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Goodrich Corporation is in line for a significant property tax break from the town in return for promising to add about 180 jobs to its payroll.
Selectmen recently approved a Tax Incremental Financing subsidy that, if implemented, will save the company about $70.8K over five years, and add approximately $165,249 to Westford’s tax revenues. Company officials say they have not yet finalized expansion plans.
“The benefit to the town is not only the new jobs, with a preference for Westford residents, but they are bringing additional tax revenue…over the next five years to the town, which will continue into the future,” stated Town Manager Jodi Ross.
In 2011 the UTC Aerospace Systems company relocated from Chelmsford and signed a 10-year lease at 7 and 9 Technology Park Drive for 184,000 square feet, according to published reports. Goodrich does business as UTC Aerospace Systems and operates its Intelligence Surveillance and Reconnaissance business in Westford, as well as its Space Systems business. Officials say the company now occupies 230,000 square feet between the two buildings. They want to lease another 50,000 square feet at 5 Technology Park Drive to accommodate its ongoing operations. The square footage represents about 42 percent of the vacant space at the office park.
Selectmen, on Aug. 22, unanimously agreed to reduce the company’s rent for the additional space by 30 percent between 2019 and 2023.
In return, UTC offered to:
- Hire up to 180 new highly skilled employees;
- Invest approximately $9 million in new machinery and equipment;
- Lease 50,000 square feet in Building 5 of Westford Technology Park, which is adjacent to the current leased office space.
According to a letter dated June 15 to Ross from Kevin Raftery, vice president and general manager of ISR and Space Systems of Airborne UTC Aerospace Systems, the company is also in discussions with the state Office of Business Development for additional tax incentives.
In his letter, Raftery stated that company officials anticipate growth in its ISR and Space Systems businesses. But when pressed to comment on what’s driving the growth, company spokesman Sarah O’Shea declined to elaborate.
“Our management has not yet decided on a course of action to respond to the anticipated growth of the business,” she stated. “Once we have a plan forward we look forward to answering your questions.”
O’Shea declined to specify whether discussions are still ongoing with state officials regarding the company’s push for an Economic Development Incentive Program tax break or whether the deal with Westford is dependent on receiving the award. Neither UTC nor Goodrich is listed among the 2017 awardees on the state Executive Office of Housing and Economic Development website.
Meanwhile, the available 162,833 square feet inside building 5 is filling, according to a document distributed at the Aug. 22 selectmen’s meeting: Akamai Technologies leases approximately 42,000 square feet. Another 30,000 square feet is rented by Aspect Software, Inc. With the additional 50,000 square feet that Goodrich is interested in renting, the building vacancy will shrink to about 40,833 square feet. Technology Park Developer Arthur Gutierrez did not immediately return an email seeking confirmation of these numbers.
Goodrich would save an estimated:
- 2019 — $10,965
- 2020 — $13,058
- 2021 – $15,151
- 2022 — $15,823
- 2023 — $15,823
At the fiscal 2017 tax rate of $16.61 per $1,000 of valuation, the company will pay approximately $1.151 million in property taxes over the five years.
A TIF is designed to encourage expansion within a city or town by exempting or reducing taxes on the increased area over a period of years. The program is governed by the state Executive Office of Housing and Economic Development. Westford was designated as an Economic Target Area by the state some five years ago.
Follow Joyce Pellino Crane on Twitter @joypellinocrane.
UPDATE: At 4:50 p.m. on Aug. 31, Goodrich spokesman Sarah O’Shea requested the following statement be added to the article after it was published: “Goodrich has not confirmed acceptance of the TIF as it continues to evaluate the best course of action to respond to the anticipated growth of its business.”
The reporter sent three emails and made two telephone calls seeking comment from Goodrich officials prior to publication.
