A capacity audience at the Panel on Devens forum Thursday, April 10, heard answers to many questions, but will have to wait until April 24 for others. The forum was part of the Citizens to Protect Rural Harvard’s annual meeting.
More than four years into the disposition process, Harvard may get a clearer picture of Devens’ revenues and tax base when MassDevelopment releases a comprehensive report at the Joint Board of Selectmen’s meeting next week. Operational information will be more difficult to piece out, because MassDevelopment bundles all of the Devens project funds into a single fund.
“The reason for having this meeting is because the Harvard Board of Selectmen asked for information from MassDevelopment that we expected to have, and because Devens residents put two warrant articles before the Town Meeting,” said Millie Chandler, former president of CPRH. Devens is a familiar topic to CPRH, which grew from a group of citizens who united to oppose early Fort Devens reuse proposals that included a New England regional airport, a nuclear waste site, and two hazardous waste sites Chandler described later bringing in planners and architects, who developed a broad-based planning process. They advocated for a sustainable, mixed-use redevelopment that would fit into the surrounding region.
The three panelists, all Harvard residents, commented on their relationship with Devens.
“It has been a strange experience to sit on both sides of the table. I’ve walked a fine line many times and I think I’ve developed a skill to be objective,” said Victor Normand, vice president of community development at Devens, who has worked for MassDevelopment for 10 years.
Duncan Chapman, a former 30-year reservist, was for five years in charge of real estate for New England military facilities, including Fort Devens. Chapman said that he was interested in regional solutions to the Devens issues.
Selectman Tim Clark cited his interest in Devens as an outgrowth of his work on the Planning Board and the town Master Plan. He found the data made available during the 2B disposition process voluminous, but incomplete. Clark said that without sufficient data about the Devens tax base, operations, and promised tax incentives, the Board of Selectmen thought it was difficult to evaluate future Devens disposition scenarios.
Finances and taxes
Normand explained that the Devens Enterprise Zone comprises 4,400 acres, of which 2,700 acres are in Harvard. The South Post still belongs to the military, as does 750 acres on the North Post that houses the Federal Bureau of Prisons, Job Corps, and U.S. Fish and Wildlife. Fort Devens is the only base that was closed without defined political jurisdiction. The reuse legislation, Chapter 498, requires that Ayer, Harvard, and Shirley agree on Devens jurisdiction disposition by 2033 or at full redevelopment, whichever comes first.
Bruce Leicher’s concerns for the consequences of assuming jurisdiction of Devens boiled down to two basic questions. What are the costs? Where does the money come from?
According to Clark, the BOS had the same questions. Last June 6 they submitted a letter of request to begin a cooperative relationship with the governor’s office, MassDevelopment, and Harvard to ensure that a future disposition proposal “would have overwhelming support by the three towns and MassDevelopment.” With help from Sen. Pam Resor’s and Rep. Jamie Eldridge’s offices, a meeting was eventually convened Oct. 30, at which MassDevelopment agreed to respond to written requests for information. The results will be released to the Joint Board of Selectmen at their April meeting next Thursday.
The April 24 report “will lay out where the money comes from, what is in place now, where is it located, what is the value, and what is the potential to be developed,” said Normand.
“The expense is not as easily determined because presently MassDev is both the municipality and the development authority,” he said. “So our activities are co-mingled. We don’t have a separate municipal budget and a redevelopment budget. In terms of expense, that is something that the individual towns and the Devens community itself have to get their arms around.”
Rick Smalanskas offered the observation that towns with more commercial base usually have lower taxes. Chapman agreed.
“My understanding is that one of the problems was that in order to get development at Devens, there’s been a lot of enticements to get the industry in there. So, the question is, how much would we really get back?” asked Diane Cordner.
Normand responded that all of the tax agreements go away at disposition, except for four: Bristol-Myers-Squibb, Evergreen Solar, and two with no impact on local taxes. He explained that the BMS building is exempt from tax for six years, but the underlying land is taxed for $200,000. The first phase BMS project is valued at $300 million, and at completion $1 billion. BMS’s tax agreement expires in 20 years, at which time the project could pay $2 million a year in today’s dollars. For comparison, Normand estimated Harvard’s current evaluation at $1.1 billion. Clark added that the agreement goes away if BMS does not meet performance commitments for jobs and capital investments.
Normand said that next week’s report would give the tax status for Evergreen Solar, which is still under construction.
“Given MassDevelopment’s charter… how much have they invested, how much do they need to get back …Are they in the black? When do they declare victory and go home?” asked Steve Finnegan.
Normand explained that the original legislation allocated $120 million to MassDev for capital projects, of which it has spent $80 million, and $2 million a year for operating expenses. Land sale revenue, local property tax revenue, and utility income all go into the Devens fund, from which MassDev pays the operating expenses to run Devens as a municipality, to run the redevelopment project, to update the infrastructure, and pay all the associated costs.
“What revenues arrive at Devens remain at Devens,” he said.
“So, 15 years in, are you in the black?” repeated Finnegan.
“Yes,” replied Normand.
Housing
When asked about housing, Normand replied, “The only plan that we’re working from in respect to Devens is the reuse plan that allows us to build an additional 176 units of housing. There was an effort as part of the [2B] disposition to increase the number. This is no longer under consideration. The commonwealth has told us that absent any agreement from the towns, they want to work within the existing 200 acres zoned for housing.”
Clark elaborated, “282 is the only real number today.” He reported that at a JBOS meeting, Tina Brooks, undersecretary of Housing and Economic Development, “said unequivocally that she would be the one to recommend or not recommend increasing the housing.” Any recommendations would have to be approved by the legislature.
According to Normand, there are 106 housing units at Devens, which are assessed by the Devens Enterprise Commission at full valuation. Chapter 498 specified that 25 percent of housing would be designated “affordable” (available to households with incomes within 70 to 80 percent of the regional median income.) Twenty-seven units at Devens qualify as affordable. When asked if a 40B developer could exceed the current Devens housing cap, Normand explained that Devens is not vulnerable to 40B development because more than 10 percent of its housing is “affordable.”
Education
Normand explained that the reuse plan requires that MassDev educate any children living on Devens by contracting with any town in Massachusetts. Currently, they have a contract with Harvard for grades six through 12. Ayer, Shirley, and Harvard are all in negotiation with MassDev for students in kindergarten through grade five. MassDev will make the final decision with input from the Devens Education Advisory Committee.
Addressing a comment that it is difficult to plan for schools without knowing hard numbers on housing, Normand repeated that the 282 cap on housing units can only be changed by the legislature.
“The potential for housing development in Harvard is greater than at Devens,” he said.
Land use
Selectman Peter Warren reported noticing demolition at Salerno Circle, an area of former army housing that looks south from the north side of Route 2. Warren expressed concern for Harvard’s view shed. “Salerno Circle could be a disaster for us,” he said.
Normand replied that, absent a change by the legislature, Salerno Circle is a special- use zone that could be used for office space, but not for housing.
Bill Ashe echoed Warren’s concerns, saying that Salerno Circle overtops a high-yield aquifer that could be damaged by contamination at Salerno Circle similar to that found at Grant Road. He expressed concern for the four significant aquifers that he described as “the most precious resources at Devens.”
“Informed citizenry know how water is going to be valued in the near future. We read about Nestle trying to work out a deal to get some local water rights. I’d like to …get some assurance that MassDev is not involved in any deal of this sort,” he said.
Normand replied that the only outside water agreement was to supply Ayer in an emergency situation.
