DISQUS

Gloucester Daily Times: Letter: 'No free lunch' crowd is out to lunch

  • santaslittlehelper · 1 year ago
    What seems to have been neglected here is any mention of moral justice. Are we going to give tax breaks to each and every individual that has invested here? And if not, by what right would such an offer be extended to Parks?

    I'm curious, does anyone have the numbers... How many tax dollars does Gloucester lose out on through the use of
    tax-increment financing, from Main St. and Amelia's to everywhere else? Just think of all the police overtime that could be funded, all the pay raises we could bribe our city workers with, all the children that could get an education since the myriad of taxes hemorrhaged by we workers in the private sector never give them a chance.

    Instead of more tax breaks, which have played a role in leaving Gloucester in the lurch, why does the city not get tough and start demanding full and equal and just tax payments from every business in town? I mean, don't these people care about the children?
  • sc01930 · 1 year ago
    If it was not coming we would still not be getting the taxes....So why not give them "Free Lunch" for a little while. Everything in this letter is absolutely factual and it makes perfect sence to provide insentives to businisses that are willing to move there. And anyone that says that this is going to hurt main street has something wrong with the head because Main street in Gloucester is like bearskin neck in rockport......its for tourists!

    S.C.
  • Dorothy_T · 1 year ago
    If you want numbers, call the mayor's office or assessor's office and get them. It is public information. Why wait to be handed your answers?
  • santaslittlehelper · 1 year ago
    Is it that easy? I'll get back to you on that.
  • coldwaterdiver · 1 year ago
    "dont they care about the children...: HAHAHA< ...oh wait, were you being serious?
  • santaslittlehelper · 1 year ago
    Well I called the mayors office. Answering machine. I called the assessors office. Answering machine.

    Ten past nine on Wednesday morning, nonetheless. Should I try back during business hours?
  • Dorothy_T · 1 year ago
    They are having the Insurance meeting this morning, offices are opening at 10 am. Good thing you noticed the big "breaking news" banner at the top of the page.....
  • Sybil · 1 year ago
    City Hall is open late today (it has been at the top of the GDT on-line page for at least two days) due to the meetings with the union members regarding health care.
  • presterjohn · 1 year ago
    An interesting infomercial, though the waving of 40B (the developers' sledge hammer) could have been a little more veiled to be effective. Are there Gloucester Crossing tee-shirts in preparation? Thank God Mr. Park has chosen Gloucester as the lucky municipality to receive his largesse. See you at the candlelight vigil.
  • funkymonkey · 1 year ago
    presterjohn....do you really think Park's will stop this development if the TIF is not granted? Doubtful....very, very
    doubtful. He's got too much invested to just up an leave.
  • GetYourHandOutOfMyWallet · 1 year ago
    LOL, Presterjohn!
  • Dorothy_T · 1 year ago
    Of course we care about the children. Other cities use TIFs, and yes, I've seen the arguments against them both in Mass. and other states. TIF is a gamble, for sure - you can grant one to a company that goes out of business (as has happened in Gloucester). But until we build our business base, there is no point in raising the business tax base. There isn't enough business to support it, and we would only suceed in driving out "the Little Guy".
    Getting the Commonwealth to agree to allow the city to grant a TIF is a process - the city cannot just grant one on a whim. Gloucester is in the Economic Target Area of Massachussetts (Rowley, for instance, is not). The process is described as a three-way partnership between the state, the municipality and the business.
    "There is a three step process within the program, and each step must receive local approval as well as state approval by the Economic Assistance Coordinating Council (EACC). The EACC is a public-private body compromised of eleven members consisting of “ex officio” members and Governor appointed members. The EACC is responsible for designating Economic Target Areas (ETA), Economic Opportunity Areas (EOA ), and Certified Projects – the three steps in the Economic Development Incentive Program." More information is available at mass.gov.
    So, the city probably could not grant a TIF to every business, but every growing business could apply.
  • santaslittlehelper · 1 year ago
    How about we give "the Little Guy" a chance and level the playing field?

    And that's a nice explanation but I still don't see the moral justice of a TIF being presented. The big picture is lost in the details.
  • Dorothy_T · 1 year ago
    What does "moral justice" have to do with a government process?
  • santaslittlehelper · 1 year ago
    Perhaps because an entire lack of morality in government is what has got us to where we are today. Because morality defines whether a thing is right or wrong according to reality. Is the TIF for Parks right or wrong, and according to who, by what premise?
  • I · 1 year ago
    Do not expect "The Little Guy" to get an invitation to this morning's 'Big Money' banquet.
  • am · 1 year ago
    With all the stores closing across the country this project now makes me nervous. There are so many places closing down stores because nobodys shopping, hopefully Gloucester Crossing will be worthwhile for us. I know Market Basket will be just fine, but its ALL the other stores he has to fill up. What good is a nice shopping plaza that only has 5 or 6 filled storefronts and the rest all empty? Good luck Mr. Parks
  • Dorothy_T · 1 year ago
    That's one of the reasons they are unsure what the tax breaks will be, the taxable value of the project could change dramatically in the next few years (of course, if all goes well, it could go way up!)
  • GetYourHandOutOfMyWallet · 1 year ago
    Not Happy: I very much appreciate your ability to discuss TIFs without resorting to name-calling and put-downs. I don't have time to comment further on this issue, but I did want to thank you for your civility! You give real information and arguments.
  • Huh · 1 year ago
    am, it's a fact that all business’s face challenges with today's economy. However, with the extreme LACK of any competition in this city, any company coming to that mall will most likely get many of the people of this city and Rockport to shop there. And if some of these stores fail, then it is due to bad business management and or prices and another company will replace them. Gloucester has been kept a fishing port for a long time and we've stopped large commercial retail ventures such as this one...from opening here. And YES, I like be a small and close nit community. But, it is now here and we've allowed the city to compete with others (Beverly) we may see other business’s come across the bridge and open some additional doors thus adding jobs and income. I'm not saying that we're going to become Peabody but lets allow our city to open itself to retail business and retail chains if the opportunity’s is there. It means jobs, and taxes for the city.
  • I · 1 year ago
    If Gloucester has a shortage of affordable home now, where the hell is another low-waged work force going to live; 370 Main Street??!!
  • I · 1 year ago
    'TIF' is another Coded Term meaning; 'Siphoning'.

    *Let me correct that; siphoning only works if their is more abundance in one of the containers.

    'TIF' is another Coded Term meaning; 'Sucking'
  • Doug Hill · 1 year ago
    Developing business has become a nightmare; one would think that it was the state and municipality going into business, rather than the capitalist risk-taker. First there is the "mitigation" requirement. Before the risk-taker is allowed to take a chance with his capital he must first "do good deeds" for the municipality -- "invest" in community-oriented projects such as road expansion, assisted living facilities, an hotel -- before he is even allowed to risk his money on his project (not to mention additional "mitigation" extortion from "independent" activists.) Then, because all of these additional costs added by the municipality and others would make the project financially impossible, the municipality agrees to "give back" enough through the contortions of a negotiated TIF to make the project economically viable.

    And we wonder why there is so little business in Gloucester.
  • phantom · 1 year ago
    i agree with Bob Ryan:

    Increase the tax base, cut the services. This will help prevent the wealthy from moving to Gloucester and bring property prices down to where, locals can afford housing. Good progressive thoughts Bob, simple, but something no one in authority has thought of.

    But not many locals in authority anymore is there. Maybe thats why some want the fire and police chiefs positions open to outsiders.

    Gloucester has more than enough capable people to fill those positions.
  • I · 1 year ago
    Bob Ryan must be in a position to be unaffected by a flood of new low paying jobs and lowly paid workers.

    What would Mr. Ryan call someone who does not consider the drawbacks of such a development?

    Remember, this Mall will not be 30 Miles away.

    I suppose one upside to the whole GC concept is that a solid education will not be an employment requirement!!!
  • Dorothy_T · 1 year ago
    Nolie, won't some of the unemployed who already live in Gloucester get those jobs? Do you really anticipate people MOVING to Gloucester to work there?

    I wish the assisted living facility was more of a priority, though.
  • I · 1 year ago
    Yes, of course they will, NH. They can hardly wait for the doors to open. I, for one desire a viable occupational opportunity. I've worked in the Malls and the Hotels. Those are not viable for prosperity. Hotel Maintenance and Housekeeping work can be especially nasty. Truly. But, that's okay - as long as someone else is doing it. Right Carolyn??!!

    I agree the Priority should be given for expansion of assisted living facilities. There is much dignity and importance in providing care for our elders. From the best I can tell, Old Age will be coming to a theater in everybody's neighborhood.
  • funkymonkey · 1 year ago
    Nolie....by most accounts plus the meetings I've attended, it is my understanding that most local elderly will not be able to afford the anticipated assisted-living facility at GC.
  • I · 1 year ago
    Oh, WONDERFUL !

    So we gotta ship in old people with a lot of money?

    Where do we ship our old people? Is there some sort of Voucher / Exchange Program for this? For every one rich old person we import, will we then be allowed to export two or three? Where do they go, E-Z Mini Storage, or something?
  • funkymonkey · 1 year ago
    Nolie...what can I say? I know that Brooksby Village is expensive. Nice...but expensive.
  • I · 1 year ago
    FM, you've really got me thinking. I do not feel people plan well, if at all, for old age. Working people have their focus on 'Retirement' and do not consider what life can be like twenty years hence, when the cost of health care has exhausted all of their money. Generally, not much of anyones experience engrains them with such a notion. We, supposedly, provide for the needs of people at a young age; health, education. Is this society planning to properly care for its elders - or is that being generally omitted from our collective consciousness - as if it will not or can not happen to each and every one of us?

    This subject of this dingy little Mall is consuming nearly all of the intellectual energy of this community's organizers, lately, to where I seriously question that anything else that is important can be given comprehensive thought.
  • funkymonkey · 1 year ago
    Nolie....I'm with you. However, we have traveled to senior communites in Florida and Arizona. They are light years ahead of us in planning, implementing and actually building wonderful retirement communities. These companies have given a tremendous amount of thought to many different issues that seniors face.

    I, for one, (all things being equal when I retire) have decided that I could skip the winters here and head for warmer weather.

    I see seniors really enjoying themselves with all sorts of outdoor activities...and living longer because of it!
  • Dorothy_T · 1 year ago
    Nolie - I was doing a little research (it's what I do!) and found a really interesting data website - http://www.city-data.com/city/Gloucester-Massac...

    According to their charts, the majority of households are making between $30K and $60K. I'm not saying this is good, but perhaps expectations of what is a "good" job are lower for most of the population.
  • I · 1 year ago
    Thanks for the link, NH. - 'the majority earn between 30K & 60K'. I must wonder how many of those folks work outside of Gloucester and I would question how many of those are employed at a Mall or a Hotel. - Of course that is not to imply that most Elder Service providers would receive earnings at or above that range - nor would Agriculture. However, thoughtful comparisons ought to evaluate the added benefit to the quality of life for establishing growth in those more necessary fields of occupation - as opposed to the increasing deficits thereof.
  • Dorothy_T · 1 year ago
    Check out that website - it even lists occupations, broken down by gender.
  • Dorothy_T · 1 year ago
    I was reading the minutes of the public hearing on this, and I am still a little disturbed by the tone of the opponents, and their lack of fact-checking. I've been digging around, looking for places where TIFs have been used (other than Gloucester) and have found other instances where there are no high-paying jobs created and uses other than industrial/manufacturing built. A few good examples: The Arcade at Downtown Framingham (a mixed-use downtown development with residential space), Wedge Hotel Management Group in Chelsea, and in Fitchburg - a TIF granted for a group that will build an indoor waterpark and hotel similar to Coco Key. And, of course, we granted Amelia's a TIF - not really retail, I guess, but I would argue that it is equivalent.
    Of the towns where Market Baskets exist, 18 are in an ETA and eligible to grant a TIF. Only Lowell has at present granted one directly to them. 7 municipalities, including Rowley and Middleton, are not TIF eligible.
    One bright spot for opponents - Bellingham turned down Lowe's request for a TIF, because they had already broken ground before they requested it.
  • GetYourHandOutOfMyWallet · 1 year ago
    NotHappy: Can you address the very low commercial property tax rates in Gloucester compared to surrounding towns? Isn't this a big advantage for us that is already a subsidy of sorts?

    Also, one cannot judge all opponents of TIFs by No Free Lunch's talking points (although I appreciate this group's efforts in some areas). For example, I have no concerns about the salamanders or types of jobs, etc. We all have our own reasons for not believing a TIF is wise.
  • Mike_Mulcahey · 1 year ago
    I can address it. Only 9% of this city is commercial. If you want them to stay you can't lay the majority of the tax burden on them. You want to keep comparing us to Beverly or Newburyport. You can't. Those cities have large commercial areas that balance out the tax burden. Those cities offered tax incentives to attract businesses to them. Go ahead and apply Beverly's tax rate to Gloucester and watch businesses leave in droves.
  • GetYourHandOutOfMyWallet · 1 year ago
    Mr. Mulcahy: I specifically said above that I do not support raising commercial property's taxes relative to residential property, so I'm not sure why you wrote your last sentence.

    Second, you didn't address my question: Can you address the very low commercial property tax rates in Gloucester compared to surrounding towns? Isn't this a big advantage for us that is already a subsidy of sorts?

    You don't have to answer that. Maybe NotHappy will. However, you said you were going to address it and then talked about other things. After all, the Beverly developers who request a TIF are starting at about 16 compared to about 10 in Gloucester.
  • GetYourHandOutOfMyWallet · 1 year ago
    Correction, Mr. Mulcahy: I stated that I don't support raising commercial property's tax burden in another post. I thought I had written it above.
  • Dorothy_T · 1 year ago
    That's going to take a bit of work to do right. I'll get back to you on that...
  • Dorothy_T · 1 year ago
    Okay, GYHOOMW - first glance, Beverly (I combined commercial/industrial for convenience):
    Gloucester's commercial rate: 9.7 (630 parcels)
    Beverly's commercial rate: 18.47 (531 parcels)
    Gloucesters' residential rate: 9.1 (Single family parcels: 7,147 -average value $510,540)
    Beverly's residential rate: 10.4 (Single family parcels: 8,352 - average value $456,848)
    Gloucester commercial property assessed value: $449,562,435
    Beverly commercial property assessed value: $662,017,705
    Gloucester commercial tax levy: $4,360,756
    Beverly commercial tax levy: $12,227,467
    Total of all tax levy income for Gloucester: $94,354,903
    Total of all tax levy income for Beverly: $112,474,667
    Surprisingly, Beverly taxes open space (Gloucester doesn't). The difference in tax income, despite the higher commercial and residential rates - "only" $18,119,764. This includes the state aid ($13,181,820 for Gloucester, $17,676,851 for Beverly) and other line items you can see at the Mass DOR Municipal Data at-a-glance.

    You'll have to draw your own conclusions on this one.
  • Mike_Mulcahey · 1 year ago
    the conclusion is even though Beverly only is twice the developed space, it's what the did with it. I work in Beverly and I see the companies that have moved in there and they National and Global companies. This city has a handful which doesn't cut it.
  • Dorothy_T · 1 year ago
    I don't see where you get Beverly is twice the developed space - they have a smaller area (22.7 square miles with 6.1 water opposed to 41.5 sq miles with 15.5 water) with more parcels.
  • Dorothy_T · 1 year ago
    Let's add in Newburyport, which has some financial issues also:
    Gloucester's commercial rate: 9.7 (630 parcels)
    Newburyport commercial rate: 10.13 (625 parcels)
    Gloucesters' residential rate: 9.1 (Single family parcels: 7,147 -average value $510,540)
    Newburyport residential rate: 10.13 (Single family parcels: 4,266- average value $486,986)
    Gloucester commercial property assessed value: $449,562,435
    Newburyport commercial property assessed value: $454,788,761
    Gloucester commercial tax levy: $4,360,756
    Newburyport commercial tax levy: $4,607,010
    Total of all tax levy income for Gloucester: $94,354,903
    Total of all tax levy income for Newburyport: $60,360,481
    Newburyport also taxes open space.The difference in tax income, despite the higher commercial and residential rates - negative $33,994,422. This includes the state aid ($13,181,820 for Gloucester, $8,530,329 for Newburyport).
    And yet, they look so prosperus.....
  • GetYourHandOutOfMyWallet · 1 year ago
    Thank you very much, NotHappy. It is my understanding that Gloucester's commercial rate is far lower than that for most surrounding towns, based on a post from ME a couple of months ago. I Googled Beverly and got just over 16. It's gone up.
  • Dorothy_T · 1 year ago
    Beverly's rate on Mass.gov is is 18.47 - and their residential is higher than ours as well. That seems to be the trend - we have lower commercial rates, but they have higher residential rates. With the exception of Peabody, which has a residential tax rate of 8.67 but receives $29 million plus in state aid. Talk about getting the breaks! Better geographical location, lower residential tax rates, plenty of state aid on tap....
  • Dorothy_T · 1 year ago
    Okay, low commercial property tax rates - you can't look at them in a vacuum:
    Gloucester - lower commercial rate than the surrounding towns (with the exception of Manchester and Rockport)
    Total tax levy in Gloucester is carrying 55.95% of the revenue burden in town, with the lowest residential rate except for Manchester, Rockport and Peabody (Peabody has the lowest burden at 52.97%, Manchester is the highest at 73.35%)
    Peabody receives $29.6 million in state aid (20.64% of their total revenue), Salem gets $28.33 (23.46%) and Gloucester gets $13.2 (13.97%)
    Gloucester, for 2008, is showing 2,026 parcels vacant. Rockport has 562 - there is no-one in between. Look at all that lovely open space. Let's buy some more.

    My guess is that to compete with our cousins up the road, we need to have a lower tax rate - but if it won't drive what little business we have left out we should be charging more, NOT leveling the playing field as some have urged.

    The city should find some parcels and go down on their knees and BEG some company to locate a facility here - gonna be a neat trick in this economy!

    And, we should be finding out why Peabody is getting such a big slice of the state pie, when they have a commercial/industrial base that blows EVERYONE else in the area totally out of the water!
  • GetYourHandOutOfMyWallet · 1 year ago
    NotHappy: Thanks for all the great information. ME's statistics indicated that in surrounding towns, including Beverly, the residential rate was about half the Commercial rate, but your statistics are different.

    The city can't just find some parcels, can it? They would be owned by someone and therefore not under the control of the city.

    This is what big, bloated, wasteful, special-interest-driven government has given us. Government at all levels spends much of its time plotting how to get more money to keep itself in the style to which it has become accustomed.

    We can't increase the commercial tax load at this time. I think that Gloucester should at least acknowledge its strengths and stop seeming so desperate for development. They should pretend they are all Donald Trump and negotiate to get the best deal for the people of Gloucester, their employers.
  • Dorothy_T · 1 year ago
    You're right, it wouldn't be the city, would it. I should amend that to "someone in the city" - the EDIC, perhaps?
  • GetYourHandOutOfMyWallet · 1 year ago
    Not Happy: Can you clarify the above answer? I'm not clear what you are suggesting.
  • glostaman · 1 year ago
    Moral Justice. Here come the moral police. Get real!
  • Sybil · 1 year ago
    Ha ha. I'll bet you like the "values" police too glostaman.
  • cowgirlshirl · 1 year ago
    ........Moral Compass.....