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/
No comments:
Post a Comment