By Mayor Joseph A. Curtatone

(The opinions and views expressed in the commentaries of The Somerville News belong solely to the authors of those commentaries and do not reflect the views or opinions of The Somerville News, its staff or publishers.)

Our Board of Aldermen has some fairly momentous decisions to make this month concerning Assembly Square and I wanted to take this space this week to explain what City is attempting to accomplish with this project. It boils down to three things: investment, infrastructure and economic development.

Most people are familiar with the project by now, but the specifics are that Federal Realty Investment Trust (FRIT) is redeveloping 56.2 acres along the Mystic River. The project, when fully built out, will feature 1.75 million square feet of office space, 1.2 million square feet of retail space, 2,100 housing units and a hotel. A new Assembly Square T station, parkland along the Mystic and a brand new street grid are key features as well.

This is a project that I and every member of the Board of Aldermen have worked diligently to bring about.  It is transformational development that should net the City an extra $17 million a year in tax revenues in addition to the thousands of jobs and new public spaces it provides. That is money that can fund better schools, improved public safety, and public works projects throughout our city.

Investment: In order to make this all happen we first have to invest some money. The working plan is for the City to borrow $25 million that will be paid off by future tax revenue from three blocks of the FRIT project. The $17 million in tax revenue I referred to does not count those three blocks. So, we’re taking the tax revenues from part of the project to build the infrastructure needed for the entire project.

And our investment triggers tens of millions federal, state and private investment. When we secure our portion of the funds, all the other parties commit their funds as well. Most immediately the state goes out to bid on the Assembly Square T station, being paid for by a $15 million investment from FRIT and $35 million in state and federal money. If Somerville does not commit its portion of the funding then no one else does either.

Infrastructure: As I mentioned, the City is paying for infrastructure in Assembly Square, not for the T station. That includes the completion of the Assembly Square Drive project, the new street grid in Assembly Square and stormwater drainage.

Simply put, no one is going to construct a building they cannot get to. State money is furnishing the utilities in Assembly Square and, using the same logic, no one is going to construct a building if they cannot turn on the lights or flush a toilet. If you want development, you have to provide developable land. FRIT has spent tens of millions in land acquisition in preparing for this project and it is a fair expectation that the public will provide the basic infrastructure.

Economic Development: Allow me to break some news here. Last week we were visited by bond adjusters from Standard & Poor’s and presented them with our City financial status and our economic development plans. Assembly Square, and the funding mechanism we intend to use to build the infrastructure in Assembly Square, were a critical part of the economic development presentation. After reviewing our numbers and assessing our financial and developmental outlook, Standard & Poor’s decided to upgrade our bond rating to High Grade, High Quality.

What they see is a city with a clear, responsible plan to stimulate economic growth. The commercial development in Assembly Square will take the pressure off of our residential taxpayers to fund City services. Cities like Boston and Cambridge get roughly 35% of their taxes from the commercial sector. Somerville only gets 15%. It is remarkable we accomplish the things we do given the relatively small size of our business tax base.

For Somerville to continue its current momentum, we absolutely must grow our commercial sector. Economic development is crucial to the future vitality of this city. And if we want to see dramatic changes in Union Square, Boynton Yards, Brickbottom and the Inner Belt, then we need to complete what we have started in Assembly Square.

The Aldermen have been asking thoughtful questions, making sure our numbers add up. That is their duty as elected officials and my administration is providing them with the facts they need. All involved understand the deadlines we face.

Obviously this is a big step, not to be taken lightly, but it is investment we must make in the infrastructure we must have to unleash the economic development we most certainly need.