Tentative TIF Terms Set for Town Meeting Vote

The town has negotiated draft agreements with two expanding Westborough businesses that are being proposed to receive tax increment financing (TIF) deals, according to Town Manager Jim Malloy.



and MicroChem Corporation are the two possible recipients of the TIF proposals, Malloy said, adding that both are planning expansions in Westborough. Danafilms would maintain 62 local jobs and add 20 new jobs, and MicroChem would add 20 new jobs, Malloy said.

The proposed TIF would save Danafilms between $13,500 and $34,000 over the 15-year period. MicroChem would save between $232,000 and $264,000 over the same period, Malloy said.

Tax Increment Financing proposals are tax breaks given to companies on an increase in the value of property after an significant investment, Malloy said. Rather than giving companies a full tax break, the town provides a break on the difference between current and increased property value that results from an expansion.

With a TIF, companies are not only encouraged to stay in the area, but they are also incentivized to create more jobs and opportunities for the town, Malloy said.

The agreements are proposed to last 15 years, Malloy said. In the first year, companies receiving a TIF have a break on 50 percent on the tax difference after expansion. The second year, that percentage drops to 40, and so forth. For the sixth through 15th years of the agreements, companies receive a 10 percent break on the differential value of their property, he said.

The tax break would provide incentive for the companies to build and grow in Westborough, Malloy said.

The town has called the special August meeting with the vote the sole item on the agenda because they want to be able to take these proposals before the state economic council, which meets at the end of each quarter, Malloy said. The vote couldn't wait until September, he said.