Granite State Business ParkProject of the Year 2012
TIF District Case StudySeacoast Leadership Economic Development Day
May 1, 2013
Business Park Development 1989
Howard Katz, Developer– Phase 1 – 97 Ac– Phase 2 – 55 Ac– No Access to Phase 2
• Off to a Great Start!– Prime Tanning 1994– Salmon Falls Precision
1994– Techniweave 1999– Frisbie Hospital Secure
Storage 1999• Pease International
Tradeport 1992
Granite State Business Park 2010
• 62.2% of Phase 1 is developed
• 421,500 sq ft/ 5bldg• 425 Employees• Assessed for Taxes
$15,740,000• Payroll $19 MM
• Manufacturing Changes – Prime Tanning closed,
Rand-Whitney Corp. – Salmon Falls Precision
closed, Multi-Tenant– Techniweave acquired
by Albany International, bldg expansion in 2007
– Industrial Condos 2006 & 2009
• Still owned by same developer
Local Economic Challenges
• Great Recession• Thompson Center
Arms announces relocation to MA – INCENTIVES!
• Lack of available Capital, increased underwriting standards
• Lots of available real estate – CHEAP!
• Transition in required mfg skills
• Existing Companies with Unique Products– Advanced
Manufacturing– Composite Materials
• Developer willing to sell @ discount
• Expansion opportunities
TIF District & Program Plan
Financing & Development Program Plan:• Defines district, budget, use of funds, etc.• Adopt by public hearing. See RSA 162-K:6 and 162-
K:9.
Plans must “contain a complete statement as to the public facilities to be constructed, the open space to be created, the environmental controls to be applied, the proposed reuse of private property, and the proposed operations of the district after the capital improvements within the district have been completed.”
Important Features! Multiple TIF Districts are
allowed, HOWEVER:• Do not exceed 8% of
Assessed Value for community (or
• 16% for all combined with districts that have outstanding bonds);
OR,• 5% of total acreage! (or
10% of total acreage for bonds outstanding)
• Increment only accrues after date district is established!
• Values as of April 1.• Bonds – First payment
must be within 5 years.• Last payment no later
than 30 years.• Bonds are NOT to be
included when computing the municipality's net debt under RSA 33.
TIF ExamplePre-construction or “Original” value = $1,000,000Post Construction Value = $50,000,000• Increment or “Captured Value” = $49,000,000• Tax revenue on $1,000,000 “Original” value =• $25,000 ($25 / $1,000 A.V. Tax Rate)• Tax revenue on increment = $1,225,000• $25,000 to General Fund• $1,225,000 to TIF for debt service, operating
costs, maintenance & reserves. Increment Value is based on April 1st each year
Critical Deal Components• Internationally
Competitive RFPs• Two Partners• Incentives - on-site and
off-site +$9 M– “blighted” location– RSA 205 never used
• City investment in BIG infrastructure +$5 Million– Access to Site– Wetland mitigation
package– Utilities, relocation of PSNH
transmission lines• Critical Timing of
Construction
• Collaborative Partnerships– City Staff & Elected Officials– DRED, DES (EPA, Army
Corp)– Governor Lynch– NH Northcoast RR– PSNH, Unitil, FairPoint
• Labor availability & cost– Skills shortfall
• Training program for 20+ years worth of employees– Great Bay Community
College– Creteau Technology Center– Advanced programs
• $4 M NH, $19.9 M US
Safran/Albany LEAP Facility
This Albany & Safran project will create:– 689 FT jobs– $41MM Annual
Payroll– 911 indirect jobs– $27.5MM Payroll– Total Economic
Output (NH) $232,781,044
Tax Increment pledged for ~15 years to debt service of $9 MM
343,000 ft2 facility + 90,000 ft2 exp$100MM CAPEX55 acres under agreement for exp
Granite State Business Park 2013
• Expanded to 252 ac• Development District
– +$5M Infrastructure• Incentives
– TIF District – ERZ Tax Credits (NH)– R&D Tax Credit (NH)– FTZ (US)
• Anticipated Development– 50 Acres Under Agr.– Lot #1 Sold – Jan 2013– Lot #33, 34, 35 Avail. – 102 Add’l Acres under
Investigation
2003 Value $5,128,800 330,865 ft2
2012 Curr Value $14,712,207 +186.854% inc 423,666 ft2 Revenue $359,689
2030 Est. Value $34,740,000 +236.13% inc. 1,596,900 ft2 Revenue $892,223
“If it’s happening in NH, it’s happening in Rochester!”
- Economic Development- Planning, Zoning
- Code Enforcement- Building Safety
@RochesterEDCwww.thinkrochester.biz
Karen Pollard, CEcD, EDPDeputy City Manager/Director
Community Development Division