Through a grant from the U.S. Environmental Protection Agency (EPA), Somerville administers its BCRLF program in order to provide funding for site remediation. The BCRLF can be utilized by itself or in combination with Somerville's BEDP.

The BCRLF represents a vital tool for local economic development, particularly since commercial lenders are generally hesitant to fund environmental cleanup activities when lending on real estate development projects. The program provides short term loans to brownfield redevelopers for actual environmental remediation activities on properties in Somerville. Cleanup activities must be completed in accordance with all federal and state regulations and within 12 months from the date that onsite cleanup activity is initiated.

Primary goals of the state's EDIP and Somerville's TIF program include overall job creation and growth of the local commercial tax base. Under the EDIP/TIF program, a commercial or industrial business or developer planning to make a substantial investment in building improvements or equipment purchase is eligible for special tax incentives. First, the additional local property tax assessment that results from the development investment and project improvements is phased-in over a period of years rather than added at the immediate completion of the project. (The pace of the phase-in is negotiated between the City and the business/developer applicant based on the project need and jobs being created. This allows the addition to the property tax bill (the tax "increment") to be phased in gradually, as the project or business gains financial strength. Revenue during a project's early years is thus available to finance other project costs. A second benefit from the EDIP/TIF program involves a 5% state investment tax credit on the total investment in eligible property improvements and equipment.

For more information please contact:

Steven Azar,

Economic Development Specialist

sazar@somervillema.gov

617 625 6600 ext 2500