town of plymouth

TOWN OF PLYMOUTHWATER STREET PROMENADE

DISTRICT IMPROVEMENT FINANCING PROJECT

August 8-9, 2018

What does

Plymouth

want to

achieve?

How can

DIF help

accomplish

this?

What are the

next steps for

the Town of

Plymouth?

Purpose of today’s presentation

AGENDA Today’s Objectives:

1. Elected and Community Leader Education

2. Working Meetings with Town Staff

3. Review of Draft Development Program

▪Project Status and Participants

▪Water Street Promenade

▪Using District Improvement Financing for Economic Development

▪Town of Plymouth Proposed DIF Project

▪Next Steps

PROJECT STATUS AND PARTICIPANTS

MassDevelopment

Amanda Chisholm

VP, Real Estate Services

Boston, MA Camoin Associates

Victoria Storrs

Project Manager

Saratoga Springs, NY

Town of Plymouth

Marlene McCollem

Assistant Town

Manager

Plymouth, MA

CAMOIN ASSOCIATES PROJECT FOR MASSDEVELOPMENT

DIF Guide Educational

Webinars

Model

Document

Case Studies Online Tools

Technical

Assistance to

3 Communities

PROJECT SCOPE

TECHNICAL ASSISTANCE

FROM CAMOIN ASSOCIATES

Site Tour and Working Sessions

Town Meeting Process and Adoption

Stakeholder Meeting

Review Projects and Finalize DIF

Program

GOALS FOR THE DISTRICT

WATER STREET PROMENADE

Concept

Status

Link Pilgrim Memorial Park and Town Wharf as recommended in Plymouth Public Space Action Plan

Public review and comment; proposed at Town Meeting but not yet passed

• September and October 2017: many public meetings were held to discuss the Water Street Promenade including:• Board of Selectmen

• Advisory and Finance Committee

• Capital Improvements Committee

• 15 Precinct Caucus Meetings

• October 2017: Town Meeting with extensive debate on Town Meeting floor

• November 2017: Outreach process was repeated

• December 2017: a Special Town Meeting was held to reconsider the project.

PUBLIC PROCESS TO REVIEW WATER STREET PROMENADE

Maximize value of

$67+ million already

invested.

Improve visual and

physical access to

waterfront.

Incorporate historic

and cultural

elements and

enhance visitor

experience.

Create an

environment where

businesses want to

grow and to locate in

areas where the Town

wants to see growth.

Support a healthy

balance between

commercial and

residential tax bases.

High Quality Public Space

Livability and Walkability

Strategic Private Investment

GOALS

PROJECT COMPONENTS

Public Infrastructure

Public SpaceMarine Structures

Roadway

Streetlights

Drainage

Promenade & plazas

Kiosks & graphic

panels

Railings & parapet wall

Boardwalk and

overlooks

Seawall reconstruction

Seawall preservation &

restoration

USING DISTRICT IMPROVEMENT FINANCING

WHAT IS ECONOMIC DEVELOPMENT?

Job stability

and creation

Planning, Organizing, and Acting to Support the Economy

Common End Goals of Economic Development

Tax base

stability and

growth

Improved

infrastructureQuality of life

DIFDEFINED

“DIF” is an economic development tool

▪ Massachusetts General Laws Chapter 40Q

▪ Amended in 2016 to allow local approval without state review

▪ Enables communities to pledge future tax revenues from a designated area to planned economic development projects

▪ Multiple DIF projects are allowed but the area of all DIF Districts combined cannot exceed 25% of community area

▪ Maximum term is 30 years

HOW DIF PAYS FOR ECONOMIC DEVELOPMENT

Communicates that a

district is targeted for

growth, and states a

community’s goals

Attracts new private

investment by

improving the district

with infrastructure,

and initiatives such

as workforce training

Captures new tax

revenues from the

New Growth and

makes them available

to fund the projects

that drive growth

DIF IS… An economic development financing tool that uses development to pay for

investment - it directs a portion of future property tax revenues from growth in a

district toward projects that benefit the same district

A locally-designed and locally-approved tool that can be used in one or several

parts of the community

A tool that plays well with others – it can be combined with grants, public/private

partnerships, and borrowing

A clear signal that the community is serious about investment in the district and

economic development

A written plan of action and expectations

DIF IS NOT… A new tax, a tax rate increase, or a special assessment on top of the existing

property tax

A guaranteed revenue stream – New Growth must occur in the District

A reduction in money flowing into the General Fund – only revenues on New

Growth are captured

Required to be approved by the Economic Assistance Coordinating Council – that

provision was eliminated in 2016

A method to provide direct incentives to private entities, but it can be

complemented by the use of such tools

HOW DIF GENERATES AND CAPTURES REVENUEOriginal Assessed Value (OAV): $3 million

Property Taxes Paid on OAV: $59,850

($3 million X tax rate at 19.95 per $1,000 of value)

Available to General Fund: $59,850

Assessed Value (AV) of New Growth: $10 million

New Growth Addition to Levy in Year 1: $199,500 ($10 million x prior year tax rate of 19.95)

$997,500 of Cumulative New Growth Addition to Levy with DIF, by Year 5

(assumes no other New Growth or tax rate changes)

DIFREVENUECAPTURED

TYPES OF INVESTMENTEligible Public Project Costs

Capital & Workforce Investment

Land & LeasingDIF Creation & Administration

• Capital costs of public

works in the district

• Water and sewer projects

necessary for the district

even if located outside

• Workforce training

• Financing costs

• Land acquisition

• “Real property assembly”

if community incurs a

deficit on a sale or lease

of property

• Relocation costs for

occupants of a

condemned parcel

• Community costs to create

and administer the DIF

• Professional services and

studies including

environmental impact,

planning

• “Improvement costs” such

as public safety, advertising,

public events, education,

commercial activities

DIF

DISTRICT

&

INVESTED

REVENUE

DISTRICT (IRD)

Each District Establishes the “Where”

▪ DIF District where projects will be implemented

▪ IRD where the Tax Increment will be captured to fund DIF District projects

▪ IRD does not need to include entire DIF District but must be within it

DEVELOPMENT PROGRAM

&

INVESTED

REVENUE

DISTRICT

DEVELOPMENT

PROGRAM

(IRDDP)

What you’re doing and how you’re paying

▪ Development Program lays out the plan to create projects in the DIF District goals, projects, broad financial plan, operation & maintenance

▪ IRDDP adds a more detailed financial plan, with revenue estimates, debt expectations, & impacts on other jurisdictions (if any)

▪ IRDDP should be a component of your Development Program

WATER STREET

DIF

PROJECT STATUS

COMPLETED▪ Identification of goals for public

infrastructure projects

▪ Project list and estimated costs

▪ Town staff familiar with DIF as a tool for economic development

▪ Draft document framing purpose and plans, and meeting statutory requirements, created

MEETING GOALS▪ Review Water Street Promenade

planning and goals

▪ Familiarize community members and elected leaders with DIF as a tool to achieve the Town’s goals

▪ Present next steps for DIF creation and adoption

WATER STREET

DIF REPORT

GOALS

&

PURPOSE

A single report centralizes information for elected leaders, business, and community:

▪ Tells the reader about your community and why DIF is an effective tool for your goals

▪ Provides essential information about goals and projects

▪ Presents estimates of revenue expectations and capital plans

▪ Explains what DIF is designed to do and how it works, including the local adoption process

▪ Attaches or references overall community strategic economic development plans/reports

DIF REPORT COMPONENTSD

evelo

pm

en

t D

istr

ict

an

d IR

D • District boundary and

description

• Assessed value and

use of parcels

• Identification of

parcels that will

generate Tax

Increment (may be all

or a subset)

Develo

pm

en

t P

lan

an

d IR

DD

P • Statement of means

and objectives (goals)

• Project narrative, list,

and costs

• Financial Plan with

revenue estimates

• Operation and

Management Plan

Co

mm

un

ity C

on

text

an

d A

do

pti

on • About the community

and why/how DIF will

implement your goals

• Description of

legislative action to

adopt and supporting

documents

• Assessor’s

certification of parcel

values

NEXT STEPS▪ Review and refine capital plan

▪ Create final revenue estimates and calculate desired tax increment capture percentage to fund capital plan

▪ Finalize the DIF District boundaries and Development Program for the Water Street DIF District and Development Program Report

▪ Town Meeting process to adopt final Water Street DIF District and Development Program Report

8/14/2018 2929

FINANCIAL PLAN DETAILS

FINANCIAL PLAN ELEMENTS

▪ Boundaries and parcels that will have a Tax

Increment captured based on New Growth

▪ Can be the entire DIF District or a smaller portion

▪ Must have Original Assessed Value as of Base

Date certified by the assessor

• Base Date defined as the last assessment

date prior to the creation of the IRD

• Base Date will always be January 1

Invested Revenue District

Capital Plan

▪ Cost estimates for projects in the Development

Program

▪ Amount and type of indebtedness to be incurred that

will have DIF Revenues pledged toward repayment:

General Obligation or Special Obligation Bonds

▪ Other anticipated sources of capital such as grants,

pay-as-you-go


Estimated tax revenues

▪ Estimated tax revenues to be derived from the IRD

▪ Projection of tax revenues that would be derived from

the IRD if no Development Program were implemented

▪ Statement of the percentage of the tax increment to be

captured – can be a specific percentage (e.g. 75%) or a

formula for determining the percentage

▪ Statement of the estimated impact on all taxing

jurisdictions in the district


Management of Funds

▪ DIF Statute lays out a flow of funds for Tax Increment

Revenues (DIF Revenues) – include it to tell readers

about the priority of claims on DIF Revenue

▪ DIF Advisory Committee or ongoing management

team should have the necessary expertise to calculate

revenue and manage accounts – describe members

and processes

➢ Annually – DIF Statute requires that the assessor certify

the amount of New Growth and the Tax Increment

➢ Annually – DIF Statute requires that excess revenue be

returned to the General Fund


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