Town Meeting Member, Chair of Precinct 15
Any doubts I may have had about voting “Yes” for a City form of government were dispelled by what happened at the Special Town Meeting on February 28, 2017.
Background
All three articles concerned Tax Incentive Financing (TIFs) for two downtown Framingham developments These TIFS amount to $8.7 million in tax breaks. The purpose of TIFs is to promote housing and commercial development in commercial centers. TIFs are rarely given to apartment buildings with little to no retail like these projects, because they do not create jobs. They are taxed at a lower residential rate and cost the taxpayers money for educating the children who live there.
Community and Economic Development estimated these 2 development would generate 65 students, a tax burden of about $1 million. The estimated yearly tax revenues from them is $1.37 million. In addition to school expenses, they will incur costs for other services such as Fire, Police, Inspectional Services, and the Department of Public Works.
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| Proposed Neighborhood Districts if Framingham becomes a city |
Scant data was given to support the 65-student estimate which I believe is too low. The 467 apartments will include 22 studios, 227 1-bedroom, 186 2-bedroom and 32 3-bedroom units. Unlike the Staples CMU which was proposed for an office park on Route 9, these downtown apartments could appeal to families because of their proximity to transportation, restaurants, parks, churches, the library and schools. If there were no children in the 227 studio and 1-bedroom units and just one child in each of 2 and 3 bedroom units, the number of students could be as high as 218, adding about $3.4 million/year in educational costs, which is more than twice the tax revenue.
TIFs are usually given for the 1-4 years before the apartment are occupied. Ways & Means, the Finance Committee and TMMs expressed concern that the 75 Concord Street TIF is too long - 15 years. Economic Development was unable to negotiate a shorter TIF with the Developer.