State outlines rules for $250m development program
Governor Deval Patrick's administration today released new regulations governing a $250 million state program to pay for road improvements and other upgrades needed to support development projects across the state.
The regulations, attached to a law known as I-cubed, give priority to projects in economically distressed communities and dedicate state funding to developments that comply with "green" building standards.
"The projects I-cubed will help are those that will produce jobs and new local and state revenues," said Lieutenant Governor Timothy Murray. "They are projects that are smart investments and those that otherwise would not be possible.”
The I-cubed law creates a new way to finance infrastructure improvements for private development projects. Upgrades will be paid for using tax revenue generated by the new development. While a project is under construction, the developer pays the debt costs for the infrastructure upgrades. Once it is completed, the state takes over the debt payments, with the municipality covering any shortfall between the state revenues and actual costs.
Developers whose projects require at least $10 million in infrastructure improvements must apply for funding from the state.
(By Casey Ross, Globe staff)
