Polymer Corp.'s chief operating officer said a "sizable portion" of his workforce comes from Palmer.
PALMER — The Town Council gave the OK for the town manager to authorize a tax increment financing agreement for 10 years with Polymer Corp., a manufacturer that plans to move into the Palmer Industrial Park on Third Street in Bondsville.
The tax break was approved at last week's council meeting, and is subject to approval by the state Economic Assistance Coordinating Council.
Polymer, which now operates on Palmer Road in Monson, performs injection molding and manufactures synthetic gunstocks and recoil pads as well as other components and accessories for firearms applications.
James F. Ryan, Polymer's chief operating officer, said he is excited to move the Monson location to Palmer. He said the business had been looking for some time for a suitable facility.
He said a "sizable portion" of his workforce comes from Palmer. There are 78 employees, but Ryan said the company hopes to grow to 100 workers with the move. He also spoke about working with Pathfinder Regional Vocational Technical High School students.
Polymer plans to make $1 million in improvements to the 85,000-square-foot building. The building's current assessed valuation is $1.5 million, which results in $26,369.70 in annual property taxes for the town.
The tax increment financing exemption takes effect July 1, 2012 (the start of fiscal year 2013) and ends June 30, 2023. The renovations are the target of the exemption. The first two years, there will be a 100 percent tax break on the renovation. That goes down to 60 percent in the third year, 40 percent in the fourth year, 20 percent in the fifth year, and 10 percent in the last five years.
According to information provided by Town Manager Charles T. Blanchard, the town stands to gain $127,501 in extra tax revenue over the 10-year period even with the tax break. The Bondsville Fire and Water District also needs to approve the agreement at its upcoming annual meeting.
Blanchard said he thinks it's terrific the company is relocating to Palmer.
"They have a broad range of products. They have good paying jobs," Blanchard said.
"Thanks for investing in our community," District 4 Town Councilor Donald Blais said.
The agreement is between the town, Polymer, and Manchem LLC, which is leasing the property to Polymer.
Kenneth P. Vicunas, who is affiliated with Manchem, said Polymer will be moving a lot of equipment and employees to Palmer, and described it as a "win-win" for all involved. He said the move should take place over the summer, with the company settled in its new location by September.
The building Polymer is moving into was built in 1991 and is used for warehousing. As Polymer will be using only 58,000-square-feet of the building, the other tenants should still have enough space for their operations, he said.