News Summary
TransMedics Group Inc., a medical device manufacturer, is looking to establish its headquarters and manufacturing hub in Somerville, MA. The move, which could create 600 new jobs, involves substantial financial incentives from state and local sources totaling up to $36 million. The company plans to invest up to $300 million into the facility at Assembly Square. While the deal promises economic growth, it highlights the challenge of high laboratory space vacancy rates in the area.
Somerville, MA – TransMedics Group Inc., a medical device manufacturer headquartered in Andover, is considering Somerville as the site for its new headquarters and manufacturing hub. The company is eyeing a vacant laboratory building located in Assembly Square, which, if secured, would result in the creation of 600 new jobs.
The proposed deal includes substantial financial incentives, amounting to up to $36 million from both state and city sources. The Somerville City Council has already approved an $18 million tax break package for TransMedics to lease the 500,000-square-foot lab building at 188 Assembly Park Drive, while the state is offering a matching $18 million tax incentive through the Massachusetts Life Sciences Center.
As part of the agreement, TransMedics is expected to invest up to $300 million into the new facility for the construction and outfitting of the lab space with advanced equipment and manufacturing areas.
Job Creation and Economic Impact
In an effort to bolster the local economy, the relocation plan will involve transferring 300 existing jobs from Andover to the new Somerville facility. Additionally, TransMedics is committed to hiring 600 new employees by the end of 2032. The internal configuration of the lab is anticipated to begin in the forthcoming year, with a possible move-in date set for 2029. The agreement includes job creation targets, stipulating that TransMedics must establish 900 full-time positions in Somerville by 2032, with at least half of those jobs filled by the end of 2029.
The tax increment financing (TIF) deal will provide TransMedics with a 10-year, $18 million tax break on property taxes, which carries a clawback provision to hold the company accountable should it fail to meet 70% of its hiring goals. Concurrently, the state’s incentive package sets expectations for the creation of 600 jobs within a five-year timeframe, requiring the company to retain these positions for a minimum of three years. The state incentives are capped at $7.5 million per year with an annual requirement for reapplication.
Challenges with Laboratory Space
Despite the potential for job creation, Somerville is facing a significant challenge with a high vacancy rate in its laboratory spaces, currently reported at 60.3% in the Boston “urban edge” submarket. Mayor Katjana Ballantyne has stressed the importance of diversifying Somerville’s tax base through the attraction of more commercial tenants, ensuring the city’s fiscal health amid changing economic landscapes.
Company Background
TransMedics specializes in the manufacturing of devices for organ transport, including those for lungs, hearts, and livers. The company is looking to expand its operations to include kidney transplants as well. If the relocation deal is finalized, it would represent the first significant lab lease in Assembly Square, highlighting the city’s potential as a growing hub for life sciences.
In summary, the potential relocation of TransMedics Group to Somerville represents a significant opportunity for job creation and economic growth in the region. With a combined incentive package of up to $36 million, the city and state hope to foster a successful partnership that benefits both the company and the local community.
Deeper Dive: News & Info About This Topic
- Boston Globe: TransMedics Expansion in Somerville
- Wikipedia: TransMedics
- Boston Globe: Catherine Carlock
- Google Search: TransMedics
- Boston Globe: Biotech Business Section
- Google Scholar: TransMedics Group Inc.
- Boston Globe: Boston Biotech Industry Overview
- Encyclopedia Britannica: Medical Devices
- Boston Globe: Somerville Economy
- Google News: Somerville TransMedics
Author: STAFF HERE BOSTON WRITER
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