Fall River Waterfront Redevelopment Bill Hangs in Balance as Committee Deadline Looms, Sparking Conflict Of Interest Concerns

FALL RIVER ─ A proposed legislative bill that would allow the state Department of Transportation to sell more than 20 acres of new developable land on the city’s waterfront to the Fall River Redevelopment Authority continues to make its way through the state house.

But DOT officials recently told the City Council that without the passage of House Bill H4071, it would be illegal for the state to convey the coveted waterfront land made possible with the mega-million Route 79 project.

The proposed bill was filed by Rep. Carole Fiola in May and was referred to the Joint Committee on State Administration and Regulatory Oversight, which held a public hearing on June 4.

Fiola said that new legislative rules require the oversight committee 60 days to take action on proposed bills, and that there will be action on the House bill by Aug. 4.

“They could send it to another committee or give an extension by right for further review of the bill for 30 days. Or take no action and put it to study,” said Fiola.

According to Massachusetts Appleseed, when a bill is sent to study, it usually signals the proposed legislation is in limbo for the remainder of the session, and “is a convenient way for the Committee to quietly kill the bill.”

As of the end of day on Monday when action is due, the website that tracks bills did not indicate what action the Committee decided on H4071.

What does the Act say?

It’s unclear what the current market value of the 20-plus acres is, described by City Council President Joe Camara as one of the most valuable properties in New England right now.

Fiola’s bill would allow MassDOT to sell the land to the RDA for 50 percent of the fair market value for each, to either be sold by the redevelopment authority or leased over ten years from the date of passage.

The RDA has about $14 million in the bank and commissioned a master plan study in advance of the new Route 79 corridor to determine what type of redevelopment is most sustainable.

The completion of the project could take up to 10 years.

July presentation to City Council

On July 15, at the invitation of council president Camara, representatives from MassDOT, RDA Executive Director Sarah Page and RDA consultant Ken Fiola presented updates on the state and RDA efforts for future development of Route 79, which is reportedly ahead of schedule.

Ken Fiola, who is the husband of state representative Fiola, said the RDA commissioned a market study and master plan of the potential uses for the redevelopment available property.

The master plan has redevelopment of the Route 79 corridor with an emphasis on housing.

According to Ken Fiola, the master plan identifies 2 million square feet of developable property, 1,480 rental units, and 61,000 square feet for commercial development. It also includes 2,200 new parking spaces.

One advantage to the city with RDA leading the redevelopment, any proceeds from the sale of land would have to be used solely for redevelopment in Fall River, said Ken Fiola, including funding for parking decks and other parking facilities.

“So parking has been identified in the master plan, it’s just how you pay for it,” said Fiola.

MassDOT project manager Scott Bosworth said that now, the state and federal laws require any proceeds be returned to those government agencies’ general funds for future road projects.

Bosworth said as of now, state and federal laws would not allow MassDOT to sell Route 79 parcels under fair market price.

State emphasizes partnership and transparent process

If the proposed legislation to sell the Route 79 land at half-market rate to the RDA does not pass the legislature and MassDOT heads the redevelopment, Bosworth assured the City Council that the state is committed to working with the city on the remaking of its waterfront.

“So we have to follow laws that go along with that,” said Bosworth. “I want to make it very, very clear, we are here for a partnership. For a very meaningful partnership as we meet your needs and obviously follow the law.”

The Route 79 redevelopment will attract deep-pocketed developers, with the state looking for a developer who can weather a significant investment without immediate returns, said Bosworth.

The process would begin with MassDOT and the host community, Fall River, work jointly on a development process and seek bids.

While federal law requires that the land essentially goes to the highest bidder, Bosworth said state law allows a little more leeway.

“It takes into consideration value as well as qualifications,” said Bosworth.

MassDOT could go out for a request for information by next month, allowing interested developers to seek additional clarifications on the project requirements, that will then lead to the request for proposals to hire a developer, said Bosworth.

Councilors express no appetite for future housing tax breaks

During the council meeting, City Councilors Michelle Dionne and Cliff Ponte questioned whether any developer constructing new housing on such valuable land would be eligible for tax breaks through a tax increment exemption, or TIE.

The tax break is meant to incentivize the construction of market-rate housing and is a requirement for developers to be eligible for state tax breaks.

The Bristol County Economic Development Consultants, which Ken Fiola is the executive vice president, has represented many developers applying for TIEs with the city.

“When it comes to TIEs, I’ll say now that if I’m here, and there is an opportunity to vote on a TIE, when it comes to that I just want you to know Mr. Fiola, that its going to be something that I really need some convincing that its going to be best for the city,” said Ponte, who is a local real estate broker.

Questions of conflict of interest

Since Fiola submitted the bill that would allow RDA to purchase the Route 79 land, the Fall River Reporter has been approached by readers wondering if there is a possible conflict of interest given the representative’s relationship with the agency’s consultant.

The question was addressed to Fiola, who denied any conflict of interest, and that as a legislator, it’s her job to submit bills for her constituents, and that her husband will not benefit “in any particular way whatsoever.”

“There are a lot of people who think nefarious things are happening, and that couldn’t be further from the truth,” said Rep. Fiola.