BDS News

Leading Government Incentives Consulting Firm Opens Door to Economic Expansion in Gateway Muncipality

When the owners of L. Knife & Son, Inc.(L. Knife) begin the renovation of an abandoned, industrial building in Everett this year, the occasion will mark a milestone for the City as well as the fourth-generation, family-owned distributor of specialty and imported ales and lagers. L. Knife's purchase of the property for its new office, state-of-the-art training center, and temperature-controlled distribution center will signal the start of an economic resurgence that will bring more than 100 new and existing jobs, a thriving business, and a host of associated benefits to one of the state's 24 designated Gateway Muncipalities. The estimated $13.4 million project is the result of a public-private partnership that was strategized, planned and successfully executed by the state's leading government incentives consulting firm, Business Development Strategies, Inc. (BDS).

The story of L. Knife's relocation to Everett is a story of homegrown success. The 114-year-old Company had outgrown the space for its St. Killian Importing and Craft Beer Guild entities due to increased customer demand. The Company conducted an extensive real estate site search, and identified the 201 Beacham Street facility in Everett as a viable option. But purchasing and renovating the property required a large investment, and L. Knife needed to find a way to offset the project costs before moving forward with its fast track plan. So they reached out to BDS for assistance.

Founded in 2003 by Lynn Tokarczyk, a former Regional Director for the Massachusetts Office of Business Development (MOBD) and Senior Manager for Ernst & Young's New England Area State and Local Tax Incentives practice, BDS has helped growing businesses across the State secure valuable government incentives for real estate expansion and growth, many in Gateway cities like Everett.

"L. Knife had heard there were possible incentives for expanding in Everett, so they contacted BDS to see if we could work with the City and State to offset the project costs and make the project economically feasible," Tokarczyk explains.

The BDS team quickly set to work. Less than 30 days after the initial contact, BDS had identified and negotiated a $1.5 million, 4-year Special Tax Assessment (STA) from the City. An additional $260,000 Investment Tax Credit (ITC) was awarded from the State, and the entire package of incentives was approved at the September 2012 meeting of the State Economic Assistance Coordinating Council (EACC). Together, the package will help reduce the project's cost, and allow L. Knife to retain 82 permanent full-time jobs, create 20 new permanent, full-time jobs, and generate new revenue and economic opportunities for the City, region and State.

L Knife & Lynn

From the left: Alderman Michael Mangan, James Errickson, Director of Planning and Development, Tim Sheehan, L.Knife CEO, Lynn Tokarczyk, Michael Sheehan, Richard Pellagrini, Regional Director, MA Office of Business Development, Mayor Carlo DeMaria, Jr., Alderman Millie Cardello, and Alderman Michael Marchese.

Brian McGuire, Vice President of Operations for L. Knife & Son, praised BDS's speedy response to his Company's needs, saying the government incentives consulting firm exceeded his expectations.

"Lynn Tokarczyk and the BDS team took charge of the entire process," he explains. "Faced with a highly aggressive timeline, they kept our project on track and delivered outstanding results."

The pro-business leadership shown by Mayor Carlo DeMaria, Jr., led to unanimous support for the L. Knife project from the Everett City Council. "This Administration is always willing to partner with highly desirable companies like L. Knife & Son who seek to invest in the City and become part of the community for the long-term," said DeMaria.

That positive attitude also generated hope among City officials that other businesses will look to Everett for future growth opportunities. "Lynn Tokarczyk and the BDS team worked closely with Everett City officials to expedite the incentives project for L. Knife & Son," says Everett Executive Director, Department of Planning and Development, Jamie Errickson. "We are hopeful that other companies will recognize the benefits of doing business in Everett and want to follow suit."