The URL can be used to link to this page

Home My Public Portal About2016-12-07 Small Business /1630 Watertown Town Council Administration Building 149 Main Street se Co Watertown, MA 02472 Phone. 617-972-6470 ELECTED OFFICIALS: Committee on Economic Development and Planning Mark S.Sideris, Meeting: December 7, 2016 Council President Report: January 10, 2017 Vincent J.Piccirilli,Jr., The Committee convened at 7:00 pm on Wednesday December 7, 2016 in the Richard E. Vice President Mastrangelo Council Chamber. Present were Susan Falkoff, chair; Kenneth Woodland, Michael F.Dattoli, vice-chair; and Vincent Piccirilli, secretary. Staff present were Stephen Magoon, Director of Councilor At Large Community Development&Planning/Assistant Town Manager; Thomas Tracy, Town Auditor/Assistant Town Manager for Finance; and Francis Golden,Town Assessor. Also Councilor At Large Aaron Dushku, present were Council President Mark Sideris, Councilors Aaron Dushku and Lisa Feltner, Licensing Board Chair Donna Doucette; Roberta Miller, Executive Director of the Mosesian Susan G.Falkoff, Center for the Arts; and members of the public (see sign-in sheet). Councilor At Large Anthony Palomba, A copy of the posted agenda is attached. Councilor At Large 1. Small Business Tax Exemption Angeline B.Kounelis, Councilor Dushku had made a referral asking the Town Council to consider whether we District A Councilor could help small businesses by taking advantage of a state program that allows a small Lisa J.Feltner, business tax exception for business owners whose property is valued under$1,000,000 and District B Councilor whose business has fewer than ten employees. Kenneth M.Woodland, District D Councilor Mr. Golden introduced the topic,referring to the May 12, 2015 document(attachment A) showing 128 properties would meet the initial criteria for eligibility while noting, however, that he would need to visit and audit each of those businesses to determine if they qualify. Key discussion points included: 1. Each small commercial business would need to be visited and audited by the Assessor each year to determine if they would qualify for that year. 2. The exempted taxes are shifted onto the non-exempt commercial properties, increasing their taxes. 3. Most small businesses in Watertown do not own their buildings, so not only would they not qualify for the exemption,but taxes on their buildings would increase. 4. Many of the 128 eligible small properties are not owned by Watertown residents, unlike properties that qualify for the residential exemption. Mr. Tracy stated that it was the Administration's recommendation to not implement this as it would be very labor intensive for the Assessor's staff, it would increase taxes on most businesses in Watertown, and it would not provide tax relief to most Watertown business owners. 4 Action Item: Councilor Piccirilli made a motion, seconded by Councilor Woodland, to recommend to the Town Council that the Small Business Tax Exemption not be adopted. The motion was affirmatively voted 3-0. Page 1 of 3 Committee on Economic Development and Planning Report January 10, 2017 2.Increasing the Commercial/Industrial/Personal Property tax shift from 175% to 185% Watertown taxes Commercial/Industrial/Personal Property at a rate 175%higher than residential property. This shift is the maximum allowed by the state but Councilor Dushku made a referral asking the Town Council to consider raising the shift to 185% in order to offer residential property owners relief. This would require a Home Rule Petition to the Massachusetts legislature. Mr. Golden provided an overview of the C-I-P tax shift, and how the apparent increase in the aggregate residential tax burden reflected two trends—residential properties increased in value faster than commercial &industrial properties, and over the past several years,many large commercial & industrial properties were converted to residential complexes (attachment B). President Sideris stated that Watertown has been encouraging commercial development as part of its economic development plan, and doing this would send the opposite message to the business community. Mr. Tracy stated that it was the Administration's recommendation to not proceed with this. 4 Action Item: Councilor Piccirilli made a motion, seconded by Councilor Woodland, to recommend to the Town Council to not proceed with a Home Rule Petition to increase the C-I-P shift to 185%. The motion was affirmatively voted 3-0. 3. Supplemental Fees for Liquor Licenses Mr. Magoon described how Watertown's successful Home Rule Petition(Chapter 73 of the Acts of 2016) for new non-transferable liquor licenses allowed the Town Council to impose a supplemental fee that could be up to two times the annual fee set by the Licensing Board. The supplemental fees would go into an economic development fund(attachment Q. Key discussion points included: 1. The current annual fee for a 7-day all-alcohol Common Victualler license is $2,700, and is $2,200 for a 6-day license. 2. The annual fee set by the Licensing Board for a general premises license for use during events by the Arts Center at 321 Arsenal St is $500. 3. Mr. Tracy stated that if the Town Council votes to impose the supplemental fee, he would set up a revolving fund to accrue and disburse the funds. 4. The intended purpose of the supplemental fee is to "level the playing field" for existing business owners who obtained their traditional licenses under Chapter 138. Mr. Magoon recommended setting the Common Victualler fee at two times the base fee ($5,400 per year for a 7-day license). 4 Action Item: Councilor Piccirilli made a motion, seconded by Councilor Woodland, to recommend the Town Council set a supplemental fee for a Common Victualler all-alcohol license at two times the base fee. The motion was affirmatively voted 3-0. Councilor Piccirilli recused himself for the discussion of the Arts Center since he serves as Treasurer on its Board of Directors. Page 2 of 3 Committee on Economic Development and Planning Report January 10, 2017 Ms. Miller spoke about the unique nature of the Arts Center as a non-profit organization,where alcoholic beverages could only be served in conjunction with specific arts events, as incidental to its primary mission. Ms. Doucette said that the Licensing Board had imposed a minimal annual fee in consideration of this use which was not competing with area restaurants holding new or traditional licenses. 4 Action Item: Councilor Woodland made a motion, seconded by Councilor Falkoff,to recommend the Town Council waive a supplemental fee a general premises license for the Arts Center at 321 Arsenal St. The motion was affirmatively voted 2-0. Councilor Piccirilli returned. The meeting adjourned at 8:40 pm. Report prepared by Vincent Piccirilli, with assistance from Kenneth Woodland who took notes on the Arts Center discussion. Page 3 of 3 ff Aa, LL) C- AA a 6 Tc ��ti/L �QI�'�� I ► lfd�l+F� ' �� ( !l f 5 C .�� L'r J_- �� t- 11 I I`�- '--� ��Dzrs2'7 i �7..s� f�+d� �-' ►`�vW RECEIVED BY TOWN CLERKS OFFICE Watertown Town Council WATERTOWN, MASS Administration Building 2016 NOV 15 AM 9: 46 149 Main Street Watertown, MA 02472 ELECTED Phone: 617.972.6470 OFFICIALS: Mark S.Sideris, Council President MEETING NOTICE Vincent J.Piccirilli,Jr., COMMITTEE ON ECONOMIC DEVELOPMENT AND PLANNING Vice President WE,DNESDAY,DECEMBER 7,2016,7:00 P.M. Michael F.Dattoli, RICHARD E.MASTRANGELO COUNCIL CHAMBER Councilor At Large ADMINISTRATION BUILDING Aaron P.Dushku, Councilor At Large Susan G.Falkoff; Councilor At Large AGENDA: Anthony Palonrba' 1. Whether to Offer a Small Business Tax Exemption for Qualified Business Owners Councilor At Large Whose Property is Valued Under$1,000,000 and Whose Business Has Fewer Than Angeline B.Kounelis, Ten Employees. District A Councilor Lisa J,Feltner, 2. Currently, Watertown Taxes Residential To Commercial/Industrial/Personal District B Councilor Property at A Rate 1.75%Higher Than Residential Property. This Shift is the Kenneth M.Woodland, Maximum Allowed by the State but the Shift Could Potentially Go to 1.85 if the District D Councilor Town Council Votes to Ask the Legislature for a Higher Rate Via a Home Rule Petition. 3. (To Begin No Earlier Than 8:00 P.M.): Setting Fees for the Non-Transferable Liquor Licenses That Were Approved by the General Court Via a Home Rule Petition. Councilor Susan G.Falkoff, Chair cc: Honorable Town Council Committee Members: Susan G. Falkoff, Chair KennethM. Woodland, Vice-Chair Vincent J Piccirilli, Jr., Secretary TUESDAY,MAY 12,2015 PROPOSED-SMALL COMMERCIAL EXEMPTION EXEMPTION QUALIFICATIONS: ' To receive a small commercial exemption granted for the fiscal year,a Class Three,Commercial,parcel must be occupied as of January 1 by a Business with an average annual employment of no more than 10 at all locations during the previous calendar year,and have a property valuation of less than$1,000,000. The Department of Unemployment Assistance(DUA)is required by law to supply to the Chairman of the board of assessors of each city and town a list of all employers located in that municipality that qualify as a small business under Chapter 59,by reason of having had an average of ten or fewer employees in the past calendar year. The Town of Watertown as of September 2014,had 346 employers in our community that meet this definition.An extensive review of the(DUA)list by Assessors Office has determined 128 employers met the preliminary class and value standards.The chart below shows the Small Commercial Exemption Impact on the Commercial and Industrial property owners. SMALL COMMERCIAL EXEMPTION(SCE)-WATERTOWN PARCELS USE CLASS COUNT SCE % SCE VALUE USE VALUE % a MILLION % 013-031 COMMERCIAL 80 39 0.49 $12,962,380 $201,724,206 0.06 8 0.10 014-041 INDUSTRIAL 8 0 0.00 $0 $2,472,490 0.00 3 0.38 300-393 COMMERCIAL 361 89 0.25 $50,536,400 $473,826,100 0.11 97 0.27 400-452 INDUSTRIAL 82 0 0.00 $0 $240,773,100 0.00 46 0.56 TOTALS 531 128 0.24 $63,498,780 $918,795,896 0.07 154 0.29 ELIGIBLE PARCELS 441 I 128 0.29 I I 105 0.24 f SMALL COMMERCIAL EXEMPTION AT 10% r $6,349,878INEW C/I TAX RATE$28.00 !I $177,79fi.58 .13 CENT INCREASE COMMERCIAL/INDUSTRIAL IMPACT IN TAX$ VALUE FY15$27.87 FY15$28.00 TAX RIFF FY15$28.00 TAX RIFF WITH SCE WITH SCE WITHOUT SCE WITHOUT SCE FY15 TAX RATES $500,000 $13,935.00 $12,600.00 -$1,335.00 $14,000.00 $65.00 RES TR 15.03 $750,000 $20,902,50 $18,900.00 -$2,002.50 $21,000,00 $97.50 $1,000,000 $27,870.00 $25,200,00 -$2,670.00 $28,000.00 $130.00 COMM TR 28.00 $1,250,000 $34,837,50 $35,000.00 $162.50 $35,000.00 $162.50 IND TR 28.00 $2,000,000 $55,740.00 $56,000.00 $260.00 $56,000.00 5260.00 PP TR 27.87 $3,000,000 $83,610.00 $84,000.00 $390.00 $84,000.00 $390.00 FULL FAIR CASH VALUE PERCENTS FISCAL RES% YEAR CIP% YEAR RANK YEAR VARIANCE VARIANCE VARIANCE 2017 81.43830 0.30690 18.56170 -0.30690 11 2016 81.13140 -0,11760 18.86860 0.11760 15 2015 81,24900 0.53340 18.75100 -0,53340 5 2014 80.71560 -0.46740 19.28440 0,46740 7 2013 81.18300 0,27390 18.81700 -0.27390 12 2012 80,90910 0.32400 19.09090 -0,32400 10 2011 80.58510 -0,46440 19.41490 0.46440 6 2010 81.04950 -0.25230 18.95050 0.25230 14 2009 81.30180 0.36370 18.69820 -0.36370 8 2008 80.93810 -0,54270 19.06190 0,54270 4 2007 81.48080 -0.33220 18.51920 0.33220 9 2006 81,81300 0.61070 18.18700 -0,61070 3 2004 78,52620 1.98600 211.47380 -1,98600 2 I 2003 76,54020 -0.25460 23.45980 0,25460 13 2002 76.79480 23.20520 AVERAGE 80.42864 0.30957 19.57136 -0.30957 1 H 3975 Attachment C Chapter 73 of the Acts of 2016 T H E C O M M O N W E A L T H O F M A S S A C H U S E T T S rn the one Hundred and Eighty-Ninth General Court AN ACT AUTHORIZING THE CITY KNOWN AS THE TOWN OF WATERTOWN TO GRANT 15 ADDITIONAL LICENSES FOR THE SALE OF ALCOHOLIC BEVERAGES TO BE DRUNK ON THE PREMISES. Be it enacted by the senate and House of .representatives in General Court assembled, and by the authority of the same, as follows: SECTION 1. (a) For purposes of this act, the word "map" shall refer to the map entitled "Watertown Proposed Liquor License Area Locations," dated December, 2014, a copy of which is on- file in the office of the town. clerk. (b) Notwithstanding section 17 of chapter 138 of the General Laws or any other general or special law to the contrary, the licensing authority of the city known as the town of Watertown may grant 15 additional licenses for the sale of all alcoholic beverages to be drunk on the premises pursuant to section 12 of said chapter 138, subject to the following conditions: (1) One license may be granted to each of the following 4 locations: (a) the premises located at 321 Arsenal street, currently the Arsenal Center for the Arts; (b) the approved project located at 202 Arsenal street, for restaurant use; (c) the approved project located at 570 Arsenal street, for hotel use; (d) the approved project located at 60 Howard street, for restaurant use. (2) Not more than 2 licenses may be granted to establishments located within the Watertown square or Coolidge square area, the boundaries of which are shown on the map. (3) One or more licenses may be granted to establishments located within the West End Riverfront area, the boundaries of which are shown on the map. (4) Not more than 8 licenses may be granted to establishments located within the Arsenal Corridor Regional Malls area, the South Square area, the Union Market area, the Arsenal North area, and the Coolidge Hill area, the boundaries of which are shown on, the map. (c) The licenses issued pursuant to subsection (b) shall be subject to all of said chapter 138 except said section 17. SECTION 2. (a) Once a license is granted pursuant to this act, the licensing authority shall not approve the transfer of the license to any other location or area, but it may grant the license to a new applicant under the same conditions as specified . in this act if the applicant files with the H 3975 licensing authority a letter from the department of revenue and a letter from the department of unemployment assistance indicating that the license is in good standing with those departments and that all applicable taxes , fees and contributions have been paid . No license granted hereunder may be sold or otherwise transferred for financial consideration . (b ) If a license granted pursuant to this act is cancelled , revoked or no longer in use , it shall be returned physically , with all of the legal rights , privileges and restrictions pertaining thereto , to the licensing authority and the licensing authority may then grant the license to a new applicant under the same conditions specified in this act . SECTION 3 . Notwithstanding section 12 of chapter 138 of the General Laws , the licenses authorized by this act shall be subject to a supplemental annual fee , to be set by the town council , in addition to the annual fee for existing alcoholic beverage licenses in the city known as the town of Watertown , but not to exceed 2 times the amount payable for such an existing license for the applicable license year . The additional revenue from these fees shall be deposited into an economic development account in the city known as the town of Watertown and be expended consistent with the purposes of that account . SECTION 4 . This act shall take effect upon its passage . Hct� e Q 3 % House of Representatives , 2016 . � Passed to be enacted , �/� j/ e�G J . , Speaker . jIn S nate , MQd)3>1 2016 . Passed to be enacted , Pr i ent . 7 2016 , Approved , at o ' clock and Y(minutes , / M . Governor . 2