BAILOUT
For a BILLIONAIRE?
NO to Gloucester Crossing’s TIF
· Highly profitable DeMoulas grossed $2.5 billion in ‘07. Do they need a 50% tax break from our City?
· Sam Park’s poor planning has escalated his construction costs. Does he expect the City to bail him out for his mistakes?
· Isn’t giving Park the Fuller ball field for a mall access road enough?
· Sam Park’s Gloucester Crossing, with 250 toilets, paid $14K in hookup fees. What did you pay?
· When local businesses close down, expect a net loss in local jobs and tax revenues.
· Will you get a tax break for sitting stalled among 8,000 more cars/day on 128 extension?
· The vernal pond has been clear-cut by Sam Park and the Babson Reservoir is downstream of the Mall. Reward the Mall with millions in forgiven taxes?
· Could our schools, fire stations, police, and DPW maker better use of the $2,300,000 in TIF tax money?
With your help we’ll stop this bailout.
This is a democracy, NOT a Done Deal.
The City Council represents You, not the Mall. Call now, before they vote. Call Mayor Carolyn Kirk: 281-9700
Councillors At-Large WardCouncillorsWard I: Jason Grow 283-0079Ward II: John "Gus"Foote 283-2757 Joseph Ciolino 283-6559Ward III: Steve Curcuru 281-1845 Sharon George 283-7775Ward IV: Jackie Hardy 283-4858 Sefatia A. Romeo Vice President 283-1527Ward V: Philip Devlin 525-2115 Bruce Tobey President 282-0001
City Council Public TIF Hearing on Wed. Dec. 3, 7 PM, City Hall
http://nofreelunchforgloucestercrossing.blogspot.com/
Wednesday, November 26, 2008
Thursday, October 30, 2008
Slides from NFL Presentation at Open Hearing, Tuesday Night, 28 October
NO FREE LUNCH FOR GLOUCESTER CROSSING
Protesting Public Funds for Private Profits
Topics of Discussion:
NO FREE LUNCH FOR GLOUCESTER CROSSING
Protesting Public Funds for Private Profits
Topics of Discussion:
- TIF for DeMoulas/Park: a violation of City and State policy objectives
Mall poses new risks and costs to City
It’s not Fair
Especially in economically hard times, we should subsidize forward-looking projects
Enough is Enough – huge subsidies already given to Gloucester Crossing
Enough is Enough
Subsidies already given to DeMoulas/Park :
$14,000 sewer hook-up fee for entire complex
Fuller School ballfield given up for access road
$2 million MORE Jobs Grant from state given preliminary approval
Taxes already up to 50% less than in neighboring towns with DeMoulas shopping centers ($500K/yr. here vs. $1.1Million/yr. in Salem; $832K in Danvers)
Environmental damage – Babson Reservoir, flooding on Maplewood Avenue, vernal ponds and wetlands destruction has huge cost yet untallied
Public Funding: MORE and TIF
State MORE Jobs Grants
–Commonwealth taxpayer money given to a developer to encourage new businesses to come to Cape Ann and create professional-level jobs, and bring in sales revenues from out of state and around the world
Tax Increment Financing (TIF)
– Allows a percentage of a company’s property taxes to be forgiven (and allows a company to receive Massachusetts Investment Tax Credit)
–Purpose of a local TIF is to provide incentive for a company to locate in Gloucester and not elsewhere
MORE and TIFs in Reverse
Examples of strong TIF and MORE candidates:
–Varian
–Fiske
Retail Chain stores = reverse TIFs and MOREs
–Sales $ generated from local population
–Profits headed off the Cape
–Low-wage, non professional jobs
–Competition and threat to local businesses and culture
Criticisms of TIF’s - Wikipedia
“The process leads to favoritism for politically connected developers, lawyers, economic development directors and other implementers.”
“Funding often goes toward what have been traditionally private improvements. Improvements that developers profit from. When the public "invests" in these improvements, it is the developers that still receive the return.”
DeMoulas/Park
No other city or town in Massachusetts has granted a TIF to DeMoulas
DeMoulas is a shopping mall developer, not just a grocery store owner
DeMoulas is a private corporation that earned $2.5 bill. in 2007 and doing very in well in this economic downturn
TIF Not Needed by DeMoulas/Park
Applicant for TIF in question is DeMoulas (which then carries in the rest of the property, excluding assisted living)
We hear that DeMoulas has loaned $43 million to Sam Park and plans to invest $10.5 million in its own building. If this is so, then who’s in charge?
Park’s Waltham project – Park paying for $18 million in offsite infrastructure improvements, such as bridge
Questions Teem Around Mall….
What is the financial relationship between anchor DeMoulas and Sam Park?
Remember – DeMoulas/Park did not tell the City about the $33 million loan until NFL discovered it
What happened to the $250,000 ambulance the Mall people promised to donate to the City? First they promise, then they call “voluntary”, then in Gloucester Times today they recommit—where do we stand?
…and Few Answers Forthcoming
Sam Park’s representatives promised City Councilors there would be no change to the vernal pond – a year later, they clear cut the wetland
Sam Park failed to report the link between wetlands on the site and the Babson Reservoir – the Army Corps of Engineers ruled there is a link
Sam Park dropped a request for a traffic light, but still plans to install a “left turn lane” on Route 128 entrance. (How many accidents before installation of a light is mandated by state?)
What will Gloucester Crossing Cost our City?
Costs to service the Mall were estimated at $200,000 per year in 2007
That estimate was based on full staffing at police and fire departments…which is not the case.
Police and fire departments are already stretched thin and shopping centers can require extensive police involvement
Fire department, ambulance will be needed at assisted living
After 15 years, City will take over management of access road, adding to DPW responsibilities
True costs to City are probably closer to $400,000 per year
More Costs to City in Lost Jobs, Taxes, Quality of Life
Lost jobs, taxes, culture when local stores close
How many supermarkets can one island support? How many union shops?
Which supermarket(s) will be shuttered? How many jobs and taxes lost as a result?
What about stores on Main Street and elsewhere which will be affected, whose owners are our neighbors rather than distant chain store owners?
Do the Math: Risk of City FundingShopping Mall
Assume $500K/year taxes from Mall
Costs to City could go as high as $400K/year
Lost taxes from other businesses closing down could be as high as $200K/year
Mall could actually create an income loss – and in addition we will have lost green space and wildlife, increased congestion, and threatened our water supply.
…And that’s without a TIF/MORE “free lunch”.
Simple Fairness
Why give a TIF to a rich developer and not support our own businesses that create more wealth in the community?
Why support low-wage jobs with no benefits, rather than professional level positions with a future?
Why reward Mr. Park’s “Done Deal” clear-cutting with gifts of tax monies?
City Council Actions Requested
The project needs to deal fairly with its water issues prior to moving forward:
–Agree to pay a fair sewer hook-up and water usage fee
–Restore the wetlands destroyed recently
–Analyze impacts and require protection of water runoff into Babson
Provide an accurate assessment of costs to the City from GC, and its reduced taxes elsewhere in the City
Oppose TIFs for chain businesses in the Mall
Fix the project and grant approval process – so “fine print” is transparent to the public
Rebuild an environment of trust
Initiate a participatory and forward-looking economic development strategy that will benefit residents and protect our rich natural and cultural heritage
Build on the extensive skills and assets of the existing workforce and businesses
Contact “No Free Lunch”
Find this presentation at
http://nofreelunchforgloucestercrossing.blogspot.com/
Friday, July 4, 2008
Closing in on a thousand signatures....
The below petition continues to gather signatures around the Cape. Email if you want to sign and have not been able to locate a petition in one of your local stores.
*****
No Free Lunch for Gloucester Crossing
A Petition from the Citizens of Cape Ann
We the undersigned oppose the City of Gloucester granting any subsidies to Gloucester Crossing, a private venture, in this time of fiscal crisis. We oppose Tax Incentive Financing (TIF) and any request to our state legislature for approximately $3 million in subsidized infrastructure financing for this project. We look to the new Mayor of Gloucester to instead use our tax money and any financial assistance from state and federal governments to invest in our schools, water and waste water systems, roads, and sustainable economic development.
*****
No Free Lunch for Gloucester Crossing
A Petition from the Citizens of Cape Ann
We the undersigned oppose the City of Gloucester granting any subsidies to Gloucester Crossing, a private venture, in this time of fiscal crisis. We oppose Tax Incentive Financing (TIF) and any request to our state legislature for approximately $3 million in subsidized infrastructure financing for this project. We look to the new Mayor of Gloucester to instead use our tax money and any financial assistance from state and federal governments to invest in our schools, water and waste water systems, roads, and sustainable economic development.
Petition for a Public Hearing
We need additional signatures on the petition for a public hearing. We got lots yesterday at the Gloucester Parade, despite the Rain. Once we get 150 signatures, and submit the petition, within 90 days the City will hold a public hearing on the subject.
Here's the text of the petition. Send an email if you want to sign and can't make it to the meeting on Weds.
******
No Free Lunch for Gloucester Crossing
A Petition for a Public Hearing
from the Citizens of Cape Ann
We the undersigned request a Public Hearing about the full range of local and state subsidies planned, requested, or under discussion for Gloucester Crossing (including land), and justifications upon which any of these will be based, including impacts on our local economy, traffic, and infrastructure.
Here's the text of the petition. Send an email if you want to sign and can't make it to the meeting on Weds.
******
No Free Lunch for Gloucester Crossing
A Petition for a Public Hearing
from the Citizens of Cape Ann
We the undersigned request a Public Hearing about the full range of local and state subsidies planned, requested, or under discussion for Gloucester Crossing (including land), and justifications upon which any of these will be based, including impacts on our local economy, traffic, and infrastructure.
Next Steps: Meeting Weds. July 9
Meet and Discuss Next Steps
July 9, 6:15 PM
Pleasant St. Tea Company
7 Pleasant St.
Gloucester
July 9, 6:15 PM
Pleasant St. Tea Company
7 Pleasant St.
Gloucester
MORE Grant Award
PRESS RELEASE – 4:30 p.m. June 13, 2008
RESIDENTS OPPOSE GOVERNOR PATRICK’S ANNOUNCEMENT OF PUBLIC FINANCING OF GLOUCESTER CROSSING SHOPPING MALL
Governor Deval Patrick has announced a state $2.2 million MORE Jobs grant to Gloucester Crossing, a new shopping mall to be built in Gloucester by private developer, Sam Park. This grant is in direct violation of the guidelines of the MORE program established by the State legislature in 2007. The Governor’s office has not responded to multiple inquiries and questions from Gloucester residents about the inappropriateness of state funding for this private mall developer. A petition with over 600 signatures in opposition to grants or tax breaks for Gloucester Crossing has been submitted to the Governor’s Office of Housing and Economic Development.
Citizens have articulated their many reasons for opposition to public financing.
Gloucester Crossing does not meet the MORE grant criteria to generate substantial sales from outside the Commonwealth and create 100 new permanent full-time jobs.
Gloucester Crossing will not provide exceptional economic benefit to Gloucester. To the contrary, it is likely that this new shopping mall will lead to more and more stores closing in Gloucester’s downtown area and in the industrial parks. Any jobs created will be low-wage service jobs. Profits will head out of town as well. In effect, this grant will be a “reverse MORE” project, because revenues will flow out of rather than into Massachusetts.
There are far superior uses of MORE grant and other state support to Gloucester, such as:
-Wastewater pretreatment on the harbor – The Gloucester Harbor Committee has requested funding for years for wastewater pretreatment that would allow for substantially more value-added fish product development on the harbor. When the “dehyde” plant was closed years ago, much fish processing went elsewhere in the state. This is the kind of project that the MORE Jobs program has funded in the past.
-Parking garage in the downtown – Downtown development committees and other City plans have routinely recommended that additional parking be provided for shoppers. This will help Main Street businesses, rather than hurt them.
The City has not conducted a complete economic analysis of the impact of the project. Lost business on Main Street has not been considered nor the lost multiplier effect of sales circulating over and over within the local economy. The developer has announced his intentions of engaging corporate “box” stores and national/international hotel and assisted living chains.
RESIDENTS OPPOSE GOVERNOR PATRICK’S ANNOUNCEMENT OF PUBLIC FINANCING OF GLOUCESTER CROSSING SHOPPING MALL
Governor Deval Patrick has announced a state $2.2 million MORE Jobs grant to Gloucester Crossing, a new shopping mall to be built in Gloucester by private developer, Sam Park. This grant is in direct violation of the guidelines of the MORE program established by the State legislature in 2007. The Governor’s office has not responded to multiple inquiries and questions from Gloucester residents about the inappropriateness of state funding for this private mall developer. A petition with over 600 signatures in opposition to grants or tax breaks for Gloucester Crossing has been submitted to the Governor’s Office of Housing and Economic Development.
Citizens have articulated their many reasons for opposition to public financing.
Gloucester Crossing does not meet the MORE grant criteria to generate substantial sales from outside the Commonwealth and create 100 new permanent full-time jobs.
Gloucester Crossing will not provide exceptional economic benefit to Gloucester. To the contrary, it is likely that this new shopping mall will lead to more and more stores closing in Gloucester’s downtown area and in the industrial parks. Any jobs created will be low-wage service jobs. Profits will head out of town as well. In effect, this grant will be a “reverse MORE” project, because revenues will flow out of rather than into Massachusetts.
There are far superior uses of MORE grant and other state support to Gloucester, such as:
-Wastewater pretreatment on the harbor – The Gloucester Harbor Committee has requested funding for years for wastewater pretreatment that would allow for substantially more value-added fish product development on the harbor. When the “dehyde” plant was closed years ago, much fish processing went elsewhere in the state. This is the kind of project that the MORE Jobs program has funded in the past.
-Parking garage in the downtown – Downtown development committees and other City plans have routinely recommended that additional parking be provided for shoppers. This will help Main Street businesses, rather than hurt them.
The City has not conducted a complete economic analysis of the impact of the project. Lost business on Main Street has not been considered nor the lost multiplier effect of sales circulating over and over within the local economy. The developer has announced his intentions of engaging corporate “box” stores and national/international hotel and assisted living chains.
July 4 Parade Handout
NO FREE LUNCH FOR GLOUCESTER CROSSING
It’s a fact. Gloucester businesses
Don’t get state subsidies
Don’t get tax breaks
Don’t get free water and sewer systems.
Why should Gloucester Crossing get Millions of Dollars in your tax dollars to pay for its “free lunch”? It’s not fair.
Heed your head. Trust your gut. There’s no such thing as a “free lunch.”
http://nofreelunchforgloucestercrossing.blogspot.com/
Gloucester Crossing is a private shopping mall under construction at Blackburn Circle, already awarded millions in state and local subsidies, tax breaks and give-aways.
It’s a fact. Gloucester businesses
Don’t get state subsidies
Don’t get tax breaks
Don’t get free water and sewer systems.
Why should Gloucester Crossing get Millions of Dollars in your tax dollars to pay for its “free lunch”? It’s not fair.
Heed your head. Trust your gut. There’s no such thing as a “free lunch.”
http://nofreelunchforgloucestercrossing.blogspot.com/
Gloucester Crossing is a private shopping mall under construction at Blackburn Circle, already awarded millions in state and local subsidies, tax breaks and give-aways.
Subscribe to:
Posts (Atom)