Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Chapter 212 of the acts of 1975 is hereby amended by striking out section 1, as most recently amended by section 2 of chapter 762 of the acts of 1979, and inserting in place thereof the following section:-

Section 1. It is hereby found that there exists underutilized property owned by the commonwealth or the federal government which property is surplus to current and projected governmental need; that such surplus property is a significant resource which if returned to productive economic use, would contribute to the provision of gainful employment, increased revenue for the commonwealth and municipalities, and a more stable economy; and that the acquisition, development or disposition of such property in accordance with redevelopment plans and by providing loans for the redevelopment of such property and the construction, rehabilitation, demolition and maintenance of buildings thereon are valid public purposes.

It is hereby further found that decadent, substandard, or blighted open areas exist in the commonwealth; that each such area constitutes a serious and growing menace, injurious and inimical to the safety, health, morals and welfare of the residents of the commonwealth; that such area constitutes an economic liability, substantially impairs or arrests the sound growth of municipalities, and retards the economic well being of the commonwealth; that each decreases the value of private investments and threatens the sources of public revenue; that redevelopment of each such area for the elimination of substandard conditions and the prevention of their recurrence is necessary to retain existing industries, attract new industries, and promote the sound economic growth of the commonwealth; that the menace of such decadent or blighted open areas is beyond remedy and control solely by regulatory process in the exercise of the police power and cannot be dealt with effectively by the ordinary operations of private enterprise without the aid herein provided; that unemployment and under-employment have been caused in part by industrial and manufacturing companies moving from the commonwealth; that many existing industrial and manufacturing facilities within the commonwealth are obsolete and inefficient; that such facilities are underutilized or vacated, thereby creating additional unemployment; that such obsolescence and abandonment of existing facilities are causing injury to the economy of the commonwealth and its municipalities; that the manufacturing and industrial sector of the economy provides one of the best immediate opportunities for better jobs at higher wages for inhabitants of the commonwealth and that new industrial and manufacturing sites are required to attract and house new industries and to retain existing industries in need of expansion space; that unaided, private enterprise will not be able to develop such decadent, substandard, or blighted open areas due to problems encountered in the assembly of suitable building sites, the provision of adequate public services, the unavailability of sufficient private capital for development and the inability of private enterprise alone to plan, finance and coordinate economic development projects; that in many areas of the commonwealth, municipalities want and need to revitalize their economic job base, but due to the size and cost of development are unable to do so; that the continuing increase in the cost of assembling land available for development particularly in substandard, decadent, or blighted areas of the commonwealth substantially impairs the ability of the commonwealth and cities and towns of the commonwealth to stimulate economic and industrial growth in order to produce gainful employment; that the acquisition, development or disposition of such areas in accordance with redevelopment plans and by providing loans for the redevelopment of such areas and the construction, rehabilitation, demolition and maintenance of buildings therein for the purpose of eliminating decadent, substandard or blighted open conditions and preventing the recurrence of such conditions in such areas are valid public uses and purposes for which public money may be expended.

It is the purpose of the government land bank established by this act to aid private enterprise or public agencies in the speedy and orderly conversion and redevelopment of certain lands formerly used for military activities to nonmilitary uses, including industrial, commercial, and residential uses, and in the development and redevelopment of substandard, blighted or decadent areas and of surplus government property through the acquisition, development or disposition of such areas or of surplus government property, all in accordance with redevelopment plans, and by providing for loans for the redevelopment of such areas and property, to stimulate economic development including industrial, commercial and residential uses, in order to prevent blight, economic dislocation, and additional unemployment or to aid private enterprise in the construction and rehabilitation upon and within such areas and property of decent, safe, and sanitary housing available to persons of low and moderate income in order to alleviate the shortage of such housing.

SECTION 2. The second paragraph of section 2 of said chapter 212, as amended by section 2A of said chapter 762, is hereby further amended by inserting after the word "planning", in line 8, the words:- , one of whom shall be experienced in commercial real estate lending.

SECTION 3. The third paragraph of said section 2 of said chapter 212 is hereby amended by striking out, in line 2, the word "annually" and inserting in place thereof the words:- from time to time.

SECTION 4. Section three of said chapter two hundred and twelve is hereby repealed.

SECTION 5. Section 4 of said chapter 212 is hereby amended by striking out clause (e), as most recently amended by section 5 of chapter 762 of the acts of 1979, and inserting in place thereof the following clause:-

(e) enter into agreements or other transactions with any person, including without limitation, any governmental instrumentalities or agencies in connection with any of its powers or duties hereunder, including without limitation, those set forth in clauses (j), (m) and (q) and any governmental agency hereby authorized to enter into any such agreements or transactions with the bank.

SECTION 6. Said section 4 of said chapter 212 is hereby further amended by striking out clause (h) and inserting in place thereof the following clause:-

(h) procure insurance against any loss in connection with its property or activities undertaken hereunder in such amounts and from such insurers as it deems necessary or desirable.

SECTION 7. Said section 4 of said chapter 212 is hereby further amended by striking out clauses (j) to (m), inclusive, and inserting in place thereof the following nine clauses:-

(j) borrow money by the issuance of debt obligations whether tax exempt or taxable and secure such obligations by the pledge of its revenues or of the revenues, mortgages, and notes of others, provided, however, that the bank shall not issue debt obligations the principal amount of which, when added to the principal amount of debt obligations issued by the bank, excluding debt obligations previously refunded or being or to be refunded thereby, shall exceed forty million dollars.

(k) take possession and manage on behalf of the commonwealth or acquire on its own behalf lands, improvements thereon, and related personal property, hereinafter called lands, or an interest therein, (1) from the United States, which lands, or interests therein, were used for Westover Air Force Base, the Chelsea Naval Hospital, or the Boston Naval Shipyard, including the South Boston Annex, the Boston Army Base and all other lands owned by the United States and used in connection with or for purposes related to the operations of the Boston Naval Shipyard or the Boston Army Base, subject to such restrictions as may be imposed on such acquisition by the United States, and including, without limitation any other property of the United States lying within the commonwealth and declared surplus by the United States, subject to such restrictions as may be imposed on such acquisition by the United States, hereinafter called federal surplus lands; (2) from the commonwealth any lands which have been determined to be surplus to direct public uses by the commonwealth or by public agencies, hereinafter called state surplus lands; and (3) lands declared decadent, substandard or blighted open areas by the bank, hereinafter called blighted lands;

(l) engage accountants, architects, attorneys, engineers, planners, real estate experts and other consultants as may be necessary in its judgment to carry out the purposes of this act and fix their compensation;

(m) take any actions necessary or convenient to the exercise of any power or the discharge of any duty provided for by this act;

(n) clear and improve property acquired or held by it and engage in or contract for the construction, reconstruction, demolition, development, redevelopment, rehabilitation, remodeling, alteration or repair thereof;

(o) prior or subsequent to taking possession of or acquiring such lands hold, protect, maintain, repair, improve and use such lands, or any interest therein, as it deems necessary or desirable to facilitate acquisition, disposition, development or redevelopment of such lands, or any interest therein;

(p) dispose of such lands, or any interest therein, by sale, lease or otherwise as provided by this act;

(q) make and administer loans of its funds to persons, including without limitation governmental agencies and instrumentalities, for the acquisition, development or redevelopment of lands described in clause (k) and for the construction, rehabilitation, improvement, demolition or maintenance of buildings thereon, on such terms as the bank may determine to be necessary and consistent with the provisions of this act;

(r) make or administer loans of funds of other public entities for purposes not inconsistent with the purposes of this act.

SECTION 8. Section 5 of said chapter 212, as most recently amended by section 9 of chapter 762 of the acts of 1979, is hereby further amended by striking out the third paragraph.

SECTION 9. Said chapter 212 is hereby further amended by striking out section 6, as most recently amended by section 11 of said chapter 762, and inserting in place thereof the following two sections:-

Section 6. The bank may take possession of or acquire blighted lands or an interest therein or make loans for the redevelopment of blighted lands only after a public hearing and a determination by the bank that such lands are decadent, substandard or blighted open areas.

The bank may dispose of federal surplus or blighted lands or an interest therein only after approval of a redevelopment plan for such lands by the board of directors of the bank, which approval shall not occur until a public hearing is held on said redevelopment plan and provided such lands shall be developed or redeveloped in accordance with said redevelopment plan. The bank shall not approve a redevelopment plan for such lands within one year of the acquisition or possession by the bank of such lands or an interest therein unless the city council, board of aldermen or board of selectmen of the municipality or municipalities in which the lands lie have approved said redevelopment plan. The bank may extend the one year period by petition of any municipality wherein the lands are located.

The bank may take possession of or acquire state surplus lands or an interest therein only after approval of a redevelopment plan for such lands by the board of directors of the bank, the city council, board of aldermen or board of selectmen of the municipality or municipalities in which the lands lie, and the deputy commissioner of capital planning and operations, which approvals shall not occur until a public hearing is held on said redevelopment plan. Such lands shall be developed or redeveloped in accordance with said redevelopment plan and if a formal competitive process will not be the method utilized for the disposition of such lands or interests to a private person or entity, the bank shall disclose the reasons therefore in the central register published by the secretary of state prior to such disposition.

The bank shall, in accordance with section three of chapter thirty A of the General Laws, establish general rules and regulations governing the evaluation and selection criteria for development proposals for all state surplus lands acquired by it, prior to the acquisition of any state surplus lands by the bank.

No redevelopment plan shall be approved by the bank unless the bank finds that such plan provides for redevelopment of the lands, in whole or in part, substantially for industrial, commercial or residential uses which will prevent or eliminate blight, economic dislocation or unemployment, or for the construction or rehabilitation upon the lands of decent, safe and sanity housing, at least twenty-five per cent of which shall be made available to persons of low and moderate income, or for such other public purposes as the bank may determine are generally consistent with the provisions of this act; that such plan is consistent with the sound needs of the locality as a whole, with particular regard to the prevention of blight, economic dislocation and unemployment or the alleviation of the shortage of such housing; that such plan is financially sound; and that such plan meets such other requirements as the bank may by regulation establish.

No redevelopment plan shall be materially amended unless the public hearing and approval procedures as specified in this section for redevelopment plans are complied with prior to any such amendment.

Redevelopment plans shall contain a general description of the lands and of the purposes for which the lands will be developed or redeveloped, the anticipated financing sources for said development or redevelopment and the role of the bank in and the anticipated public benefits and public subsidies that will result from the development or redevelopment of such lands. If a redevelopment plan is for state surplus lands, said plan shall also contain a description of (a) any reuse restrictions imposed by the general court or the deputy commissioner of capital planning and operations and how said restrictions will be enforced by the bank; and (b) the disposition process to be utilized for such lands.

Any required public hearings need not be adjudicatory hearings as provided by chapter thirty A of the General Laws. Notice for said public hearings must be published in a daily newspaper of general circulation in the area in which the land is located at least seven days prior to said hearings and the requirements of sections eleven A and eleven B of said chapter thirty A shall be met. At least seven days prior to public hearings on redevelopment plans, said plans shall be available for public review at the offices of the bank.

Section 6A. Any disposition of lands, or an interest therein, by the bank may be made in such manner whether by sale, lease or otherwise, by parcels which are the same as or different from those by which they were acquired or taken possession of by the bank, and for such price, rental or other consideration payable over such term, and bearing interest as to deferred payments and secured in such manner, by mortgage or otherwise, all as the bank may determine to be desirable and consistent with any applicable provisions of any applicable redevelopment plan.

Prior to the disposition of state surplus lands or an interest therein to a natural person or entity, the bank shall undertake an independent determination of the value of such lands through procedures customarily accepted by the appraising profession as valid for determining property value. If such disposition is for consideration which is less than such value, the bank shall, prior to such disposition, disclose in the central register published by the secretary of state the difference between the value of such parcel and disposition price of such parcel and by notice to the house and senate committees on ways and means.

The bank may, in accordance with the provisions of section two of chapter thirty A of the General Laws, adopt such rules and regulations as it may deem desirable for the exercise of its powers and the discharge of its duties as provided in this section.

SECTION 10. Said chapter 212 is hereby further amended by striking out section 7, as most recently amended by chapter 471 of the acts of 1984, and inserting in place thereof the following two sections:-

Section 7. There shall be established and set up on the books of the commonwealth a separate fund, to be known as the Government Land Bank Fund. There shall be credited to said fund the following:

(a) after deducting the administrative expenses of the bank, all principal and interest received by the bank under a mortgage financed by the proceeds of an industrial development bond or note as such term, or a successor term of comparable import, is defined by the Internal Revenue Code of 1954, issued by the commonwealth on behalf or for the purposes of the bank;

(b) monies transferred from the reserves of the bank pursuant to a vote of the board of directors of the bank;

(c) all monies transferred pursuant to an authorization by the general court, except for amounts which may be transferred pursuant to section eight B.

Revenue credited to the Government Land Bank Fund shall be used for debt service on bonds and notes issued by the commonwealth on behalf of the land bank, or, upon appropriation by the general court.

The comptroller of the commonwealth shall quarterly file a report with the house and senate committees on ways and means and the commissioner of administration detailing the balance of the fund.

The proceeds of an industrial development bond as such a term, or a successor term of comparable import, is defined by the Internal Revenue Code of 1954 issued after September first, nineteen hundred and eighty-two shall not be used to reduce any deficit existing in said Fund.

Section 7A. The bank may make loans as provided in clause (q) of section four only upon the approval by the bank of a loan application containing the following information:

(a) identification of the borrower;

(b) a description of the project including a financing plan;

(c) a description of how the loan will be secured; and

(d) a description of the public benefits to be derived from the project.

No such loan application shall be approved by the bank unless the bank finds that the project represented in such application provides for the acquisition, development or redevelopment of the lands, in whole or in part, or the construction, rehabilitation, demolition or maintenance of the buildings thereon, substantially for industrial, commercial or residential uses which will prevent or eliminate blight, economic dislocation or unemployment, or for the construction or rehabilitation upon such lands of decent, safe and sanitary housing, at least twenty-five per cent of which will be made available to persons of low and moderate income, or for such other public purposes as the bank may determine are generally consistent with the provisions of this act; that such project is consistent with the sound needs of the locality as a whole, with particular regard to the prevention of blight, economic dislocation and unemployment or the alleviation of the shortage of such housing; that such project is financially sound; and that such project meets such other requirements as the bank may by regulation establish.

SECTION 11. Said chapter 212 is hereby further amended by inserting after section 8A the following section:-

Section 8B. The state treasurer acting on behalf of the commonwealth shall enter into an agreement with the bank providing that the commonwealth shall provide contract assistance for debt service obligations of the bank in the maximum amount of six million dollars per fiscal year of the commonwealth for a period of seven such fiscal years. Such contract assistance agreement shall provide for the payment by the commonwealth of the debt service obligations of the bank at such time during each such fiscal year and upon such terms and under such conditions as the bank may stipulate. The bank may pledge such agreement and the rights of the bank to receive amounts thereunder as security for the payment of debt obligations issued by the bank. Such agreement shall constitute a general obligation of the commonwealth for which the faith and credit of the commonwealth shall be pledged for the benefit of the bank and of the holders of any debt obligations of the bank which may be secured by a pledge of such agreement or of amounts to be received by the bank under such agreement.

Amounts received by the bank from debt obligations issued pursuant to this act shall be used for the purposes of acquisition, holding, protection, maintenance, repair, management, development, improvement or use of lands, for making loans as herein provided or for provision of personnel and administrative costs of the bank as provided by this act.

SECTION 12. Section nine of said chapter two hundred and twelve is hereby repealed.

SECTION 13. Said chapter 212 is hereby further amended by striking out section 10, as amended by section 3 of chapter 461 of the acts of 1975, and inserting in place thereof the following section:-

Section 10. The bank shall keep accurate accounts of all receipts and expenditures of the Government Land Bank Fund; and shall make a report annually containing an abstract of such accounts and detailed information on all receipts and expenditures, including prices paid for lands purchased, the terms upon which loans were made, and such other detailed information as provided in section fourteen. Except as otherwise provided by this act, the bank shall have full power to exercise care of its property and management of its loans, business and affairs, and to sell and convey any lands as provided by this act, by deed or other instrument sealed with its corporate seal, signed and acknowledged by a majority of the board of directors or in like manner to authorize such sale and conveyance by any of its officers or agents.

SECTION 14. Said chapter 212 is hereby further amended by inserting after section 15 the following section:-

Section 15A. As used in this section the words "building project" shall mean a project undertaken for the design, construction, installation, repair or maintenance of building and appurtenant structures, facilities and utilities directly by the bank including initial equipment and furnishings thereof, but not including appurtenant buildings or structures which are required to be constructed as integral parts of the development of sewer, water and highway systems, or the design, construction, installation, repair or maintenance of any building financed in whole or in part through loans or through the purchase and sale of such building by the bank pursuant to this act.

The bank shall not enter into any contract nor incur any other obligation for the design of a building project unless the design work can be accomplished (a) within any applicable appropriation or authorization for the project or within the project cost limits specified by any applicable appropriation or authorization and (b) without substantial deviation from any (i) study or program which must be prepared in accordance with this section or (ii) any other pre-design document which must be prepared in accordance with any other statute, appropriation or authorization or administrative directive consistent therewith, and unless the executive director of the bank certifies in writing that such project complies with the provisions of this section. In no event shall the design work be such as would result in a change in the number of square feet to be constructed in the project of more than ten per cent from the number specified in the study, program or other pre-design document referred to in subclauses (i) and (ii) of clause (b).

The bank shall not enter into any contract nor incur any other obligation for the construction of a building project unless the construction work can be accomplished (a) within any applicable appropriation or authorization for the project and (b) without substantial deviation from (i) any study or program which must be prepared in accordance with this section or (ii) any other pre-design document which must be prepared in accordance with any other statute, appropriation or authorization or administrative directive consistent therewith and unless the executive director of the bank certifies in writing that such project complies with the provisions of this section. In no event shall the construction work be such as would result in a change in the number of square feet to be constructed in the project of more than ten per cent from the number specified in the study, program or other pre-design document referred to in said subclauses (i) and (ii).

Every building project undertaken by the bank shall be deemed to require the satisfactory completion of a study or program as set forth in section thirty-nine A of chapter seven of the General Laws before any services for the design or construction of such project may be contracted for, performed by contract or otherwise, or funds allotted, encumbered or expended therefor.

No provider of design services for any building project undertaken by the bank shall be selected by the designer selection board or by the bank and no design services shall be performed for or by the bank for any building project for which the satisfactory completion of a study or program is required prior to the design or construction of that project, unless and until: (a) said study, program, or where appropriate, both have been satisfactorily completed; (b) the bank certifies in writing to the deputy commissioner of capital planning and operations that the study, program, or where appropriate, both, correspond to the current needs of the bank including its current long term capital facilities development plan; (c) said deputy commissioner requests that one or more of the directors of the office of programming, office of project management, or office of facilities management review the study or program, or where appropriate, both and the director or directors certify in writing to said deputy commissioner that the study, program, or where appropriate, both reflect the bank's needs as stated, that they provide an accurate estimate of the project requirements, cost and schedule, that the project can be accomplished within any applicable appropriation or authorization for that project, and recommends proceeding with design, construction, or where appropriate, both; and (d) the deputy commissioner of capital planning and operations certifies in writing to the commissioner of administration that the study, program, or where appropriate, both have been satisfactorily completed in accordance with this section and approves proceeding with design, construction, or where appropriate, both.

If either the director or directors whose review is requested or the deputy commissioner of capital planning and operations should fail to so certify, recommend, or approve, said deputy commissioner shall forthwith send notice of his decision and the reasons therefor to the commissioner of administration and to the house and senate committees on ways and means.

SECTION 15. Section sixteen of said chapter two hundred and twelve is hereby repealed.

SECTION 16. Said chapter 212 is hereby further amended by striking out section 19 and inserting in place thereof the following section:-

Section 19. This act shall expire on July first, nineteen hundred and ninety-four.