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HomeMy WebLinkAbout2013-05-16-EDAC-min Town of Lexington Economic Development Advisory Board May 16, 2013 Legion Room—Cary Hall 8:00am-9:30am MINUTES Meeting started at 8:00am Present: Bob Richards, Rick DeAngelis, Sig Tullmann, Narain Bhatia, Bruce Embry, Larry Smith, David Pronchick,John McWeeney.Also in attendance were Melisa Tintocalis,Joe Pato, Charles Hornig and prospective new EDAC member Tom Dusel. Prior to the meeting all members had received via e-mail a package of information about UniQore and a possible TIF. Mr. DeAngelis stated at the beginning that he would recuse himself on UniQore due to discussions between them and Boston Properties. Mr. Richards indicated that his firm is engaged by King Street properties but did not feel a conflict. UniQure TIF Proposal: In order to get the broadest discussion the initial discussion was limited to the Tax Increment Incentive (TIF) program alone and when and where it would be appropriate to use it. There was a review of the circumstance of the two previous TIFs granted by the Town: 1) Shire and 2) Vista Print. The Committee had not outlined criteria for qualifying a TIF request and there was substantial comment on the plus and minuses of having firm criteria. There was discussion that outlining specific criteria would potentially rule out a project of significant value to the to the Town. Nonetheless,there was some agreement that a minimum of 100,000 SF and new construction were likely two parameters that most could agree on. Next was the review of the UniQure request. The facts presented were that this firm is headquartered in Holland. They are starting an United States based manufacturing and distribution site for a gene therapy product to treat a digestive illness and develop other gene therapies for other illnesses such as Parkinson's. There was a recent Board meeting in Holland where the Board chose to build the facility in the US citing the faster speed and less cost of doing it in the US, plus the opportunity to serve the US market. Having recently gotten approval for their gene therapy the company is anxious to get production and sales underway. The company is interested in locating a 45,000SF facility in an existing 100,000SF facility owned by King Street at 113 Hartwell Ave. UniQure also express interest in a vacant 30,000SF building at 17 Hartwell were leaning towards the King Street property. The facility would have manufacturing, labs, and administrative offices. There would be 70 to100 employees earning approximately$60,000 to $150,000 annually, depending on position and skills They have no environmental hazards. The total available TIF money is about$130,000 given an existing building and the amount increased in value by tenant improvements. Based on numbers prepared by Rob Addelson a 5% TIF would yield about$9,000 per year. Melisa pointed out that since this was total new employment that there might be grants for infrastructure improvement available. There was concern at this small size and the limited TIF value and that the fact that they were going to be a minority in the building would set a precedent that every user coming to Lexington would want and expect a TIF. Regardless of the fact that UniQure is exactly the kind of company we want and need to set a trend for Hartwell,the Committee could not agree to recommend a TIF in this case. The Committee generally agreed that TIF's should used as a tool for achieving town objectives in securing or holding major users. The Committee generally agreed that the fact we have approved two TIF's shows that the Town is open to working with developments. The most important thing we can offer this user is to co-operate in every way to make sure that the Town is getting them open on time by timely inspections and possible infrastructure improvements although none are known needed at present. Meeting adjourned at 10:00am