Gateway Cities program gets boost from development bill

A bill signed by Gov. Deval Patrick on Aug. 5 includes provisions that will enhance the state’s Gateway Cities Program.

More than 20 cities across the state are considered Gateway Cities. Gateway Cities, which have historically been centers for regional development, are defined based on population (greater than 35,000 and less than 250,000), median income, and educational attainment.

Key features of the bill include the following:

• The creation of a novel Housing Development Incentive Program, which will provide state support for market-rate housing developments that spur private investment in targeted Gateway City neighborhoods

• The expansion and enhancement of a state tax credit for manufacturing and research and development companies that create or retain jobs located in Gateway Cities

• The recapitalization of the state’s Growth District Initiative, with $50 million for development-related infrastructure improvements in the state’s 20 designated Growth Districts, 14 of which are located in Gateway Cities

These programs, along with the extension of the state’s Historic Tax Credit, which was included in the fiscal 2011 state budget, are seen as important tools for local revitalization efforts.

Worcester City Manager Michael O’Brien, who has played an active role in promoting the Gateway Cities and their legislative agenda, said, “As a community whose roots lie in the talents and hard work of our residents, we look forward to employing the development incentives we now have at our disposal to attract the kinds of jobs that can provide good wages.”

The Gateway Cities concept grew out of a report issued in 2007 by MassINC and the Brookings Institute: “Reconnecting Massachusetts Gateway Cities: Lessons Learned and an Agenda for Renewal.” Noting the historic role of cities such as Lawrence and Fall River as a gateway for foreign workers, the report described how these cities have failed to fully share in the “knowledge economy” that has transformed the Boston area over the past several decades.

In response to the report, 11 cities established the Gateway Cities Compact, an informal alliance to promote a comprehensive statewide strategy to build on the assets of the state’s historic urban centers outside of Boston and its immediate suburbs.

The Gateway Cities bill was originally sponsored by Senate President Therese Murray and Sen. Karen Spilka of Framingham.