New financing plan to aid museum, town operations

The Select Board is now considering whether to support a May town meeting article that could change the financing of the bond obligation for the town-owned Paul Revere Heritage Park.

The Revere museum is slated to open in 2025.

If approved by town meeting voters, the plan would help fund the construction of the Paul Revere Museum of Discovery and Innovation, which will be located inside the yellow barn at the Revere Heritage Site, while also providing $850,000 for municipal and school operations beginning in Fiscal Year 2025.

Under the original financing agreement approved by voters in 2015, a District Improvement Financing (DIF) plan was established that enabled the town to purchase the property through the capture of new tax revenues generated by the development of the site.

The original plan had called for the $6.6 million bond to be paid off by FY2030, at which point all tax revenues would revert to the town’s general fund. Since 2015, Canton Holdings, the developer of the site, has successfully satisfied the infrastructure requests of the town and the Select Board approved the transfer of both the barn and Revere rolling mill building (currently housing Northern Spy restaurant) from Canton Holdings to the town.

The new financing plan would create an additional $2 million bond, which would carry an interest obligation of $800,000. If town meeting voters approve the new DIF, Finance Director Randy Scollins said both the original $6.6 million bond and the new $2 million bond, plus interest on both, would be fully repaid by FY2046.

Scollins said there is no impact on taxpayers because the proposal is not a new tax.

Victor Del Vecchio, former Select Board member and a board member of the Revere & Son Heritage Trust who made the presentation to the Select Board on April 9 along with Alan Hines, said the total cost to build the museum is $3 million, which includes an overrun factor.

Del Vecchio said that the trust to date has raised $1.55 million through a combination of grants, donations, and other fundraising efforts. That figure excludes additional funds raised for related Heritage Site improvements like the new restroom facility, shed, website, and signage.

Del Vecchio said the new financing plan would not only accelerate the completion of the museum project but provide an influx of tax revenue to the general fund now rather than waiting another five years.

“Again, this is not an override,” he said, “and can only be done because the tax revenues from the DIF far exceeded initial projections in 2015. It’s been an overwhelming financial success.”

He added, “If this article does not pass, the town will lose access to these projected funds, plus 5 percent each year until 2030. This modification to the DIF agreement is an immediate win for the schools, a win for our municipal departments, and a win for all of us, as we access needed funds while meeting legal obligations under the DIF.”

The goal is for the museum to open in 2025.

The Select Board is expected to vote on whether to support the new DIF at its next meeting on April 30. The Finance Committee approved the proposal by a 7-1 vote.

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Posted by Mike Berger on Apr 19 2024. Filed under News, Schools, Town Government. Both comments and pings are currently closed.