Voters Give Cumberland Farms Tax Break

Cumberland Farms has agreed to invest more than $8.5 million in its Westborough facility under a 15-year tax break approved by voters Monday night.

Voters at Westborough's special town meeting approved the tax increment financing agreement, 238-19, in the Westborough High School auditorium.

Cumberland Farms plans to bring 79 jobs to Westborough, selectmen Chairman Ian Johnson said.

The firm also is building a 27,000-square-foot addition at its Westborough facility, at 165 Flanders Road, he said.

The deal will generate an estimated $642,000 in new taxes over 15 years, while saving Cumberland Farms an estimated $112,000 in new Westborough taxes related to the expansion, Johnson said.

The deal also allows Cumberland Farms to apply for additional state tax credits state estimated at $511,000, he said.

"It really is a proposal to generate expansion in this town" and bring new jobs, Johnson said.

Town Manager Jim Malloy said that "the town doesn't lose any taxes. It's just a gain in property taxes."

Some residents questioned Westborough offering the tax deal.

Dominic Capriole said this was the fourth tax increment financing agreement presented to Westborough voters.

He asked, "Do I detect a pattern here that requires Westborough," with a "comparatively high tax rate, to provide this incentive in order to retain and attract businesses?"

"Are we working from a disadvantage?" Capriole asked.

"I'm not seeing that other communities are becoming so dependent on this mechanism for attracting and retaining businesses."

Malloy said that "many communities are doing the exact same thing."

"A few years ago, when the town of Westborough was seeing a lot of companies leave, one of the things the economic development committee did was to seek to become an economic target area, so we could begin to offer these kinds of incentives and see businesses come back to the community. And we've been fairly successful," he said.

Westborough's disadvantage is it requires town meeting approval for such deals, Malloy said. Marlborough approves them through city council meetings, he said.

Resident Vinnie Borkowski asked if Westborough's tax rate was lower, "would Cumberland farms require" such a deal.

Cumberland Farms Director of Taxes John Martin said the decision was based on "a quantum of issues."

"It did weigh in. I can't say with any specificity whether this was the deciding issue or not," Martin said of the tax rate.

"We are making a significant investment in Westborough, and we're hoping the town would recognize that."

Economic Development Committee Chairman Lester Hensley said "the tax rate for businesses in Westborough is actually quite favorable to surrounding communities."

"Other communities are using this type of agreement much more aggressively," he said.