CRANSTON – Groundbreaking for a $15 million to $18 million addition at Taco Inc., originally scheduled for the end of April, has been delayed while company officials assess the impact of proposed state tax changes on the manufacturing business.
According to Kyle Adamonis, senior vice president of human resources and legal affairs, the company that manufactures HVAC equipment and employs about 400 workers at the Cranston facility has put on hold plans for expansion of its learning center. All local approvals are in place, she said.
The tax changes proposed by Gov. Lincoln D. Chafee include expansion of the sales tax. Depending on what tax changes are put into place, “it could cost us more to do business in this state,” Adamonis said. “We are reviewing the potential costs.” The General Assembly is expected to act on tax changes as part of its work preparing the state fiscal year 2012 operating budget.
When asked if a state tax increase would mean that Taco would abandon the expansion plan, Adamonis said the company must first review the new costs any tax changes may effect before making a final decision.
Taco is planning to build an addition of 24,000 square feet for office space and an expansion to the company’s learning center. The expansion will take place at the Taco facility at 1160 Cranston St. and will include substantial interior renovations to the existing building.
Plans call for both projects to apply for LEED Gold certification in accord with national Leadership in Energy and Environmental Design standards, Adamonis said.
Most of the expansion will be devoted to the Taco Innovation and Development Center, Adamonis said, a learning center for employees, suppliers and customers. The newly enlarged center will house classrooms, including a 63-seat tiered classroom, a library and a computer training laboratory, Adamonis said. Space will be available for the display of Taco products so visitors can “touch, feel and see” the equipment that the company makes. “We often invite in customers to learn about our products,” Adamonis said.
The main purpose of the expansion, however, is to enhance the education of Taco employees, Adamonis said. “We are very dedicated to our employees here,” she said. “Most come from this area and we have a great team. The average length of service is 15 years and we have a turnover rate of less than one percent.”
The project will take 18 to 24 months to complete. Shawmut Design & Construction, with offices in Providence and Boston, is the construction manager and the Baker Design Group Inc. of Boston is the architect.
The addition, Adamonis noted, “will allow us to stay in Cranston and in Rhode Island for many more years, to continue to do business and have some growth.” She said Taco has been working on plans for the addition for six to eight months.
