Bridgewater's Vision to Reality: Let's Talk Benefits of New Development
Benefits of New Development
The foundation of Bridgewater’s Vision to Reality initiative is community and economic revitalization. It includes incentivizing new development on underutilized or vacant sites in and around the Campus Plaza location, and reinvestment within the historic Central Square area. Here are some of the benefits of new development:
Expanded Tax Base
Real estate property taxes are the largest funding source of Town revenue, providing pay for teachers, police, firefighters, public works, and other municipal services. Municipalities also receive funding through what is referred to as local aid, or Chapter 70 education aid, and Unrestricted General Government Aid, which are generally the second largest sources of municipal revenue. Municipalities also derive revenue from portions of meal taxes, motor vehicle excise tax, sales tax, and room tax (hotel). Arguably, the larger the tax base, the smaller percentage of taxes a resident would pay.
New Fees to the Town (building, connection, inspections, and applications)
New development generates a variety of fees to the Town, including fees payable for planning and zoning review and approval, building permit fees, inspection fees, and utility connection fees. Fees that exceed what are anticipated in the annual budget process are available to the Town for a variety of government purposes and services. As an example, building permit fees are calculated at $16 per $1000 of construction costs. Conservatively, if Bridgewater was to see full build out of the sites it has identified as underutilized the Town would potentially receive $1,600,000 in building permit fees in the next five years.
MBTA Communities
Bridgewater is one of 175 cities and towns considered to be an MBTA Community, which requires the Town to have a zoning district within a ½ mile radius of a commuter rail station and allow for a minimum of 1401 units of new housing. Relocation of the existing MBTA station to the Spring Street lot (in proximity to Campus Plaza and other underutilized sites) will allow the Town to meet its state mandated compliance requirements and make the Town eligible for state and federal funding to improve infrastructure, including water, wastewater, roadways, and other public improvements.
Urban Center Housing Tax Increment Financing
This program authorizes cities and towns to promote housing and commercial development, including mixed-income housing, in commercial centers through tax increment financing. Tax increment financing (TIF) is a financial tool used by local governments to fund economic development with the revenue generated by new development. It is the “but-for test,” i.e. but for the new development, you would not have access to revenue the development generates.
Revised Zoning Ordinances & Adoption of a Form Based Code
As required by the MBTA Communities legislation, the Town, through funding from the Executive Office of Housing & Livable Communities, has retained consultants to assist in rewriting our current zoning ordinances. The anticipated amendments will allow for higher density development at certain locations, will revise parking requirements, and allow for a mix of uses within a building. A component of the revised amendments is the adoption of a Form Based Code (FBC). FBC is an alternative zoning district that allows for the regulation of development that helps a community realize its vision for a specific area. FBC clearly defines requirements for building heights, building, parking placement, and architectural features, as well as standards for sidewalks, street trees, and public spaces. Importantly, by following the FBC, developers realize financial incentives by experiencing a faster and more streamlined approval process.
An additional benefit to the community is a process for new development, which includes a more predictable outcome due to form-driven zoning requirements.
In Summary
The Town of Bridgewater will fulfill its obligations under state law and incentivize new development through the tool of zoning. This process allows for additional revenue to the Town through expansion of the tax base and new fees making the Town eligible for state and federal funding which can be utilized for infrastructure and roadway improvements and concentrates development on existing underutilized sites which have access to existing infrastructure while allowing for development at a scale that is appropriate for the area it is located. The Town is facilitating a way forward for this new development—it is not developing these sites, and most importantly, it is not using any current or future Town funds to accomplish these goals.