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Details of Siemens TIF

December 10, 2015

There will be a public meeting of the Board of Selectmen on January 5, with representatives of Siemens present, to discuss Siemens’ proposed expansion and proposed TIF (tax-increment-financing) agreement with the town of Walpole.

Here are some details of the proposed Siemens TIF:

Total investment by Siemens would be about $300 million in expansion project.

Siemens would renovate their current facility and expand by about 250,000 square feet.

The addition will include office, manufacturing, and lab space, outfitted with a total of approximately $70 million in high-tech equipment.

It is anticipated that the expansion will include 115,000 SF of new office space, 40,000 SF of new manufacturing and lab space, 25,000 SF of new warehouse space, 100,000 SF of other mechanical space, and a 190,000 SF new parking garage.

Over the course of the construction project, lasting about three years, there will be hundreds of construction jobs created. Siemens will also create between 400 and 700 permanent life sciences jobs based in Walpole, with annual compensations of around $140,000 for many of the positions.

During the first five years of the agreement, Siemens would get a 90 percent tax reduction from the town, an 80 percent reduction in years 6-10, 70 percent reduction in years 11-15, and 60 percent reduction in years 16-20, averaging 75 percent over 20 years.

As part of the proposed TIF, Siemens would provide funding to the town within the first five years of the agreement for various purposes (there does not appear to be any additional compensation to the town after the first five years):

$100,000 toward cost of constructing and equipping playing fields

$160,000 toward snow removal and equipment

$250,000 toward cost of new ladder truck for Walpole Fire Department, prior to 2018

Reimbursements to the town for out-of-pocket legal and consulting expenses for the project

As part of the tri-partite agreement, between Siemens, the town, and the state, the state would provide Siemens with substantial tax credits. The state would also provide $2.5 million toward unspecified road improvements on Coney Street near Siemens.

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One Comment leave one →
  1. Charles permalink
    December 11, 2015 5:12 PM

    The word I hear is the town will not charge Siemens any permit fees for the project. Building permits alone would be 3 1/2 million dollars. The building department charges me $15 per thousand of work on my commercial jobs and Siemens will pay none? Where is the additional money going? Who in town hall or on the Board of Selectmen is getting this money? Maybe Mr. Salvatore is on to something. Instead the town will get $500,000 in what seems like a good deed by Siemens and legitimate negotiation by the town. Wouldn’t 3 million up front be more beneficial to us, the citizens of Walpole? Shouldn’t we as citizens decide if this project is good for the Town and if it is why should Siemens obtain the deep discounts when we the citizens and local labor have to pay the premium?

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