PEDA: Springfield Rail Car Contract Benefits Berkshires
(1).jpg) PEDA hoped the company who chose to do the final assembly in Pittsfield would be chosen but they weren't. |
"Obviously I am disappointed the company that was leaning toward Pittsfield didn't get selected," Thurston said on Tuesday, around the same time Gov. Deval Patrick was in Springfield announcing CNR Changchun is being recommended for the contract with the intentions to bring 250 jobs to a former Westinghouse plant.
CNR is proposing to build a brand-new 150,000 square-foot North American headquarters and make Springfield its permanent home. The $550 million contract is to build 152 new Orange Line and 132 new Red Line train cars for the Massachusetts Bay Transportation Authority. The MBTA's board of directors is expected to award CNR the contract on Wednesday.
"This is a critical investment in the future of public transportation in Greater Boston and in the economic well-being of Western Massachusetts," said Patrick in a prepared statement on Tuesday. "It will open up opportunities for the residents of the Pioneer Valley by creating quality construction and manufacturing jobs that will propel growth in the region for years to come."
The Pittsfield Economic Development Authority and the city of Pittsfield put up $2 million for incentives in hopes to attract one of the six companies bidding on the contract to choose Pittsfield as the location to build the rail cars. One company did list a Pittsfield site but ultimately was not awarded the contract.
Thurston said CNR did tour not just the business park but all over the Berkshires. However, CNR officials were unable to find a Berkshires location that fit their needs.
"We didn't have a site large enough to accommodate the size facility they wanted to build," Thurston said.
In the process, PEDA introduced CNR officials to local companies that produce supplies they will need to complete the contract. And the company is looking to have a presence beyond the length of the contract, which is expected to be complete in 2021.
"This company is looking at it over the long haul and beyond this MBTA contract," Thurston said. "In Springfield, they are close in a lot of regards."
Thurston said beyond trying to win the "big prize" of being the host site for the contract, PEDA had been connecting local suppliers with companies. Thurston said CNR is the "next best" to win the contract besides the one company that listed Pittsfield.
"We are going to get serious with every company in the Berkshire who could help CNR succeed," Thurston said.
Mayor Daniel Bianchi said CNR has already talked with some local suppliers. However, at this point it isn't known if the company will contract with any Berkshire companies.
"There are a lot of companies in the Western Mass area that supply the transportation industry, including the rail industry. So there will be a huge benefit to companies in this area," Bianchi said.
Further, Thurston said the city and PEDA's effort sent a message. Both put up $1 million in incentive funds to attract the companies, which was more than any other municipality did.
"We got in the race and people paid attention to Berkshire County," Thurston said. "This was probably a historic show of support to develop business and it got people's attention."
Thurston said maybe a supplier that works with CNR will now look at PEDA. Or even just looking to move to Massachusetts and needs space.
"It is still a possibility that there are companies that want to be close," he said. "The word is out that we have spots and we have incentives."
The incentives won't be distributed so PEDA can offer their $1 million to someone else. The city's incentive won't be distributed and will remain in the General Electric Economic Development Fund where it came from.
Thurston said ultimately CNR winning the contract is "right choice" for the entire region for the long term. The company that listed Pittsfield would have brought about 100 jobs to do one step of the manufacturing, while CNR is planning 250 jobs to do all of it and is looking to stay into the future.
"It will impact us in a positive way," Thurston said. "I don't see any negatives ... the economic impact on this region will be huge."
Tags: business park, manufacturing, MBTA, PEDA, rail car,
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