Commerce RI approves $1.9M in incentives for A.T. Cross, company expects to create 35 jobs

THE R.I. COMMERCE CORP. vote Monday to extend up to $1.9 million in economic incentives to support the relocation and expansion of A.T. Cross into Providence from Lincoln.
THE R.I. COMMERCE CORP. vote Monday to extend up to $1.9 million in economic incentives to support the relocation and expansion of A.T. Cross into Providence from Lincoln.

PROVIDENCE — The R.I. Commerce Corp. agreed to award $1.9 million in state incentives to the A.T. Cross Co. on Monday to keep one of Rhode Island’s oldest companies in the Ocean State and subsidize its planned relocation and expansion to Providence.
The package taps three incentive programs, including for the first time the First Wave Closing Fund, a discretionary account seeded by the General Assembly with $5 million this year, which allows the state to make cash payments to projects considered critical or catalytic in nature. The board voted to extend $200,000 to the company through the fund.
In other incentives, A.T. Cross will be eligible for Qualified Jobs Incentive Tax Credits, based on the 35 new jobs it plans to create. The total amount, contingent on job creation, is expected to reach $1.2 million, paid out over 10 years.
The company also could qualify for $400,000 in Rebuild Rhode Island tax credits and a sales tax reimbursement for construction related materials of up to $67,000.
A.T. Cross, founded in Providence 170 years ago, now occupies a 150,000-square-foot, leased facility in Lincoln. It plans to relocate to a 42,000-square-foot space at The Foundry, although the lease has not been finalized, said CFO Paul A. Burmeister, who represented the company at the Commerce RI meeting. The space became available when Neighborhood Health Plan of Rhode Island outgrew it and decided to move its headquarters to Smithfield.
The company had received a relocation offer, although not made final, from Connecticut that exceeded the value of the Rhode Island package. But the company wanted to remain in Rhode Island, Burmeister said, during a break in the board’s meeting. He added that the company would not be seeking incentives from Providence.
He would not disclose the location of the alternate site in Connecticut, or say whether the company had solicited a relocation offer.
“This has been in process for a long time,” Burmeister said. “We wanted to find the best location for our business and employees.”
Rhode Island officials said the Connecticut offer had a value of $2.4 million.
The company, which designs and manufactures high-quality writing instruments and accessories, plans to expand its workforce over a three-year period. The median salary is expected to be $88,000, well above the Rhode Island median salary.
A.T. Cross now employs 105 people at its headquarters in Lincoln, which are only partially occupied. The company, which moved to the suburban space more than 30 years ago, no longer needs that amount of space, in part because its manufacturing operations have been relocated to a facility in China.
The Foundry location in Providence is appealing because of its central location, the proximity of mass transit and the city’s culture, which the company believes is attractive to new employees.
“It’s a very attractive space and atmosphere, we believe, for our workforce and our workforce of the future,” Burmeister said.

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  1. Instead of giving tax breaks and grants in aid to a few lucky companies, Rhode Island should reform its tax policies to help every business owner and every home owner in Rhode Island. First, Rhode Island’s sales tax rate should be reduced to 3% on all taxable items and services and food, clothing and boats should be included in the list of taxable items. Next, Rhode Island should increase funding for education to a point where each city and town could reduce their property taxes by 15%. Finally, Rhode Island should reduce its tax on gasoline and diesel fuel to 20 cents per gallon.
    First, total sales tax revenue would increase because the sale of vehicles, jewelry and other big ticket items would increase. Upper income Rhode Island residents and tourists spend huge amounts on food and clothing. Next, every business owner and homeowner would be saving 4% on everything they buy and 15% on their property taxes. Businesses would expand and hire more employees and home owners would have the money to make improvements to their homes or to buy a more valuable home. Finally, every vehicle going to Northeastern New England or Cape Cod has to pass through Rhode Island. Thousands of these vehicles would stop to buy fuel in Rhode Island each day and each vehicle driver would spend a lot of time and money in Rhode Island. Yearly fuel tax revenue would probably double and provide the funds to eliminate the car tax and repair Rhode Island’s road infrastructure.