WESTFIELD – Mayor Daniel M. Knapik is submitting a request the City Council Thursday night to consider a special tax assessment agreement to keep Prolamina, and more than 250 high-paying jobs, in the city.
City Advancement Officer Joe Mitchell has been working with officials at Prolamina, formerly Jen Coat, on an agreement to reduce the company’s tax.
The company is planning to invest nearly $7 million in its Westfield facility, with $4 million to be used to expand the plant by 8,700 square feet, renovate another 22,000 square feet and to improve the roof and façade of the building on North Elm Street, the city’s northern gateway.
Prolamina would also invest $2.95 million in new equipment to position the company for the market. Prolamina makes products for the food and health industries. The firm would also increase its workforce by 12 jobs as part of the agreement.
“Jen Coat has been in the city since 1972 and at the 132 North Elm Street location for more than 30 years,” Mitchell said this morning. “Prolamina has plants in Wisconsin and Canada and could be spending money elsewhere.”
Mitchell said the company has five years left on its current lease and is in the preliminary stages of negations for a 20-year follow-on lease, if it makes economic sense.
“Any company wants to spend money wisely,” Mitchell said, but declined to present specific terms of the special tax assessment (STA) agreement until the issue comes before the City Council for action.
Typically, the City Council refers Tax Incentive Financing (TIFs) and STAs to its Finance Committee and Legislative & Ordinance Committee for further review before the agreements are brought back to the full council for action.
Mitchell said keeping Prolamina, and the 268 jobs, is also motivated by the trickledown economics generated by the plant which does business with other city companies.
“Prolamina uses the Pioneer Valley Railroad quite extensively,” Mitchell said.
Knapik is submitting a “resolution authorizing a special tax assessment agreement for Jen Coat” under the City Council’s communication from the mayor portion of its agenda.
