Pittsfield Council Grants Optics Company $250K in Economic Funds
PITTSFIELD, Mass. — The City Council granted Electro Magnetic Applications, Inc. $250,000 in Pittsfield Economic Development Funds on Tuesday — but not without debate from two councilors.
The optics company will use the boost to develop a characterization testing chamber.
By expanding its space environment and radiation effects lab at the Berkshire Innovation Center, EMA plans to double its workforce by adding eight full-time jobs with minimum salaries of starting at $65,000. It also plans to invest $3 million into the project and have it completed by 2026.
This was a sound proposal to most of the panel but Councilor at Large Karen Kalinowsky and Ward 2 Councilor Charles Kronick opposed it. It passed 8-2 with Ward 7 Councilor Anthony Maffuccio absent.
Kalinowsky, who spoke against the funding earlier this month when it was presented to the economic development subcommittee, pointed to a former $140,000 allocation and a tax increment financing agreement EMA has with the city.
"I still believe that we gave you $140,000, we gave you a five-year TIF, you're on your way, you're showing that you're doing well," she said.
"I just think if you need $250,000 couldn't you just go to a bank or could Pittsfield make it a loan?"
Kronick argued that EMA should be funding the purchase themselves, that they are already benefitting off the TIF, and that the project is not directly benefitting the city.
The way he sees the economic development fund is to strengthen established Pittsfield businesses that are struggling and need to make upgrades mandated by the state or other authorities.
"I think that it comes down to is this company here is established, it's doing well, it's not suffering in the way that other businesses might be," Kronick said.
"And we need to tell it to follow its own future, its own merits, and we should be using these funds very carefully and reserving it for higher need companies."
Principal scientist Justin McKennon explained that participating in the optics industry requires EMA to grow significantly. While the money could be saved in five to six years, they need to purchase the equipment all at once.
"We are very much a small business," he said. "We do not have $250,000 to fund this significant expansion out here into this under our couches."
He also pointed out that most of the company's employees have relocated to Pittsfield and contribute to the local economy.
James Watkins, a professor in the Department of Polymer Science and Engineering at the University of Massachusetts at Amherst, attended the meeting to speak on behalf of EMA. The company plans to work with the UMass, Berkshire Community College, and other schools to provide optics education.
"He's doing leading edge stuff and we're looking at spinning a company out now based on our technology at UMass and we're looking at where to locate it and certainly, companies like EMA are a very strong draw," he said.
"I think you're going to see optics clusters pop up in Massachusetts, there's a legacy of optics businesses here in the state so I think it's a nice investment for the Berkshires. It's a nice investment for Massachusetts."
He later said Pittsfield is "a strong contender" for a location.
Ward 5 Councilor Patrick Kavey pointed to the economic development benefits of the company's expansion as well as the education it would provide to students looking at a career in the industry.
"When we're talking about youth staying here and the bike lanes or we're talking about jobs, all of its interconnected," he said.
"And what they're doing is helping to make our regional economy stronger and I'm happy that you're here and that you're successful and I'm you're expanding."
The GE Economic Development Fund was created more than 20 years ago as part of the GE consent decree with $10 million and there is more than $1 million remaining. The city expects a refresh of $8 million in the near future.
Councilor At Large Earl Persip III said that the city has been a great steward of the fund and that the return on investment will be greater than the initial investment.
"This fund is made for exactly this, a proven business that has grown their staff who mostly sit here in the audience, pay high-quality jobs," he explained.
"When we tried to get money out for this fund before I heard ‘Why would we give it to a business who's not doing good?' We wouldn't give it to someone who is on the brink of failure. We wouldn't give it to someone who was paying low-paying jobs. This is the business. This is what we want. This is exactly what this fund was made for."
Ward 1 Councilor Kenneth Warren said he has heard criticisms from long-term businesses who feel they haven't been supported by the funds but he doesn't see that as a reason to deny proper use of them.
"So far EMA has shown it's worth the investment," he said.
While job creation is important, he feels that the partnership with local institutions is a great asset.
"Frankly, I think we need to be able to offer cutting-edge, technical training to our younger people," Warren said. "It's worth its weight in gold to the next generation."
Councilor at Large Peter White pointed out that the city makes a significant investment in its schools during budget season and they want to provide opportunities to further student learning with the hope that they return to the community.
"By making an investment in EMA, continuing to make investments in EMA, we are investing in having jobs that could attract our future to come back here," he said.
Ward 6 Councilor Dina Guiel Lampiasi pointed to the impact that GE's fallout had on the city.
"The economic fallout that we had in this community after General Electric left taught us, or at least it should have taught us that we need to diversify our local economy here in the city and throughout Berkshire County," she said.
"And that's both in size of businesses that we welcome and that we help to grow and also in the types of industries that we welcome into our community and in my view, EMA does that. They've also proven themselves to be a great community partner, a great business partner in the city."
In other news:
-
A $500,000 free cash ask for interior renovations to the historic Springside House was referred to the Finance subcommittee. This is a requirement of the $500,000 Save America's Treasures matching grant that Pittsfield received in December. This is the second phase of renovations to the mid-1800s Italianate mansion formerly known as Elmhurst. It has sat vacant since 2007 after headquartering the city's Parks and Recreation Department for more than 50 years.?
- The council voted to become the petitioner to remove the special permit requirements for the keeping of six or fewer chickens. After being contacted by a concerned resident, Kalinowsky has been working to take the permitting process that is over $500 out of the Zoning Board of Appeals and make it similar to a dog license.
Tags: GE fund,
