HomeMy Public PortalAbout2017-06-29 I cube Order for sig
Watertown Town Council
Administration Building
149 Main Street
Watertown, MA 02472
Phone: 617-972-6470
ORDER # O-2017-
AN ORDER APPROVING AN INFRASTRUCTURE INVESTMENT
INCENTIVE (“I-CUBED”) ECONOMIC DEVELOPMENT PROPOSAL
SUBMITTED BY ATHENAHEALTH, INC. FOR THE ARSENAL ON THE
CHARLES.
WHEREAS, Sections 5 through 12A, inclusive, of Chapter 293 of the Acts of 2006,
as amended, (the “I-Cubed Act,”), and Chapter 51.00 of Title 801 of the Code of
Massachusetts Regulations (the “Regulations” and, collectively with the I-Cubed
Act, the “I-Cubed Program,” with all undefined terms used in this Order having the
meaning given such terms in the I-Cubed Act and the Regulations) authorize the
Commonwealth of Massachusetts (the “Commonwealth”), acting by and through the
Secretary of the Executive Office for Administration and Finance (the “Secretary”),
the Massachusetts Development Finance Agency (“MassDevelopment”) and the
Town of Watertown (the “Town”) to assist in the financing of public infrastructure
improvements for Economic Development Projects in the Town; and
WHEREAS, in 2014, athenahealth, Inc. (the “Developer”) filed a Preliminary Economic
Development Proposal (the “Arsenal Economic Development Proposal”) with the Secretary, the
Town and MassDevelopment for the designation of the Arsenal on the Charles and surrounding
properties as an Economic Development District and an Economic Development Project (the
“Arsenal Economic Development Project” or the “AEDP”) under the I-Cubed Program; and
WHEREAS, the Arsenal Economic Development Project will transform Developer’s current
headquarters at the Arsenal on the Charles (the “Project Components”) into an integrated campus
environment that will welcome in the Watertown community and will include the construction of
public infrastructure improvements identified in the Arsenal Economic Development Proposal (the
“Arsenal Public Infrastructure Improvements”) necessary or desirable for the development of the
Arsenal Economic Development Project; and
WHEREAS, no zoning changes are required to accommodate the Arsenal Economic
Development Proposal; and
ELECTED OFFICIALS:
Mark S. Sideris,
Council President
Vincent J. Piccirilli, Jr.,
Vice President
Michael F. Dattoli,
Councilor At Large
Aaron P. Dushku,
Councilor At Large
Susan G. Falkoff,
Councilor At Large
Anthony Palomba,
Councilor At Large
Angeline B. Kounelis,
District A Councilor
Lisa J. Feltner,
District B Councilor
Kenneth M. Woodland,
District D Councilor
WHEREAS, if the Arsenal Economic Development Proposal is approved by the Town of
Watertown and the Secretary, MassDevelopment will be authorized to finance up to $25 million
of costs of Arsenal Public Infrastructure Improvements through the issuance of bonds (“I-Cubed
Bonds”) payable from State Infrastructure Development Assistance from the Commonwealth that
is supported by New State Tax Revenues resulting from Eligible New Jobs created and to be
created by Developer in the Commonwealth at the Arsenal on the Charles; and
WHEREAS, if the New State Tax Revenues resulting from Eligible New Jobs created and to be
created by Developer hereafter are less than the debt service payable in any year on the I-Cubed
Bonds, the Town will be required to provide Local Infrastructure Development Assistance to
satisfy any Shortfall in accordance with an Infrastructure Development Assistance Agreement for
the Arsenal Economic Development Project among the Commonwealth, the Town,
MassDevelopment, and the Developer, who is the owner of the real property on which the Project
Components are constructed (the “Assessment Parcel”); and
WHEREAS, the Town’s obligation to provide Local Infrastructure Development Assistance will
be a general obligation of the Town secured by infrastructure assessments on the Assessment
Parcel as agreed to by Developer in the Arsenal Economic Development Proposal and by a
Municipal Liquidity Reserve created by the Town for the Assessment Parcel to be funded by
moneys or a letter of credit to be provided by the Developer of the Assessment Parcel in an amount
equal to twice the maximum amount of debt service payable on the I-Cubed Bonds in any year;
and
WHEREAS, prior to the Secretary’s final approval of the Arsenal Economic Development
Proposal, the Town Council, following a public hearing, must approve the Arsenal Economic
Development Proposal, acknowledging the financial obligation of the Town for Local
Infrastructure Development Assistance, and approve the creation of the Municipal Liquidity
Reserve and the acquisition or acceptance by the Town of such property interests in the Arsenal
Public Infrastructure Improvements as may be required under the I-Cubed Program.
NOW THEREFORE BE IT ORDERED by the Town Council of the City Known as the Town
of Watertown that the Economic Development Proposal for the Arsenal on the Charles, and the
provision of Local Infrastructure Development Assistance as provided therein, is hereby
approved with such additions, deletions and other amendments thereto, other than an increase in
the principal amount of I-Cubed Bonds for which the Town is obligated to provide Local
Infrastructure Development Assistance, as shall be approved by the Town Manager and the
Treasurer/Collector at or prior to the execution and delivery by the Town of the Infrastructure
Development Assistance Agreement (the “Agreement”) for the Arsenal Economic Development
Project, which Agreement shall contain such terms and conditions as are required and consistent
with the I-Cubed Program.
AND BE IT FURTHER ORDERED, that the creation by the Town of a Municipal Liquidity
Reserve for the Assessment Parcel to be funded by moneys or a letter of credit to be provided by
the Developer (the owner of the Assessment Parcel) is hereby approved.
AND BE IT FURTHER ORDERED, that the acquisition or acceptance by the Town of such
property interests in the Public Infrastructure Improvements that are financed by
MassDevelopment as may be required under the I-Cubed Program is hereby approved.
__________________________
Council Member
I hereby certify that at a special meeting of the Town Council for which a quorum was present, the
above Order was adopted by a vote of __ for, __ against and __ present on June 29, 2017.
______________________________ ___________________________
Marilyn W. Pronovost, Council Clerk Mark S. Sideris, Council President