News Articles

Abington reaches tax deal with Cape Cod Lumber

October 13, 2011

ABINGTON — Town officials and Cape Cod Lumber reached 11th-hour accord on a tax relief proposal that would support the company’s expansion plans and provide the town with additional tax revenues.

On Tuesday, the Abington Tax Incremental Finance Committee voted 3-2 in favor of the 10-year TIF proposal. Selectmen are expected to vote on a recommendation at Monday’s meeting. “It will begin to project an image of Abington being pro-business and reaching out,” said Town Manager John D’Agostino, a member of the committee.

Cape Cod Lumber owner and President Harvey Horvitz has proposed building new headquarters off Groveland Street as part of a $7 million business investment and expansion program.

Selectmen voted to establish a permanent TIF committee in late August to negotiate a tax relief program to support the corporate expansion.

Both sides wrangled with proposals and counterproposals. A mutual agreement had to be reached at Tuesday’s meeting in order to present it to selectmen, who would vote on a recommendation and place it on the warrant of a special town meeting to be held Oct. 24, said selectmen Chairman Christopher Aiello, who is also a TIF Committee member.

“The task now is to educate town meeting,” said Aiello, who voted for the TIF agreement.

Horvitz said a negative vote would have put the project in jeopardy.

Tax Increment Financing is a negotiated local property tax exemption up to 20 years based on the increased value of the project property due to new construction or other significant improvements, said Lynn Tokarczyk, president of Business Development Strategies Inc., representing Cape Cod Lumber.

The 10-year TIF proposal would save the company an estimated $495,542 over the life of the exemption while the town would collect an estimated $506,573, or roughly $50,000 a year, in additional tax revenues.

The Groveland Street site is comprised of 60 acres on which to build the proposed 132,000-square-foot headquarters. Once built, the company’s Mansfield warehouse would close and the employees consolidated into the new Abington facility.

The company will retain 92 permanent full-time employees and create five additional full-time jobs with the project. The existing building on Route 18 would remain in operation as a showroom and design center.

Horvitz said that tax incentives would make the business expansion project “financially feasible” and help his company remain competitive.

Cape Cod Lumber was founded in 1958 in Abington as part of a salvage company that grew into a premier local distributor of building products and materials, doors and windows. The company also provides services to building contractors, architects and homeowners.

The current building in Abington has 80,000 square feet for offices, a distribution area, retail outlet and design center. The Mansfield office has 18 full-time employees.