Worcester Business Journal

wbjournal.com | April 2, 2018 | Worcester Business Journal 21 I n Worcester, the tax rate for commercial and industrial properties is $34.03 per $1,000 of valuation. In Sutton, the tax rate for all prop- erties is $16.55. Last November, the Sutton board of select- men unanimously voted to keep the tax the same for residential and industrial properties, even though Massachusetts has allowed communities since 1984 to split rates for residential and commercial & indus- trial properties. While Sutton could have split and saved homeowners an average of $476 off their 2018 tax bill, that residential decrease would have meant a corollary jump for business properties of $2,895. The final unified rate they settled for was a 0.3-per- cent increase from the year before. Last December, the Worcester city council decid- ed to increase the gap between what residential and business property owners pay under the split tax rate. From 2011 to 2014, the council had followed the advice of the Worcester Regional Chamber of Commerce and narrowed the gap, with the goal of eventually dropping the split tax rate. For the last three years – despite the urging of the chamber and a Worcester Regional Research Bureau report showing the split rate is bad financial policy – the council increased the gap between business and residential property owners. The commercial tax rate the council set of $34.03 is a 3.3-percent increase from last year, while the residential rate of $18.91 was a 1.6-percent decrease. Worcester manufacturer Primetals Technologies announced last week it will leave the city it has called home for 100 years to occupy a $28-million facility in Sutton. Now, the reasons for the move are many: Primetals wanting to consolidate its pro- duction, research & development, engineering and sales operations into one building; the company moving about 65 of its 340 jobs to Ohio; and Sutton giving the company a 67-percent reduction in its property tax bill through a 15-year tax-incre- ment-financing agreement. Before settling on Sutton, Primetals said it looked at multiple properties in Worcester and other com- munities in its two-year search for just the right fit. When comparing all those properties before making its final decision, the company would have factored in the increased tax expense in Worcester, which limits its ability to maximize its margin, compensate its employees and remain financially flexible in a changing global marketplace. No doubt Worcester has a lot going for it, and that is not just new restaurants and its emergence as a regional cultural hub. The city has a chamber and a city manager determined to attract businesses; nine colleges adding a layer of innovation and a highly educated workforce; an entrepreneurial immigrant community; and positive momentum driving an economic revitalization. But the split tax rate remains a significant stumbling block. The more Worcester's commercial base relocates outside the city, the more pressure put on existing commercial & industrial property owners. This cycle will perpet- uate itself until the city council follows Sutton's lead and heads toward a unified tax rate. Worcester, Sutton reap what they sow The Worcester Business Journal welcomes letters to the editor and commentary submissions. Please send submissions to Brad Kane, editor, at bkane@wbjournal.com. W orcester is indeed fortunate to have a smart and compassionate city manager who is doing his best to help solve the homeless situation here, however, I believe the responsibility for solving this problem lies in the hands of the Worcester City Council. The No. 1 homeless problem is more than 1,000 human beings in Worcester each night sleep under bridges, in parking garages and aban- doned buildings, or in truly inade- quate temporary shelters in church halls or church basements. This is a city government problem to be solved by our City Council members. Our City Council controls the bud- get, and it will take money to solve this problem. There are solutions to this need. The council must listen and take action to implement a plan by the end of June for it to make a difference for fiscal 2019. The No. 2 and larger problem of affordable housing and homelessness is a city, state and federal government issue needing broad community support to solve. If the council can spend half the time they spent on the dog park debate solving the No. 1 homeless problem, then they will solve an important human need now. That need is for a building with at least 100 beds, with staff providing strict management and supervision. There are at least 1,100 homeless in Worcester, including children. Almost 9 percent of those individuals live outdoors or in places not fit for human habitation. In the winter, the homeless, during the day, seek respite in spaces open to the public, such as libraries and malls. But the night time poses difficulties. For many, there is no place to go. City officials announced a broad task force will be formed to tackle the problem. Frankly, we don't need another study group or yet another report. There has been enough procrastination. Realistically, the problem of the homeless is a political one. The needy do not vote, and many of those elected to public office easily dismiss the homeless problem with lit- tle, if any fear, of retribution. There is also the difficulty of surmounting the NIMBY (not in my backyard) mentality. NIMBYs do vote, and they are not hesitate to confront City Hall. Abutters of a shelter should rightfully be concerned about who is living next door, but, strict oversight by cen- ter management can ensure public safety and order. A permanent shelter does not need to be located in a residential neighborhood. Worcester has many vacant buildings spread across the city to serve the purpose. The city could partner with area colleges to provide a pool of students to assist the needy. The homeless shouldn't have to seek warmth under cardboard boxes. The people who live on the streets are our "fathers" and "daughters." They are people, and we should treat them as such. Worcester is a caring city. It is time for the council to step up and do what is right. Francis R. Carroll is the founder and CEO of the Small Business Service Bureau Inc. in Worcester. Worcester needs to aid homeless V I E W P O I N T E D I T O R I A L BY FRANCIS R. CARROLL Special to the Worcester Business Journal Francis R. Carroll WO R D F R O M T H E W E B Tweets of the week "Watching videos of past @ WBJournal Leadership Award Winners and feeling super humbled and a bit nervous for this week's event." - Amy Lynn Chase (@shopcrompton), March 26, on the WBJ's Business Leaders of the Year event, where she was honored as the Innovative Business Leader of the Year "Do your business cards tell a story and strengthen your #brand? Last week, I talked with @WBJournal about #business #brand & #design. Read the story." - Joshua Croke (@joshuacroke), March 24, on a WBJ story about the role of business cards in 2018 Facebook feedback "He will be missed! One of the best to work with. Thank you for everything you did for the Gardner area!" - Ryan McGuane, March 22, on Gardner Chamber of Commerce President and CEO Jim Bellina stepping down from his role to be closer to his family "Absolutely! Move the Department of Public Health here!" - Cathleen McElligott, March 25, on a story about the Worcester Regional Research Bureau's recommendation to have some state offices relocate to Worcester W W

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