Lynn councilor pitches 1-time waterfront tax

LYNN – Ward 1 Councilor Wayne Lozzi wants to impose a one-time betterment tax on waterfront landlords whose property is more valuable because the city has removed overhead electrical transmission wires.According to Lozzi, city taxpayers dug deep into their pockets to pay for the $5.5 million relocation of the metal towers and cables from the harbor to the opposite side of the Lynnway.”Some people see this as a tax. I see it as tax relief,” said Lozzi. “The land down there is a lot more valuable because the people of Lynn paid to make it that way. I think the owners of those properties should pay a betterment tax. After all, they are the biggest beneficiaries.”The properties involved, owned by National Grid and Joseph O’Donnell, will likely see an increase in assessed value and a subsequent tax bill increase in 2011-12.Although betterment charges are relatively rare, municipalities occasionally impose them when taxpayer monies are used to improve water and sewer systems, Lozzi said.Lynn Business Partnership (LBP) President Gordon R. Hall expressed concern that such a charge might set an unwelcome precedent. “We understand Councilor Lozzi’s intention, but it could be a slippery slope,” he said. “Betterment fees often follow sewer hookups, but those are very straight forward,” he said. “If the city runs antique street lighting down South Common Street, which they are planning to do, should there be a betterment charge because it makes the neighborhood more attractive?”Hall said the LBP views a betterment fee as unnecessary because the increased value of the waterfront properties will ultimately result in an increased tax base and higher taxes for the owners.”By removing the power lines you are unlocking the value, and once the value is unlocked, it will be to the city’s benefit over time,” said Hall.He noted the properties will likely be reassessed in January 2011 and new tax bills issued in fiscal year 2012.”The reality is, the values won’t be unlocked until it leads to development of those properties,” Hall said.Mayor Judith Flanagan Kennedy has asked for additional information related to Lozzi’s proposal, mostly from Assessor Peter Caron and the city’s legal staff.”I need to do an analysis, which requires knowing what the increased value of each parcel will be, due to removal of the power lines,” the mayor said. “I also need to talk to the Law Department because state law may contain a specific formula for how much to charge the property owners when it comes to betterments. If that’s the case, I think it might be more money than I would feel comfortable asking for.”Kennedy said she must also confer with state Sen. Thomas McGee, who serves on the Joint Judiciary Committee – the legislative body through which any betterment fee implemented by the city must pass.”I told Councilor Lozzi I would walk through the steps with him, but first I have to have more information,” the mayor said.James Cowdell, executive director of the Lynn Economic Development and Industrial Corp. (EDIC), viewed the prospect of a betterment charge as a possible deterrent to development.Cowdell explained that only two property owners directly benefited from the power line removal ? O’Donnell and National Grid.”Mr. O’Donnell benefited because he had power lines on his property that are no longer there. It’s my understanding that his property value will dramatically increase. When his property is reassessed, his taxes will reflect that, which is a fair process,” Cowdell said.Kenneth Carpi and Patrick McGrath also own waterfront land abutting the former power line corridor. Carpi-owned land abutting the new power line corridor on Harding Street could potentially decrease in value because of the change, Cowdell said.”I don’t want to come this far and then deter development by imposing higher taxes on Joe O’Donnell’s property,” Cowdell said. “When the land is developed, everybody will get their share and Lynn will benefit from the new tax dollars. For right now,