Malden firm gets tax break
A $45 million investment by Palmer Manufacturing of Malden to expand its plant on Medford Street has won the company a mix of state and local tax breaks.
The city has entered into its first Tax Increment Financing agreement with Palmer, one of Malden's largest private employers. The 15-year agreement allows Palmer to pay reduced taxes on the value of the investment it makes to upgrade the plant. In return, the company has agreed to give Malden residents preference when hiring to fill 60 jobs it plans to add by 2010, officials said.
"It's a significant investment in job creation," Malden Mayor Richard C. Howard said in an interview. "We were happy to sit down with them, and find a way to help them grow here for the foreseeable future."
Palmer Manufacturing, founded in Malden in 1965, makes machine parts for companies, including
The company's expansion is driven by a recent contract with GE to provide parts for the GEnx Engine, its latest powerplant for commercial jetliners, according to the city. It qualified for a tax break from the city because it is located in a so-called economic target area, where the state allows tax breaks to encourage property redevelopment.
Most of Palmer's $45 million investment will go toward buying new plant equipment. Manufacturers do not pay taxes on plant equipment. The Malden tax break will be based on the amount of money Palmer spends on capital improvement. That could range from $500,000 to $1 million, according to the state Office of Business Development.
Depending on the amount of the investment, the tax break could range from a minimum of $46,000 to as much as $219,899 over the life of the agreement, according to the state.
Under the agreement, Palmer will pay no taxes on its investment for the first five years. Over the following decade, the tax break will decrease each year. After 15 years, Palmer will pay real estate taxes on the full property value. "That's typically how it works," said Sarah MacDonald, deputy chief of staff in the state Office of Business Development.
Companies that enter into tax financing plans also qualify for a 5 percent investment tax credit from the state. State law automatically grants manufacturing firms a 3 percent investment tax credit, whether they make a new investment or not. Palmer will receive an additional 2 percent for its investment, MacDonald said.
Bygones of Ireland leaves Salem spot
Bygones of Ireland has bid farewell to Salem.
The Irish furniture import shop closed its doors last month, relocating to Scarborough, Maine, where it expanded two years ago under the name Bygones of Europe.
"We did really well in Salem," owner Patricia Mullaney said by telephone from Maine last week. "But as a family-owned business, it was very hard to run two locations. We decided to combine them."
The shop, specializing in antique pine furniture, operated on Canal Street in Salem for nine years. The business received a low-cost loan from the city to renovate a run-down commercial building. Mullaney said the loan was paid long ago. The building now is for sale for $439,000, she said.
"It was an excellent location. It gets a lot of traffic, which for our business was good. We had customers from all over the North Shore," said Mullaney, who still lives in Salem.
In Maine, Bygones imports furniture from Holland, Hungry, and Romania. The Salem store made the change after most of Europe adopted the Euro as its currency. The Irish pound did not hold up well in the conversion, making imports from Mullaney's homeland too expensive.
"The dollar got so bad against the Euro in Ireland, we couldn't afford to import as much," Mullaney said, noting the shop still carries some Irish furniture. "The quality from Eastern Europe is excellent."
Bygones is also dabbling in custom-made American furniture. Old farmhouse tables, made from barn wood, are a top seller. To meet demand, the tables now are made in Western Massachusetts. "We still bring the odd one in from Ireland, but they're made right here. They're very popular," Mullaney said.
Newburyport inn gets to business
The Essex Street Inn in Newburyport has gone corporate.
A new conference center opened last month. And now the family business has hired Regal Limousine of North Hampton, N.H., to provide car service to business people staying at the inn.
"We're trying to button-down more companies to stay with us," said Lori Guertin, who owns the business with her husband.
"We think offering transportation will give us another advantage."
The Guertins bought the Essex Street Inn five years ago. In the last year, they purchased two neighboring boarding houses. They've added 22 rooms equipped for corporate customers, with the furnishings including desks, chairs, and wireless Internet access. The inn now has 37 rooms in downtown Newburyport.
Datebook
The Greater Newburyport Chamber of Commerce and Industry on Friday will hold a "Networking Eye Opener" at 8 a.m. at Full Moon Classic Charters, dockside in downtown Newburyport. To reserve a spot, call the chamber at 978-462-6680.
Kathy McCabe can be reached at kmccabe@globe.com. 