2014-11-28 / Your City

City Council approves TIF plan for EasyPak

By David Dore

EasyPak will save roughly half a million dollars in property taxes over the next five years under a deal approved by the City Council earlier this month.

The tax deal coincides with a $7.5 million expansion that EasyPak is undertaking.

According to documents distributed at a Nov. 10 meeting, the company, which makes plastic packaging products, is looking to spend $2 million to expand its 24 Jytek Drive facility from 20,832 square feet to 49,432 square feet, along with $5.5 million on new machinery and molds.

Trade publication Plastics News reported that EasyPak has 70 employees. The company is looking to hire 15 more full-time workers over the next three years to keep up with demand.

Under the deal unanimously approved by the Board of Assessors and the City Council, EasyPak will save an estimated $67,607 in property taxes in fiscal 2016 through fiscal 2020 because of the expansion of its facility, and an estimated $449,025 in personal property taxes in those five years on equipment.

Starting in fiscal 2021, EasyPak will pay the full amount in both property and personal property taxes to the City of Leominster.

The company website states that EasyPak was founded 10 years ago by Hector Echaniz and Marco Barbier, who have a combined experience of more than 35 years in the packaging industry. It has 170 customers, 130 of which are outside Massachusetts. In addition to its headquarters and factory in Leominster, it operates a plant in Kalamazoo, Michigan.

EasyPak is also applying for the Massachusetts Office of Business Development’s Economic Development Incentive Program. The EDIP website states it is a “tax incentive program designed to foster job creation and stimulate business growth throughout the Commonwealth. Participating companies may receive state and local tax incentives in exchange for job creation, manufacturing job retention and private investment commitments.”

A meeting on EasyPak’s application is scheduled for Dec. 17.

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