MassDevelopment.com: Press Room: City of Springfield, MassDevelopment Announce First Tenant for Memorial Industrial Park II

City of Springfield, MassDevelopment Announce First Tenant for Memorial Industrial Park II
Redevelopment Authority, Finance Control Board to Vote on Deal Wednesday Night, Thursday
May 23, 2006

Contacts:
Michelle Webber, City of Springfield, 413-787-6100
Cathy Mossi, Springfield Finance Control Board, 413-787-6100
Cheryl Noore, Performance Food Group, 804-484-6273
Adam Bickelman, MassDevelopment, 617-330-2086

Mayor Charles V. Ryan ended the mystery surrounding the identity of the first investor at Memorial Industrial Park II. The City of Springfield and its consultant MassDevelopment today announced that Performance Food Group will purchase a 35-acre parcel of land at Memorial Industrial Park II. The Springfield Redevelopment Authority and Finance Control Board will vote on whether to approve the land sale at meetings Wednesday night and Thursday respectively. Performance Food Group (PFG) is a Fortune 500 company headquartered in Richmond, VA. The company currently operates a facility at 340 Taylor Street. PFG plans to build a new 211,000-square-foot distribution facility on the site - which is adjacent to Roosevelt Avenue - to store products it ships to New England markets. The new facility will replace PFG-Springfield's current location which opened in 1985.

Performance Food Group will break ground for its new distribution center later this year. When finished, PFG's facility will comprise 34 acres of the 85-acre former Smith & Wesson site. The expansion will result in the retention of 270 jobs and is expected to create more than 230 new jobs during the next six years.

"This is a great day for Springfield," said Mayor Ryan. "I believe the city is turning a corner. Performance Food Group's investment is great news for Springfield as well as middle-income families. The company already provides hundreds of good paying jobs in the city; and thanks to the creativity of the collaborators on this project, new jobs are on the horizon."

Performance Food Group operates 30 distribution companies in various parts of the United States. The company distributes national and proprietary brand food and food related products, including baked goods, seafood, choice USDA meats, condiments and cleaning supplies. PFG employs more than 7,300 associates nationwide. The firm's project is the largest industrial investment in Springfield since 1993.

"We are excited to be able to grow here in our hometown of Springfield," said Sean Griffin, president, PFG-Springfield. "I can't think of a better site for our expanded distribution center. We felt strongly about maintaining our presence in the city that helped grow our business, and we're looking forward to working with the Regional Employment Board to further meet the community's needs."

In February, the Springfield Finance Control Board - in partnership with the Mayor's office and the Springfield Redevelopment Authority - hired MassDevelopment, the state's finance and development agency, to oversee the development of Memorial Industrial Park II. MassDevelopment then provided a $900,000 brownfields loan to fund remediation work performed at the site. As the City's consultant, MassDevelopment is responsible for planning, infrastructure work, grant writing, marketing and development efforts for the development.

According to David Panagore, Springfield's chief development officer, "Our approach to creating jobs by offering tax incentives linked to job creation performance is critical to the city's ongoing and future economic development efforts. Springfield offers a wealth of inherent resources and amenities like a diverse housing stock and lower costs per-square-foot, and these tax incentives are another way for Springfield to say 'we're open for business, and willing to work with you to make your relocation or expansion as easy and cost-effective as possible. And if you invest in Springfield, Springfield will invest in you."

In order to facilitate its move to a larger location, the city entered into a Tax Increment Financing (TIF) agreement with Performance Food Group. Tax Increment Financing is a development tool designed to help finance eligible improvements to property located in designated redevelopment areas (TIF districts) by providing a property tax exemption based on the increased value of the project property from new construction or significant site improvements.

"Performance Food Group, recently voted one of the nation's most admired companies by Fortune Magazine, is a great corporate neighbor; and I tip my hat to their team for recognizing the benefits of doing business in Massachusetts, as well as for signing on to expand in Springfield," said Robert L. Culver, MassDevelopment president/CEO. "This demonstrates how the state, city and private sector can partner to reach a common goal - in this case, supporting economic growth at Memorial Industrial Park II."

Performance Food Group markets and distributes more than 66,000 national and private label food and food related products to approximately 44,000 restaurants, hotels, cafeterias, schools, healthcare facilities and other institutions. For more information on Performance Food Group, visit www.pfgc.com.

MassDevelopment works with businesses, financial institutions and local officials to stimulate economic growth across the Commonwealth. In fiscal year 2005, MassDevelopment financed or managed 158 projects statewide representing an investment of nearly $1.9 billion in the Massachusetts economy. These projects are supporting the creation of 2,769 housing units and more than 9,800 jobs: 4,702 permanent and 5,100 in construction.