A new report is calling for major investment into redeveloping the real estate market in Massachusetts’ so-called “Gateway Cities.”
Boston-based policy institute MassINC released a report Thursday calling for $1.7 billion to strategically revitalize former manufacturing centers like New Bedford, Springfield and Worcester.
Ben Forman, Executive Director of MassINC’s Gateway Cities Innovation Invitation Institute says redeveloping these cities is critical to the future of the state’s economy, but a lot of work needs to be done to make them more attractive for businesses and potential homebuyers
"The essential problem is that in these markets, the rents that you can get in space aren’t sufficient to cover the cost of construction," Forman said. "So we’re talking about rebuilding places and cities that right now have a fabric that was for an economy that changed decades ago. We need to close those gaps."
MassINC’s report proposes a program that includes a combination of public funding and loan guarantees, tax incentives, regulatory reform, and technical assistance. Forman says state revenue could be used more efficiently.
"There’s a lot of existing resources that can be better coordinated and targeted strategically. Now is a very good time for the state government to borrow money. Interest rates are very low so if you’re talking about being a patient investor in projects that are going to take a while to produce returns, it’s an excellent time to borrow.
Together, the package amounts to $1.7 billion over a ten-year period and is predicted to stimulate approximately $3.4 billion in new development and reuse.
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