CITY OF QUINCY APPLICATION FOR DISTRICT IMPROVEMENT FINANCING EXECUTIVE SUMMARY Introduction At least since the completion of the South Shore Plaza in the early 1960’s, the Quincy business community and its residents have been concerned about the economic and physical condition of Quincy Square (the “Quincy Center District”), the main retail and commercial center in the City. Once know as “Shoppers’ Town-USA”, many quality retailers have left for the Plaza and other suburban malls attracted by better parking and highway access. Numerous revitalization proposals have included the construction of an east-west road connection through the heart of downtown Quincy to link Routes 3 and 3A (the “Concourse”) to improve this access as well as the creation of one or more parking garages. The City’s vision is that the completion of the Concourse will create an urban boulevard providing additional sites for private and public development as well as improved motor vehicle and bicycle access to the District. After much public input (including the DIF Public Hearing held this month), there is now a belief in the business community and the general public that what has long been only a dream is now becoming a reality. Phase 1 of the Concourse is complete. This April, Transportation Secretary Grabauskas, announced a $2,000,000 PWED grant to the City of Quincy to fund the reconstruction of McGrath Highway from the Quincy District Court House to Route 3A. According to a Patriot Ledger news story: “The most complicated and expensive portion of the road-creating a new Hancock Street crossing-now becomes the last step under plans favored by city officials. The idea of an east-west corridor through downtown Quincy was first envisioned more than three decades ago. Phase 1 of the project, a $6.5 million bridge connecting Burgin Parkway and the Parking way opened in 2003.” Continuing the article stated: “If all goes according to current plans, the city will pay for land taking by using a tax financing program that is now before the city council and the state and federal government will pick up the tab for the road construction.” Selected PWED materials and the Ledger article are attached. The City intends to use a major portion of DIF funds to complete the Concourse and end the long saga to improve Quincy Square access. Advantages of Approving the DIF District and Program The City believes that it would be very advantageous to the development of Quincy Square to receive the endorsement of the Economic Assistance Coordinating Council at its May meeting. Both the enabling statute for the DIF program and the regulations issued pursuant thereto, contemplate, at the option of the community, a two step approval process. The City intends to develop an Invested Revenue Development District Program once project costs are more accurately determined, a major developer is identified and a detailed financing scenario is completed. The approval of the Development District and Development Program, at this time, will have the following positive consequences: 1. The real estate community and interested businesses and project developers will know that the City of Quincy is moving ahead in a systematic fashion, to complete the Concourse, construct needed parking garages and streetscapes. 2. Key individuals associated with potential major investors in Quincy Center have begun to accelerate their investigation of possible new investment because of the DIF public hearing and publicity. 3. Concurrently, with the DIF application process, the City is in the process of adopting a new zoning ordinance (consistent with the key elements of “smart growth”) that will provide higher density development. 4. The approval of the Development District and Development Program now, will help insure the City and its citizens that the Administration’s plans, at this stage, meet state guidelines and are on the right track for eventual approval as an Invested Revenue Development District and Program. 5. It is expected that the subsequent approval of an Invested Revenue Development District Program will be easier and more productive, for all parties, by using the two stage approach. 6. Potentially, DIF will use some existing parking revenues to fund consulting and engineering costs. Next Step after District and Program Approval The City has met several times with the underwriter, Legg Mason based in Baltimore. This firm has completed a number of TIF revenue bond issues, particularly in Maryland and Virginia. City officials have also met with Keenan Rice of Municap, a specialist in the financing and structure of revenue bonds funded through pledged tax increments. The City is reviewing proposals to retain both firms to assist with the financing structure. Additionally, the following steps are ongoing: 1. The Mayor will soon be recommending the final right-of-way location for Phase II of the Concourse based on traffic data and layout designs provided by Rizzo Associates. Rizzo Associates is currently contracted to update traffic counts and turning movements in Quincy Center and provide right-of-way options for the Concourse. 2. The City is in the process of retaining Rizzo Associates to expand their traffic-engineering role performing a parking study that will evaluate existing conditions, execute a parking survey, evaluate future conditions, and make parking facility recommendations. 3. Various City departments and private consultants are working on estimates for the Concourse Phase II cost items as well as construction related expenses for the proposed parking facilities and streetscape improvements. 4. The City is in the process of retaining the urban design firm Goody, Clancy and Associates to update Design Guidelines and Directional and Interpretive Sign Program for the District, provide ongoing planning assistance, identify real estate investment opportunities in the District, and prepare a Comprehensive Vision Plan. Public Investment The City has already expended considerable funds for consultants and engineering. It has obtained the PWED grant and has identified the completion of the Concourse as the first goal of the DIF. A new garage and improved streetscapes would be next on the City’s agenda. The details of these needs are currently being firmed up. The City, potentially, under the DIF Program, may use existing parking revenue receipts to advance to the Invested Revenue District Development Program stage. In order to provide a clearer understanding of the Administration’s vision, please look at the attached Design Guidelines and map prepared by Goody & Clancy that we will deliver to you on Wednesday. Invested Revenue District Development Program When the Order endorsing the application for the Quincy Center District and Development Program was presented to the City Council, the City Planner made it clear that the Council would be in the future reviewing an Invested Revenue Development District Program and bond ordinance. It was explained that the approval of the current application was an important, but only the first step in the process. The City plans to move ahead with submitting an Invested Revenue Development District Program once necessary studies are completed and a major commercial or residential project is identified.