Fairmount Indigo Corridor: Job Attraction and Retention

Fairmount Indigo Corridor: Job Attraction and Retention

Working Group Meeting

November 4, 2015

Agenda

• Introductions

• Context, Outcomes, and Approach

• Current Incentives

• Incentive and Investment Framework

• Next Steps

2

Introductions

• LISC and TACC as conveners

• ICIC as technical advisor

• Working Group

– Drive the development of strategies

– Help advance implementation and application

3

Context

4

Context

• Need for increase in number of local jobs

• Job attraction and retention only one component of comprehensive economic development--this work must align with complimentary efforts

• Process informed by previous studies and ongoing collaborations

5

Context

6

Building Aligning Informing

• FC | Research and Business Recruitment Project (2011)

• BRA | Corridor and Station Area Planning (2012-2015)

• TACC | Pathways to Prosperity (2013)

• TACC | Newmarket Economic Development Study (2013)

• City of Boston’s Small Business Plan

• Neighborhood Innovation District Committee Report

• Fairmount Network Financial Empowerment focus area

• Fairmount Transit Coalition

• EOHED Comprehensive Development Plan

• Economic Development Cabinet Strategic Planning

• FY 2017 budget development (City and Commonwealth)

• Commonwealth’s Economic Assistance Coordinating Council

• Imagine Boston 2030 • DCAMM | “Open for

Business”

Outcomes

• The job attraction and retention strategy targets new and expanded businesses and more quality, household-sustaining jobs for residents:

7

(1) Identification of business incentives and community investments at both the city and state-level

(2) Recommendations for community-driven marketing of the Corridor to businesses that will invest in its residents

(3) Strengthening connections between residents and employers to increase employment opportunities

Approach

• 9-month process including 3 working group meeting

• Incentive strategy developed by pairing WG recommendations, interview feedback, and ICIC’s knowledge of national best practices

• Focus is on practicable solutions

Setting Goals

May-July 2015

Initial strategy Development

July-Nov 2015

Strategy Refinement

Nov-Dec 2015

Finalization & Dissemination

Jan-Feb 2016

8

Approach | Working Group #1

• Initial working group meeting helped refine approach:

9

(1) Reinforcing focus on jobs that provide household-sustaining wages

(2) Narrowing the agenda to the appropriate type and scale of businesses (e.g. support and strengthen existing clusters)

(3) Incentives that pass the “but for” test and are matched with a focus on local hiring

(4) Importance of stewardship and administration of job identification and local hiring

(5) Focus on what is limiting both businesses and residents

(6) Need to build a united front that shows focusing on business and residents can be mutually beneficial

Who we’ve spoken to

10

• Mark Allio, Regional Director, Massachusetts Small Business Development Center, Boston Regional Office

• Seth Anapolle, Vice President, Finance and Accounting, My Grandma’s Coffee Cakes of New England

• Peg Barringer, Director of Economic Development Consulting, Fine Point Associates

• Scott Batey, President, Hyde Park Board of Trade

• Rafael Carbonell, Deputy Director, City of Boston Office of Business Development

• Frank Carpenito, President and CEO, Dancing Deer Baking Co.

• Betsy Cowan, Neighborhood Business Director, Boston Main Streets

• Karilyn Crockett, Director of Economic Policy and Research, City of Boston, Economic Development

• Dick Dalton, Regional Director, Greater Boston, Massachusetts Office of Business Development

• Jeanne DuBois, Strategic Advisor, Dorchester Bay Economic Development Corporation

• Dan DeSantis, Director of Economic Development, Dorchester Bay Economic Development Corporation

• Michael A. Feldman, President and CEO, Feldman Land Surveyors

• Anne Haynes, Director of Transformative Development, MassDevelopment

• Bill Howland, Director of Marketing and Communications, Carney Hospital

• Bob Katz, President, My Grandma’s Coffee Cakes of New England

• Joan Libby, President, CEO, and Owner, Cavalier Coach Trailways

• John Sullivan, President, Accurate Fasteners

• John Marston, Senior Vice President for Commercial Banking, Eastern Bank

• Mike McCarthy, Vice President of Operations, Design Communications

• Joel B. Miller, Principal, Perishable Management Solutions

• Kerry Miller, Director of Membership Services, Massachusetts Restaurant Association

• Reinier Moquete, CEO, Advoqt Technology Group

• Mike Rothschild, President, Newmarket Business Association

• Sue Sullivan, Executive Director, Newmarket Business Association

• Mat Thall, Interim Executive Director, Southwest Boston Community Development Corporation

• Travis Watson, Communications Manager and Senior Organizer, Dudley Square Neighborhood Initiative

• Andy Waxman, Director of Real Estate, Dorchester Bay Economic Development Corporation

Barriers for Business Attraction, Retention, and Expansion

11

Newmarket: • Expectation of higher property

taxes after building rehab • Property owners are reluctant

to sell in the current market • Lack of local amenities creates

difficulties attracting and retaining businesses

• Zoning does not allow for vertical expansion of buildings

Readville: • Lack of political voice

for business community • Lack of planning for

industrial and commercial businesses

• MBTA fare discrepancy at Readville station

Corridor-wide: • High cost of expanding or relocating facilities

compared to surrounding areas • Businesses find it difficult to find and recruit

local employees • Information gap on available properties and

relative operating costs • Preference for owner-occupied properties

Existing Incentives for Business Attraction, Retention, and Expansion

• Incentives focus on targeted businesses and public infrastructure improvements

• Current state and local incentives may be used to address barriers for business attraction, retention, and expansion

• Businesses must meet certain eligibility criteria

12

Newmarket: Barriers for Business Attraction, Retention, and Expansion

• Expectation of higher property taxes after rehabilitating existing buildings

“If I move into Newmarket, I’ll invest $2.5 million into the property for building improvements. I expect my property taxes to increase by $50,000 after the investment in capital.”

-Business looking to move into Newmarket

13

Solution Model Status

Property tax

abatement

New York City

Industrial and

Commercial

Abatement

Program (ICAP)

• Current Massachusetts Investment Tax

Credit (ITC) provides property tax

abatements for manufacturers

• Create a new property tax abatement

program or expand ITC for qualifying

commercial and industrial industries


• Property owners of vacant or underdeveloped land are reluctant to sell to businesses in the current market

“Property owners are not selling. Sellers don’t want to sell because of sellers remorse. They want to hold on to their property and cash out at a higher price.”

-Local expert

14


TBD Land-value tax

in select PA

cities

• Identify the best practices (e.g., a land-

value tax) to encourage real estate owners

to sell vacant or underdeveloped land

Rezone to

preserve

industrial land

Newmarket

Industrial-

Commercial

District

• Core Newmarket Industrial-Commercial

District was rezoned in 2014

• Integrate industrial zoning as part of

Imagine Boston 2030 and Newmarket

planning processes


• Lack of local amenities creates difficulties attracting and retaining businesses (e.g., eating establishments, safety; pleasant outdoor space)

“I’m concerned about the safety of my employees. Some people drive into the office, but I’d be concerned about people walking at night to public transportation.”


“I walked around to see if there was a place for my employees to eat outside. There’s a burrito place, but the area is somewhat shady. There needs to be an active streetscape.”


15

“The biggest obstacle for businesses locating here are the two trash facilities. What can we do to mitigate their externalities?”

-Business in Newmarket


• Lack of local amenities creates difficulties attracting and retaining businesses (e.g., eating establishments, safety; pleasant outdoor space)

16


Examples: • Pilot a food

truck program

• Shuttle to parking lots and MBTA stations

• Odor abatement technology

Examples: • Boston food

trucks in underserved areas

• MASCO - Longwood Medical Area Shuttle

• Identify the primary local amenities needed for attracting and retaining businesses

• Evaluate existing programs and incentives available for businesses to improve local amenities o Vanpooling (e.g. Dept. of Revenue

vanpool credit) • Identify gaps in existing programs and

incentives

Readville: Barriers for Business Attraction, Retention, and Expansion

“We need to build relationships with the new administrations. We could do a better job of building relationships as a community of businesses. The administration could reach out to us without us having to reach in.”

-Readville business

17

• Lack of a political voice to advocate for the Readville business community


Strengthen business advocacy in Readville

Newmarket Business Association

• Assess the capacity of existing Hyde Park business organizations to advocate for Readville businesses

• Expand existing Hyde Park business organizations or establish a new business association for Readville businesses

Readville: Barriers for Business Attraction, Retention, and Expansion

“Now you see communities in Boston that don’t want industrial businesses in their neighborhood. Since Hyde Park is largely residential, I think it would be difficult for an industrial business to locate there.”

-Local expert

18

• Lack of planning for industrial and commercial businesses


Conduct planning study for Readville area

Fairmount Indigo Planning Initiative

• Readville area was included in BRA’s Corridor Advisory Group (2012); not primary focus of HP Strategic Plan (2011)

• Conduct in-depth planning initiative for business attraction, retention, and expansion opportunities in Readville

• Align Readville planning with Imagine Boston 2030 planning process

Corridor-wide: Barriers for Business Attraction, Retention, and Expansion

“I’d like to expand our facilities here, but the cost to purchase the lot next door may be too high. If we can’t expand in Hyde Park, we will have to look outside of Boston.”

-Readville business

19

• High cost of expansion or relocation of facilities compared to surrounding areas

“Other cities are rolling out the red carpet. When we decide where to move, we will need to wrench the numbers. Right now, [City X] is the easy answer.”



20


Low cost financing resources

-- • Utilize inventory of available financing resources for small businesses in the Fairmount Corridor (e.g., DBEDC, BLDC, SBA, Mass Growth Capital, MassDevelopment)

• Improve marketability of existing resources

• Pilot a loan fund for Fairmount Corridor businesses through the BLDC

Tax incentives for job creation & building investment

-- • State job creation and building investment tax credits available through EDIP for qualifying businesses

• Identify best practices to incentivize building investment in Corridor

• High cost of expansion or relocation of facilities compared to surrounding areas


“Most of our employees are from Dorchester, Mattapan and Hyde Park. Since there is not a lot of manufacturing in the area, it is difficult to recruit skilled employees here. We are in a lot thinner market, it’s difficult finding employees without hiring recruiters or relocating.”

-Local food manufacturing business

21

• Businesses find it difficult to find and recruit local employees


Local job coordination with employers

• Somerville First Source Jobs Initiative

• DSNI Kroc Center construction

• Key focus of Fairmount Collaborative • Implement a job connection program to

connect local residents with newly available jobs. Program should: o Maintain a database of local job

seekers and jobs o Close integration of existing

workforce development programs


“What are the alternatives for businesses? What are the comparative costs for a business owner to locating on the South Shore, Route 128, etc.?

-Working Group Meeting #1

22

• Information gap on available properties and relative operating costs


Improved marketing tools for the Fairmount Corridor

-- • BRA assists businesses with finding commercial property; focus is other Boston neighborhoods (e.g. Seaport)

• Market reports available from MassEcon; not neighborhood focused (e.g. Fairmount Corridor)

Comparative Market Report

• Need: Initial WG emphasized need for understanding comparative costs for businesses

• Goal: Assembling and comparing costs for cluster-specific businesses in the Corridor and comparable localities within region

• Key Question(s):

– What information needs to be captured?

23

Commercial & Industrial Parcel Showcase

• Need: Identify and present vacant and underutilized parcels that provide opportunities for appropriate business development

• Goal: Dynamic, limited access showcase tool

• Key Question(s): – How to build off similar

efforts (existing and historical)?

– How to strike a balance between promotion and with concerns over access?

Setting Goals

May-July 2015

Initial strategy Development

July-Nov 2015

Strategy Refinement

Nov-Dec 2015

Finalization & Dissemination

Jan-Feb 2016

Next Steps

• Conveners will synthesize WG feedback

– Follow up: feedback survey, conference calls, website

• Final WG meeting in early 2016. Primary focus:

– Finalizing the strategy

– Detailing implementation approach

25

Fairmount Indigo Corridor: Job Attraction and Retention

Documents

Transcript of Fairmount Indigo Corridor: Job Attraction and Retention