Framingham Reviews Its “Business Friendliness”
Robert Halpin, Framingham’s new town manager
What does it mean for a town to be "business friendly?" In Framingham, business and local officials are looking to find the answer.
It's been a year of ups and downs so far for the town of 68,000: Town officials got an earful early this year after a property revaluation process led to jumps in residential property values, resulting in an increase on the average homeowner's bill of $576.
Making matters worse was the reason for some of that increase – a rising commercial property vacancy rate. The town has one of the highest commercial/industrial rates in the state, a source of discontent for its business community.
Framingham has succeeded in attracting many major companies in the past, and its location on the Massachusetts Turnpike between Interstate 495 and Route 128 is enviable, to say the least.
But officials began wondering this year if the town was losing some of its luster with businesses and if so, why?
"I think there have been some folks that have projected Framingham's image as not being business friendly," Selectman Dennis Giombetti said. "Some of it is warranted and some of it is not."
While residents complained about the revaluation, town officials knew they also had another potentially big problem.
Behind the scenes, of the town's biggest employers, TJX, was shopping for a new headquarters.
The issue culminated in a unanimous vote by selectmen to form a commission to look into the town's economic strengths and weaknesses.
"The board felt it was time to do a review of 'Are we business friendly?' Giombetti said.
A committee made up of members of the MetroWest Chamber of Commerce and the Framingham Economic Development Committee has been doing the soul searching on the town's behalf. The panel has hired a team from Northeastern University to conduct a local economic assessment, and officials are meeting privately with major employers and taxpayers to hear their thoughts and concerns.
Erika O. Jerram, a senior town planner who is involved in the process, feels it's important for the town to present its best face to outsiders who are considering locating in or relocating to Framingham.
"Rather than let other folks define us," Jerram said.
A website called chooseframingham.com went live a year ago to promote the town. Her department operates the site.
"It is challenging at times, but we are chipping away at creating a more positive business environment," she said.
A Good Start
Last month, Framingham approved a major tax increment financing (TIF) deal for TJX, the off-price apparel retail giant that was considering a potential move of its entire corporate operation to Marlborough.
Officials were in talks with the company for months before the matter went public.
"That shows a partnership," said Bonnie Biocchi, the president of the MetroWest chamber, who served on the internal town committee that negotiated with TJX. "The town realizes the value in terms of the multiplier effect — all of the extraordinary spending done throughout the community."
Under the deal, TJX promised to invest $143 million in its Cochituate Road headquarters, keep 1,600 employees in town and create 225 new jobs in exchange for tax exemptions that will amount to more than $7 million over the life of the deal.
It will also expand into Marlborough, where it recently purchased the Fidelity Investments campus on Puritan Way after negotiating a similar tax deal with city officials.
Though the company pays $1.8 million in taxes each year to Framingham, Giombetti said the deal is as much about perception as it is about jobs or money.
"It was psychological as much as anything else," he said. "We didn't want any major, prestigious companies moving from Framingham."
In a statement following the TIF approval, TJX President Ernie Herrman paid tribute to his company's relationship with the town.
"TJX has a long, rich history with the town of Framingham which we would like to see continue for many years to come," he wrote. "We believe this suggested tax structure would benefit both the town and our company and are optimistic that Framingham will remain the home of our world headquarters."
Perception Problem
TJX was a victory for Framingham, but one deal won't cure a lingering perception among some local businesses that the town isn't cooperative.
If you're looking for someone to offer a critical opinion of the town, look no further than Framingham Ford owner Jerry Chase Jr.
Chase's view of the town's economic weaknesses has been formed by several run-ins with the planning board over the years.
In 2009, he applied for a permit to do a major renovation to his Route 9 dealership. He ended up fighting with the board over his signage, which can be a topic of contention in many towns.
Because the building was set back from the road, Chase wanted to spread out the wording on his sign so motorists could see it better. But that violated local signage bylaws.
Frustrated by what he saw as a delay, Chase ended up installing the sign before it was approved, which he called "an act of civil disobedience."
Town inspectors seemed to ignore it while Chase pursued a formal variance, which was eventually approved.
Although he feels the permitting process takes longer than many businesses would like, Chase commends Framingham for its attempt to assess its own strengths and weaknesses. He hopes the process helps "mend fences" between any slighted members of the business community and the town.
"I think everybody just wants to know they're appreciated and have a fair say in the thing," he said. "Sometimes that's all it is. Just make you feel appreciated."
Can A New Manager Boost Framingham's Image?
Grappling with charges of indifference to local businesses, selectmen picked from a pool of candidates a man with economic development experience as town manager.
Robert Halpin, most recently president of the Newton-Needham Chamber of Commerce, served as the first president of the Merrimack Valley Economic Development Council and in management roles with Central and Eastern Massachusetts towns.
Until this month, Framingham had been without a permanent town manager for months. Town Clerk Valerie Mulvey had served as interim manager.
Halpin said he's well aware of the ongoing review of business friendliness and plans to take seriously any recommendations that come from the recently-formed commission. He said being self-critical in a guided, non-confrontational way can have positive benefits.
"It sets an agenda for improving performance and doing certain things," Halpin said
Halpin understands the challenge ahead of him. TJX may not be the last company to shop the I-495 corridor for better real estate options.
"I don't want to miss anyone," he said. "I think one of the things [I would do] would be to open up lines of communications with some of the less-visible companies that may be looking at similar price differentials or cost differentials and being engaged with those companies early."
Halpin thinks the town can improve communication with its businesses, though he praised the TJX deal as well as other dialogue the town has with its major companies through working groups.
"One of the things I've heard from business owners over the course of my economic development career is they really want certainty up front," he said. "Don't drag us through a year of negotiations."
Biocchi agrees the permitting process needs to be easily understandable. She thinks the economic review Framingham is conducting could result in expedited permitting or priority development programs.
"One of the chief things we hear almost in every case is that time-to-market is critical," she said. "It's not that communities don't want to attract business, because many do. It's because they can't make the process a little more streamlined." n
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