Analog Devices Leaving Norwood

WILMINGTON, MA -- Analog Devices will consolidate its Massachusetts operations in Wilmington, thanks in part to tax incentives offered by the town's board of selectmen. Once Analog Devices builds an expanded headquarters on its existing campus in Wilmington, it will close its Norwood facility and consolidate its 2,000 Massachusetts-based employees at the new facility. The consolidation is also expected to create 50 new, full-time jobs over the next five years.

The company released a rendering Thursday of the 174,000-square-foot office building that will be the centerpiece of 441,160 square feet of new construction Analog plans to build on the land it owns in Wilmington. Analog expects the new construction, including a 52,000-square-foot HUB building and parking garage, to cost $142 million. It will also spend another $14 million on renovating existing buildings.

Last month Wilmington Town Meeting approved a tax increment financing package. In a tax-increment financing, or TIF, deal, the municipality floats bonds to pay for infrastructure and sometimes construction costs for a private sector developer. Those bonds are repaid using the additional tax revenue from the higher assessment of the property.

Critics of such deals say that even though the government does not give money directly to the company, it is giving a company an unfair advantage over competitors and that TIFs encourage development that would be otherwise economically infeasible in a free market.

In addition to the TIF, Wilmington is waiving $700,000 in construction permit fees. As part of the deal, Analog agreed to transfer 450 employees from Norwood and its other Massachusetts facility in Chelmsford to the Wilmington campus.

By Dave Copeland, Patch Staff

Image via Analog Devices