12-13-06 Community & Economic Development

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A. J. Wright originally planned to build a 500,000 sq. ft. warehouse. They built 543,000 sq. ft. The projected cost of $26,500,000 was actually $14,000,000. The projected S74 jobs with salary of $37.5 million was actually 433 new jobs with $7.1 million in salaries. A three page press release details the reasons for the shortfall. Despite efforts locally, corporate decisions in Massachusetts were blamed for the outcome. Marty Wolfson asked why employee projections were near SO%, salaries were only 20%. Actual wages average $7.00 hr. Starting wages are $6.25 hr. rising to $8.00 hr. after 3 years. The press release did not offer reason for optimism in the short term. 7. Value Production Inc. - Value Production said their abatement would result in an investment of $250,000. It was actually $425,085. They had hoped to retain 20 employees and hire 4 new. They actually employ 18. Current machinists are typically working 48 hrs. a week. Difficulty in finding CNC qualified machinists was the reason offered far this. 8. Federal Mogul Ed Fain the Plant Manager represented Federal Mogul. The company has received one real property and four personal property abatements. In each case Federal Mogul was in compliance as far as meeting total dollar investment; but fell short of projectians for employment. While 548 jobs were hoped far, 514 are actually employed. Mr. Fain through testimony and handouts succinctly described the highly competitive, ever changing automotive component business. He remains optimistic. 9. Lock Joint Tube (LJT) - LJT was represented by Bob Strzelecki, Controller and Tim Hernly, Attorney. LJT -has three abatements under review, 2 real property and one personal property. In each case Community and Economic Developrent reports lack of compliance for not meeting investment and employment forecasts. In their defense Community and Economic Development as well as LJT representatives cited the disruption of business not only due to external economic factors; but also changes in location of production facilities. They admitted to overly optimistic forecasts. 10. Total Enterprises LTD. Lance Long, Vice-President and Tom Walz, Attorney represented the fact that Total Enterprises was actually in compliance or very near to projections made for their S year personal property abatement. In fact while projecting an investment of approximately a half million the actual was nearly 3/4 million. Furthermore, current employment is claimed to be 58 or 20 more than projected. 3