Invensys Tax Break Would Net Foxborough $7M in Revenue Over 15 Years
Invensys’ first tax increment financing (TIF) proposal to the town would save the company roughly $1.8 million over 15 years while producing roughly $7.6 million in total revenue to Foxborough.
Expressing a desire to remain in Foxborough, Invensys has submitted its first Tax Increment Financing (TIF) proposal to the town as negotiations began late last week.
According to the proposal, the TIF would last 15 years and save Invensys a total of $1,880,944 while enabling the company to invest $33 million-worth of renovations to existing buildings and remain in Foxborough.
“The company currently occupies three underutilized and outdated locations in Foxborough,” said Invensys Senior Vice President Steve Sacco in a recent letter to Town Manager Kevin Paicos. “It has proposed plans to consolidate into two buildings to maximize efficiency and provide a more modern and attractive workspace for its employees.”
The total project investment is currently estimated at $33 million and the investment breakdown is as follows:
- $4 million for renovations at 38 Neponset Ave. building
- $26 million for renovations at the 70 Mechanic St. building
- $3 million for personal property
Sacco told Paicos that remaining in Foxborough and investing in Invensys’ current properties in town has been “identified as one of the viable options” and could prove to be the company’s most attractive if the company’s TIF proposal is approved by voters at May’s Annual Town Meeting and finalized by the Massachusetts Economic Assistance Coordinating Council.
“The benefits to Foxborough from the proposed Invensys project would be substantial,” Sacco said. “Invensys would continue to stimulate economic development in Foxborough and retain hundreds of jobs in the community. Moreover, the company would continue to remain an active and dedicated member of the community.”
Under the current proposal, Foxborough would receive $7,632,716 in total revenue over the 15-year term of the TIF, including 998,051 in TIF taxes over the final 11 years of the deal. The current proposal would exempt Invensys from TIF payments to the town in years 1-4.
The proposed exemption term (year-by-year) for both the 70 Mechanic St. and 38 Neponset Ave. properties is as follows:
Year Exemption Percentage
1 100 percent
2 100 percent
3 100 percent
4 100 percent
5 90 percent
6 80 percent
7 75 percent
8 70 percent
9 60 percent
10 55 percent
11 50 percent
12 40 percent
13 30 percent
14 20 percent
15 10 percent
View the TIF Proposal Assumption graphics in the photo gallery above for more details.
The town’s TIF negotiating committee, which was established in February, began negotiations with Invensys representatives last Thursday and is expected to provide an update on those negotiations to Foxborough’s Board of Selectmen on March 19.
“As one of Foxborough’s largest and most long-standing employers, Invensys looks forward to continuing productive discussions with the town about our proposed plans,” said Sacco.
Members sitting on the town’s committee are Paicos, Town Planner Sharon Wason, Financial Director Randy Scollins and Chief Assessor Hannelore Simonds. Serving the committee as advisors is Town Counsel Richard Gelerman and Building Inspector Bill Casbarra.
To date, Foxborough has never issued a company a TIF.
Click here to read more on the future of Invensys in Foxborough.