Now that Town Meeting has authorized a tax increment financing plan, the firm that benefits can plan its move into more than 300,000 square feet of empty office space on a Middlesex Turnpike campus.
But it isn’t going to happen overnight.
STR (Systems Technology Research) of Woburn, which develops innovative security technology for federal agencies, plans to relocate its corporate headquarters and laboratories from Woburn to 174-176 Middlesex Turnpike.
The firm sought tax increment financing (TIF) as a mechanism that defers additional real estate in exchange for job creation or retention and plant improvement. The company says it plans to invest about $78 million in renovation and construction costs over the next four years and create 170 full- and part-time jobs.
Bedford Town Manager Matt Hanson said this week that lawyers from the Massachusetts Economic Assistance Coordinating Council are reviewing the draft TIF agreement. The commonwealth’s Economic Development Incentive Program oversees a TIF.
“The actual buildout of the offices and labs is expected to take approximately three years with some staff moving in after certain phases of the construction are complete,” Hanson said. “We are looking at 2027 for the final transition of the remaining staff from Woburn if all goes to plan.”
STR is still in negotiations with the landlord and plans to sign a lease this summer, Hanson added.
“We’re grateful for Bedford’s approval of the tax incentives and appreciate their support. STR is pleased to reach this positive milestone,” said Daniel McCarthy, senior vice president for business operations.
Under the 10-year proposal, the town would continue to receive real estate tax payments for the existing building and grounds. The discount is applied to improvements as well as to some personal property.
According to projections included in the Special Town Meeting warrant, the company would save $4,274,181 over 10 years while the town would receive $2,559,193 in additional real estate taxes. The savings in personal property taxes would be $64,200 with the town receiving $373,800. The company’s estimated total tax payment, including the base, is $20,225,333. The buildings have an assessed valuation of more than $64 million.
After explanation of these details and a few questions, Special Town Meeting on June 11 approved the plan with almost no opposition.
One of the speakers in support of the plan was Chet Harding, executive director of the Bedford Chamber of Commerce. He pointed out STR’s history of commitment to its host communities in areas ranging from internships to clothing drives to STEM conferences.
“Our economic people have told us the buildings would likely remain vacant for years due to current market and the size of the building,” Select Board Chair Shawn Hanegan told Town Meeting. The facilities are in the Bedford Woods office park, once occupied by RSA, a cybersecurity company.
STR, founded in 2010 with 10 people, now employs about 500 in Woburn and another 300 at a few smaller facilities in other parts of the country. The current location at West Cummings Park cannot expand. STR wants to add mostly software engineers, researchers, and other information technology specialists.
Hanson has noted that the firm would “keep our commercial pool diversified.” There has been a recent trend to convert office space to biomedical.
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