West Boylston Aims At Making Itself A Target
Like many Central Massachusetts towns, West Boylston is looking for ways to get more businesses to set up shop or expand locally. As part of that effort, it’s now considering joining an “economic target area,” a state-designated region that allows companies to apply for breaks on local and state taxes.
“It will give us another tool in the toolbox for making the community more attractive to business development,” said Town Administrator Leon A. Gaumond Jr.
Laws Of Attraction
Being part of an ETA is nothing new to many communities. The state initiative, known as The Economic Development Incentive Program, has been around since 1994, and more than half of the cities and towns in Central Massachusetts are already part of it.
Most communities can create or join an ETA if they want to. ETAs must meet one of 11 state criteria. Those located in “metropolitan areas” can simply have 51 percent of households with incomes below 80 percent of the median for the metropolitan area. Others need only have a majority of households with incomes below 80 percent of the state median.
Once communities are part of an ETA, they can designate specific areas to target development. Then, with both local and state approval, they can offer companies that choose to locate or expand in the designated area municipal incentives like a tax increment financing agreement and additional state tax credits.
Tom Wellen, executive director of local development group Marlborough 2010, said being part of an ETA has helped the city compete with other locations inside and outside Massachusetts to draw in businesses.
In December, for example, the city approved a $3.8 million TIF to help Sepracor Inc. expand. While most companies look at things like infrastructure and the local workforce first, he said, tax breaks can be an important second priority.
“It can be a considerable break to the organization that has to make the investment,” he said.
Wellen added that since the tax exemptions are not permanent and don’t eliminate taxes altogether, bringing in new companies can still mean a net gain in taxes for a community.
Still, not everyone is interested in joining the program. Westborough Town Planner Jim Robbins said the town has no plans to do so and no interest in offering TIFs.
Instead, Robbins said, it uses a downtown overlay district with special provisions for mixed-use developments and multiple buildings on the same lot to lure businesses. He said the town’s flat tax rate also helps, without the need for special tax abatements.
As for West Boylston, Gaumond said the town is still exploring the idea of joining an ETA and needs to do more research into the pros and cons before it makes a decision.
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