We must save our valuable space for commercial development

On March 10, 2016, in Latest News, by The Somerville Times

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By William A. White, Jr., President (At Large)

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

At the last meeting of the Board of Aldermen, I introduced a zoning amendment which would have required that in certain parts of our City designated as critical development areas, any developer who wanted to build more than 3 residential units on a 10,000 square foot lot, would have to split the development between 60% high-end commercial development and  40% residential.  The high-end commercial development would include office, high-tech, bio-tech and research and development buildings.  The critical economic development areas are the area around Union Square by the proposed T stop and the Boynton Yard area, the Brick Bottom area, the Inner Belt area and the area at Assembly Square that has not been built.  It would not apply to any other areas of the City.  It also would not apply to the high end commercial developers who did not propose any residential units.  After discussion, the Board unanimously recognized that commercial development was so important that we agreed to increase the commercial development  requirement to 68%.  All members of the Board signed on as co-sponsors of the proposed zoning amendment.

Some folks may say that why all the fuss about this change?   The City has been talking about new zoning for almost 2 years.  The difference is that this is the first time in recent history that the Board of Aldermen has taken a direct role to preserve our valuable space for economic development.  And this is important for us all.  The Somerville commercial tax rate is about 60% more than the amount that residential property owners pay.  Simply put, that means that the more commercial property there is, the less that our residential homeowners will pay in property taxes.  Also, these types of developments bring good-paying jobs to the community which also spin off even additional economic growth.

All too often, because of the quick and substantial profits that residential developers can make, they can quickly move into desirable areas and outbid other types of developers to acquire land.  Then, these developers come to the City with proposed residential developments, freezing out potential commercial developers.  If this ordinance passes, the City will let everyone know, both property owners and potential developers, that in these critical areas, the City will require at least 68% high-end commercial.  Therefore any residential developer will understand that they must partner with high-end commercial users.  Enactment of this ordinance will send a message to high-end commercial developers that the City welcomes them.  We might even put in an expedited permitting process for these types of developers to let them know that Somerville is serious in wanting them to locate here.

As we look at the City’s financial capital plans going forward, we see large expenditures ahead.  A new high school, repairing our libraries, improving our playing fields, proposed police and fire stations, and major improvements to our antiquated water and sewer systems are in the works.  The payments on the bonds for these improvements will add substantial costs to our regular city budget and to our water and sewer fund.  Without commercial development to pay taxes covering these future expenses, increased property taxes could end up forcing folks, especially seniors and middle and working class homeowners, to sell.  Also, increased taxes would also lead to increased rents, pricing out families and working class residents.  This could have tragic consequences to the nature of our community.  As the alderman who originally introduced the residential home owner exemption that increased the residential exemption from 20% to 30% and then called for the current increase to 35%, I am glad that our residential exemption now saves every Somerville resident homeowner $2,624 per year, the largest in the state.  My fear, however, is that exemption will not be enough given these future expenditures, so we must do more.

I know that the Board will welcome the input of the public on this issue.  Some people have suggested we add hotels, “think tanks,” incubation labs and fabrication facilities to the list of high-end commercial activities.  I am sure the Board will welcome everyone’s thoughts as we deal with this fundamental issue that will affect Somerville’s future for generations to come.

 

6 Responses to “We must save our valuable space for commercial development”

  1. Do says:

    In complete agreement. We need commercial tax base increased dramatically. And with well paying jobs! Don’t see much impact from Assembly Square with low- paying, non-health insured part-time jobs and a huge non-profit that won’t be taxed. Our taxes still going up yearly. Homeowners, especially at our current inflated real estate values/assessments, are shouldering an unfair share. Instead of planning rental housing in Union Square for millennials who will work elsewhere lets build their offices!

  2. A Moore says:

    I have great respect for Bill and have no doubt he will try his hardest to get this accomplished. This way of thinking is way overdue. It has been one of my major complaints about the currant administration. Most of us older folks can remember back when we had a great mix of commercial and residential and how well it worked for the city and the residents. We have been too anti-business here and need to get back on track.

  3. more? says:

    More commercial development with the promise of reduced taxes? How stupid do you think we are? Davis is hopping with customers. Assembly is packed with people at top dollar bars restaurants shops and theaters. And the taxes just keep rising. No more till we see some results

  4. Dear Alderman White, I agree that we need to have commercial development but I want to emphasize how much we also need more quality housing options for people of all backgrounds. I started a petition (https://www.change.org/p/the-city-of-somervillle-petition-for-new-housing-in-union-square) that received 79 signatures so far asking for more housing in Union Square. 60/40 seems reasonable, but only 32% housing does not seem like enough. The cost of living in Somerville is not just driven by the balance of commercial and residential taxes (especially thanks to your efforts to increase the residential exemption, which as you say, saves homeowners thousands per year!). It is driven more by basic supply and demand. Housing prices will skyrocket if demand goes up by 68% from all of the workers who want to live near their new jobs and the new T station, while housing supply increases by only 32%. I fear that having this little housing will artificially inflate the market and accelerate gentrification in the area, which is already a problem.

  5. MarketMan says:

    Megan: I understand your concerns, but the demand for housing is not constant across all of Somerville. So the popular places will likely continue to be popular. The ones ripe for development need to be developed to be interesting, vibrant and a new high-demand area. Part of that includes commercial development not just for high paying office/lab jobs, but also entertainment venues and good quality housing. So while I’m not disagreeing with you, I think the important matter is striking the right balance.

  6. Market Man, thank you for your comment and I agree with you about the need for a balance. Part of the point of my post was that I do not think 68% commercial is the right balance. 60/40 would seem fair. I cannot tell, but from the article, they may “add hotels, “think tanks,” incubation labs and fabrication facilities to the list of high-end commercial activities”. If they are not on the “list”, does that mean they aren’t included in the 68%? Those uses are certainly not residential, so what is the percentage of real residential then – less than 30%? Less than 25%? I think most would agree that is not balanced.