Economic growth is critical to the region’s well-being, and it must be planned well to preserve the region’s scarce fiscal and economic resources.  Policies that seek to focus commercial and industrial growth need not obstruct economic development.  MAPC analysis indicates that there is enough land in smart growth locations to support robust economic growth, as long as the zoning in those locations supports compact growth.  With appropriate planning, permit streamlining, and infrastructure improvements, development in smart growth locations can be as attractive to developers as outlying locations.  This will be reinforced when the public sector chooses to curtail programs that subsidize or expedite economic development in areas less suitable for growth.  

There are now a variety of state and local efforts to facilitate economic growth through planning, streamlined permitting, infrastructure development, and marketing in designated growth areas.  The two most prominent such initiatives are the Chapter 43D Expedited Permitting program and the Patrick Administration’s Growth Districts Initiative.  MetroFuture strongly supports application of these strategies in locations that are consistent with the MetroFuture land use plan.  

The Administration should make greater efforts to coordinate with MAPC on the designation of Growth Districts, and it should require appropriate land use controls to ensure sustainable design and multimodal access within those Districts.  The state can also use the Chapter 43D program to help focus economic growth in Smart Growth locations.  As a first step, limited resources for 43D Technical Assistance grants should be directed to proposals in locations consistent with the Commonwealth’s Sustainable Development Principles and the MetroFuture land use plan.  Ultimately, the Interagency Permitting Board should approve Priority Development Sites only in locations consistent with the Principles and the MetroFuture land use plan.  

State and local government can also influence the location of new economic development through capital improvement funding programs, such as the Public Works Economic Development Program (PWED) and the Massachusetts Opportunity Relocation and Expansion (MORE) Jobs Capital Program.  Beginning in Fiscal Year 2009, the PWED Program will be administered to explicitly support the Commonwealth’s Sustainable Development Principles.  Criteria for awarding the PWED grants will include multimodal transportation opportunities, energy conservation, and brownfields redevelopment.  The MORE program also supports capital project related to job creation but does not require any demonstration of consistency with the Sustainable Development Principles, or even local land use plans; the program should be modified to require this consistency.  

The Economic Development Incentive Program (EDIP) is a tax incentive program designed to stimulate business growth and foster job creation.  Through this incentive program, a three way partnership is developed between the state, a growing company, and a municipality.  Participating companies may receive a 5% investment tax credit (known as the Economic Opportunity Area Credit), and local tax incentives (either a Special Tax Assessment or a Tax Increment Financing) in exchange for job creation and private investment commitments.  The EDIP program is only available to job growth in Economic Opportunity Areas, which are designated based on very broad criteria (“blighted,” “decadent,” or “substandard.”)  The designation of EOAs or Certified Projects should include a determination of consistency with the Commonwealth Sustainable Development Principles and the MetroFuture land use plan.

MAPC can also use its relationships with local government to facilitate job growth in appropriate locations.  MAPC provides technical assistance to municipalities directly (often funded by programs such as the District Local Technical Assistance program).  The Massachusetts Department of Housing and Community Development also offers 57 grant and technical assistance programs to municipalities.  MAPC should target its technical assistance efforts to location and proposals consistent with MetroFuture and should make extra efforts to connect municipalities with grant programs that can support MetroFuture-consistent economic development. 

1.a    EOHED should modify the process for designation of Growth Districts to include formal coordination with regional planning agencies

1.b    The Interagency Permitting Board should prioritize Ch. 43D Technical Assistance grant funding to locations consistent with MetroFuture

1.c    The Massachusetts Office of Business Development should adopt the Sustainable Development Principles as a criteria for MORE grant evaluation

1.d    The Legislature should revise criteria for Economic Opportunity Areas to reflect the Sustainable Development Principles and MetroFuture

1.e    MAPC should use subregional networks to promote Department of Housing and Community Development technical assistance programs

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