Osgood Landing Redevelopment - Amazon

How Will North Andover Benefit?

Click here Community Partnership Agreement

The Tax Increment Financing Agreement enabled the Amazon project to move forward, which as a result, will mean the following primary benefits for North Andover:

1.) Net New Taxes

The Town will receive a projected $18,200,131 in NET new taxes over the 10 year term of the TIF Agreement.

In the ten years following the conclusion of the TIF term, the Town will receive a projected $45,500,328, making for a total of approximately $63.7 million in projected net new property taxes over a period of 20 years (Amazon will enter into a 20 year lease on the property).

Personal property (furniture, fixtures, equipment, etc.) is estimated to generate an additional $21,309,500 over the 20 year period.

TOTAL: $85 million projected in new revenue over 20 years

These figures do not include the base amount of taxes that the Town currently receives from the property (approximately $29,000 per year), nor does it include fees that the company will pay for permitting of construction.

2.) Jobs

This project will result in the creation of a minimum of 1,500 full-time equivalent jobs (not including temporary construction jobs as the facility is built). Amazon has agreed to work with the Merrimack Valley Workforce Board to hire local/regional workers and to host hiring events aimed at veterans.

3.) Community Benefits

Amazon and Hillwood will also make a significant financial investment in North Andover, broken out as follows:

• Approximately $400,000,000 in total construction costs (including soft costs)

• Approximately $350,000,000 in costs to lease the property over a 20 year period

• $2,300,0000 contribution to sewer extension project along Rt. 125, to be paid prior to Town starting work on this project

  • This represents 1/3 of the total project cost

• $90,000 for a post-project traffic calming study, to be done 90 days prior to full occupancy

• $3,000,000 in funding for STEM programming for North Andover Public Schools; $300,000 paid annually over 10 years

• $100,000 for technology upgrades for the Stevens Memorial Library and Youth and Recreation Services, to be paid upon receiving occupancy permit

• $700,000 to establish a tree planting program; $175,000 annual payment for four (4) years

• $100,000 for procurement of furniture and technology for the new North Andover Senior Community Center

• $100,000 for procurement of traffic mitigation equipment

• Approximately $263,700 for the Fire Department to procure necessary equipment; $100,000 to be paid at issuance of a building permit and the balance to be paid prior to issuance of a certificate of occupancy

4.) Other Residual Benefits

The extension of sewer service along Route 125 as described in the third bullet above in particular, will most likely increase the value of parcels of land along this stretch of road, which in the short term will mean additional tax revenue for the Town, and in the long term may lead to future redevelopment opportunities that will bring about even more tax revenue and job opportunities. The arrival of Amazon itself could attract other companies to the area that would have strong synergistic benefits to locating close to this facility.

TIF Terms

Click here for TIF Agreement

Length (Term):

10 years (exemptions will begin the first fiscal year after the Town has issued a certificate of occupancy for the project)

Exemption Schedule:

Fiscal years 1 and 2: 80%

Fiscal years 3 and 4: 70%

Fiscal years 5 and 6: 60%

Fiscal years 7 and 8: 50%

Fiscal years 9 and 10: 40%

Types of Taxes to be Exempted:

Property taxes pertaining to the value of land and buildings (no personal property taxes will be exempted)

Projected Savings to Amazon over 10 Year Term of TIF:

$27,300,197

Projected Net New Taxes for Town:

The Town will receive a projected $18,200,131 in NET new taxes over the 10 year term of the TIF Agreement.

In the ten years following the conclusion of the TIF term, the Town will receive a projected $45,500,328, making for a total of approximately $63.7 million in projected net new property taxes over a period of 20 years (Amazon will enter into a 20 year lease on the property).

Personal property (furniture, fixtures, equipment, etc.) is estimated to generate an additional $21,309,500 over the 20 year period.

TOTAL: $85 million projected in new revenue over 20 years

These figures do not include the base amount of taxes that the Town currently receives from the property (approximately $29,000 per year), nor does it include fees that the company will pay for permitting of construction.

Jobs to be Created as a Result of Project:

1,500 + temporary construction jobs. This and additional benefits as a result of the project are outlined "How Will North Andover Benefit?" section of this page.