NORTH ADAMS, Mass. — The City Council on Tuesday approved a tax increment financing agreement with Tog Manufacturing as it doubles in size and employment over the next five years.
"This is a good agreement, this is an agreement that is tied both to physical investment in the facility as well as to planned and proposed job creation," said Mayor Thomas Bernard. "It's an agreement I have great confidence in because it represents a continuity and a local future for a company that has deep roots in the city of North Adams."
The agreement was signed with Stanley Black & Decker Inc., which became Tog's parent company after acquiring Nelson Fastener Systems of Ohio earlier this year for $440 million. Tog had become part of the Nelson Fastener family of companies in 2016.
The company was approved last month for a 21,000 square-foot addition to the current 24,900 square-foot building at Hardman Industrial Park. It estimates the investment at $3.5 million in building improvements, $2.6 million in equipment, and 28 new jobs by 2022. It currently employs 29.
Bernard said this was significant because there had been the possibility of Tog moving out of the area under different ownership.
"When Stanley came in and purchased the company they did so with the intent of investing in the facility here and in the local workforce," he said.
The mayor also noted that Tog, a precision machining company with both government and private-sector clients, has had a close relationship over the years with McCann Technical School. The company has offered internships that have helped prepare an educated manufacturing workforce.
The agreement will phase in the expected tax increase from improvements over the five years, beginning with an exemption of 80 percent of the increase in fiscal 2021 and then dropping by 20 percent a year until the full amount is being paid in fiscal 2025.
According to the agreement, the company is committed to invest up to $2.75 million in improvements, $1.85 million in capital equipment and create 20 full-time jobs by the end of fiscal 2024.
Should it fail to fulfill its investment and job creation goals, the city can request the TIF be decertified.
Tog currently pays more than $12,000 a year in property taxes and will continue to pay any personal property taxes. The mayor said it would be difficult to determine at this point how much the company would be saving because the new building isn't constructed to be assessed and the tax rate varies each year.
The councilors were strongly supportive of the plan, passing the agreement unanimously.
"If you look at the options that communities have to help with economic development growth, business, TIFs are one of the very opportunities we have to do that," said Councilor Benjamin Lamb. "I think that it's great because we're still getting the tax on the base valuation, which is key. It's not like they're suddenly not paying any taxes in the city of North Adams."
Councilor Eric Buddington, who has been critical of the way TIFs have been used in the past, approved of this one, saying, "this is one of the nicer ones I've seen. It's a very well-respected business. I like that it follows the standard formula where the taxes on increased property value are phased in evenly over five years."
It should, he said, be a standard for other eligible businesses in the city.
The councilors did, however, want annual updates on the progress of the company in meeting its contracted obligations, as well as reports on other current agreements.
"Reporting back to this council has not been consistent," Lamb said.
The agreement must now be approved by the Economic Assistance Coordinating Council before it can go into effect on July 1, 2019.
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How can women overcome obstacles to financial security?
Submitted by Edward Jones
On March 8, we observe International Women's Day, a celebration of the social, economic, cultural and political achievements of women. Of course, women still tend to encounter more obstacles than men in the pursuit of financial security. Let's consider a few of them.
To begin with, women are still more likely to leave the workforce, at least temporarily, to raise children, resulting in lower contributions to employer-sponsored retirement plans such as 401(k)s. And women are often the ones who become full-time caregivers of aging parents or other relatives. Caregiving duties can exact a big financial toll: The lost wages, pensions (including 401(k)s and similar plans) and Social Security benefits that a woman loses to become a full-time caregiver amount to more than $300,000 over her lifetime, according to the National Academy of Sciences.
Women also may be more susceptible to financial downturns. Consider the COVID-19 pandemic: Just a few months ago, in December, women lost 156,000 jobs, while men gained 16,000, according to the Bureau of Labor Statistics, which also reported that women accounted for 54 percent of the jobs lost from the pandemic in 2020.
And women are not unaware of their circumstances and outlook. Just 41 percent of women are confident about retirement, compared with 56 percent of men, according to a survey by Edward Jones and Age Wave.
Cathleen King was a founder of the high school's alternative education program, the E3 Academy, in 2012. She's spent the last few years in Salem when her husband took a position of Salem State University.
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