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Response to criticisms of An Act Relative to Special Development Districts, so-called 40T developments
   

CLAIM

“allows critical functions of local democratic government to be replaced by the rule of unelected developers with personal financial interests to advance.”

NOT TRUE

Special Development District will only have power to finance and build needed public infrastructure for the development. The powers and process for receiving these powers are clearly established in the law and can only be used to carry out the betterment that the city or town government has approved. 

The Powers are:

  1. Assess and collect infrastructure Assessments
  2. Collect debt
  3. Create by-laws to enforce the collection of funds relating to improvements
  4. Adopt an official seal and maintain an office 
  5. Enter into contracts with municipalities and other organizations to carry out improvement plan
  6. Purchase, lease or acquire land by gift that is related to the stated purpose of the improvement plan
  7. Power to carry out construction relative to the improvements of the districts. It would be subject to the Uniform Procurement act, fair wage and competitive biding laws
  8. Disperse money made by the district
  9. To sue and be sued in own name
  10. Invest funds of the local development district
  11. Employ Staff to Manage the District
  12. Procure Insurance against loss or liability
  13. Apply for loans and grants from governmental agency

 

CLAIM

“Would eliminate accountability, transparency, and public participation in critical decision-making” 

NOT TRUE

At least 80% of local property owners and a city or town’s city council, board of selectmen, or town meeting must approve the creation of a special development district. These districts would still need to appear before all relevant local boards as their building project progressed. This process simply allows willing property owners to finance specific infrastructure that a city or town may not otherwise be able to finance.

Process of Creating a Special Development District

1) Land Owners submit an “Improvement Plan”. Owners of at least 80% of the acreage in the subdivision would submit an "Improvement Plan" to a city or town. The Improvement Plan would:

  • Establish the types of improvements to be undertaken
  • Establish the boundaries of the district
  • The Method of assessing the financing.

2) Public Hearing. The city or town would schedule a public hearing, adhering to strict publicity guidelines. 

3) Municipal Approval. If 100% of the property owners submit the plan, then the city council or board of selectmen would approve the creation of the district. If less than between 99% and 80% of the property owners submit the plan, either the city council or town meeting would need to approve the plan. No plan can move forward without at least 80% of the owners in support. 

CLAIM

“Chapter 40T would strike at the heart of New England grassroots democracy. “Special Development Districts” would effectively constitute new developer-run municipalities”

NOT TRUE

They require local approval. They are the product of local property owners coming together to finance a project that will mutually benefit them and the tax base of the city or town. The districts would still have to meet every other zoning and permitting requirement. They would need to appear before boards of health, conservation commissions, zoning boards and seek any other relevant state or local permit. 

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