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MassDevelopment In The News
Massachusetts Tideland Bill Signed, Affecting $150 Million Authorization
November 16, 2007: The Bond Buyer, by Michelle Kaske
Development on landlocked tidelands in Massachusetts received a boost yesterday as Gov. Deval Patrick signed into law a measure that exempts non-waterfront tidelands from licensing requirements, a move that affects more than $150 million of potential bond debt from the Massachusetts Development Finance Agency.
Patrick filed the bill, called Chapter 91, on March 1 after the state Supreme Court ruled that the Department of Environmental Protection did not have the authority to exempt filled tidelands from licensing requirements, a procedure the DEP had been following since 1990. The court ruling affected 3,000 acres in Boston and another 1,000 acres across the commonwealth, according to the Patrick administration.
Under the new law, the secretary of energy and environmental affairs will now conduct public benefit reviews for each proposal to evaluate the benefits and environmental impact of waterfront and landlocked tideland development before deeming a potential non-waterfront development exempt from licensing.
"I am delighted to sign this bill to provide reassurance for thousands of property owners who received an exemption from Chapter 91 in the past and clarify the rules going forward," said Patrick in a press release. "This new law provides predictability for land development and protects the public interest."
With the legislative issue now finalized, MassDevelopment can move forward with filled tideland projects in the pipeline, most notably a $2 billion mixed-use development in Cambridge called NorthPoint. The project includes residential and commercial development on 45 acres of land in Cambridge, Boston, and Somerville that currently has no existing infrastructure.
MassDevelopment approved the borrowing one year ago, with financing including $150 million of special assessment bonds, a first for the authority and a move that required legislative approval. Since then, ownership of NorthPoint has changed hands, with the Archon Group now taking over as owner after the original developers put the project up for sale earlier this year.
Once final land sale agreements are in place, MassDevelopment will begin talks with Archon to work out when to price the bonds and if the developer would like to use special assessment financing or other types of bonds, according to Adam Bickelman, spokesman for the authority.
"We’re aware of several projects that would have been adversely impacted by the Chapter 91 issue," Bickelman said in a prepared statement. "In addition to NorthPoint, we are currently working on at least one other financing near term, and together these projects represent more than $150 million in pending bonds."
"It’s important to note that the tideland restriction had the potential to impact large- and small-scale projects for both nonprofit and for-profit borrowers," the statement said. "From an economic development standpoint, this amendment will ensure that developers, cities and towns can continue to redevelop under utilized properties into their highest and best use without restrictions based on the sites’ status as filled tidelands."
© Copyright 2007 The Bond Buyer.
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