UPS facility in Londonderry could mean $500,000 in annual TIF revenues
LONDONDERRY — With construction on the new United Parcel Service distribution center expected to start on Pettengill Road in the coming months, town officials are already discussing the revenue possibilities in the yet-to-be built Tax Increment Financing (TIF) district.
During Monday night’s Town Council meeting, Town Manager Kevin Smith noted that the process remains in its early stages and no money hase been collected just yet.
Smith said the town’s collection of any tax revenues would be at least a year away, but once that happens the town could receive an estimated $570,000 in annual revenues from UPS. Those dollars would be placed in a TIF account, where they’d be used to further expand the road and surrounding infrastructure.
Planning Board Chairman John Farrell said the town’s tax assessments are conducted each April.
“Right now we’re moving on dirt over there and we’re still going through the whole planning board process,” Farrell said on Monday. “And because we’ve never had a TIF before this one, we’re in the discussion stages right now to determine what’s going on and how that whole area will be built out.”
Farrell added that “nobody is paying any money yet” but stressed that if the UPS building is standing by April 1, 2015, that would definitely change things for the better.
“We’re moving very slowly and carefully with this,” he said. “But a main goal is to place the least amount of burdens on taxpayers and be able to negotiate the best opportunities for the town.”
During the June 4 planning board meeting, project officials for the new UPS distribution center for Pratt & Whitney shared conceptual plan details. The plans include the construction of a new, 1,500 foot section of Pettengill Road.
Project engineer Robert Duval said the 600,000 square foot distribution facility would be used to supply Pratt & Whitney with inventory and warehousing services to accommodate manufacturing plans in several states. If all goes as planned, the distribution center would open by early next summer, Duval said.
As part of their agreement with the town, UPS has also agreed to extend water, electrical and gas lines towards Pettengill Road from nearby Industrial Drive, as well as construct new sewer lines.
Duval said the goal is to get planning board approval during the Aug. 6 meeting, which would allow project officials to take advantage of the late-summer, early fall construction season.