WESTFIELD—The city is looking at giving a property on Turnpike Industrial Road a chance for grant money from the state.
According to City Advancement Officer Joe Mitchell, the city is looking to try and create the Turnpike Industrial Road Economic Opportunity Area (EOA) around the former Old Colony Envelope and National Envelope Company building at 70 Turnpike Industrial Road.
According to Mitchell, the EOA, which is part of the Economic Development Incentive Program (EDIP) through the Massachusetts Executive Office of Housing and Economic Development, would give the new owner an opportunity for certain deductions which could help develop the property.
The site at 70 Turnpike Industrial Road.
“It’s a state program established to encourage financial investment in communities and the creation of jobs,” Mitchell said.
Mitchell said that there are four categories that an EOA can be created under. According to Mitchell, these include blighted, open area, decadent or decayed area, a substandard area—which the area was applied under—or cumulative job loss.
The request to accept the EOA on the property was put forth by Westfield Mayor Brian Sullivan to city council in Thursday’s meeting. It was then referred to subcommittee by the council.
Mitchell said that if the city council OKs the request, then the new owner of the property could gain access to some state incentives at Turnpike Industrial Road, including applying for an “abandoned building renovation deduction.” Mitchell said that this would allow for tax deductions worth 10 percent of what is invested in renovating the building, which could encourage a building owner “to invest in the building before it falls entirely.”
There is no financial investment from the city, Mitchell said, and if successful, this could help create jobs and increase tax revenue on the building.
“It’s going to save money in that each year since the jobs left, the value of the building has declined, and as the value declines so do the taxes,” Mitchell said.
Mitchell added that city officials will be meeting with a potential tenant for the building next week, which he said the details are confidential but does have to do with manufacturing. That meeting is the third such meeting since the building’s purchase.
“Since the purchase this is the third party we are meeting with. Over the period of three years we didn’t meet with anybody,” he said.
According to a previous article by The Westfield News, the lot and building were sold on Aug. 19 for approximately “$3.7 million in cash and liabilities.”
