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2011-09-14CITY OF BEVERLY PUBLIC MEETING MINUTES BOARD OR COMMISSION: Economic and Community Development Council SUBCOMMITTEE: DATE: Wednesday, September 14, 2011 LOCATION: Beverly Public Library — Staff Conference Room MEMBERS PRESENT: Chair Patricia Grimes, Vice Chairman Neil Douglas, Tina Cassidy, Charlene St. Jean, Don Fournier, MEMBERS ABSENT: Bill Howard and Mike Collins OTHERS: Denise Deschamps RECORDER: Eileen Sacco Grimes calls the meeting to order at 5:30 p.m. 1. Approval of Minutes The minutes of the June 15, 2011 meeting were presented for approval. St. Jean: motion to approve the minutes of the ECDC meeting held on June 15, 2011 as amended. Douglas seconds the motion, all in favor. The motion carries 5 -0. Cassidy states that she thinks that Bill Luster may be attending the meeting and suggests that the agenda be taken out of order and that she update the ECDC on the Development Score Card at this time. She also notes that she is expecting a representative of Massachusetts Office of Business Development to attend the meeting as well. 2. Update from Planning Director Tina Cassidy on Development Projects and "Development Scorecard" Aero Manufacturing — Permits in place — construction pending Airport Parcel — P &S with Cicoria Tree Service plant to begin permitting is in process with the Conservation Commission and the Planning Board Beverly Farms Subdivision — Planning Board approvals granted in June /July 2011. Appeals have been filed by the abutter and the applicant. Black Cow — BPM appeal of final permit (CH 91) pending decision imminent ICC Building Expansion — Construction is complete. Lakeshore Avenue Subdivision_ Construction is ongoing. Final ECDC Meeting Minutes 9114111 Meeting Page I of 4 MBTA Garage — Design 60 -% complete — next public meeting in September /October of 2011 MBTA Garage TOD — RFP process by MBTA required for disposition / redevelopment 865 Hale Street — Applications approved by the Planning Board in May 2011 McKay School — City considering market attractiveness for non residential use. 232 -234 Essex Street — No activity since OSRD initial steps in 2009 363 -393 Rantoul Street — Construction ongoing. 1 Michael Road — Construction ongoing. 44 Prince Street — Permits granted in February 2011. 60 -62 Pleasant Street — Planning Board approval granted in September 2011 Cell Signalling — TIF approval process underway; local consideration by Council October 2011. Britton Site Redevelopment — Permit hearings commence in October 2011. 3. Discussion / Recommendation: Tax Increment Financing Plan and Zone — City of Beverly and Cell Signaling Technology, Inc. Scot Butcher and Matthew Curran of Cell Signaling Technology Inc. are present at the meeting. Cassidy explains that Cell Signaling has filed an application with the City for a so- called TIF — Tax Increment Financing Agreement. She notes that this is the second project that they will do in Beverly, noting that they renovated the former Kings Grant property some years ago. Cassidy reports that Mayor Scanlon has reviewed the request and is prepared to recommend approval of it by the City Council. She explains that the proposed TIF agreement is for a 10 year TIF which would result in a 5% tax advantage annually to Cell Signaling. The 5% discount would be taken from the incremental increase in value of the property arising from the $15 -$18 million project. Cassidy explains that the ECDC needs to make a recommendation to the Mayor in support of the proposal so that it can be submitted to the City Council for final approval. Curran addresses the ECDC and explains that Cell Signaling is a spinoff of New England Biolabs. He notes that they currently employ 171 people and with this expansion that could increase to 306. He estimates that employment rises about 10% each year. Final ECDC Meeting Minutes 9114111 Meeting Page 2 of 4 Curran explains that the proposed site for the expansion is on Tozier Road. He notes that the site has been vacant since 2005 and the proposed renovation is estimated at $20 million dollars. He states that they are proposing a full rehabilitation and renovation of the building. Curran also explains that the company would be eligible for the EDIP Program and qualify for State income tax credits. He notes that the regulations changed in 2010 and the state now requires a partnership with the local community to apply for Life Sciences grants. Curran states that this project would result in 100 new high paying positions. He notes that currently 86 employees reside in the Beverly, Salem and Danvers areas. Douglas questions if they would be drawing employees from out of state. Curran explains that they usually attract employees from within Massachusetts. Curran estimates that the City is currently collecting $75,000 in taxes for the site in its present condition. He estimated that the taxes could increase to $225,000 with this project after full build -out. Douglas notes that the City is currently looking at improving access to Routel28 from Tozer Road. Peter Milano of the Massachusetts Office of Business and Development addresses the ECDC and explains that the Cell Signaling proposal is unique in that it is a three -way partnership with the city and the Mass Life Sciences Center. Milano notes that the City of Beverly has used the program well in the past. He explains that any Life Sciences Tax Credits that come from the state would come from Life Sciences Center. Milano notes that assuming that the ECDC recommends that this proposal move on to the City Council the approved application would then go to his office for review and approval by the Massachusetts' Economic Assistance Coordinating Council. Fournier states that we cannot ignore the impact that 100 new jobs would have, noting that the project would be a big revenue stream for the city. He also states that he thinks that the permit revenue would be significant for the City as well. There being no further questions or comments regarding this matter: Fournier: Motion to recommend that the ECDC support the proposed Tax Increment Finance Plan and recommend that the matter be advanced by Mayor Scanlon to the Beverly City Council for approval. St. Jean seconds the motion, all members in favor. The motion carries 5 -0. 3. Discussion: Update on Brimbal Avenue/Route 128 Overpass Improvement Proiect Final ECDC Meeting Minutes 9114111 Meeting Page 3 of 4 (stakeholder meetings, progress toward listing on State's Long Ranee Transportation Plan) Cassidy reports that they are working to get the project on the Transportation Improvement Plan for a state grant to support infrastructure projects that will benefit the state, revenue wise and generate tax revenue. She explains that the state is looking for the kind of revenue that will retire the debt service for the projects. She also notes that she has no experience with the program but it seems to be a way to get the project done if we can make it all fit. Douglas reports that he talked with many of the property owners and they embrace this approach. Douglas explains that they are exploring a new design concept that involve the exchange of state owned land. He notes that the proposal would improve the circulation of traffic enormously. He notes that the Mayor has taken steps with the City's engineer for the project, Jacobs, to improve the functionality of the plan. Douglas reports to the ECDC that Bill Luster has resigned from his position at the Alliance but he does not think that it will affect his ongoing involvement with this project. Cassidy introduces Denise Deschamps noting that she has been assisting the city in gathering information on this project. 5. Next Meeting The next meeting of the ECDC will be held on Wednesday, December 7, 2011 at 5:30 p.m. 6. Adiournment Grimes asks if there is any other business for the Board to conduct at this meeting. There is none. Cassidy: motion to adjourn, seconded by Fournier. All members in favor, motion carries 5 -0. The meeting is adjourned at 6:50 p.m. Final ECDC Meeting Minutes 9114111 Meeting Page 4 of 4