A.T. Cross Company

The Company

AT Cross ribbon cuttingA.T. Cross Company, which traces its Rhode Island roots back 170 years, is a leading global designer and manufacturer of high-quality writing instruments and accessories. The Company’s products are sold in 89 countries through department stores, specialty retail outlets, and the corporate gift channel. Currently, Cross employs 105 full-time employees in corporate operations, design, and light manufacturing at the Company’s headquarters in Lincoln.

Approved Incentive

A.T. Cross is proposing to move to a new 42,000 square foot facility in Providence that will accommodate existing operations as well as a new boutique retail storefront. The Company has committed to expanding its workforce by at least 35 new employees at a median salary of $88,000 over the next three years. The new space will require an estimated $2.1 million investment for build-out of the office space and storefront. The Corporation is recommending awarding the Company an incentive package consisting of tax credits under the Qualified Jobs Incentive Tax Credit Program; up to $400,000 in Rebuild Rhode Island Tax Credits; and a grant of up to $200,000 through the First Wave Closing Fund.

Explanation

  • A.T. Cross is contemplating relocating its Rhode Island operations from Lincoln to either another location within Rhode Island or to a site in Connecticut.
  • Connecticut has offered the Company an incentive package valued at approximately $2.4 million to relocate its operations there.
    • Based on current salary estimates, A.T. Cross would be eligible for annual Qualified Jobs Incentive Tax Credits of approximately $133,255 for the 35 new jobs. The recommended term of the tax incentive agreement is ten years, and A.T. Cross has indicated that it will commit to maintaining the new jobs in Rhode Island for at least the twelve years required. The total credits are anticipated to be approximately $1.23 million based on the projected hiring schedule.
    • Based on current project estimates, A.T. Cross would be eligible for Rebuild Rhode Island Tax Credits of up to $400,000 over five disbursements, beginning with certificate of occupancy, as well as a reimbursement for eligible sales tax of up to $67,000 on building materials.
    • The Corporation has recommended a grant from the First Wave Closing Fund of up to $200,000, tied to the job creation schedule established in the Qualified Jobs Incentive Tax Credits.
    • Subject to the award of this incentive package from Rhode Island, A.T. Cross has agreed to remain in Rhode Island and relocate its operations to Providence, rather than move to Connecticut.The Corporation has negotiated an incentive package to the Company valued at approximately $1.9 million, consisting of Qualified Jobs Incentive Tax Credits, Rebuild Rhode Island Tax Credits, and a grant from the First Wave Closing Fund.

 

Additional Documentation

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