Packaging firm finalizes new $46M Sutton tax break, after compensating neighbors over blasting
Rendering | Courtesy RP Masiello
UN1F1ED2's new warehouse is under construction in Sutton
Sutton-based UN1F1ED² Global Packaging Group and the Town of Sutton have renegotiated a new $46.1-million tax-increment financing agreement for the company’s $475-million expansion, following the company setting aside $150,000 to compensate neighbors whose property was damaged by blasting at the project.
“We’ve modified the schedule so that there is more money up front that will assist us budgetarily,” said James Smith, Sutton’s Town Manager in the Dec. 6 Select Board Meeting, at which the new agreement was approved.
The original agreement was a three-party agreement between the Town, UN1F1ED², and the party to be a tenant of Building One at the $475-million project, which will total three buildings and 2.2 million square feet. The Town renegotiated in exchange for making this a two-part agreement with UN1F1ED², according to a letter from Smith to the members of the Select Board.
In the initial agreement negotiated in 2021, UN1F1ED² was to pay no property taxes for the first two years and 5% in the third year, said Smith in the meeting.
Under the new agreement, the company would receive an 85% exemption in the first year and an 80% exemption in years two and three.
The personal property tax exemption schedule was modified for Building One so UN1F1ED² will receive a 70% exemption over 10 years, instead of a variable rate over 15 years. The company will need to identify a tenant for Building One within 18 months or will need to reappear before the board for reconsideration, according to Smith’s letter to the board.
A chart provided by the Town of Sutton with data from the Commonwealth of Massachusetts Economic Assistance Coordinating Council estimates, based on the project’s incremental assessed value and the Town’s $16 per $1,000 property tax rate, the value of the TIF over 15 years is $46.1 million
The Town and UN1F1ED² negotiated a community partnership agreement, providing $150,000 to establish a Community Impact Fund to compensate surrounding residents for damages resulting from blasting at the site, according to the agreement filed with the Town of Sutton.
“All of a sudden they have leaky pipes, a deck that’s collapsing, or a sinkhole in their driveway,” said Smith. “We thought that was something that needed to be addressed up front. And we didn’t get much pushback from UN1F1ED².”
Neighbors were not notified before the blasting occurred, according to The Millbury-Sutton Chronicle, which first reported the news of the community partnership agreement of the new TIF.
Under the Community Partnership Agreement, UN1F1ED² will also provide roadway improvements related to increased traffic at the site, additional training and equipment for the fire department, $100,000 to fund science, technology, engineering, and math education in the Sutton School District, a new sporting facility with the cost not to exceed $5 million, and a $60,000 contribution to the Sutton Council on Aging to provide a transport vehicle for the senior center. These provisions were in the original agreement, presented in September 2021.
UN1F1ED² is a partnership between Worcester-based Rand-Whitney Packaging and AGlobal Solutions of Sutton, founded in 2018. Rand-Whitney is owned by The Kraft Group, which is also the owner of the New England Patriots football team.
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