Braintree Town Council Approves Integra Tax Financing Agreement

BRAINTREE, MA - A life sciences industry giant will be coming to Braintree, as the Braintree Town Council on Tuesday unanimously approved a request from Mayor Charlie Kokoros to enter into a tax increment financing agreement with Integra to construct a biotech facility at 4oo Wood Rd.

The site was the previous home of Haemonetics, a medical device and technology company that had a facility there for four decades. The property, now called Exchange 93, has been rehabilitated by Hilco Redevelopment Partners in the hope of attracting a life sciences company to the town.

"I wish to have you join in this historic vote which will allow us to begin the process of reinventing and redeveloping our business community here in Braintree," Kokoros said before the vote. "We have been working with life sciences, biotech and medical technology companies over the past two years."

The site has generated interest from several companies, he said, including Integra LifeSciences. Kokoros acknowledged that a priority of his has been to bring the life sciences industry since he took office more than two years ago. A committee was created with members from several town boards to facilitate the process to accommodate the zoning needs for this type of business.

Kokoros added that "a number of different companies have come through" to consider the site. Because Braintree has its own electricity and water supply, it makes the property more amenable to this industry.

"We know that we need to make changes," he said. "And these are the changes that will bring prosperity to our community and jobs to our community."

Integra Senior Vice President of Operations Kevin Breeden explained that Integra is a global medical technology company that is outgrowing its current facility in South Boston. Integra currently is headquartered in Princecton, New Jersey. He said it is the largest neurosurgical technology company in the world and also specializes in soft tissue repair.

There are roughly 125 employees currently at the South Boston facility that will be transferred to the new building, he added. There also will be 25 new full-time jobs created where first preference will be given to Braintree applicants. Local construction companies also will be given preference on the project.

Nicole Taub, the mayor's chief of staff, outlined the details of the TIF agreement. She noted that there were three meetings over the past three weeks leading up to the council meeting.

Taub explained that under a TIF agreement, the tenant continues to pay taxes on the base property. It receives a discount on the tax on the incremental growth for the term of the agreement because of the investments made on the property. The length of the agreement "mirrors the lease," she explained, so it would be for 15 years in this case.

"You're going to assume that the value of that property is going to grow year after year because of the investment that they made in the location," she said.

The property is just over 14 acres, and the building there now is about 153,000 square feet. The current value of the property is $13 million, according to Taub. Because the building has been vacant for two years, there were tax abatements granted.

The property will be assessed in July to determine its base taxable rate for the 15-year TIF. Following a certificate of occupancy, the TIF will go into effect. The owner will be assessed the taxes on the base value of the property plus 75 percent of the annual incremental growth over the course of the TIF. At the end of the term, Braintree will begin to receive the full tax revenue.

It was important to move forward at this time in order for Integra to target a fourth-quarter FY 2024 construction completion date. The property lease would be for 15 years with the opportunity for two five-year extensions.

There will be a $35 million contribution in construction, renovation and development costs, Taub said, along with an additional $16 million in additional furniture, fixtures and machinery.

"I think this is a very appropriate use of a TIF for a company to attract them to Braintree," said Charles Ryan, the council vice president." It makes perfect sense to me that this is the right thing to do."

He called it "the kind of smart growth that we need in this town."

Councilor Julia Flaherty, who serves on the ways and means committee, said that this was a good location for the project.

"This is a very competitive TIF," she explained, noting other communities that have similar agreements. "This is pretty favorable to us, so we did a good job in negotiating something that benefits everybody."

She said the type of business is also a good fit for the property.

"We could have Amazon there if we wanted," Flaherty said. "But nobody wants Amazon, and they wouldn't increase the value of the location that much."

She added that while the company had been cited by the Food and Drug Administration for violations in the past, "they were specific to the site they are located on at present."

"They are working with the FDA to resolve them," Flaherty continued, noting that it is common for the FDA to issue violations in an industry as tightly regulated as life sciences.

District 2 Councilor Joseph Reynolds said he believed the town's infrastructure would support this industry and the TIF "works ideally for both parties" in a highly competitive market.

Council President Meredith Boericke said the project "checks all the boxes" for attracting a high-level company with skilled employees.

District 4 Councilor Stephen O'Brien took the deal one step further.

"Next I would like to ask for you and your organization to seriously consider moving your corporate headquarters to Braintree after we successfully take care of this," he said. "You're the kind of folks that we've been looking for."

To watch the entire meeting, go to the BCAM YouTube channel.