David Clark Co., Worcester aerospace equipment manufacturer, planning to move

WORCESTER — The David Clark Co. is planning to move from its manufacturing facility at 360 Franklin St. to a "more modern and efficient facility," according to a communication from the city Executive Office of Economic Development.

According to a letter from City Manager Eric D. Batista, the company and its affiliate DCH Properties LLC plan to move to a vacant 138,472-square-foot facility at 115 Northeast Cutoff. The project would include renovating the space and creating 20,000 square feet of office space for company headquarters, 88,370 square feet for manufacturing space and 30,102 square feet for warehouse and storage space.

In a brief statement Monday, the David Clark Co. confirmed it is in the early stages of moving to Northeast Cutoff.

"David Clark is currently engaged in relocating our company to the property located at 115 NE Cutoff in Worcester.  This process is in the beginning stages and there are multiple milestones that still need to be completed.  At this time, we have no further comment on the matter," the company statement read.

The 115 Northeast Cutoff property was once home to another large manufacturer, semiconductor maker Allegro MicroSystems. Allegro announced in 2018 that it was leaving Worcester and moving to Manchester, New Hampshire.

The property, which included Allegro's sprawling 56-acre campus, was sold in 2019 for $3.9 million by Worcester-based Chacharone Properties with plans to convert the property for general office use.

The project is estimated to cost $48 million: $19 million for the acquisition, $25 million for renovations and $4 million for personal property.

Peter Dunn, the chief development officer, wrote in the report that the David Clark Co. plans to move "[i]n order to meet increased customer demand."

Batista wrote that the city negotiated a tax increment financing agreement with an annual exemption of 60% over 12 years and the company is applying to be a certified project under the state's Economic Development Incentive Program. The company has agreed to the city's responsible development ordinance, Batista wrote.

City Council will review the agreement and application at its Tuesday night meeting.

Dunn wrote the Economic Development Incentive Program would provide a partial reduction in property taxes.

The property's base value is around $3.73 million and total assessed value after construction is estimated at around $13.16 million. The tax increment financing agreement would provide a total saving estimate of $2.31 million over 12 years, or a savings of $9,900 per each job retained or created, according to Dunn.

For the 12-year period, total property taxes expected for the project are around $3.14 million. When the agreement expires, the property is estimated to contribute $580,000 annually, with about $435,000 annually are new taxes as the the result from investment, Dunn wrote.

Construction is expected to begin in the third quarter of this year and to be completed by the end of 2025.

According to Batista, the company would retain 229 full-time jobs and add five new full-time positions. He wrote that Worcester residents make up about 50% of the workforce.

The David Clark Co. designs and manufactures aerospace and industrial protective equipment.

Founded by its namesake in 1935 , the company began providing high-altitude pressure, anti-gravity suits for World War II pilots in 1941.

It is most well-known for supplying the gear used by Neil Armstrong and the other astronauts in the Apollo 11 moon landing mission in 1969.

The company continues to provide NASA with protective equipment, as well as headsets for other settings like airports, football sidelines and the pits of car races.

The company also has operations in Connecticut and Texas.

Rental registry program

In another item on the Tuesday City Council agenda, District 3 City Councilor George Russell is asking for the city to consider multiple sections of Boston's rental registry program for Worcester's controversial program.

Worcester's rental registry program was unanimously approved in 2022. It requires any person who owns a property that is rented out to register each unit with the city. The registry includes residential, commercial and industrial properties as well as vacant lots that are rented for any purpose.

The rollout of the program, as well as associated fines, received backlash from residents and councilors.

Batista has submitted changes to lower fines and the registration deadline was moved to July 1.

Russell is asking that the city consider the following amendments:

• An exemption of inspections for owner-occupied multifamily homes under six units
• Allowing property owners to hire independently licensed inspectors who provide certified and sworn statements about the property condition
• Language to ensure that property owners are not held responsible if a tenant denies an inspector access to a unit including a statement that a landlord is prohibited from encouraging a tenant to deny access

This article originally appeared on Telegram & Gazette: David Clark Co., Worcester aerospace equipment manufacturer, planning to move