Property Tax incentive approved for Westfield distribution facility

Westfield City Hall

8.22.13 | WESTFIELD | Westfield City Hall

(Manon Mirabelli)

WESTFIELD - The City Council has approved a tax increment financing package that will provide a five-year tax savings for Boise Cascade which is planning a considerable expansion of its building materials distribution facility off Union Street.

Boise Cascade has maintained a facility here on leased property off Union Street and Fowler Street Extension since 1999. The company, and its landlord Ronald Schortmann have proposed investing $6 million to construct a new storage facility and another $600,000 in equipment. The result will be an additional 20-year lease by Boise cascade and the addition of 19 new employees at the site. The company currently employs 69 full-time workers.

Several City Councilors said the tax proposal represents a significant benefit to Westfield because of the continued location and operation of Boise Cascade along with the investment by the property owner.

But, Council Cindy Harris said she can support tax packages for companies that enjoy annual gross sales of more than $1 billion.

Also, Councilor David A. Flaherty argued that the city cannot "afford" such a tax break. "We need all the revenue we can collect," he said.

However, Ward 1 Councilor Christopher Keefe said the incentive will actually cost the city "nothing since we will get more property taxes in the long run," referring to the addition 20-year lease proposed in the package.

Ward 2 Councilor Ralph Figy callled the package a "win for Westfield because we have a business that is investment locally."

The tax plan will give Boise Cascade a five year tax exemption that ranges from 90 percent for the first year to 10 percent for the fifth and final year.

Currently, the assessed value of the Boise Cascade facility is $414,400 with a annual property tax bill of $14,376. Following the expansion and investment the property will have an estimated property value of just over $3 million.

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