Medford Delegation: Funding Bill will Help Create Jobs

“I-Cubed” Bill to Create Jobs through Funding Public Infrastructure Projects

Medford’s State House delegation got behind a bill this week they say will help create thousands of jobs by helping communities and developers fund work on streets, sidewalks, water and sewer lines, and street lights, which are all essential to successful economic development.

The Infrastructure Investment Incentive legislation, or “I-Cubed” bill makes significant changes to the original law passed in 2006, including increased community funding and revenue safeguards.

State Senator Patricia D. Jehlen (D–Somerville) said that she is pleased that the legislation will foster business and governmental partnerships to create growth while addressing infrastructure needs of our communities.

“I hear from many of my constituents that upgrades are needed on their streets and sidewalks. I am glad that my colleagues in the Senate and the House passed legislation that will provide some necessary funding so these repairs happen,” said Sen. Jehlen.

I-Cubed includes built-in safeguards to protect the Commonwealth from any loss of revenue, and ensures that laws relating to the classification of employees, health insurance, workers compensation and unemployment insurance are adhered to by developers.

“This legislation gives our city another tool for job creation and economic development so critical to our growth as a community,” said State Representative Carl M. Sciortino (D – Medford).

State Representative Paul J. Donato (D–Medford) said the timing is good for the legislation given the tight budget year.

“This legislation will generate jobs and allow much needed infrastructure projects to be completed. This is so important in these tough times,” said Rep. Donato.

The bill allows Massachusetts to invest in infrastructure projects by issuing up to $250 million in bonds – $50 million more than legislation passed in 2006 with the same goals. This change makes I-Cubed funding more widely available to eligible economically-distressed areas.

The legislation also eliminates the five-project cap and a sunset date instituted by the original law, thereby making I-Cubed funding an option for more projects in more communities.

How I-Cubed works:

Through the sale of bonds, the state provides the initial capital money to build the project.

Once a project is approved, the parties (the state, the municipality, and the developer) enter into an agreement that lays out the requirements for special real estate tax assessments and payment of the debt service.

Project developers are then responsible for the debt service payments. Once the project is up and running, the debt service payments are made through the new revenues generated by the project.

Bonds are repaid by the tax assessments on development parcels that benefit from the infrastructure improvements.

This entire concept is dependent upon agreements between the municipality, the developer and the Commonwealth. Studies will be conducted to find out how much new revenue a project is expected to generate, and the amount of debt service paid on the bonds is calculated to ensure that all outstanding debts are covered by the new project.

The bill now heads to Governor Deval Patrick for his anticipated approval.

– InsideMedford.com