[Mayor Joseph A. Curtatone has accepted the invitation from The Somerville News
for him to post regularly to the site.  We are grateful for his
participation and we look forward to fruitful discussion of city issues
it is sure to inspire.–Editor.]

Lodging study:  Somerville is critical to Boston-area’s growth

By Joseph A. Curtatone

Here in Somerville, we’re on an economic roll. Over the past year, Somerville has seen sharp growth in its commercial real estate tax base – and in the share of tax revenues that come from commercial sources. At the same time, Somerville’s residential properties have held their value remarkably well (down only 1.2 percent) in an otherwise declining market (the statewide decline was 6 percent), all of which means our tax rates went down in most residential categories.

Then there’s Assembly Square, where we’re finally moving ahead with a shared vision for a transit-oriented Smart Growth development that will bring millions in tax revenues, thousands of jobs and more new business activity than Somerville has seen in decades.

Mayor Joseph A. Curtatone

There‚Äôs the state‚Äôs commitment to build the Green Line extension ‚Äì and with Governor Patrick at the helm, it‚Äôs a commitment we can believe in.  There‚Äôs the new plan for Union Square; there‚Äôs new construction and new business activity in Davis Square.

In short, there‚Äôs a lot going on in Somerville ‚Äì and more to come.  I know (how well I know) that everything comes in cycles and nothing lasts forever ‚Äì but right now we‚Äôre enjoying one of the most exciting periods of economic upswing in our city‚Äôs history.

Of course, there will always be people who deny the reality right in front of them ‚Äì and there are always a few people who, for personal or political reasons, will insist on downplaying the city‚Äôs enviable economic position.  Assembly Square and the Green Line haven‚Äôt happened yet, they argue.  The city has to be wary of overextending its finances in the expectation of future growth.    Somerville has dreamed big dreams in the past and sometimes fallen short of fulfilling those dreams.

I have two responses to those doubters.  The first is that they‚Äôre right in thinking that we can‚Äôt take anything for granted and that we have plenty of work to do if we want to live up to our current potential.

The second response is that this upswing is strong, solid – and earning the respect of economists, developers, planners and bond rating agencies throughout our region and beyond.

The latest evidence comes from an analysis of hotel room supply and demand in Somerville over the next ten years.  The study was undertaken for the city by the Pinnacle Advisory Group, the nation‚Äôs preeminent specialists in assessing trends and markets for the lodging industry.  Their conclusion is yet another potent reminder that Somerville has powerful advantages in location, accessibility, quality of life and in the strength of our economic base.

Pinnacle suggests that Somerville is ready to support at least three new hotels: an 80-to-100 room, limited-service hotel along the Route 28 corridor; 100-to-125-room boutique, specialty hotel in Davis Square and, further down the road, another 100-room+ hotel in Union Square.  And all of these would be in addition to Federal Realty‚Äôs long-term plans for a hotel in the new urban village along the Mystic River at Assembly Square.

Why does Pinnacle think the Somerville market is so strong?  They cite multiple factors:
¬∑    We‚Äôre close to Logan
¬∑    Convention bookings for greater Boston are back up and looking solid
¬∑    Office vacancy rates in the Somerville/Boston/Cambridge area are slated to decline as the economy continues to rebound
¬∑    The Green Line is coming
¬∑    We have a plan for commercial and residential revitalization, and it‚Äôs already at work in the Union Square, Inner Belt, and Brickbottom neighborhoods.
¬∑    The North Point development along the Somerville-Cambridge line is increasing the level of commercial activity in both cities, and, of course,
¬∑    Assembly Square is on track to deliver economic benefits that will resonate throughout the area, drawing more visitors and business activity of all kinds.

In short, Somerville is emerging as the place to be for critical development in the metro Boston area.  That creates real challenges for us, since we have to absorb all this new activity and development without losing our traditional strengths: our diversity, our strong sense of neighborhood identity and our entry-level housing market.

Still, it’s infinitely better to have the challenges associated with growth and opportunity than the challenges that come with stagnation and decay.

If we take advantage of the opportunities before us ‚Äì including the opportunities outlined in this new study ‚Äì Somerville will have more choices and more financial security than we‚Äôve seen in decades.  And, if we stay true to our current spirit and values, we can realize those opportunities without sacrificing the character of our neighborhoods or the diversity of our people.

The only option we don’t have is to stand still.