New municipal authority MRDA reports broad interest from towns, eyes first projects this fall

The Municipal Redevelopment Authority (MRDA) told the Appropriations Subcommittee that municipal interest in the authority’s tools has been strong and that the agency expects to begin accepting project funding applications in summer and present its first set of bond-commission requests by fall.

MRDA Executive Director David (MRDA) said the authority, which stood up in July 2024, has spent its start-up months establishing governance, bylaws, bank accounts, policies and staffing. “We spent, you know, 4 or 5 months, getting things up and running, policies and procedures, bylaws, opening bank accounts, hiring lawyers, you know, all the basics,” he told the committee.

Why it matters: MRDA is designed to provide technical assistance, zoning review, permitting help, fiscal impact analyses and project marketing to municipalities that opt in. MRDA’s work explicitly complements — not replaces — municipal economic development capacity, the director said.

What MRDA reported: the agency said it is in conversations with about 35 municipalities, has seven that have already elected to participate, and expects the number to rise to a dozen by March (of the upcoming cycle referenced). MRDA described a four-step process: municipal opt-in, zoning review, a memorandum of understanding with the chief elected official establishing a development district, and then project funding consideration. The authority said it will tailor zoning and technical supports to each municipality’s scale and needs.

Budget and staffing: MRDA reported an initial FY25 appropriation (operating) of $600,000 and said a proposed additional $500,000 would fund incremental staff hiring to reach a team of about four FTE by FY27. MRDA has a $60 million bond authorization of which $59 million remains available; the governor’s proposed FY27 budget would add another $30 million authorization.

Next steps: MRDA expects to begin entertaining project funding this summer and to seek bond commission approvals for projects in the fall. Committee members asked for lists of municipalities in discussions and offered to set up off-line meetings to coordinate on housing and regional projects.

Ending: MRDA told the subcommittee it will continue municipal outreach and asked legislators to refer local governments that want help aligning zoning or assembling projects for state funding.