PITTSFIELD, Mass. — The City Council refereed a tax special tax agreement with Electro Magnetic Applications Inc. and the allocation of funds from the Economic Development Fund to subcommittee.

 

The City Council took two swift votes Tuesday to send the possible GE fund allocation to the Subcommittee on Community and Economic Development and the special tax agreement to the Subcommittee on Finance.

 

"I am very excited to welcome EMA, with their cutting-edge technology, to Pittsfield," Mayor Linda Tyer wrote in her letter to the City Council. "I am equally excited about the possibility of EMA becoming the first tenant in the Berkshire Innovation Center ... Thank you in advance for your consideration and support of this business and job growth in Pittsfield."

 

Last week the city announced that EMA, globally recognized leaders in technical consulting, software, and test services to promote safety and mission assurance in electromagnetic environments, was actively negotiating with the Berkshire Innovation Center to house a new branch of its operation in Pittsfield.

 

The company plans to initially invest $600,000 in capital and bring six new jobs to Pittsfield with average salaries of $60,000. 

 

In documents given to the City Council, it was noted that the $140,000 from the Economic Development Fund will go toward the purchase of a space environment testing chamber.

 

This chamber has a wide variety of capabilities and can be equipped with radiation sources to mimic the space environment and instrumentation to measure the effects of this simulated environment on different materials and components. This is estimated to cost $547,395.

 

$80,000 of this will be dispersed upon the execution of a letter of intent to lease space in Pittsfield and the execution of a purchase order for the high vacuum chamber and pumps for the space effects testing facility.

 

Another $20,000 will be released if EMA becomes a tenant at the BIC.

 

The final $40,000 will also be released if EMA meets the prior mentioned standards but this portion of the funding will be forgiven six months after EMA documents that it has hired the six employees in Pittsfield as promised no later than Dec. 31, 2023.

 

As for the tax increment financing agreement, if accepted in its current form it will exempt EMA from paying personal property taxes at 100 percent for the first year, 80 percent for the second year, 60 percent for the third year, 40 percent for the fourth year, and 20 percent for the fifth year.

 

The estimated value of the proposed personal property tax forgiveness over five years is approximately $65,774.00

 

The agreement will start effective fiscal 2020 and end fiscal 2026. 

 

EMA must pay these funds back to the city if it relocates the chamber out of the city, employment drops below two or more than an 18-month period, or it files bankruptcy within a 10-year period. 

 

The subcommittee On Community Economic Development will meet Oct. 3 the Subcommittee on Finance will meet Oct. 10.