I-Cubed Program Reply

Infrastructure Investment Incentive (I-Cubed) program whereby state provides bond financing of up to $50 million for public infrastructure, to be paid back through net new State tax revenues.

Time Frame

  • 30 years

Status

  • (10/5/11) Blocks 1 and 4 in front of Planning Board.
  • (9/29/11) Blocks 1, 3, 4 in A.S. DIF area in front of Design Review Committee.

Monitor

  • Successful submittal of EDP and IDAA.
  • Use of funds for transit, particularly to support the 2nd head house at the Assembly Square T-Stop.

Risks

  • City of Somerville is essentially cosigning on the bonds. If the development falls through, the City pays.
  • Funding could be used only for roadways. Part of funding should be applied toward transit, particularly to fund the 2nd (IKEA) head house at the Assembly Square T-Stop.

Mitigation

  • Developer is supplying a Liquidity Reserve letter of credit covering about 18 months of debt service.
  • Push for using the $15 million promised in the MVTF settlement to fund the 2nd head house at the Assembly Square T-Stop.

Background

  • The Assembly Square infrastructure project is the first use of this program. State believes that IKEA alone will bring in enough out-of-state business to provide enough net new state tax revenues to cover debt service for the first part, and that planned mixed-use developments will provide enough for the second part.
  • Part of the Mystic View Task Force settlement was that the developers should contribute $15 million toward the Assembly Square Orange Line T-Stop. The first part of the iCubed financing is intended to apply to the area adjacent to the Orange Line, including funding for access to Draw 7 Park.

History

  • (1/1/10) Second head house excluded from iCubed funding by Mayor Curtatone. Other funding sought. Meeting to come 1/6/10 on second head house.
  • Aldermen White and Gewirtz (10/15/09) ordered Office of Strategic Planning to investigate feasibility of using iCubed funds for 2nd head house.
  • City to vote 10/22/09 on economic development proposal, creating liquidity reserve, and acquiring property for the infrastructure.
  • City has received permanent easement to roadways to be built using iCubed funds (to be submitted 9/24/09, BOA action 10/8/09.
  • Submittal of final Economic Development Plan and Infrastructure Development Assistance Agreement (IDAA) (10/8/09)
  • Continued Public Hearing (10/14/09)

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