Long Term

Industry Growth Catalyst is Major Gap

Sharp Increase in Business Tax Base Growth Needed

John MichitsonAndy Vargas

Melinda Barrett

October 11, 2016

Bottom Line Up Front• Problem:

• Data reveals sharp decline in business tax base growth in last 5 years

• Catalyst for commercial growth Harbor Place underway• Spawning new commercial opportunities downtown

• New consultants in economic development office off and running• Addressing new leads in downtown & industrial parks

• Major gap: catalyst for long term industrial growth • Innovation economy transforming manufacturing quickly

• Hypotheses: Need niche & research/training center in advanced manufacturing• Example research and training centers identified

• Why Haverhill needs leap in business tax base• Address push & pull factors (facilities, great schools, clusters or niche, navigating City Hall, taxes) • Recommendations

Haverhill Commercial, Industrial & Personal Property (CIP) Growth 2016

*Tax Increment Financing (TIF)

IncentiveDelays Tax Benefit

of Recent Development

Commercial & Industrial

Tax Base Growth Small in 2016

Source: City Assessor

Personal Property – 89%

Commercial – 9%

Industrial – 2%

Haverhill Commercial, Industrial & Personal Property (CIP) Growth 2007 -

2016

20072008

20092010

20112012

20132014

20152016

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

CIP TotalPersonal PropertyCommercial and In-dustrial

Commercial & Industrial

Tax Base Growth Declined Sharply in Last Six Years

Source: City Assessor/Mass.Gov

*Tax Increment Financing (TIF)

IncentiveDelays Tax Benefit

of Recent Development

Haverhill CIP Growth vs. Similar Cities

Haverhill

Malden

Methuen

Peabody

Lawrence

Chicopee

Lowell

Taunton

Waltham

0

1000000

2000000

3000000

4000000

5000000

6000000

2012 2013 2014 2015 2016

Commercial & In-dustrial

Tax Base Growth Declined in Last 5 Years vs.

Similar Cities

Source: City Assessor/

Mass.Gov

*Tax Increment Financing (TIF)

IncentiveDelays Tax Benefit

of Recent Development

Harbor Place Commercial Growth Catalyst in Downtown

Domino Effect Started

Downtown

InvestorsSource: Harbor Place Source: Eagle Tribune

New Economic Development Resources 2014• William Pillsbury, Director (One-man band!)

2016• William Pillsbury, Director• Noah Koretz, Planner• Nate Robertson, Economic Dev.• Alison Colby-Campbell, Marketing

Investors

Identifying & Addressing New Leads in Downtown

& Industrial Parks +Developing Marketing

Materials

Source: Eagle Tribune

• Hypotheses: Need niche & research/training center in advanced manufacturing• Examples:

• The Massachusetts Green High Performance Computing Center (MGHPCC) in Holyoke• Factory 2050 at UK’s Sheffield University• Georgia Tech Internet of Things Research Center• Advanced manufacturing workforce development training center, in

conjunction with NECC, HHS, Whittier Vo-Tech, UMASS/Lowell & industry (concept)

Gap: Catalyst for Long Term Industrial Growth

Why Haverhill Needs Leap in Business Tax Base• Meet its long term financial needs • Provide good jobs at every level to reflect our diversity• Turn around our challenging neighborhoods and improve our quality

of life • Provide support and funding needed to

continue improving public education

Fantini Bakery $3M Expansion in Mount Washington NeighborhoodFamily owned since 1902Sources: Fantini Bakery & MB

• Facilities – expansion, growth of company

Push or Pull Factors

• Taxes – rate, breaks, etc.

• Great schools – education for children of employees

• Clusters or niche – collaboration, innovation, productivity

• Navigating City Hall – information, leadership, vision

Addressing Push or Pull Factors

• Facilities – expansion, growth of company

Recommendation: • Zoning review • Master Plan • Information Design & Distribution – What’s available? Why come?

Search engine optimization (SEO)

Addressing Push or Pull Factors

Recommendation:• School Facilities (Capital Improvements) – submitting statement of interests (SOIs)

to MSBA in a timely manner• “The team also recommends that the district develop a long-range facilities plan. Without a

comprehensive long-range capital plan it is not clear to staff or the public what kind of schools students will attend and how suitable they will be for learning.” (Department of Elementary & Secondary Education, Haverhill Accountability Report, 2015)

• Get Data Driven! • “The district does not have an up-to-date, data-driven District Improvement Plan. There is little

evidence of student achievement driving budget decisions, and the two new goals developed for the district do not reflect analysis of current student achievement results.” (DESE)

• Great schools – education for children of employees

Addressing Push or Pull Factors

Recommendation:• Asset mapping – Building on common industries in Haverhill – advanced

manufacturing, food, etc. • Define our story – what is Haverhill’s story, our brand?

• Clusters or niche – collaboration, innovation, productivity

Addressing Push or Pull Factors

Recommendation:• Master Plan!• Redesign of www.HaverhillMA.gov -- this is our city’s front door, perhaps more so

than exiting off 495!• Transparency & Ease of Understanding Data – it should be easy for businesses to

get a high level view of the state of the city, utilizing all the data we collect (ClearGov)• Business Portal – A clear & concise roadmap of what it takes to bring your

businesses to Haverhill/starting a business here.

• Navigating City Hall – information, leadership, vision

Recommendation• Request that Economic Development Director/Team:• Address Push or Pull Factors and associated recommendations• Address niche, value and feasibility of a research/training center in advanced

manufacturing

Thank You