Moderna To Expand Norwood Campus

NORWOOD, MA - Moderna, one of the three biotech companies to produce a COVID-19 vaccine, wants to expand its Norwood campus through a tax increment financing, or TIF, agreement.

The Norwood Board of Selectmen embraced the idea and fast-tracked it for consideration by the Economic Development Committee Thursday night. If an agreement is approved, Moderna can go back to the Board of Selectmen for its approval of the TIF agreement. Once approved, the proposal can be presented at the Fall Town Meeting in November. It must then get backed by Moderna's board of directors and then get state approval.

Lynn Tokarczyk, Moderna's tax incentive consultant, gave a presentation on the plans and request for the tax incentives. She thanked the board for its support of the campus and first expansion in 2019, both of which received TIF agreements from the town.

"I know Moderna has enjoyed being located in Norwood since 2018," she said, adding that she met with several town officials two weeks previously to discuss the company's intentions. "Since then, Moderna has established very strong relationships with local officials, educational leaders and community partners."

Scott Nickerson, senior vice president of manufacturing for the United States as well as the Norwood site, said the company recently celebrated its 10th anniversary. It has been a pioneer in the biotech industry, specializing in the creation of vaccines and therapeutics that use messenger RNA, or mRNA. While most known internationally for the production of the COVID-19 vaccine, it also has worked on treatments for immuno oncology, autoimmune and rare diseases.

Moderna currently leases two Norwood buildings for manufacturing and lab space on 430,000 square feet. The property where it would like to expand is at 1 Investors Way, adjacent to its site.

"The pandemic threw us a little bit of a curveball," he explained. "Throughout that pandemic preparedness, we've quickly turned that MTC South facility into a commercial production facility to support COVID vaccine production."

The proposed site of an estimated 242,198 square feet will be renovated to create office, design and lab space. Construction of about 200,00 square feet is neing proposed for clinical production space. The renovation project is expected to cost around $100 million between construction costs and property acquisition, while the new site will cost about $30o million in land and construction costs.

Since Moderna came to Norwood, the company has created 1,000 full-time jobs, according to Nickerson. The expansion should bring another 300 full-time permanent jobs, including engineers, scientists and information technology professionals.

The company hopes to bring in more revenue to the town. So far, the company has spent $1.5 million in Norwood at retail estabilshments and restaurants. It is also a sponsor of next year's Norwood 150 year-long event.

Tokarczyk added that the expansion would generate additional town revenue through real estate, meals and hotel taxes as well as water and sewer, electric and permitting fees. The TIF would provide tax incentives as part of the state's Economic Development Incentive Program, or EDIP, to help communities attract and retain businesses.

"Essentially, the town doesn't lose a dime on the existing taxes," she explained. The TIF agreement can range between five and 20 years and include a tax incentive of anywhere between 1 and 100 percent and will be negotiated between the town and Moderna. This will help offset the costs of the construction.

Tokarczyk added that the 2019 TIF has yet to be implemented for the Moderna site at 200 Upland Woods Road, which is in the final phase of completion. In that agreement, Moderna projected to create 100 jobs at that site and already has exceeded that by 143, with more jobs relocated there.

Selectwoman Helen Abdallah Donahue thanked Moderna for its investment. She asked if any site activities could cause danger to the public to alleviate any public concerns. Nickerson explained that the facility's activities are government regulated.

"This is the type of thing that we shoudld do," she added. "We should help you. You're gong to give us more jobs and more taxes, and you're going to buy water and electricity. And you're making something that's going to protect us and save us healthwise."

"You're one of the reasons why Norwood is unique," added Selectman David Hajjar. "We're glad to have you here, and we're glad to work with you as a partrner."

The board voted to approve referring the proposal to the Economic Development Committee in a 5-0 vote. The EDC is considering the agreement tonight.

Selectman Matt Lane called it "the gold standard for TIF agreements."

Chairman Tom Maloney talked about the response of both Moderna and the town to fighting the pandemic.

"Leaders respond to crises," he said. "Moderna responded to the crisis, and to whatever extent the town was helpful in that venture, we have been so and want to continue to be so.

"We're doing the best that we can for the sake of the whole world really," he added.

The Board of Selectmen will consider recommending the proposal to Town Meeting on September 14. At that point, the date for the Fall Town Meeting can be scheduled.