Committee Report - Finance - 10-6-10 — File 190224

October 6, 2010 Finance Committee Page 1 of 2 Printed 10/14/2010 REPORT OF THE FINANCE COMMITTEE Attendee Name Title Status Arrived Maryann M. Heuston Chair Present William A. White Jr. Vice Chair Present Bruce M. Desmond Alderman At Large Present John M Connolly Alderman At Large Present Rebekah L. Gewirtz Ward Six Alderman Absent William M. Roche Ward One Alderman Present Walter F. Pero Ward Four Alderman Present Dennis M. Sullivan Alderman At Large Present Thomas F. Taylor Ward Three Alderman Present Robert C. Trane Ward Seven Alderman Present Sean T. O’Donovan Ward Five Alderman Absent Robert May OSPCD Present Monica Lamboy OSPCD Present Anne Thomas OSPCD Present Stephen Houdlette Present Omar Boukili Administrative Assistant Present Denise Provost State Representative Present Stephen Mackey Exec. Director Present • Public Hearing regarding the District Improvement Financing (DIF) Program A Public Hearing was held to receive public input related to the city’s proposal to create a District Improvement Financing (DIF) Development District and Program pursuant to M.G.L C. 40Q. Ms. Lamboy made it known that the document presented was only a draft for further discussion and then went on to speak about Somerville’s history, new revitilization from rapid transit development and some of the opportunities and challenges to come. The area in question is comprised of many small irregular parcels totaling 460 acres and accounts for 17.4% of the city’s land area. The base value of the property is $951 million and the city prefers to act now while prices are low. The DIF is expected to free up private capital with funds being passed to the general fund. The goal of the proposal is to capture land that would be able to generate revenue after redevelopment. Ms. Lamboy told the members that the proposed DIF would be the largest in the state and that the city cannot afford not to move forward with this proposal, noting that the infrastructure at Boynton Yards is so outdated that it can’t sustain new development. Mr. May discussed how degradation impedes development and pointed out that the area being considered doesn’t have sufficient underground utilities to service the development being proposed. Mr. Houdlette told

Committee Meeting October 6, 2010 Finance Committee Page 2 of 2 Printed 10/14/2010 the members that new growth is paramount for the city and spoke about both short and long term impacts. Among the parcels being considered for eminent domain taking are the Union Square Post Office and Ricky’s Flower Mart. Meetings will be held with property owners in the future to discuss possible takings. Representative Provost spoke about bonding and said that Massachusetts is the highest state in debt and that its bond rating is low and said that tying up future revenues would restrict future growth. Members had concerns about the negative impact on the value of properties listed for possible takings. Several members of the public spoke on both sides of the issue with many commenting on the manner in which property owners were notified. The following information was requested by the committee: • A copy of the applicable state regulation(s) • An explanation of why each individual parcel was selected • A proposed timeline for adoption of the DIF • An opinion of counsel to point out in the DIF statute that the Board of Aldermen will have the power to determine where money would be allocated. • A legal opinion on the process before the Board of Aldermen regarding eminent domain takings • Examples of other DIF projects on the east coast and where the money came from • A list of uses for the proposed DIF The record will be left open until the close of business on December 1, 2010. 190118 - That the Director of SPCD Inform This Board of the Results of a Public Hearing Held on Sept. 15, 2010 Regarding the District Improvement Financing (DIF) Proposal.: RESULT: KEPT IN COMMITTEE 190159 - Requesting approval to create a District Improvement Financing (DIF) Development District and a DIF Development Program pursuant to M.G.L C. 40Q and 402 CMR 3.00 Et Seq.: RESULT: KEPT IN COMMITTEE