The Salem News | By Arianna MacNeill
October 30, 2016
BEVERLY — Instead of recycling an existing building at the Cherry Hill business park, a company relocating to the city from Peabody plans to build new.
Krohne, Inc., a Germany-based company that makes water measurement tools for industrial purposes, plans to move to Beverly from Peabody by the end of next year, bringing its 48 existing employees plus 56 new jobs with it.
But the building Krohne originally intended to renovate at 55 Cherry Hill Drive would not easily accommodate the company’s manufacturing lines, so managers have decided that starting over at the site is best.
The company had a Tax Increment Financing agreement approved by the City Council last year, but had to go back to officials to re-approve it with the change of plans.
The company plans to build a new North American headquarters with manufacturing and sales space, amounting to a $23.4 million investment. That includes buying the property, demolition, construction and equipment. The new building itself is planned to cost $12 million, according to Aaron Clausen, the city’s planning director.
The new building will have 20,000 square feet of office space plus 64,000 square feet for manufacturing. Krohne plans to break ground next month and have the new facility open by December 2017.
With the TIF, the company will have a certain percentage of its taxes exempt each year — 10 percent for the first three years, beginning in fiscal year 2018; 7.5 percent for the next three years; and 5 percent for the last four years. This is just on new development, not the existing value of the land, currently assessed at just over $3.7 million.