Council hears annual TIF report and state EDIP changes; committee asks solicitor how city will manage local TIF approvals

The New Bedford Committee on Finance received the annual report on Tax Increment Financing (TIF), Special Tax Assessments (STA) and tax increment exemptions (TIE), heard updates on project reporting, and discussed recent state changes that move certain approvals and recordkeeping responsibilities to the municipality.

Derek Santos, executive director of the New Bedford Economic Development Council, and Ramon Silva (city economic development staff) briefed the committee on the annual TIF/EDIP report and on recent changes from the state Economic Assistance Coordinating Council (EACC) and the Mass. Office of Business Development (MOBD). Silva said the state’s recent statutory and administrative adjustments separate local TIF approvals from the state EDIP (Economic Development Incentive Program) process, meaning local TIF approvals will no longer require follow‑up approval by the EACC and that the city will need to manage TIF agreements and recordkeeping locally going forward. Silva said the state is moving to a portal approach (the business front door) for state incentives while local processes will be managed by the municipality.

Committee members asked for a clear explanation from the solicitor’s office about how the city will record and manage local TIFs now that the state is changing its processes. Councilor Joseph Lopes filed a related motion asking the solicitor to provide an updated standard operating procedure for how TIFs and STAs will be processed; the committee then directed the solicitor’s office to respond and return the response to the Finance Committee for review.

Santos and Ramon also walked the committee through updates to individual projects reported in the annual packet. Notably, the company listed in the report as "Friendly Fruit"/Sidewena on Purchase Street updated its jobs numbers: the agreement listed jobs created to date as 10, and Santos reported the updated number as 46 jobs created; jobs retained remained reported at 351, and jobs held by New Bedford residents by ZIP code were reported as 356. The originally reported capital investment under the agreement was about $10.9 million; Santos said the actual investment reported is approximately $14.6 million.

Committee members asked about projects that have not yet met their job targets. Santos said staff were performing site visits (he noted a scheduled visit with Wynwood Power Systems) and that seasonal hiring cycles can affect January reporting numbers. The committee voted to receive and place the report on file and to table further action in committee; it also approved the related motion to request a solicitor’s memo and to have that memo return to the Finance Committee for further consideration.

The committee emphasized the need for municipal processes and clear legal guidance now that much of the prior state review role will be removed; a councilor said the change could create an "unfunded mandate" if local offices must assume additional duties without state compensation. The solicitor’s office was asked to respond with recommended procedures and a plan for municipal recordkeeping and staffing implications.