Everett Mayor Carlo DeMaria
“I have been working with the proponents of The Sofia since 2022 as part of my commitment to bring diverse projects to Everett to help generate new revenue and replace run down properties with cleaner projects that represent better and higher uses of parcels in our community. I filed with the City Council a proposed Tax Increment Financing (TIF) agreement for the project that I believed was reasonable based on an independent third-party verifying on behalf of the city that that this type of agreement was appropriate given the overall financials of the project.
The TIF I submitted to the Council would have the owners of the property pay on average over the course of the 14 years of the agreement, over $600,000 per year in taxes, which is an 800% increase over the $67,000 a year that the previous blighted industrial use of the property generated. After the TIF expires, the owner will pay over $3M a year in taxes. This is a significant increase in tax revenue to the city in both the short and the long term. I also negotiated that all the work on the project would be completely done by union labor, which will create 1,342 jobs with a commitment secured from the unions that Everett union members will receive preference for those spots. The property owner also will pay for and complete a full-scale reconstruction of Garden Street Extension at a cost to them of approximately $3,000,000.
The agreement I presented to the City Council would increase revenue, uses private funds to clean up a former industrial site and make infrastructure improvements to the area, and create jobs for Everett residents. With those benefits already presented to them, it’s not clear why the Council President felt the need to save the developer an additional $156,000 in project costs by diverting what otherwise would be tax revenue for the city into a fund that she specifically is trying to control. That language would require funds to be diverted into a special fund rather than be available for the most pressing needs of the city. The language is concerning because it creates the opportunity for the Council President to spend revenue without the checks and balances that are required under municipal finance laws. Additionally, it’s not clear why the Council would think that reducing linkage fees that are specifically dedicated to addressing our affordable housing crisis should be diverted to projects that could be paid for by outside grants and established revolving funds.”
Council President Stephanie Martins
“I wanted to set a precedent for developers to know that they have to give back to the community if they want to build here. I just could not consider another development where the people of Everett were not getting anything. Tax funds get lost in the general fund, so we needed something tangible that could be controlled by the council and requested directly by the people and departments. This is just one development, imagine if the council was part of all the community and host agreement negotiations. It is simple, either the needs of the community are addressed to the highest extent where the project is still financeable, or the proposal will not be considered.
I do want to thank Fulcrum, for being open to the Council’s requests and for coming to the table to negotiate this benefits agreement.”