Chelsea, Massachusetts, November 5,2007

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Chelsea, Massachusetts, November 5,2007 Powered By Docstoc
					                                   Chelsea, Massachusetts, November 5, 2007

A Regular meeting of the Chelsea City Council was held. The meeting was held at the
Chelsea City Hall located at 500 Broadway, Chelsea. The following members of the
Chelsea City Council were present: Councilors Troisi, Bongiovanni, Hatleberg,
Robinson, Nowicki, Barton, Vega-Torres, Brown, MeKonnen, and Avellaneda.
Councillor Morgese arrived at 7:10 P.M. Councillor Bongiovanni President of the City
Council presided over the meeting. The meeting opened at 7:00 P.M.

The Public Hearing regarding the Mininum Residential Tax Factor, Classification, The
Residential Exemption and their effect on the Fiscal Year 2008 tax rates was opened to
the public for comments at 7:03 P.M. by Council President Bongiovanni.

The following came forward:

Henry Lea 105 Franklin Avenue spoke on the proposals.

The public hearing portion closed at 7:10 P.M.

The public speaking portion opened to the public at 7:11 P.M.

The following came forward to speak:

Richard Gurska, 74 Library Street, spoke on traffic problems throughout the city. Traffic
lights not working properly.

Henry Lea, 105 Franklin Avenue, spoke about the Council’s last meeting and time
allowed to speak.

The public speaking portion closed at 7:17 P.M.

The minutes of the City Council meeting dated October 22, 2007 were accepted on a
motion by Councillor MeKonnen under suspension.

Communications from the City Manager:

The following communication was received late from City Manager Jay Ash. A motion
from Councillor Hatleberg to have the late communication read was approved under
suspension. A motion from Councillor Troisi to accept and file was adopted under
suspension.
The Honorable Chelsea City Council
City Hall
Chelsea, MA 02150

Dear Honorable Council:

I am pleased to forward to you the enclosed Certified Project Application for Alkermes,
Inc. for the further build-out of the company’s location at 190 Everett Avenue. This
Certified Project Application is consistent with the State’s Economic Development
Incentive Program, which authorizes the use of local property tax relief and the state
income tax relief to encourage economic development. As you know, EDIP is the central
part to our TIRE (Tax Incentive for the Retention and Expansion of Business) Program,
through which the City Council and State have already adopted 27 previous Certified
Project applications.
Are you aware biotechnology is an industry for which all jurisdictions around the country
and the world are seemingly competing. Alkermes has the need for a major expansion,
and, as you would expect of a well-run corporation, company officials undertook an
exhaustive survey of potential locations to determine where the company should invest.
That survey had Chelsea competing with municipalities in other states and in Europe,
with those jurisdictions offering attractive incentives for Alkermes to relocate. Given the
importance Massachusetts has placed on the expansion of biotechnology, the City worked
tirelessly with State business development officials and the leaders of the Massachusetts
Biotech Council to ensure that the combined incentives offered to Alkermes would be
enough to keep the company’s in Chelsea. I am pleased to say that company officials felt
that was the case, and have committed to make that expansion locally.
In discussing that expansion, I suggested to Alkermes that if they could figure out a way
to make that expansion on their current property, we would offer them a tax increment
(TIF) plan that would relieve 100% of the new tax value created over the first 10 years of
their occupancy. (You will recall that the State’s Economic Development Incentive
Program allows tax relief to be offered for a period between 5 and 20 years.) The rational
was obvious; if they did not make that investment on their property, no other investment
would be made there, and thus no additional tax revenues would be produced. Thus, the
C9ity would not be “loosing” anything, and, if Alkermes did chose this option, the City
would be creating substantial value that would be captured after 10 years. I explained to
Alkermes officials that if they choose another Chelsea location we would have to
negotiate a TIF at something less than 100% relief, as any other site they chose would
likely have provided the City with new tax revenues once developed. Thus, the incentive
was strong for them to invest on-site.
The combination of the City offer and commitments from the State for infrastructure
funding resulted in the affirmative Alkermes decision. Since the time of that decision, the
State has approved $4.2 million in infrastructure funding, to date, with additional requests
pending. That infrastructure funding will help meet Alkermes “revenue” contribution to
the City is being captured through spending on better City infrastructure. The enhanced
infrastructures including the construction of a garage in the Everett Avenue Urban
Renewal District, may provide another spin-off benefit by helping the City attract further
investment in the area. Additionally, Alkermes will be paying building permit fees.
The Alkermes project will result in an approximately $60,000,000 investment in tenant
improvements and equipment acquisition at 190 Everett Avenue. This investment will
bring the total investment by Alkermes into the facility to approximately $100,000,000. I
believe the Alkermes presence, which was initially secured by a previous TIF adopted by
the Council in 2000, has provided further momentum to Chelsea’s emergence as a
location worthy of substantial investment. The expansion of Alkermes as facilitated be
the TIF the City is offering is likely to keep that momentum moving forward. In
particular, the 70 jobs to be created by Alkermes through the expansion is great news for
local workers seeking good jobs at good wages, as well as for residential developers who
continue to look at job growth in the region including Chelsea, as a reason to commit to
their own further investment in our community.
Time is of the essence in finalizing the various incentives that will combine to result in
the Alkermes project moving forward. I therefore request your expeditious review and
approval of this Certified Project application. In advance of your action, allow me to
thank you for your leadership on the TIRE Program, and congratulate you for the success
you continue to promote on our overall economic development agenda, of which the
TIRE Program has been instrumental.

Very truly yours,
Jay Ash
City Manager

Communications and petitions to the Council:

A copy of a communication was received from State Senator Anthony D. Galluccio
regarding correspondence from the Department of Housing and Community
Development regarding funding for boiler replacement 667-1 Union Park Development.
A motion from Councillor Robinson to accept and file was adopted under suspension.

A copy of a communication was received from Neighbors Against Blight (N.A.B.) Crime
Watch dated October 20, 2007. A motion from Councillor MeKonnen to accept and file
was adopted under suspension.

A late communication was received from Robert H. Bishop City Clerk/Parking Clerk.
Councillor Robinson moved to accept the late communication and have it read. The
communication was a copy of the Agenda Items from the October 30, 2007 Traffic and
Parking Commission Meeting. Councillor Robinson moved to accept and file under
suspension.

New Business:

The following Order was introduced by Councillor Bongiovanni. A motion from
Councillor Troisi to adopt by roll call passed 11-0-0-0. Voting yes were Councilors
Troisi, Morgese, Bongiovanni, Hatleberg, Robinson, Nowicki, Barton, Vega-Torres,
Brown, MeKonnen, and Avellaneda.
ORDERED, that the City Council hereby accept the 20% “Residential Exemption” for
FY2008 property taxes.
The following Order was introduced by Councillor Bongiovanni. A motion from
Councillor Troisi to adopt by roll call passed 11-0-0-0. Voting yes were Councilors
Troisi, Morgese, Bongiovanni, Hatleberg, Robinson, Nowicki, Barton, Vega-Torres,
Brown, MeKonnen, and Avellaneda.
ORDERED, that the City Council hereby accept the “Minimum Residential Tax
Factor” as recommended by the Board of Assessors for FY2008 property taxes.

The following Order was introduced by Councilors Troisi, Robinson, Nowicki,
MeKonnen, Hatleberg, Barton, Vega-Torres, Brown and Morgese. A motion from
Councillor Troisi to move the order to a second reading was adopted under suspension.

WHEREAS, The City of Chelsea (the “City”) and Alkermes, Inc. (“Alkermes”) have
been in negotiation since May, 2005 relative to the mutual desire of each party to secure
the necessary “field leveling” assistance to make economically feasible Alkermes’ future
retention and expansion in Massachusetts, in general, and Chelsea, specifically; and

WHEREAS, as part of the assistance package identified by the parties with the assistance
of the Massachusetts Office of Business Development, Alkermes has applied for
designation as a Certified Project under the Massachusetts Economic Development
Incentive Program created by Chapter 23A of the Massachusetts General Laws; and

WHEREAS, Alkermes’ commitment to expand its biopharmaceutical manufacturing
facility in Chelsea meets and exceeds the minimum standards of the Economic
Development Incentive Program, as well as the local development goals and criteria
established as part of the documents creating the City’s Economic Target Area and the
Everett Avenue Urban Renewal District Economic Opportunity Area; and

WHEREAS, the City has agreed to offer Alkermes a second Tax Increment Financing
Agreement, with said agreement hereby being approved by the Chelsea City Council (the
“City Council”) and the Tax Increment Financing Plan being incorporated by reference
herein; and

WHEREAS, Alkermes’ project will result in a $60,000,000 real estate and personal
property investment at 190 Everett Avenue, create 70 permanent full-time jobs within the
first five years of the agreement, and provide local residents with future employment
opportunities as Alkermes participates in a local hiring practice.

NOW THEREFORE BE IT ORDERED, that the City Council approves the second
Certified Project Application of Alkermes and forwards said application for certification
to the Massachusetts Economic Assistance Coordinating Council for its approval and
endorsement; and

BE IT FURTHER ORDERED, that the City Council authorizes the City Manager to enter
into a Tax Increment Financing Agreement between the City and Alkermes, with said
agreement providing Alkermes an exemption on property taxes based on the growth
portion of the assessed valuation of the property occupied by Alkermes at 190 Everett
Avenue at a rate of 100% for Years 1-10, commencing with the FY’09 tax bills and
concluding after FY’18 and according to the requirements and regulations established
that govern the implementation of such Tax Increment Financing Agreement

The following Orders were all adopted under suspension:

Order introduced by Councillor Bongiovanni:
ORDERED, that the City Manager and the Director of Health and Human Services
provide a report to the City Council on the status of the Board of Health’s progress on
drafting a Noise Ordinance and Phase II of the Waterfront Odor Study.

Order introduced by Councillor MeKonnen:
ORDERED, that the City Manager send a letter to the Massachusetts State Highway
with regards to highway noise relief for the residents of the abutting neighbors, 16, 15,
and 3 County Road, 328, 326, 324, Carter Street and 165 Bloomingdale Street.

Order introduced by Councillor MeKonnen:
ORDERED, that the City Manager instruct the Director of Public Works to fix the
sinking street surface near by 138 Franklin Avenue.

Order introduced by Councillor Bongiovanni:
ORDERED, that the City Manager provide the council with an update on the status of
truck enforcement at Webster Avenue, Stockton Street, Clark Avenue and Gillooly Road
as ordered by the council six months prior.

Order introduced by Councillor MeKonnen:
ORDERED, that the City Manager instruct the Director of Public Works to post a sign
“CAUTION deep drop” on corner of Washington Avenue and Carter Street.


The meeting adjourned at 7:40 P.M.

Respectfully submitted,



Paul G Casino
Clerk of the Chelsea City Council

				
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