FinCom Recommends Approval of Westwood Station Articles at Annual Town Meeting

The results of Monday's Finance Commission public hearing are posted on the town website at:

http://townhall.westwood.ma.us/westwood/file/4_26%20fincom%20articles%20voted(2).pdf

Most notably, the I-Cubed article was recommended, by a unanimous vote of FinCom, to be approved. From the report...

Importantly, this warrant article asks the Town not to approve I-Cubed in a final way, but rather to authorize the Selectmen to enter into a final agreement when all other necessary predicates have occurred, including the receipt by the Town of a letter from the Mass. Department of Administration & Finance and the Mass. Department of Revenue detailing their assessment of the projected new state tax revenues and agreeing to the methodology by which new state tax revenues are counted. The FinCom understands that neither the Commonwealth nor the Selectmen would proceed with the I-Cubed financing if these new state tax revenues are not projected by the Department of Revenue to exceed the debt financing costs.

The voting report does not include full discussion of all the articles yet, pending some fact checking and additional research, but FinCom has clearly weighed in on the principal article up for debate on Monday. Additionally, I obtained the following factual clarifications in response to some of the recent criticisms in the comments on this blog.

Strip Mall?
This elevation view shows what is planned in Phase 1. According to the developer, what is proposed is an attractive, high quality precursor to the eventual buildout of a mixed-use, transit oriented smart growth development. In the current configuration, this same 35 Acres contained 800K sq. ft. consisting of Wegmans, Target and approx 10 junior anchors. Today, it's proposed as Target, Wegmans, 6 junior anchors, 15 boutiques (2K – 2.5K sq. ft.) and a couple restaurants.

5% Coupon
One commenter questioned the assumption in the powerpoint slides and revenue model of 5% bonds when other towns are getting 3% or less. Westwood is concerned about the debt service payment on the bond, NOT the return or yield. So, by using 5% on a tax exempt, general obligation government bond, the interest PAYMENT estimate is conservatively high.

Taxes Then and Now
The Development Agreement protected the town on taxes before any buildings were demolished. The town is guaranteed to receive, at a minimum, the base taxes received prior to demolition. That said, the value of the property has increased with the permits. Further, with Phase 1 under construction or open and $55M in new infrastructure in the ground, the surrounding valuations will increase further. Even just dirt piles + permits generate more tax revenue than abandoned factory buildings.

Anglo Irish Bank?
The town's biggest concern is not that they are a partner (which they are not, they are a credit lender who holds the mortgage), but rather that they get out of the way, and allow new developers to recapitalize the project.

What do I think?
I think there are a lot of issues bound up in this that have little to do with the vote at hand and more to do with history and communication. The planning board articles seem a reasonable way to add flexibility to get things done, assuming you want those things done. I-cubed seems a low-risk (to the town) and creative way to pump some money into the project--again, IF you want the project done. The phased approach? I question whether any type of linear plan can work in a changing economy where perhaps the original vision of Westwood Station just doesn't make sense at all anymore. But who knows? What we do know is that on Monday we can vote up or down what you see here:

http://townhall.westwood.ma.us/westwood/file/2010-04-28%20Elevation%20Views.pdf

...which, frankly, looks a lot like "Legacy Place Lite." It might lead to something more someday and in the short term, it's not going to build community, it's not going to be any kind of legitimate transit hub or destination other than by automobile, but it is in the right location to grow if that proves feasible. So my personal position on these articles is essentially an unenthusiastic "yes" for now.