The Honorable Joseph F. Wagner, House Chair
The Honorable Gale D. Candaras, Senate Chair
Joint Committee on Economic Development and Emerging Technologies
State House, Boston
 
Dear Chairman Wagner and Chairman Candaras,
 
On behalf of the cities and towns of the Commonwealth, the Massachusetts Municipal Association is writing to offer our support for several local policy initiatives included in the economic development bill filed by Governor Deval Patrick in H. 4045, An Act to Promote Growth and Opportunity. This bill received a unanimous vote of support from the MMA’s Municipal and Regional Administration Policy Committee, and we respectfully request the inclusion of several of its key components, listed below, in the comprehensive economic development bills expected in the House and Senate this spring. As you know, the economy of Massachusetts is only as strong as the economies of its cities and towns, and we appreciate your work and ongoing partnership to craft legislation that helps realize the economic potential of all communities across the Commonwealth.
 
Local Control of Liquor Licenses
One of the most important components of H. 4045 is the provision to remove the statutory limitations on the number of liquor licenses that a local liquor licensing authority can issue. Under current law, a municipality that has reached its statutory cap on liquor licenses may issue no additional liquor licenses without going through a home rule petition process and enactment of special legislation by the General Court. This process is time-consuming and cumbersome at both the local and state levels, and often proves incapable of moving swiftly enough to meet local demand.
 
The state-set statutory cap system is inefficient and ineffective, and it hurts economic development planning across the Commonwealth. New liquor license approvals are clearly delayed by the current system, and new restaurants, bars, hotels, or other hospitality-related entities often delay their openings, or open and operate at less than full capacity as they await their licenses. These delays have negative implications beyond the businesses themselves – restaurants play a key role in the revitalization of neighborhoods and increasingly serve as anchor tenants in large-scale retail or mixed-use developments of regional significance, generating tax revenue at the local and state levels. Delays in the liquor license issuance process are bad for business and bad for the local economy.
 
By lifting statutory caps, this bill would allow a municipality, through its local legislative process, to create a plan for the number of liquor licenses that it deems appropriate, eliminating the need for time-consuming home rule petitions. This would give municipalities greater control over local economic development and planning, and allow each community to consider the needs of its residents, workforce, businesses and tourism sector, and establish a plan to meet those needs in the short- and long-term. Local control of liquor licenses is a key priority for local officials and the MMA, and we strongly urge you to include this provision in your comprehensive economic development legislation.
 
Expansion of I-Cubed
The expansion of the I-Cubed (Infrastructure Investment Incentive) program would allow more municipalities to access financing for essential infrastructure projects in support of high-value developments, and we strongly support the Governor’s recommendation. This successful program has proven instrumental to several major municipal development projects. Under current law, a municipality may have no more than three I-Cubed development projects, and the program may expend no more than $250 million on all projects. H. 4045 would raise the number of allowed projects in any municipality to eight, and increase the amount of total allowable program spending to $600 million.
 
Brownfields Redevelopment Fund Recapitalization
Brownfields redevelopment funding continues to drive the environmental cleanup of contaminated land, transforming dangerous, harmful and compromised sites to safe, positive and productive use as part of key redevelopment projects. H. 4045 would add $10 million to the Brownfields Redevelopment Fund, allowing for the remediation of more sites in more municipalities. We ask you to build on the longstanding success of this program, and support this additional capital commitment.
 
Economic Development Incentive Program Changes
Economic Development Incentive Program (EDIP) projects receive tax incentives for job creation, manufacturing job retention, and private investment commitments, promoting business development and employment in cities and towns. Under current law, projects must be located in designated Economic Target Areas (ETAs) or Economic Opportunity Areas (EOAs) in order to qualify for the incentives. However, these designations are outdated and limit state support for projects that would otherwise qualify. H. 4045 would remove the requirement that EDIP projects be located in ETA or EOA areas, thus expanding the reach of the program statewide.
 
Gateway Cities Transformational Development Fund
In order to support large-scale transformative development projects in Gateway Cities, H. 4045 would create a Transformational Development Fund at MassDevelopment, capitalized at $11 million. This Fund would support equity investments and technical assistance, and assist in the creation of collaborative workspaces to jumpstart revitalization and redevelopment efforts in Gateway Cities.
 
Expanded Housing Development Incentive Program
Incentive programs provide important tools to leverage the creation of a vibrant array of housing in many Gateway Cities. H. 4045 would expand the Housing Development Incentive Program (HDIP), offering developers in Gateway Cities tax credits of up to 10 percent for market-rate and mixed-income housing units. In addition, the credits would double from $5 million to $10 million for the next four years, a meaningful increase that would certainly lead to the development of more housing.
 
We know that you are committed and dedicated to building a strong, healthy and thriving Massachusetts economy, and we respectfully ask you to include the key municipally focused initiatives outlined above in your economic development proposals. These measures would bring real growth and opportunity to our cities and towns, and support the residents and businesses of the Commonwealth. If you have any questions, please have your staff contact Catherine Rollins of the MMA staff at (617) 426-7272 at any time.
 
Thank you again for your important work on this legislation to promote economic development, improve our infrastructure, and invest in our communities.
 
Sincerely,
 
Geoffrey C. Beckwith
Executive Director, MMA

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