April 30, 2018 — The following was released by the Office Massachusetts of Senator Bruce Tarr:   

State lawmakers have filed a $100 million tax credit legislative plan designed to stimulate economic growth and private investments in ten Designated Port Areas (DPAs) which support important commercial marine-based industries.  A bipartisan group of legislators representing coastal communities including Senate Minority Leader Bruce Tarr (R-Gloucester), Representative Nick Collins (D- Boston), Representative Ann-Margaret Ferrante (D- Gloucester) and Senator Mark C. Montigny (D- New Bedford) initially sponsored the bill.

They say waterfront properties and uses in DPAs must comply with strict state Coastal Zone Management use restrictions, which can limit access to capital and stall or stop revitalization and growth.  In 1978 these port areas were specifically designated for industrial uses such as marine terminals, commercial fishing facilities, boat repair and construction, marine research and transportation of goods which cannot be located inland due to their water-dependent needs.

“Commercial fishing and marine industries are among the oldest in our state, and they continue to plan an important role in our economy. We need to make sure the facilities they depend on remain available and in working condition,” said bill author Senator Tarr.  “This bill will empower the Secretary of Housing and Economic Development to use targeted state tax credits, of up to $100 million dollars each year, to support working harbors, working families, and business facilities –all of which are indispensable.”

“There is no chance for our maritime industries to survive without state assistance for shore side infrastructure. Boats need places to dock to unload harvests and cargos. Undoubtedly, the Commonwealth has a vested and real interest in maintaining and modernizing these properties in the wake of rising sea levels and wear and tear over time. This much needed economic relief will hopefully encourage investment and development in Gloucester and the Commonwealth’s designated port areas,” Representative Ferrante said.

“Boston is emblematic of the rich history of maritime industries and waterfront activity in Massachusetts,” said Representative Nick Collins. “This legislation will serve as an economic catalyst to the diverse industries that occupy DPA land in Boston and coastal communities across the Commonwealth, creating and sustaining good-paying jobs.”

The bill, an act Establishing the Massachusetts Maritime Commercial Development Tax Credit, will spur investments in capital projects in DPAs through saleable tax credits and mitigate some constraints which have hampered the ability of municipal officials and commercial property owners to both promote and protect environmentally sound port development initiatives.   The tax credit could spur an important lifeline to capital that might otherwise not be available.

“As the nation’s top fishing port and center of the emerging offshore wind industry, New Bedford-Fairhaven’s waterfront is ripe with job-creating development opportunities,” said longtime port development leader and current Assistant Majority Leader Montigny.  “This legislation provides a significant incentive to help ensure further economic development in historic ports like New Bedford comes to fruition.”

According to a 2015 UMass Dartmouth report, the Massachusetts maritime economy stimulates $17.3 billion in economic output which supports 136,000 jobs including $6.8 billion in wages across six core sectors; living resources, marine construction, offshore minerals, ship and boat building and repair, coastal tourism and recreation, and marine transportation and technology.

Results of a survey of marine-related industry leaders showed the two most critical policy areas that would help shore up the industry were reducing costs through tax assistance initiatives and protecting our ocean resources.

Consistent with the state’s recent efforts to address climate related issues such as flooding, erosion, and sea level rise, the bill will increase access to capital for development projects including those which incorporate coastal resilience measures.

“Fishermen depend upon a variety of on-shore facilities to supply and maintain their boats, and to process what they catch.  Local fishermen need local infrastructure that’s high in quality and dependability,” said J.J. Bartlett, President of Fishing Partnership Support Services, which promotes the health, safety and economic security of commercial fishermen and their family members.

Bartlett said the legislation “represents a break-through in the struggle to preserve and modernize the infrastructure in every working port.  It’s a big deal — big for the harvesters of seafood in Massachusetts, who number roughly 7,000, and big for the 100,000 or so workers on land who work with and support the fishing fleet, such as in seafood processing, handling and sales. This bill is critically important to the future of the state’s multi-billion-dollar-a-year seafood industry.”

“I am excited about the economic development potential for our Designated Port Areas to get a much needed tax credit for new developments. This is an important opportunity to build up our working waterfront and keep America’s oldest fishing port going, providing jobs and the world’s best Gloucester Fresh seafood to market.  I am thankful for the hard work of not only our team, but the hard work and leadership of Senator Tarr, Representative Ferrante, and friends from Massachusetts Fishing Partnership and colleagues from Boston and New Bedford,” said Sefatia Romeo Theken, Mayor of Gloucester.

The state’s ten Designated Port Areas are located in:

Gloucester Inner Harbor

Salem Harbor

Lynn

Mystic River

Chelsea Creek

East Boston

South Boston

Weymouth Fore River

New Bedford-Fairhaven

Mount Hope Bay