MassDevelopment.com: Press Room: City of Springfield, MassDevelopment Complete MIP II Land Sale to PFG, Expedited Permitting Process Smooths the Way

City of Springfield, MassDevelopment Complete MIP II Land Sale to PFG, Expedited Permitting Process Smooths the Way
October 11, 2006

Contacts:
Adam Bickelman, MassDevelopment, 617-330-2086
David Panagore, City of Springfield, 413-787-6565
Cheryl Moore, Performance Food Group, 804-484-7700

The City of Springfield and its consultant MassDevelopment, along with the Springfield Redevelopment Authority (SRA), have finalized the sale of 32 acres of land at Memorial Industrial Park II to Performance Food Group Company. The sale completes an expedited permitting process that included full design review and coordination of all Springfield city departments. Officials credit the city's ability to implement a fast-track permitting process as a determining factor in Performance Food Group's decision to relocate and grow in Springfield. The company signed a Land Disposition Agreement for the property in May, and will begin site work this month for its expanded facility that will eventually employ 500 workers, approximately half of which the company will hire during the next six years. A formal groundbreaking is anticipated in late-October, and the facility is scheduled to open in fall 2007.

"With the help of MassDevelopment, we were able to implement a fast-track permitting procedure by creating a high-level permitting team within the city that coordinated project review and turned around plan submittals in days rather than weeks," said David Panagore, Springfield's chief development officer. "Thanks also to the Finance Control Board for expeditiously approving the final land sale. With this transaction, Springfield proved that it can respond to businesses quickly and work with them to get their new or expanded facilities up and running without delay."

Springfield's program is based on a shared understanding that the city is on a path to economic recovery, and that the only way to support business development efforts is to work as a team. The city's recently appointed chief development officer, David Panagore, serves as a single point of contact for businesses seeking to locate or expand in Springfield, and also as a conduit for information-sharing among the city's permitting authorities.

"Projects like this create quality entry-level jobs for Springfield residents, and I'd like to congratulate and thank Performance Food Group for its commitment to our City's future," said Mayor Charles V. Ryan. "This new facility will provide a firm foundation for the city's resurgence as an economic magnate for western Massachusetts."

In February 2006, the Springfield Finance Control Board - in partnership with the Mayor's office and the Springfield Redevelopment Authority - hired MassDevelopment to oversee the development of Memorial Industrial Park II. In May, the partnership announced Performance Food Group would be the office park's first tenant. City officials are currently marketing 38 acres of additional developable land at the industrial park to a variety of businesses, and interested parties should contact Springfield's Planning & Development office.

"Time is money for companies like Performance Food Group," said Robert L. Culver, MassDevelopment president/CEO. "By expediting Springfield's permitting and approval process, the City and MassDevelopment did exactly what business leaders and developers have been urging the state to do for some time - adopt policies that facilitate firms' easy expansions and relocations."

MassDevelopment, the state's finance and development authority, works with businesses, financial institutions and local officials to stimulate economic growth across the Commonwealth. Since fiscal year 2004, MassDevelopment financed or managed 586 projects statewide representing an investment of more than $4 billion in the Massachusetts economy. These projects are supporting the creation of 5,537 housing units and more than 23,500 jobs.

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. PFG's project will replace its current facility which opened in 1985. The firm's project is the largest industrial investment in the City of Springfield since 1993.