Lawmakers debate bill giving developers new powers
By Scott Van Voorhis | Wednesday, February 13, 2008 |
http://www.bostonherald.com | Real Estate
Real estate developers could run their own mini-cities, taking land and levying taxes, under a controversial proposal set for debate today at the State House.
Builders, with the help of newly created development districts, could raise hundreds of millions by issuing tax-exempt bonds and even force other property owners to give up land for their plans.
Critics contend the proposal would create a bunch of new, developer-controlled mini-cities, armed with extensive powers and even their own municipal seals.
?They operate like feudal fiefdoms,? said Shirley Kressel, head of the Alliance of Boston Neighborhoods. ?They are property ownership-based powers. They are not democratically elected.?
Supporters argue such development districts are needed to help builders foot the bill for expensive road and utility work when undertaking major projects.
?I don?t see this as a separate form of government,? said state Rep. Lida Harkins, the bill?s main sponsor. ?I see it as a financing tool and a way for communities to invest in a project that may be beneficial.?
But it?s not just the power to issue bonds and raise money like a city government that angers critics. Such districts would also have the power to effectively take private property, Kressel contends.
The new bill actually gives principals in the district power to purchase or acquire private land both inside - and outside - the development zone itself and equates the district with a municipal agency.
A previous version of the bill, defeated two years ago, gave the districts explicit eminent domain powers. The latest version does not specifically mention those two words, but would still allow developers to build on any land in their district, even if they don?t own it, Kressel said.
Harkins said the new bill would require that the development districts get board of selectman or town meeting approval. But she admitted that only 80 percent of property owners need to approve the district.
?Still, there?s no easy way to do this,? Harkins said. ?It would have to go through all the local processes.?
Jay Doherty, developer of the $3 billion Westwood Station project off Route 128, said he has not taken a formal position on the bill, though he would certainly consider taking advantage of some aspects of it, if it passes. His development team is footing the bill for $140 million in infrastructure work.
But he acknowledged the concerns of critics, including the fear it could lead to unwarranted land takings. One way to ease that concern would be to limit such districts to land controlled by the developer in question.
?The problem in this state is that we have a massive deficiency in infrastructure,? Doherty said. ?You can?t have job growth without renewing or rebuilding infrastructure.?
Despite the controversy, Harkins said she expects the bill to be passed later this year.
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