr '^ - c7G FACTORY EXPENSE-PACKAGING 80'S 0,254.5'9 6I1 FACTORY EXPENSE-SUPPLIER R1'S 5.^,:1.99 FACTORY FXPFNSE-.HAND T001_S '82 A,73'l.,`;B 1.(31 58,915.50 ;7 FACTORY EXPENSE- 1ADG' 388.80, .88 9,287.56 .2.1 l(:'.011y U 11T,' 8,349.66 !.73 51,426.36 1.38 FACIORY C°.rNSE, 50'S_R;E I�I, r6:...., 22 f4,9`4.41 1.24 FACTORY T>PF^lSFS 7.' ^t21.S 915.86 60 D702.18 .41 INSORANCE ^ ' !;.6r, .45 26,937.0^, 61 INVTIy C'I'O IN C 9S 00, 41 11" 16,!58.00) 2 t°4,!!78,'1 2^ TOTAL FACTORY OWRHUA., 1 ,J86.P 25-13 69,0^7.83 28.,50 TOIAI GOS' OF SALE-', :56,077 57 1'.59 7,902 07 7 d THERMAL CIRCUITS, INC. SCHEDULE OF SELLING, GENERAL AND . ADMINISTRATIVE EXPENSES FOR THE PERIOD ENDED DECEMBER 31, 1994 ---- PERIOD TO DATE -- +---- YEAR TO DATE ----+ ACTUAL 9 ACTUAL. ADMINISTRATIVE-SALARIES 55,228.29 11.41 513,854.33 !1.58 OFFICE-SALARIES 9,441.92 1.95 76,262.42 1.72 SALES SALARIES-COMMISSION 26,812.65 5.44 200,232.80 4.51 PAYROLL TAXES 6,272.13 1.30 59,079.33 1.33 EXECUTIVE LIFE INSURANCE 411.33 .29 25,566.82 .58 EXECUTIVE MEOICAL INSURANCE 5,839.13 1.21 6,411.47 .14 GROUP MEDICAL-INSURANCE (412.93) (.09) 31,088.53 .70 OTHER EMPLOYEE BENEFITS 2,970.;1 .61 1,673.02 17 CONSULTING EXPENSE 330.00 07 4,865.00 II COMPUTER PROGRAM/CONSUL.T 2,579.b0 .53 2,869.40 .06 OFFICE EXPENSE 558.55 2 21,152.53 .48 PAYROLL SERVICE 1,876.95 .39 7,271 .56 .16 BANK CHARGES (554.30) (. 11) 3,788.79 .09 POS TACE 240.45 .05 2,695.01 .06 DEPREC CAP ITL LEASE EQUIP S40.Od 11 5,480.40 .15 DEPRECIATION MOTOR ?'EHICLE 648.34 .13 5,140.00 .12 Till PHONE 151.24 .36 14, 148.88 .32 OUTSIDE SALES COMMIS.`',IONS 10,'34,.40 2t4 89,213.80 2.01 TRAVEL 184.75 .04 11,087.31 .25 TRAVEL/EN TERIAIN'MI MEALS 5'15.'15 .33 4,941.19 .11 ADVF,RTISING 50.00 Oi 1, 188,05 .03 SALES PROMOTION 4,23'.'19 .87 35,070.79 .81 ;;ONTRIOUIIONS .00 .0063 .00 .01 AUTO �XPLNS,c. 936.60 .19 8,414.30 .19 FREIGHT OUT 342.14 .07 3 514.37 .08 DEPREC.-OFFICE EQU:^HENT 198.42 .04 8,805.03 .20 BAD DEBTS 00 .00 1,783.45 .04 BAD DEBTS RFC'OVERED .OD .00 (50.00) .00 DUES S SUBSCRIPTIONS 85.00 .02 1, 177.86 .03 r,1 tt,'� D3 1° 9c G a,..,1.APILDUS IAXEE a.28 2,0l-. . 0. PROFESSIONAL. FEES 510.00) 33) 24,508.08 .55 AMORT IIAIION-I-OAN AQLIISIT1OA: 000 00 .21 1,000.00 .02 TOTAL SELLING, GENERAL a ADM@1 EXPENSES 33,539.39 "7,60 1(3£',34 45 26.65 FaNDIT � ro 9B014DIV6> CITY OF SALEM, MASSACHUSETTS NEIL J. HARRINGTON MAYOR Mayor Neil J. Harrington and Thermal circuits President Anthony A. Klein cordially invite you to attend a ribbon cutting at Thermal circuits' 32,000 square foot manufacturing facility Monday, Aril 29, 1996 1:30 Y.m. One Technology way Technology Park, off swamyscott Road Rsvr 745-9595, eitensfon 311 SALEM CITY HALL • 93 WASHINGTON STREET • SALEM. MASSACHUSETTS 01970 • 508/745.9595 • FAX 508/744-9327 KAK ASSOCIATES 4 Jefferson Avenue Salem, MA 01970 INVOICE September 20, 1995 TO: The City of Salem AMOUNT: $50,000 DESCRIPTION: These funds shall be the principal amount of a low-interest, deferred loan to enable KAK Associates to purchase land at Technology Way in Salem, where KAK Associates will develop a 32,000 s.f. facility for Thermal Circuits, Inc. DATE DUE: September 22, 1995 s E � 4 v 'i t THERMAL CIRCUITS, INC. FINANCIAL STATEMENTS DECEMBER 31, 1993 C F 1 V #V t.: r- t R> urti THERMAL CIRCUITS. INC. TABLE OF CONTENTS PAGE ACCOUNTANT'S REPORT 1 BALANCE SHEET 2 STATEMENT OF INCOME AND ACCUMULATED DEFICIT 3 STATEMENT OF CASH FLOWS 4 NOTES TO FINANCIAL STATEMENTS 5-10 OTHER SUPPLEMENTARY INFORMATION: Schedule I: Accountant's Report on Other Additional Information 11 Schedule II: Schedule of Cost of Goads Sold 12 Schedule III: Schedule of Selling, General and Administrative Expenses 13 C:ON�/ dee/fiy� CRAFT CI l & UMA l Lawrence H. Carlton, CPA, MST Certified Public Accountants Charles E. Duran, Jr., CPAMembers: A.I.C.P.A. & M.S.C.P,A. INDEPENDENT AUDITOR'S REPORT The Board of Directors Thermal Circuits, Inc. Salem, Massachusetts We have audited the accompanying balance sheet of Thermal Circuits, Inc. , as of December 31, 1993, and the related statements of income and accumulated deficit, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Thermal Circuits, Inc. , as of December 31, 1993, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. ?(7. February 17, 1994 -I- Carlton & Duran, CPAs, P.C. • 110 Great Road • P.O.Box 248 • Bedford • MA 01730 Tel 617-275-7520 • Fax 617-275-9422 d" 9 THERMAL CIRCUITS. INC. BALANCE SHEET DECEMBER 31, 1993 ``"•" (SEE ACCOUNTANT'S REPORT) A S S E T S CURRENT ASSETS (Note 3) : Cash $ 190,791 Accounts receivable - trade (net of allowance for doubtful accounts of $7,650) 575,388 Employee advances 634 Inventory 301,296 Prepaid expenses 24.436 Total current assets 1,092.545 PROPERTY AND EQUIPMENT (Note 3) : Leasehold improvements 167,220 Machinery and equipment 785,937 Office equipment and furnishings 74,005 Motor vehicle 25,700 Property held under capital lease (Note 5) 32.402 1,085,264 Less accumulated depreciation and amortization 666.269 Property and equipment - net 418.995 TOTAL ASSETS $ 1.511,540 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: 91 Note payable - bank (Note 3) $ 200,000 Current maturity of long-term notes payable 6,300 Accounts payable - trade 216,055 38 Accrued and withheld payroll taxes 75,596 34 Accrued employee compensation 54,409 36 Accrued commissions 13,035 36 Accrued corporation taxes 19.725 Total current liabilities 585.120 LONG-TERM NOTES PAYABLE (Notes 4 and 5) : Notes payable - stockholders 190,000 Capital lease obligations - net of current maturity 16.087 Total long-term notes payable 206.087 Total liabilities 791,207 COMMITMENTS (Notes 3 and 5) CONTINGENCY (Note 8) STOCKHOLDERS' EQUITY (Note 6) : Capital stock - $1.00 par value; authorized 150,000 shares, issued i and outstanding 108,789 shares 108,789 Additional paid-in capital 927,165 Accumulated deficit (315.621) Total stockholders' equity 720.333 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1.511.540 -See notes to financial statements- -2- CAPLTC�l s, DlJ-_�AN • i /�� Certified Public Accountants �a✓Fi �.tj i gp----- i THERMAL CIRCUITS, INC. I STATEMENT OF INCOME AND ACCUMULATED DEFICIT FOR THE YEAR ENDED DECEMBER 31, 1993 (SEE ACCOUNTANT'S REPORT) SALESNote 5 4,198,559 ( ) $ LESS SALES RETURNS AND ALLOWANCES 3,254 NET SALES 4,195,305 COST OF GOODS SOLD 3,051,222 GROSS PROFIT 1,144,083 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 1,011,041 INCOME FROM OPERATIONS 133,042 OTHER INCOME (EXPENSE) : Gain on sale of property and equipment 100 Interest expense (18, 128) Total other income (expense) (18,028) INCOME BEFORE TAXES 115,014 PROVISION FOR CORPORATION INCOME TAXES: Federal 28,012 State 16,911 Total 44,923 NET INCOME 70,091 ACCUMULATED DEFICIT, BEGINNING (195,712) LESS INTERCOMPANY DIVIDEND (Note 4) (190,000) ACCUMULATED DEFICIT, ENDING -See notes to financial statements- -3- CAf<LTGI , & [t[rAN, n/� 1 Certified Public Accountants `OAI�i•�G/V6/.f I E,y THERMAL CIRCUITS, INC. to STATEMENT OF CASH FLOWS INCREASE (DECREASE) IN CASH FOR THE YEAR ENDED DECEMBER 31, 1993 (SEE ACCOUNTANT'S REPORT) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 70,091 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 103,652 (Gain) Loss on sale of property and equipment (100) Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (53,528) (Increase) decrease in inventories and prepaid expenses 50,048 Increase (decrease) in accounts payable and accrued expenses 101,591 Increase (decrease) in accrued corporation taxes (11,503) Net cash provided by operating activities 260,251 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (96,095) Proceeds from sale of property and equipment 100 Net cash used in investing activities (95,995) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from line of credit borrowings 256,332 Proceeds from long-term borrowings 65,000 Proceeds from sale of common stock 87,890 Principal payments on line of credit, long-term debt and capital lease obligations (386,867) Net cash provided by financing activities 22,355 INCREASE IN CASH 186,611 CASH, AT BEGINNING OF YEAR 4,180 CASH, AT END OF YEAR $ 190,791 06��d�w�;q,L i SUPPLEMENTAL DISCLOSURES: Cash Flow Information: Cash paid during the year for: Interest $ 18. 124 Income taxes $ 24.992 -See notes to financial statements- -4- �iN�/�GaJ�i,gl,,, CAPITON, _& DUf?AN Certified Public Accountant, THERMAL CIRCUITS. INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1993 (SEE ACCOUNTANT'S REPORT) ( NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES GENERAL - On December 31, 1993, the stock of Thermal Circuits, Inc. was distributed to the stockholders of Kittiwake Corp. as a tax-free distribution under IRC Sec. 355. As of December 31, 1993, there were no balances due to or from Kittiwake Corp. or its subsidiaries. Thermal Circuits, Inc. manufactures various types of flexible heating elements. CASH - For purposes of the statement of cash flows, cash equivalents include time deposits, certificates of deposit, and all highly liquid debt instruments with original maturities of three months or less. INVENTORY - Inventory is stated at the lower of cost or market. Cost is determined on a first-in, first-out basis. Market is generally replacement cost. PROPERTY AND EQUIPMENT - Property and equipment are stated at cost. Additions, improvements and major renewals have been capitalized. Maintenance, repairs and minor renewals are charged against income as incurred. When assets are retired or disposed of, the cost and related depreciation are eliminated from the accounts. Any gain or loss from disposals is recognized in the year of disposal and reflected in the results of operations. DEPRECIATION - Depreciation of property and equipment has been provided for by use of the straight-line and accelerated methods over the estimated average useful lives of the assets as follows: Leasehold improvements 19 - 20 years Machinery and equipment 10 years Office equipment and furnishings 5 - 10 years Motor vehicle 5 years Property held under capital lease 5 years DEFERRED FINANCING COSTS - Legal and other related costs associated with securing financing for the Company have been capitalized and are being amortized over the life of the loan. INCOME TAXES - Deferred income taxes are provided for timing differences between income determined for financial statement purposes and taxable income due to different methods used for calculating depreciation. Investment tax credits are accounted for by the flow-through method whereby they are recognized as a reduction of income tax expense in the period utilized. -5 CAUTCN 3 U IPAN / Certitled Public Accountants �d/!I F/deAl�/fI �fi THERMAL CIRCUITS. INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1993 (SEE ACCOUNTANT'S REPORT) NOTE 2 - INVENTORY At December 31, 1993, inventory consisted of the following: Raw materials $ 208,502 Work-in-process 90,601 Finished goods 2. 193 Total Inventory $ 301.296 NOTE 3 - NOTE PAYABLE - BANK On December 22, 1993, Shawmut Bank, N.A. agreed to a $500,000 revolving line of credit with the Company to be effective on December 31, 1993. Amounts to be advanced cannot exceed the aggregate of 75% of trade accounts receivable with an aging of less than ninety days and 20% of raw material and finished goods inventory at cost. The rate of interest payable is 1.25% over the Corporate Base Rate of Shawmut Bank, N.A. The line of credit is secured by all of the corporate assets of the Company. The line is also secured by a cross guarantee with Jefferson Realty Trust through a third mortgage on real estate in Salem, Massachusetts. All borrowings are also guaranteed by the assets of Ablog. Additionally, two of the stockholders have each severally guaranteed $125,000 of the debt. The line also calls for the subordination of notes due to stockholders. See also Note 4. The Company was in compliance with the advance rate at December 31, 1993. At December 31, 1993, borrowing on the line amounted to $200,000 with I nterest being charged at 7.25%. NOTE 4 - NOTES PAYABLE - STOCKHOLDERS The Company assumed the liability for notes payable to the stockholders in the amount of $190,000 from its parent company. The assumption of the notes was accounted for as an intercompany dividend to its previous parent company. The loans have been subordinated to the Shawmut Bank, N.A. The interest rate being charged at December 31, 1993 was 12.00%. On January 1, 1994, Shawmut Bank, N.A. released $100,000 of subordinated notes due to the stockholders. , On January 17, 1994, $50,000 of stockholder loans were repaid by the Company. a . F -6- Y t CAPLTGT�- ,Q, L�P AN ���•./������ Certltlea Public Accountants G iz THERMAL CIRCUITS. INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1993 (SEE ACCOUNTANT'S REPORT) NOTE 5 - COMMITMENTS Lease Commitments Capital Lease The Company is the lessee of office equipment under a capital lease expiring in 1997. The asset and liability under the capital lease is recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The asset is depreciated over its estimated productive life. Depreciation of the asset under the capital lease is included in depreciation expense for the year ending December 31, 1993. Minimum future lease payments under the capital lease as of December 31, 1993, for each of the next four years and in the aggregate are: Year ending December 31: 1994 $ 8,900 1995 8,900 1996 8,900 1997 534 Total minimum lease payments 27,234 Less: Amount representing interest 4.847 Present value of net minimum lease payments 22,387 Less current maturity 6.300 Obligation under capital lease 16 087 The interest rate on the capitalized lease was 13.00% and has been imputed based on the lower of the Company's incremental borrowing rate at the inception of the lease or the lessor's implicit rate of return. Operating Leases The Company leases real estate under a noncancellable operating lease. The Company is responsible for all real estate taxes, utilities, insurance and all other normal maintenance on the real estate. Rental expense under operating leases for the year ended December 31, 1993 was approximately $116,400, of which $108,000 was paid to an affiliated entity, Jefferson Realty Trust for the rental of real estate and approximately $8,400 was paid to an affiliated entity, Ablog, for the rental Of machinery and equipment. Ablog has assigned to Shawmut Bank, N.A. as described in Note 3, its title and interest in all equipment as collateral . -7- & [ r aN Certified Public Accountants THERMAL CIRCUITS. INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1993 (SEE ACCOUNTANT'S REPORT) f T NOTE 5 - COMMITMENTS, CONTINUED Lease Commitments, Continued Operating Leases. Continued Minimum future annual commitments under the lease agreements are as follows: Year ending December 31: 1994 $ 108,000 1995 108,000 1996 108,000 1997 108,000 1998 108,000 Subsequent to 1998 783.000 Total minimum future rental payments $ 1.323.000 Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and trade receivables. The Company places its temporary cash investments with high credit quality financial institutions and, by policy, limits the amount of credit exposure to any one financial institution. The Company reviews a customer's credit history before extending credit and performs ongoing credit evaluations of its customers' financial condition. The Company does not require collateral or other security to support customer receivables. As of December 31, 1993, the Company's concentration of credit risk is detailed below. Thermal Circuits, Inc. has two customers which have each generated revenue in excess of ten percent (10%) of total revenue of the Company. Sales to these customers aggregated approximately $996,200 during 1993. Included in outstanding trade accounts receivable at December 31, 1993 from the two customers was $117,240. I NOTE 6 - STOCK OPTION PLAN Under the terms of the stock option plans of Thermal Circuits, Inc. , options to purchase shares of common stock were granted to a certain key employee at prices equal to the fair market value of the stock at the date of the grant. Options may be exercised per the summary below. -8- L/ CAITTcf` U11-N�-i /e 40/44 Certified Public Accountants Q' 66 THERMAL CIRCUITS INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1993 (SEE ACCOUNTANT'S REPORT) NOTE 6 --STOCK OPTION PLAN, CONTINUED Following is a summary of transactions for the year ended December 31, a. 1993: Total shares reserved for granting options 50.000 Shares under option: Grant date of option 12-31-93 2-24-87 10-10-86 Outstanding, beginning of year -0- 3,636 10,000 Cancelled during year -0- -0- -0- Granted during year 36,364 -0- -0- Exercised during year -0- -0- 8.789 Outstanding, end of year 36.364 3.636 1.211 Exercise price of shares granted 18.00 10.25 10.00 Exercise date of option 1-31-94 2-24-91 10-10-90 Remaining shares eligible for exercise at year end December 31, 1993 -0- 3.636 1.211 On March 2, 1994, 7,659 shares were exercised at prices ranging from $10.00 to $18.00 per share. NOTE 7 - RELATED PARTY TRANSACTIONS Thermal Circuits, Inc. entered into a long-term lease for the real estate in Salem, Massachusetts with Jefferson Realty Trust (a Massachusetts trust) in 1985. The two beneficiaries of Jefferson Realty Trust are also stockholders of Thermal Circuits, Inc. See also Note 5. Thermal Circuits, Inc. also leases equipment from Ablog (a Massachusetts partnership) as stated in Note 5. The two partners in Ablog are also c stockholders in Thermal Circuits, Inc. Y P R i s gg� 3 -9- CAFLTUI & I Dl l A nn Certified Public Acccuntants ,M THERMAL CIRCUITS INC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1993 (SEE ACCOUNTANT'S REPORT) r NOTE 8 - LOSS CONTINGENCY Thermal Circuits, Inc. is a defendant in a lawsuit filed by their previous health care provider on January 27, 1993. The suit asks for damages totalling $6,177.74 plus interest from July 8, 1991 for alleged services rendered by them. Counsel for the Company has advised that at this stage in the proceedings they cannot offer an opinion as to the probable outcome. Accordingly, no provision has been made and the Company intends to vigorously defend its position. 9 y s a a s a a Y i —10— CAITTCl4 & LCIS; f` dArX4ev1�Aiz Certified Public Acccuntants L //VV Schedule I D AI_,L I CSI l DUFIAN Lawrence H. Carlton, CPA, MST Charles E. Duran, Jr., CPA Certified Public Accountants Members: A.I.C.P.A. & M.S.C.P.A. INDEPENDENT AUDITOR'S REPORT ON ADDITIONAL INFORMATION The Board of Directors Thermal Circuits, Inc. Salem, Massachusetts Our report on our audit of the basic financial statements of Thermal Circuits, Inc. , for 1993 appears on page 1. That audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The information in Schedules II and III is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. s F 1 February 17, 1994 t -11- Carlton & Duran, CPAs, P.C. . 110 Great Road . RO,Box 248 • Bedford • MA 01730 owFi diPet/�i y ,�, Tel 617-275-7520 • Fax 617-275-9422 i Schedule II THERMAL CIRCUITS. INC. SCHEDULE OF COST OF GOODS SOLD FOR THE YEAR ENDED DECEMBER 31, 1993 (SEE ACCOUNTANT'S REPORT) RAW MATERIALS: Materials used $ 1,177,835 Freight-in 26.780 Total raw materials 1.204.615 DIRECT LABOR: Wages 641,165 Payroll taxes 29,683 Workers' compensation insurance 15,375 Employee group insurance 18.416 Total direct labor 704.639 OTHER MANUFACTURING COSTS: Overtime premium 13,881 Indirect labor and supervision 527,355 Payroll taxes 41,420 Workers' compensation insurance 19,994 Employee group insurance 25 698 Rent 108,000 Utilities 54,347 Real estate taxes 15,599 . Equipment rental and lease 11,192 Repairs and maintenance 52,945 Depreciation of machinery, equipment and improvements 83,941 Factory expense 170,018 Insurance 24.226 Total other manufacturing costs 1.148.616 Total manufacturing costs 3,057,870 (INCREASE) DECREASE IN WORK-IN-PROCESS AND FINISHED GOODS INVENTORIES (6.648) TOTAL COST OF GOODS SOLD 1-1,L5 1.222 -See notes to financial statements- -12- CAIdI. 1 Ch' & DUI A; - i av fi dewl�,4 / Certified Public Accountants - f Schedule THERMAL CIRCUITS, INC. SCHEDULE OF SELLING, GENERAL AND ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1993 (SEE ACCOUNTANT'S REPORT) Administrative salaries $ 274,996 Office salaries 73,183 Salesmen salaries and commissions 194,790 Payroll taxes 41,759 Keyman life insurance 1,332 Employee benefits 36,951 Outside sales commissions 80,374 Management expense 140,000 Consulting expense 30,344 Office expense 27,764 Depreciation of office equipment and furnishings 16,668 Telephone 10,781 Postage and freight 6,875 Sales promotion expense 24, 182 Travel and entertainment 12,714 Motor vehicle expense 1,756 Motor vehicle depreciation 1,542 Professional fees 33,530 Amortization of loan acquisition costs 1,500 TOTAL SELLING, GENERAL AND ADMINISTRATIVE EXPENSES $ 1,011,041 -See notes to financial statements- -13- F.dru,E,q,C Certified Public AC,OUn1Onts JUN-28-95 WED 10; 13 PURCHASHING DEPT, FAX N0, 5087445918 P. 05 ITEM COST Paving, gravel&finish grading $ 52,550 Parking lot lights(allowance) $ 8,000 Landscaping(allowance) $ 15.000 Contingency(less real estate) $ 19,995 (10%of cost of work done,including subgrading,and water, sewer& drainage) Engineering(less real estate) $ 7,998 (4%of cost of work done, including subgrading and water, sewer and drainage) Supervision $ 10,000 (or in proportion to the actual work done) 6. Fafard Real Estate will repay to the City$200,000 of the purchase price of the road as a fee as the remaining 17.6 acres of Lot 702 are sold. The payment amount is$11,363 per acre and will be secured by an agreement to be recorded at the Registry of Deeds. Thermal Circuits_ Inc. Thermal Circuits, Inc. shall ensure that the following measures are carried out: 1. Thermal Circuits has facilitated meetings of its consultants and architects with the staff of the Salem Planning Department to ensure a smooth permitting process. 2. Thermal Circuits,its consultants and architects have submitted building plans to the Salem Planning Department in order to expedite the permitting process. 3. Thermal Circuits has expedited meetings with its representatives and Fafard Real Estate so that the permitting process can proceed quickly. 4. Thermal Circuits has submitted to the Salem Planning Department the information required for designation as a Certified Project by the Commonwealth's Economic Assistance Coordinating Council. 4 JUN-28-95 WED 10: 13 PURCHASHING DEPT, FAX N0. 5087445918 P106 5. Upon the sale of its Jefferson Avenue facility, Thermal Circuits will repay to the City its $50,000 loan. Other: I. The transactions described herein are subject to the satisfactory results of a 21E evaluation conducted at Lot 703 at the sole cost of Thermal Circuits by June 7, 1995. 2. This agreement is not legally binding on the parties and is subject to both a mutually agreeable purchase and sales agreement and a construction contract. Both the purchase and sales agreement and construction contract are to be signed no later than May 22, 1995. William Luster, City Planner Date Anthony A. Klein, President Date Thermal Circuits,Inc. Howard Fafard Date Fafard Real Estate and Development Corporation 5 SUBMITTAL AND DESIGN DOCUMENTATION FOR THE SITE PLAN OF THERMAL CIRCUITS AND THE DEFINITIVE SUBDIVISION OF SALEM BUSINESS PARK IN SALEM, MASS. PREPARED BY: FAFARD REAL ESTATE AND DEVELOPMENT CORPORATION [OWNER,APPLICANT, SUBDIVIDER,ENGINEER] MARCH 29, 1995 NARRATIVE This submittal references a site which is being developed on behalf of Thermal Circuits adjacent to a roadway network that is being submitted simultaneously and designated as Salem Business park. The parcel for Thermal Circuits is approximately four acres in size and shall accommodate a 32,000 square foot building with an option to enlarge and expand should favorable market conditions warrant in the future. Expansion [known as Phase II] shall bring the square footage to a total of 52,000 s.f. and provide for 120 parking spaces as shown on the site plan. Within this submittal can be found architectural elevations indicating the type of building to be constructed. Overall site conditions are extreme in that a large cut shall be necessitated by the subdivision roadway and there are wetlands that exist on site which must be considered during construction. It is important that previous decisions by the town's governing bodies be reiterated. The local Conservation Commission previously approved a proposal to establish a Rich's Department Store distribution outlet on this site which would have effectively utilized the entire parcel. Drainage outfalls were approved to discharge into the wetlands at the north and south of the property. The current proposals for Salem Business Park and the Thermal Circuits site allow for all the drainage to be directed towards the northerly wetland. As allowed previously by the Conservation Commission, the wetland shall be utilized to detain and attenuate stormwater runoff before being discharged beneath Swampscott Road into Thompson's Meadow. In addition, there is a provision to allow a driveway crossing over the southerly wetland to access buildable upland, this occurs at the terminus of the cul de sac. The Order of Conditions that was issued by the Conservation Commission is still in place. Consideration to parking and loading were a large concern since approximately 112 spaces are required for parking at full build-out. The loading dock is situated so that it is screened by a landscaped area. There are two points of access which shall be utilized, the southerly-westerly one shall be used by delivery trucks which shall circle the building in 1 a clockwise manner before delivery at the loading dock. The trucks will then exit through the northerly access point. External lighting shall be focused so as to limit intrusion on surrounding properties yet provide safe and effective lighting for the immediate vicinity. Landscaping and screening shall be utilized in the same manner to provide an attractive site which does not clash with surrounding properties. Proposed site utilities shall be incorporated into the proposed subdivision roadway utilities, this includes water, electrical, sewer and drainage. There is also a snow storage area provided at the southerly end of the site which can be utilized during periods of excessive precipitation. 2 CITY OF SALEM APPLICATION SITE PLAN REVIEW SPECIAL PERMIT Applicant: 17,c4L Es"Ti-n Date of Submittal : 117YIys Fi DC�C Lc O'-f E.✓ / CU2P Address: Zlv EL/oi S Proposed Date of Hearing: 0/iif Telephone: ss/-/foo Date of Approval: Location of Property: Date of Completion of Appeal ,$cJ^M PSCL%/ /zD. ,t3?'Jfct>v7- Period: Mi}YNA/(t> FL4S7r6S 1. Project Description: a. Zoning district: 3U-0,L/e-SS ?4r1K �F✓�caPH�/7 b. Square footage of parcel: /7E , Goo c. Square footage of structure(s) : d. Square footage of footprint: e. No. of dwelling units ( if applicable) : Azq. II. Additional Information: Information required includes this application and the following additional information. File one copy of all information with City Clerk and five copies with the Planning Board (all copies must be stamped by City Clerk) . a. A Site Plan at a scale of 1"=40 ' , (or as established by Planning Board) including all requirements as set forth in Section IIIB of the Salem Subdivision Regulations and the following: 1. Location and dimensions of all buildings and other construction; 2. Location and dimensions of all parking areas, loading areas, walkways, and driveways; 3. Location and dimensions of all internal roadways and accessways to adjacent public roadways; 4. Location and type of external lighting; 5. Location, type, dimensions and qualities of landscaping and screening; 6. Location and dimensions of utilities,, gas, telephone, electrical communications, water , drainage, sewer and other waste disposal; 7 . Location of snow removal areas; 8. Location of all existing natural features including ponds, brooks, streams, wetlands, and marshes; 9 . Existing and proposed topography of the site, with two foot contours; 10. Conceptual drawings and elevations of buildings to be erected including elevations showing architectural styles. b. A brief narrative, as requested by the Planning Board addressing these site plan requirements and other appropriate concerns in the following defined categories : 1 . Building 2 . Parking and loading 3. Traffic flow, circulation and traffic impact 4 . External lighting 5. Landscaping and screening 6. Utilities 7 . Snow removal 8. Natural features and their protection and enhancement 9. Topography and its maintenance 10. Compatibility of architecture with surrounding area C. An Environmental Impact Statement in accordance with Appendix A of the Salem Subdivision Regulations. III . Procedure: The Planning Board shall, within 7 days after the filing of this application, transmit one copy of said application, plans and all other submitted information to the Inspector of Buildings, City Engineer , Board of Health and Conservation Commission who may, at their discretion, investigate the application and report in writing their recommendation to the Planning Board. The Planning Board shall not take final action on such application until it has received a report thereon from the Inspector of Buildings, City Engineer, Board of Health and Conservation Commission or until thirty-five ( 35) days have elapsed after distribution of such application without a submission of a report . The Planning Board shall hold a Public Hearing on said application as soon as possible after receiving the above reports, in accordance with Chapter 40A of the Massachusetts General Laws. The Planning Board shall notify the applicant in writing of its decision on the special permit. The decision shall document the proposed development or use and the grounds for granting or refusing the special permit. The Planning Board may, as a condition of approval, require that the applicant give effective notice to prospective purchasers, by signs or by recording the special permit at the Registry of Deeds, of the conditions associated with said premises and the steps undertaken by the petitioner or his successor in title to alleviate the effects of same. Signature of Applicant Date Fee Paid: ' EX\DH\SPRSPAPP ( itu of *tem, cfflttsgar4uset#s Tatem, Aaeeachunstts 01970 FORM C APPLICATION FOR APPROVAL OF DEFINITIVE PLAN In accordance with the provisions of Section III-B the applicant must file, by delivery or registered mail, a Notice with the City Clerk stating the date of the submission for such determination. The no- tice shall be attached to two copies of the Form C application. The notice and both copies of the ap- plication must be "date stamped" by the City Clerk and then one copy of this Form C, with the Plan, filed with the Planning Board by the applicant. All notices and applications shall be typewritten or neatly printed in ink. Salem Mass. ----------------------------------------19.- To the Planning Board: The Undersigned herewith submits the accompanying Definitive Plan of property located in the City of Salem for approval as a subdivision under the requirements of the Subdivision Control Law and the Rules and Regulations Governing the Subdivision of Land of the Planning Board in the City of Salem. 1. Name of Subdivider .-------------------- 290__.--_EL/07__S7- ��L ------ ---- Z Address ---------- - --- ------- — -If-41b A14 0/ 7Z/ --------- 2. Name of Engineer or Surveyor --------S4MC----------------------------------------------------------------------- -- Address ----------------------------------------------------------------------------------------------------------- C.CnT. of TtTt-c 6ZQ2Z 3. Deed of property recorded in ---- ----- -------------------- ---- ------------------------------------ mow. P a8e Essex Sov7W DiSTit/c7 of L?Nb (0,3/Z:7 -------------- 4. Location and Description of Property: -------—--------------------------------------------------------------------- Zt' ACf cS Lec'A E� -`-- -----` ? �—{'c. c.S - Sc: Si7c' ci .S� 1�r toii - - 1� -- --------J----1 -------��" - -2LY------------------------------�----- ~ 5. All streets and abutting lot lines shall be shown on the Plan with the names and addresses of the abutting Owners. ;IL�, /LA _fl Signature of Owner-- — - - -- —- - - � / ---------- ZYo Eu0T -5�= �]sr/c,frD .tiq a/7zf Address --- --— -- -- S� - ff /_ 7600 --_ Telephone Number __._____-___�_.__ A list oF the names and addresses of the abatters oF this subdivision i atta"Ited, Which-shaW-bt-attestud t ' �..� yo Verification will be made by the Planning Board. n 4 so.�in/c,.fij/c �F I?fE //.9u71cYlS 4 s Ctv of "Salem' fflttsstt*setts �Ju.afv� �IHZ;TI12Rl� �IIfLT?I �it� �nll Ante=, 'Animchneette 019711 NOTICE TO BE ATTACHED TO FORM "C APPLICATIONS See Form "C applications for complete instructions for filing. All insertions shall be typewritten or printed neatly in ink. Date: 3 2'i /yS ------ ----f-- --f GrN Clerk Clerk Salem, Massachusetts, 01970 Dear Sir: I hand you herewith two copies of Form C, an application submitted this day to the Planning Board of the City of Salem requesting an approval, by the Planning Board, of a definitive plan filed with this application. The subdivision shown on the plan is called "_____ S'}� h /"17 `ZS / -hZK ------------ --------------------- ----- and is located on streets now and/or tentatively known as _____________ - -- --------------------------------------------- --------------------- ------- (insert streets and street or lot numbers) in Ward ---------I;t-__3 i Signature of Owner -------- `�✓� ----- ------r-- --'-------- --__�___"_'-7- -- Z - 5 ----------- Street Address --------------- _--------_____------ �itt--1� 7 �� Z City/Town and State ------=- l---- ------------ Telephone -Telephone Number --------------O5 A5 /6 e SUPPLEMENTAL DOCUMENTATION FOR SALEM BUSINESS PARK SPECIAL PERMIT APPLICATION FOR WETLANDS AND FLOOD HAZARD DISTRICTS Prepared by: Fafard Real Estate and Development Corporation March 29, 1995 Introduction This Special Permit application accompanies the Salem Business Park Definitive Subdivision which is being submitted simultaneously with the Site Plan for Thermal Circuits. The two proposals are highly integrated and should be considered together but for administrative purposes separate Special Permit applications have been submitted. Section I The right of way falls within the buffer zone of bordering vegetated wetlands while the access driveway at the southern end of the project will necessitate wetland filling. Under the town zoning ordinances this area is classified as Zone C indicating an area of minimal flooding. Section II The site plan is being submitted at a scale of 1" = 40' rather than at 20 scale, a waiver is requested on this requirement. Permits by the following governing bodies will be required at some point in the approval/construction process: Board of Health review, Revised Order of Conditions from the Conservation Commission, Planning Board aproval of a Definitive Subdivision, Building/Occupancy Permit from the Building Inspector. Section III Refer to the permit itself for responses to this section. CITY OF SALEM, MASSACHUSETTS APPLICATION SPECIAL PERMIT WETLANDS AND FLOOD HAZARD DISTRICTS Applicant: lr7,11-1hn7b 17e-11L, CO,-ZP Address: ZYIJ/E[.Ja7- a/7a/ _ City Clerk Stamp Telephone.• Owner: ShME - Address Location of Property: .51tta^1 l�S9�eSf /7'h'�K �0/;7 Ca7riCD.> Project Description: 11.0 14L/ZLr -S/icT /r4b It l-&' S_f(_6,AJ j3�srn �f S PSK 7ET/vi7i�� S ur3DrvrSr o f I. It has been determined by the Building Inspector that the above property lies in the £ollowinR area(s) : A. Wetlands District Wetlands ( Buffer Zone ( ✓ ) B. Flood Hazard District Zone A ( ) Zone A3 ( ) Zone V3 ( ) II. Information required includes this application and the following additional information (file one copy of everything with the City Clerk and five copies with the Planning Board ; all copies must be stamped by the City Clerk) : A. A site plan at a scale of 1" equals 20' prepared by a registered land surveyor or registered professional engineer and showing at least the following: 1. Lot lines within which the development is proposed and the tie- in to the nearest road intersection; 2. The location, boundaries, and dimensions of each lot in question; 3. Two-foot contours of the existing and proposed land surface; 4. Location of existing and proposed structures, water-courses, drainage and drainage easements, means of access, utilities, and sewer disposal facilities including leaching fields, if any. Proposed elevations should be noted. 5. Boundaries of all districts, areas and zones as noted in Section I. -2- B. In the Wetlands District, a determination by a qualified engineer of the seasonal high water table, performed during the last two weeks of March or the first three weeks of April. A minimum of two percolation tests for each leaching area shall be performed. C. In cases of flood-proofing or pile construction, certification by a registered professional engineer or architect as to the elevation of flood-proofing measures and as to compliance with the applicable sections of the Massachusetts State Building Code concerned with flood depths, pressures, velocities, impact and uplift forces, and other factors associated with the base flood. Where specific methods or techniques have been previously certi- fied, the Planning Board may waive this requirement. D. A list of Federal, State, and other local permits required by the applicant. E. Descriptions relative to all conditions applicable in Section III below. III. Conditions (Complete those sections indicated (x) by the Building Inspector) In the Wetlands and Flood Hazard Districts no structure or building, including pipes and wells, shall be erected, constructed, substantially improved, enlarged, or otherwise created or moved; no area shall be paved; no earth or other material shall be stored, dumped, used as fill, excavated, or transferred; and no sediment shall be caused to be discharged from or onto a wetland, unless all the following condi- tions are found to exist as part of the granting of a Special Permit by the Planning Board (Use additional pages if necessary) : A. All Districts: (X) 1. The proposed use will comply in all respects to the uses and provisions of the underlying District in which the land is located. Yes ✓ No (X) 2. There is adequate convenience and safety of vehicular and pedes- trian movement within the site, and in relation to adjacent streets and property, particularly in the event of flooding of the lot(s) or adjacent lot(s) caused by either overspill from water bodies or// high runoff. �/ Tie Si�2 �a9 ryew �.9h�1 -7� a-Corti of Wt 4 7t�e /JO//''(( `/(. S�r.../ 4.o/ 4CPL, V % -3- W 3. Utilities, including gas, electrictity, fuel, water, and sewage disposal, shall be located and constructed so as to protect against breaking, leaking, shortcircuiting, grounding or igniting or any other damage due to flooding. (Provide details) .. J'I�I U�(i 7)nCiJ J`t/JNGI ✓/!N //rG�P� �Ew. �Iot:r.�C"�`9 49r (X) 4. The cumulative effect of the proposed development or use, when combined with all other existing and anticipated development and uses will not obstruct or divert flood flow; substantially reduce natural flood-water storage capacity in the local drainage area; destroy valuable habitat for wildlife including fisheries or shellfisheries; adversely affect groundwater resources or increase storm water run-off velocity so that water levels on other land are substantially raised or the danger from flooding increased. 6Z-7,_ a7,/ 4 LD e S/Y/�') f�"/ !i+/�/ C'li,(✓/C �% � Q'U71'�ti..cyr7�Y B. Wetlands District: ( ) 1. The proposed development or use shall not include the storage of salt, chemicals, petroleum products or other contaminating substances or discharge of any .polluting liquids or materials into streams, brooks or wetlands. (The polluting effects of substances on the Wetlands are to be gauged by the "Rules and Regulations for the Establishment of Minimum Water Quality Standards and for the Protection of the Quality and Value of Water Resources" of//t//he Commonwealth of Massachusetts. ) -4- ( ) 2. The floor level of areas to be occupied by human beings as living or work space shall be four (4) feet or more above the seasonal high water table. YES ( ) 3. If the basement floor level is below the seasonal high water table and affords the possibility of human occupancy at some future date, although not originally intended, adequate perimeter drainage and foundation shall be installed to with- stand the effect of pressure and seepage. Furnace and utilities are to be protected from the effects of leaching. (Provide details) Applies ( ) Does not Apply ( ✓) ( ) 4. If the lot is to be served by an on lot septic system, the leaching area designed for use, as well as a reserved area for future expansion or total future use, shall be plotted with dimensions on the site plan, and the leaching areas shall not be constructed where the seasonal high water table is less than. 4 feet below the bottom of the leaching areas. Applies ( ) See site plan Does not apply ( V/) C. Flood Hazard District (all zones) : ( ) 1. The floor of the basement, or if none, the lowest floor of _. new construction or substantial improvement of structures for residential uses shall be at or above the 100 year flood level. ( ) 2. The floor of the basement, or if none, the lowest floor of new construction or substantial improvement of structures for non- residential uses shall be at or above the 100 year flood level or the structures shall be flood-proofed to that level in compliance with the applicable requirements of the Massachusetts State Building Code. Flood-proofing measures shall insure that the structure is watertight and that structural components have the capability of resisting hydrostatic and hydrodynamic loads and the effects of bouyancy. 5 D. Flood Hazard District, Coastal High Hazard Area (Zone V3) : ( ) 1. New structures or substantial improvements shall be located landward of the reach of Mean High Tide. ( ) 2. New structures or substantial improvements shall be elevated on adequately-anchored pilings or columns, and securely anchored to such pilings or columns so that the lowest portion of the structural members of the lowest floor (ex- cluding the pilings or columns) is elevated to or above the 100 year flood level. Space below the lowest floor shall be free of fixed obstruction. (Provide details) ( ) 3. The support of new structures or substantial improvements shall not be, in whole or in part, by the use of fill. (Provide details) IV. Procedure The Planning Board shall, within 7 days after the filing of this application, transmit one copy of said application, plans and all other submitted information to the Inspector of Buildings„City Engineer, Board of Health and Conservation Commission who may, at their discretion, investigate the application and report in writing their recommendation to the Planning Board. The Planning Board shall not take final action on such application until it has received a report thereon from the Inspector of Buildings, City Engineer, Board of Health and Conservation Commission or until thirty-five (35) days have elapsed after dis- tribution of such application without a submission of a report. The Planning Board Shall hold a Public Hearing on said application as soon as possible after receiving the above reports, in accordance with Chapter 40A of the Massachusetts General Laws. The Planning Board shall notify the applicant in writing of its decision on the special permit. The decision shall document the proposed development or use and the grounds for granting or refusing the special permit. The Planning Board may, as a condition of approval, require that the appli- cant give effective notice to prospective purchasers, by signs or by recording the special permit at the Registry of Deeds, of the wet- land or flood hazard conditions associated with said premises and the steps undertaken by the petitioner or his successor in title to alleviate the effects of same. /' Signed �7/'^ C4 / C c2501 7) Title Date COMBINED ENVIRONMENTAL IMPACT STATEMENT FOR THERMAL CIRCUITS SITE PLAN AND INDUSTRIAL DEFINITIVE SUBDIVISION AT SWAMPSCOTT ROAD, SALEM MASS. March 29, 1995 Prepared by: Fafard Real Estate and Development Corp. NATURAL ENVIRONMENT AIR During construction there will be a certain amount of dust and smoke generated by earth moving equipment. These will be Eliminated upon completion of the project. Dust will be controlled during construction by spraying water. There is a substantial buffer area between the project and existing residential dwellings, 75' is required by the local zoning bylaws. LAND The proposed site is located in an area where some previous site work has taken place. It is mostly cleared of trees and some rough grading has been done. There has also been some stockpiling of materials on the site. There are no significant geological formations on the site. The project has ledge outcroppings and drilling and blasting of ledge is anticipated. In the event that a high water table is encountered, foundation drains will be incorporated to alleviate this situation. No percolation tests were done as the site will be serviced by the City of Salem sewer. The four acres of land proposed for the Thermal Circuits does not abut wetlands. No wetland filling is proposed for this building site. Wetland filling will be needed for extension of an industrial driveway to access upland area at the rear of the property. The filling was approved previously under an Order of Conditions that is still in effect: WATER AND WETLANDS . The proposed project will not effect the quality or quantity of any existing or potential public or private water supply. All storm water runoff will be discharged into the wetlands which serve as detention basins. Catch basins will have gas traps and sumps to allow settlement of pollutants prior to discharge to the watershed areas. Erosion control measures such as silt fence will be installed at the site in accordance with the submitted plans and shall be properly maintained. The site will be landscaped as soon , as possible after site work is completed. Upon completion of the project there will be no ponding on the site. All storm water will be routed through the drainage system designed to have sufficient capacity to handle the runoff from a 100 year storm. There are a minimal number of tress and most are in the wetland areas which will not be affected. 1 The Thermal Circuits site will be brought to an average grade of approximately elevation 95. The finish floor grade of the building will be at elevation 97. The existing grades slope down from the Maynard Plastics site at Elevation 90+/-to the wetlands along Swampscott Road at elevation 70+/-. Construction of the roadway shall entail some fill to offset the substantial cut required at the base of the ledge outcropping. There are two areas of wetlands which the site abuts. The first is at the northerly end of the site and is bisected by Swampscott road. There are 3-42" concrete pipes which provide a hydraulic connection between the two. The second area is in the southerly portion of the site. All runoff from the Thermal Circuits site will be routed to the basin at the northerly side of the site which is controlled by the 42"concrete pipes under the Swampscott Road. The proposed grading has been designed to balance the cuts and fills on the site as much as is practical and to minimize any impact to the existing wetlands that abut the site. Landscaping and vegetative cover is indicated on the site plan. As stated previously, there is little existing vegetation [whatever exists shall be protected by silt fence] except in the wetland area. The rate of run off will be less than previously approved for the site under the Rich's Department store proposal that was reviewed previously by the Conservation Commission. The current proposal represents partial development of the existing parcel with full build-out to occur in the future. The overall drainage plan for the Business Park has been approved by the Conservation Commission and has been issued an Order of Conditions which has been extended and is still in full force and effect. The proposed project conforms to the drainage study prepared by David Westerling, PE dated July 20,. 1988. The project will have minimal effects on the receiving waterways. Catch basins will have sumps and gas traps installed and the project has been designated as a"no salt area" under a previous Order of Conditions. The effect of the Thermal Circuits building and business park on groundwater quality will be minimized because of the previously mentioned precautions. Groundwater is currently suspended by the underlying ledge conditions which accounts for a high degree of runoff into the existing wetlands. The increase in runoff or potential for flooding will be mitigated by detention basins which have been designed for the front of the property. These basins shall control the rate of runoff to Thompson's Meadow so that the proposed condition shall be less than the existing condition. The projects sewer will be piped to an existing manhole in Swampscott Road and should have no effect on surface and groundwater supplies or quality. 2 ENERGY The project will use natural gas and electricity. The gas will be underground and supplied by Boston Gas. The electricity will be overhead supplied by Massachusetts Electric Company both coming from Swampscott Road. NOISE The usual noise associated with construction projects i.e., earth moving and trucking will be generated during the construction phase during construction hours. These noises will be eliminated upon completion of the project. No high levels of noise will be generated by Thermal Circuits, which is presently located in Salem or other potential tenants of the business park, other than those generated by normal traffic. LOCAL FLORA AND FAUNA The proposed site has been cleared. The applicant will be landscaping the site as shown on the site plans. The Massachusetts National Heritage Program files show no rare or endangered elements on the project locus as of the 1994 Report. MAN-MADE ENVIRONMENT LAND USE The project is consistent with zoning for the area. It abuts Maynard Plastics, a 170,000 +/- s.f. manufacturing plant,on its northerly side and an auto body shop to its south. The site is approximately 1/4 mile south of the Highlander and Hawthorn Shopping Plaza. DENSITY There is one building [52,000 sfj proposed at this time for Thermal Circuits. Phase I shall consist of approximately 32,000 s.f with the remaining to be built in the future. Approximately 90% of the site shall be covered by the building, associated parking areas and other appurtenant structures, 10%shall remain pervious as Open Space in accordance with the zoning bylaws. Additional buildings will be proposed in the future for the remaining portions of the overall subdivision. It is not anticipated that variances will be needed and the buildings will conform to Salem Zoning Bylaws. 3 ZONING Both Thermal Circuits and the business park are zoned Business Park Development. Land across Swampscott Road and to the westerly side of the area is zoned as Residential. ARCHITECTURE The buildings will be landscaped with shrubs and buffered as shown on the site plan. The proposed building will be one story in height which is less than the Maynard Plastics building. It will not interfere with any natural views. The building will be of concrete block/glass construction as indicated on the architectural elevation plans provided within this submittal. Trash dumpsters will be as located on the site plan. HISTORIC BUILDINGS, HISTORICAL SITES AND ARCHEOLOGICAL SITES Previous consultation with the Massachusetts Historical Commission has indicated that there are no historical or archeological sites within the project area. PUBLIC FACILITIES Water will be supplied from an existing 12"water main in Swampscott Road. Based on 15 gallons per day per employee(Title V) with 86 employees, the domestic demand for Thermal Circuits will be 1,290 gallons per day. Fire protection will be determined by the needs of future tenants. Additional gallonage for the balance of the park is estimated at four times the Thermal Circuits gallonage or an additional 5,000 gallons per day. It is anticipated that this gallonage would be returned in the form of ordinary industrial sanitary sewage. No unusual discharge other than what is typical of industrial property shall be allowed. STORM DRAINAGE FACILITIES The storm water eventually crosses Swampscott Road via 3-42" concrete pipes. A closed drain system is proposed for the site, as shown on the site plan. Drainage will be routed through a detention basin system. DISPOSAL OF STORMWATER The outfalls are as indicated on the site plan. All outfalls will have a rock riprap energy dissipater to prevent erosion. As described previously,catch basins will have gas traps 4 and salt is prohibited to reduce pollutants from entering the wetlands. The storm drainage is designed for a 25 year event with discharge into the wetland/detention basin on the north side of the site. REFUSE DISPOSAL Waste generated by the project will be that associated with light industry. It will be disposed of in the trash dumpsters and picked up by a private contractor. TRAFFIC FACILITIES Circulation patterns and parking stall locations are as shown on the site plan. It is estimated that there will be 570 trip ends generated by the entire business park project including Thermal Circuits. (Institute of Transportation Engineers Manual 4th Edition: 30 acres x 19 employees per acre for category 130 Industrial Park). ELECTRIC POWER/GAS Power demand will be determined by future tenant requirements. It will be supplied by Massachusetts Electric Company. It is anticipated that gas will be used for heating purposes. It will be supplied underground by Boston Gas. COMMUNITY SERVICES SCHOOLS/RECRFATION The project will not generate any school children. The nearest school is 1.5 miles away. No recreation facilities are proposed. POLICE/FIRE It is estimated that there will be 86 employees and approximately 86 cars. Impacts on the police Department will be negligible. One building for Thermal Circuits is being proposed at this time. Additional building(s)will be placed on the site in the future based on market conditions. Water will be taken from the 12" water main in Swampscott Road. The fire suppression system for the building will be determined by the individual clients. a 5 PUBLIC WORKS A main street for the industrial subdivision is being proposed which is approximately 1,300 linear feet long. This street will serve Thermal Circuits as well as other buildings to be built in the subdivision in the future. HUMAN CONSIDERATIONS AESTHETICS AND VISUAL IMPACT The project will not change the character of the areas as it is consistent with zoning and existing development in the areas. The project meets or exceeds all the density regulations required by zoning. The project will be landscaped in a manner which will enhance the site as shown on the site plan. PARKS, FORESTS AND RECREATIONAL AREAS Part of the overall Business Park abuts conservation land and land owned by the City of Salem at the far westerly side of the site. The proposed project has no impact on this land. PUBLIC HEALTH The project will have no detrimental effect on the public's health. No significant changes in water quality, air quality and noise levels are expected. file:C:\SALBSSPK 6 0 ------ CL a 1- 4 it � v - - - Ij Y 4J 1 I II - - _ i I l l 1 11 1 : II i i + i �j , it 11.4 4 , 1' -- n, i1 ;li �till; Wiil i I iIt �, i it i ' E a a a o v a - a � `o g16e f I Q I I. i i f TW I � � O i I f I f ' I S f New England Restate Journal—Massachusetts—November 10-November 16, 1995 Massachusetts At Fafard ILE. &Dev's Technology Wayf` Thermal Cireuts begins 329000- s/f plant -in Salem SALEM,MA. —Mayor Neil e fiy' Harrington, secretary Mary T1 Padula of the Executive Office of Communities and Develop- ment,Thermal Circuits'direc- tors and employees, and Sa- lem business leaders gathered October 24 at Technology Way —Salem's new industrial park to break ground for Thermal _ h Circuits'manufacturing facil- ` ity. "With the development of Technology Way and this in- ) ' dustrial park,Salem can offer something few communities on the North Shore can offer- The city obtained a$268,559 parcel in the industrial park. clean,affordable land for com- Community Development Ac- ' Shown in photo (from left) mercial and industrial devel- tion Grant from the Massa- are:Salem city councillorJohn opment," said mayor chusetts Executive Office of Donahue; Thermal Circuits Harrington. "We are pleased Communities and Develop- president Anthony Klein;sec- that Thermal Circuits, a rap- ment and tapped its Federal retary Mary Padula, Execu- idly growing Salem manufac- Community Development tive Office of Communities & turer, chose to expand in Sa- Block Grant funds to purchase Development; Salem mayor lem as the industrial park's the road. The land owner, Neil Harrington; Salem city first tenant." Fafard Real Estate and Devel- councillor William Burns;Sa- The City ofSalem,with state opment, will repay the city�s lem city councillor Kevin and federal funds,is develop- CDBG funds as.a betterment Harvey;George Mazareas and ing a road and infrastructure fee as the company sells par- Jeffrey King of the Mass. Of- to serve the 29-acre,six parcel cels for development:- fice of Business Development. industrial park under devel- Public investment in this opment off Swampscott Rd. projectwill leverage significant Thermal Circuits, a Salem private investment in Salem, manufacturer of.heaters and as the city combines its ability heater assemblies, is con- to offer affordable, clean land structing a 32,000 s/f plant on with its ability to offer state Technology Way. When fully and local tax benefits through developed, city officials esti- its designation as one of the mate that the park could be Commonwealth's Economic home to 200,000-300,000 s/f of Target Areas. Thermal Cir- development and up to 1,000 cuits was the first beneficiary full-time jobs. The park has of Salem's ETA designation. the potential to generate The company received a pack- $230,000 in tax revenue an- age of local and state tax ben- nually. efits and purchased a four acre JUN-29-95 THU 08:57 AM FARARD R E & DEV. FAX N0. 1 508 875 8610 P. 01 /( \a-_�3y FAPARD REAL ES1i>;VE AND j7L=vl=1_OPM[>N'A' C<�1t1'_ 290 EUOT STnccr As[ttnrm, MAssna-crst-rrs 01721 �A�ARo S Tcc (50?)881-1600 T-/,x (508) B75-8610 Residential Salcs (508)8816661. Commcrtial$airs/basing (50S)881-1512 SEW ZU FAX NU,9PE'R `mMyIS &���/g7 mOF P2,17S (17N T,. TFI.S MESSAGE- JUN-29-95 THU 08;57 AM FARARD R E & DEV. FAX N0, 1 508 875 8610 P. 02 VIA FAX 508-744-5918 June 27, 1995 Mr.Biu Lester Salem City Planner Dear BiIL To provide an update: Item I Technology Way Howard originally gave you a completion date of September 1,including finish,do we need to maintain this date? The delay in the execution of the authorization allowing the mayor to execute the Purchase and Sales Agreement will impact our first payment. What do you believe will be a realistic date for this payment? Item 2 Thermal Circuits You've explained to us,that Technology Way is not contingent upon Thermal Circuits moving forward,we are concerned with bringing their site to subgrade within the time flame that they have requested,August 7th_ Either Howard or myself will follow up with you. Harry Mack cc: Howard Fafard 613—New England Real Estate Journal—Massachusetts—November 10.November 16, 1995 PrimeRetail Space Available Massachusetts Memory [ Cive, At Fafard R.E. & Dev's Technology Way Cambridge, Massachusetts Join Micro Center & Strawberries Thermal Circuits bemns Records & Tapes 32,000 s/f plant in Salem 2,800 s/f available Parking for 2555'5 cars SALEM, MA. -Mayor Neil �i �9, � Harrington, secretary Mary p For more information Contact: Padulao£the Executive Office �U of Communities and Develop- d t Ami Cipolla or Bob Schaye meat,Thermal Circuits'direc- tors and employees, and Sa- lem business leaders gathered October 24 at Technology Way -Salem's new industrial park t -tobreak ground for Thermal Circuits'manufacturing facil THE TRIAD GROUP ity. .per: � �' � � � l�� '�, � � "With the development of 930 Commonwealth Avenue South, Boston, MA 02215 Technology Way and this in * dustrial park,Salem can offer Tel: (617) 566-2703 • Fax (617) 264-6292 somethingfew communities on Brokers are welcomethe North Shore can offer: The city obtained a$268,559 parcel in the industrial park. clean,affordable land forcom- Community Development Ac- Shown in photo (from left) mercial and industrial devel- tion Grant from the Massa- are:Salem city councillor John opment," said mayor chusetts Executive Office of Donahue; Thermal Circuits I Harrington. "We are pleased Communities and Develop- president Anthony Mein;sec- Read These Excerpts From that Thermal Circuits, a rap- ment and tapped its Federal retary Mary Padula, Execu- i idly growing Salem manufac- Community Development tive Office of Communities & Our New Best Seller. turer, chose to expand in Sa- Block Grant funds to purchase Development; Salem mayor lem as the industrial park's the road. The land owner, Neil Harrington; Salem city first tenant." Fafard Real Estate and Devel- councillor William Burns; Sa- "Salemandthestirroundin The City of Salem,with state opment, will repay the city's lem city councillor Kevin "We found the ideal location in g and federal funds, is develop- CDBG funds as a betterment Harvey;George Mazareas and Salem-it's.New York to ace at areas offer great lifestyles-and a ,ftspace ing a road and infrastructure fee as the company sells par- Jeffrey King of the Mass. Of- manageable rates." great workstyle,too". to serve the 29-acre,six parcel cels for development. fice of Business Development. Jean Townsend and Jan John Clayman,Frelonic Corp. industrial park under devel- Public investment in this Weinshanker,Droll Designs opment off Swampscott Rd. project will leverage significant g Thermal Circuits, a Salem private investment in Salem, Minnerly-Keane of "Salem has great natural manufacturer of heaters and as the city combines its ability Hanneman sells "Our dealings are global in resources such as the ocean,but heater assemblies, is con- to offer affordable, clean land scope.Salem's banks and it also offers access to the strutting a 32,000 s/f plant on with its ability to offer state 28,500 s/f off/whse. professional services provide all natural resource that's most Technology,Way. When fully and local tax benefits through CANTON,MA.-Hunneman. the sophistication and resources important to us-people." developed, city officials esti- its designation as one of the Commercial Co. brokered the we require." Frederick Schmid,Crystal mate that the park could be Commonwealth's Economic sale of28,500s/f ofoffice/ware- S stems,Inc. home to 200,000-300,000 s/f of Target Areas. Thermal Cir- house space at 35 Pequit St.to David W.Ives,Northshore y development and up to 1,000 cuits was the first beneficiary F.M. Generator of Canton. International Insurance full-time jobs. The park has of Salem's ETA designation. CathyMinnerly-Keane,vice Services "City officials worked tirelessly the potential to generate The company received a pack- president of Hunneman, rep- to devise a creative Solution that $230,000 in tax revenue an- age of local and state tax ben- resented the owner,Davis Re- "The mayor and city officials made sound business sense." nually. efits and purchased a four acre ally of Canton. are accessible,,and city depart- Anthony A.Klein, ments respond Thermal Circuits - satisfactorily to large and small Bncerns ville tro "Salem's attitude foster Buy More With Your Allowance. Benneville Stroheker, business." Harbor Sweets Dick Pabich,Salem Inn "Our business can be anywhere. "We can conduct our business "HOW can we buy enough carpet to cover the Locating in Salem was a pure anywhere in the world,so why lifestyle choice...We like the not locate someplace pleasant?" office at the budgeted price. Do really need proximity to Logan-we can get soundproof partitions in the financial area. therefasterfrom Salem than Andy Wahtera, Can we make the offices a little larger?" from downtown Boston or National Productions When your business is moving into new Cambridge." space,the decisions about how this space will We hope to make more look and function often depend on the generosity Bob Carleton,Rykodisc businesses and customers aware of your tenant allowance. of the attractive market niche At Caswell Corporate Interiors,we here." specialize in interior construction—that's R.Michael Wall,American all we do! Our experience can help you Marine Model Gallery T - get the most out of your allowance. Let us show you how to buy Then Get A Copy And Write Your Own Chapter. V tk ' more with your allowance. Call us at Get the whole story.To receive a copy of a brochure showing 1 �? �� �� 617 894-4300. you place in Salem,please call the Planning Department. - s � as SALEM • MASSACHUSET-rs The place for your business CASWELL CITY OF SALEM PLANNING DEPARTMENT 0� . � ONE SALEM GREEN ` SALEM,MA 01970 Watermill Center 508-745-9595 1►tae�y 800 South Street �� '� �,�„-� c-�.mm - Waltham, MA 02154 EXTENSION 31 I - a?ov �M��N "'-- "° 617 894-4300 2w ! �5 The right combination of quality, schedule and price I I New England Real Estate Journal—Massachusetts—November 10-November 16, 1995—5B "d-%s s 1c h u s e t t •All Fall Time,Trained Sales Associates With Donahue for Campanelli to Office Max • 2A Hour,.Seven Day Availability Trammell Crow NE's All Associates Pursue and Attain M& Levels of Professional Education Glazer leases 65,000 s/f p= Honest,Friendly,Pmfesaian�semce is our Priority • Reputation of Excellence -AMS 369 South Street Pittsfield, MA 01201 Residential - Commercial - Investment a r ar nw r,. (413) 499-2330 Residential ® ( Commercial413) l Shyla Buffer,Don Buffer, CCIM,Keret Fox;Bob Plagemaa, commercial associates i j STOUGHTON – Larry high bay characteristics and the retailer's new office sup- Glazer, vice president at multiple tailboard docks serve ply distribution program. Trammell Crow NE,Inc.,rep- resented Office Max inthe leas- ing of 65,000 s/f of distribution space at 75 Campanelli Dr. Mark Donahue of Donahue Assoc. represented the land- lord, Campanelli, Inc., NEW BEDFORD . Braintree. Accordingto representatives 95' from Office Max, the location B6ST I was selected because of its ac- cess to major highways and �jqp t2a YOUR proximity to the greater Bos- ton area. 75 Campanelli Dr.'s 495 onove INTERSTATE AND INTERMODAL- Winokur named PROVIOEtiCE �5, LINK TO exclusive agent for + _ %(ao SOUTHEASTERN Alouette Plaza ss BELLINGHAM, MA. –JefNEW ENGLAND - frey Winokur,presidentofJ.H. NEW BEDFORD So Winokur Inc.,Scarsdale,N.Y., �rNAND THE has been appointed exclusive q q, gent for the sale of Alouette ro qGLOBAL Plaza on Rte. 126 at the Woonsocket, R.I. line. F • x The 100,000 s/f center on a 9% seven acre parcel is anchored by Ames and an Almacs Su- permarket. Winokur recently sold a 200,000 s/f office building in Rochester, N.Y. and a 90,000 nom'` _ ^3A l jl 5 slf Winn Dixie center in Mon- roe,Ga.He has contracts pend- ing to close on a 110,000 s/f A � �� �. • li �i�h'�yr,Ya m~q��,�I�l""�r-. mart in Fall River and a CVS net leased property in Framingham. DEEP-WATER HARBOR NEW BEDFORD REGIONAL AIRPORT NEW BEDFORD INDUSTRIAL PARK INTERNATIONAL PORT Oddo leases 6,000 s/f to F3 Software ware NEW BEDFORD FOREIGN TRADE ZONE N0. 28 rdbIom for N BURLINGTON, M . -I ECONOMIC DEVELOPMENT • Incentives Financing - • Community Economic Loan Fund movBURLINGTON,region's –Ina • Revolving Loan Fund • One-Stop Permitting/Licensing Service waretprogramo access ers' po ssoft- INCENTIVES PROGRAM ware programmers' pool, F3 • Seafood Industry Revolving Loan Fund Software Corp. has relocated CITY OF NEW BEDFORD its form automation software Write or call today for your copy of the City-of New Bedford firm from Ft.Lauderdale,Fla. ECONOMIC Economic Development Opportunity Sites Map... _ to its leased 6,000 s/f at 129 DEVELOPMENT Middlesex Rd. in Burlington, OPPORTUNITY SITES Mass. Samuel E.Oddo,inc.of Win- For More Information on Economic Development Opportunities,contact: l chester represented F3 Soft- ware and the owner,Nordblom Co. City of New Bedford City of New Bedford New Bedford Corporation,Inc. F3 Software was founded in Harbor Development Commission Office of Marketing•Room 221 181 Hillman Street 1985 as a subsidiary of BLOC 102 Pope's Island,Rt.6 City Hall•133 Williams Street New Bedford,MA 02740 Development Corp.to develop New Bedford,MA 02740 New Bedford,.MA 02740 Phone: (508)979.1635 forms design and production Fax:software applications for per- (508)9931770 F 508 979( ) 1496 (508)979.1604•Fax:(508)991.6148 Fax: (508)979.1734 I 06/27/95 19:13 $7413420 THERMAL CIRCUITS 191001/002 MPTHERMAL CIRCUITS Specializing In the design.engineering,and production of surface heaters,heaterassemblles,and infrared panel emitters 27 June 1995 1-508-744-5918 City of Salem Planning Department Attn: William Luster Dear Bill: Please find attached, an updated cost summary of Fafard's portion of our construction project. This report replaces my fax of 22 June. Again, keep in mind that this project has ballooned to $1,665,000, compared to an original estimate of$1,416,210. The appraised value has come in at $1,400,000, which has managed to bring this project to a full stop. Though Fafard Is a significant portion of this increase, we are also pursuing reductions in other costs. We must close this gap if we are to proceed. Please call Wednesday morning to advise us as to how your discussions with Fafard are progressing. Best regards, Tony Klein Tilermal ClrCults Inc.,4 Jerfersoh AVehue.Salem,MA 01970-2976 TelephOhe 600-606-NEAT(4320)Fax 500-741-3420 . I 06/27/95 19:14 '$7413420 THERMAL CIRCUITS 0002/002 r Thermal Circuits Inc. Swampscott Road Construction Project Fafard Portion Was Ju 994 Is Now U� Grading 50000 Sub-Grade 78501% Blast& Trench Work-__W21000 Utilities (W,S & D) 58350 Ain ities (W,S & D) 88540 =�I ae VAI Paving 45260 ish Grade & Paving 5 Landscaping 15 ndscaping �i7850 Parking Lot Lights 8000 rking Lot Lights 952D Supervision 10000 Supervision Included in above Engineering (4%) 7464 Engineering (4%) Included in above Contingency (10%) 18661 Contingency (10%) Included in above (If needed)) 212735 277964 21E 11,500 69 �QJW Geotechnical 14000 ® t)00 Loam Fill (Contingency) 14,000 212735 316446 These are latest quotations from Fafard, however, Fafard is no longer interested in doing this finishing work. ��Cy.ds� l.n.tN+ w.aaly 27 June 1995 Newbuild 1.wk3 1Ko , DNc� I CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT a WILLIAM E. LUSTER ONE SALEM GREEN City Planner 01970 (508) 745-9595, EXT. 311 FAX (508) 744-5918 SWAMPSCOTT ROAD INDUSTRIAL PARK FACT SHEET February 10, 1995 Project: The City of Salem, Thermal Circuits and Fafard Real Estate will develop a 29-acre industrial park on Swampscott Road. The park will house a new, 26,000 square foot manufacturing facility for Thermal Circuits. Funding: In order to complete the project, the City is using two sources of • funds: • Community Development Action Grant funds from EOCD (State) • Community Development Block Grant funds (Federal) Funds Needed to Complete Project: $450,000 Size of Industrial Park: 29 acres Number of Parcels in Industrial Park: Six parcels (each approximately 5 acres) Land Owner: Fafard Real Estate & Development Corporation Potential Build-Out of Park: 200,000- 300,000 square feet of industrial space Potential Tax Revenue: $260,000 when fully developed Potential Job Creation: Up to 1,000 full time jobs when fully developed SWAMPSCOTT ROAD INDUSTRIAL PARK FACT SHEET PAGE 2 OF 2 FEBRUARY 10, 1995 First Tenant/Owner: Thermal Circuits,Jefferson Avenue, Salem, MA About Thermal Circuits: Since its initial move to Salem from Beverly 25 years ago, Thermal Circuits has grown and prospered as a vital member of Salem's business community. This innovative manufacturer of surface heaters and heater assemblies has now outgrown its Jefferson Avenue facility and will expand in Salem. Thermal Circuits'Size: Approximately 26,000 square feet are needed in the new facility. Thermal Circuits will continue too operate out of the existing p st g Jefferson Avenue facility. Thermal Circuits' Investment in Facility: Approximately $975,000. Number of Employees: 80 employees, with plans to add 15 new employees in the coming months and additional growth expected in coming years Other: City will utilize its recently awarded Economic Target Area (ETA) designation to provide development incentives in the form of tax reductions to Thermal Circuits. The property tax financing plan and the remaining financial details will be presented to the Salem City Council at the next scheduled meeting. me\thermfct.sht OURVIEW ................................... Or riarrin `to17 May g shows his niche for development Members of Salem Mayor Neil J.Harrington's administrath deserve credit for their quick work in putting together the package that will keep an important business here and at the same time opens land off Swampscott Road to new development. A deal signed late last week with Thermal Circuits;a manufacturer of heater assemblies,commits the city to ' providing the infrastructure for a 29-acre parcel near the Maynard Plastics facilitynear the intersection of Swampscott Road and Highland Avenue:Thermal Circuits,which has outgrown its building on Jefferson Avenue,had wanted to stay in Salem for the convenience of its employees,but was having trouble finding suitable By.developing location within the city. Harrington,along with, niche areas, Salem Community Development Director William Luster and Can attract smaller` members of the city's businesses that legislative delegation,were quick to offer their help.Their Will enhance the efforts are expected to result overall economic in ahalf-million dollar package,combining existing mix in the.city.. : . federal grant monies and an expected grant from the state Executive Office of Communities and Development,that will help Fafard Real Estate develop the land it owns across the _ street from its Trader's Way property which includes a mix of commercial and residential uses. The result should be a new industrial park in the city that has the potential of accommodating several manufacturing firms employing hundreds of people. The administration plans to recover the cost of the infrastructure improvements through betterment fees levied on park tenants,but will also be seeking City Council approval for some tax incentives that helped them persuade Thermal . Circuits to stay in Salem.Although details of that offer have yet to be released,we hope councilors will give it due consideration since it is not often the city has a chance to add new •-. manufacturing jobs and expand its tax base. Hopefully too,the decision by Thermal Circuits to build a new,$1 million facility in Salem will persuade other small manufacturers to consider Salem when seeking new space. Salem will never be able to match the kind of development going on in Peabody's Golden Triangle,but by developing niche areas such as the Fafard property and the land along the North River canal,it can attract smaller businesses that will enhance the overall economic mix in the city. Nelson K.Benton III,Managing Editor INVESTMENT TAX CREDITS Locating at Swampscott Road, Salem entitles Thermal Circuits to a 5% investment tax credit Plant $975,000 (26,000 s.f. at $37.50 per s.f.) New Equipment $100,000 Total expenses $1,075,000 Exemptible expenses $1,075,000 Tax credit $53,750 Outside of Salem, Thermal Circuits gets a 3% investment tax credit. Plant $800,000 (Purchase of plant would not qualify for tax credit. Improvements to plant qualify.) New Equipment $100,000 Total expenses $900,000 Exemptible expenses $100,000 Tax credit $3,000 CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT WILLIAM E. LUSTER 4v6 o�� ONE SALEM GREEN City Planner z mT 01970 gid._-mak' jra (508) 745-9595, EXT. 311 svE��rvE FAX (508) 744-5918 Thermal Circuits Revised Incentive Package for Relocation to Swampscott Road February 3, 1995 Old Proposal New Proposal Savings Property Tax Relief $107,819.00 $231,621.00 $123,802.00' Land Cost 0.00 50,000.00 50,000.00" Site Work 69,000.00 50,000.00 19,000.00 Please see attached spreadsheet for 10-year tax increment financing plan. " $50,000 interest-free, deferred loan to be repaid upon sale of Jefferson Avenue property. Other Incentives • The City will fund a reuse analysis of the existing 4 Jefferson Avenue at the end of two years. Such study will determine the highest and best use of the property and design a marketing strategy for disposition of the site. • Salem Partnership will provide a one-year free membership to Thermal Circuits, and the Partnership will be actively involved in reuse of the site. Permitting Permitting will be done on an expedited basis. Such permitting can begin only after design plans are completed. Permits will be granted in one meeting each of the Planning Board and Conservation Commission. mc:\tc\incentive PROPERTY TAX BENEFITS AVAILABLE THROUGH TAX INCREMENT FINANCING 5-YEAR PLAN Current tax bill (base) $1,300 This is for the four-acre parcel which Thermal Circuits will develop. Tax bill after plant built $38,479 This is based on an assessed value of$1.15 million. Increment $37,179 TIF is applied to the increment. Year 1 Year 2 Year 3 Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Increment $37,179 Increment $37,179 Increment $37,179 Thermal Pays $5,018 Thermal Pays $8,736 Thermal Pays $16,172 Thermal Saves $33,461 Thermal Saves $29,743 Thermal Saves $22,307 Thermal pays 10% of increment Thermal pays 20% of increment Thermal pays 40% of increment plus the base tax bill. plus the base tax bill. plus the base tax bill. Year 4 Year 5 Year 6 Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Increment $37,179 Increment $37,179 Increment $37,179 Thermal Pays $23,607 Thermal Pays $31,043 Thermal Pays $38,479 Thermal Saves $14,872 Thermal Saves $7,436 Thermal Saves $0 Thermal Pays 60% of increment Thermal pays 80% of increment Thermal Pays entire tax bill. plus the base tax bill. plus the base tax bill. Total property tax exemptions over five years $107,819 PROPERTY TAX BENEFITS AVAILABLE THROUGH TAX INCREMENT FINANCING 10-YEAR PLAN Current tax bill(base) $1,300 This is for the four-acre parcel which Thermal Circuits will develop. Tax bill after plant built $38,479 This is based on an assessed value of$1.15 million. Increment $37,179 TIF is applied to the increment. Year 1 Year 2 Year 3 Year 4 Year 5 Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Increment $37,179 Increment $37,179 Increment $37,179 Increment $37,179 Increment $37,179 Thermal Pays $1,300 Thermal Pays $1,300 Thermal Pays $5,947 Thermal Pays $10,595 Thermal Pays $15,242 Thermal Saves $37,179 Thermal Saves $37,179 Thermal Saves $32,532 Thermal Saves $27,884 Thermal Saves $23,237 Thermal pays base tax bill. Thermal pays base tax bill. Thermal pays 12.5%of increment Thermal Pays 25%of increment Thermal pays 37.5%of increment plus the base tax bill. plus the base tax bill. plus the base tax bill. Year Year Year Year Year 10 Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Total Tax Bill $38,479 Increment $37,179 Increment $37,179 Increment $37,179 Increment $37,179 Increment $37,179 Thermal Pays $18,590 Thermal Pays $23,237 Thermal Pays $27,884 Thermal Pays $32,532 Thermal Pays $38,479 Thermal Saves $19,890 Thermal Saves $15,242 Thermal Saves $10,595 Thermal Saves $5,947 Thermal Saves $0 Thermal pays 50%of increment Thermal pays 62.5%of increment Thermal pays 75%of increment Thermal Pays 87.5%of increment Thermal Pays entire tax bill. plus the base tax bill. plus the base tax bill. plus the base tax bill. plus the base tax bill. Total property tax exemptions over ten years $231,621 INVESTMENT TAX CREDITS Locating at Swampscott Road, Salem entitles Thermal Circuits to a 5% investment tax credit Plant $975,000 (26,000 s.f. at $37.50 per s.f.) New Equipment $100,000 Total expenses $1,075,000 Exemptible expenses $1,075,000 Tax credit $53,750 Outside of Salem, Thermal Circuits gets a 3% investment tax credit. Plant $800,000 (Purchase of plant would not qualify for tax credit. Improvements to plant qualify.) New Equipment $100,000 Total expenses $900,000 Exemptible expenses $100,000 Tax credit $3,000 CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT WILLIAM E. LUSTER —� ONE SALEM GREEN City Planner 01970 i, j r (508) 745-9595, EXT. 311 FAX(508) 7445918 TO: Peter Caron, Chairman,Board of Assessors FROM: Bill Luster, ity Planner RE: TECHNOLOGY WAY --THERMAL CIRCUITS' ADDRESS DATE: December 13, 1995 Tony Klein, president of Thermal Circuits,the first company to locate at Technology Way, has requested that the company be assigned the address One Technology Way. It is my understanding that the company will be assigned an address of Three Technology Way. Is there a way to reconsider this matter or to devise a system of addresses at the industrial park that allows Thermal Circuits to be One Technology Way or some other desirable address? Mr. Klein believes, and we agree, that'as the founding company of the industrial park, Thermal Circuits deserves a prestigious address. As you know, the City of Salem went to great lengths to retain Thermal Circuits, obtaining state grant funds and offering tax benefits and low- interest loans in order to make it economically feasible to construct a new facility in Salem. Tony Klein and his associates at Thermal Circuits have formed a strong partnership with the City, and the company is a valued member of our business community. If there is anything that the City can do, I would appreciate it if you would inform Mr. Klein. Thank you for your continued cooperation in this matter. cc: Tony Klein V r CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT v��coxolr�o WILLIAM E. LUSTER 5� ONE SALEM GREEN City Planner 1 01970 7 a (508) 745-9595, EXT. 311 FAX (508) 744-5918 9`'C/MING WN TO: Tony Klein FROM: Bill Lust9dV RE: Build-out Analysis DATE: January 31, 1995 We have attempted to determine a maximum build-out for a four-acre site. The maximum foot print (ground floor) is 78,408 square feet. The maximum height is 50 feet. Thus, depending on the first floor height, three to four stories could be added. If four stories are constructed, the maximum size building would be 313,632 square feet (4*78,408). 1 THERMAL CIRCUITS -- BUILD OUT ANALYSIS Proposed lot area 4 acres 174,240 s.f. Maximum allowable lot coverage 78,408 s.f. This building requires: Open space 17,424 s.f. (10% of total proposed lot area) Parking 25,740 s.f. (assumes 78,408 s.f. building with 143 employees) Roadway & circulation 15,000 s.f. CT i a� 1s /MIMBW CITY OF SALEM. MASSACHUSETTS NEIL J. HARRINGTON MAYOR December 6, 1994 Anthony A. Klein, President Thermal Circuits 4 Jefferson Avenue Salem, M/A' 01970 /) Dear Nth I am writing to provide an update on our efforts to secure funding for the infrastructure improvements necessary to relocate Thermal Circuits to a new plant on Swampscott Road. As I am sure you know, the City considers this project one of our top priorities and has spent countless hours pursuing funding from state and federal sources. Currently, City Planner William Luster is working with Senator Frederick Berry to obtain a Community Development Action Grant (CDAG) from the Massachusetts Executive Office of Communities and Development (EOCD). Senator Berry is now arranging a meeting with EOCD Secretary Mary Padula at which you and the City will have an opportunity to advocate jointly for the award of a grant. I would also like to report that Michael Hogan, Executive Director of the Massachusetts Office of Business Development (MOBD), and MOBD Regional Director Jeff King have found our grant proposal compelling and have provided strong support to our efforts to keep Thermal Circuits in Salem. They understand the need to resolve your company's future location as quickly as possible and are working to promote our grant application with EOCD. Based on all of the time and effort being expended to bring this project to fruition, I am confident that we can work out an agreement that suits the needs and concerns of the EOCD, Fafard Real Estate and Development Corporation and, above all, Thermal Circuits. You are also aware of the Planning Department's activities with the U.S. Economic Development Administration (EDA). Although we are optimistic that the CDAG can be obtained, we have also continued to pursue federal funding. Recent discussions with the EDA office in Philadelphia have been positive and Bill Luster has spoken with Senator Kennedy's office to request their assistance in this process. SALEM CITY HALL • 93 WASHINGTON STREET • SALEM. MASSACHUSETTS 01970 • 508/745-9595 • FAX 508/744-9327 Anthony A. Klein, President December 6, 1994 Page 2 This two-track approach (pursuing State and Federal funding) is being undertaken because we are very aware of Thermal Circuits' need to make a decision soon. Thank you for your continued patience and cooperation and your interest in keeping your business in Salem. Sincerely, Neil J. amngton Mayor cc: John Donahue City Councillor Ward Three • 6�CONUIT�„�O 3 db �cC1INE WN CITY OF SALEM. MASSACHUSETTS NEIL J. HARRINGTON MAYOR August 11, 1994 William A. Fitzhenry U.S. Department of Commerce Economic Development Administration Thomas P. O'Neill, Jr. Federal Building 10 Causeway Street Boston, MA 02222 Dear Mr. Fitzhenry: The City of Salem is prepared to submit an application to the Economic Development Administration for $400,000 of Public Works and Development Facilities Assistance. The project which the City is proposing is construction of an access road which will create a new industrial park in Salem. If funded, this project will allow Salem to retain Thermal Circuits, a Salem-based manufacturer of surface heaters and heater assemblies with 63 full-time employees, as well as assist in attracting four other medium- sized manufacturing firms to Salem. Thermal Circuits has outgrown its current manufacturing facility and must move into an expanded plant by July, 1995. Currently, no suitable facility exists in Salem. However, the City has worked hard to find a parcel of industrial land that would be very suitable for Thermal Circuits. The owner of the land is Fafard Real Estate and Development Corporation. Discussions between the City, the land owner and Thermal Circuits have led to an understanding that Thermal Circuits will locate at this site and the land owner will create four additional four-acre development parcels, provided that the City can obtain Economic Development Administration (EDA) funding to construct a road and infrastructure. If this is done, the land owner will greatly subsidize the sale price of the parcel to Thermal Circuits. The land cost subsidy is vital because the total cost of constructing a new plant in Salem is estimated at $1.6 million while an existing facility outside of Salem can fit Thermal Circuits' specifications at a cost of $1.1 million. Without help in defraying a portion of the $500,000 difference of developing a new facility in Salem, the City will lose 63 manufacturing jobs and approximately $17,000 in tax revenue. A brief description of the project and its potential benefits is attached. We hope that you will review our preliminary proposal and forward a preapplication form to us as soon as possible. Sincerely, Neil J. Yaazrington Mayor SALEM CITY HALL . 93 WASHINGTON STREET • SALEM. MASSACHUSETTS 01970 • 508/7459595 • FAX 508/744-9327 City of Salem, Massachusetts--Thermal Circuits Proposal for Public Works and Facilities Program Salem Risks Losing Manufacturing Jobs: Thermal Circuits, a Salem-based manufacturer of surface heaters and heater assemblies, has outgrown its antiquated, three-floor, 27,000-square foot facility. To remain competitive and upgrade its production processes to fulfill new contracts, the company must move to a modern, single-floor, 30,000 square foot facility by July 1, 1995. No suitable site currently exists in Salem. If a new facility is not built, Thermal Circuits and 63 manufacturing jobs will leave the City. Salem's industrial base will take another blow, unless the City is able to defray the costs associated with of building a new plant at a currently undeveloped, four-acre site at Swampscott Road. Proposal for Public Works and Development Facilities Assistance: Through the Economic Development Administration's Public Works and Development Facilities Assistance Program, the City of Salem seeks a grant in the amount of $400,000 to construct an access road, install sewer lines and other utilities, and grade an undeveloped parcel of land. Because Thermal Circuits will locate at the site of these improvements, this $400,000 public investment will immediately leverage nearly $1.2 million in private investment and retain 63 manufacturing jobs. Fafard Real Estate and Development Corporation, owners of the property, has agreed to transfer four (4) developable acres to Thermal Circuits if the City is able to provide funds to construct an access road. This access road will not be solely to benefit Thermal Circuits - additional private investment will follow. With road and sewer lines in place, the surrounding industrially zoned property, also owned by Fafard Real Estate and Development Corporation, will be subdivided into four, four-acre industrial parcels. As a result, Salem will be able to offer existing manufacturing firms a place to expand and will compete more effectively for small manufacturing firms interested in relocating to our region. Without a grant from the EDA, Thermal Circuits will leave Salem. The cost of purchasing land and constructing a plant in Salem is estimated at $1.6 million, nearly $500,000 more than the estimated cost of purchasing and upgrading an existing facility which Thermal Circuits has found outside of the City. Exhibit A compares the cost of constructing a facility in Salem with the cost of purchasing an existing plant. How the Project Meets EDA Criteria: This project meets all of the EDA's criteria for funding public works projects at industrial sites. Specifically, the project accomplishes the following: 1. Creates an opportunity for the expansion of an industrial facility, Thermal Circuits. The company's existing business plan calls for 15 to 18 percent growth each year for the next five years. 2. Retains and generates jobs. If Thermal Circuits remains in Salem, 63 jobs stay as well. The company's growth projections translate into approximately nine to 12 new factory- level jobs per year, with additional administrative positions, for the next five years. 3. "Fulfills a pressing need of the area in which it will be located." In the short term, this project will sustain Salem's manufacturing base, keeping Thermal Circuits in the City. In- the long run, the construction of a road and utility lines at the site will make the area a viable location for growing Salem-based firms and will enable the City to attract companies that desire a location in Greater Boston. 4. Leverages significant private investment. Not only will Thermal Circuits immediately build a new, $1 million facility, the surrounding area will become an attractive location for other companies, as noted above. 5. Promotes both the development of new technology and exports. The company's New Technology Development Effort has recently spawned three products capable of producing sales beyond forecast, including exports, which currently account for 23 percent of the firm's total business. Investment in new and updated capital equipment and process improvements is targeted at $150,000 over the next two years. 6. State and local investment will accompany the EDA's investment if Salem is designated an Economic Target Area by the Commonwealth of Massachusetts. Designation will enable Salem companies to qualify for investment tax credits and corporate income tax credits from the Commonwealth and property tax credits from the City. An announcement regarding ETA selection is expected in September. 7. The prospective tenant and developer are committed to begin construction in a timely manner. Time is of the essence for Thermal Circuits; the company must be in a new facility by July, 1995. Economic Development Benefits for Salem: This project advances several elements of Salem's economic development agenda. It retains and creates good jobs for local residents, sustains Salem's manufacturing base and serves a valuable "corporate neighbor", Thermal Circuits, an innovative firm that invests in its workforce. Maintaining a diverse economic base is crucial to Salem's future. While the tourist trade and service sectors are strong, Salem's industrial base has eroded significantly. In 1983, the City was home to 4,566 manufacturing jobs. By 1992, that number fell to 2,424 jobs -- a decrease of 46.9 percent. Exhibits B and C depict Salem's changing employment base. Salem faces several challenges in trying to maintain its industrial base. Unlike other cities in the region, Salem does not own any industrial land and cannot package attractive deals for potential developers. Nor is there significant privately-owned industrial property available in the City. Salem's existing small manufacturers cannot find adequate facilities as they grow, and many outside firms do not consider out.. City a viable location for that reason. A small city such as Salem might not be able to compete for giant manufacturing concerns, but we are confident that, with better facilities, we can be an attractive option to small and medium-sized industrial firms. The development of a new Thermal Circuits plant at Swampscott Road represents a rare and outstanding opportunity to improve Salem's industrial facilities. Thermal Circuits' expansion will generate high quality, stable jobs for local residents of diverse levels of skill and education. The average length of service at the company is 14 years. Salem wants to remain the home of a company that continually invests in the skills of its workforce. At Thermal Circuits, employees enjoy specialized training -- the company has already invested more than $42,000 in training programs and continues with plans to upgrade workers' skills and remain competitive in a highly specialized industry. Exhibit A The Cost of Building a New Thermal Circuits Plant in Salem Swampscott Road Land Acquisition and Site Work: Item cost Real Estate $65,000/acre ' 4 acres = $260,000 Grading $50,000 Paving $45,260 Utilities $58,350 Parking Lot Lights $8,000 Contingency (less real estate) 10% $17,600 Engineering (less real estate) 4% $7,000 Supervision $10,000 $456,210 New Building Construction: $37.50/sq. ft. ' 30,000 = $1,125,000 Turn-key Electrical Build-Out4$ 5.000 Total $1,626,210 Comparison: Purchase existing 32,000 sq. ft. facility (outside Salem) $900,000 Upgrade/Build-Out $240,000 Total $1,140,000 Premium to Build New Facility in Salem $486,210 Exhibit B Changes in Salem's Employment Base: 1982 to 1992 Total Employment Breakdown by Industry Salem-- 1982 (4.7%)Finance,Insurance&Real Estate (27.4%)Manufacturing (24.4%)Services (4.8%)Transportation/Communication/Utilities (3.0%)Construction (12.3%)Govemment (23.3%)Wholesale&Retail Trade 1982 INDUSTRY #JOBS Manufacturing 5,136 Finance, Insurance & Real Estate 888 Services 4,570 Government 2,305 Wholesale & Retail Trade 4,373 Construction 565 Transportation/Communication/Utilities 899 Total Employment Breakdown by Industry Salem-- 1992 (5.8%)Finance,Insurance&Real Estate (38.8%)Services (13.4%)Manufacturing (4.3%)Transportation/Communication/Utilities (2.1%)Construction s� (13.2%)Government (22.5%)Wholesale&Retail Trade 1992 INDUSTRY #JOBS Manufacturing 2,424 Finance, Insurance & Real Estate 1,040 Services 6,989 Government 2,379 Wholesale & Retail Trade 4,053 Construction 370 Transportation/Communication/Utilities 779 Source: Massachusetts Department of Employment&Training Exhibit C Decline in Salem's Manufacturing Jobs: 1980 to 1992 Decline in Manufacturing Jobs Salem: 1980 to 1992 6 6 �\ 0 C 0 N N q 0 L E Z 3 2 1980 1982 1984 1986 1988 1990 1992 Source: Massachusetts Department of Employment&Training City of Salem, Massachusetts -- Thermal Circuits Proposal for Public Works and Facilities Program Salem Risks Losing Manufacturing Jobs: Thermal Circuits, a Salem-based manufacturer of surface heaters and heater assemblies, has outgrown its 27,000-square foot facility. To remain competitive and proceed with plans to upgrade its production processes, the company must move to a modem, 30,000 square foot facility by July 1, 1995. No suitable site currently exists in Salem. If a new facility is not built, Thermal Circuits and 63 manufacturing jobs will leave the City. Salem's industrial base will take another blow, unless the City is able to defray the costs of building a new plant at a currently undeveloped, four-acre site at Swampscott Road. Proposal for Public Works and Development Facilities Assistance: Through the Economic Development Administration's Public Works and Development Facilities Assistance Program, The City of Salem seeks a grant in the amount of$400,000 to construct an access road, install sewer lines and other utilities, and grade an undeveloped parcel of land. This $400,000 public investment will immediately leverage nearly $1.2 million in private investment. Fafard Real Estate and Development Corporation will give the four-acre parcel of land to Thermal Circuits, which will then construct a $1 million plant. Additional private investment will follow. With road and sewer lines in place, the surrounding industrially zoned property, also owned by Fafard Real Estate and Development Corporation, is more likely to be developed. Salem will be able to offer existing manufacturing firms a place to expand and will compete more effectively for small manufacturing firms interested in relocating to our region. Without a grant from the EDA; Thermal Circuits will leave Salem. The cost of purchasing land and constructing a plant in Salem is estimated at $1.6 million, nearly $500,000 more than the estimated cost of purchasing and upgrading an existing facility in another city or state. Exhibit - - A compares the cost of constructing a facility in Salem with the cost of purchasing an existing plant. How the project meets EDA Criteria: We believe that this proposed project meets all of the EDA's criteria for funding public works projects at industrial sites. Specifically, the project accomplishes the following: 1. Creates an opportunity for the expansion of an industrial facility, Thermal Circuits. The company's existing business plan calls for 15 to 18 percent growth each year for the next five years. 2. Retains and generates jobs. If Thermal Circuits remains in Salem, 63 jobs stay as well. The company's growth projections translate into approximately nine to 12 - new factory-level jobs per year with additional administrative positions. 3. "Fulfills a pressing need of the area in which it will be located." In the short term, —" this project will sustain Salem's manufacturing base, keeping Thermal Circuits in . the City. In the long run, the construction of a road and utility lines at the site will make the area a viable location for growing Salem-based firms and will enable the City to attract companies that desire a location in Greater Boston. 4. Leverages significant private investment. Not only will Thermal Circuits build a new, $1 million facility, the surrounding area will become an attractive location for other companies, as noted above. 5. Promotes both the development of new technology and exports. The company's New Technology Development Effort has recently spawned three products capable of producing sales beyond forecast, including exports, which currently account for 23 percent of the firm's total business. Investment in new and updated capital equipment and process improvements is targeted at $150,000 over the next two years. – 6. State and local investment will accompany the EDA's investment if Salem is designated an Economic Target Area by the Commonwealth of Massachusetts. Designation will enable Salem companies to qualify for investment tax credits and corporate income tax credits from the Commonwealth and property tax increment financing from the City. An announcement regarding ETA selection is expected in September. 7. The prospective tenant and developer are committed to begin construction in a timely manner. Time is of the essence for Thermal Circuits; the company must be in a new facility by July, 1995. Economic Development Benefits for Salem: This project advances several elements of Salem's economic development agenda. It retains and creates good jobs for local residents, sustains Salem's manufacturing base and serves a valuable "corporate neighbor", Thermal Circuits, an innovative firm that invests in its workforce. Maintaining a diverse economic base is crucial for Salem's future. While the tourist trade and service sectors are strong, Salem's industrial base has eroded significantly. In 1983, the City was home to 4,566 manufacturing jobs. By 1992 that number fell to 2,424 jobs -- a decrease of 46.9 percent. Exhibits B and C depict Salem's changing employment base. Salem faces several challenges in trying to buttress its industrial base. Unlike other cities in the region, Salem does not own any industrial land and cannot package attractive deals for potential developers. Nor is there significant privately-owned industrial property available in the City. Salem's existing small manufacturers cannot find adequate facilities as they grow, and many outside firms do not consider our City a viable location for that reason. A small city such as Salem might not be able to compete for giant manufacturing concerns, but we are confident that, with better facilities, we can be a great home to small and medium-sized industrial firms. The development of a new Thermal Circuits plant at Swampscott Road represents a rare and outstanding opportunity to improve Salem's industrial facilities. Thermal Circuits' expansion will generate high quality, stable jobs for local residents of diverse levels of skill and education. The average length of service at the company is 14 years. Salem wants to remain the home of a company that continually invests in the skills of its workforce. At Thermal Circuits, employees enjoy specialized training -- the company has already invested more than$42,000 in training programs and continues with plans to upgrade workers' skills and remain competitive in a highly specialized industry. MINNOW —4 12:32 $'7413420 THERMAL CIRCUITS IA002/003 City of Salem,pg 2 August 05.1994 Swampscott Road Lantl Acquisition and Site Woric MM Sit Real Estate $65,000!acre x 4 acres= 260.000 Grading 50,000 Paving 45,260 Utilities (W, S, &D) 58,350 Panting Lot Lights 8.000 Contingency(less real estate) 10% 17,600 Engineering ( ) 4% 7,000 Supervision 10,000 456,210 New Building Construction: $37.50/square foot x 30,000= 1,125,000 (not including tum*key electrical) Tum-key Electrical Build-Out 45,000 Grand Total 1,626,210 Comparison: Purchase of Existing Facility (Outside Salem, 32,000 sq. ft.)Est. 900,000 Upgrade i Build-Out 240,000 1,140,000 Premium to Budd New Facility in Salem X14 Thermal Cirr its Inc..4 JeKer,,m A"rwa.Salem.MA 91970-2976 Teioonone 8911-00/-HeAT0320)Fax 509-7413420 Changes in Salem's Employment Base: 1982 to 1992 Total Employment Breakdown by Industry Salem— 1982 (4.7%) Finance, Insurance& Real Estate �. (27.4%) Manufacturing (24.4%) Services (4.8%) Transportation/Communication/Utilitie (3.0%) Construction (12.3%) Government (23.3%) Wholesale & Retail Trade 1982 INDUSTRY #JOBS Manufacturing 5,136 Finance, Insurance & Real Estate 888 Services 4,570 Government 2,305 Wholesale & Retail Trade 4,373 Construction 565 Transportation/Communication/Utilities 899 Total Employment Breakdown by Industry Salem— 1992 (5.8%) Finance, Insurance & Real Estate (38.8%) Services `<a (13.4%) Manufacturing (4.3%) Transportation/Communication/U (2.1%) Construction / (13.2%) Government (22 5%)Wholesale & Retail Trade 1992 INDUSTRY #JOBS Manufacturing 2424 Finance, Insurance & Real Estate 1040 Services 6989 Government 2379 Wholesale & Retail Trade 4053 Construction 370 Transportation/Communication/Utilities 779 Source: Massachusetts Department of Employment&Training Decline in Manufacturing Jobs Decline in Manufacturing Jobs Salem: 1980 to 1992 6 N o w 5 M 4 N J n o E H 3 z 2 1980 1982 1984 1986 1988 1990 1992 CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT WILLIAM E. LUSTERr;. ONE SALEM GREEN City Planner ?� 01970 E � (508) 745-9595, EXT. 311 � °^ :` FAX (508) 744-5918 �nme ro� TO: Anthony Klein, Thermal Circuits, Inc. FROM: Beth Debsld, Assistant City F64) RE: Potential Relocation Sites DATE: October 27, 1993 ---------------------------------------------------------------------------------------------------------------------- I enjoyed our recent meeting to discuss future plans for Thermal Circuits, Inc. As a follow-up to our meeting. I have prepared a packet of information on potential relocation sites in Salem for your company. Attached please find a listing of the four properties that we discussed as possible relocation sites for Thermal Circuits, Inc. I have included information on lot area, zoning, owners, and Assessors Map and Lot numbers. i have also attached the Assessors Map for each property. As I stated at our meeting, the City of Salem will assist you in any way we can in order to ensure that Thermal Circuits, Inc. remains in Salem. If you have any questions regarding this information, or need any further assistance, please do not hesitate to contact me at 745-9595, ext.311. esd/bd/tc.sites POTENTIAL RELOCATION SITES THERMAL CIRCUITS, INC. 1.Address: 63 Flint Street Owner: Allied Realty Trust Lot Area: 2.55 Acres Assessors Map: 26 Assessors Lot: I Zoning: Business Park Development (BPD) 2.Address: 71 Loring Avenue Owner: Sylvania Electric Products, Inc. Lot Area: 31.9 Acres Assessors Map: 32 Assessors Lot: 20 Zoning: Industrial (I) 3.Address: 180-220 Bridge Street Owner: General Mills Fun Group Lot Area: 9.64 Acres Assessors Map: 35 Assessors Lot: 27 Zoning: Industrial(I) 4.Address: 58 Swampscott Road Owner: Howard Fafard Lot Area: 29.53 Acres ,Assessors Map: 7 Assessors Lot: 63 Zoning: Business Park Development (BPD) esd/bd/sites.tc lr CITY OF SALEM, MASSACHUSETTS PLANNING DEPARTMENT GID WILLIAM E. LUSTER ONE SALEM GREEN City Planner 01970 (508) 745-9595, EXT. 311 FAX (508) 744-5918 TO: Anthony Clien, Senior Vice-President FROM: William E. Luster, City Planner RE: Thermal Circuit, Inc. - 4 Jefferson Avenue DATE: October 19, 1993 I enjoyed our recent meeting regarding the future of Thermal Circuit, Inc. as it relates to your Jefferson Avenue Plant. As I stated at the meeting, the City stands ready to assist in any way possible in keeping jobs at this site or in another site in Salem. I have compiled the following information on your current site and the City review process for the expansion of your present site. In addition, I have included information on City and State sponsored financing opportunities available to you for the expansion of your present site or for relocation to a new site within the City of Salem. Lot Size: 27,470 s.f. Zoning District: R-2 (Two-family residential district.) Allowed Uses: (1) All uses permitted in R-C and R-1 Districts, except agricultural, horticultural and floricultural operations. (2) Two-family dwellings, detached or attached. (3) Rooming and boarding of not more than two (2) persons. (4) Historic buildings open to the public. (5) Museums (6) Private garages and other accessories uses and buildings, provided that such uses are clearly incidental to the principal use. 7 Buildings and facilities for elderly housing projects built under the jurisdiction of the Salem Housing Authority and financially aided by either the U.S. Public Housing Administration and/or the Commonwealth of Massachusetts Department of Commerce - Division of Public Housing. As you can see from the above list, and as we discussed at our recent meeting, the current use of this property is not an allowable use, and is therefore considered a non-conforming use. The current zoning which is R-2 could be changed to more appropriate zoning which would allow the current use by-right. A zoning change can be initiated by you as the owner to the City Council. The City Council and the Planning Board would then hold a joint public hearing to discuss the proposed zoning change. Following the public hearing, the Planning Board has twenty-one (21) days to make a recommendation to the City Council on the proposed zoning change. The City Council has ninety (90) days from the public hearing to take action on such zoning change. I am not sure what the neighborhood comment would be on such a change, however, if it would ensure that the site remain in use as Thermal Circuit, I am sure that the City would recommend to the Planning Board that a zoning change from R-2 to a Business or Industrial zone is appropriate. The second option available to you for the expansion of your current site would be to apply for a Special Permit.from the Board of Appeal to allow for the continuance of a non-conforming use. As stated in Section "9-4 of the Salem Zoning Ordinance, the Board of Appeals may authorize the issuance of a special permit for a change to another non-conforming building or use or its alteration or enlargement, provided that the Board finds that the use as changed, altered or extended will not depart from the intent of the Zoning Ordinance and its prior use or degree of use; provided that such building or use is neither increased in volume nor area unreasonably." Again, it will be interesting to see the comments from the neighbors, however, I am confident that a well planned and sensitively designed addition on your existing site would have City support. In addition to the Board of Appeals process, any addition or alteration to the current building would also have to go through the Site Plan Review Special Permit process through the Salem Planning Board. The Site Plan Review process allows the Planning Board an opportunity to review all non-residential projects greater than 10,000 s.f. The Planning Board reviews issues related to site design, parking, landscaping, and architectural style of the building. I would be happy to review any plans you have for your location while they are in a preliminary stage to give our input into issues the Planning Board is typically interested in. I would also like to take this opportunity to tell you about some of the financing opportunities the City can assist you with. Currently, the Salem Redevelopment Authority is in the process of developing a Small Business Loan Program with several local lending institutions located in the City. It is anticipated that this program will have over one million dollars available to loan to new or existing businesses wishing to locate or expand in Salem. l In addition to the financing opportunities through the City, there are two State funded programs that could be utilized by your company. The Massachusetts Thrift Fund brings worthwhile community reinvestment projects together with smaller institutions who may lack the capacity or technical expertise to finance eligible projects alone. The Massachusetts Thrift Fund offers loans at market rates for the following activities: Real estate mortgages; Machinery and equipment loans; Working capital; Product development loans; and Construction loans and bridge financing. A second State agency that can offer financial assistance to your business is the Massachusetts Industrial Finance Authority (MIFA). MIFA offers tax-exempt industrial revenue bonds for expansion of manufacturing facilities. Finally, there were two other issues that were raised at our meeting that I would like to address. First, the issue of off-site parking. As I mentioned during our meeting, if the City were to purchase property in the surrounding neighborhood, the City would be very amenable to discussing the option of off-site parking for the use of Thermal Circuit, Inc. The provision of off-site parking would allow Thermal Circuit, Inc. a greater area for building expansion of the current site. The last issue I would like to address is the City's Recycling Center located across from your site on Jefferson Avenue. The City has recently begun an extensive curbside recycling program and due to its success, the City will close the Recycling Center on Jefferson Avenue and remove the collection bins by December 1, 1993. I would like to reiterate that the City will assist you in any way possible in keeping your business in the City of Salem. I would be happy to meet with you to discuss the City's new loan program and other possible financing options for your business as well as the City review process for any renovation or expansion of your business. Please contact me at (508) 745-9595, ext. 311 to arrange a meeting at your convenience. cc: Mayor Neil J. Harrington jmlbdU6cmnel.m= U.S. Economic Development Administration Public Works and Development Facilities Assistance Fact Sheet Contact person: Linda Cruz Cornall, regional counsellor (215) 597-7896 Regulations for Industrial Parks & Sites: A. EDA assistance is provided for public works and development facilities that will serve industrial parks on sites owned by public entities or non-profit organizations B. Financial assistance for public works and development facilities to serve privately owned industrial parks or sites may be considered, provided that one or more of the following conditions are met: 1. The private developer has secured binding commitments from industrial tenants for the use and occupancy of a significant portion of the land to warrant participation in the project, and the sale price of the land would not be raised as a result of the facilities assisted under the Act. 2. Public works facilities to be assisted will serve primarily a publicly owned industrial park or site or any other public purpose and only incidentally will serve privately held industrial land. 3. The owner or operator of a privately owned industrial park or site will enter into an agreement with the applicant(the City) subject to approval by EDA that for a reasonable length of time satisfactory to the EDA he/she will sell his/her unoccupied land at the fair market value existing prior to its improvements by the public works and development facilities project. 4. The land to be served is held by an industrial firm or firms committed to construct or expand plant facilities which will employ the unemployed and underemployed in the area. 5. The project will serve portions of a privately owned industrial park occupied by industrial firms, which requires the availability of public works facilities in order to increase or expand their operations and employment. However, participation in such projects generally will be limited to serving the requirements of the identifiable users,unless the owner or operator commits to the requirements of condition 93 above. 't & of the that the Assistant Secretary deter- ih-related facilities unless IDA Assistant Secretary bas Valved the re- with the reelamstion aspects mines that the Project meets the re- rmines that: Quirement of paragraph (bXU of this Project The proposed facility is fmmedi- section. (b) Financial assistance for Public gtdtements of 9305.65(d) and this necessary W the retention, ex- (Department Con�erce organleaGoa works and development facilities to part, ion necessary sarablishment of an idents. serve privately owned lndustriel parks (3e PR 2272.Jan.23.1973.as amended at 40 Cn or esta l or lent of anial eater- ceded)), as amended (40 PR 56705, es or sites may be eonsldered. provided PR Some.Dec. sl. 1915:42 PR 00910.Nov. which has algindusnt emptor. log PR860,Tan.5.1961] One or more of the following Cord1- 3o. 1977: 45 FR 44258 July 1, 1930: 45 FR 6 potential in relationship to the tions are met: 74900.Nov.]S.19601 N of the facility (job/cost ratio of (1) The private developer has se- 930643 industrial patio and sites. m IPO or less to one job—in calculs4 cured binding commitments from ln- 9 SOL" Tourism and raroatian- t 0 ratio. EDA will not Consider (a) Financial assistance is provided dustrial tenants for the use and occu- (a)An applicant Ouallned under the diect of construction employment for public works and development So.- panty of a sufficient Portion of the Act. which Is actively cooperating in employment in the operation of eilities which will serve ind=U.W land to warrant Participation In the the implementation of a oomprehen- aealth facility): parks on sites owned by Public entities project,and the sale Price of the land give tourism development Program and The proposed project is the first or nouprofit organizations where the would not be raised as a result of the which is able to demonstrate its caps- rity in the overall Eronomic De- purpose of such assistance is to Pro* facilities assisted under the Act. binty to undertake and administer a pment Program (except for PWIP vide sites for new industries In order to (2) public works facilities to be as- project in the tourism and recreation he area end accelerate the economic development sigied will serve Primarily a.pub" geld,may be eligible for assistance for acts under;305.4)of t ¢)integral Part of the the area tsand process of the community.The follow- owned industrial park or site or any tourism and recreation Projects. wof the projected Plan for Iona. Ing its' In addition to those other public purpose, and only incl- (b)Tourlsmf and recreation Projects- LU economic development: contained in Part 314,subpart P. must dentally, will serve privately held in- except projects receiving assistanoe LL)) The economic prodeveosed facility meets aD• be satisfied for such assistance. dastriat land. under Title S of the Act. or Public a mate accreditation art meet and (1) options held by eligible aPPli- (3) The owner or operator of a pri- Works impact program (PWIP) E) The lack of medical facilities is cants to Purchase land for industrial vately owned industrial park or site projects in wblch the tourism or recre- p)udy hampering the implements- parks and sites must normally be exec- will enter into an ai�ent with the atfon aspects are incidental to the as- 0 of economic development pro- eised prior to construction of the applicant,subject to approval by IDA, pects which meet the criteria set forth as of the community in Which the project. that for a reasonable length of time in 6 305.4 of this Dart, must meet the LL o eco f tWilbe located or o[the broad- (2) The applicant owners or opera- satisfactory to EDA he Will sell his un- following requirements cD&a Dialing and development did- tors of an industrial Dark or site must occupied land at the fair market value (1)There must be an overall Plan for IL s in which the community is locab conversant not to sell, lease, or other- existing prior to its improvement by development of the tourism Potents' wise make any part of such premises the Public works and development fa- of the area In Which the project Is to ca� EDA may consider funding available for occupancy by any Person. efhties Project. be located on a scale sufficient to air M sects which do not meet all of the firm.. or entity, unless the occupant (4)The land to be served is held by tract vlsitora from outside the area. drements of paragraph (b) of this first furnishes to the applicant, for - an industrial firm or firms oommitted (2)The project must be a multifacet- ion— transmittal to IDA,properly executed to construct or expand Plant facilities ed tourism complex or an integral and )For clinics and outpatient faeil. IDA forms: which will employ the unemployed essential part thereof,including facM- on Indian reservations H the Pro- (1)Wdenofng the assurance of such and underemployed in the ares, ties attractive to varied age groups and x) project meets the requirements occupant to comply with the Civil (5)The project will serve Portions of opportunities for both active and Pes- wagrapbs(bXS)and(bX4)of this Rights Act of 1964.and a Privately owned industrial Park oe- sive remotion.projects which are not m ion: Ui)Evidence that such occupancy is copied by Industrial firms, which re- related to development of a varied u? ) Por clinics and outpatient Iseult- not in violation of the relocation pro- quire the availability of public works tourism complex.brit are of local value ui located in neighborhoods with a h1bition of section 202(b)(1) of the facilities in order to increase or only. such as Community swimming dficant number of disadvantaged public Works and EconomicCoIb Develop- expand their oPeratloas and employ- Dor munlcipsl golf courses. will cons if the proposed Project meets meat Act Of 1965, as amended, ee meat. However. Participation in such (Snot be eligible. requirements of Paragraphs (b)(3) 4 309.3 of this chapter.) Projects generally wit be limited to (3)The applicant must show that. (b)(4)of this section: (3)1Reservedl serving the requirements of the identi- tent of tourism and m) in exceptional dreumstames.for (4)public works assistance for direct fiab le users,unless the owner or oper- (i) Development Mer types of Projects Which other- site improvement or Preparation of ator commits himself to the require- recreation potential offers the arily m: meet the requirements of para land may be Considered only Where it menta of paragraph(bX3) of this sen- opportunity for economic growth:or (i) Development of tourism and m ph (b)and for which the Assistant is for the Purpose of reclaiming useless tion. retary has waived the requirement or uneconomic land in order to enable - (W Land assembly p7Meets and other recreation Potential will result in omit suagraph (b)(1)of this section: or it to become available for long-term projects invoMa9 the acauis(faan of niffcant broadening of the economic :f For Projects for which EDA is Productive use, where ao other suite- IandJor sale to private 13artiea-Where base. plementing assistance from the De- ble laud is more readily or economical- the purpose of the Project is to assem- (c) Grants may be Provided for the !inert of Health and Human Serv- ly available, and Where the Proposed ble land for subsequent resale to Dri- construction of faclifttes which Will 111- for construction,renovation or al- reclamation is for the Prlmw7 benefit vate parties in order to attract buss- Unwitely be leased or rented to Private A1011, of health facilities, i< the of the entire community. In such Ceases to an economically distressed profit making orgautaatfons,subject to A1011, of paragraph b)above and the siotherwise meet the require- te preparation Edstrictly � 9 cCmmnec d sistance f such projects Droarea, ZDA May Provide fins" i vided Assistant Seereterms.and Condt acceptable to the 692 693 direc r a,pr Project In dither the Cur- (b)Costs including reh�° w menu title he rsnr obj v ft in the incurrence ,ai --- - r s prior period. quisiWon,includhag costa of deeds.WWe The major objectives m the incrhr7'ence event the bonds are to be sold at com- searehftitie clearing. and appropriate of longg-term debt by a wilt of local petitive bidding.the Financial Advisor I UaatlowaMe project 00" surveys may also be allowed as eligible government are: shall make a recommendation as to SoLowing ousts are not allow- project costa. (I)The adequacy,of the loan and the the date on which bids are to be con- ic)When financial asalst^^ra is pro- assurance What funds wa1 be sidered. T recommendation shall be Bad debts. including any lasses vided under the Act for a project, based on an estimate Of expected g from uncollectible accounts tandem to Or interconnected with- a when The ad. market conditions. having given due (iii The arrangement of the loan so consideration to such factors as the N(her Balms,and related Costs project funded by another Federal that It blends into the existing overall general trend of the bond market.con- m Costs resulting from changes m agency.costs for land on which to Bedon- debt structure. fliet with offerings of other such divi- :t scope. _ stluet both facilities may be included (110 The issuance and sale of bonds 'ont ributlons and donations. in the IDA assistance. at the lowest interest cost consistent dons and other known relevant foo- Entertainment,including costs of (d)Land assembW PrOjeets and other with all other considerations. tors. ^menta,social activities,and incl- yrgjeets i volvbW the acquisition of (2) Services normally performed by <Vl)Notice of adlG If required in the 1 costs relating thereto. land for sale to Private Parties.Where Advisor are: marketing of bonds, the Financial Ad- theFiaes and penalties. Indudin8 the original purpose of the project is (1)Suroev offiaareial resaaroea The visor will expected to prepare and resulting from violations of, or to acquire land for sale to private Par- Financial Advisor,shall make a survey submit the f following: -e to comply with.Federal,State, ties.costs associated with the aequisi- } the hTe..,,+.1 resources of the Lssu- (a) Notice of Sale, into scat laws and regulations. Won of land and with site improve• which shall be incorporated all noes- CC Governor's expenses. including (sent(including demolition)may be el- - mg subdivision to determine the sary Information as to time and place W alaties and eaDeuses of the Office igidle If the Assistant Secretary deter- extent of its borrowing Capacity. Such of the bond sale, the conditions under W s Governor of a es of the chief mines that: a survey shall include an analysis of which the bonds shall be amended, U itive of a political subdlviskwn (1) Federal assistance for land as- the existing debt aWn[x1II'e 8S cum- and the Leans and conditions Of deliv- wInterest and other financial costs aembly is necessary for the successful Pared to existing and projected cry. F s specifically allowable by IDA. implementation of the project: sources of income -which may be (b)Prospectus:Which shall be fully )= pledged to secure payment of debt descriptive of the bonds offered and p Legislative expenses, Includm$ (2) Significant economic develop- service. which shall additionally contain eom- u nes and other expenses of the menti impacts will occur and that Efi) ir'iaanC£al Plan On the basis of plate information on the issuing subd!- W: legislature or similar ictal gov- there are plans to use the land within information developed by the survey. vision. O rental bodies, whether incurred a reasonable length of time: i bli � W3¢Financial Advisor a1e11 establish s arposes of legislation or executive C3) Costs for acquisition of the land (c) Uniform Sid Form: Containing ning w kion. are not Prohibitive; financial plan which shall be submit- provisions recognized as standard by . A Under-recovery Of costs under (4) The grantee has the capacity to ted to the governing body of the lesu- the muaielpal securities industry. .t agreements. market the land and to reuse success- ing subdivision. The financial plan (d)Bond Rating.If proper and desir- fullythe proceeds Ot the sale: t1 alhall be complete as to maturity able, to submit to the national bond .sq u.>s,,.mwy expeoaes as Aglde (5)The sale cost f the land and the ! schedule and estimated interest rate rating agencies financial and economic muted mat& grantees arrangements for the sale of the proposed bonds and shall ren data necessary to obtain a rating On fleet the resulting overall amount of the proposed Issue. igible proled costs for preliminary aro adequate: :nabs include specific casts, except debt service requirements as compared (vii)Bond sale—aroard of bonds.The CCOstrudlon Cost& for nenousto- land will be place of the sale Of the to existing and projected income Financial Advisor shaft be represented land wio be placed hh a escrow ao- sourem at the bond sale by experienced per- t' engineering of special services count to be used by the grantee for (ill) Bond elections. if a bond elec- somlel whose services shall be avail- Ln szed prior to submission Of the aP- other economic development aetivtttes ation for bonnier eaal`ync^ approved by IDA: ► tion 15 deemed necessary.assemble the Frans- able to the and cog governmentof bids. the ti:h costs are directly related to the (7)The sale of the land will.not pro- dal to t eOb shall assemble.and trans- tabulation and comparison s bids. :lopment and/or the feasibility of vide windfall profits to private inter- mit q the pond attorneys oath data s- (viii) therssabonace o1 bonds As soon es a project or the application.Where ; is required m preparation of the neces• hid for the bond shall be accepted by elementary grant assistance to (a) when the land is sold it will be nary DeWtlons,resolutions.noticesetc. the Issuing agency.the Pinanew Advi- v of another Federal agency h used for the original purpose the (iv) Terms of bond issue.The Finan- sar shall proceed at once with the ten- t f another the Derides en that used f m accord with 4 314.3 and tial Advisor shall submit his written eral consideration of the efforts of all ri ocy apply and only those preappll- y project of this chapter,and recommendations as to the venous concerned to the end that the bonds on casts recognized by the other (9).�requirements of part 314 of provisions. terms• and conditions of may be delivered and Paid for as eape- m acy will be considered eligible. this chapter will be met the Proposed band Issue. He shall ditiously as possible.His services shall make recommendations as to the date be available in the passage or adoption 5.55 Lend, easements, and rlshoiof- [2g PR 2872,Jan 23, 19M as amended at 45 of the issue, Interest payment dates, of all required ordinances,resolutions way m eligible costa PR 94901,NOV.1a.19801 - schedule of maturities, options of and documents which may be required A Costa necessary for project site @W&66 Cooe4ue5Oa casts u eligible prior payment, and place of payment by the Attorney General of the State lhislWsts including. land. rights-of-Jeclle He shall also, whenever possible. cuff- in which the issuing subdivision is So- i,and easements,may be eligible it ProjProjectaf8'7O0Zest additional security Provisions de- Cared. y meet the requirements Of this Eligible Project Costs for COnatrue' tion and 1305.72.if applicable. tlon of the project Include the reason- 100 698