Value Capture Commission
October 7, 2014, 1:00 p.m.
MassDOT Boardroom, 3rd floor
Ten Park Plaza
Boston, MA 02116
Members:
Present:
Meeting Minutes
Commission Chairman Jeffrey Simon, Brenda Cameron, Joe Bonfiglio, Tom
O’Brien, Rick Dimino, Marc Draisen
Chairman Simon, Commissioner Cameron, Commissioner Bonfiglio,
Commissioner O’Brien, and Commissioner Dimino
(Commissioner Draisen was not present).
Quorum Present:
Yes
Other Participants:
Secretary Richard Davey, Owen Kane
Others Present:
Sue McGurkin
PROCEEDINGS:
I.
Call to Order by Chairman Simon
Chairman Simon called the meeting to order.
II.
PROCEDURAL ITEMS
The meeting began with opening statements from each of the Commission Members. Chairman
Simon introduced himself as Assistant Secretary of MassDOT’s Office of Real Estate and Asset
Development.
Commissioner O’Brien’s company is the HYM Investment Group, a real estate company based in
Boston and Commissioner O’Brien state that he is honored to be a part of the Value Capture
Commission.
Commissioner Dimino is part of A Better City, whose board members are business and institutional
representatives from the greater Boston area.
Commissioner Cameron is the deputy chief of the Bureau of Local Assessment for the Massachusetts
Department of Revenue and is Secretary Shor’s designee.
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Commissioner Bonfiglio heads up the Massachusetts Northern New England Laborer’s Council, which
represent nearly 20,000 members mostly in construction and public sector. Commissioner Bonfiglio
has had the pleasure of sitting on the MassDOT Board and looks forward to sitting on this
commission.
Next Secretary Davey thanked the Commissioners for serving. The Secretary encouraged the
Commission to be creative in finding alternative ways of financing transportation projects that will
not only impact the entire Commonwealth, but will also help to create jobs and economic
opportunity. The Secretary commented that the Commission has an opportunity to help
Massachusetts take the lead in creating value capture policies that will maximize the ability to deliver
projects that will lift communities across the Commonwealth. The Secretary also encouraged the
Commission to take advantage of Commissioner Bonfiglio’s role on the MassDOT Board, particularly
in linking the Commission’s work directly with the MassDOT Board. Finally, Secretary Davey
recognized the presence of the Commonwealth Magazine in the audience.
Next Chairman Simon recognized guests at the meeting - Andrew Brennan of the MBTA, Justin Balik
of A Better City and Eric Bourassa, Transportation Director for Metropolitan Area Planning Council;
Eric recognized his boss, Commissioner Draisen was unable to attend and expressed his appreciation
for being part of the Commission.
Next Chairman Simon noted that one additional Commission member is still completing paperwork
and will be joining the Commission once it is finalized.
Next Chairman Simon stated that this Commission is tasked with looking at the lifecycle of how
transportation investments create value and how that value is returned to transportation
investments.
Next Chairman Simon asked each member to provide introductory statements, including why each
Commissioner is here; what his/her background brings to the discussion and overall, where does the
Commission need to go.
Commissioner O’Brien’s company is involved with several related projects that can assist in assessing
what the private sector sees as financeable and doable as related to capturing value. Commissioner
O’Brien noted that transportation infrastructure in Massachusetts is the most important economic
tool at the Commonwealth’s disposal.
Commissioner Dimino described how A Better City’s board represents the major sectors of the real
estate and land development space from property owners to large scale tenants. Transportation is a
critical resource to serving the economy, and it is the number one priority of the board’s mission.
Massachusetts is a global competitor, and transportation faces challenge despite a funding boost
from the last legislature. The Value Capture Commission is an added resource for looking at the
transportation finance picture. Commissioner Dimino is pleased to be part of commission and thanks
the Governor and Secretary for the opportunity to serve.
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Commissioner Cameron also thanked the Governor and Secretary of the opportunity to serve on the
Commission. Commissioner Cameron’s background is in real estate valuation for both commercial
and residential properties. Her charge at the Bureau of Local Assessment is to oversee every city and
town’s assessing office for uniformity and equity. Commissioner Cameron looks forward to seeing
how the effect on the valuation of properties that abut the transportation infrastructure.
Commissioner Bonfiglio stated that the Massachusetts Northern New England Laborer’s Council
represents many middle class construction workers who not only depend upon transportation to get
to work, for also for the work itself. The members work on vertical and horizontal construction
projects around the Commonwealth and transportation is an integral part. Transportation spending is
a huge multiplier in state and Commissioner Bonfiglio better understands the funding challenges and
need to maximize dollars that you do have via his work on the MassDOT Board.
Next Chairman Simon provided examples of value capture in Massachusetts and issues the
Commission will need to address. Chairman Simon cited the Silver Line in the Seaport; increased in
property values in Davis Square after the Red Line was installed; Boston Landing whereby a private
company is building a new station at its expense and Assembly Square where by developer made a
financial contribution. Chairman Simon went on to describe the challenge that increased ridership of
the MBTA presents, as fares alone do not pay for the cost of operating and maintaining the
transportation system. Chairman Simon stated that MAPC’s paper included in their packet provides
examples on how to capture value, e.g. Business Improvement Districts and Public/Private
Partnerships, which will assist them in making recommendations to the legislature.
Next Chairman Simon asked the Commissioners to discuss their essential items to include in the Value
Capture Commission statement of what they are about.
Commissioner Dimino stated that they should have full understanding of both national and global
value capture strategies, as well as rank the viability of current value capture strategies in
Massachusetts in order to make recommendations to improve, enhance or eliminate such policies.
Eric Bourassa of MAPC addressed the Commission and provided them with document, “A Guidebook
of Massachusetts’ Public Financing Programs for Infrastructure Investment,” which describes different
public financing mechanisms in Massachusetts and he also described some methods employed in
other states.
Next the Owen Kane briefed the Commission on the Ethics Commission’s Rules and Regulations, the
Open Meeting Law and the Public Records Law.
Next Commissioners O’Brien and Dimino discussed using prospective projects as case
studies/forecasts for potential value capture strategies.
Next Commissioners Dimino, O’Brien and Bonfiglio stated the need to understand the metrics related
to real estate values of property near transportation stations and how it should be captured.
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Next Commissioner Bonfiglio discussed MassDOT’s Public Private Commission and if there could be
some formal integration with the Value Capture Commission.
Next Commissioner Dimino stated that the Commission should also address how development near
transit stations not only increases the real estate value, but also increases sales, income and creates
jobs creation (as measured in I-Cubed).
Eric Bourassa addressed the Commission regarding the environmental process for development
projects MEPA) and using it to encourage developers to support the transit system as mitigation.
Next Chairman Bonfiglio raised the possibility of the 2024 Olympics coming to Boston and for the
Commission to keep that in mind as it deliberates potential value capture strategies and how it could
impact development across the city.
Chairman Simon ended the meeting discussing the meeting schedule.
III.
Meeting Adjourned.
Documents
Enabling Legislation – An Act Relative to Transportation Finance, Chapter 46 of the Acts of 2013
“Understanding Value Capture as a Transportation Finance Strategy in Massachusetts”
“New commuter rail station gets initial approval for Brighton”
“The Seaport’s Silver Line Solution”
“New MBTA Station The Capstone of Somerville’s Assembly Square Development”
“A Guidebook of Massachusetts’ Public Financing Programs for Infrastructure Investment”
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