Physik Instrumente awaits City Council TIF agreement

162

Physik Instrumente awaits City Council TIF agreement
Physik Instrumente plans to move to this building on Lizotte Drive, should the city approve a TIF agreement. (Photo/Maureen Sullivan)

MARLBOROUGH – Physik Instrumente is poised to move from Auburn to Marlborough, pending an approval of the Tax Increment Financing (TIF) agreement by the City Council.

During its Nov. 21 meeting, the council voted to move the request to the Finance Committee.

Should the TIF be approved, Physik Instrumente, a global manufacturer and supplier of precision positioning technology serving industrial automation, microscopy and life sciences, semiconductor, photonics and large-scale scientific projects, will move its American headquarters to 130 Lizotte Drive, just off Route 495.

According to Mayor Arthur Vigeant, “The company will be investing approximately $4.9 million in combined soft, real property and personal property costs at the project area which includes an existing 100,000-square-foot building that has been vacant for close to three years. 

“In anticipation of the receipt of TIF benefits, PI will develop the site into a corporate headquarters and plan to relocate 64 permanent full-time jobs from their Auburn and Hopkinton sites and create an additional 40 permanent, full-time positions over the 10-year span of the TIF agreement that will be open to qualified Marlborough residents,” said Vigeant.

He added that the project would be less intrusive to traffic compared to an apartment complex that was previously proposed.

In its application for the TIF to the state’s Economic Assistance Coordinating Council, Physik Instrumente  said the incentive would help defray unexpected costs of upgrades and improvements to the facility.

This includes $450,000 for a new freight elevator, $1.75 million for interior renovations, $750,000 for construction and $125,000 to strip and seal the parking lot.

As part of the proposed TIF, the new facility would receive a 100% real property exemption in 2024 and 2025. The exemption would go to 90% in 2026, 85% in 2027, 75% in 2028, and so on until the exemption bottoms out at 25% in 2033.

For its part, Physik Instrumente will provide regular reports to the city on job creation and tax obligations, including regarding excise, water and sewer and property.

Physik Instrumente anticipates moving into its new facility by the middle of 2023.

RELATED CONTENT

Shuttle service gets grant from state

Marlborough receives state grant for Cedar Hill Street reconstruction

Urban Affairs approves plans for Chipotle in Marlborough