| TOWN BENEFITS, FISCAL IMPACT, AND EDUCATION COSTS |    |
What is the total tax revenue generated by the Village, what are the projected total costs to the Town to provide services to the Village, and what is the net fiscal impact to the Town, taking into consideration both the total tax revenue and the total anticipated cost of services to the Town?
Taintor & Associates, Inc., the Town's consultant, commissioned an independent fiscal impact report to study the effects of the Village on the Town's finances.
| Village's Annual Gross Revenue (Real estate taxes & excise taxes): | $834,000 |
| Village's Annual Municipal Service Costs | |
| - General Government | $24,000 |
| - Public Safety | $86,000 |
| - Public Works | $41,000 |
| - Health & Human Services | $5,200 |
| - Culture & Recreation | $3,000 |
| - Fixed/Shared Costs | $41,000 |
| - Public Schools | $192,000 |
| Total Cost of Services | $392,000 |
| Total Net Revenue | $441,800 |
According to the Town's consultant, the Town will gain $441,800 per year after all expenses incurred for the Village. To read the Town's detailed study please visit http://www.taintorassociates.com/documents/newbury/FiscalImpactReport.pdf.
The Village will contain a senior center, what will it include?
The senior center will be located on the first floor of one of the two proposed office buildings, thereby providing seniors with easy access to and from the center. The developer has pledged to provide a 5,000 square foot space free of charge to the Newbury Council on Aging. The developer will work with the Council to fit out the space with furniture and other requirements. The Council would be responsible for its utility and maintenance costs and any other operating costs.
If costs increase by more than 2½ % and revenue growth is limited to 2½ % will the net revenue to the Town decrease over time?
The Village is currently projected to generate $440,000 in annual positive net revenue for the Town after completion of construction. The Village's development program has been designed to respond to the Town's fiscal concerns, which are primarily due to increases in school costs. Newbury's current tax base is overwhelmingly three and four bedroom single family homes. Single family homes typically burden cities and towns more than any other use due primarily to school costs. Half of the Village's total square footage is retail and office space. Because these uses pay substantial real estate taxes but do not have a significant impact on Town costs they should generate increasing net revenue. With respect to the residential component, through working with town officials over the last year, the developer has developed a program that is carefully crafted to balance the need to create new housing opportunities without burdening the school system. This has included an overall reduction in the number of residences, a decrease in the number of rental homes, and age restricting 20% of the homes. Based upon the current program, the Town's independent fiscal consultant has projected that few children will live in the Village. Thus, through the combination of uses and residential mix the Village has been designed to remain fiscally positive.
How many people are expected to live at the Village? How many cars will they have?
According to the Town-commissioned fiscal analysis, it is estimated that 312 people will live in the Village. The developer estimates they will have approximately 240 cars.
How is the Village going to impact Newbury and Triton schools?
Section 4.1 of the Town's fiscal analysis details the impact to Newbury and Triton schools and it is useful to read that Section. In short and as detailed above, the Village's revenue will exceed projected school costs. In addition, extensive independent research has proven that there is no evidence that developments of this sort provide a disproportionate burden to a school system's special education programs.
A portion of the Village will be zoned under the state's new 40R law that will generate two large one-time payments to the Town. If the Legislature fails to reauthorize 40R, will the Town not receive the payments?
The developer is proposing to create two new zoning overlay districts that must be approved at Town Meeting. The first overlay district will be permitted under the M.G.L. Chapter 40(R) statute and will be titled the Little River Smart Growth Overlay District ("SGOD"). The 68 mixed income rental apartments and 30 age restricted condominiums will be in the SGOD. Under Chapter 40(R), the Town will receive an upfront payment from the Commonwealth once the district is enacted and then another payment once a building permit has been issued. The two payments combined total $279,000. If the Commonwealth does not reauthorize 40R, or does not otherwise fund the expected payments, the developer has agreed to provide the payments itself; thereby, guaranteeing the Town receives payment.
The political character of Newbury could change due to 150 homes translating into approximately 280 potential voters enabling the passage of overrides, etc. What will be the impact?
It is important to note that the developer anticipates most of the residents moving into the Village will be existing Newbury residents. The developer has designed the Village to cater to this market - empty nester homeowners eager to move into a town home, elders who may choose not to maintain their home and desire convenience in the age restricted flats, and young professionals who were raised in Newbury and would like to remain or return to the community and rent an apartment. For those who will be new to Newbury, it is anticipated that they will have moved to Newbury because of its character and environment and will positively contribute to Newbury's future.
Is there a market for smaller retail shops?
The Newbury market is currently underserved by convenience retailers. Most Newbury residents have to travel either south to Rowley, or west to Route 113 / 95 for the majority of their convenience shopping. The initial tenant interest has been very strong from a wide segment of complimentary retailers to serve the community.
What are the benefits to the Town if the Village is approved?
- Annual net revenue to the Town of over $440,000
- Guaranteed zoning payments totaling $279,000
- Significant traffic improvements on Route 1, Middle Road, Highfield Road, and Hanover Street
- Senior center
- Age restricted affordable housing and an exciting mix of other housing options for Newbury residents who wish to downsize, rent, or be closer to their children
- Retail services conveniently located for Newbury residents
- Creation of public open space including the Village green and the potential for passive walking trails
- Environmental cleanup of a former junkyard currently polluting the environment
- Significant increase toward meeting the Commonwealth's Chapter 40B mandate requiring 10% of the Town's housing stock to qualify as affordable.