WESTFIELD – The oldest manufacturer of kitchen cutlery in the nation is seeking to relocate in this city as it recovers from the ravages of the Deerfield River, which overflowed its banks in 2011 during Tropical Storm Irene and destroyed the company’s plant it Shelburne Falls. The petition is being submitted tonight to the City Council.
Lamson & Goodnow was established in Shelburne Falls, in 1837, and rapidly became the premier cutler in the United States. The company was forced into Chapter 11 bankruptcy and sold the Shelburne Falls property to pay creditors.
City Advancement Officer Joe Mitchell said that Lamson & Goodnow is seeking a Special Tax Assessment (STA) agreement to move its manufacturing facility to Mainline Drive, bringing its equipment and half of its workforce to Westfield.
Members of the City Council are uncomfortable with embracing STA agreements because the five-year package starts with a 100 percent tax break for the entire property where the building is located. That tax relief drops by 20 percent each year of the agreement, so it will be 80 percent in year two; 60 percent in year three; 40 percent in year four and 20 percent in year five.
The City Council is typically more receptive to Tax Incentive Financing (TIF) agreements which provide tax relief only for new construction and new equipment investments, while the rest of the property is taxed at the commercial rate.
Mitchell said the STA is needed because there will not be new investment at the Mainline Derive building.
“There’s not much there in terms of investment. They’re renting the building and are buying one new machine and moving their equipment from Shelburne Falls to Westfield,” Mitchell said. “They’re bringing 15 of their current craftsmen and artisans and plan to add another 15 manufacturing jobs during the STA to get back up to the full labor force of 30.”
“Typically they also have a retail component to see their product directly to consumers,” Mitchell said. “The STA will be a three-way package with the city, the property owner and the company all involved.
Mitchell said the total cost to the city in terms of tax revenue over the five-year term of the STA will be a little over $30,000.
The City Council will also conduct a public hearing on a junk dealer’s license petition from ecoATM to operate a kiosk in the lobby of Walmart located at 141 Springfield Road. The company collects used cell phones and issues chits which can be used in the store to purchase merchandise.
Kiosk users are required to provide identification to avoid the sale of stolen cell phones.
“They have to have a junk dealer’s license because they’re collecting used cell phones, which is better than those devices ending up in a landfill,” Mitchell said. “They have these across the country. Walmart seems to like these vending machines because people can spend that money in their store.”
