Commerce RI set to offer $1.9M to keep A.T. Cross from leaving R.I.

A.T. CROSS is being offered $1.9 million in economic incentives to move its Rhode Island operations from Lincoln to Providence and to keep from moving to Connecticut.
A.T. CROSS is being offered $1.9 million in economic incentives to move its Rhode Island operations from Lincoln to Providence and to keep from moving to Connecticut.

(Updated 10:22 a.m.)
PROVIDENCE — A.T. Cross Co. could qualify for up to $1.9 million in state incentives through a move to The Foundry complex in Providence and an expansion of its workforce. A committee of the R.I. Commerce Corp. on Thursday afternoon recommended that the full board approve a package involving three incentive programs that board members said could help to keep the 170-year-old company in the Ocean State.

The state is counter-offering a proposal made by Connecticut to relocate the company closer to New York, the location of its parent company, Clarion Capital Partners.

Connecticut has extended an offer with a value of about $2.4 million, according to Jesse Saglio, managing director and head of the investments group for Commerce RI.

The new A.T. Cross CEO lives in Connecticut, he said, identifying a town in Fairfield County. Connecticut has offered a relocation package that is primarily structured through cash, via a forgivable loan, Saglio said.

- Advertisement -

By comparison, the Rhode Island incentives are more restrictive, he said, tied to performance standards, including job creation. But the global brand, a fine writing instrument and office accessories company, has indicated it wants to remain in Rhode Island, according to Commerce RI executives.

The company, now led by CEO Robert P. Baird Jr., has proposed to hire 35 full-time employees over five years, positions in areas including sales, marketing and design. The existing workforce is about 104. The company is headquartered in Lincoln, but as part of a re-branding campaign, has found its existing space is not suitable.

In August 2015, the company announced the appointment of Baird and indicated it was embarking on a new branding strategy “to reach expressive consumers all over the world.”

“What they’re proposing to do is move the operations just down the street to the Foundry,” Saglio said, a reference to the proximity of the Foundry to the Commerce RI headquarters.

“That will give them access to Providence. Part of what they want to do is re-position the brand.”

The specific package of enticements to remain and expand in Rhode Island includes: $1.2 million in Qualified Jobs Incentive credits, based on the number and salary of the positions created; $400,000 in Rebuild Rhode Island real estate credits for build-out costs in its space at the Foundry, to be paid out over five years; up to $67,000 in sales tax incentives and $200,000 in First Wave Closing Fund grants.

The First Wave Closing Fund is a highly flexible program that allows the state to provide cash grants to employers that are considered strategic. If approved, this would be the first application of the new program. According to Commerce RI, it provides “lynchpin financing unavailable from other sources to close transactions of a critical or catalytic nature.” The money can be used for a variety of purposes, including working capital, equipment purchases, furnishings, construction and permanent financing.

Commerce Secretary Stefan Pryor, who attended the Investment Committee meeting, said the company is worth keeping in Rhode Island. “A.T. Cross is an important Rhode Island company. The company is proposing to add a significant number of jobs.”

If approved by the full Commerce RI board, the relocation package would allow Cross to renovate its intended space in The Foundry, including the establishment of a new, high-end retail showcase for its products, Saglio said. It would occupy about 42,000 square feet of office space, a portion of the area previously leased by Neighborhood Health Plan of Rhode Island.

Magnus Jonsson, global chief marketing officer for A.T., Cross, said “A.T. Cross has been a proud Rhode Island employer for 170 years and we’re excited that the state of Rhode Island is committed to working with us so that we can remain here. We’re looking forward to their final decision on May 9.”
The Lincoln property is already being marketed, Saglio said. The Foundry, he said, has offered a package that includes no rent until the company’s lease expires in Lincoln in March 2017.

No posts to display

1 COMMENT

  1. Instead of giving tax breaks and grants in aid to a few lucky companies, Rhode 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 repair and improve Rhode Island’s road infrastructure.