Saint Gobain discusses tax incentive proposal with Northborough select board

The Northborough Select Board convened on July 15, 2025, to discuss a proposed Tax Increment Financing (TIF) agreement with Saint-Gobain, a major employer in the area. The TIF aims to facilitate a significant investment in the company’s Northborough facility, which is positioned as a research and development center for the Americas.

During the meeting, representatives from Saint-Gobain outlined a model that would allow the town to receive additional tax revenue before the TIF benefits kick in. This performance-based approach is designed to ensure that the community sees tangible financial returns as the project progresses. The proposal includes a phased tax abatement over four years, during which the town would receive an estimated $2.4 million in incremental tax revenue, ultimately leading to a full assessment of the property value.

Board members expressed concerns about the long-term implications of the TIF, particularly regarding potential revenue drops after the initial four-year period. The discussion highlighted the need for careful financial planning to mitigate any significant decreases in tax revenue as the TIF phases out.

Additionally, the board emphasized the importance of engaging the town's assessor's office to provide insights on the potential economic impact of the TIF. Members raised questions about the fairness of offering tax incentives to a large corporation while residents face rising property taxes. They stressed the need for transparency and accountability to ensure that the agreement benefits both the company and the community.

Saint-Gobain representatives defended the TIF as a necessary tool to remain competitive in attracting investment, noting that without local support, the company could consider other sites for its operations. They highlighted the broader economic benefits, including job creation and increased local spending, as key factors in the proposal.

As the board deliberates on the TIF agreement, they aim to balance the interests of the community with the need to support local businesses. The discussions will continue as they seek to finalize the details of the agreement, ensuring it aligns with the town's long-term economic goals.