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Council hears HDIP proposal for Suffolk Downs and other districts; item sent to zoning committee

Revere City Council · December 16, 2024
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Summary

Planning staff described a Housing Development Incentive Program (HDIP) submission covering Suffolk Downs, Green Street and Shirley Avenue, outlining a local tax increment exemption and a state tax credit; councilors debated potential leverage for affordable units and referred the matter to the zoning subcommittee for deeper review.

City planning staff presented a Housing Development Incentive Program (HDIP) plan that would designate three districts'Suffolk Downs, Green Street and Shirley Avenue'as eligible for local tax-increment exemptions and a state tax-credit program.

Tom Skowronski, who identified himself while presenting the item, described HDIP as a two-part tool: a local option to exempt 10% to 100% of the incremental tax on newly created value for periods of five to 20 years, and a state credit worth up to $2,000,000 or 25% of the value of a housing development. Skowronski said the local tax agreement is required to make projects eligible for the state tax credit, but any specific tax deal would come before the council for separate approval.

Councilors pressed staff on whether the city could extract affordable units from developers in negotiations. Councilor Argenzio asked whether the mayor could negotiate more affordable housing within Suffolk Downs; Skowronski said "theoretically, that could happen" but emphasized negotiations would be project-specific. Councilor Silvestri asked whether the council could stipulate a portion be affordable; staff replied the council would ultimately authorize any tax agreement and the trade-offs would be negotiated.

Some councilors raised revenue concerns tied to the city's financing commitments for the new high school and said large tax breaks might create fiscal pressure. Councilor Zambuto noted legal and historical constraints around the Suffolk Downs project and expressed skepticism about asking for affordability after prior negotiations.

After discussion, the council directed that the HDIP proposal move to the zoning subcommittee for further review and recommended additional analysis of fiscal impacts and affordability leverage before any tax agreements are authorized.

Next steps: HDIP materials will be examined in zoning subcommittee; any proposed local tax agreements would return to the full council for a separate vote.