5-year ‘tax stabilization’ contract approved for new Jones Center business

The Springfield Selectboard voted unanimously on Monday, Aug. 8, to approve a personal property tax stabilization contract for David Jaacks of West Windsor, owner of Konrad Prefab. The company makes displays and units for retail stores.

   

2016-08-10 / Front Page 5-year ‘tax stabilization’ contract approved for new Jones Center business The Konrad Prefab sign outside the Jones Center at 260 Clinton St. in Springfield. — TORY JONES BONENFANT The Konrad Prefab sign outside the Jones Center at 260 Clinton St. in Springfield. — TORY JONES BONENFANT SPRINGFIELD — A Springfield business that manufactures display units will receive a five-year tax break on $550,000 in new equipment and machinery in its facility in the Robert S. Jones Industrial Center. The Springfield Selectboard voted unanimously on Monday, Aug. 8, to approve a personal property tax stabilization contract for David Jaacks of West Windsor, owner of Konrad Prefab. The company has been in “limited operation” for a while in the Jones Center at 260 Clinton St., and makes displays and units for retail stores, Jaaks said on Monday. Bob Flint, executive director of Springfield Regional Development Corp., was at the meeting on Monday with Jaacks. Flint said the company is a “light manufacturing” business and hopes to hire 10-12 people in the near future. The five-year plan approved by the selectboard on Monday is a reduction of taxes based on the schedule that the selectboard agreed upon, according to Springfield Town Manager Tom Yennerell. In Springfield, this plan allows personal property tax payments to be reduced for the first five years for new businesses or existing businesses with new equipment. The selectboard agreed unanimously to allow Jaacks a tax stabilization contract for machinery and equipment in which he will contribute zero percent in personal property tax in the first year of the contract, dating back to July 1, 2016; zero percent the second year, 25 percent the third year, 35 percent the fourth year, and 50 percent the fifth year, returning to a regular tax payment schedule on the sixth year and beyond. This only applies to personal property taxes on the company’s machines and equipment, and not on real estate, Yennerell said. The company is a new start-up, and appears to have “a lot of potential,” said selectboard member George McNaughton. Selectboard member Walter Martone said the company has already been in operation in Rhode Island, and has shown that there “is a market” for its products. The board voted all in favor, with all members present, to approve the tax stabilization. At this time, the Jones Center already houses the M.E. Baker Co., J & L Metrology, Inc., and Precision Contract Manufacturing, along with Konrad Prefab. Flint said that because a few details and pieces of financing remain to be “put into place” for the company, he would have more information on business plans in the coming weeks.