(2) The Preliminary Economic Development
Proposal shall include the following:
(a)
Legal name, contact information, personnel, description, and relevant
experience of the Developer.
(b)
References and the contact information of other government officials, if any,
with whom the Developer has dealt in connection with similar development
projects.
(c) If the Economic
Development Proposal is expected to be owned or carried out by more than one
Developer, items listed in 801 CMR 51.06(2)(a) and (b) for each Developer and
an explanation of their relationship, their respective ownership interests and
their respective roles in carrying out the Economic Development
Proposal.
(d) Boundaries of the
proposed Economic Development District, including:
1. a textual description of the boundaries
and a map showing boundaries;
2.
identification of the existing parcels of real property located within the
proposed district;
3.
identification of the current Owner of each parcel, and, to the extent any of
the parcels are not currently owned by the Developer, evidence that the
Developer has a reasonable expectation of acquiring the parcels not currently
owned by the Developer and the expected cost of acquiring these
parcels;
4. identification of the
proposed Assessment Parcels upon which the different Project Components will be
developed; and
5. identification of
the proposed Public Infrastructure Improvements.
(e) Description of the Proposed Economic
Development Project, including:
1. each
building, facility or other improvement to be constructed on each Project
Component;
2. the square footage of
each building to be used as a commercial facility, and the expected allocation
of the square footage among different types of commercial activity, and
descriptions of the expected specific commercial uses of this square
footage;
3. the number of
condominium or apartment residential units to be included in any proposed
residential facility, and the number of such units to be restricted as
affordable to individuals and families with incomes at or below 80% of
area-wide median income levels;
4.
Public Infrastructure Improvements;
5. any zoning amendments or relief that will
be required to carry out the Proposed Economic Development Project and the
status thereof; and
6. any known
environmental or other permitting that will be required to carry out the
Project and the status thereof.
(f) A detailed itemization of:
1. the projected cost of each Project
Component and the expected sources of financing available to fund such costs;
and
2. the projected costs of each
Public Infrastructure Improvement and the expected sources of financing
available to fund such costs, including any funding being requested under St.
2006, c. 293, §§ 5 through 12, as amended by St. 2008, c. 129,
§§ 2 through 17 and St. 2012, c. 238, §§ 60 through 63. The
itemization shall include financial statements or written financing commitments
demonstrating that expected sources of financing are available for the project,
or include a detailed explanation of the reasons any such financing sources
have not yet been secured and the basis for believing they will be secured
prior to the Secretary's approval of the Economic Development
Proposal.
(g) A detailed
timeline for approval and completion of the Economic Development Project,
including:
1. the expected date of municipal
approval;
2. the expected date of
final approval by the Secretary and the Agency;
3. the expected dates of commencement of
construction and completion of each Project Component and the fiscal year
Project Cost cash flows for each Project Component;
4. the expected dates of commencement of
construction and completion of each Public Infrastructure Improvement and the
fiscal year Project Cost cash flows for each Public Infrastructure Improvement;
and
5. the expected dates of
commencement and completion of any other construction-related activity to be
undertaken in connection with the Economic Development Project. If the
Developer is seeking approval of the Economic Development Project as a Phased
Project, the detailed timeline must also clearly identify the different
proposed phases of the Economic Development Project, including the Project
Components and Public Infrastructure Improvements to be completed in each
phase, and the expected dates of commencement and completion of each
phase.
(h) Written
evidence that the Economic Development Project would not happen or would not
achieve the level of development, jobs or other economic activity contemplated
by the Preliminary Economic Development Proposal without the Public
Infrastructure Improvements and without the financing of all or a portion of
the Cost of such Public Infrastructure Improvements under St. 2006, c. 293,
§§ 5 through 12, as amended by St. 2008, c. 129, §§ 2
through 17 and St. 2012, c. 238, §§ 60 through 63.
(i) For each Project Component, the total
number of jobs expected to be supported in each industry expected to be located
at the Project Component and the expected average wage for each job in each
such industry, the total retail sales activity by dollar volume and the total
hotel rooms, projected room rates and projected daily occupancy levels, and the
total number of construction jobs expected to be supported at each Project
Component and for the Public Infrastructure Improvements, the expected average
wage for each construction job and the amount expected to be spent for the
purchase of construction materials in the Commonwealth for each Project
Component and the Public Infrastructure Improvements, all with reference to
recent government or industry sources used as the basis for the projections or
to the actual experience, estimate or commitment of expected tenants or Owner
of the Project Component.
(j) The
Developer's estimate of the appropriate Displacement Factors for each Project
Component, together with any data or explanation the Developer can offer to
support such estimate.
(k) For each
Project Component and based on
801 CMR 51.00, the DOR
Guidance, the Commitments, and the Developer's estimate of the appropriate
Displacement Factors for each Project Component, estimates of total state tax
revenues, New Revenues and New State Tax Revenues to be generated from each
Project Component of the Economic Development Project. For the purposes of
these estimates, the Developer shall state the assumptions it is making with
respect to the extent to which any portion of any Project Component for which
the Developer does not yet have a Commitment will be leased or purchased by an
entity that will or will not be relocating to the Economic Development District
from elsewhere in the Commonwealth.
(l) Projected Debt Service schedule for
financing of the Public Infrastructure Improvements, both in the aggregate and
segregated by allocable Project Component, which is structured based on the
following assumptions and parameters:
1. a
total principal amount equal to the portion of the Cost of the Public
Infrastructure Improvement requested to be funded under St. 2006, c. 293
§§ 5 through 12, as amended by St. 2008, c. 129, §§ 2
through 17 and St. 2012, c. 238, §§ 60 through 63, and may include
estimated costs of issuance of the Bonds up to 3% of said amount;
2. a minimum interest expense of 5%, payable
semi-annually beginning in the fiscal year of the Commonwealth following the
fiscal year in which the Bonds are issued;
3. issuance date or dates not more than three
years prior to the expected completion of the related Public Infrastructure
Improvements or portions thereof being financed with proceeds of the
Bonds;
4. maximum term of 30 years
from date of issuance;
5. principal
amortization which:
a. results in annual Debt
Service payments allocable to each Project Component after completion of the
related Project Component that are not less than the annual Debt Service
payable with respect to such Project Component in any subsequent year;
and
b. annual Debt Service payments
allocable to each Project Component in any year prior to completion of the
related Project Component that is at least equal to the total interest due and
payable on the Bonds allocable to such Project Component.
(m) Any Commitments for any of the
Project Components, together with a written statement as to whether any of the
prospective tenants or purchasers making such Commitments are relocating jobs
or commercial activity from elsewhere in the Commonwealth and whether any jobs
being relocated from elsewhere within the Commonwealth to the Economic
Development District would be relocated outside of the Commonwealth if the
Economic Development Project were not carried out, including any compelling
evidence supporting such an assertion that the Developer is able to provide.
The Developer shall also produce a written description of the Developer's
marketing efforts and the status of any active negotiations with potential
tenants or purchasers.
(n) Written
description of the proposed transfer of property interests in the Public
Infrastructure Improvements after they have been completed. If the Public
Infrastructure Improvements are expected to be conveyed to a governmental
entity other than the Municipality, a vote of the legislative body or governing
board of the governmental entity with the power to accept property on behalf of
the governmental entity authorizing the acceptance of the Public Infrastructure
Improvements and of responsibility for maintaining the same in the event that
the Economic Development Proposal is approved by the Secretary.
(o) Written statement of interest from the
Municipal Officers confirming their preliminary support for the proposed
Economic Development Project and their preliminary interest in pursuing the
approval of the Economic Development Project by the Secretary, the Agency and
the Municipality.
(p) Certification
of the Developer confirming that:
1. the
proposed Economic Development Project was not approved by the Municipality
prior to September 7, 2006; and
2.
the Developer has not received or applied for, and will not apply for, any
public assistance for the project prohibited under St. 2006, c. 293, §
11(b), as amended by St. 2008, c. 128, §§ 13 and 14; and
3. following the effective date of
801 CMR 51.00, the Developer
has not applied and will not apply for any other public assistance funded by
the Commonwealth for infrastructure improvements within the Economic
Development District until any Bonds issued for Public Infrastructure
Improvements therein are no longer outstanding, unless the Secretary approves
of the Developer's applying for such other state infrastructure
assistance.
(q) A
description of each of the commercial establishments and residential facilities
located within the proposed Economic Development District during the fiscal
year prior to the application for funding under St. 2006, c. 293, §§
5 through 12, as amended by St. 2008, c. 129, §§ 2 through 17 and St.
2012, c. 238, §§ 60 through 63, and, if the Developer owns all or a
portion of the property within the district, in the fiscal year prior to the
Developer's acquisition of such property, whether any of such establishments or
facilities are expected to remain within the district following the proposed
Economic Development Project and the plans for relocating any of such
establishments or the place of relocation of any of such establishments that
have already been relocated, and the estimated amount of any state tax revenue
generated from each of such commercial establishments in the prior fiscal year
and in the fiscal year prior to the Developer's acquisition of such property,
if applicable, together with the basis for such estimates.
(r) Written evidence that the Economic
Development Project shall conform to the general plan for the Municipality as a
whole and any master plan for all or any portion of the Economic Development
District, and an opinion of counsel to the Developer confirming that the
Economic Development Project shall conform with all applicable zoning,
planning, land use, environmental and other laws and regulations of the
Commonwealth and of the Municipality.
(s) A description of the methodology for the
allocation of Debt Service to each Assessment Parcel and for the calculation of
any infrastructure assessments to be levied by the Municipality upon each
Assessment Parcel in the Economic Development Project, or the manner of
determining such methodology. The methodology may include allocation by length
of frontage, or type of Project Component, including classification of
Assessment Parcels among residential, commercial, industrial and open space
uses, or by square footage of an Assessment Parcel or an Economic Development
Project, or according to the value of the Assessment Parcel as determined by
the assessor or assessors, or by such other method as the assessor or assessors
of the Municipality determine will fairly allocate the Costs of the Public
Infrastructure Improvements financed by the Bonds to the real estate in the
Economic Development District, which may also include allocating Debt Service
and assessing in proportion to the New State Tax Revenue projected to be
generated from the Assessment Parcel. Prior to the Secretary's issuance of a
Preliminary Letter of Approval, the Secretary must also receive written
evidence of the Municipal Officers' and the Municipality's assessor's or
assessors' approval of the proposed methodology for the allocation of Debt
Service to each Assessment Parcel and, if necessary, of the aforesaid
determination of the assessor or assessors of the Municipality. In the event
that the methodology proposed requires the aforesaid determination of the
assessor or assessors of the Municipality, the Secretary shall not issue a
Preliminary Approval Letter until receiving written evidence of such
determination by the assessor or assessors.
(t) A statement as to whether the Developer
will agree to have Assessment Parcels assessed to reimburse the Municipality
for all or any portion of any Local Development Infrastructure Assistance
payments the Municipality is required to make to the Commonwealth with respect
to any Shortfall between Debt Service and New State Tax Revenues after the
related Project Component has become an Occupied Project Component, or a
description of any agreements made between the Developer and Municipality for
the same purpose.
(u) A written
description of the extent to which the Economic Development Proposal is
consistent with the Sustainable Development Principles.
(v) A statement as to whether the proposed
Economic Development Project is located in an Economically Distressed
Municipality or a Growth District, and, if it is, any supporting information or
evidence thereof.
(w) A written
description of the Developer's proposed competitive process for selecting a
contractor or contractors for the construction of the Public Infrastructure
Improvements to ensure timely and quality construction and cost
effectiveness.
(x) A written
statement, together with supporting information or evidence, as to whether:
1. the Developer is committed to make each
Project Component at least LEED certifiable;
2. any of the Public Infrastructure
Improvements have been previously contemplated and designed by the Commonwealth
or any of its agencies; or
3. any
of the Public Infrastructure Improvements are reasonably likely to make other
sites available for economic development projects.
(y) A written description of the Developer's
plan to secure the obligations of its selected contractor or contractors to
complete each of the Project Components and the Public Infrastructure
Improvements with payment, performance and lien bonds which, in the case of the
Public Infrastructure Improvements being funded in whole or in part from the
proceeds of the Bonds, provide for the Developer and the Agency to be
co-obligees under such bonds, and to secure its own obligation to complete the
portion of the Public Infrastructure Improvements not funded by Bonds under St.
2006, c. 293, §§ 5 through 12, as amended by St. 2008, c. 129,
§§ 2 through 17 and St. 2012, c. 238, §§ 60 through 63, or
to provide other security satisfactory to the Secretary.
(z) If all or any portion of the proposed
Economic Development Project is located in a Convention Center District, a
written statement of preliminary support for the proposed Economic Development
Project from the Executive Director of the Massachusetts Convention Center
Authority and confirmation of his or her preliminary support for transferring
the New State Tax Revenues deposited in the Convention Center Fund to the
General Fund in accordance with St. 1997, c. 152, § 10(c)(vi).
(aa) Any other reasonable information or
documentation that the Secretary, the Municipal Officers, the Agency or the
Commissioner requests.