If you think the future of our town, your neighbor’s financial well-being, your quality of life and the environmental impact of Sysco building in Lakeville is off set by the money the town will receive, then let’s take a good look at the money.
An analysis of what Selectmen Nancy Yeatts called a “once in a lifetime opportunity” reveals the true bottom line financial benefit to the Town of Lakeville from the Sysco proposal.
Breathe deep, strap yourself in…here we go! Let’s start at the beginning…
The TIF give-a-way…New “estimated tax revenue” based on the spread sheet developed and provided for the TIF proposal totals $4,319,095 in new tax revenue to Lakeville over the 13 year agreement. This would start in 2012 and go through the year 2025…That’s an average of $332,238 per year in tax revenue. Less than 2% of our current budget.
Keep in mind that this agreement is front end loaded, meaning that the first years produce the lowest return to the town. The result of this for the first 5 or 6 years could actually put he town in a negative cash situation if cost of support services exceed the small tax payment. This money will go to police, fire and municipal services. Our Public Safety budgets will have to increase to support the negative impact and activity that SYSCO would bring. The end result will be a zero net gain. None of this money will find its way into the classroom. We know in speaking to Public Safety officials in Freetown about the affect Stop & Shop has had on their police, ambulance and fire departments that these added services and costs are significant, contrary to what you may have been told.
On the other side of the TIF math equation let’s look at what was given away. A 43% discount off the 6th lowest tax rate in the 47 communities in Bristol and Plymouth counties. Sysco would pay a property tax rate of $5.83 per thousand, which is absolutely unparalleled.
In addition, Sysco would enjoy a 100% Personal Property discount on an estimated $10,000,000 spend.
These two items total an estimated savings to Sysco of $3,349,605!
As a point of comparison, Sysco paid $280,000. in property tax to the Town of Norton this year. Based on the TIF spreadsheet it won’t be until the year 2022 that Lakeville will collect in excess of that…for a building that would be 34% larger!
That was a good deal!
Those 75 “Lakeville jobs”… Based on the signed TIF agreement with Lakeville, those 75 jobs are to be offered to “qualified residents of Lakeville and the Greater New Bedford Economic Target Area (ETA), within (5)years following the Start Date.” The start date is defined as the date they move into a finished facility. The ETA is made up of eight communities with a population totaling 185,000 people…Lakeville has 9800 residents.
These are not nor have ever been exclusive “Lakeville jobs”, and they don’t have to be filled until 2017.
The Industrial “C” Overlay District and what it will cost…The final proposal for the Overlay District includes five lots along Main Street in addition to the Hospital property. These were added at the request of Sysco, although they refuse to explain what they intend to use them for; they suggest possible waste water treatment site or possible expansion of some sort (parking lots?).
If Sysco purchased these properties they would effectively remove the possible development opportunity and tax revenue to the Town that these properties might some day bring. Selectman Maksy in meeting minutes from a BOS meeting on April 7, 2010 said, a development like this belongs in an industrial park and doesn’t need valuable road frontage, which is retail frontage…He was correct in April…wonder why he changed his mind?
The Neighboring Property Value Debate… Believe it or not, some would actually have you believe that a 650,000 square foot building in your back yard, 50 feet tall and two football fields long won’t decrease your property value! Those people would also tell you that 150 trucks running, loading and unloading, back up alarms sounding, the smell of diesel fuel 24 hours a day – 6 days a week also won’t decrease your property value!
Well, if you believe that you can stop reading now. However, if you think on some level the 202 homes within ¼ mile of this proposal will lose value, you should realize that you will pay the difference. Quite simply the loss in value, which collectively will be in the tens of millions of dollars, will be spread out over all the taxpayers in town to make up.
In addition, remaining property owners could and will file for tax abatements and their payments to the town will decrease…guess what that means! Bingo, congratulations, you pay again.
Massachusetts Department of Revenue Statistics…We understand that the Lakeville Hospital property should be developed. But development for development sake is dumb. It must be done with foresight and analysis that proves to make economic sense for the Town, not like this proposal.
With increase in CIP (Commercial, Industrial, and Personal Property) percentage of revenue that a community collects we know that the following will happen on a percentage basis:
- Property values will decrease
- Tax rates will increase
- Spending on education will decrease
These analysis and more can be researched on the Massachusetts D.O.R. website.
Opportunity Lost…The town of Lakeville is no different than most towns in America in 2010. The financial hardship that we are facing in our professional and personal life is no different in the public sector. Expenses rise and revenues decline. The economy will eventually recover and we will enjoy better economic times.
If this proposal is allowed to proceed, the opportunity for smart development, responsible growth, in the northern part of Lakeville will be gone…forever.
Vote NO on October 18th…We can do better.
