Two other tax packages are being negotiated to attract a new machine shop and senior assisted living complex to Westfield.
WESTFIELD - City Councilors have agreed to meet Sept. 14 to consider details of a property tax incentive package designed to encourage Gulfstream, a division of General Dynamics, to build a $20 million corporate jet service center and create an estimated 100 new jobs.
At the request of Mayor Daniel M. Knapik, the council's Finance and Legislative and Ordinance committees agreed to the Sept. 14 meeting to review details of the proposal and meet with Gulfstream representatives.
Also on the 7p.m. agenda is expected to be review of two additional proposals aimed at drawing a new machine business operation to Westfield and creation of a 117-unit senior assisted living complex to North Road.
The proposals represent tax incentive packages for each project that will provide the busiensses with a reduction on property taxes for between five and 15 years.
Gulfstream has operated in Westfield, on property it owns next to Barnes Regional Airport for several years. The expansion project, if approved, will be created on property owned by the airport, serve top maintain an existing 131 jobs, create 100 new jobs and eventually provide Westfield with as much as $500,000 in annual property taxes.
Ward 5 Councilor Richard E. Onofrey Jr., finance chairman, said the three tax proposals "represent a lot of money that will come to Westfield and I am willing to consider a tax break to someone or company willing to expand or build in the city.”
Ward 6 Councilor Christopher M. Crean said of Gulfstream "this is something great for the city,m for Ward 6 and the airport. It is a huge enhancement for the city."
Ward 2 Councilor James E. Brown Jr., chairman of Legislation and Ordinance Committee, said he is hopeful a “package that benefits the city” will result from the meeting.
David A. Flaherty, councilor-at-large, said he is not a “fan of tax incentives but I could support the Gulfstream reqyuest because of the size of the project. But, I do not want to set a standard for everyone who comes to town. Tax incentive is attractive for large projects but not necessary for every business.”
Preliminary negotiations for the three incentive proposals were conducted by Knapik and City Advancement Officer Jeffrey R. Daley.
If approved, they have said Gulfstream could complete the project and be operational by April 2013.
The center would service Gulfstream's new GS650 corporate aircraft, which come with a price tag of some $65 million each. The aircraft is currently undergoing Federal Aviation Administration certification and approval, Daley said.
Two additional tax incentive plans are for five-year periods.
Seal Ryt, a manufacturer of seals for a variety of machine parts, will move from Easthampton to Westfield and renovate a former warehouse facility on ServiStar Industrial Way. Cost of that project is estimated at $2.2 million. The company currently employs 18 people and will add another 12 jobs, Daley said.
Armbrook Senior Living LLC was to create 107 units of senior living facility at 551 North Road, near the White Oak School, a private educational facility. That project, estimated at about $20 million, will create 35 full-time jobs when completed, Knapik and Daley said.
One of the city's largest employers, Home Depot, opened a $25 million Northeast distribution center last December on ServiStar Industrial Way with some 300 employees. City and state officials approved a tax incentive plan for the home-repair-do-it-yourself company that reduced its annual property taxes to the city by 50 percent for the first 10-years of operation. First year property taxes on Home Depot is estimated at $350,000.