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Gov. Charlie Baker signs an economic development bill into law on Aug. 10, 2016.
(SHIRA SCHOENBERG / THE REPUBLICAN)
BOSTON -- Gov. Charlie Baker on Wednesday signed into law a nearly $1 billion economic development bill, which includes a mix of funding for infrastructure, housing, workforce training, business development and other projects.
"We're all about creating jobs, promoting vitality in communities, helping eliminate blight and creating a better quality of life for all residents of the commonwealth and businesses that operate here," said Secretary of Housing and Economic Development Jay Ash.
The bill includes $500 million over five years for MassWorks, a program started under former Gov. Deval Patrick that gives grants to cities and towns for public infrastructure that promotes economic development.
Baker called MassWorks "an incredibly powerful tool for the commonwealth to use to help local communities and local developers on local projects."
State Rep. Joseph Wagner, D-Chicopee, chairman of the Joint Committee on Economic Development and Emerging Technologies, said the public money leads to enormous private investment. In Chicopee, for example, a $2.6 million grant for water and sewer improvements to rehabilitate an old mill building led to a $55 million project to build 600 new market-rate housing units.
"That's the kind of shot in the arm a targeted investment can make," Wagner said.
Chicopee Mayor Richard Kos said in addition to the MassWorks grant, Chicopee may be able to use other initiatives in the bill, for example to help redevelop brownfields. "It's exciting to have these type of tools as we face the daily problems of running a Gateway City," Kos said.
The bill gives $45 million over three years to a transformative development initiative, which funds significant projects in Gateway Cities, struggling cities that have the potential to anchor their regional economy. It gives the same amount to a program that cleans up contaminated properties for development. Another $15 million over three years would be spent on a new program that pays municipalities to assemble sites to sell to developers.
There is $45 million over three years for a workforce training grant program to pay for equipment for career and technical schools. Several funds target assistance to specific industries -- such as manufacturing, scientific research and digital health care.
Tim Murray, a former Democratic lieutenant governor who is now president and CEO of the Worcester Regional Chamber of Commerce, said the workforce skills training program will expand the pool of talent available to Massachusetts businesses "and create meaningful career paths for young people as well as those seeking to upgrade their skills."
The law includes $109 million to upgrade a shipping terminal in Boston to accommodate larger cargo ships. Another $6.4 million will go toward supporting rural agriculture and providing fresh food in low- and moderate-income communities. Other initiatives relate to tax incentives and zoning to develop housing in targeted locations.
Another new program would provide tax deductions to families who put money into college tuition savings accounts.
"College savings tax incentives open doors for children growing up in low- and middle-income families, as they are proven to encourage families to start saving earlier and more frequently for their children's education," said Richard Doherty, president of the Association of Independent Colleges and Universities in Massachusetts.
There are some changes to state liquor laws, to allow farmers that have wineries or distilleries to both sell and serve alcohol on their premises, and to allow stores that sell alcohol to serve it at in-house cafes.
Lt. Gov. Karyn Polito said provisions of the bill will catalyze private development throughout the state. "Each region has its own special opportunities, and by bringing these public dollars we'll be able to leverage private dollars and drive the economy in all these places," Polito said.
The money in the bill would be borrowed, as is typical for capital projects.
Baker vetoed two sections of the bill. One relates to the creation of "community benefits districts" in which property owners, with city approval, can charge a fee to businesses and individuals within a district to pay for benefits in the district. Similar "business improvement districts" are already part of state law and require businesses to pay taxes to cover area projects. Baker said the community benefit district provision was too broad because it did not provide exemptions for tax-exempt organizations like churches and government buildings and for homeowners who get tax abatements, like the elderly or veterans.
Baker also vetoed a section of the bill that would have given the MetroWest Regional Transit Authority the ability to offer driving classes for people looking to get a commercial license. Baker worried that this would give the RTA an unfair competitive advantage over small businesses.