City of Somerville header
File #: 25-1160    Version: 1
Type: Mayor's Request Status: Approved
File created: 6/20/2025 In control: City Council
On agenda: 6/26/2025 Final action: 7/15/2025
Enactment date: 7/10/2025 Enactment #: 219305
Title: Requesting approval of the final Urban Center Housing Tax Increment Financing (UCH-TIF) Agreement for the 299 Broadway project.
Indexes: Finance-Assessing, Finance-Auditing, Finance-Budget, Finance-Grants Development, Finance-Procurement & Contracting Services, Finance-Treasury, SPCD-Economic Development
Code sections: Property/Land Transaction -
Attachments: 1. 299 Broadway UCH-TIF Memo FINAL, 2. Amended and Restated UCH-TIF Agreement - 299 Broadway (6_24_25), 3. REDLINE AGAINST ORIGINAL Amended and Restated UCH-TIF Agreement - 299 Broadway (6_24_25)

Agenda Summary

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Requesting approval of the final Urban Center Housing Tax Increment Financing (UCH-TIF) Agreement for the 299 Broadway project.

 

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Official Text

To the Honorable City Council:

 

The UCH-TIF Agreement approved by the City Council in 2023 for the 299 Broadway project was for a full 100% tax exemption on the increased land value for a twenty year period. This exemption percentage and time period were conditionally approved, with the stipulation that the project team would allow for a second review of their project financing just prior to a building permit issuance to confirm if the full exemption was still needed. The Economic Development Division has concluded their review with Abramson and Associates and found the full UCH-TIF is still merited. A variety of aspects of the project have also changed in the intervening two years and been approved by the Zoning Board of Appeals, including increasing the number of housing units in the project. The project descriptions have been updated in the agreement to reflect the final project.

 

The Mayor respectfully requests that this Council authorize the Mayor to execute an updated UCH-TIF Agreement between the City of Somerville and 299 Broadway Property Owner LLC with a tax exemption of 100% of the tax increment on Lot 1 and Lot 2 of parcels 70-D-5 and 70-D-27 as they are to be subdivided per the Comprehensive Permit application for the project known as 299 Broadway for a term of 20 years subject to additional terms and conditions.

 

Appropriate staff will be available to answer any questions you may have. Thank you for your consideration of this matter.

 

Respectfully,

Katjana Ballantyne, Mayor