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| Planning for Quincy's redevelopment | Day 1 | Day 2 | Day 3 | UPDATES | |
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TAX INCENTIVESSometimes they are key, but residential developments are usually not tied to themIn 1979, when the Campanelli Companies of Braintree was planning to build a 10-story office building in Quincy Square, the city helped seal the deal by offering a tax incentive.
The building, which houses the headquarters of Stop & Shop Supermarkets, remains an anchor in the square today. “The package that was put together by the mayor at the time was important in getting that project off the ground and making it a reality,” said Daniel DeMarco, a partner with the Campanelli Companies whose father helped negotiate the original deal. Opponents write off tax incentives as a bad idea, pointing to a deal in which the city gave Greek shipbuilder Sotirios Emmanouil five tax-free years in exchange for promises to revive the Fore River shipyard. Not a ship was every built. Such arguments might be right, and the city might not need to dangle tax breaks as a way to lure companies. In addition, most planners now talk about attracting residential, not office construction to Quincy Center, making the idea of tax incentives more a mute point. Even so, markets change, and it’s hard to predict what type of real estate will be in demand by the time any shovels actually hit dirt. So as the city moves forward with redevelopment plans, it’s helpful to keep in mind that tax incentives are at least a tool that can be used. The state’s economic development incentive program allows communities to offer tax breaks of between 1 and 100 percent on value added to property because of new construction or renovation. The incentives can last five to 20 years. The companies also get a 5 percent investment tax credit from the state. In exchange, the project must create new jobs. Such perks can mean the difference between a company locating in a city, and Massachusetts for that matter, or taking business elsewhere, said Barbara B. Berke, director of the state’s department of business and technology. The program can be a helpful downtown revitalization tool, Berke said. “New Bedford and Fall River have both been very active users of the (economic development incentive program) to restore their downtowns as well as to bring new jobs to their surrounding areas,” she said. Any tax breaks would need approval from the city council and mayor. Mayor William Phelan said he has not considered whether tax incentives could play a role in downtown redevelopment plans. “That’s not something I’ve given any thought to in conjunction with this initiative,” he said. “That’s not to say I would or I wouldn’t. I just haven’t given any thought to it.”
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