IBM's plans for campus rev up hope

Littleton is abuzz with news that IBM is moving to town, bringing with it jobs, tax revenue, employees who will support local stores and services, and the hope that more businesses will follow.

In neighboring Westford, meanwhile, officials breathed a collective sigh of relief after the corporate giant said last week it was not leaving and instead announced plans to create a software campus in both Littleton and Westford where it will employ 3,400 people. IBM will lease space on King Street formerly occupied by Hewlett-Packard Co. and continue to operate facilities 3 miles away in Westford.

"We're really excited about this," said Kenneth P. Eldridge, chairman of the Littleton Board of Selectmen. "It's great for Littleton in a whole variety of areas. Everyone is abuzz over this."

In Westford, officials cheered IBM's decision. Town Manager Steve Ledoux said he had heard rumblings last year that the company might be packing up to go.

"Generally, it's great news and a big relief for us," Ledoux said. "It's certainly good for the local economy."

But the news isn't as positive throughout the region. To create the new campus, IBM will close software offices in Bedford, Lexington, Lowell, Marlborough, and Waltham.

Town Manager Richard T. Reed of Bedford said he is disappointed to see IBM leave but is hopeful the town will fill the space quickly.

"Obviously, nobody likes to see vacancies occur in their communities, but it seems to be happening all around the region," Reed said. "There seems to be a lot of activity in Bedford with people moving in, so I'm hoping it's only a temporary setback."

Reed said two companies recently announced plans to move to Bedford. They are iRobot Corp. in Burlington and Anika Therapeutics Inc. in Woburn.

Bob McDonald, vice president of support for IBM's Lotus Software, said the company focused on Westford and Littleton because both sites offer room for growth.

"We decided it was ideal for our needs now and into the future," he said.

The company will consolidate sales and marketing, human resources, finance, and product management for its Massachusetts software units in Westford. The Littleton building will be turned into lab space where it will be equipped with state-of-the-art equipment, McDonald said.

Two-thirds of IBM's nearly 5,000 employees in the state focus on the software part of IBM's business. IBM predicts that its software unit will represent 50 percent of IBM's overall profit by 2010.

Currently, IBM employees are spread across eight sites throughout Massachusetts. Once the transition to a new campus is complete, IBM's Massachusetts presence will consist of four sites in Cambridge, Waltham, and the new Littleton/Westford software campus.

IBM has submitted an application to the Littleton Planning Board to make site changes, including more parking. Work is expected to be done over the next year.

McDonald said IBM is looking forward to becoming a big part of the Littleton community as a corporate partner and by fueling the economy. IBM Massachusetts employees in the last two years donated more than $1.5 million in cash and technology equipment and contributed more than 43,000 volunteer hours to schools and local organizations.

"We expect our employees will avail themselves of the services and businesses in town, and we hope other businesses follow suit," McDonald said. "We're excited about the prospect of what we can do in the area. We intend to be a good corporate citizen and a good neighbor."

Eldridge said a high-tech company is a perfect fit for the community because it brings benefits to the town without putting a strain on town services such as schools.

Eldridge said IBM's move to Littleton will have an immediate impact by generating more tax, water, and light revenue for the town. In the long term, Eldridge said, he hopes IBM helps revitalize the town common by creating more foot traffic and drawing in other businesses eager to tap into the potential new customers.

From a tax standpoint, Littleton is set to gain a significant amount of revenue, Eldridge said. The building's assessed value has dropped over the past few years because it has been vacant. That should start to rise again once IBM moves in, Eldridge said. Also, if the company adds to the property, the town will receive additional revenue, he said.

Littleton operates its own water and light department, which means the town will start generating more revenue once IBM moves in, Eldridge said.

"Another big benefit is the foot traffic in the common area," he said. "It's our belief it will add economic development to the businesses there and the businesses we hope will come in as a result of IBM coming there. If you're looking to put in a restaurant or a coffee shop, there will be plenty of customers."

Eldridge said IBM's move is the first phase of redevelopment in the common area. The second part will take more work on the part of the town, he said, as the area lacks sewers and pedestrian-friendly walkways that would encourage development.

Eldridge said he would like to bring in a consultant to help the town develop a plan of attack.

"We do have a lot of work to do on the infrastructure on the common," he said. "That will be the next big step."

Jennifer Fenn Lefferts can be reached at jflefferts@yahoo.com.