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Council praises economic-development TIF oversight as office fines contractor for noncompliance
Summary
The council received a semiannual Tax Increment Financing (TIF) and Tax Increment Exemption (TIE) report showing active oversight under Worcester’s Responsible Development Ordinance; staff said $5,000 in fines were issued and some subcontractors were removed from taxpayer-funded projects for noncompliance.
City economic development staff told the Worcester City Council on Sept. 9 that oversight of taxpayer-supported projects under the city’s Responsible Development Ordinance is translating into compliance actions, including a $5,000 civil fine and the removal or debarment of subcontractors from certain projects.
Council members praised the Economic Development Department’s reporting and compliance work. The semiannual report lists several active taxpayer-assisted projects in construction or close to construction, including 274 Franklin St., 1 Chestnut, 204 Main, 17 Pearl and 57 Exchange. The report includes certified-payroll monitoring, local-hire tracking and diversity goals tied to those projects.
Mr. John Dunn (Economic Development) described enforcement tools available in the Responsible Development Ordinance and in specific TIF/TIE agreements, including letters of noncompliance, fines and, when necessary, early termination of incentives. “We do have remedies,” he said, and the department has used progressive sanctions on projects where contractors failed to meet local-hire or compliance requirements.
Council members asked for an expanded appendix in future semiannual reports with detail on citations, fines, corrective plans and the basis for determinations that remove a subcontractor from taxpayer-funded work. The council referred the semiannual report to the Economic Development Committee with a request that city staff provide those additional compliance details.
What happens next: The Economic Development Department will provide a supplemental compliance report and the semiannual TIF/TIE reporting will continue on a regular schedule; the council asked staff to track both workforce and contractor compliance information and to supply details to the Economic Development Committee.
