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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?
S.C.
Ten past nine on Wednesday morning, nonetheless. Should I try back during business hours?
doubtful. He's got too much invested to just up an leave.
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.
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.
*Let me correct that; siphoning only works if their is more abundance in one of the containers.
'TIF' is another Coded Term meaning; 'Sucking'
And we wonder why there is so little business in Gloucester.
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.
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!!!
I wish the assisted living facility was more of a priority, though.
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.
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?
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.
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!
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.
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.
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.
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.
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.
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.....
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!
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.