Partner with Invensys and Vote Yes!

What: Date: Time: Location: Town Meeting - Invensys Request for TIF approval (Article #28) Monday, May 13, 2013 7:30 p.m. Foxborough High School, 120 South Street, Foxborough

Unanimous support from the Foxborough Board of Selectmen and the Advisory Committee Retain 900 high quality jobs in Foxborough Generate new tax revenue and permit fees for the Town

Company Background
Invensys, a global technology and manufacturing company, has enjoyed being a part of the Foxborough community for more than 100 years. The Company and its employees develop and manufacture products that help its customers monitor, control and automate their industrial processes. Its products, systems and software are used in the oil and gas, power, chemical, paper and pulp, metals & mining, pharmaceuticals, transportation, and food and beverage industries.

Proposed Expansion Project

The Company has proposed revitalization plans for its Foxborough facilities to meet growing customer demands, maximize efficiency and provide a more modern and attractive work environment for its employees. Invensys has proposed plans to consolidate into two of its existing Foxborough locations and invest in on-site renovations at both facilities. The total project investment is estimated to be $33 million for renovation and personal property costs, including $5 million at 38 Neponset Avenue and $28 million at 70 Mechanic Street.

Economic Development Benefits to Foxborough

Keep a leading global manufacturer and large employer in Foxborough; Revitalize existing properties; Generate new tax revenue and permit fees; Continue to collect significant hotel and meals taxes; Retain 900 full-time jobs in Foxborough; o Jobs are highly skilled in the areas of software, mechanical and electrical engineering, high tech manufacturing and electronic assembly, R&D and product development, customer service and information technology;

Create an estimated 250 temporary construction jobs o Jobs such as carpenters, electricians and plumbers;

Invensys and its employees spend an estimated $6 million annually with local businesses and the added construction jobs would bring over $900,000 annually to the Town; Invensys has a long history of community involvement and is dedicated to supporting local programs; Invensys is committed to corporate responsibility and supports social and environmental initiatives; and The Town of Foxborough is positioned to keep a long-standing business in the community.



Tax Increment Financing
Tax Increment Financing (TIF) is a feature of the Commonwealths Economic Development Incentive Program (EDIP) and can be offered within an Economic Target Area (ETA). A TIF provides a company with a sliding scale property tax exemption of up to 20 years, based on the increased incremental assessed value of the project property due to on-site investments. The tax incentive is a discount on the projected new taxes at the property during the life of the proposed TIF. The Town continues to receive 100% of the existing real estate taxes on the base value of the site. The Town does not lose any existing tax revenue on the existing properties; overall tax revenue would increase as part of the project.

Given the current economy, it is essential that communities remain competitive in retaining and attracting businesses. A TIF is a useful economic development tool that assists with business and job retention and provides both short- and longterm benefits to the town, region and Commonwealth of Massachusetts.

Invensys TIF Projections Summary Details

15-year TIF Exemption Proposal Percent tax exemption on the additional taxes (100-100-100-100-90-80-75-70-60-55-50-40-30-20-10)

Estimated Existing Revenue to Foxborough (38 Neponset Ave. and 70 Mechanic St.) Current taxes paid to Foxborough over a 15-year period (Annual tax $375,589) $5,633,835 $571,000 $6,204,835

Assessedvaluesortaxratemaychangeannually
Existing hotel and meals tax over 15-year period Total Existing Revenue to Foxborough over 15-year period Estimated New Revenue to Foxborough New real estate tax revenue with TIF to Foxborough over a 15-year period Permit fees Total New Revenue to Foxborough over 15-year period Total Existing and New Revenue to Foxborough over a 15-year period Estimated Tax Savings to Invensys Projected real estate tax relief over a 15-year period

$998,051 $420,000 $1,418,051 $7,622,886

$1,880,944 $125,396

Projected Annual Average Tax Relief

Keep jobs in Foxborough!!!