Article 12 on the 2023 Annual Town Meeting warrant would authorize the Town of Andover to enter into a Tax Increment Finance (TIF) agreement with Flagship Pioneering (Flagship), a large biotech firm, beginning in 2025 for a period not to exceed 20 years. Through this agreement, Flagship would occupy the former Philips Healthcare site, located at 3000 Minuteman Road, which has been vacant for several years.
Flagship intends to invest a minimum of $325M in the property and receive property tax relief in an amount equal to 70% of the incremental tax liability created through the new investment. The total tax relief benefit received through the agreement may not exceed $20,082,243, and the agreement will terminate once the benefit is reached.
Flagship will add a minimum of 600 net new jobs over 10 years, with average annual wages of at least $100,000 per year. Flagship will also be responsible for 100% of building permit fees, which are estimated to total $4M. Flagship will also invest a minimum of $78M in personal property, which will also be 100% taxable, generating at least $13.6M in new tax collections for the Town.
The Town has the right to decertify the project and revoke the agreement and clawback benefit provisions of the agreement if it does not meet 75% of project commitments (i.e., jobs, real property investments, and personal property investments).
As a result of the investment in this vacant property, the Town will realize a total incremental benefit of $29,804,564 and avoid devaluations of the existing property should it remain vacant.