HOME RESIDENTS BUSINESS LEISURE GOVERNMENT CALENDAR

Titleflex Tax Agreement Approved

ECONOMIC ASSISTANCE COORDINATING COUNCIL UNANIMOUSLY APPROVES SPECIAL TAX AGREEMENT FOR TITEFLEX CORPORATION

April 2, 2010 – Mayor Domenic J. Sarno announced today that The Economic Assistance Coordinating Council (EACC) of the Commonwealth of Massachusetts unanimously approved on Wednesday a Special Tax Agreement (STA) for Springfield's Titeflex Corporation. The agreement, crafted by the City of Springfield, retains 100 manufacturing jobs in the East Springfield neighborhood. State approval was the final approval needed after the Springfield City Council voted 12-0 in favor of the proposal on March 1, 2010. The agreement will now be active as of July 1, 2010, and runs for a term of 12 years.

"We are thrilled that the Commonwealth was in full agreement with the City that this was a crucial job retention project for Springfield," said Mayor Domenic J. Sarno. "With the threat of this company closing in Springfield and moving out of state, it took swift action both here in Springfield and at the State level to save these positions," stated Sarno.

Titeflex has been located in Springfield, MA at 603 Hendee Street since 1956, and is a world leader in the production of braided PTFE hose for use in aerospace, automotive, and general industrial applications. The company employs 101 employees at its East Springfield plant in a building of nearly 300,000 square feet. 

“This is a great success story for our City and region and keeping Titeflex in Springfield means we will be retaining more than 100 quality jobs and an internationally recognized brand," said John Judge, Chief Development Officer. "The Special Tax Agreement helps a company with a 50 year history in our community.  The EACC and City decisions give Titeflex an opportunity to grow in Springfield for another 50 years,” stated Judge.   

Titeflex’s corporate headquarters in the past two years had  advanced plans to close the Springfield facility and relocate it to South Carolina, taking advantage of generous incentives. Working with Mayor Domenic Sarno, City Councilor Timothy Rooke, City Councilor Michael Fenton, the company’s local management team  developed a strategy  to keep the company in Springfield for the next 12 years.

The City’s economic development office, working with the Commonwealth’s Massachusetts Office of Business Development, and the local management team completed a proposal to keep the company in Springfield for a 12 year term that includes a Special Tax Agreement (STA). The STA falls under the State’s Economic Development Incentive Program (EDIP), and allows the municipality to exempt taxes for a term of between 5 and 20 years. The company will invest approximately $3.3 million in site improvements during that time, and create a new parcel available for development. The company has also committed to engaging in a mentoring/internship program with the Springfield School Department.  Titeflex also creates economic spinoff in spending over $3 million per year in purchasing goods and services from Massachusetts based businesses. 

Presenting to the EACC board on behalf of the project was Michael Vedovelli from the Massachusetts Office of Business Development; Brian Connors from the City of Springfield; and Peter Letendre and Martin Hough from Titeflex.


Springfield News:









Page last updated:  Friday, June 18, 2010 03:39 pm