After reviewing the available information, the Town of Ayer Finance Committee opposes the proposed development to Vicksburg Square. Trinity Financial’s plans for 246 units will have a detrimental impact on the community.
* The increase in the area population by an estimated 8% for Ayer will increase the need for services at Vicksburg Square. Police, fire, and DPW will require budget increases which are not adequately offset by the low tax revenue.
* The school population will increase between 77 and 120 students. According to ConsultEcon, engaged by Trinity Financial to provide economic and feasibility analysis, the cost of education the students will exceed $1.5m. While there will be an increase in Chapter 70 money received from the Commonwealth of Massachusetts, the shortfall cannot be made up with the low tax revenue.
* The influx of cash into the local economy is stated to be $6m to $8m according to Trinity Financial. Disposable income is defined as income less taxes. After paying for rent, transportation, insurance, and other necessities, the economic impact to the local economy will be minimal.
* An increase of 246 rental units will over saturate the local real estate market. Given the current economic state, the real estate market is flush with unoccupied rentals. Adding an additional 246 units increases the likeliness that the market for rental units within the town itself will remain stagnant as the economy improves.
* The development is not financially feasible due to the component of 80% low income housing. Assessed taxes for income property are based upon revenue using the “Capitalization of Income” basis. The low rental income reduces the anticipated tax revenue to approximately $210,000 per year.
CHAIRMAN BRIAN MULDOON
VICE CHAIRMAN SCOTT HOUDE
Ayer Finance Committee