Minutes - Monday 2 May 2016Regular Meeting - Beverly City Council, Beverly, MA
MINUTES — Monday, May 2, 2016 @ 7:00 PM
Beverly City Hall, 191 Cabot Street, 3r Floor, Council Chamber
Called to Order @ 7:00 PM
Roll Call: John P. Frates Jr., Scott D. Houseman -Vice President, David J. Lang, James F.
Latter (absent), Donald G. Martin, Estelle M. Rand, Matthew J. St.Hilaire, Jason C. Silva, Paul M.
Guanci- President.
Pledge of Allegiance to the Flag: Councilor Lang
The Council President requested a Moment of Silence for Raymond J. Grimes (Beverly
Police Department- retired) and Kathleen E. Salter (Former School Committee Member)
Resolutions: None
Public Speakers:
1. Mr. Myron E. Hood, 7 Auburn RD re: Beverly Middle School project
Presentations, Awards and Memorials:
1. Beverly Bike Committee — Todd Balf, Neil Stanton & Jonathan Salt
2. #106 — Beverly Farmer's Market — John Augeri — Vote to Approve: 7 -0 -1 (Councilor
Rand recused herself)
Acceptance of Minutes of Previous Meeting:
1. Tuesday, 19 April 2016 — Regular Meeting - Vote to Accept: 8 -0
Public Hearings:
1. 7:30 PM #092 — Budgetary Transfers for Shortfalls & Capital Projects Public Hearing
held and closed - Referred back to Finance & Property.
Communications from His Honor the Mayor:
#101
April 28, 2016
Honorable Beverly City Council
191 Cabot Street
Beverly, MA 01915
Dear Honorable Council:
Enclosed please find a proposed amendment to the water demand charge ordinance. I am
submitting this proposal at the request of the Engineering Department and Department of Public
Services, which handle the implementation of the charge and believe the proposed change is
desirable and warranted to provide greater clarity to the existing schedule of charges.
The purpose of the city's water demand charge as established in our current Code is to
fund a portion of the cost of supplying sufficient water at adequate pressure to meet the
increasing demands for water by the cumulative effect of new residential, commercial, and
industrial units being supplied with water. That will remain the same.
The proposed amendment preserves a portion of the current schedule by incorporating a
pipe size charge approach in calculating the appropriate charge, while also updating and
expanding it by (a) adding additional pipe sizes to reflect that which might be used in
contemporary development or construction, and (b) adding a separate reduced charge for "fire
suppression use." The proposal eliminates the "per unit" charge, which has historically created
confusion and lack of clarity in assessing the charge.
92
The rate reflected in the schedule is proportional to the size and capacity of the line,
which correlates to demand. Engineering established the proposed schedule and believes that it
simplifies what currently is in place and ensures charges that are equitable across all
development types.
Sincerely yours,
Michael P. Cahill
Mayor
In the year two thousand and sixteen
AN ORDINANCE amending an ordinance entitled "Water" relative to Section 282 -13.
Demand Charge.
Be it ordained by the City Council of the City of Beverly as follows:
By amending Chapter 282, Section 282 -13, subsection C entitled "Demand charge" of the
2016 Beverly Code of Ordinances by inserting the following schedule of charges in
subsection C, after the last sentence of that subsection:
Water Demand Fee
Schedule of Charges
93
Pipe Size at Building
Cu. Inch/Ft
Domestic Use
Fire Suppression
1 Inch
9.43
$2,500
$2,000
1 -1/4 Inch
14.7
4,677
3,118
1 -1/2 Inch
21.2
6,744
4,496
2 Inch
37.7
11,994
7,996
4 Inch
150.8
47,975
31,983
6 -8 Inches
339.3 -603.2
149,920
99,947
10 -12 Inches
942.5 - 1357.20
365,806
243,870.50
Referred to Legal Affairs
#100
April 28, 2016
The Honorable City Council
City Hall, 191 Cabot Street
Beverly, MA 01915
Dear Honorable Council:
I am pleased to submit for your consideration a proposed order authorizing the execution of the
attached Tax Increment Financing Agreement with HighRes Biosolutions, Inc. ( "HighRes ") in
accordance with M.G.L. ch. 40 section 59 and the Commonwealth's Economic Development
Incentive Program (EDIP). HighRes has signed a Letter of Intent to lease property from Connolly
Brothers, Inc. located at 102 Cherry Hill Drive in Beverly. The subject property is located at the
intersection of Sam Fonzo Road and Cherry Hill Drive and is currently a vacant lot with
approximately 5.85 acres of land.
HighRes seeks to relocate its headquarters from Woburn, MA to 102 Cherry Hill Drive in order to
facilitate an ambitious growth path for the company thereby expanding manufacturing, research
and development, and engineering functions. The relocation includes the construction of a two
story, 80,000 square foot building with site improvements including 260 parking spaces.
HighRes is seeking support from the City to submit an application to the Massachusetts Office of
Business Development (MOBD) pursuant to the Economic Development Incentive Program
(EDIP). Consistent with EDIP program requirements, HighRes has requested approval of a ten
year Tax Increment Financing (TIF) agreement to assist proposed relocation and expansion to
102 Cherry Hill Drive. HighRes will seek additional support from the Commonwealth by way of
the Massachusetts Life Science Center which makes available a suite of incentives and
programmatic support.
By entering into the proposed TIF agreement, HighRes will commit to a minimum capital
investment of $11.5 million (including construction, site improvements, and the purchase of
machinery and equipment). In addition to significant investment within our community, HighRes
will commit to relocating its existing 95 employees to Beverly and hiring a minimum of an
additional 30 employees for high skilled and high wage positions. It is expected that an
additional 150 employees will be hired and located at the 102 Cherry Hill Drive property over
the 10 -year term of the agreement.
The City of Beverly has been selective in its support of EDIP applications, and has sought TIF
agreements that generate job growth for skilled, high wage employment opportunities, result in
substantial investment in Beverly, and provide meaningful fiscal benefit. Consistent with these
principles, the attached agreement seeks a graduated reduction TIF on real estate taxes on new
value created and assessed on the property over a 10 -year period. The TIF will begin at ten
percent for three years; adjust to seven and a half percent over the next three years, and adjust
again to five percent for the last four years of the ten -year term.
If the HighRes application is approved, the City will realize additional real estate tax revenue for
over and above what it would otherwise have received due to the planned investment during
..
the term of the agreement. It is estimated additional tax revenue following completion of the
proposed project will be $256,715 during fiscal year 2018, $25,672 of which will be exempted
per the proposed TIF agreement. It is estimated that the City will realize over $2.6 million in
additional tax revenue over the 10 -year term of the agreement. This represents a significant
increase in new tax growth for the City by encouraging additional investment in a currently
underutilized property that is located in an area targeted for commercial and industrial growth.
You will note from the enclosed package that the City's Economic and Community Development
Council voted 6 -0 in favor of this project. Please find enclosed with this package the ECDC letter
of support, proposed TIF agreement and Council authorization.
I respectfully request that the Council authorize execution of the enclosed Tax Increment
Financing Agreement with HighRes Biosolutions, Inc., and authorize submission of an application
by HighRes to the Economic Development Incentive Program (EDIP) for approval by the
Economic Assistance Coordinating Council (EACC).
Sincerely yours,
Michael P. Cahill
Mayor
Attachments
cc: Aaron Clausen, Planning Director
Bryant Ayles, Finance Director
Stephanie Williams, City Solicitor
Terry DeBlasie, City Assessor
Denise Deschamps, Economic Development Planner
TAX INCREMENT FINANCING AGREEMENT
BY AND BETWEEN
THE CITY OF BEVERLY,
HIGHRES BIOSOLUTIONS, INC.
AND
102 CHERRY HILL DEVELOPMENT, LLC
THIS TAX INCREMENT FINANCING AGREEMENT ( "AGREEMENT ") is
made this day of April, 2016, by and between the CITY OF BEVERLY, a municipal
corporation duly organized under the laws of the Commonwealth of Massachusetts (the
"CITY "), having a principal place of business at Beverly City Hall, 191 Cabot Street,
Beverly, Massachusetts 01915, HIGHRES BIOSOLUTIONS, INC., a Delaware
corporation (hereinafter "HIGHRES "), with a principal office at 299 Washington Street,
Suite B, Woburn, Massachusetts, 01801, duly authorized to do business in Massachusetts,
and 102 CHERRY HILL DEVELOPMENT, LLC, a Massachusetts limited liability
company ( "102 CHD "), having an address of 152 Conant Street, Beverly, Massachusetts
01915 (collectively, the CITY, HIGHRES and 102 CHD are referred to as the
"PARTIES ").
WHEREAS, 102 CHD is the owner of certain property located at 102 Cherry Hill
Drive, Beverly, MA 01915, City Assessor's Map 65, Parcel 13, containing 5.85 + /- acres
of unimproved land in the IR (Industrial Restricted) Zoning District, which property is
shown as Lot B on the plan of the land recorded with Essex South District Registry of
Deeds in Plan Book 439, Plan 29 (as more particularly described in Exhibit A attached
hereto, the "PROPERTY");
95
WHEREAS, 102 CHD has entered into a letter of intent to undertake the
permitting and construction of a new corporate headquarters facility for HIGHRES on the
PROPERTY, consisting of an 80,000 SF building and related site improvements
(collectively, the "FACILITY "), and to lease the PROPERTY to HIGHRES for a
minimum term of ten (10) years; and
WHEREAS, HIGHRES desires to relocate its existing headquarters from
Woburn, Massachusetts to the FACILITY, where it will, among other things, create new
jobs and retain existing local jobs, operate administrative and engineering offices, and
manufacture and distribute its high -end robotic systems and laboratory devices which are
used by pharmaceutical and biotech companies and academic research laboratories
worldwide; and such manufacturing does not generate environmentally hazardous
materials (the leasing, construction, outfitting and operation of the FACILITY and
PROPERTY, and related job creation, relocation and retention, is hereinafter referred to
as the "PROJECT ");
WHEREAS, the proposed development and construction of the new FACILITY
will require a capital investment from 102 CHD of approximately $10,500,000, in design,
construction and related soft costs;
WHEREAS, HIGHRES plans to invest approximately $1,000,000 in machinery
and various forms of equipment for the FACILITY, and will incur significant relocation
costs associated with the PROJECT;
WHEREAS, the Commonwealth of Massachusetts has designated the cities of
Beverly and Salem as jointly comprising an Economic Target Area ( "ETA ") pursuant to
M.G.L. Chapter 23A, Section 3D and the PROPERTY is located within the boundaries of
said ETA;
WHEREAS, in reliance on the proposed relocation and expansion to the
FACILITY, HIGHRES is growing its existing Massachusetts workforce of [95] full time
employees by [30] new positions ( "Minimum Workforce Increase') and further intends to
add an additional [150] positions ( "Intended Workforce Increase ") over the ten (10) year
period following its occupancy of the FACILITY;
WHEREAS, HIGHRES intends that the majority of new positions created will be
permanent, full -time jobs, which will predominantly require highly skilled workers who
will engineer and manufacture HIGHRES's specialized products;
WHEREAS, the assessed valuation of the unimproved PROPERTY for Fiscal
Year 2016 is One Million, Sixteen Thousand and Seven Hundred Dollars
($1,016,700.00); and
WHEREAS, under the proposed long term lease agreement for the PROPERTY,
HIGHRES shall be responsible for all local real estate taxes and assessments following
construction of the new FACILITY;
WHEREAS, 102 CHD and HIGHRES are jointly seeking a Tax Increment
Financing Exemption from the CITY for the development of the PROJECT;
WHEREAS, 102 CHD and HIGHRES do not intend to seek a real estate tax
abatement for the PROPERTY or any portion thereof, with respect to any fiscal year on
or before Fiscal year 2028;
WHEREAS, the City strongly supports increased economic development to
provide additional jobs for residents of the ETA and the CITY, to expand commercial
and industrial activity within the CITY, and to develop a healthy economy and a stronger
tax base;
WHEREAS, this AGREEMENT will facilitate capital investment in the City of
Beverly and the ETA, as well as new job creation and job relocation and retention, by
offsetting significant relocation costs for HIGHRES and lowering its long -term operating
costs under the lease agreement for the FACILITY;
WHEREAS, the PROJECT may not move forward as currently envisioned with
regard to the capital investments in the City of Beverly and future job creation without
this AGREEMENT;
WHEREAS, the PROJECT will further the economic development goals and the
criteria established for the ETA;
WHEREAS, by vote of the members of the City Council on , 2016
(the "vote of City Council vote "), and subject to approval by the, the CITY has been
authorized to enter into this AGREEMENT with HIGHRES and 102 CHD in the form
hereof,
NOW THEREFORE, in consideration of the mutual promises of the PARTIES
contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the PARTIES hereby agree as follows:
1. The CITY hereby enters into this Tax Increment Financing AGREEMENT with
102 CHD and HIGHRES, the subject of which is the PROPERTY.
2. By the vote of the City Council, the Mayor is duly authorized to enter into this
AGREEMENT.
The CITY hereby grants a Tax Increment Financing Exemption, the terms of
which are set forth below (hereinafter the "EXEMPTION ") for the PROPERTY,
for the benefit of HIGHRES, in accordance with Section 3E of Chapter 23A;
Section 59 of Chapter 40; and clause 51 of Section 5 of Chapter 59 of the
Massachusetts General Laws. The EXEMPTION shall be for a period of ten (10)
years (the "EXEMPTION PERIOD "), commencing with the Fiscal Year 2018
(which begins July 1, 2017) and ending with the Fiscal Year 2027 (which ends
June 30, 2027), and shall provide a percentage EXEMPTION from taxation as
described in the table below, on the incremental increased value of the
PROPERTY resulting solely from the PROJECT, for which HIGHRES is
responsible for paying in accordance with the terms of its tenancy and /or
occupancy of the PROPERTY.
4. The EXEMPTION formula for the PROJECT shall be calculated as prescribed by
the above - referenced provisions of the Massachusetts General Laws; the Acts and
Resolves of 1993, as amended; 751 CMR 22.00 et seq.; and as regulated by the
Department of Revenue. The EXEMPTION formula shall apply to the
incremental difference in the assessed valuation of the PROPERTY in the base
year (the "BASE VALUATION "), and the assessed valuation of the PROPERTY
for the next ten (10) years, commencing on July 1, 2017. As used herein, the
"base year" shall mean Fiscal Year 2017. The BASE VALUATION will be
adjusted annually by an adjustment factor as defined in the above referenced Code
of Massachusetts Regulations, M.G.L ch. 40, section 59, and all other applicable
laws, regulations and /or rules (the "ADJUSTED BASE VALUE "). The
ADJUSTED BASE VALUE will remain taxable throughout the period of this
AGREEMENT. The amount by which the real estate assessment for the
PROPERTY is increased (the "INCREMENT "), resulting from the PROJECT and
its construction and improvements, is the amount eligible for EXEMPTION from
taxation.
5. The EXEMPTION shall be calculated and remain unchallenged for each fiscal
year as follows:
97
Year >1
FY2018
10,0%
Yearn
FY2019
10.0%
Year 3
FY2020
10.0%
Year 4
FY2021
7.5%
Year >.5
FY2022
7.5%
Year 6
FY2023
7.5%
Year 7
FY2024
5.0%
Year 8
FY2025
5.0%
Year 9
FY2026
5.0%
Year 10
FY2027
5.0%
6. The EXEMPTION granted herein by the CITY shall be in consideration of the
following commitments of HIGHRES and 102 CHD respectively, which
HIGHRES and 102 CHD hereby affirm and commit, and which constitute the
material representations of the PARTIES that serve as the basis for the
EXEMPTION granted hereby:
a. 102 CHD shall invest a minimum of $10,500,000.00 in the improvement of
the PROPERTY and construction of the FACILITY for HIGHRES;
b. Upon completion of the FACILITY, estimated to be on or before July 1, 2017,
HIGHRES shall relocate its existing ninety -five (95) permanent full -time
Massachusetts jobs to the FACILITY, in addition to those jobs created
between the date of this AGREEMENT and such relocation date, if any;
c. HIGHRES shall maintain the FACILITY as its headquarters and shall use
commercially reasonable efforts to achieve the Minimum Workforce Increase
during the initial five (5) years of its occupancy of the FACILITY, consistent
with current projections; in furtherance of the foregoing limitation, the CITY
expressly acknowledges and agrees that this AGREEMENT and the
EXEMPTION are being extended to HIGHRES and 102 CHD in reliance
upon predominantly the significant capital investment required for the
PROJECT and secondarily on job creation. The failure of HIGHRES to meet
the job creation goals stated herein shall not constitute a default unless the
CITY demonstrates that HIGHRES has failed to use commercially reasonable
efforts to grow its workforce, taking into account then existing economic
conditions.;
d. HIGHRES shall invest a minimum of $1,000,000 in equipment and machinery
for the FACILITY within the first two (2) years of its operations ending on
June 30, 2019;
e. HIGHRES shall commence occupancy of the FACILITY (which may be
partially completed) by July 1, 2017; the EXEMPTION shall not become
effective unless and until the FACILITY is placed in service and operating;
for the purpose of this Section 6.e, the FACILITY shall be deemed to be
placed in service and operating so long as HIGHRES has commenced
manufacturing and assembly uses at the FACILITY on or before July 1, 2017
and the FACILITY is serving as the corporate headquarters for HIGHRES on
or before October 30, 2017;
f HIGHRES shall afford priority (subject to applicable law and assuming equal
qualification) to residents of the ETA in its hiring of new employees at the
FACILITY, with priority being given in the following order: residents of the
CITY, residents of Salem and those who are otherwise residents of the
Commonwealth of Massachusetts. In order to facilitate such employment,
HIGHRES shall advertise (at its cost and expense) in the local newspapers of
general circulation in the ETA encouraging such residents to apply for
employment with HIGHRES any time such advertisements are otherwise
.•
placed by or on behalf of HIGHRES for employment at the FACILITY; 102
CHD shall explore and pursue (subject to applicable law and assuming equal
qualification) opportunities to hire qualified local contractors, vendors and
suppliers, in connection with the PROJECT, with first priority given to
Beverly -based businesses and second priority to ETA -based businesses, and
third priority to Commonwealth of Massachusetts -based businesses;
g. HIGHRES agrees to submit annual reports on job creation, job retention and
new investments at the FACILITY to the CITY on or before October 1st of
each year during the EXEMPTION PERIOD, except as otherwise provided in
this AGREEMENT, and in addition such other reports in content and the
manner as required by M.G.L. c. 40, § 59(viii). In accordance with the laws
of the Commonwealth of Massachusetts, the annual report shall include the
number of permanent (regular), full -time jobs retained and created and the
number of people hired from within the ETA annually and on a cumulative
basis; the value of capital investments made with respect to the PROPERTY
annually and on a cumulative basis; and a description of the utilization of
local contractors, vendors and suppliers annually and on a cumulative basis.
The reports shall be itemized as to the character of the work in such general
categories as determined by the Building Commissioner of the City of
Beverly, and shall include for each category the total investment for the
reporting period and on a cumulative basis. The construction cost reflected in
building permit applications, where applicable, shall operate to cap investment
qualified for favorable tax treatment under this AGREEMENT.
7. If HIGHRES fails to meet or comply with the requirements of Paragraph 6 above
or any of its obligations under this AGREEMENT, or if 102 CHD fails to comply
with its agreement in Section 6.a above, the CITY, acting through its Mayor, may
take such action as it deems to be appropriate to discontinue this AGREEMENT,
including but not limited to notice to the EACC and /or a request for
decertification of the PROJECT by the EACC. Upon decertification, the CITY
shall immediately discontinue the Tax Increment Financing Exemption benefits
described herein effective the date of such decertification. No such decertification
action shall be undertaken by the Mayor until first providing HIGHRES and 102
CHD with at least sixty (60) days prior written notice, explaining in reasonable
detail the grounds for decertification, and providing the defaulting party with the
opportunity to correct any deficiencies within said sixty (60) day period, provided
that the defaulting party exercises due diligence in the remedying of such default.
Notwithstanding and without being subject to the foregoing right to correct, if
HIGHRES ceases to be an operating entity, if a voluntary or involuntary petition
of bankruptcy or insolvency is filed by or against HIGHRES, or if HIGHRES
transfers or forfeits its leasehold interest and /or control or operation of the
PROPERTY or any portion thereof (including but not limited to the FACILITY),
and /or relocates the FACILITY and the PROJECT from the PROPERTY, without
the prior written approval of the CITY during the term of the AGREEMENT, the
CITY may request decertification of the PROJECT. If the EACC decertifies the
PROJECT in response to a request by the CITY pursuant to this Paragraph, the
CITY shall be entitled to recoupment from HIGHRES of the value of prior
economic benefits granted by the CITY under this AGREEMENT for the time
period between the date of the CITY's request to the EACC for decertification
and the date of the EACC's decertification of the Project or the period
commencing with the Fiscal Year immediately following the Fiscal Year in which
HIRES and /or 102 CHD did not or ceased to comply with this Agreement,
whichever is longer (herein, the "Recoupment Period "); said remedy shall not be
exclusive and shall be in addition to any other remedy available under law or in
equity. Venue and jurisdiction for any such action shall lie in a court of
competent jurisdiction in Essex County, Massachusetts.
..
8. The PARTIES acknowledge and agree that 102 CHD is entering into this
AGREEMENT for the sole purpose of memorializing the agreement of 102 CHD
to complete the construction of the FACILITY for the PROJECT, and its
acknowledgment to the terms of the EXEMPTION granted herein. The benefit
of the EXEMPTION granted herein shall inure solely to the benefit of HIGHRES,
as tenant of the PROPERTY. Notwithstanding anything to the contrary in this
AGREEMENT, in the event that the PROJECT is decertified under Paragraph 7
above following the completion of 102 CHD's obligations to develop and
construct the FACILITY, the CITY agrees to look solely to HIGHRES for
recoupment of the value of any economic benefits granted by the CITY under this
AGREEMENT, whether during the Recoupment Period or otherwise.
9. This AGREEMENT shall be binding upon all PARTIES to it, and shall be
binding upon and inure to the benefit of subsequent owners of the PROPERTY,
so long as the PROJECT has not been decertified by the EACC.
10. The matters described above as obligations of HIGHRES and 102 CHD are only
conditions to the eligibility for tax exemptions under this AGREEMENT.
11. This Agreement is subject to Massachusetts General Laws Chapter 23A, Section
3A -3F inclusive, Chapter 40, Section 59, and Chapter 59, Section 5, cl. 51, 760
CMR 22.00, and any other applicable statutes and regulations (including the
remedies set forth therein), all of which are incorporated herein in their entirety by
reference.
12. Should any provision of this AGREEMENT be declared or determined by a court
or administrative agency of competent jurisdiction to be illegal or invalid, the
validity of the remaining parts, terms, and provisions shall not be affected thereby
and said illegal or invalid part, term or provision shall be deemed not to be a part
of the AGREEMENT.
13. This AGREEMENT is expressly subject to and conditioned upon approval of the
PROJECT as an approved Tax Increment Financing Agreement under M.G.L. c.
40, § 59(vii). In the event that the EACC does not approve the AGREEMENT, or
the EACC decertifies the PROJECT, this AGREEMENT shall be immediately
deemed null and void and /or this AGREEMENT shall terminate, with no further
recourse by HIGHRES or 102 CHD. The CITY's rights under Paragraph 8 above
shall survive any such termination or if the AGREEMENT becomes null and
void.
14. All terms not otherwise defined herein shall have their definitions as appearing
under M.G.L. c. 23A, § 3A, to the extent applicable.
15. This AGREEMENT contains the entire agreement between the PARTIES, and
supersedes all prior and contemporaneous agreements, communications and
understandings, whether written or oral, with respect to the subject matter hereof.
Each PARTY represents and warrants that in executing this AGREEMENT it has
not relied and does not rely upon any representation or statement made by the
other PARTY outside this written AGREEMENT.
16. This AGREEMENT is and always will be deemed to have been made and entered
into in the Commonwealth of Massachusetts, and it and the legal relations
between the PARTIES shall in all respects be subject to, interpreted, enforced and
governed under the laws of said Commonwealth without giving effect to the
conflicts of laws provisions thereof.
17. The parties further agree that the terms and conditions of this AGREEMENT shall
be construed as a whole, according to their fair meaning, and that this
AGREEMENT shall not be strictly construed against any party.
100
18. The paragraph headings in this AGREEMENT are for reference purposes only,
and shall not be deemed to affect the substantive meaning or interpretation of this
AGREEMENT.
19. This AGREEMENT may be executed in any number of counterparts, each of
which counterparts, when executed and delivered, shall be deemed to be an
original.
20. Each term of this AGREEMENT is contractual and not merely a recital.
21. The PARTIES will execute all such further and additional documents as shall be
reasonable, convenient, necessary or desirable to carry out the provisions of this
AGREEMENT.
22. The undersigned signatories do hereby represent and warrant that they are duly
authorized to enter into, execute and deliver this AGREEMENT.
[SIGNATURE PAGE FOLLOWS]
WITNESSETH the execution and delivery of this AGREEMENT by the undersigned as
an instrument under seal as of the date first above written.
CITY OF BEVERLY
Delaware
HIGHRES BIOSOLUTIONS, INC., a
corporation
By:
Michael P. Cahill
Mayor
By:
Louis J. Guarracina
President
102 CHERRY HILL DEVELOPMENT,LLC, a
Massachusetts limitedliability company
By:
Stephen J. Connolly, IV, Manager
EXHIBIT A
The land commonly known 102 Cherry Hill Drive, Beverly, Essex County,
Massachusetts, being shown as Lot B on the plan entitled "Plan of Land in Beverly,
Mass." dated January 30, 2013 prepared by Hayes Engineering, Inc., and recorded
with the Essex South Registry of Deeds in Plan Book 429, Plan 29.
Lot B contains 5.853 acres according to said Plan.
For title reference, see Deed dated September 3, 2013 recorded with said Registry of
Deeds in Book 32800, Page 450.
101
102
Current Assessment FY 16
$ 1
Base
Estimated AssessmentYR 1
$ 10
Tax Rate 1
$ 26.41
Levy Percent Growth
2.50%
2017
26
2018
27
256
284
10%
2`
2019
28
263
291
10%
2(
2020
28
269
298
10%
2(
2021
29
276
306
7.5%
2(
2022
30
283
313
7.5%
21
2023
31
290
321
7.5%
21
2024
31
297
329
5%
1�
2025
32
305
337
5%
1 `
2026
33
312
346
5%
1 `
2027
34
320
354
5%
1 f
Totals
335
2
3
$20
102
March 24, 2015
Mayor Michael P. Cahill
City Hall, 191 Cabot Street
Beverly, MA 01915
RE: HIGHRES BIOSOLUTIONS, INC. REQUEST FOR TAX INCREMENT FINANCING AND
CERTIFICATION UNDER THE ECONOMIC DEVELOPMENT IMPROVEMENT
PROGRAM (EDIP)
Dear Mayor Cahill:
At a meeting of the Economic and Community Development Council held on Monday, March
10, 2016 members met with the President and CEO of HighRes Biosolutions, Inc. (HighRes) to
review a proposed relocation of their facilities to 102 Cherry Hill Drive. The proposed
relocation includes construction of an 80,000 square foot building to house the world
headquarters for HighRes and including space for office, Research and Development,
manufacturing functions. In addition to construction of the new facility site improvements
will be made to accommodate loading facilities, 260 parking spaces, and stormwater
management infrastructure.
The proposal includes a request that the City consider a Tax Increment Financing (TIF)
agreement and assistance in preparing an application to Massachusetts Office of Business
Development (MOBD) underthe Economic Development Incentive (EDIP) program. HighRes
is eligible for additional incentives and program support through the Massachusetts Life
Science Center. Benefits of the project as proposed will include a guarantee by HighRes to
invest at least $10.5 million in site and building construction along with an additional and $1
million on machinery and equipment. As part of its relocation to Beverly HighRes bring
approximately 100 employees from its current facility and create approximately an
additional 200 high wage and high skilled jobs over the life of the TIF.
Based on the foregoing and the contents of the project proposal members voted
unanimously in favor 6 -0 to recommend the City support implementation of a TIF
agreement and EDIP applications be forwarded to the City Council for consideration.
Members voting in favor of the recommendation citing the following reasons for doing
so:
• The number of new jobs created as a result of the move and construction of a
new high - technology facility at 102 Cherry Hill Drive a majority of which include
well paying engineering positions (including mechanical, electrical, and
software) making over $100,000 annually;
• The estimated additional tax revenue of derived from HighRes' planned and
promised investment in building construction during and over the life of a TIF
Agreement will far outweigh current tax revenue of the subject property;
103
• The economic development contemplated by the application is consistent with
the City's economic development goals, policies, and objectives as outlined in
the Master Plan;
At your request, I would be happy to meet with you to discuss the committee's
recommendation in greater detail.
Respectfully,
Paul Guanci
Chairman
PG /ac
cc: Aaron Clausen, Planning Director
Terry DeBlasie, City Assessor
Bryant Ayles, Finance Director
ORDER APPROVING TAX INCREMENT FINANCE AGREEMENT
WHEREAS, HighRes Biosolutions, Inc.. ( "HighRes ") seeks and intends to enter into a
long term ground lease for the property located at 102 Cherry Hill Drive, Beverly, MA
01915, City Assessor's Map 65 parcel 3, from 102 Cherry Hill Development, LLC (the
"PROPERTY "), for the purpose of an expansion project that will include significant
capital investment and local job retention and creation, and intends to submit an
application under the Commonwealth's Economic Development Incentive Program
requesting certification the project as a "Certified Project" under M.G.L. ch. 23A;
WHEREAS, the Commonwealth has designated the cities of Beverly and Salem as
jointly comprising an Economic Target Area ( "ETA ") pursuant to M.G.L. Chapter 23A,
Section 313;
WHEREAS, the Council supports HighRes' proposed expansion project in the ETA and
within the City's priority development area, which includes but is not limited to investing
approximately $10.5 million in the construction of a new building and the renovation of
an existing building on the PROPERTY, and an additional $1 million in investments
towards machinery and equipment, as well as the relocation and /or creation of a
significant number jobs at the PROPERTY that will require predominantly highly - skilled
workers;
WHEREAS, HighRes intends to relocate its international headquarters to the
PROPERTY;
WHEREAS, the Council finds that HighRes' proposed expansion project is consistent
with the economic development goals of the Beverly Master Plan, and;
WHEREAS, the Council finds that the proposed expansion project will not overburden
the City's municipal services, existing infrastructure, or current utility services, and
presents a significant opportunity to increase employment opportunities for residents of
Beverly /Salem ETA, thereby improving economic conditions within this area, and;
WHEREAS, the Council supports the use of tax increment financing as a mechanism to
encourage economic development within the ETA and the City of Beverly's priority
development area;
NOW THEREFORE it is ORDERED that:
The Mayor is authorized to execute the Tax Increment Financing Agreement attached
hereto, and is further authorized to modify the Agreement in order to correct
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typographical errors, scrivener's errors and /or to make other corrections or modifications
that do not alter the substance of the agreement.
The City Council further authorizes the submission of an application to the Massachusetts
Economic Assistance Coordinating Council for certification of a local TIF agreement in
connection with the Economic Development Incentive Program
Adopted this 2nd day of May, 2016.
Michael P. Cahill, Mayor
ATTEST:
D. Wesley Slate, Jr., City Clerk
Referred to Finance & Pro
Date
Date
Communications from other City Officers & Boards: None
Communications, Applications & Petitions:
#102
Application — License to Peddle — Jeffrey Dean, 78 Brimbal Avenue
Referred to Legal Affairs
#103
Application — License to Peddle — Nicole J. Birarelli, 40 Western Avenue
Referred to Legal Affairs
#104
Communication —American Legion re: Memorial Day Parade
Receive and Place on File — Vote: 8 -0.
#105
Application — License — Fortuneteller — Sophia Andrianopoulos, 11 Sunset DR
Referred to Legal Affairs
105
Unfinished Business: None
Final Passage:
#067 - Stop Sign @ Overlook & Echo Avenues
ORDERED: Be it ordained by the City Council of the City of Beverly as follows:
In the year Two Thousand and Sixteen,
An Ordinance Amending an Ordinance relative to:
Chapter 270 "Vehicles and Traffic ",
Amending Section 270 -25 "Stop Intersections" as follows:
ADD: (B) Overlook Avenue at its intersection with Echo Avenue
First Reading: April 19, 2016
Second Reading: May 2, 2016
Ordinance to take effect upon Publication and Final Passage
Final Passage: May 2, 2016
Order read once and adopted. Vote: 8 -0.
#068 - Stop Sign @ Reservoir & Sohier Roads
ORDERED: Be it ordained by the City Council of the City of Beverly as follows:
In the year Two Thousand and Sixteen,
An Ordinance Amending an Ordinance relative to:
Chapter 270 "Vehicles and Traffic ",
Amending Section 270 -25 "Stop Intersections" as follows:
ADD: (B) Reservoir Road at its intersection with Sohier Road
First Reading: April 19, 2016
Second Reading: May 2, 2016
Ordinance to take effect upon Publication and Final Passage
Final Passage: May 2, 2016
Order read once and adopted. Vote: 8 -0.
#081 - Sunday Closings
ORDERED: Be it ordained by the City Council of the City of Beverly as follows:
In the year Two Thousand and Sixteen,
An Ordinance Amending an Ordinance relative to:
Chapter 192 "Licenses and Business Regulations ", Section 192 -21 "Hours of Operation"
By DELETING the phrase, "9:00 p.m. to sunrise of the following morning" and
By REPLACING it with the phrase 10:00 p.m. to 6:00 a.m. of the following morning" and
By DELETING the sentence: "No trading shall be done on Sundays."
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The Section, as Amended, will read:
Hours of operation
The shops referred to in this article shall be closed from 10:00 p.m. to 6:00 a.m. of the following
morning, and no keeper of such shop shall purchase or sell any of the items mentioned in this
article during such hours.
First Reading: April 11, 2016
Second Reading: April 19, 2016
Ordinance to take effect upon Publication and Final Passage
Final Passage: May 2, 2016
Order read once and adopted. Vote: 8 -0.
Reports of Committees:
#092
The Committee on Finance & Property, to whom was referred the matter of Communication — Mayor
re: Budgetary Transfers for Shortfalls & Capital Projects, have considered said matter and beg leave
to report as follows:
Recommend the Council Approve the Request
Order read once and adopted. Vote: 8 -0.
#100
The Committee on Finance & Property, to whom was referred the matter of Communication — Mayor
re: TIF — HighRes Biosolutions, Inc. — 102 Cherry Hill Drive, have considered said matter and beg
leave to report as follows:
Recommend the Council approve the Request
Order read once and adopted. Vote: 8 -0.
#094
The Committee on Legal Affairs, to whom was referred the matter of Communication — Mayor re:
Reappointment — Constable Timothy J. Rubchinuk, 4 Shortell Avenue, have considered said matter
and beg leave to report as follows:
Recommend the Council Approve the Reappointment
Order read once and adopted. Vote: 8 -0.
. U11Y
The Committee on Legal Affairs, to whom was referred the matter of Application for License to
Peddle — Jeffrey Dean, 78 Brimbal Avenue, Ice Cream, Candy, Drinks, have considered said matter
and beg leave to report as follows:
Recommend the License be granted
Order read once and adopted. Vote: 8 -0.
107
#103
The Committee on Legal Affairs, to whom was referred the matter of Application for License to
Peddle — Nicole J. Birarelli, 40 Western Avenue, Lobster Rolls, Chowder, Hot Dogs, have considered
said matter and beg leave to report as follows:
Recommend the License be granted
Order read once and adopted. Vote: 8 -0.
#105
The Committee on Legal Affairs, to whom was referred the matter of Application for Fortunetellers
License — Sophia Andrianopoulos, 11 Sunset Drive, have considered said matter and beg leave to
report as follows:
Recommend the License be granted
Order read once and adopted. Vote: 8 -0.
Motions and Orders: None
Meeting Adjourned: 9:25 PM Attest: D. Wesley Slate, Jr.
City Clerk
W