Developer for proposed mixed-use housing project seeks tax deferment

620-unit/21-story mixed-use proposal includes affordable housing, jobs

By Neil Zolot

The Everett City Council on Monday is planning a special meeting on a proposed development at 380 2nd Street for a 624 unit/21-story mixed-use project – known as The Sofia – currently the site of a long-unused structure. The developers, represented by Scott Brown of Fulton Global Investments, are asking for a Tax Increment Finance (TIF) agreement to defer “tax payments until the building is stabilized” (i.e., occupied at an economically viable level), which he estimates will take 36 months after a 30-month building process. Brown also explained that the building process will generate 1,342 union jobs and 52 full-time positions to operate it afterwards.

He also said it will include 31 affordable units, including 24 reserved for veterans. Three will have rents set at 60% of the Area Median Income (AMI) and four at 80% of the AMI. “Deeply affordable housing is important to a number of people in the city and near and dear to some Councillors,” Brown said.

How “affordable” affordable housing units will be is still an open question. Everett is in an AMI cohort that includes similar communities like Malden and Medford, but dissimilar ones like Lexington, Newton, North Reading and Winchester. The income levels in those affluent communities skew affordability under the AMI above the means of many Everett residents.

“Inclusionary housing is huge for me, but your inclusionary housing is for veterans,” Councillor-at-Large Stephanie Smith reacted. “This is the right thing to do for the city, but I don’t know if it’s the right thing to do now.”

Ward 4 Councillor Holly Garcia asked if the project might be downsized given constituent concern about traffic related to overdevelopment. “It wouldn’t be by us,” Brown answered.

“I know the size scares some people, but this clicks off everything the City Council wants to do,” Ward 3 Councillor Anthony DiPierro offered, referring to affordable housing and jobs.

“I like the concept,” Ward 1 Councillor Wayne Matewsky added. “It’s the first project I know of that will have 100% percent union jobs.”

“We’re all for union jobs, but we want to make sure this is the right project for the city – to make sure it works for the people and our infrastructure can handle this project,” Councillor-at-Large Guerline Alcy Jabouin said.

Other business

An attempt by the City Council to separate the functions of a City Auditor from the Chief Financial Officer was postponed once again. Ward 5 Councillor Robert Van Campen made the motion for postponement pending more information from the Administration. He reported that no one from the Administration attended a Legislative Affairs and Elections Subcommittee meeting before the full Council meeting.

The original motion was simply “to create a separate and distinct position of City Auditor,” but Councillor-at-Large Stephanie Smith objected. “The way it’s presented, the Auditor still reports to the Mayor,” she said. “An Auditor doesn’t report to the Chief Executive or Chief Financial Officer, but to an independent auditing board. It still has the same problem. They serve at the pleasure of the Mayor. That has to be changed. You can’t have an Auditor report to the CEO. It’s unethical. An Auditor is an independent position reporting to an independent authority.”

“There’s a concern we’re not creating true independent oversight,” Van Campen agreed. “I’d like to work with the Administration to get this right. I’m not sure this is the right method.”