Tax Increment Financing (TIF)
Urban
Case Study

Worcester, Massachusetts
St. Vincent's Hospital relocation

The City of Worcester, Massachusetts, used TIF as a tool to redevelop a dilapidated site in conjunction with relocating and expanding a key medical facility. The City entered into a TIF Agreement with St. Vincent's Hospital which enabled the hospital to move to a downtown site and expand, creating the new Worcester Medical Center.

New Worcester Medical Center.The new Worcester Medical Center provides needed state of the art medical care to area residents in a beautifully designed setting, with the convenience of a downtown location. It is surrounded by shops, restaurants and a 1900 space parking garage. It offers needed jobs to the community and has greatly increased the city's tax base. At the end of the TIF's term, the city will realize the benefit of the increased tax revenue.

The TIF Agreement gave the hospital tax exemptions for a period of 18 years. The amount of tax exempted follows a declining formula that is front loaded, with the highest exemptions in the early years, when construction costs are high. At 18 years, this is an example of a long term TIF. The length is linked to the size of the project. The hospital invested approximately 250 million dollars in the project. The TIF Agreement called for the creation of 55 full time jobs and 41 part time jobs. Those expectations have been exceeded, with the creation of 117 full time jobs and 215 part time jobs to date.

www.worcestermedcenter.com