Andover, MA Global high-performance electronics manufacturer Vicor Corp. is kicking off construction of a $35.5 million expansion of its manufacturing plant this fall that will help the company retain and create new jobs in town. The new project was spurred by a government tax incentives package secured by Business Development Strategies Inc. (BDS), one of the state’s leading government tax incentives consulting firms.
Key to Vicor’s decision to expand in the town it’s called home and headquarters for 38 years was a Tax Increment Financing (TIF) agreement that will bring the community new revenue from Vicor’s expanded facility. Vicor and its more than 700 locally-based employees spend an estimated $3 million annually with local businesses and the company is dedicated to providing support for education and other local programs.
BDS president and government incentives tax consultant Lynn Tokarczyk said, “It is clear that Andover officials and the community appreciate what a positive force Vicor has been in their town for decades as one of the largest employers and manufacturers. The BDS team has been honored to help Vicor commit to this onsite expansion and the continued growth of manufacturing jobs in Massachusetts.”
Currently, Vicor maintains an 84,767s/f corporate headquarters and 226,676 s/f manufacturing facility in town. To respond to growing demand for its products, Vicor plans to construct an 87,000 s/f, two-story expansion of its manufacturing facility. The expansion is expected to create 40 new jobs in coming years.
Vicor expects to break ground this autumn on early construction activities, including creation of a new parking area for the expanded manufacturing facility, with major foundation and structural work starting next spring.
“The BDS team played a critical role in guiding Vicor through the incentives process and successfully delivered valuable financial benefits,” said Mike McNamara, Vicor’s vice president and general manager, operations.
“We were pleased with the town’s positive response to our project and their willingness to partner with us.”
“The Town of Andover realizes that Vicor is a manufacturing leader and an integral part of our community”, said Andrew Flanagan, Andover Town Manager. “We recognized that a mutually beneficial TIF Agreement would ensure Vicor would continue to grow and invest in Andover rather than in another part of the U.S. or abroad. The agreement with Vicor is an example of the extraordinary value that comes from partnering with the business and manufacturing community.”
BDS has negotiated more than 100 Massachusetts TIF deals that have saved businesses more than $100 million while creating and retaining more than 30,000 jobs in the Commonwealth. That record earned Tokarczyk the title “Top Job Creator in Massachusetts” last December from Associated Industries of Massachusetts, the state’s largest business association.