Councillors in favor of tax exemption agreements for Suffolk Downs, Shirley Ave. developments

Advocate Staff Report

REVERE – City councillors struggled with Chief of Planning and Development Tom Skwierawski’s request that they approve Housing Development Incentive Zones and proposed activities at Suffolk Downs and at Green Street/Shirley Avenue and authorize Mayor Patrick Keefe to execute and implement Housing Development Tax Exemption Agreements for housing projects in each zone.

Members of the City Council’s Zoning Subcommittee voted to favorably recommend Skwierawski’s request to the full council despite Zoning Subcommittee Chairman Anthony Zambuto’s warning that it may not be legal. Zambuto said a special permit was already granted for Suffolk Downs. Zambuto did not think the city could return and renegotiate terms. He wanted to keep the request in committee until members could hear a legal opinion from the city solicitor and a financial opinion from the city CFO.

Councillor-at-Large Michelle Kelley also had concerns and questioned why the city would negotiate tax exemptions or tax breaks when no affordable housing would be required at Suffolk Downs.

Kelley also wanted to know how the housing development zones and tax exemptions would affect the anticipated revenue from Suffolk Downs, revenue the city is counting on to pay for the new high school. However, all Skwierawski would say is that the tax breaks would be a catalyst for the next major piece of the Suffolk Downs Development, Portico.

Ward 1 Councillor Joanne McKenna laid out some numbers. According to McKenna, the original tax bill on the Suffolk Downs property was $390,000. It jumped to $4 million after the completion of the new building and the many site improvements. McKenna said it will go up to $5 million a year and all the developers are looking for is a $1 million tax break on the new building. “We’ve spent so much money on crap,” said McKenna. “We’ve spent so much money getting this and getting that.”

McKenna said that if the million dollar tax break is going to push along the biggest and most promising development in the city’s history then it makes sense. “I say we go for it,” she said.

Councillors agreed and voted in favor of Skwierawski’s request, although they first approved an amendment from Councillor-at-Large Juan Pablo Jaramillo that the language be tweaked to read to authorize Mayor Patrick Keefe to negotiate tax exemption agreements, and agreements would be executed and implemented pending the approval of the City Council.