East Baking Company Inc., a local wholesale bakery and distribution company at 104 Whiting Farms Road, is in line to receive tax breaks and other investment incentives after expansion project that will create eight full-time jobs.
HOLYOKE -- A local wholesale bakery and distribution company is in line to receive tax breaks and other investment incentives because of an expansion project that calls for creating at least eight full-time jobs within the next five years.
East Baking Company Inc., formerly a mom-and-pop retail bakery, abandoned its cramped quarters in Ludlow for a 28,000-square-foot facility at 104 Whiting Farms Road, Holyoke, in December 2010. The growing company, which was deemed eligible for help under the Massachusetts Economic Development Incentive Program, is now entitled to receive state investment tax credits of up to 3 percent and local property tax exemptions, according to state and local officials.
In order to qualify for investment incentives, the company had to win "certified project status" from the state, which was awarded Wednesday by the Massachusetts Economic Assistance Coordinating Council. Prior to state approval, the Holyoke City Council also approved the certified project, which includes a tax increment financing agreement, or TIF, that enables municipalities to provide incentives to foster job creation and stimulate business growth.
Businesses and municipalities that enter into TIF agreements consent to a business property tax exemption based on the percentage of value added through new construction or significant improvement for a period of five to 20 years.
According to Holyoke officials, East Baking fits the bill perfectly, having invested more than $2.3 million in the Whiting Farms Road facility -- including renovations and new equipment. The company also has committed to create at least eight permanent, full-time jobs by 2016.
East Baking, which currently employs nine people, offers a full line of bakery products ranging from bread, cake and pastry to frozen dough and other items.
"The approval of this project represents a significant investment in the community by committing to new job creation and adding increased value to the existing property," Holyoke Mayor Elaine A. Pluta said Friday in a statement.
East Baking Company is a family-owned business that was created five years ago. The company is growing rapidly and has many large institutional customers, such as Baystate Health Systems, the University of Massachusetts, and numerous public schools throughout the region.
Business are eligible to apply for certified project status from the state if they are located within a designated "economic opportunity area," such as Holyoke.