Overview
The Southfield Redevelopment Authority (SRA) was originally established as the South Shore Tri-Town Development Corporation on August 14, 1998 by the Massachusetts Legislature under Chapter 301 of the Acts of 1998, as amended by Section 37 of Chapter 303 of the Acts of 2008. It was established for the purposes of acquiring the land and managing the redevelopment of the former South Weymouth naval air station for nonmilitary purposes including, but not limited to, commercial, housing, industrial, conservation, or manufacturing uses. It is located on approximately 1,400 acres in the towns of Abington, Rockland, and Weymouth.
Section 1 of Chapter 291 of the Acts of 2014 states the following:
This act shall reconstitute the South Shore Tri-Town Development Corporation, or SSTDC, as the Southfield Redevelopment Authority, reinforce municipal control over land use and development decisions affecting Abington, Rockland and Weymouth that constitute [naval air station] South Weymouth and strengthen the alignment of interests between the Authority, the towns and the Master Developer.
SRA has one office building, which is located on-site at 223 Shea Memorial Drive in South Weymouth. During the audit period, SRA employed two individuals—a land use administrator and a finance director. The finance director also fills the role of treasurer. SRA employed an executive director from February 2018 through April 2019. The Executive Director position has remained vacant since April 2019.
Section 8 of Article 1 of the “Southfield Redevelopment Authority Board of Directors’ By-Laws” states,
The Executive Director of the Authority shall have general supervision over the administration of its business and affairs . . . shall have oversight of all funds of the Authority and shall inspect monthly and annual reporting and reconciliations.
The typical roles of the executive director have been assumed by the land use administrator, finance director, and board of directors (BOD).
BOD and Advisory Board Oversight
A nine-member BOD oversees SRA. The board members are representatives of the South Shore Chamber of Commerce (one member), the Norfolk County Labor Council (one member), and residents of Rockland (two members), Weymouth (two members), Abington (one member), and two members who are residents of SRA residential buildings. As of June 30, 2022, all positions for the BOD were filled. The BOD oversees the management of the redevelopment of the land and ensures that the development and use of the land is conducted in compliance with zoning, land use bylaws, and SRA’s enabling legislation. The BOD oversees and has final approval in all of SRA’s major activities and acts to ensure that SRA’s day-to-day management of operations is in alignment with its long-term goals. The BOD monitors SRA’s activities through board meetings, board committees, and routine communications with SRA employees. All BOD members must be residents of the Commonwealth, and no SRA board member or employee may be a locally elected public official of the towns of Abington, Rockland, or Weymouth. The BOD has officer positions for members to serve as chair, vice-chair, and clerk.
The SRA advisory board reviews the general fund and enterprise fund budgets, then presents its comments and concerns to the BOD. There are 11 positions on the advisory board, consisting of board members representing Weymouth (two positions), Rockland (two positions), Abington (one position), Hingham (one position), the Metropolitan Area Planning Council (one position), and the Old Colony Planning Council (one position). The Governor also appoints three positions, with those appointments reserved for people skilled in real estate development (one position), administration and finance (one position), and housing and economic development (one position). As of June 30, 2022, there were four vacant advisory board positions: the three positions appointed by the Governor and the Hingham position. The advisory board holds regular meetings twice a year with SRA’s BOD.
Project Overview
As of June 30, 2022, a total of 1,304 acres of land was transferred from the Navy Economic Development Conveyance (EDC) and National Park Service Public Benefit Conveyance to SRA, with approximately 81 acres of undeveloped land, as detailed in the table below.
| Transfer Date | EDC Property | Public Benefit Conveyance Property |
|---|---|---|
| May 2003 | 324 acres | 225 acres |
| December 2011 | 558 acres | – |
| September 2013 | 26 acres | – |
| October 2015 | 7 acres | – |
| November 2016 | – | 60 acres |
| December 2016 | – | 7 acres |
| March 2018 | 9 acres | – |
| August 2018 | – | 65 acres |
| September 2021 | 23 acres | – |
| Total transferred | 947 acres | 357 acres |
| Remaining | 58 acres | 23 acres |
According to SRA’s fiscal year 2022 Annual Report, SRA facilitated the building of 1,254 residential dwellings and 43,000 square feet of commercial space. As of April 2023, SRA had 1,274 completed residential dwellings. These dwellings consist of 774 multifamily apartments, 122 townhomes, 200 condominiums, and 178 single family homes on the land. There is also an additional 33,000 square feet of permitted commercial/retail space, of which 2,924 square feet is currently occupied through lease with a local bank.
All of the completed residential and commercial projects, which also includes a 25-acre indoor and outdoor sports complex, are located in Weymouth. As of March 3, 2023, the assessed value of the land was $403.2 million. The remaining developable land comprises 335 acres, located in Weymouth, Abington, and Rockland, as follows:
| Town Name | Developable Land in Acres |
|---|---|
| Weymouth | 196 |
| Abington | 75 |
| Rockland | 64 |
| Total Land Acreage | 335 |
In September 2019, SRA issued a Request for Proposal for Real Estate Development Services for Union Point.0F1 In January 2020, SRA selected Brookfield Properties, under the name BPD Union Point LLC, as the new master developer2 to replace LStar Southfield LLC, and executed an amended and restated exclusive negotiation agreement in June 2021. This agreement includes provisions for BPD Union Point LLC to fund the non-debt type appropriations of SRA’s budget through monthly fees paid to SRA.
SRA’s Final Redevelopment Plan provides the current status and anticipated investment needs for transportation, water, wastewater, and other infrastructure. Furthermore, the plan contains redevelopment financial analyses and a 2023 Land Use Plan. SRA, in consultation with SRA’s new master developer, developed the Final Redevelopment Plan in March 2023. This plan is intended to guide SRA’s master planning and zoning process moving forward. Section III of the redevelopment plan states the following are listed as key goals, objectives, and elements of the redevelopment project:
- Generate fiscal benefits. The Redevelopment Project is an opportunity to stimulate growth and generate new revenues for the Towns and the Commonwealth. . . .
- Create jobs and encourage commercial and retail businesses. The Redevelopment Project will help create jobs and the tax base necessary to enhance the economic health of the Towns and the SRA. . . .
- Residential. Housing has been recognized as an essential component of a healthy economy in the Commonwealth. . . .
- Ensure smart growth and sustainable development. The Redevelopment Project should incorporate smart growth principles with a mix of housing and commercial development, and transportation choices. . . .
- Open space. The Open Space provides a framework for the Developable Area by first protecting important habitat and species, while also providing access to the public via a network of nature trails for walking and bicycling. . . .
- Reduce traffic by offering transportation choices on site. The Redevelopment Project should incorporate a number of options for on-site transportation, including a network of pedestrian and bike paths and shuttle service to the adjacent commuter rail station and possibly other transportation options on the South Shore.
Liabilities and Revenue
SRA has three long-term financial liabilities that are significant to our audit objectives: a 2020A series Infrastructure Development Revenue Refunding Bond (IDRRB), an EDC Note payable to the US Department of the Navy, and the East-West Parkway Bond due to the Commonwealth of Massachusetts.
The 2020A IDRRB in the aggregate principal amount of $13,295,000 was issued in December 2020 for infrastructure improvements and to refund the outstanding 2010A Infrastructure Development Revenue Bond.2F3 As of June 30, 2022, the remaining balance for the 2020A IDRRB was $12,510,000 and has a maturity date of August 2040. SRA has secured this bond primarily through pledged revenues and secondarily through percentages of a local tax levied on developable property within SRA's host communities in Weymouth, Rockland, and Abington.
The EDC Note was issued by the US Department of the Navy to SRA in December 2011 in the amount of $10,000,000 for the purchase of approximately 680 acres of real property from the US Navy. In April 2020, the US Navy agreed to restructure the EDC Note and agreed to annual installment payments through December 2027. As of June 30, 2022, the remaining principal balance on the EDC Note was $6,498,603.
The East West Parkway Bond is an executed memorandum of agreement made in January 2008, in the amount of $30 million. Under this agreement, the Commonwealth of Massachusetts finances part of the East West Parkway Project. SRA is not liable for the repayment of the bonds; however, SRA is obligated to make deficiency payments to the Commonwealth in the event that any new state tax revenues generated by the redevelopment fails to meet annual debt service payments. The deficiency amount due to the Commonwealth increased from $5,801,258 by $1,104,426 in fiscal year 2022, and as of June 30, 2022, the balance due to the Commonwealth was $6,905,684. SRA replaced its former master developer, who was responsible for paying any deficiency amounts. These deficiency amounts are expected to be addressed by the new master developer, BPD Union Point LLC, once SRA executes a new disposition and development agreement. The Commonwealth currently has a deferral period imposed on these payments.
As noted in SRA’s 2022 financial statements, SRA’s debt service4F4 is paid through funding by the master developer’s monthly fees and pledged revenue of local, participating town property taxes which then remit the revenue to SRA. The remaining portion of SRA’s debt service cost is funded through a district tax. The combination of pledged revenue and district tax allowed SRA to function under a total operating budget of $2,542,673 for fiscal year 2022. At the end of each fiscal year, SRA’s finance director / treasurer submits SRA’s financial information to the Massachusetts Department of Revenue for certification of SRA’s undesignated fund balance as free cash. The free cash may be used for capital improvements or reimbursement of any of SRA’s prior year general fund subsidies, when needed. SRA will be dissolved and cease to exist no later than December 31, 2065, or upon its repayment of its outstanding debt.
As stated in SRA’s June 30, 2022 annual financial statement, SRA’s financial status is as follows:
| Account Type | Amount |
|---|---|
| Assets | $44,382,046 |
| Liabilities | $28,536,452 |
| Total deferred outflows of resources | $246,476 |
| Total deferred inflows of resources | $3,299,113 |
| Net position at beginning of fiscal year 2022 | $14,927,269 |
| Net position at end of fiscal year 2022 | $12,792,957 |
Independent Auditor’s Report
An independent auditor’s report is compiled annually on SRA’s financial statements. The independent auditor’s report is prepared by a team of certified public accountants at Lynch Marini and Associates Incorporated. The report is available to the public for review on SRA’s website. An independent auditor’s report is mandated annually by Section 31 of Chapter 291 of the Acts of 2014, which states, “The authority shall cause an audit of its books and accounts relating to the [naval air station] South Weymouth redevelopment area to be made at least once in each fiscal year by certified public accountants.”
| Date published: | December 20, 2024 |
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