Committee Report - Finance - 11-22-10 — File 190441

November 22, 2010 Finance Committee Page 1 of 2 Printed 12/2/2010 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 Absent John M Connolly Alderman At Large Absent Rebekah L. Gewirtz Ward Six Alderman Present 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 Sean T. O’Donovan Ward Five Alderman Present Joseph Curtatone Mayor Present Monica Lamboy Exec. Dir. OSPCD Present Robert May OSPCD Present Steve Azar OSPCD Present Ed Bean Finance Director Present Eddie Nuzzo OSPCD Present Stephen Mackey Chamber of Commerce Present Janice Delory Chief of Staff Present Greg Mennis Asst. Sec. Administration and Finance Present Don Briggs Senior V. P. Present Cindy McNerney Financial Advisor Present 190360 - Requesting approval to create an Assembly Row DIF Development District and an Assembly Row DIF Development Program pursuant to M.G.L. C. 40Q and 402 CMR 3.00 Et Seq.: Public Hearing: The Mayor discussed the IKEA funding and benefits to the city, as well as the efforts of the city, Governor Patrick and Congressman Capuano to get the infrastructure at Assembly Square built. The Orange Line stop is at 100% design, however the infrastructure must be in place before the process can proceed. Ms. Lamboy gave a presentation and discussed the proposed development, benefits, boundaries, improvements to Assembly Square, DIF generating properties, private land that will eventually be transferred to the city and the $23 million shortfall for the Orange Line station. Ms. Lamboy noted that the DIF is only a portion of the project and that it is necessary for the project to move forward.

Committee Meeting November 22, 2010 Finance Committee Page 2 of 2 Printed 12/2/2010 Assistant Secretary Mennis discussed the economic challenges and a commitment from the state of additional funds, noting that there is an $18 million advance from I-Cubed to fill the gap being faced today. Mr. Briggs told the members that FRIT would submit a revised plan for approval by the Board of Aldermen. He stressed the importance of a public/private partnership and said that for $1 the public invests, FRIT invests $13. When Assembly Square is complete, FRIT will have invested $1.5 billion in the project. Mr. Briggs said that IKEA’s decision not to build at the present time changed the plan, but that the Orange Line stop still needs to be built. Members of the public spoke on the issue and expressed concern about the lack of office development in this phase, the fear that DIF funding will take away from I-Cubed, the tax burden for city services and schools, the lack of information being provided, who would be guarantying the performance of the infrastructure, whether the major streets would be complete streets, the hastiness of the proposal and the lack of figures of additional costs to the taxpayers. Stephen Mackey submitted comments in favor of the proposal. Alderman Pero explained that a December 6th deadline for the Board of Aldermen to make a decision on this matter doesn’t allow enough time for information to be provided, adding that he is concerned that this meeting isn’t being broadcast on cable. Alderman Pero believes that this is a major issue for the residents of Ten Hills and Winter Hill and he requested that residents be notified by ResiStat of the next Finance Committee meeting. Alderman White requested a printout of the debt service to be paid on the bond and stated that he fears that the generated tax might not be enough to make the bond payments. He also asked how much development and growth would be necessary in order to pay the bond. Chairman Heuston asked about the connection between I-Cubed and the DIF and what the city’s potential liability might be in the worst case scenario. Chairman Heuston requested that the Administration provide responses to all of the questions asked at this meeting, prior to the next Finance Committee meeting on November 30th, during which this item will continue to be discussed. Alderman White requested that a representative from Congressman Capuano’s office attend the next Finance Committee meeting. Public Hearing closed. RESULT: KEPT IN COMMITTEE Next: 12/31/2010 12:00 AM 190164 - Requesting the creation of the Alpine Restaurant Stabilization Fund and acceptance of a mitigation payment to the Fund of $2,500 from the Alpine Restaurant Group for pedestrian and bicycle safety measures.: Alderman Sullivan requested that the plans be provided to him for review. Alderman Taylor's motion that the Administration provide an update on the establishment of the Bicycle Safety Committee, was approved. RESULT: APPROVED