A proposal to privatize operations at Hudson’s transfer station could generate between $450,000 and $612,500 in annual revenue for the town, according to information presented to the Board of Selectmen during its most recent meeting.
Hudson Director of Development Services Elvis Dhima provided an update after the town sought proposals from private partners interested in utilizing approximately eight acres of town-controlled property at the landfill/transfer station located at 26 West Road.
“The Town issued an RFP seeking private partners interested in utilizing approximately eight acres of Town-controlled property at the landfill/transfer station located at 26 West Road,” Dhima explained.
According to Dhima, SMS Services, Inc. submitted a proposal, along with an updated proposal dated Oct. 9, 2026, offering to assume full operational responsibility for the transfer station, including staffing and management, while constructing a new processing facility at its own expense.
Dhima said the proposal offers several potential benefits to the town, including:
- Host fee revenue of $2.50 per ton processed. Based on an estimated 500 to 750 tons per day and a minimum five-day operating week, annual revenue is projected to range from $325,000 to $487,500.
- Approximately $125,000 in annual property tax revenue, subject to final assessment.
- Elimination of current transfer station staffing and management expenses.
- Monthly lease payments to the town, with terms still to be negotiated.
- Construction of a new processing facility, which could create jobs and support local economic development.
Dhima said the combined estimated annual revenue from host fees and property taxes would range from $450,000 to $612,500, excluding lease payments and municipal operating savings.
“So you’re looking at somewhere right now, $450,000 to $612,000,” Dhima said. “That does not include the lease yet.”
He explained that lease terms have not yet been determined because the size and scope of the proposed facility remain uncertain.
“We don’t know how big this building is going to go,” Dhima said. “If we get more money out of the taxes because we have a bigger facility, I think they want to adjust the lease. They don’t want to commit to that yet.”
Dhima said he is encouraged by the proposal because it could provide a recurring source of revenue for the town.
“Obviously this is an annual basis. This is not a one-time thing,” he said. “So a lot can be done with that half a million dollars every year.”
Dhima added that other communities are exploring similar partnerships.
“I think there’s a lot of people excited about this,” he said. “As a matter of fact, I think even Salem is looking right now to subcontract its transfer station services.”
Officials noted that any final agreement would need to return to the Board of Selectmen for approval.
No action was taken during the meeting.
