Economic Revitalization Zone Application Town of Salem Keewaydin Drive Extension April 2011
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1 Economic Revitalization Zone Application Town of Salem Keewaydin Drive Extension April Keewaydin New Hampshire Division of Economic Development Economic Revitalization Zone Tax Credits
2 (Res 2500) Town/Municipality Designation ~ FORM ERZ 1 Mail to: Div. of Economic Development Program Administrator P.O. Box 1856 Concord, NH Designation Code: ~ Office Use Only ~ General Instructions: In accordance with Res , a local governing body shall request Economic Revitalization Zone Tax Credit Designation for an eligible area or site prior to any taxpayer applying for tax credit project certification under this program. Follow the specific instructions given in each section and TYPE all information. Provide an original completed form with all required documentation. SECTION A INFORMATION Instructions: Provide the following information. Town/Municipality Name: Town of Salem Tel. #: Address: Town Hall, 33 Geremonty Drive, Salem New Hampshire, Contact Person: William Scott Title: Community Development Director Area/Site Name: Keewaydin Drive Extension Map 115, lot 7768, and Map 106, lot 7448 and Map 106, lot 7854 Signature of Contact Person Date: ~Office Use Only~ George Bald, Commissioner Date Dept. of Resources of Economic Development
3 Town/Municipality Designation ~ FORM ERZ 1 SECTION B DOCUMENTATION Filed Under the Following Criteria: Vacant land, or structures previously used for industrial, commercial, or retail purposes but currently not so used due to demolition, age, obsolescence, deterioration, relocation of the former occupants operations, or cessation of operation resulting from unfavorable economic conditions either generally or in a specific economic sector. The ERZ involves the development of vacant land at Map 115, lot 7768, and Map 106, lot This land will be available with the extension of Keewaydin Drive. The ERZ also includes redevelopment of industrial and office buildings adjacent to the Keewaydin extension at Map 106, lot The vacant parcels at Keewaydin extension and the underutilized buildings at the current end of Keewaydin form a specific target area which is planned for growth via an EDA grant application which will increase in capacity of roadways. The West End Infrastructure Project will create new roadways and improve existing roads to expand traffic capacity which will facilitate business creation and expansion in the industrial and office park area. The West End Industrial and office park area is adjacent to I 93 Exit 2 which is scheduled by the State of New Hampshire Department of Transportation (NHDOT) for reconstruction in These improvements are necessary to facilitate the growth and ensure positive traffic movement. The need for these improvements and growth is to address unemployment. Over 51% of the Salem workforce commutes to Massachusetts. Since early 2000 this has led to higher unemployment rates than New Hampshire and the region due to plant closures in Massachusetts. Salem also serves as an employment center for the Massachusetts bordering communities of Lawrence, Methuen and the more distant Lowell. The closure of the Salem NH Cisco plant in 2006 found approximately 60% of the workforce commuted from Massachusetts. This project is located in an area where the prior two complete years of unemployment exceed the national average by 2.1% for 2008 and 3.1% for 2009.(See TABLE 1) TABLE 1 Unemployment Rate Comparison Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Annual Lawrence Methuen Salem, MA NH NECTA Division National Difference Salem to National Lawrence Methuen Salem, MA NH NECTA Division National Difference Salem to National
4 Designation Outcome Designation of the zone as an ERZ Tax Credit Zone would likely result in the reduction of the rate of vacant or demolished structures or the rate of tax delinquency in the zone. The intended outcome of the designation is to provide incentives for job creation and the development of vacant land and newly developed square feet at adjacent properties. The site for the ERZ purpose will comprise the area known as Map 115, lot 7768, and Map 106, lot 7448, and underutilized structures at Map 106, lot The estimated job growth shown in TABLE 2 is based on current negotiations with users for the proposed development as shown in FIGURE 3 Salem Corporate Park Associates Keewaydin Drive Master Table 2 Job Growth Salem Corporate Park Associates Year 1 Year 3 Year 5 Year 10 Square Feet # Employees Employee per 1000 SF employee per? SF Employee By Category Professional Technical Clerical Service Keewaydin ERZ Map 106 Parcel 7854 Address Square Feet Status Possible Use 17 Keewaydin 21,420 Proposed Vacant site Office 19 Keewaydin 70,000 61,500 Vacant Office 21 Keewaydin 36,400 Proposed Vacant Site Office Plan, North and South lots. The FIGURE 3 master plan diagram outlines building configurations based on the development potential of the property and the building program as discussed with pending tenants. The property at Map 106, lot 7448 will include the buildings as listed in the adjacent table titled Keewaydin ERZ. The site contains larger existing buildings however they are not vacant at this time. The request is for the entire parcel in the event vacancies occur. For Assessors Map 115, lot 7768, and Map 106, lot 7448 shown in the FIGURE 3 master plan diagram the first building is anticipated to be 60,000 square feet with the employment outcome as outlined in year one in TABLE 2. Subsequent construction in the North and South lot will generate employment numbers as outlined in years three and five of TABLE 2. Year ten is anticipates further growth at additional lots and buildings not part of the site plan in FIGURE 3. The initial uses are planned to be medical offices, research, client services, and outpatient surgical. This will create additional jobs as this location will present an opportunity for the proposed user to consolidate multiple smaller facilities and expand operations. The medical use is in keeping with the surrounding area along Stiles Road. In addition, two centers of higher education, Southern New Hampshire University and Hesser College, offer degrees in medical technical support professions. The intent of the Keewaydin development is to solidify a medical centric approach to the West End block area.
5 Studies, such as the New Hampshire Employment Security, Labor Market Information Bureau (see Graph 2 from study) indicate that the growing population of elderly requires an increasing level of medical services. The location of these services at Exit 2 off I 93 creates opportunities for regional and super regional facilities at a time when growth is indicated. ERZ zones are established to stimulate economic redevelopment, expand the commercial and industrial base, create new jobs, reduce sprawl, and increase tax revenues within the state by encouraging economic revitalization in designated areas. Further the project will eventually achieve compliance with the criteria regarding expenditures as follows: Make expenditures to alter or repair a vacant facility equal to at least 20 percent of the market value of the facility.
6
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