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Norton, state officials to plot GM strategy



The GM parts distribution center in Norton. (Staff file photo by Martin Gavin)




Tax break accord at issue in light of closure plans
NORTON - Town Manager James Purcell says he plans to meet with state revenue officials this week regarding General Motors' tax breaks for its Norton parts distribution center.

That discussion is expected to influence Norton's response to GM's plans to close the Norton Commerce Center facility in August 2010.

Purcell said decertifying the 20-year tax increment financing deal Norton voters gave GM in August 2004 requires votes by selectmen and the state.

The local tax break qualified GM for a state tax credit exemption that the automaker received, Purcell said.

"What we need to know is what are the state's interests, what does the state want to do?" he said.
Purcell said Norton should "not just stand by and let events carry us. We've got to be players here."

During the fiscal year ending June 30, 2008, GM did not comply with one condition of Norton's tax agreement: having 140 employees at the plant, Purcell said. About 80 people work there now.

Purcell said he would have "a certain tolerance" for that sticking point, given the economic crisis.

But now, he said, "there are no prospects of them ever coming into compliance."

If GM's tax breaks were decertified, the earliest the town could begin taxing the Commerce Way site at full value is the fiscal year starting July 1, 2010, Purcell said.

Vice Chairman Robert Kimball Jr. suggested selectmen proceed "cautiously, and make sure we know what we're dealing with."

"What I don't want to do is jump to conclusions," he said, adding he wanted to see if other options existed.

Selectwoman Mary Steele said the town wants to work with companies, but protecting Norton's interests should be foremost.

"They walk out, and we're stuck with it," Steele said.

MICHAEL GELBWASSER can be reached at 508-236-0439 or at mgelbwasser@thesunchronicle.com.


 


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View Comments » 5 comment(s) « Hide Comments

Atticus wrote on Jun 8, 2009 10:42 PM:

" "The harpies of the shore shall pluck the eagle of the sea" "

pjinaries wrote on Jun 8, 2009 2:22 PM:

" Since another company owns the building now and there is no agreement for tax breaks with them. They should be taxed to the hilt like the rest of us "

steves wrote on Jun 8, 2009 11:40 AM:

" Maybe this building could be used for the overflow of all the companies trying to get into the IBP in Attleboro. "

harry hindsight wrote on Jun 8, 2009 7:48 AM:

" I think we just found the new home of the Attleboro DPW yard. "

realist wrote on Jun 8, 2009 7:41 AM:

" It's bankruptcy folks. All bets are off. "