MIDDLEBORO — The state has rejected a tax break plan approved by Special Town Meeting voters for a company seeking to relocate to Middleboro, forcing a second vote, Town Manager Jay McGrail told the Select Board at their Jan. 13 meeting. 

The issue will now return to voters at the April 28 Town Meeting.

Special Town Meeting voters on Oct. 7, 2024 strongly supported a 10-year tax increment financing agreement, informally known as a TIF, between the town and Rexa, a West Bridgewater company looking to construct a 110,000 square foot building on East Grove Street. 

The agreement would give the company a tax break averaging 56% over 10 years.

The plan approved by voters then went to the state’s Economic Assistance Coordinating Council for approval. 

But at a Dec. 24 vote, the council rejected the plan, citing the town’s refusal to comply with the MBTA housing mandate, according to Attorney Gregg Corbo of KP Law, Middleboro’s legal representative. 

At the same meeting where voters supported the Rexa tax plan, they strongly rejected the housing mandate, a state requirement that would allow construction of a large number of multi-family units with limited regulation within a half mile of the MBTA station. Middleboro officials have also supported the Town of Milton in its legal battle against the requirement.

The council’s vote is essentially moot, however, because of a state law effective in January that no longer requires state approval for tax incentive financing agreements, Korbo said.

But because the council vote was taken before the new law went into effect, and to ensure all legal measures are correctly taken, the issue will return to voters in the spring.

“The good news is that Rexa is sticking with us and that there is a fix for this come spring,’’ Korbo said.

Select Board member Brian Giovanoni said the rejection was made “out of spite.’’ 

“It’s disgusting that [the council] doesn't want to partner with small businesses,’’ he said. 

“It’s unfortunate that they voted to deny the application of Rexa and disregard the will of the people of Middleboro,’’ Select Board Chair Mark Germain said in an interview after the meeting.