Town Gives Kronos Tax Breaks

Town Meeting last night approved a as an incentive to expand its world headquarters in town, a move that will retain 562 jobs and may create a significant number of additional ones.

Kronos has a current location at 297 Billerica Road with an option to lease across the street at 300 Billerica Road.

The agreement between the town, state and business will provide tax exemptions for the company on the additional or “incremental” value added to a property. Town Manager Paul Cohen said  Kronos is looking to invest $6 million into the new location.  The location is valued at about $9.3 million and fiscal 2011 property taxes on it are $157,078.

Kronos officials have also made it clear to the town a traffic signal would be needed to be able to cross Billerica Road, Cohen said. The town has applied for a state grant to pay for that traffic light, which Cohen said the state is expected to approve. The cost for the light would be about $240,000. 

In the agreement, which would last for six years, Kronos would receive a 90 percent break in the increment value of the property. In 2014, the percent decreases to 75, and in 2015 to 60 percent. The percent continues to decreases by increments of 15 for the length of the agreement.

The town will also make about $40,000 on the building permit fees alone, Cohen said.

Under the agreement, total tax breaks to Kronos amount to $238,829 and the town will generate $235,000 in revenue, not including those permit fees. 

“We have to look at the economic realities in front of us in the real world,  and in the real word this is what is taking place,” said Cohen. “If we don’t grant them this, another community will and we if we don’t grant it in Massachusetts, another state will.”

Town Meeting Rep Mike Combs spoke against the article.

“I think Kronos brings jobs to the area we want to have, but I think we’ve not done our homework enough to get a good deal on this,” he said. “ … (If the agreement started) at 75 percent, it would net same savings to them and revenue to us and take the risk out of it for Chelmsford. I’m going to vote no, I’d like to see a better deal.”

Town Meeting Rep Danielle Evans said she was in favor of the article. As the chairwoman of theEvans said Kronos members have gone out of their way to help the cause.

“They’ve pledged hours to organizations in town, they’re a great asset to this community. The last thing we need is to lose (them).  This is not somebody we want to lose,” she said.

How Your Town Meeting Reps Voted: