Bay State Pallet Co. Receives Haverhill City Council Backing for $4.5 Million Rehab and Expansion

Bay State Pallet Co. plans to rehabilitate an abandoned building at 293 Neck Road, Haverhill. (WHAV News photograph.)

The Haverhill City Council gave its approval last night to a tax relief plan that allows a Ward Hill business to expand operations and create more new jobs.

Bay State Pallet Co. is looking to spend $4.5 million to rehabilitate an abandoned 15,000-square foot building that formerly housed Kerrigan Paper Products at 293 Neck Road. The plan, which comes with state tax credits, are contingent on the company negotiating a tax increment financing plan with the city

Haverhill Economic and Planning Development Director William Pillsbury Jr. described how the program works.

“(It’s a) partnership between the state and the community and the business, where they’re able to receive some additional tax credits to help them to get financing for their building, expansion plans and job creation plans while the city partners with a reduction in the taxes over five years and the business agrees to create the jobs over the period of the expansion,” he said.

Pillsbury explained the plan would provide the company with a total local property tax credit of $31,053 over five years beginning with a $10,000 reduction the first year and ratcheting down to $2,000 by the last year. He said, in the long run, this provides a very good return on investment for the city.

Councilors agreed with councilors John A. Michitson and Melinda E. Barrett both noting the expansion takes advantage of the newly created, higher density allowed under zoning for industrial areas.

Members approved the motion to allow Mayor James J. Fiorentini to execute the agreement by a vote of 7-0 with Councilor Joseph J. Bevilacqua abstaining because he sits on the state board that grants state tax relief and Councilor Michael S. McGonagle absent.

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