AMESBURY — Amesbury’s largest employer may soon be receiving a tax break as part of their expansion plan within the city with Mayor Kassandra Gove and City Councilor Anthony Rinaldi sponsoring a bill that would reduce the corporation tax’s burden.
The prosposal, to be unveiled during Tuesday’s City Council meeting would allow for Munters Corp to take advantage of tax increment financing – which temporarily lowers a company’s tax bills before slowly raising them as an economic incentive.
Munters announced early in November that it will be expanding its operations in the city with a new facility at Maples Crossing. They have signed a letter of intent with Global Property Developers Corp. to locate its new flagship facility at 24 South Hunt Road located along Interstate 495.
Maples Crossing, currently under development as the area’s largest sports, business and entertainment destination, expanded its campus plan from 50 to 75 acres, which will allow it to accommodate the proposed 400,000-square-foot facility.
Approximately one-third of Munters’ employees live in Amesbury, and this new facility would allow the business to increase its employees in the city from about 345 to roughly 415.
In a text response to The Daily News, Gove explained the importance of the potential bill.
“The tax increment financing proposal for Munters is essential for retaining Amesbury’s largest employer. The TIF will offset the cost of relocating from 79 Monroe St. to 24 South Hunt Road,” Gove said. “Costs of the relocation are associated with site constraints at 24 South Hunt Road and the construction of a facility triple the size, growing their operations. The proposed TIF would also help offset Munters paying taxes at two facilities while developing their new manufacturing headquarters. A TIF allows us to assist an existing business overcome these costs while also substantially adding to the net taxable property value and diversifying our tax base.”
Rinaldi said that he believes that the council will pass this issue.
“I think it’ll get by, I really do,” Rinaldi said. “I’ve talked to one person who has some issues with it because he thinks that Munters is a big corporation making a lot of money, we don’t have to give them any, but in my opinion, if they told us that the TIF was part of their thinking in keeping them here, then we’re going to have to do it. We don’t have a choice.”
Rinaldi also said that he believes a new opportunity for the city might open up once Munters makes the move.
“When they move up into that building, we’re going to get another building available for manufacturing because the building they’re in today is theirs. I think they inherited when they took over the corporation that was there before. And they told us they were going to sell it, which means we’ll get another industry,” Rinaldi said. “So, the city gets two industries, keeps one that’s growing and gets another one. I mean, it’ll be a while, but it’ll certainly be a boon to the city. Because that’s one of the big problems of our tax base, we don’t have a lot of industry that’s paying big taxes. We have mostly residential and the citizens carry a lot of the burden.”