Needham-based Waterford Development Corp. is developing the $28 million project, which is being constructed on 60 acres owned by a private school. Sepracor's lease provides it with an option to lease two additional buildings totaling about 232,400 sf that could eventually be developed on the same site. The company will also have the first right to purchase the entire property in June of 2002.

Sepracor is attempting to reduce its local property taxes here by seeking tax increment financing for the project. If approved, the company's property taxes would be reduced by $3.2 million over 20 years. Instead, the company would reportedly be paying $11.4 million in property tax payments to the city in that same period. The City Council's finance committee here is currently considering the request.