Gulfstream is expected to announce whether it will expand in Westfield next week.
WESTFIELD - Local property tax incentives offered to Gulfstream Aerospace Corp. for expansion of corporate jet services and maintenance at Barnes Regional Airport were approved Tuesday by the Massachusetts Office of Business Development.
Also approved Tuesday were incentives aimed at attracting Seal Ryt, an Easthampton manufacturing firm, to Westfield and Armbrook Senior Living LLC which is planning a 107 unit complex for senior and assisted living at 551 North Rd.
Mayor Daniel M. Knapik, joined by other city officials at the state meeting, announced the approval. Gov. Deval L. Patrick has scheduled a formal announcement on the incentive package for Oct. 7. Gulfstream's announcement on whether it will expand in Westfield is expected next week.
Knapik credited the state's decision with helping the city pave the way for each of the three companies to expand and establish business operations in the city.
"The favorable vote is for three very good projects that hit the economic sweet spot for our city," said Knapik.
As for Gulfstream, which is also consiering airports in Wisconsin and Georgia for creations of a $20 million 100,000 square-foot service hangar, Knapik said "Westfield is awaiting their decision. But, this region not only offers Gulfstream a superior airport top operate from but a good pool of both apprentice as well as well-trained labor pool to draw from."
Ira P. Berman, senior vice president for administration and Gulfstream's general counsel, told the City Council last week a decision on Westfield will be made "shortly" after state approval of the incentive package.
Gulfstream owns property adjacent to Barnes Airport and has operated here for at least the past 10 years.
Gulfstream's expansion here will include a 50-year lease of about 11 acres of airport property for the maintenance and service hangar. The company will pay the airport an average of about $54,000 annually for the lease. The Airport Commission and City Council has also approved lease extensions for another 50 years.
Tax incentives will save the company an estimated $4.2 million over its first 15 years of operation and the city will receive an estimated $4 million in property taxes over the same period of time. At the end of the 15 years, taxes on the new hangar will be ab out $550,000 annually.
The city will also gain other revenue from the hangar operation, such as increased landing fees and fuel purchases at the airport.
Five-year tax incentives were approved for Seal Ryt and Armbrook projects.