City Council: David Clark Co. TIF sent for review; Rental Registration Program examined

The City Council is considering a tax break for David Clark Co., which plans to relocate within the city, to the former Allegro MicrosSystems building at 115 Northeast Cutoff.
The City Council is considering a tax break for David Clark Co., which plans to relocate within the city, to the former Allegro MicrosSystems building at 115 Northeast Cutoff.

WORCESTER — The City Council discussed a series of proposed changes to the city's controversial Rental Registration Program and quickly sent a proposed tax plan for David Clark Co.'s new headquarters to committee Tuesday.

The company and its affiliate DCH Properties LLC are in the early phases of a plan to move from Franklin Street to a vacant 138,472-square-foot facility at 115 Northeast Cutoff. The project would include renovating the space and creating 20,000 square feet of office space for company headquarters, 88,370 square feet for manufacturing space and 30,102 square feet for warehouse and storage space.

The council is considering a tax increment financing agreement with an annual exemption of 60% over 12 years.

The company has agreed to the city's responsible development ordinance and is applying to be a certified project under the state's Economic Development Incentive Program.

The City Council quickly sent the tax plan to the Standing Committee on Economic Development for further discussion. No councilor commented.

More: David Clark Co., Worcester aerospace equipment manufacturer, planning to move

Rental Registry Program

Tuesday's meeting also saw the latest in the City Council's ongoing deliberations over the city's Rental Registration Program.

The City Council sent a series of requests for reports to the manager's office while voting down a separate set of changes with similar language from District 3 City Councilor George Russell.

The city administration proposed the registry in 2022, arguing that it would provide a greater overview of the rental housing stock and provide contact information for property owners in case of an emergency, complaint or violation.

The council unanimously approved the program in 2022, which has been in discussion since 2019. When the program was rolled out in March, it received backlash from property owners over associated fees, high fines for noncompliance and a belief that the property inspections were an invasion of privacy. Councilors have requested several changes.

In April, Batista proposed changes that lowered two fines associated with the program. A $300 daily fine for failing to register was amended to a monthly fine equal to double the registration or renewal fee. A daily $300 fine for not complying with the inspection was lowered to $200 a month.

The council has previously requested a legal opinion about the constitutionality of the program.

The requested reports cover of the following: current practices used in the city for dealing with problem properties; incentive programs available to property owners of multiple dwelling units; flexible schedules for individuals to have their housing properties inspected; allowing private companies to complete inspections of rental properties in the city; allowing new infrastructure buildings to register themselves in the program; exempting owner-occupied units of three or less from the program; and ensuring property owners are not held responsible for tenants denying access to a rental property.

District 5 City Councilor Etel Haxhiaj asked for the roll-call votes on the chairman's orders, which are usually moved forward without a full vote, to oppose changes she said would weaken the registry.

She objected to the orders on private companies being allowed to do inspections, allowing new buildings to register themselves and on the owner occupancy exemption.

Russell also had an order asking the city to include similar language in Boston's Rental Registration Program on an exemption of inspections for owner-occupied multifamily homes under six units; allowance of property owners to hire independently licensed inspectors; and language to ensure property owners are not held responsible if a tenant denies an inspector access to a unit.

A motion to send Russell's order to committee was voted down, 8-3 with Russell and Councilors at-Large Morris Bergman and Donna Colorio voting in favor. Mayor Joseph M. Petty, Haxhiaj, Nguyen, District 1 City Councilor Jennifer Pacillo, District 2 City Councilor Candy Mero-Carlson, District 4 City Councilor Luis Ojeda as well as Councilors-at-Large Kathleen Toomey and Khrystian King voted against it.

Haxhiaj said she was "frustrated" about some of the proposed changes that she felt were weakening a program intended to protect residents from harm and would go against the expertise of the city administration and Fire Chief Martin Dyer, who supported the registry when it was first approved in his previous role as interim chief.

"I cannot stress how frustrating it is that we're doing anything possible at this moment in time to chip away at a policy that is a bare minimum to protect the health and safety of our most vulnerable residents," Haxhiaj said.

Haxhiaj said a significant portion of rental units in the city are multifamily units and a majority of Worcester renters are cost-burdened.

Russell defended his suggestions. On owner-occupied rental properties, he said he trusted the owners who live in the dwelling to know when there are hoarders or other fire hazards. He also said he also did not want property owners to suffer if tenants refuse to allow inspections and said allowing independent inspectors could allow for more flexible inspection hours.

Mero-Carlson, who chairs the economic development committee, defended her committee's work, saying she would not stand for the idea that the committee was working against the administration's goals.

"This committee isn't taking any piece or part of this lightly," Mero-Carlson said. "It's our job in the Economic Development Committee to vet it."

Mero-Carlson said Dyer had told her the chairman's orders were fair.

The council also got a report on a previously requested order asking how many residential and mixed-use properties in the city are owned by limited liability companies. Haxhiaj requested the report to assess how many properties are owned through such a business structure, an ownership method that can make tracking a point of contact difficult for city inspectors.

According to the report, 3,073 parcels in the city are owned by limited liability companies.

Haxhiaj requested a report to determine how many of the properties owned by limited liability companies would be deemed "blighted" by the city.

This article originally appeared on Telegram & Gazette: WorcesterCity Council to review David Clark Co. TIF

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