Agenda Text
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That this Board expresses its understandings with respect to the Assembly Row DIF.
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Official Text
WHEREAS, The Assembly Square District has been designated by this City as a vital economic development area; and
WHEREAS, Since the City began comprehensive development planning in 1999, it has been recognized that an Orange Line T Stop is vital for the development of Assembly Square to its fullest, including the creation of substantial property tax revenue and the creation of jobs; and
WHEREAS, The Commonwealth of Massachusetts has previously stated that it did not intend to fund the construction of a T stop at Assembly Square from state funds; and
WHEREAS, Federal Realty Investment Trust has covenanted to provide the sum of $15 million towards the construction of the T Stop at Assembly Square; and
WHEREAS, Efforts have been made to obtain funding from the federal government to fund the gap in financing the T Stop at Assembly Square; and
WHEREAS, As a result of developments in connection with federal funding, it does not appear that federal funding will become available to construct the T stop in the foreseeable future; and
WHEREAS, The failure to construct a T stop in the foreseeable future could have disastrous consequences for the further development of Assembly Square; and
WHEREAS, The Mayor has informed this Board that the Commonwealth of Massachusetts is prepared to enter into negotiations with the City of Somerville by which the Commonwealth will provide funding for the T Stop at Assembly Square; and
WHEREAS, The Mayor has informed this Board that the Commonwealth of Massachusetts will require the City to make a contribution towards the construction of infrastructure at Assembly Square in order for the Commonwealth to provide the funding for the T Stop; and
WHEREAS, The Commonwealth of Massachusetts has approved development at Assembly Square for the receipt of “I Cubed” funds to help fund the construction of infrastructure; and
WHEREAS, The “I Cubed” funding was based in part on the operation of an IKEA store to provide sales tax revenue and payroll tax revenue to the Commonwealth; and
WHEREAS, IKEA’s construction has been delayed, thereby requiring changes to the relevant “I Cubed” documents; and
WHEREAS, The Mayor has requested this Board of Aldermen to designate 38 acres of Assembly Square as the Assembly Row DIF, as the area where the City will provide the infrastructure contributions to Federal Realty Investment Trust as required by the state to fund the T Stop and for the location of development to replace IKEA in connection with the “I Cubed” funding; NOW THEREFORE BE IT
RESOLVED, That the designation of the Assembly Row DIF does not obligate this Board to approve any bonding required to fund any improvements in the Assembly Row DIF; AND BE IT FURTHER
RESOLVED, That Prior to requesting this Board to approve any bonds for funding the Assembly Row DIF, this Board will be provided with copies of all documents pertaining to the agreement by the Commonwealth to fund the T Stop at Assembly Square and the priority status of the City for the return of funds if federal funds are obtained. Further, this Board will be provided with copies of all amended documents pertaining to the “I Cubed” agreement and funding thereunder; AND BE IT FURTHER
RESOLVED, That in connection with any bond request, this Board will be provided with a development agreement between the City and Federal Realty Investment Trust relating to the obligations of the City and Federal Realty Investment Trust and the funding for the Assembly Row DIF; AND BE IT FURTHER
RESOLVED, That in connection with any bond request, this Board will be provided with a timely economic analysis of the Assembly Row DIF and the development of the remainder of Assembly Row based on the revised “I Cubed” agreement and the funding commitment by the Commonwealth for the T stop, prepared by an independent economic analyst hired by the City in conjunction with the Board of Aldermen; AND BE IT FURTHER
RESOLVED, That upon receipt of any bonding request for the Assembly Row DIF, the Board of Aldermen will strive toward providing an open and public process, including a public hearing.