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July 23, 2007

The Devens effect

A decade after Fort Devens closed, business is booming

When Evergreen Solar Inc. scrapped plans to build a $150 million manufacturing plant in Westborough last month, it surprised no one that the solar panel manufacturer chose Devens as the new site for the operation.

"It makes complete sense for them," said Jim Robbins, Westborough's town planner.

Robbins said the company was looking for more space and more appropriate topography than the proposed Westborough location offered. While town leaders were disappointed at the change of plans it was clear the company would have an easier time finding reasonably priced, appropriately zoned land in Devens.

An aerial view of Devens, which has been a beacon for big and small businesses.
In the 11 years since the Fort Devens Army based closed, the 4,000-acre area has become a hotspot for industry. Ninety companies, from local restaurants to major manufacturers, now have locations in Devens - a community of only about 250 people.

The recent decision of pharmaceutical company Bristol Meyers-Squibb to build a $1.1 billion manufacturing plant in town was hailed by development leaders from around Massachusetts as a victory for the state. Devens leaders, officials from other towns in the region and company executives all say the community's success is the result of a combination of unique attributes and an unusual style of municipal management.

Quick turnaround

When Fort Devens closed, a quasi-governmental agency, Massachusetts Development Finance Agency, took over management of the area, which became the "Devens Regional Enterprise Zone." The agency acts as a municipal government, real estate authority and utility company rolled into one, providing one-stop shopping for businesses locating in the area. And under state law, a board appointed by the governor is required to rule on all completed permit applications within 75 days, rather than requiring companies to go through the lengthy process common in most cities and towns. The enormous Bristol Meyers-Squibb project was approved in just 49 days, according to MassDevelopment Chief of Staff Meg Delorier.

"If we can minimize the amount of time that (companies are) in the planning and permitting process, that's what they're most interested in," Delorier said.

Jeff Schwarz, president of Image Software Services, one of the first companies to locate in Devens, said the company chose the enterprise zone because of the deal it could get on property there.

"I think it was a tremendous financial opportunity at the time," he said. "I think the costs to move here were incredibly attractive."

Since then, Schwarz said, the company has had what he describes as a "fantastic" relationship with Devens. He recalls a Fourth of July two years ago when a big community celebration, complete with fireworks, was scheduled to start at 5:30 p.m. across the street from Image Software's building. At 2 p.m., Schwarz said, the company suddenly realized it had a distribution shipment that had to go out that evening. He called the Department of Public Works and within minutes had a guarantee that the UPS truck would be able to get through, along with the cell phone number of the DPW director.

"The DPW understands that they offer services, and they need to be competitive and responsive to the needs of business owners," Schwarz said. "They should be held up as an example."

Schwarz said another boon to his company is the EcoStar program, an effort to help businesses in Devens and the surrounding communities operate in environmentally sustainable ways. Launched in 2005, the voluntary program provides information and support to companies that want to go green and certifies those that succeed. To Schwarz, EcoStar is an example of how Devens offers surprising benefits to local companies.

Jeff Schwarz, president of Image Software Services, said his was one of the fi rst companies to locate in Devens.
The leaders of some surrounding towns say the kind of support Devens provides is due at least in part to the resources MassDevelopment can devote to the needs of businesses.

"MassDevelopment has the full-time staff in real estate and marketing, and, unfortunately, some of the surrounding communities do not," said Shirley Town Administrator Kyle Keady.

For the most part, Keady said, the growth in Devens has been good for the surrounding towns, offering jobs for residents, supporting secondary businesses and giving a major boost to the housing market

The flip side of the housing boom, of course, is that some locals are unable to afford a new home or pay the rising taxes that go with their houses' increased value. But, Keady said, "bittersweet" growth is better than none at all.

"I don't think anyone would not take it," he said. "It's better to have the jobs and the employment and the opportunities than not."

Kindly neighbors

One thing that makes Devens' appeal for businesses more palatable for the nearby towns is a promise MassDevelopment has made not to steal companies away from communities in the area. The agency will not negotiate with any business that wants to move from elsewhere in the area until the home community gives its blessing.

Ayer Town Administrator Shaun Suhoski said the agreement keeps relations civil even when a company does move to Devens. For example, Suhoski said, when a company with a location in Ayer decided to consolidate its printing operations, it worked with town officials to see if it could expand there. That turned out not to be possible, but rather than heading out of the region, the company ended up going just over the town line to Devens.

"Those jobs remain local, and in fact, more jobs are brought into the area," Suhoski said.

Beyond all the resources MassDevelopment showers on Devens businesses, a large part of the area's appeal is inherent to the location. Devens is close to major highways and commuter rail lines and perhaps most importantly, it has lots of space to build on.
"You're looking at 4,400 acres of development land that just wasn't there before," Keady said.

Of course, the more businesses move into town, the less available property there will be. And other unique things about Devens may end up changing too. Currently, state law caps the community's housing stock at an almost negligible 282 units. A plan that would have raised that number to 1,800 - and made Devens into its own town - failed last fall when only one of the three surrounding communities voted to approve it. But Delorier said MassDevelopment hopes a new agreement to allow for more housing will eventually win approval.

Suhoski said he hopes so too, as long as the build-out is gradual.

"The concern in the community, and I would share that concern, is that we have to phase that development so the market can absorb it without deflating everybody's equity," he said.

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