[Adopted 6-7-2011 by Ord. No. 119-2011]
As used in this article, the following terms shall have the
meanings indicated:
The Tax Increment Financing Board established by this article.
Any form of tax exemption established by the commonwealth
which authorizes the City to exempt property or portions thereof from
tax increases, whether now existing or created after the effective
date of this article.
Tax increment financing.
A.
Whenever, under any general or special law, or regulation of any
agency of government, the Council and Mayor authorize the City to
enter into a tax increment financing agreement, the Mayor and Council
President shall appoint a five-member board for the purpose of establishing
the terms of the agreement in accordance with the provisions of this
article and the statutes and regulations of the commonwealth. The
Board shall not be a permanent board but will be appointed to consider,
negotiate and approve the agreement authorized by the Mayor and Council.
B.
The Tax Increment Financing Board shall consist of the Mayor, or
his or her designee, a City Councilor appointed by the Council President,
the Chief Assessor of the City or another member of the Board of Assessors
appointed by the Chief Assessor, and two persons appointed by the
Mayor, one of whom shall be a financial professional and one of whom
shall be a resident of the City who pays real estate taxes. The latter
two mayoral appointees will be appointed subject to confirmation by
the Council. The mayoral appointees shall be designated in his or
her petition to the Council for its approval.
[Amended 6-3-2014 by Ord.
No. 100-2014]
C.
The City shall not enter into a tax incentive agreement unless it
and the project to which it relates are approved by a majority of
the members of the Board in accordance with the statutes and regulations
of the commonwealth and the ordinances of the City.
D.
The agreement shall require the following:
(1)
A time frame within which a specific number of new jobs will be created
within a three-year period from the date the agreement is executed.
(2)
Written reports on a quarterly basis describing the number of jobs
created or retained. These reports shall be given to both the City
Council and Mayor and shall be audited by the Treasurer/Collector.
(3)
Tax increment exemptions from property taxes, under MGL c. 59, § 5,
Clause Fifty-first, for a specified term not to exceed 15 years, except
as otherwise provided in this article, for any parcel of real property
which is located in the TIF zone and for which the agreement is to
be executed with the owner of the real property.
(4)
Specify the level of the exemptions expressed as exemption percentages,
not to exceed 100%, to be used in calculating the exemptions for the
parcel, and for personal property situated on that parcel, as provided
under MGL c. 59, § 5, Clause Fifty-first. The exemption
for each parcel of real property shall be calculated using an adjustment
factor for each fiscal year of the term of the agreement equal to
the product of the inflation factors for each fiscal year since the
parcel first became eligible for an exemption. The inflation factor
for each fiscal year shall be a ratio:
(a)
The numerator of which shall be the total assessed value of
all parcels of commercial and industrial real estate that are assessed
at full and fair cash value for the current fiscal year minus the
new growth adjustment for the current fiscal year attributable to
the commercial and industrial real estate as determined by the Commissioner
of Revenue under MGL c. 59, § 21C(f); and
(b)
The denominator of which shall be the total assessed value for
the preceding fiscal year of all the parcels included in the numerator;
provided, however, that the ratio shall not be less than 1.
(5)
Any standard term or language required by the regulations of the
Massachusetts Housing and Community Department, or any successor department,
whether as currently promulgated or as may from time to time be amended.
E.
The Board shall use the standards of this section as nonbinding guidelines
in establishing TIF exemptions:
[Amended 3-18-2014 by Ord. No. 036-2014]
(1)
If the agreement provides for the creation of 10 jobs or less, it
will be a five-year agreement with an exemption of 25% in the first
year; 25% in the second year; 25% in the third year; 20% in the fourth
year; and 5% in the fifth year.
(2)
If the agreement provides for the creation of 11 to 39 jobs, it will
be a five-year agreement with an exemption of 100% in the first year;
75% in the second year; 50% in the third year; 20% in the fourth year;
and 5% in the fifth year.
(3)
If the agreement provides for the creation of 40 jobs or more, the
agreement may be as negotiated for up to 20 years.
F.
No TIF shall be used for residential construction or acquisition.
