Date post: | 21-Mar-2017 |
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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