By Alderman at Large Bill White

(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.)

Last week, The Somerville News incorrectly reported that the Board of Aldermen had voted to fund Assembly Square development and take out a $25 million bond to be paid by future property tax revenues on three parcels at Assembly Square.  Because this is an important financial issue for all Somerville residents, I would like to take this opportunity to explain what actually happened.  Since the City began comprehensive planning for Assembly Square in 1999, everyone has recognized that an Orange Line T Stop is vital to develop Assembly Square to its fullest, which would create good paying jobs and substantial property tax revenue for the City.

For over 10 years, the Commonwealth of Massachusetts had stated that it would not fund the construction of a T stop at Assembly Square.  To finance the construction of that T Stop, the developer, Federal Realty Trust, agreed to provide $15 million and the City looked toward the federal government to provide the remaining funds.  The Board of Aldermen was informed that due to recently announced changes in Congressional funding for district projects, federal funding likely will not be available to construct the T Stop in the foreseeable future.  As a result, the City looked to an alternative to obtain that funding, believing that the failure to construct a T Stop  could have disastrous consequences for the further development of Assembly Square.  The Mayor informed the Board that the State had changed its position and would negotiate with the City of Somerville for the State to provide funding for the T Stop at Assembly Square.  But that funding would come at a cost!  In exchange for funding the T Stop, the State would require the City to make a contribution of $25 million towards the construction of infrastructure at Assembly Square.  The Mayor then requested that the Board designate 38 acres of Assembly Square as a District Improvement Financing (“DIF”) district as part of an application that the City would submit to the State.  If approved by the State, the Assembly Square DIF would be the area where the City could bond $25 million to pay for the infrastructure construction as required by the State to fund the T Stop.  In return, the property tax revenue from developments in the DIF would pay for the cost of the bonds.  At the Board meeting that voted to approve the DIF, I put forward a resolution that was unanimously adopted by the Board that set the following conditions:

1.   The designation of the DIF did not obligate the Board to approve the $25 million bond.

2.   Prior to requesting the Board to approve any bonds for funding the DIF, the Board would be provided with the following items:

(a) copies of all documents pertaining to the agreement by the State to fund the T Stop at Assembly Square.

(b) the development agreement between the City and Federal Realty Trust relating to the obligations of the City and Federal Realty Trust and the funding for the DIF.

(c) an economic analysis of the DIF.

3.   Upon receipt of any bonding request for the DIF, the Board will provide an open and public process, including a public hearing. Needless to say, before any bond is voted on, there will be substantial information provided to the Board and the public will be able to weigh in on whether the investment should be made.

Clearly, there is a lot of work to be done before the Board votes to approve any bonds for Assembly Square.