Photo | Courtesy
President of Table Talk Pies Harry Kokkinis
February 6, 2020
President: Table Talk staying in Worcester
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Table Talk Pies will move its longtime Kelley Square facility to Worcester's Main South neighborhood.
By Thomas Grillo
How does TIF work?
Typically, a municipal government, enabled by state legislation, partners with the private sector to designate an area as a tax increment financing district, and calculates the amount of property tax revenue the project will generate for the next 10 to 20 years or more. This projected revenue includes property taxes on the project itself, as well as expected tax increases on other properties in the district as assessed values rise because of the TIF. That money is essentially sequestered to support the project’s current financial needs and make it possible. The tax revenue can be used to fund public infrastructure, compensate private developers for their investments, or provide collateral for bonds.
Source: Lincoln Institute of Land Policy
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The president of Table Talk Pies Inc. wants to set the record straight: The Worcester dessert manufacturer is staying in Worcester.
Harry Kokkinis on Wednesday followed up to an email from the Worcester Regional Chamber of Commerce to its members saying the iconic manufacturer would look to leave the city if the Worcester City Council didn't approve a 20-year, $4.6-million tax increment financing agreement for Table Talk's new $22-million facility in the Main South neighborhood.
“The TIF is very important, but let me say from the outset, we have no intention of leaving,” Kokkinis said. “The TIF is a key tool for Worcester’s economic development. It helps level the playing field because property taxes here are substantially higher than surrounding towns.”
Kokkinis said the company anticipates the City Council approving it.
On Tuesday, the Worcester Regional Chamber of Commerce circulated an email to its members, warning one of Central Massachusetts’ most iconic brands might move out of the city if the City Council fails to support the tax break. The email urged businesses to reach out to councilors.
“Urge them to keep an important Worcester manufacturer in the city and remind them, if they leave, there is a lot of jobs, and dough to be lost,” the email said.
The WBJ asked Kokkinis about the chamber’s email which asked residents to lobby city councilors to support the tax relief measure scheduled for a vote on Tuesday, Feb. 11.
In response, Kokkinis said, “I like to plan for success.”
He said Table Talk needs the TIF, but the company has been working with the city and hope to get it.
“We’ve made our case and feel very positive about it,” Kokkinis said. “If we don’t get it, we will have to reassess our options and where we’re at. But we are working hard to make sure we get the TIF.”
Table Talk operates a bakery and its corporate offices on Washington Street in Worcester and has a second bakery on Bowditch Drive in Shrewsbury.
In January, Table Talk said it plans to leave its Kelley Square location near the new Worcester Red Sox stadium and build a $22-million facility at the former Crompton & Knowles campus. Table Talk has an agreement with Worcester developer Chacharone Properties to build a 120,000-square-foot industrial food production facility.
Molly Metzger, a senior lecturer at Washington University in St. Louis, who leads Team TIF, a watchdog over that city’s use of this public-finance mechanism, said the program lacks transparency. In addition, she said anytime public money is used the community should benefit.
“A very fair question to ask is if this is public revenue, what’s the role of the public to decide what strings are attached,” she said. “Is there a possibility for a community benefits agreement? Is there a way for the city to say they will provide the TIF, but since the company is taking a handout, the city expects more from them than from other companies."
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Anonymous
February 6, 2020
Why give out handouts to only certain companies? Lower taxes for all businesses, or require this company to provide certain wages/employment numbers. Sounds like crony capitalism.
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