Tax Incentives for Lowe's on Agenda in N. Adams
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Lowe's Home Centers Inc. plans to construct a 132,000 square-foot home improvement retail store on the site, owned by developer Starwood Ceruzzi. The Lowe's is expected to anchor development at the plaza and the neighboring Curran Highway parcel; a bank branch and restaurant are just two of the potential tenants.
In a communique to the council, Mayor John Barrett III said the city has been working out a tax increment financing agreement with Lowe's Home Centers Inc. and Starwood Ceruzzi.
Designating the site as a economic opportunity area would allow the developers to take advantage of certain local and state tax credits and deductions.
Barrett, in his letter to the council, wrote, "I am confident that this $15 million project will stimulate further private sector investment on the adjacent property. This Lowe's store will have a most positive impact on the city's economy as well as the Northern Berkshire area as a whole."
The development is expected to create 90 full-time and 50 part-time jobs when it opens in 2009.
The TIF agreement the mayor is proposing would gradually increase the tax assessment on the development over a 15-year schedule; the plan would also allow Lowe's to access a 5 percent investment tax credit through the state.
The council will take up both the designation and the tax financing plan.
Veterans Benefits
Also coming before the council is a reworked plan to provide a retroactive benefit to military veterans injured while working for the city.
The Legislature passed an act a few years ago that would allow municipalities to even up a perceived inequity in retirement benefits. It provides veterans injured in a city's or town's employ with the same yearly benefit (not to exceed $300) that retired veterans receive in their pensions; it also had a section for retroactive relief to the time they were disabled.
The city adopted the first provision but balked on the second because of the cost of funding retroactive benefits for the dozen or so veterans. The controversial proposal resurfaced again as the last act of former City Councilor Christopher Tremblay.
The council was ready to adopt the provision until Barrett threatened to veto it, saying the city could ill afford to spend $57,000 on retirees when it was in the middle of negotiations with its current employees.
A compromise solution would pay the retroactive benefit but only up to 50 percent of what it would have been on June 1, 2006. The order would be dependent upon the agreement of the North Adams Retirement Board.
The council will also take up:
- The partitioning and sale of the Notre Dame property to Arch Street Development and Massachusetts College of Liberal Arts.
- Reappointments to the Hoosac Water Quality District.
- Increases in the costs of transfer station permits to offset rising fuel costs.
- A request for an awning at the planned Hub restaurant on Main Street.
- An increase in sewer use fees to 100 percent for those who don't pay property tax.
