Biotech Firm Gets 50% Tax Break

In an effort to create jobs and keep thriving businesses in the city, the Cambridge City Council voted unanimously Monday to grant a Cambridge-based biotechnology company a 15-year, 50 percent tax break.

Biogen Inc. proposed the tax break to the council in a petition outlining plans for a 130,000 square-feet expansion. In exchange for the tax break, the company said it will work in conjunction with city agencies to hire as many Cantabrigians as possible for jobs created from the expansion.

After 15 years, the company will pay the normal tax rate.

The company, which expects revenues of $150 million next year, also pledged to "work with Cambridge Rindge and Latin School or whatever institution is appropriate" to help in the community, according to Biogen Vice President for Operations James C. Mullen.

The deal will mean an estimated overall savings of $3.9 million for the company, which manufactures products such as hepatitis vaccines.

The agreement, however, doesn't guarantee employment for city residents, according to Mullen. Because biotechnology firms cannot predict whether products will be outdated by new discoveries, Mullen said he can't guarantee that the renovated site will generate high-paying or steady jobs.

The agreement does guarantee, however, thatBiogen will remain in Cambridge. Last year,another Cambridge-based biotechnology firm,Genzyme Corp., announced it would open a new plantin Alston.

"Cambridge has had the experience thatcompanies come and develop here until they aremanufacturing, and then there is a history oftheir moving out to the suburbs," Councillor AliceK. Wolf said.

Mullen said it is also unlikely that Biogenwill move because manufacturing licenses arespecific to exact sites and are expensive and hardto obtain.

Biogen has the option of expanding further--upto 690,000 square feet. If the full expansiontakes place, the city will receive a total of $20million in tax revenue during the fifteen yearsafter construction is begun

The agreement does guarantee, however, thatBiogen will remain in Cambridge. Last year,another Cambridge-based biotechnology firm,Genzyme Corp., announced it would open a new plantin Alston.

"Cambridge has had the experience thatcompanies come and develop here until they aremanufacturing, and then there is a history oftheir moving out to the suburbs," Councillor AliceK. Wolf said.

Mullen said it is also unlikely that Biogenwill move because manufacturing licenses arespecific to exact sites and are expensive and hardto obtain.

Biogen has the option of expanding further--upto 690,000 square feet. If the full expansiontakes place, the city will receive a total of $20million in tax revenue during the fifteen yearsafter construction is begun