While many cities in the Boston area rely on their proximity to the city to ensure economic development, outlying towns have proven equally resilient. Despite the current economic downturn, Westfield, Massachusetts, continues to secure new business due to a combination of financial incentives and its desirable location. The city has utilized these local and statewide incentives to encourage investment, including the Economic Development Incentive Program, a tax incentive program designed to stimulate business and create jobs in Massachusetts.
This month, construction began on an estimated $25 million, 657,000-square-foot rapid deployment distribution center for The Home Depot. A tax incentive helped finalize plans for the new center. Westfield’s City Council and Mayor Michael R. Boulanger devised an incentive for the company that calls for a 50 percent cut in property taxes for the first 10 years of operation. The new distribution center is expected to create as many as 150 jobs.
The city has also shown a willingness to go beyond tax incentives to attract business. In March, Target Corporation purchased land for the construction of a 1 million-square-foot distribution center at an estimated cost of $100 million. Before the purchase was complete, the city council passed a $10 million bond package for road improvements in the area aimed at improving infrastructure along the Massachusetts Turnpike. As much as $4 million of the bond will be reimbursed by state funding. The distribution center is expected to bring about $730,000 to the city in annual property taxes and generate between 350 to 500 jobs.
In addition to the two distribution centers, the Pioneer Valley Energy Center, a 400-megawatt generation facility that will provide power for 430,000 homes, is currently in the permitting process. As Mayor Boulanger envisioned, the industrial growth of the city has coincided with other improvements. Westfield State College is looking into developing new housing, classrooms and performing arts facilities downtown to foster a new vibrancy in the city center.
The city’s net population growth since 2000 is up 1.3 percent, and with new jobs on the horizon and other improvements underway, Westfield is poised to grow in the future.
— Evan Calbi