Council approves tax break to facilitate Chelsea soup co.’s relocation to Lynn

LYNN – The City Council unanimously approved a tax break for Kettle Cuisine, which it hopes will be a deal closer in the effort to lure the soup company to Lynn.”They are expanding and they’re interested in moving to Lynn,” said Ward 6 City Councilor Peter Capano. “There are probably 10 or 15 other communities competing to get them, and this would make it more enticing for them to come to Lynn.”The Tax Incremental Finance plan, or TIF, would give Kettle Cuisine founder Jerry Shafir a break on the roughly $10 million that Economic Development Industrial Corporation Board Executive Director James Cowdell said Shafir plans on investing in the move.The Chelsea company has been looking at moving its operation to the Clock Tower Building on the Lynnway. Capano said the company now has 100 employees but is looking to expand.According the proposal, Kettle Cuisine will be required to transfer 138 current jobs to the city and create an additional 110 permanent jobs within the first five years in the new location. The company will also agree to invest a minimum of $20 million for the renovation and outfitting of the 100,000 square-foot facility.The program is scheduled to last 20 years with a 100 percent tax break on the investment starting in 2014.The tax breaks drop each year by 5 percent ending in 2033 with a 5 percent tax break. Once the TIF expires, the company will be taxed on 100 percent of the value of the property with improvements, which is estimated in the proposal to be $13 million.A TIF does not give a tax break on the cost of the actual property; only the cost of the investment.Just last month the council approved a TIF for D’Amici’s Bakery owner Joseph Torretta, who plans to open a downtown commissary and cafe on Sutton Street in February.Ward 7 City Councilor Rick Ford, who also sits on the EDIC board, called the plan “very popular” with the board.EDIC voted unanimously last month to ask the council to consider approving the TIF, calling it an important move for the city.Ward 2 Councilor William Trahant said bringing Kettle Cuisine to town “would be a victory for Lynn.””I think we have a good shot,” Capano said. “Hopefully this will put us over the top.”Chris Stevens can be reached at [email protected].