Bylaw Returns Without Industrial Development Financing Authority

Ken O’Brien

The Agenda for February 6^th’s Town Council Meeting is now available on the town website.

In keeping with a recent pattern, there is very little real business. In fact, there is only one item that constitutes town business.

“9. Vote to amend the By-law to adopt an Economic Development Commission under Chapter 3, Appointed Officers, Section 3.223 deleting the previously proposed Section 3.224, Industrial Development Finance Authority.”

Back on November 19, 2011, I posted the following on another site:

It is interesting to note that the agenda for the Nov. 21 town council meeting contains the following item:

"18. Vote to amend the By-law to adopt an Economic Development Commission and Industrial Development Financing Authority provision under Chapter 3, Appointed Officers, Section 3.222 Economic Development Commission and Section 3.223, Industrial Development Finance Authority.

Third and Final Reading"

First, I'd like to know what happened to the second reading.

Nevertheless, it is interesting to see this on the agenda again after the online version of the town bylaws contains this bylaw as having been adopted Oct. 3.

It is only after I pointed out the failure to read this bylaw at three meetings as required by the charter that this was brought up.

Rather than sitting back and placidly accepting this bylaw's adoption, you should take note of the powers granted to the town under the enabling legislation, specifically MGL Chapter 40D, Sect. 7:

"Section 7 Powers of municipalities

Section 7. (a) For the purpose of carrying out a project as authorized by this chapter, a municipality acting by or through an industrial development financing authority shall have the following powers to the extent that the same are not elsewhere in this chapter expressly limited: …

 (ii) to construct and to improve, maintain and repair industrial development pollution control and solid waste disposal facilities;

(iii) to issue bonds as herein provided;

(iv) to make contracts of every name and nature and to execute all instruments necessary or convenient for the carrying on of its business;

(v) without limitation of the foregoing, to borrow money and accept grants from and to enter into contracts, leases or other transactions with the commonwealth or its agencies or instrumentalities, any federal agency, any municipality, bank or other financial institution, corporation or other authority organized under this chapter;

(vi) to pledge, hypothecate or otherwise encumber all or any of the revenues or receipts or property or interests in property of the authority as security for bonds of the authority; …

 (c) Nothing in this chapter shall be deemed to permit the financing by a municipality of a plant for the manufacture or distribution of gas or electricity except (i) back-up power generating or distribution facilities or other facilities for the supply of gas or electricity to occupants of an industrial development project financed under this chapter, (ii) pollution control facilities, (iii) solid waste disposal facilities, (iv) small power production facilities, and (v) cogeneration.”

At that November 21 meeting Councilor Laurent McDonald mounted a spirited opposition to the bylaw, in particular the section relating to the Industrial Development Financing Authority. What followed was a darkly amusing demonstration of how little councilors actually knew about the item they were about to vote on.

As the Southbridge Evening News reported on November 25 “’There’s a lot of unsureness up here,’ said Councilor Denise Clemence. ‘… I don’t think we should forge forward on something’ without clarification.”

With that the council voted to table the motion.

Now it’s back, without the Industrial Development Financing Authority.

Credit goes not only to councilor McDonald, but also to the citizens who appeared at the podium to question the creation of this entity.