[Adopted 6-7-2011 by Ord. No. 119-2011]
As used in this article, the following terms shall have the meanings indicated:
BOARD
The Tax Increment Financing Board established by this article.
TAX INCREMENT FINANCING
Any form of tax exemption established by the commonwealth which authorizes the City to exempt property or portions thereof from tax increases, whether now existing or created after the effective date of this article.
TIF
Tax increment financing.
A. 
Whenever, under any general or special law, or regulation of any agency of government, the Council and Mayor authorize the City to enter into a tax increment financing agreement, the Mayor and Council President shall appoint a five-member board for the purpose of establishing the terms of the agreement in accordance with the provisions of this article and the statutes and regulations of the commonwealth. The Board shall not be a permanent board but will be appointed to consider, negotiate and approve the agreement authorized by the Mayor and Council.
B. 
The Tax Increment Financing Board shall consist of the Mayor, or his or her designee, a City Councilor appointed by the Council President, the Chief Assessor of the City or another member of the Board of Assessors appointed by the Chief Assessor, and two persons appointed by the Mayor, one of whom shall be a financial professional and one of whom shall be a resident of the City who pays real estate taxes. The latter two mayoral appointees will be appointed subject to confirmation by the Council. The mayoral appointees shall be designated in his or her petition to the Council for its approval.
[Amended 6-3-2014 by Ord. No. 100-2014]
C. 
The City shall not enter into a tax incentive agreement unless it and the project to which it relates are approved by a majority of the members of the Board in accordance with the statutes and regulations of the commonwealth and the ordinances of the City.
D. 
The agreement shall require the following:
(1) 
A time frame within which a specific number of new jobs will be created within a three-year period from the date the agreement is executed.
(2) 
Written reports on a quarterly basis describing the number of jobs created or retained. These reports shall be given to both the City Council and Mayor and shall be audited by the Treasurer/Collector.
(3) 
Tax increment exemptions from property taxes, under MGL c. 59, § 5, Clause Fifty-first, for a specified term not to exceed 15 years, except as otherwise provided in this article, for any parcel of real property which is located in the TIF zone and for which the agreement is to be executed with the owner of the real property.
(4) 
Specify the level of the exemptions expressed as exemption percentages, not to exceed 100%, to be used in calculating the exemptions for the parcel, and for personal property situated on that parcel, as provided under MGL c. 59, § 5, Clause Fifty-first. The exemption for each parcel of real property shall be calculated using an adjustment factor for each fiscal year of the term of the agreement equal to the product of the inflation factors for each fiscal year since the parcel first became eligible for an exemption. The inflation factor for each fiscal year shall be a ratio:
(a) 
The numerator of which shall be the total assessed value of all parcels of commercial and industrial real estate that are assessed at full and fair cash value for the current fiscal year minus the new growth adjustment for the current fiscal year attributable to the commercial and industrial real estate as determined by the Commissioner of Revenue under MGL c. 59, § 21C(f); and
(b) 
The denominator of which shall be the total assessed value for the preceding fiscal year of all the parcels included in the numerator; provided, however, that the ratio shall not be less than 1.
(5) 
Any standard term or language required by the regulations of the Massachusetts Housing and Community Department, or any successor department, whether as currently promulgated or as may from time to time be amended.
E. 
The Board shall use the standards of this section as nonbinding guidelines in establishing TIF exemptions:
[Amended 3-18-2014 by Ord. No. 036-2014]
(1) 
If the agreement provides for the creation of 10 jobs or less, it will be a five-year agreement with an exemption of 25% in the first year; 25% in the second year; 25% in the third year; 20% in the fourth year; and 5% in the fifth year.
(2) 
If the agreement provides for the creation of 11 to 39 jobs, it will be a five-year agreement with an exemption of 100% in the first year; 75% in the second year; 50% in the third year; 20% in the fourth year; and 5% in the fifth year.
(3) 
If the agreement provides for the creation of 40 jobs or more, the agreement may be as negotiated for up to 20 years.
F. 
No TIF shall be used for residential construction or acquisition.