Citizens Referendum to Keep our Tax Money Home

The Citizens Referendum circulating now seeks to overturn the recent 8-1 City Council vote to approve a $2.3 million TIF for the mall, a 12-year, 50% tax reduction, “…for the DeMoulas facility and any other development associated with the project.” Prior to casting his dissenting vote, Councilor Ciolino noted that he could not ignore citizens’ objections to the project.

According to the City’s Charter, if 2100 people, or 10% of the City’s registered voters, sign the Referendum by December 24, the Council will have to either rescind their $2.3 pro-TIF vote, or put the question to a public ballot. This is not a petition against the mall or any of its businesses; it is against offering unfair tax breaks to private, profitable companies. Petitions are located in at least 20 businesses around the city. Signatures are nearing the half-way mark.

Think about how the TIF will play out in the long term. The mall will contain over 20 stores. When TIF subsidies extend to “any other development” like maybe Home Depot or Kappys or 99 Restaurant, what other local businesses might shutter, causing a net loss in jobs and tax revenues on the island when local and competing businesses which are not favored with tax subsidies, close? What other costs might ensue on the island in such a scenario? The Referendum is a logical way to keep our island economy intact.

Dissenting voices have been heard but not heeded for years. I attended a City Hall meeting in June, 2007, where most speakers objected to the mall because of traffic gridlock, water usage, impact on emergency services, environmental concerns, adverse impact on local businesses, and the sacrifice of our island’s character. Still, the vote went to the mall. Disbelievers gathered afterwards, some in tears, others resigned to “politics as usual.” “How can we make them listen to us?”

Park’s bulldozers cranked up last May, prior to a TIF vote, and before the awarding of $2.2 million in state tax monies (the MORE grant, dependent on the local TIF). That’s $4.5 million tax dollars in play. We focused on one issue: Opposing the awarding tax dollars to the mall, naming ourselves after NYT reporter David Johnston’s book “Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and Stick you with the Bill).” He reveals the widespread practice of chainstore developers using public money to drive local businesses under.

Can a City that cannot fund its library, keep its fire stations open, and educates its schoolchildren in trailers afford to sacrifice millions in its tax dollars? DeMoulas grossed $2.7 billion in 2007, operating 59 stores in communities without receiving TIFs. Trying to get into Gloucester for years, they’ve spent millions already. The mall has gotten preferential treatment: $14K sewer hookup fee (below what many homeowners pay) and additional school lands. DeMoulas will open regardless of a TIF. Why offer them 12 years of tax forgiveness too?

Citizens crowded City Hall at the October Public Hearing. Again the arguments against subsidizing Park’s project, which has now postponed original plans for an assisted living facility and business hotel in favor of a DeMoulas-anchored retail mall. City Historian Joe Garland called the tax subsidy “The biggest ripoff the City has ever seen.” The councilors’ 8-1 vote suggests that the majority of them dismissed citizens’ concerns.

Money is power. Millions of dollars are on the table, affecting the way people behave, compromising rational behavior and instilling fear. One No Free Lunch member lost her job here for being “too political.” A store owner confided that he supports the Referendum, but keeps the petition under the counter, fearful of retaliation. Another spoke of harassment; others indicated the danger of mixing politics and business.

The Citizens Referendum offers those who want to keep our tax millions home a firm and final opportunity to keep local control of our tax dollars, putting that much-needed money to work on public services, sewers, schools. Find a petition and sign it.