Use this search box to find articles that have run in our newspapers over the last several years.

New legislation to give Gateway Cities more tax credits

Date: 3/9/2009

By G. Michael Dobbs

Managing Editor



SPRINGFIELD -- New legislation was announced last week that would give the "Gateway Cities" of the state -- including Chicopee, Holyoke and Springfield -- some additional tools for economic recovery.

The bill would expand the Historic Tax Credit Program to help restore and reuse older buildings by providing unlimited credits in the Gateway Cities; create a new Job Creation Tax Credit to encourage employment growth; provide a Gateway City Housing Credit for new market rate housing; expand the Economic Opportunity Area Tax Credit to property owners on a building leased to a certified project; and offer a new Gateway City Home Ownership Rehabilitation Tax Credit for improvements in existing housing.

The bill is the product of the Gateway Cities Legislative Caucus, which is co-chaired by Sen. Stephen Buoniconti. At the press conference in City Hall, Sen. Michael Knapik, Springfield Mayor Domenic Sarno, Edward Lambert, director of the UMass Dartmouth Urban Initiative, and John Schneider of Mass Inc., joined Buoniconti.

Buoniconti said the bill was the result of trying to answer the question "How can we continue to give Holyoke, Springfield and Chicopee a greater chance for success?"

He said that despite the criteria for being classified as a "Gateway City" -- "none of which is good" -- Buoniconti said these communities "still have economic opportunity."

Other Gateway Cities include Worcester, Pittsfield, Fall River, Lawrence, Lowell, Haverhill, New Bedford and Brockton.

Buoniconti added this is not an east versus west conflict over resources, but rather "Boston versus everything else."

With the state facing decreasing revenues and increasing needs, Buoniconti admitted that this might not be the best time to increase tax credits, but he said these communities "need a shot in the arm."

Buoniconti could not estimate how much tax revenue the credits would represent.

Lambert said this bill represents "smart growth" as it "targets private investments back into older cities."

Knapik said this is a very critical time for urban areas, but "the strengths are still there." Older communities have advantages in their transportation and energy infrastructures as well as the pride of their residents, he explained.

Because there are 23 cities around the Commonwealth that are on the Gateway City list, Knapik believes the bill will receive attention and support in the Legislature.

"Twenty-three communities touches a lot of representatives and senators," Knapik said.