    [From the U.S. Government Printing Office, www.gpo.gov]

                                                 13858

                         CZIC COLLECTION

                        PORT DEVELOPMENT

                     A Programs and Policies Guide

                                                                  COASTAL ZONE
                                                                 INFORMATION CENTER

                                               Office of Coastal Zone Management (CZ)
                                               Washington, D.C. 20235

                           Commonwealth of Massachusetts                            COASTAL ZONE
                              Executive Office of Environmental Affairs             INFORMATION CENTER
                                           Coastal Zone Management
                                                                                                                                 q

                HE
                554
                .M4
                P67
                1979

                ACKNOVTLEDGEMENTS

                This resource document.was first published in September
                1978 through the joint efforts of the. Executive Office
                of Environmental Affairs/Coastal Zone Management, the
                Office of State Planning and the Executive Office of
                Economic Affairs. Please note that.certain projects
                may have advanced'or been added to local agendas since
                that time and that some of the contact persons for
                local., state and federal programs have changed.

                                     0    DEPARTMENT OF COMMERCE NOAA
                                     COAPAL SERVICES CENTER
                                     2234 SOUTH HOBSON AVENUE
                                     CHARLESTON SC 29405-24113

                The preparation and printing of this publication was funded
                in part by the Office of Coastal Zone Management, National
                Oceanic and Atmospheric Administration, U.S. Department of
                Commerce under a program implementation grant to the Connon-
                wealth of Massachusetts.

                August 1979
                                                      Prc-P,:@ 1::Y Or C5C Library

                        Table of Contents

                       Local Project Development                                 1
                          Community And Recreational Development                 3

                          Marine Industrial Development/Cargo,and Shipping
                          Fishing                                               15
                 ",--------multi-Use Development/New Bedford                    19

                  - -----                                                       23
                       -portDevelopment Resources:

                          Community and Recreational Development                25

                                                                                47
                          MArine Industrial Development/Cargo and Shipping

                         --Fishing                                              69
                          jEfiergy                                              81

                       Policy Frameworks                                        85

                          Coastal Zone Management,                                7

                          New Environmental Regulations                         91

                          Outer Continental Shelf                               95

         Local Project Development

           Community and Recreational Development

                SALEM

                The City of Salem has commited itself to an impressive,
                program of central city revitalization, much of it
                .directed to improvements along or near its historic
                waterfront.

                The Heritage Trust program is well into its second
                phase with construction underway on a multi-medi.a
                theatre, approximately 60 units of housing, and
                office and retail space along the historically signi-
                ficant Pickering Wharf. This project interacts well
                with the nearby Derby Street revitalization effort,
                which includes the renovation of the old town hall on
                Derby Square, as well as the Salem National Park on
                Derby Wharf.

                In another area.of the harbor, the city will rake use
                of $1.9 million in UDAG monies to undertake a major
                revitalization program of "The Point" neighborhood.
                Monies will be directed to code enforcement, grants
                for housing repairs, public improvements, and - most
                significantly - to the conversion of 150 sub-standard
                apartments into fully rehab'd condominiums ready for
                reduced cost resale to working-class neighborhood
                residents.. Also anticipated in this area of the city's
                waterfront is the rehabilitation of the Pequot Mills@.
              ,which-would remain in industrial use but with upgraded
                space to serve.as incubator locations for new firms,
                seeking valuable water-related facilities,in Salem.

                The city proposes to tie both of these impressive
                area projects to the central commercial district
                with parkim rovements along the underutilized banks
              ..Of:the South River. It has received a commitment from
              :the state of $1.5 million in HCRS and Urban Self-Help
                monies for this purpose, a local match for which is
                now being sought.

                When the riverfront park is complete, and the harbor
                area of Salem is re-donnected to the wonderfully
                revitalized downtown, the city will serve justifiably
                as an example.of a community which brought a vast array
                of funding sources and technigues together into a com-
                prehensive downtown/harbor development program.

                                         -3-

                         PLYMOUTH

                         This historic.town's agenda for community revitaliza-
                         tion along its waterfront is defined by two needs:
                         to integrate its tourism industry, which revolves to
                         a considerable extent around historic sites on the
                         waterfront, with the more general goal of revitalizing
                         the town center;. and to direct the growth which has been
                         flowing into Plymouth and the surrounding communities
                         into the main town center and the smaller village centers.

                         To help shape an implementation strategy, the town has
                         recently completed a participatory Goals for Plymouth
                         .study, in conjunction with the emergence of the state-
                         directed Growth Policy process.

                         In the town center, a number of projects are already
                         underway: a new state-financed  elderly housing project,
                         a new central fire station, and a Townscape amenities
                         program. On the agenda for funding and implementation
                         is an ambitious package including a walkway along the
                         harborfront, connecting the Mayflower II site with com-
                         mercial and other tourism-related activities. one of
                         the town's major industrial achievements is also a key
                         component of the center revitalization and tourism
                         strategies--the conversion of an abandoned clam factory
                         to the world headquarters of the Ocean Spray cranberry
                         processing company. "Cranberry World" is a growing
                         tourism draw, and a key source of both tourist and in-
                         dustrial. employee spending in the business district.

                         Plymouth faces an important choice with reg ard to a pro-
                         posed hotel and commercial-development which would be
                         built on an extension of the harborfront created through
                         filling or piling. Evaluating the pro's and con's of
                         this proposal, environmentally and economically, isa
                         key item on the town's agenda. Proposed state improve-
                         ments to the Route 44 access road into Plymouth Center
                         and to the State Pier, an aging structure which some argue
                         must be improved or closed, are also up for discussion.

                         In the North Plymouth village center area, another op-
                         portunity to marry an industrial recycling           I
                                                                     project with
                         commercial center revitalization presents itself at
                         Cordage Park, the remains of Plymouth's long-time key
                         employer, Cordage Rope. Under new management which en-
                         visions reusing the complex for a variety of industrial
                         uses, Cordage--with the potential help of designated
                         state port status at its front door--could re-emerge  as
                         an economic mainstay of the Plymouth economy and the  turn-
                         ing point for the town.

                 In.both centers, dredging of the federal channel, and
                 in Plymouth Center of the inner, state-regulated channel
                 as.well, is considered a key to a growing waterfront
                 economy.

                                          -5-

                        Hyannis

                        The town of Barnstable  has formed a Committee,fok
                        Growth and'Change charged with planning the revital.i-
                        zation of its major village, Hyannis. Current efforts
                        to revitalize the Cape's traditional downtown shopping
                        and service center focus on a renewed realization of
                        Hyannis as a waterfront community. Along with visual
                        and physical improvements to the Main St. Commercial
                        District, a major goal of Hyannis' Community Development
                        Program is the expansion and improvement of the village'.s
                        port on Lewis Bay. This fall, the Hyannis Harbor will
                        be the focus of a course study conducted by an MIT
                        Professor that will explore a variety of development
                        options for the Town's waterfront area..

                        The Planning Process during the past year has involved
                        over 100 citizens participating.in Desigri Review Work-
                        shops sponsored by the Committee. A coordinated
                        revitalization effort has been launched disignating
                        the opening of a 5 acre Village Green as the first
                        project to be implemented. Plans include the design
                        and construction of a park that will link Main St.
                        with the waterfront,thereby creating a walkway to the
                        sea. Funding to develop existing sketch plans for
                        the park area into workable drawings is now being
                        actively pursued at the local fevel. In October,
                        the Town will submit its application to the State CZM
                        Program for $20,000 in planning money. They are
                        presently awaiting word on a NEA grant, already sub-
                        mitted. Design work should be completed next Spring,,
                        .at which time the town will seek funding through the
                        State's HCRS program for the construction phase of the
                        project.

                        In order  to elliviate the traffic and parking con-
                        gestion in the downtown and nearby waterfront area,
                        the Cape Cod Regional Transit Authority is currently
                        seeking funds to implement a loop bus system along
                        the Main St. Other key downtown investments have
                        already been made by the Cape Cod Times and a major
                        Cape Cod Bank.

                        The first October Seafest is  currently in the active
                        planning stage. The program is the first major effort
                        to make Cape residents more aware of the value of
                        locally available but underutilized fish species. A
                        grant request will soon be submitted to the Lt. Governor's
                        Office for financial assistance under the remaining
                        NERCOM funds allocated to Mass.

                        Finally, the Town of Barnstable will soon be acting on
                        a recommendation from the BCG&C to establish an Office
                        of Community Development to implement the conceptual
                        plans put forth by the Committee through the Design
                        Workshops.

                                              -6-

               NEW.BEDFORD,

               The Whaling City has done much over the past decade to
               improve and expand its harbor-related economic base.
               Efforts first began in the late '60's on two federally
               .funded urban renewal projects - South and North Terminal
               designed to increase the capacity of the waterfront to
               accommodate fish processing and marine industrial activ-
               ities.. These programs are nearly complete, and, with
               the pending replacement by the state of the Route 6
               Bridge, will prove highly successful redevelopment
               efforts.

               Early in the '70's, the city turned its attention to
               the central waterfront. Although a major arterial
               highway had cut off the waterfront from the central,
               city, New.Bedford was determined to invest in the
               revitalization of the so-called Waterfront Historic
               District (now across a highway from the nearest water)
               as the first step in re-establishing the harbor links.
               Several million dollars of public monies were spent on
               infrastructure improvements to this district, the major-
               ity coming from the city's Block Grant, but large amounts
               coming,also from an EDA Title X grant, the state's Histor-
               ical Commission, and the local public utility companyies.
               underground services were either completely replaced or
               otherwise improved. Sidewalks were resurfaced, streets
               were paved with block stone, reproduction lights were
               installed and trees were planted. Work also was under-
               taken in partnership with private owners on most of the
               buildings in the district.

               A symbolic product of this program is the construction of
               a pedestrian overpass, now nearly completed, to tie to-
               gether again the central downtown, the Historic District,
               and the harbor.

               Along the central harbor itself, many other projects have
               been or are about to be undertaken. All the city-owned
               piers have been rehabilitated with renewal, EDA Title 1
               or Block Grant funds. A linear waterfront park is being
               created, with assistance from the state, to assist ped-
               estrian movement along the north-south axis of the central
               harbor. In addition, State Pier soon will provided ex-
               panded facilities for cargo activities in a new shed to
               be constructed with $1.2 million from the state's capital
               outlay funds.

               Taken together, these projects have served to increase
               the potential of the waterfront for expanded fishing,
               marine industrial, and tourist-related industries in a
               comprehensive effort by New Bedford at city revitalization.

                                          -7-

                        BEVERLY

                        The waterfront in Beverly retains an assemblage of
                        commercial, marina and residential activities which
                        havetended to underutilize t  he potential of its
                        fine harbor. The city is beginning a program,to
                        change the image of its waterfront and to emphasize
                        its relationship to the downtown, through the "Fish-
                        flake Hill" historic district.

                        A major keystone to this revitalization effort will
                        be the new Salem-Beverly Bridge, to be constructed
                        shortly by the state with.$13 million of federal
                        highway funds. This bridge, which is planned to merge
                        with the easterly end of the Salem-Peabody Connector
                        highway, will terminate in Beverly in a series of
                        feeder ramps into themain waterfront and downtown
                        streets. The harbor thus will have direct access
                        via limited access roadways to Rt. 128 and the state's
                        major highway system.

                        In anticipation of th.4-s bridge construction project,
                        the city is developing its plans for the revitalization
                        of the waterfront in the area of the former Salem
                        bridge. Discussions are now beginning to conceptualize
                        a conversion of the outmoded bridge for a.park and up-
                        graded marina complex.

                        The city also is seeking the reconstruction of the B&M
                        Eastern Commuter rail line to provide improved, direct
                        railway service to its central city. Beverly hopes too
                        to increase the potential for downtown and waterfront
                        revitalization through a retention of the North Shore
                        Community College in re-used and newly constructed
                        buildings which could combine to provide a suitable
                        permanent campus for that facility.

                        The city recognizes that a comprehensive program for
                        central redevelopment will be needed, and it therefore
                        has formed,a Revitalization Study Committee to strate-
                        gize a program for downtown and harbor renewal. Bev-
                        erly anticipates a healthy economic future based at
                        least in part on its waterfront resource.

                                               -8-

                CHELS13A

                In Chelsear the mQst distre4ped city in the Commonwealth
                up until now., a major effort @s about to get underway to
                alter the entire nature of its waterfront.

                The.Naval Hospital site, along the banks of the Mystic
                River, was declared surplus property several years.ago.
                The city began then to plan for the reuse of that 88
                acre facility for a variety of complimentary uses.
                Part of the area, some 26 acres, will be redeveloped
                by the MDC as a waterfront park, under a $1.6 million
                program which includes the donation of land from the
                GSA. Another portion is projected to become a 250
                boat marina, through a co-operative effort of the city,
                the Army Corps of Engineers, and a private developer.
                The majority of the-site will redeveloped in.1200 units
                of housing, including upper-income duplexes and town
                houses as well as 300 units of MHFA-subsidized elderly
                apartments. Most of the housing will be new construction
                but there will be some rehab, particularly in the histor-
                ic Building 59. Finally, 14 acres of the site will be
                utilized as an industrial complex.

                Funding for this massive development project will be
                coming from three prime sources. In August, announce-
                ment was made by HUD that Chelsea would be the recipient.
                of $6.8 million of UDAG monies, to be used mainly for
                the acquisition of the land from GSA and the construction
                of public infrastructure improvements. An innovative as-
                pect of the UDAG includes the direction of land salepro-
                ceeds to a nearby neighborhood rehabilitation program in
                Chelsea Square. The park monies were included in the
                state's 1978 capital outlay budget. In addition, the
                city recently received approval of its pre-application
                for $1.4 million of EDA Title 1 monies to assist in the.
                development of the industrial area.

                In total, this "Waterfront Neighborhood Revitalization
                Program" totals $94 million. The public 'component in
                the venture, including the UDAG, amounts to approximately
                $13 million. This most ambitious project represents an
                outstanding example of the public sector    at the local,
                state, and national levels - working with the private
                investors to make a significant statement about the
                potential for waterfront development as a means of up-
                grading an entire community.

                                           -9-

                                                               -OT-

            Marine Industrial. Development
            Cargo and Shipping

              LYNN

              For several years, the city of Lynn has watched as other port
              cities have  gone through waterfront revitalization activities
              while its own extensive harborfront has gone largely undeveloped.
              Within the last year, however, the city has begun some aggres-
              sive efforts to return its waterfront to productive use.

              As a fist step, the city formed an Economic Development Indus-
              trail Commission to.take title to some 65 acres now owned by
              the New England Power Company (NEPCO) and establish a development
              plan for-the area. The city worked successfully with the state's
             ,Df-partment of Environmental Quality Engineering to alter the
              layout of the city's planned sewage treatment plant so that it
              would not interfere with future waterfront development. The same
              holds true for the harborfront landfill, where city, state and
              federal efforts have focused on resolving problems of alternative
              disposal sites.

              There.are currently a number of proposals underway or being con-
              sidered along the waterfront., Lynn has applied for and received
              preliminary approval on an Economic Development Administration
              u304" grant. The $160,000 will fund construction of a municipal
              wharf at the northern end of the NEPCO parcelto help handle cargo
              now taken overland and barged from other areas and may precipitate
              location of two waterfront industrial users on abutting land. The
              state's Division of Waterways has agreed to dredge a channel.acces-.
              sing the new wharf, while the federal Corps of Engineers1has under-
              taken a feasibility study on a deep draft channel leading to the
              waterfront.

              At present, there are two major uses under consideration for the
              planned industrial port. The first is a proposal by the America
              East.Corporation, a Lynn-based industrial firm, which would pro-
              mote development of fishing-related activity on 30 of the 65 NEPCO
              acres. The proposal, now being refined by the developer, includes
              construction of fresh and frozen processing plants, attendant
              industries (i.e., ship repair) and facilities, with a deep draft
              access for larger vessels created along the harborfront and con-
              struction of.an extensive breakwater at the southern end -- the
              latter to service recreational craft-Thirty-five of the acres
              would remain under city ownership, being devoted to parking, open
              space and docking facilities.

              The other, and more recent, proposal concerns development of a
              containerport on the Lynn waterfront. Under a $20,000 grant from
              the Boston Shippers Association, the area is being studied for
              its economic potential as a major container facility.

              Lynn's waterfront represents the single largest parcel of open port
              space in any of the state's designated ports and, in some respectst
              the greatest opportunities. It may   Ilikely be some time before Lynn
              and its interested developers have weighed the costs and benefits
              associated with either of these larger development schemes.. In
              the interim, the city has developed a sound agenda for developing
              the port at a reasonable and productive pace.

                     FALL RIVER

                     The cargo industry is growing in.Fall River, thanks to a
                     major co-operative effort on that behalf by the city,
                     state and federal governments. Two years ago, the city's
                     Industrial Development Commission received a report of
                     C.E. Maguire, Inc. which reported on the status of port
                     operations in Fall River and made comprehensive recom-
                     mendations of steps to be taken to encourage port devel-
                     opment. The $128,000 study was funded by EDA.under a
                     Title.IX planning grant.

                     The study emphasized two aspects of port facilities. One
                     was -the docking capabilities at and in the vicinity of
                     State Pier, and the other involved the use of the land
                     and buildings on or nearthe Pier.. With regard to dock-
                     ing it was recommended that certain improvements be made
                     to the pier and - most importantly - that maintenance
                     dredging be undertaken to eliminate the silt which has
                     limited the ability of the Pier to accommodate larger
                     draft vessels. Despite a series of environmental con-
                     cerns which have caused certain delays in their resolu-
                     tion, the state will begin this fall this much heralded
                     dredging operation.

                     Local government itself has taken steps to respond to
                     the second set of recommendations. The Maguire report
                     found that the cargo shed on -State Pier was being admin-..
                     istered inefficiently to attract major cargo handlers.
                     Much of the space was leased to firms whose operations
                     were not directly related to the port. Based upon this
                     observation, the city, through the Fall River Line Pier,
                     Inc., has moved to eliminate these lessees from the State
                     Pier area and relocate them to inland sites within Fall
                     River. As a result, the city has attracted to the Pier
                     an importer of rubber products which plans to make Fall
                     River its prime northeast coast port.

                     Fall.River now knows what is left  to.be done. In order
                     to increase its capacity for through-port users, alterations
                     should be made to the cargo shed, the docking facilities,
                     and the land-based marshalling sites. The city is in the
                     process of-applying for an EDA grant of approximately
                     $10 million to undertake some of these improvements. The
                     state has been willing to assist, cornmiting a $12,500 CZM
                     grant toward a further study of some hyrdologic problems
                     and $750,000 DPW investm ent based upon the eliminated need
                     to provide a new bridge over a man-made waterbody which
                     will be filled to provide additional assembly land area.

                     Once these alterations are in place,  the future of  cargo
                     handling in Fall River will appear very bright.

                                               -12-

                      QUINCY-WEymbuTH

                      There is a variety of industrial  activities in the har-
                      bor shared by these two South Shore communities and
                      formed by the Fore River. Key to.industrial growth
                      here are two opportunities.

                      On the Quincy side, the massive General Dynamics shiD-
                      yard, the South Shore's largest industrial employer,
                      is pursuing a major naval destroyer contract. In the
                      more long-range future,, the yard's capacity to build
                    ...future generations of super-tankers is recognized to
                      depend onthe replacement of the present Fore River
                      Bridge on Route 3A with a new structure providing a
                      wider navigable span. The state, in alliance with
                      the region's governmental and economic community, is
                      pursuing avenues of federal funding for such a replace-
                      ment, and for the first time there is some optimism
                      that the funding categories for federally-aided.projects
                      will be changed so as to make this project eligible for
                      substantial assistance.

                      On the Weymouth side, the closing of the Boston Edison
                      plant leaves a major industrial building available for
                      reuse. The town and the South Shore Chamber wish to
                      explore the possibilities for creating a "vertical
                      industrial park," similar to the Cordage Park effort in
                      Plymouth, among other industrial reuse options.

                                          -13-

                    EVERETT

                    The southern edge of Everett fronts onthe mystic River.
                    and has great industrial advantages in proximity to '
                    Boston; access by water, rail, and highway (the Revere
                    Beach Parkway); and a comparatively low tax rate.

                    Recent industrial additions in this area,include the
                    Coldwater Seafood Corporation's 200,000 square foot
                    fish processing plant and cold storage facility, and
                    Monsanto's new administration building which donsoli-
                    dated that company's operations. In conjunction with
                    this expansion, land was created for a new industrial
                    park served by a deep water dock.

                    A number of drawbacks, however, have prevented the area
                    from fulfilling its potential for utilization. Roads
                    in the area, some of which are in private ownership, are
                    in poor condition. Portions of land have poor access,
                    or access only through a residential neighborhood in the
                    center of the district. Drainage is no good in some parts,
                    and no fire or police alarm systems serve the area.

                    .In,recognition of these needs, the city of Everett is
                    applying for a UDAG grant to support "Operation Indus-
                    trial Uplift" of this area.' The funds would be used to
                    improve and add roads and drainage, possibly to purchase
                    unused portions of land, and buffer the residential neigh-
                    borhoods from the industrial users. Parts of this buffer
                    would include improvements to the existing playground and
                    addition of other recreational amenities.

                    The city has requested state support of the project in
                    the widening of a state route by the Mass. DPW and pro-
                    vision of a boat ramp by the MDC. The MBTA has declared
                    approximately 8 acres of property previously used for
                    their Orange Line operation as excess property and is in
                    the process of dispossing of it for waterfront-related
                    industrial uses.

                    The work funded by the UDAG would permit the expansion
                    of several small industrial in this area which are com-
                    mited to do so if these infrastructural improvements
                    are made. Also, Distrigas would expand and improve their
                    docking and loading facilities for LNG vessels, and Market
                    Forge, which employs 450 workers, would have the opportunity
                    to construct a needed new 500,000 square foot facility.

                    it can be seen, from the descriptions presented above,
                    that waterfront development in Everett means industrial
                    development. The city is moving forward in a compre-
                    hensive program of inter-related funding techniques to
                    achieve that goal.

           Fishing

           NEW BEDFORD

          .New Bedford  is the largest fresh fish port on the east   coast, and
           first in value of the catch. The City's large "South Terminal"
           stretching from the hurricane dike to the Route 6 bridge - consists
           largely of piers and unloading and processing facilities for the
           fishing industry.

           The city hosts a large and growing fishing fleet; there are at
           least 125 draggers, 14 swordfish vessels and 40 sea scallopers
           operating out of New Bedford. By the end of 1978, it is expected
           that some 15 new draggers and 20 new scallopers willhave been
           added to that fleet over the past two years alone. Last year the
           finfish catch was valued,at $ 22 million, while sea scallop
           landings for the same period accounted for an additional $ 20
           million. Much of this catch is handled locally at the city's 15
           processing plants. The processing sector alone contributes some-
           where between 700 and 800 jobs to the local economy.

           The.city's daily fish  auctions on Pier 3 bring in large numbers of
           commercial vessels for offloading, and represent a focus for.New
           Bedford's fishing industry. Years  ' of neglect and heavy use have made
           their impact on Piers 3 and 4 and have consequently hampered their use
           by commercial vessels. In respon  'se, the city filed an application
           with the Economic Development Administration in Fallf 1976 seeking.
           special Title IX funds for rehabilitation.and reconstruction of
           the piers. Theproject, approved the following year and now
           underway, has brought in one and a quarter.million-dollars in
           federal support for bulkheading, filling, sewer and water line
           construction, fender systems and parking areas.

           New Bedford's attention to its fishing industry   has been vigorous.
           V1hile the city hosts a wide range of other waterfront uses, it has
           been careful to Drovide adequate space and facilities for its
           fishing economy and should stand as a model for other ports
           attempting to encourage fishing growth.

           NEWBURYPORT

           Newburyport has a relatively strong fishing base, a fact which tends
           to be overlooked as attention focuses on the city's impressive down-
           town revitalization efforts. While there are navigational problems
           at the mouth of the Merrimack River - access to the port - which the
           corps of Engineers is attempting to resolve, Newburyport supports a
           finfishery forgroundfish in which.32 vessels and 85 fishermen
           participate. Most of these vessels are draggers, and can convert.to
           gillnetting or tub trawl gear, depending on the species of fish
           being sought. The majority of the finfish vessels engage in the
           bluefin tuna fishery and there is a solid lobster fishery out of
           Newburyport as well.

                 All of the fish landed here are truc ked to processors by the city's
                 local fishing cooperative. One of the six such cooperatives in the
                 state, the Tri Coastal Seafood Cooperative, Inc. serves traditional
                 11middleman" functions between the fishermen and the buyers -
                 marketing and shipping - andworks as a unit to produce a high
                 volume catch while providing fishinq-related dockage and storage
                 facilities.. There are a few dealers for the Newburyport lobster
                 catch and no livestorage facilities. The Coop itself does not have
                 the facilities to process its finfish catch, but it does have plans
                 to do so in the future.

                 one of the impediments to the.Newburyport fishery has been cold.
                 storage. In response, the city filed a $ 15,000 grant application
                 with the New England Regional Commission for construction of a -
                 10 ton/day ice plant. The grant request, approved in April, 1977
                 and matched with $ 50,000 in local Community Development Block
                 Grant funds, has resulted in the recent dedication of the facil-.
                 ity, which is now. being leased to the Coop, along with refurbished
                 dock space on a former marina site. It may well'be that the
                 expIansion of commercial docking space which will provide ice-free
                 winter berthing (a severe problem for the fishery here) will be
                 next on the local agenda for the fishing community.

                 GLOUCESTER

                 Gloucester stands as the largest port on the north shore and the
                 highest volume port on the east coast. There are approximately
                 180 vessels with 65'0 fishermen working out of Gloucester. Its
                 processing sector handles mostly frozen block fish, and there are
                 11 fish buyers located in Glouce.ste r, many of whom ship substantial
                 amounts of fresh fish, generally by truck,  to the New Bedford, New
                 York and Philadelphia markets. Because the Gloucester processors
                 handle primarily frozen block fish (mostly foreign caught), the.
                 Gloucester fleet can only land those species and quantities that
                 local buyers can market. This makes it extremely difficult for
                 the fleet todiversify. This limited amount of fish processing
                 capacity, and limited dockage and off-loading facilities, are two
                 major handicaps to the industry within the port.

                 These problems, along with vessel financing, have been the subject
                 of..an.$ 8.7 million dollar state/local/country/NERCOM/EDA combined
                 grant. The keystone of the project is the construction of a new
                 freezer cold storage facility, along.with renovations to the
                 existing Stalls Building which houses eight fresh fish proces  .sing
                 firms. A small boat docking facility on the south side of the
                 pier and anintermediate boat docking facility on the north side
                 are also planned under the grant.

                 Groundbreaking for the south boat dock is scheduled for October
                 of this year, with completion scheduled for early January, 1979.
                 With subsequent starts on the ancillary gear building slated for
                 November and the freezer for February, next spring should mark.
                 dramatic improvements for the fishery in Gloucester.

          Several conflicts have arisen during the course of the Gloucester
          isTitle IV grant, most of which have been resolved through    -
          intensive city and state efforts. Among these have been problems
          of dredge residue disposal resulting from construction of the
          south boat docking facility, resolved through use of the Gloucester
          city landfill in Magnolia; property taking on the state pier for
          ,the freezer, now underway through the Attorney General's Office;
          and possible conflict between development of the north boat
          docking,facility and the Gloucester Housing Authority's plan for
          a Head of the Harbor project, resulting in a continuing effort
          between the state and the GHA on relocation of one of the two
          projects.

          On the non-construction end of the.project, a final study on
          expansion and development of the state pier has been used as   a
          master plan for industry needs and continuing efforts for the
          1980's. The fishermen's loan fund, a revolving fund set up for
          "replacement only" costs of vessel finanIcing, has expended
          $ 131,000 to date helping a number of vessel owners, with a
          $ .24,000 balance currentlv in the fund. A fresh fish marketing
          program has brought about new markets in-Denver, St. Louis and
          @other U.S. cities.

          The unique program now operating in Gloucester has only been
          successful inasmuch as local, state And federal officials have,
          together with many local fishing industry representatives, put
          intense time and effort into the project. Its success may well
          influence EDA decisions on funding future fisheries projects.

                  Multi-Use Development
                  New Bedford

                 NEW BEDFORD

                 The City of New Bedford is serving   as.the host city for
                 this conference because'of the success   it has had in in-
                 tegrating a variety of economic activities within its
                 harbor. As you will see on the tours today, the city
                 is working on carefully strategized agendas.to develop
                 its fishing, marine industrial, cargo, tourism, and
                 recreational potentials into viable elements of its
                 growing economic base.

                 Fishing

                 Recognition of the importance of the harbor formed the
                 basis 13 years ago of New Bedford's ambitious waterfront
                 renewal efforts. The so-called South Terminal Urban
                 Renewal project was begun in 1965 with several goals in
                 mind: to upgrade the berthing facilities for the city's
                 fishing fleet at existing city piers; to remove decaying
                 industrial buildings from the south end and to provide
                 in their place prepared sites for harbor-related indus-
                 trial expansion; to provide deep water docking space at
                 bulkheads in this industrial,area; and to serve the area.
                                                d:    %,@
                 .with a modern infrastructure and an' 'improved roadway
                 system. Shortly thereafter,   the North Terminal project
                 was instituted with similar goals in mind. Both of these
                 massive undertakings were assisted by federal and state
                 renewal, EDA Title I, and Community Development Block
                 Grant (CDBG) monies.

                 The South an Id North Terminal projects now are virtually
                 complete. Nearly a dozen modern processing plants are
                 serving the city's expanding fishing fleet; more can be
                 expected as a result of the extended 200-mile fishing
                 limit. With assistance from the state's DPW, the inner
                 harbor wate Irfront is tied to Interstate Rqute 195 along
                 the Route 18/JFK Connector, which is soon,;'to be length-
                 ened to better serve the industrial plants of the far
                 south end. Work is just being complete@,I`on Homer's
                 and Leonard's Wharves and the merged Piers 3 and 4, all
                 of which will provide upgraded and expanded docking
                 space for the fishermen.

                 Marine Industrial/Cargo

                 New Bedford has been forceful in taking action to better
                 accommodate its vitally significant fishing industry.
                 More recently, the city has been able to broaden its
                 efforts forothertypes of harbor development. A grow-
                 ing economic base for the city is marine industrial and

                           cargo handling, which together have required two criti-
                           cal facilities to assure their success. One such facil-
                           ity is an expanded cargo storage and assembly building
                           at State Pier. The other is replacement of the New
                           Bedford/Fairhaven Bridge, whose constructed passageway
                           prohibits large ships from reaching the.North Terminal
                           industrial sites. In both cases, the state has responded
                           to the city's need. Funding at the level.,of $1.2 million
                           for a new cargo shed is included in this year's capital
                           budget authorization, and the Massachusetts DPW has
                           pressed Federal Highway to  increase the priority status
                           of the bridge replacement,  with the crucial environ-
                           mental impact statement is  about to get underway.

                           Tourism and Recreation

                           Tourism also is viewed as a  base upon which a local in-
                           dustry can grow. This prospect was promoted by the
                           city, beginning in 1974, with assistance from the Com-
                           munity Development Block Grant program. Approximately
                           13 percent of the,city's first-year grant of '$10 million
                           was spent on historic preservation/tourism development
                           activities, much of it within the Waterfront Historic
                           District. The concept for the District was centered
                           around an objective of keeping the.area viable for
                           its existing harbor-related commercial activities
                           while at the same time permitting visitors to appre-
                           ciate this robust and vital element of the New Bedford
                           heritage. With this in mind, the city determined that
                           its investment could best be directed to the provision
                           of adequate infrastructures and treatments of public
                           areas in ways which would enhance the valuable historic
                           structures of the District. Thus, the sidewalks in-the,
                           area were repaved in a patchwork pattern individually
                           adapted to echo the nature of the structures which face
                           upon them. Public services were replaced or repaired,
                           streets were paved with authentic blockstone., and his-
                           torically accurate street lights and trees were installed.

                           The city also has made investments in selected buildings
                           in the District considered critical to the revitalization
                           program. In this endeavor,.the city and the Waterfront
                           Historic Area League (WHALE) combined their efforts in
                           a superb example of public and private cooperation.
                           Over $200,000 of CDBG monies were spent on the restor-
                           ation of the Benjamin Rodman House, owned by WHALE and
                           restored on the exterior of it, in anticipation.of its
                           reuse As the New Bedford Glass museum. WHALE and the
                           city joined.forces again in moving the Andrew Robeson
                           House off a site to be reused for the gas furnaces of
                           the Pairpoint Glass Company, which is returning its

                                               _20-

                   fine craftsmanship to New  Bedford after nearly 30 years
                   of absence. This project   also was assisted by the state
                   through a .'1304" Governor's Discretionary Grant. The
                   Architectural Conservation  Trust for Massachusetts (ACT)
                   and WHALE have co-ventured with the New Bedford Five
                   Cents Savings Bank the rehabilitation of the imDortant
                   Rodman Candle Works. And much other work is being un-
                   dertaken by individual building owners, assisted by
                   WHALE and the city's Office of Historic Preservation.

                   Tourism has increased remarkably as a result of this
                   work. The statistics indicate a tripling since 1976.
                   Tourists are drawn by the Whaling Museum, the Historic
                   District, the Glass and Fire Museums, and the Lightship
                   "New Bedford." But they are attracted also by the inter-
                   play of real life activity which occurs on the harbor
                   with fishing boats, Coast Guard vessels, ferry boats,
                   pleasure craft, cargo ships, barges, and tugs which ply
                   the waterfront with a vibrancy which cannot be recreated
                   in a land environment.

                   Integrative Ties

                   The harbor repre-sents,a signtfic4nt port;@Qn of the life
                   blood of New Bedford., The  ti-e of the harbor to the
                   city"s,downtown is being recreated in a symbolic manner
                   along a pedestrian overpass now under construction between.
                   the Historic District and Piers 3 & 4. Work also has
                   begun on a linear waterfront park which will assist
                   pedestrian movement along the north,south axis of the
                   central harbor.
                   New Bedford has been in the forefront among cities which
                   recognize the significance of a port, and'the major acti,
                   vities which depend upon it, Merging the fishing.- cargo,
                   marine industrial, energy-related, tourism, maritime
                   transportation, and recreational functions of its harbor
                   will continue to be a priority for the Whaling City.

                                                                   -22-

                    Port Development Resources

                                            -23-

                                                                   -24-

                   Community and Recreational Development

                  Within the port cities and towns of Massachusetts, the
                  term "community development" is synonimous with harbor
                  development. The programs laid but by   the port com-
                  munities to revitalize their harbor areas recognize not
                  only the significance of their oceanfront resource to
                  general local economic health but also attempt to inte-
                  grate the various harbor-related needs into a co-ordin-
                  ated effort of sound land use planning and the provision
                  of infrastructures to serve these uses.

                  Community development in port areas can mean many things.
                  It can include one locality's need to merge the harbor
                  into a central city revitalization project. It can in-
                  corporate another city's concern for expanded recreation-
                  al facilities on the waterfront. It can imply an emphasis
                  on tourism, or a recognition of marine-related industrial
                  nee ds. It can be seen to relate intimately with OCS issues.

                  And just as the range of topics under the general heading
                  may be varied, so are the approaches undertaken by the
                  port cities and towns of the Commonwealth to deal with
                  them. In Newburyport, Beverly, Salem, and Hyannis, an
                  emphasis has been placed upon use of waterfront space
                  by commercial, residential, and tourist/pleasure cra.ft,
                  act-ivities. Lynn, Everett, Chelsea, Quincy, and - at
                  least.until recently - Fall River, have developed a
                  preponderance of industrial functions. Gloucester has
                  successfully cultivated the fishing trades. The City of
                  New Bedford, and to some extent the Town of Plymouth,
                  have attempted to include a wide range of uses and ac-
                  tivities within the waterfront space.

                  The state and Federal governments have .recognized the
                  varied needs of port communities and have developed
                  programs or adopted policies designed to assist in the
                  revitalization process. One of the most recent and most
                  exciting is the Urban Development Action Grant (UDAG)
                  program begun this year at the U..S. Department of Housing
                  and Urban Development. Under this program, local govern-
                  ments are encouraged to work with private development in-
                  terests in pursuing together a strategy of funds assembly.
                  Once a sound project is defined, HUD agrees to inject the
                  amount of federal monies required to bring the project to
                  successful fruition.

                                          -25-

                     The state also has taken steps to re-allocate its public
                     monies, re-.orient its procedurest or create innovative
                     programs which can help in the development of Massachu-
                     setts ports. A program recently announced and receiving
                     considerable attention is the State Heritage Parks. The
                     Department of Environmental Management will be working
                     under this program to construct parks in urban settings
                     which serve a multiple function: to provide recreatinnAl
                     open space for city dwellers, to emphasize the heritage
                     of a community, and to serve as a catalist for investment
                    .within its impact area. Many of the port cities of the
                     Commonwealth.have expressed in interest in this noteworthy
                     progra m.

                     .other significant funding sources are described below, as
                   -are certain regulations or procedures which bear upon some
                    ,aspect of a port development project.

                                            -26-

           Overview

           The values of urban places emanate from the quali-
           ties of the environmental variety which abound within
           them. The parks, the rich architecture of city build-
           ings, the heritage of ethnic groups, abundant cultural
           offerings all combine to make cities exciting places in
           which to live.

           State and federal programs have recognized the im-
           portance of environmental amenities in various ways.
           Through regulations, communities are assured that the
           expenditure of federal monies,will not adversely effect
           their historic resources, whether they be buildings,
           archaeological sites, districts, or vistas. Through
           .available funding mechanisms, both federal and state,
           cities can provide for the retentionand improvement
           of urban open spaces and the operations of cultural
           programs.

           This section will describe the major mechanisms
           available to communities to undertake these.objectives.
           Those listed below are the people within the state
           agency who can best describe how the programs and p     Iro-
           cedures can be aimed at improving the urban environments.

                           People to Contact

           State Representatives                            Regarding

           ,Division of Conservation Services
           Joel Lerner, Director of.the Division            Funding for Urban Parks
               Cambridge St., Room 2100
           Boston, MA    02202
           (617) 727-1552

           Massachusetts Historical Commission
           Patricia Weslowski, Acting Executive Dir.        Protection  of,Historic,
           State Historic Preservation Officer                     Resources
           294 Washington St., Boston, MA 02108
           (617) 7271-8470

           Massachusetts Council on the Arts    and
             Humanities
           Anne Hawley, Executive Director                  Funding for  Cultural
           One Ashburton Place, Room 619                           Activities
           Boston, MA    02108
           (617) 727-3668

           Department of Environmental Management
           Richard Kendall, Commissioner
           100.Cambridge St., Room 1905                     State Heritage Parks
           Boston, MA    02202
           (617) 727-3163

                                                .-27-

                         BOR/HCRS Grants for Urban Parks

                         atraditionally known as.BOR monies, these grants provide
                          50% reimbursement funding for acquisition and develop-
                          ment of recreational areas

                         amonies actually  come from the Land and Water Conserva-
                          tilon Fund, which until recently was administered at the
                          federal level by the Bureau of Outdoor Recreation (BOR).
                          Now it is administered by the Bureau of Heritage Conser-
                          vation and Recreation Services (HCRS) within the U. S.
                          Department of Interior

                         NBOR/HCRS 'monies are administered.in Massachusetts by
                          the Division of Conservation Services within the Ex-
                          ecutive Office of Environmental Affairs

                         ofunding decisions are normally made every September
                          prior to the start of the federal fiscal year which be-
                          gins October 1.

                         sapplicants should submit a letter of intent in the
                          spring, or no later than the early part of the summer,
                          to the Secretary of Environmental Affairs who in
                          Massachusetts is also the State Liaison OfIficer jitli
                          the federal agency for the purposes of this program

                         memphasis of the program is upon provision of adequate
                          recreational facilities within urban concentrations

                         Urban Self-Help Program

                         ma program anticipat. ed to begin soon in Massachusetts
                          to assist communities in the acquisition of land to
                          be used for urban open space

                         ofunding for the program has been   included inthe
                          state's capital outlay budget

                         slike BOR/HCRS, this program is administered by the,
                          Division of Conservation Services

                         spreliminary regulations include the provision for up
                          to 80% reimbursement-for acquisition projects when
                          the program is used alone
                         owhen combined with a BOR/HCRS project, acquisition
                          reimbursements could rise to 90%

                         sprogram is instituted locally through the Conserva-
                          tion Commission

                                                -28-

           State Heritage Parks

           slarger in scope than the programs described above, this
            new program will begin this year to fund major urban
            parks in a limited number of ci.ties within the state

           mthis program is modeled after the Lowell experience in
            which the state and local governments cooperated to
            provide a comprehensive recreational, interpretive,  and.
            urban design /development strategy-for a major segment
            of the city

           arequests for proposals were     issued by the Depart-
            ment of Environmental Management during July, 1978,

           wSix. communities were chosen in November, 1978 as host
            cities for Urban Heritage State Parks, among them the
            Dort city of Lynn with a DroDosed waterfront Dark. A
            $20 million bond authoriza'ti-on has been supported by
            the Governor for funding of the*parks,

           nheavy emphasis has been placed upon community initiative
            to develop preliminary schemes and to commit  local
            monies,(particularly CD Block Grant funds) for sur-
            rounding related projects

           nprojects must include unique opportunities for the
            improvement and development of natural and cultural re-
            sources of state or regional significance

           bprojects must also be related to the stimulation  of
            area reinvestment, with particular emphasis upon   in-
            volvement of the private sector

                                           -29-

                           Environmental Review of Project Affecting Historic
                           Resources

                           *under federal regulations, any  federal monies (includ-
                            ing CD Block Grant funds) which affect properties on
                            or eligible for the National Register must do so with
                            no adverse effect to those properties, or under a plan
                            to mitigate adverse effects to the greatest degree
                            possible

                           othe system works as follows:

                            *Step One - determine whether there is any property
                             r,
                            ,involved which is on or eligible for the National
                             Register. This must be done in conjunction with the
                             State Historic Preservation Officer. If none is in-
                                     the process ends here.

                            *Step Two   determine whether the project.will in fact
                             affect any property on or eligible for the Register.
                             Concurrence in this decision must be given by the
                             State Historic Preservation Officer. Againf if there
                             is no effect, the process is completed.

                            estep Three   determine whether the project's effect
                             will be beneficial or adverse. Again, concurrence
                             is required by the State Officer, but even if the
                             effect is determined to be beneficial, the Advisory
                             Council on Historic Preservation in.Washington must
                             agree with the decision.

                            eAlternate Step Three - if the result of this step is
                             agreement that the effect will be. adverse, then the
                             project must be dropped or a plan to mitigate the
                             adverse effects must be developed, concurred in by
                             the State Officer, and approved by the Advisory
                             Council.

                           athe important element to note in this process is the,
                            advantage to be gained by consulting early in the ,
                            process with the staff of the Massachusetts Histori-
                            cal Commission

                                               -30-

             Enviranmental Protection  Under Chapter  40C of Massa-
             chusetts General Laws

             wunlike a National Register  Historic  District which
              provides protection only  against.the improper use or
              application of federal monies, a Chapter 40C district
              brings with it the control of every a  rchitectural fea-
              ture proposed.to be altered within the district

             sestablishment of a district locally   begins with a Study
              (_01WIlIttee which prepares a report on the significance
              of the proposed historic area

             nultimat.e@ly a district must be accepted by 2/3's.vote
              of a city council or local governing body

             monce established, the district is administered locally
              by an Historic District Commission

             EtheCommission must give its approval to    each proposed
             ..alteration of an architectural features,  which is de-
              fined in the statute to include such diverse elements
              as color, fence stylest and roofing materials, among
              numberous others

             Funding for Cultural Activities,

             mstate-funding for cultural activities is available
              through the Massachusetts Council on the Arts and,Hu-
              manities, a private nonprofit organization located
              within the Executive Office of Educational Affairs

             mannual support programs are available for the following
              general categories:

              *financial assistance for production, sponsorship or
               support of arts or humanities a@ctivities which serve
               a broad spectrum of Massachusetts citizens

              *financial assistance for conservation of historic
               objects

              *limited financial assistancefor   local community-
               based arts and humanities activi,ties

             wall programs operate on a 50% reimbursement basis

             seligible applicants are nonprofit  organizations based
              in Massachusetts (and in some cases must also be tax-.
              exempt)

             wfunding schedules vary according to   the type of program

             scontact the Massachusetts Council regarding the many
              programs available through the National Endowments on
              the Arts and Humanities
                                             -31-

                       Overview

                       The organization of a city's administrative mechan
                       isms for community development.can have a major impact
                       on the success or failure of a worthy project. Having
                       the structures in place in anticipation of a develop-
                       ment.effort usually means the following:

                       othe-community is aware of all available  funding or
                       procedural incentives and has organized   to take
                       maximum advantage of all leveraging opportunities

                       athe community is serious about its desire to.br ing
                       about revitalization.and has taken all necessary
                       pos-itive-steps internally to prepare and pave the,
                       way for it.

                       Capacity building does not mean that duplicative
                       organizations or positions .need be created in response
                       to.a variety of incentive programs. Rather it means
                       the co-ordinating of the administrative team at the
                       local level to provide both maximum efficiency in its
                                      p
                       outreach and development efforts and maximum,quality
                       in its supportive staff, data and materials.

                       Included in this section are those programs or ap-
                       proaches most useful in the structuring or building
                       of.local capacities for community development.

                                        People to Contact

                       State Repr sentatives                  Regardilla

                       Community Development Finance Corp.    CDC's/CDFC
                       Matthew Hobbs, Executive Director
                       131 State Street, Boston, MA a2109
                       (617) 742-0366

                       State Manpower Services Council        CETA
                       Ralph Jordan, Executive Director
                       Hurley Building, 4th Fl.,
                       Boston, MA 02114
                       (617) 727-4344

                       Department of Community Affairs        Local Community
                       Richard Kobay4'shi, Director, office   organizational.
                       of Local Assistance                    Structures
                       Rm. 1619, One Ashburton Pl.,,
                       Boston, MA 02108
                       (6 17) 7 27-3253

                                                -32-

            Community Development corporations (CDC's)

            WThis broad umbrella term refers to corporations organ-
             ized for the purposes of undertaking actions to assist
             in community development or redevelopment.

            MCDC's generally are formed for specific purposes re-
             lated to particular enabling legislation or funding
             programs. Two of the more pertinent purposes are:

             *CDC's under the Massachusetts Community Development
              Finance Corporation (CDFC)

              Under the enabling legislation establishing CDFC,
              the investment of its equity and debt capital monies
              in privately owned, profit motivated businesses must
              be made by a CDC. The CDC in this case must be anon-
              profit corporation organized within a specific geo-
              graphic area, or "target area," and must define spe-
              cific projects which will add to primary employment
              for the area and which could not be undertaken suc-
              cessfully by private financing mechanisms. The
              corporation must provide that membership be open to
              All residents over 18 years within the geographic
              area and that the Board of Directors by a group bom-
              posed one half by persons elected by the full member-
              ship and one half as appointees of state or local
              government officials or appointees of other non-
              profit organizations in the geographic area. CDPC
              retains the authority to rule particular CDC's eli-
              gible, to accept a "target area" defined by a CDC,
              and to approve each project. Eligible activities
              for a CDFC/CDC include any commercial, industrial, or
              real estate business or other economic development
              activity undertaken in a "target area" to reduce con-
              ditions of blight, economic depression, or widespread
              reliance on public:assistance.

             *CDC's as Local Development Companies (LDC's) for
              Purposes of SBA Programs

              The Small B@Isiness Administration provides assistance
              through Local Development Companies.(LDC's), which are
              another form of a CDC. In this case, SBA stimulates
              the flow of private capital and long-term loans for
              the. financing of business operationsi growth, and
              modernization of small concerns by channeling.its as-
              Pistance through an LDC which actually undertakes  the
              development project. An LDC is formed specifically.
              to assist in packaging and developing the financing
              for particular projects. The LDC can be incorporated
              as either a profit-making or nonprofit company under
              Massachusetts law. Its purposes must be defined

                                             -33-

                      to authorize the promotion and assistance of growth
                      and development of small businesses within a given
                      geographic area of operation. The primary objective
                      ofeach LDC must be the benefit to a community, as
                      measured by increased employment,'payrolls, and busi-
                      ness volume as opposed to profits for its share-
                      holders or members (which.is limited to the average
                      rate of interest paid in financing the project).
                      Each LDC must have a minimum of 25 stockholders or
                      members, of which 75% imust live or do business in
                      the-LDC's area of operation.

                    NThe financing mechanisms actually available through
                     both CDFC and the SBA "502" or Urban Neighborhood
                     Revitalization.programs are discussed in the section
                     titled, "Capacity Building for Commercial and In-
                     dustrial Development."

                                             -34-

                CETA

                OXnown as CETA, the federal Comprehensive Employment and
                  Training Act of 1973 provides funds from the U. S..De-
                  partment of Labor to nine primesponsor agencies in
                  Massachusetts.

                OThe eight city-related prime sponsors    are: Boston,
                  Brockton, Cambridge, Fall River, Lowell, New Bedford,
                  Springfield and Worcester.

                EThe ninth prime sponsor is called "Balance of State,"
                  under which seventeen consortia of sub-grantees have
                  been established to serve the remaining communities
                  of the state.

                NAII the CETA programs   in Massachusetts are overseen by
                  the State Manpower Service Council under the adminis-
                  trative supervision of the Department of Manpower De-.
                  velopment of the Executive Office,of Economic Affairs.

                NThree  titles of the Act are especially pertinent to
                  communities or community-based service groups which
                  are considering local development projects.:

                  *Title I: Comprehensive Manpower Services. Funds are
                   available under this Title for indF@idual job posi--@
                   tions in a broad spectrum of work experiences within
                   the public or nonprofit.-sectors.

                  *Title II: Public Service Employment. Monies for this
                      le become.available to areas whose unemployment is
                   substantial (6.5% or more) for three consecutive
                   months., The purpose.of this Title is defined to     be
                   the provision of "unemployed and underemployed
                   persons with employment in jobs providinq needed
                   ,public services in regions of substantial unemploy-
                   ment.."

                  *Title VI: Public Service Employment. As refined
                   under amended legislation in Octob,Er  of 1976, this
                   Title-now provides for a project approach to public
                   service employment. The emphasis is upon projects
                   which otherwise would not be a-ccomplished.with pub-
                   lic funds and which direct as much money as possible
                   to as'sist the long-term unemployed and welfare re-
                   cipients. A certain percentage of the total project
                   cost.can also be directed toward related expenses.

                                              -35-

                    NAnother section of'the Act, Title III, has been funded
                     recently in three bategories of Youth Demonstration
                     Programs; Youth Incentive Entitlement Pilot Projects,
                     .Youth Community Conservation and Improvement Projects,
                     and Youth Employment and Training Programs.

                    OThe use of any of these Titles, or combinations of.them,
                     can provide critical basic staffing for a downtown,
                     neighborhood, or industrial revitalization project.

                    NThe place to begin is the investigation of funding
                     .availability and funding schedules with the local
                     consortia or prime sponsor.

                                              -36-

           Reorganizing Local Administrative Structures

           scertain communities within Massachusetts have
            ,moved to reorganize their local admini  strative
            governmental structures in order to.function
            more efficiently and to be more responsive to
            innovative programs

           sto use the City of Newton as an  example, the,
            governmental structure there operates for the
            purposes of community planning and revitaliza-
            tion as follows:

            *the Director of the Department of  Planning and
             Development serves as the sole  member of the
             Newton Community Development Authority. This
             structure necessitated a special act of the
             legislature

            -*the CD Authority functions in the usual sense
             of a 121B   agency, but in  addition it assumes
             the role of constructing public housing. The
             housing, once produced, is turned over.to.the
             Housing Authority for operations purposes

            *the Planning Director/CD Authority Member also
             has been assigned by the Mayor the task of
             administering the Community Development programs

            .*the Planning Department,the CD Authority, and
             the Community Development programs all function
            ,with citizen advisory groups to eliminate the
             potential effect of an autocracy

           Othe advantages of this approach, and a similar
            one now in-place in Medford, are the efficiency
            with.which a single operating unit wearing a
            variety of hats is able to administer numerous
          ,,.programs and the flexibility inherent in pro-
            viding varied legal frameworks to respond to
           .limitations of other in-place administrative.
            structures

                                          -37-

                    Included below are brief statements concerning
                    other significant.programs which could prove
                    critical to any community revitalization project.

                    State-Aided Urban Renewal

                    mon March 31, 1918 a Request for Proposals was
                     issued by the Executive office of Communities
                     and Development soliciting applications for
                     financial assistance for Ch. 121B Urban Renewal
                     projects

                    mproject proposals must be returned by July 31st,
                     and decisions concerning funding are expected to
                     be made by September lst

                    mfunding,available under this Request is approx-
                     mately $1.h million

                    mobjectives of the Urban Renewal Implementation
                     Program are as,follows:

                     ethe elimination of decadent, substandard, or
                      blighted open areas which are dangerous,to the
                      inhabitants of the Commonwealth

                     othe redevelopment of land in accordance with a
                      comprehensive plan to promote the sound growth
                      of the community

                     *the prevention of the spread of blight or its
                      recurrence in an area

                    malso noted in the Request as being important ob-
                     jectives of the Program are the "achievement of
                     socio-economic development... such as the provision
                     of jobs for the unemployed, the addition of tax
                     revenue to overburdened communities, or the con-
                     struction of low and moderate housing and space
                     for expansion of local firms"

                    mother program requirements and,priority consider.-
                     ations are noted in the Request package which is
                     available from the Secretary's office

                                              -38-

             Community Development Blo ck GrantZSmall Cities Programs

             Olittle needs to be said here about the details of
              these programs or their effectiveness in providing
              basic, broad financial support for community revit-
              alization strategies

             Elocal municipal governments and community service
              agencies can look to these funds as sources of
              support for a full range of project components,
              from preliminary planning and design to construc-
              tion or procurement of eligible development
              activities and materials'

             Ethe state and federal governments are moving to
              increase their technical assistance to recipient
              communities to help in the proper administration
              of these funds

             UDAG (Urban Development Action Grant)

             na significant new program from the U.S. Department
              of Housing and Urban Development to provide the
              injection of funds necessary"to bring about the
              feasibility of a beneficial community development
              project

             R$400 million dollars are authorized annuall:y to.
              fund this program nationally - $3,00 million is'
              reserved for cities over 50,000 which meet the
              eli.gibility criteria, and $100 million is retained
              for eligible communities under 50,000

             mproposals are accepted on a quarterly basis, and
              are reviewed within that quarter by the UDAG Task
              Force in Washington

             stwo cities in Massachusetts were  recipients of
              grants in the first round of funding. Boston
              was awarded over $10 million for a downtown and
              an area development project, and  Springfield
              received an award of $1.1 million for an in-city
              industrial expansion project

             Neighborhoods and State Incentive Programs

             malthough yet to be authorized as part of the
              National Urban Policy program, these financial
              assistance programs should prove to be of
              further help to community groups and communities
              moving in concert with the state to implement
              the Massachusetts state growth policy

                                            -39-

                   Overview

                   The . subject of building re-use has moved far beyond
                   the questions of "is it the best,thing to do", and "does
                   it really work." Re-use no longer needs to be justified
                   in terms of economic feasibility or architectural qual-
                   ity, nor is it necessary to emphasize again and again
                   the benefits to be gained by this labor-intensive approach.
                   Instead, the adaptive re-use of all types of structures
                   has progressed to the very real investigation of public
                   financial incentives and the study of standards which
                   must be met for purposes of public safety and access.

                   Presented  within this section are descriptions of
                   the several programs or approaches to be considered as
                   a re-use project is being developed. The purpose here
                   is to describe the components which can be combined to
                   provide a comprehensive rehabilitation effort at the
                   local level.

                   Listed below  are persons who can be contacted to
                   give further information and advice about these programs.

                                  People to Contact

                   State Representatives                        Regarding

                   Massachusetts Historical Commission          National Registration
                   Patricia Weslowski, Executive Director       National Park Service
                   294 Washington St., Boston, MA 02108         Tax Reform Act Criteria
                   (617) 727-8470                               Anti-Demolition Contr ols

                   Department of Community Affairs
                   Gene Bunnell, Project Director               Re-use Possibilities
                   One Ashburton Place, Room 1619
                   Boston, MA   02108
                   (617) 727-3197

                   State Building Code Commission
                   Francis Gens, Chairman                       Massachusetts State.
                   One Ashburton Place, Room 1305                        Building Code
                   Boston, MA   02108
                   (617) 727-6196

                   State Architectural Barriers Board.
                   Richard Mackey, Administrative Secretary     Architectural Barriers
                   One Ashburton Place, Room-1319                        Criteria
                   Boston, MA   02108
                   (617) 727-6257

                                                 -40-

          Massachusetts State Building Code

          mfirst effective in,January of 1975, these regulations
           apply to virtually every rehabilitation project

          mthey become particularly relevant when the use or occu-
           pancy of@a structure is proposed to be altered-through
           ,rehabilitation

          mprincipal cut-off points are as follows:

           eif the cost of the rehabilitation work is less than
            25% of the structure value, then the Code applies
            only to the work being undertaken

           *if the cost of the work is 25% toi50% of the structure
            value, then the extent to which the Code shall apply
            within the building is determined by the local Build-
            ing Inspector

           *if the cost of the work is more than 50% of the
            value of the structure, then the entire structure
            must comply with all pertinent elements of the
            Code

          mIvalue is defined as either: the assessed value of the
           structure - or - the actual physical replacement
           value of the structure

          man amendment to the Code became effective in Januaryl
           1978, to exempt "historic structures" from total com-
           pliance even in cases when the cost of the rehab work
           exceeds 50% of value

          mfurther amendments are under consideration to refine
           the Code to,provide properly for human safety within
           older buildings without destroying the historic fab-,
           ric.of.the buildings

                       Architectural Barriers Board

                       ustate board created toassure access to buildings by
                        .the physically handicapped. Most rehab projects will
                        be affected by the Board's requirements

                       wregulations first issued May 29, 1975

                       sprincipal.cut-off points are as follows:

                        Aif the cost of the rehabilitation work is less
                         than 5% of the 100% equalized assessment value,
                         the regulations do not apply

                        eif the,cost represents between 5 and 25% and
                         is less than $50,000, then the regulations
                         apply only to the work being undertaken

                        *if the cost represents between 5 and 25% and
                         is more than $50,000, then the regulations
                         apply to the work being undertaken and require
                         also that an entrance and a toilet be accessi-
                         ble to a person in a wheelchair

                        *if the cost of the work is greater than 25%,
                         then the entire building must comply with the
                         regulations

                       othe areas of application include stairways, elevator.
                        access to upper or lower floors, parking spaces, curb
                        cuts, doors, floors, public telephones and public
                        drinking fountains

                       Othe regulations do permit an appeals procedure when
                        the proposed work would adversely affect an historic
                        property

                                              -42-

            National Re ister of Historic Places

            anational listing of sites, building, structures, dis-
             tricts and objects considered to be.of significance to
             the local community, the region or the nation

            onomination process administered in Massachusetts by the
             Massachusetts Historical Commission

            wCommission relies upon surveys and inventory of historic
             resources carried out by local or regional groups.

            alisting process takes 3 months or more once the nomina-
             tion is made by the Commission. More speedy proceedings
             can be requested for threatened buildings.

            alisting requires proper notification of the property
             owner

            Elisting provides protection from adverse effects pro-
             duced from federally or federally-supported projects.
             Otherwise, no controls are inherent

            alisting provides availability to the National Park
             Service Grant-in-Aid program and@benefits of the-U. S.
             Tax Reform Act of 1976

            'National Park Service Grants

            850% reimbursement grants available to  owners of prop-
             erty listed in the National Register  of'Historic Places
             or to groups undertaking studies

           .Efunded by.the National Park   Service arm now included in
             the Bureau of Heritage Conservation  and Recreation
             Services (HCRS.) of the Department of the Interior

            madministered in Massachusetts by the  Massachusetts His-
             toric.al Commission

            mfunding provided for the following types of projects:

             esurvey and inventory of historic resources

             *planning of restoration strategies, including
              feasibility studies

             *acquisition of historic resources

             &development of resources through an approved
              restoration program
                                            -43-

                      mannual funding rounds for acquisition and development
                       projects begin in May with circulation by the Massa-
                       chusetts Historical Commission of Requests for Pro-
                       posals. Award letters are sent out during the follow-
                       ing winter

                      nfunding for survey and planning projects evaluated
                       throughout the year in response to program proposals
                       submitted to the Commission

                      stotal acquisition and development grants approved in
                       FY78 amounted to nearly $900,000. Funding expected to
                       increase in FY79

                      Tax Reform Act of 1976

                      ofederal act providing income tax incentives for proper
                       rehabilitation of historic structures, and disincen-
                       tives for improper treatment ofsame

                      mgeneral provisions are as follows:

                       *costs of appropriate rehabilitation of historic
                        structures held as income-producing property can
                        be written off over 5 years

                       ean alternative approach involves adding the cost
                        of appropriate rehab of income-producing historic
                        properties to the deductible cost basis which then
                        can.be depreciated in the usual ways

                       *demolition costs of an historic structure must be
                        added to the non-depreciable land base of a project

                       *costs of reconstruction on the site where an histor-
                        ic structure was demolished cannot be depreciated
                        at an accelerated rate

                      scriteria of what constitutes an historic structure  and
                       appropriate rehab are established by the Bureau of
                       Heritage Conservation and Recreation Services of the
                       Department of the Interior, and administered within
                       Massachusetts by the Massachusetts Historical Commis-
                       sion

                      otax aspects of the Act are administered by the Internal
                       Revenue Service

                                              -44-

             Anti-Demolition Controls

             mother than the Tax Reform Act, other local initiatives
              to prevent or discourage demolition are possible

             mlocal ordinances or bylaws can be created to provide
              special review of permits for demolition. Local his-
              torica'l commissions usually are asked to comment in
              some way upon the.historic value of the structure.if
              it. is not on.the National Registerindividually

             ma precedent exists,in the New Bedford ordinance which
              requires the Building Inspector to notify the Histori-
              cal Commission when a request for a demolition permit
              is filed with him: The Commission,      in turn, must re7
              port to the City Council on the significance of the
              building, and the'-Council itself has to vote to grant
              the permit

             Re-Use  Possibilities

             mon a more positive tack, building owners can get help
              in considering appropriate re-uses for buildings.

             swithin the Department of Community Affairs,a team of
              specialists work regularly with community officials
              and private owners in providing advice on re-use

             ma semi-public body, ACT for Massachusetts,     Inc.,   is
              partially funded through the Massachusetts      Historical
              Commission.to investigate the feasibility of proposed
              building re-use in specific cases

                                              -45-

                                                                     -46-

             Marine Industrial Development
             Cargo and Shipping

           More than half.of the country's population lives within 500 miles
           of Massachusetts' borders and the Commonwealth has the closest
           major city to Europe in Boston. To take advantage of its geographi-
           cal position, the state has to place port development higvi on Its
           agenda of economic priorities. We have already seen.a re-birth
           of the maritime industry in Massachusetts., with shipbuilding and
           the fishing industry, and we expect to see a continuation of this
           rejuvenation with other types of marine industry. Those reliant
           upon maritime shipping to transport material or processed goods
           favor port locations to minimize shipping costs. These industries
           include frozen and fresh fish processing.and distribution, cargo
           .(both general and containerized), sugar and other raw products
           requiring refining and processing, such as gypsum..

           some maritime industry such as tugboat  servicing, shipbuilding,
           and boat yards provide needed services for the fishing and shipping
           communities and must also be accomodated.

           Currently there are over 50 thousand individuals employed in mari-
           timerelated industries and this figure is expected to grow. Con-
           tainerized shipping, ferry services and marine industry, in par-
           ticular, exhibit a real potential for expan .s.ion and a growing need
           for ha.rborfront space. In addition, non-containerized cargo and
           dry bulk cargo may, to some extent, increase as well.

           The City ofLynn is planning for the construction of a marine
           industrial park and some consideration is now being given to
           the location of a containerport there. New Bedford recently was
           designated as a foreign trade zone and is now seeking waterfront
           land to take advantage of this situation. The city is in the pro-
           cess,of upgrading its fishing resources under a $1.25 million:EDA
           grant for pier improvements. In addition, the state is prepared.
           to spend approximately $2 million to upgrade.the state pier facili-
           ties through const,tuction of a new-cargo shed designed to handle
           increased cargo and trade.

           Fall River, as well, is seeking to'expand its marine industrial
           base and is proposing rehabilitation of the state pier; a dredging
           improvement project toprovide better water access is part of the
           proposal.

           The above examples are only a few of the many that demonstrate a
           renewed interest in Massachusetts' port.potential. It comes at
           a critical time. For currently, the ports play a major and growing
           role in the state's economy. We must strive to both retain our
           current.port-related jobs as well as expand that base through the
           promotion of increased trade and port development.

                                           -47-

                         Overview

                         Two factors face  any business which is seeking
                         to locate or expand within an urban area: first
                         is the availability of capital and second is its
                         cost. In Massachusetts there h
                                                          ave been mechanisms
                         put in place to assist urban-oriented industries in
                         fi'nding improved access to capital sources or in
                         finding that capital at a borrowing rate which
                         permits project feasibility.

                         These programs, in concert with those of the Small
                         Business Administration and the Economic Development
                         Administration of the federal government, increase
                         the capacity of an urban community to compete for
                         industrial growth. Proposals are now being con-
                         sidered to expand this competitive capability of
                         downtowns as locations for major commercial develop-
                         ment.

                         This section presents information regarding the state
                         and federal capacity building programs. They should
                         be viewed in conjunction.with those outlined in the
                         State Incentives chapter as a unified attempt by
                         Massachusetts government to help in the rebuilding
                         of city and town centers.

                                            Peoj2le to Contact

                         State Representatives                          Regarding

                         Mass. Industrial Mortgage Insurance   Agency MIMIA
                         Thomas D'Avanzo, Executive Director
                         131 State Street, Boston, MA 02114
                         (6 17) 72 3-4 2 42

                         Division of Community Services                 EDIC
                         Carol LaBella, Administrator                   IDFA
                         One Ashburton Place, Room 1619
                         Boston, MA 02108
                         (617) 727-7001

                         Mass. Capital Resource Company                 CRC
                         Daniel Holland, President.
                         11 Beacon Street, Boston, MA 02108
                         (6 17) 36 7- 39 6 0

                         Mass. Employer Training Assistance             META
                         Department of Manpower Development
                         Richard Hawkins, Director
                         Charles F. Hurley Bldg., Boston, MA 02114
                         (617) 727-5370

                                                 -48-

           Federal Rel2resentatives                    Regarding

           tconomic Development Administration         EDA
           William Fitzhenry, Representative
           441 Stuart Street, Boston, MA 02116
           (617) 232-6468

           Small Business Administration               SBA
          .Altert Pendergast, District Director
           150 Causeway Street, Boston, MA 02114
           (617) 223-5525

                                          -49-

                           Industrial Development Finance Authority (IDFA)

                            An IDFA has the authority to issue tax-exempt revenue
                            bonds for the acquisition of sites and the construc-
                            tion of facilities for industrial and downtown commer-
                            cial occupants. Industrial occupants are defined as
                            manufacturing, research and development, and public
                            utilities in the case of pollution control facilities.
                            Downtown commercial can include such diverse activities
                            as retailing, restaurants, or hotels.

                            An IDFA may be formed in any municipality by vote of
                            city council or town meeting.

                            The financial condition or credit rating of the firm
                            determines the marketability of the bond issue.

                            Tax exempt industrial revenue bonds financing is sub-
                            ject to three restrictions under the Internal Revenue
                            Service Code:

                            1.  Revenue bonds issued to finance new businesses or
                                the expansion of facilities are limited to $5 mil-
                                lion. A company may not exceed $5 million, includ-
                                ing revenue bonds, in total capital expenditures
                                (depreciable assets) within the municipality in
                                which the project is located for a six-year period
                                beginning three years before the date the bonds
                                are issued and ending three years after the date
                                of the issue.

                            2.  Bonds may also be issued under the $1 million pro-
                                vision, which allows a firm to issue up  to $1
                                million in revenue bonds with no limitation on
                                capital expenditures.

                            3.  There is no limit on the size of a bond issue
                                when used for the financing of pollution abate-
                                ment facilities.

                            Massachusetts Industrial Finance Authority (MIFA)

                            The Massachusetts Industrial Finance Authority was
                            recently authorized by state enabling legislation to
                            serve as the umbrella agency for the Massachusetts
                            Industrial Mortgage Insurance Agency (see below) and
                            the State Industrial Finance Board (which reviews the
                            conditions under which tax-exempt bonds are permitted
                            to be issued).    In addition, this Authority makes
                            these tax-exempt bonds available in every community,
                            even those which do not have a local IDFA. More is
                            said about this new body in the later section summar-
                            izing the 1978 legislation.

                                                -50-

             Massachusetts Industrial Mortgage Insurance Agency (MIMIA)

              MIMIA insures  up to the top 40 percent (up to $400,000)
              of loans made  by banks or other institutions; an insur-
              ance premium  is charged for this service.

              Loans insured  by MIMIA must.be secured by a first mort-
              .gage.on real or personal property.

              Profit.and non-profit businesses engaged in industrial,
              recreational, or research and development activities
              have typically been eligible for this insurance. With
              the new commercial incentive legislation now in place,
              businesses which seekto rehabilitate existing buildings
              for commercial purposes also.now may make use of this
              financial incentive.

              The industrial project for which the loan is soughtmust
              create primary employment.(defined as full-time permanent
              jobs whose entry level hourly wage is at least 150 percent,
              Iof the nonmanufacturing minimum wage as defined in MGLA,
              c. 149).

              Further, forthe plant, the principal amount of the loan
             ,is limited to 90 percent of the cost of the plant, and
              the term may be no more than 30 years.

              For equipment and machinery,   the principal amount of the
              loan is limited to 80 percent of cost, and the term may
              be no more than 15 years.

              Activities for which MIMIA insurance   is eligible are:
              acquisition, construction, or,alteration of "in-
              dustrial development facilities," e.g., buildings,
              docks, wharves, land, machinery, equipment, roadways,
              office, etc., and now for commercial activities in
              rebabilitated buildings. More is said.about this new
              aspect of the legislation in a.later summary of the
              commercial incentive bills.

              Economic Development and Industrial Corporations (EDIC)

              .An EDIC has the power to:

                *issue tax-exempt revenue bonds to finance the
                  acquisition of land and/or theconstruction or
                  rehabilitation of industrial or manufacturing
                  facilities.

                wissue bonds in anticipation of revenue;   there-
                  fore  unlike an IDFA, an EDIC can prepare sites
                  or facilities before recruiting specific indus-
                  trial clients.

                                         -51-

                           stake land by eminent domain

                          Projects for which EDIC bonds.are issued must be lo-
                          cated within an "economic development area" (a.
                          blighted or open.area defined in section one of
                          Chapter 121B of the Massachusetts General Laws)
                          which is zoned for general or restricted manufac-
                          turing uses, and must be undertaken in accordance
                          with an economic development plan adopted by the
                          locality.

                          An EDIC may be formed in any locality of the   Common-
                          wleath which is designated by the Department  of Labor
                          as being within an area of "substantial unemploy-
                          ment."

                          If a municipality is not within an area of "substan-
                          tial unemployment," the Secretary of Communities and
                          Development may certify the municipality as eligible
                          if it is determined that the municipality would by
                          itself meet the cri-erion of "substantial unemploy-
                          ment.11

                          In order for a town to be  eligible to form an EDIC,
                          it must, in addition to the requirements above, be
                          certified by the Secretary of Communities and De-
                          velopment as satisfying certain requirements.

                          The Internal Revenue Service Code restriction on
                          ,tax-exempt revenue bonds as:described in the section
                          on IDFA's also apply to EDIC's..

                          Massachusetts Capital Resource Company

                          Othe Massachusetts Capital Resource Company is a
                          newly-formed investment pool that will provide un-
                          secured loans to small and medium-sized businesses
                          in Massachusetts.

                          8this lending entity was recently formed by the
                          state's domestic.life insurance companies. Up to
                          $100 million of  capital will be available for loans,
                          with $20 million being provided each year for a
                          'period of five years

                          Othus far, $20 million has been contributed to the
                          fund by the state's domestic life insurance com-
                          panies      -

                          Nexplicit investment guidelines are in the process
                          of being developed

                                             -52-

          Small Business Administration

          Section 7A: Loan Guarantee and Loan Program

          man eligible business can receive an SBA guarantee of
           up to 90 percent ($506,1000 maximum) of a loan.made by
           a private lender. under some circumstances, a direct
           loan of up to $150,000 can be arranged

          mmaximum, length of loan is six years  for working capi-
           tal, ten years for equipment, and 20 years for new
           construction

          minterest rate is  6 5/8 percent for direct loans   from
           SBA; maximum allowable  interest rate on privately-
           secured loans is set quarterly

          snormally, one-third of  total cost is required as
           equity by the bu.siness  (especially in the case of a
           new business)

                    businesses are  independently owned and oper-
          ,ated, not dominant in their field of business, and
           fall within SBA size guidelines (which vary according
           to type of business activity)

          Section 502 and the Urban Neighborhood Revitalization
          Progra

          man eligible business  can rece .ive a loan of up to  100'
           percent of its financing needs, for up to 25 years, from
           a Local Development Company (LDC) which is funded by
           an SBA loan or loan guarantee

          Mthe LDC can be incorporated as a non-profit or     a
           for-profit corporation organized for promoting economic
           development in specific loan areas

          asev enty-five percent of the corporation's  voting power
           (minimum 25 shareholders) must be controlled by per-
           sons residing or doing business in.the target area

          mthe LDC may finance its 10 to 20 percent equity share
           out of stock sale proceeds,.donations, subordinated
           loans, or state or federal grants. No more than 25
           percent of the LDC's share for a particular project
           may be donated by the business to be assisted

          ESBA participation is limited to $500,000 for each
           small business to be assisted

                                           -53-

                    munder the Urban Neighborhood Revitalization program,
                     an LDC formed in a commercial area of an older urban
                     neighborhood can operate under slightly relaxed
                     regulations. Control of the LDC by persons having
                     pecuniary interest in the business(es) to be assisted
                     may be as high as 75 percent (compared to 25 percent
                     normally). The LDC's equity share may be as low
                     as 10 percent of the total assistance to small busi-
                     nesses.

                                            -54-

         ..Economic Development Administration (EDA)

         The following EDA programs provide assistance to communi-
         ties and  businesses.. The authority for these programs
         derives 'from  The Public Works and Economic Development
         Act of 1965.

         Title I:.  Public Works   and Development Facilities     Program

          othis prog  Iram provides grants of from 50 - 100 percent
            of project cost depending on location.(60: - 70 percent
            in poverty areas 80 percent in disaster are
                                                 1            as, 100
            percent in municipalities which have demonstrably ex-
          .hausted..their taxing and borrowing capacity); and
            loans of,up to 100 percent of project cost

          -ostates., municipalities, special authorities, and public
            or private non-profit organizations representing EDA-
            designated ".redevelopment areas" are eligible for assis-
                   projects must be located within either rede.vel-
            opment:areas or centers in "economic development dis-
            tricts",

          seligible.activities are acquisition,,     development, or
            expansion of public works facilities including water
            and sewer'systems, site improvements for industrial
            parks,. factories and port facilities; such facilities
            must further the establishment or expansion of indus-
            trial or commercial enterprises or otherwise create
            long7term employment opportunities

          mloans, where used, are for 100 percent.of project cost,
            up to 4.0 years, at a low interest rate one half above
            the current U.S. Treasury borrowing rate

          mareas  wishing to qualify as redevelopment areas       must
            meet statistical criteria regarding unemployment and
            related factorsi and must prepare and have approved.
            by EDA an Overall Economic Development Program        (OEDP)

          was a matter of EDA    policy, funds cannot be used.    for
            acquisition of land, but can be used for facilities
            located on land owned by public ornon-profit entities;
            projects must conform with the applicable OEDP,

                                              -55-

                        Title II: Business Development Loans

                         othis.program provides direct loans of up to 65 per-
                          cent of the project cost; remaining funds must be
                          provided by: 15 percent equity investment (or sub-
                          ordinated loan to) the applicant; 5 percent from state
                          or local goverrment or non-prof it organization; 15
                          percent from other non-federal sources; EDA may guar-
                          antee up to 90 percent of the unpaid balance of loans
                          and up to 90 percent of rental payments on guaranteed
                          leases

                         weligible applicants are any public or private entityi,
                          including non-profit corporations, for-profit corpora-
                          tions, sole proprietorsnips, and partnerships; (hence,
                          unlike other EDA programs, Title II potentially includes
                          cooperatives); projects must be located in EDA-desiqnated
                          redevelopment areas or certain sections of economic
                          development districts

                         mactivities eligibiefor funding are acquisition of fixed
                          assets, including land, building, equipment, machinery,
                          land preparation, and building rehabilitation,, for in-
                          dustrial or commercial enterprises; working capital
                          loans for industrial or commercial enterprises

                         nsome of the terms and conditions of the loans are the
                          following:

                          emaximum fixed asset loan term is 25 years or the
                           weighted average of the useful life of the assets
                           financed, whichever is less

                          *maximum working capital loan term is five years

                          einterest on direct loans is at a rate set by the
                           Secretary of the Treasury based upon current U.S.
                           borrowing rates, plus an additional charge for working
                           capital loans reflecting their higher risk

                          *interest on guaranteed loans is at the prevailing bank
                           interest rate

                          *as indicated above, a 15 percent equity contribution
                           on the part of the applicant is required

                          Olines on fixed assets and/or receivables   and inventory
                           are required as collateral, but EDA will   take a sub-
                           ordinated position as necessary to encourage participa-
                           tion by lending institutions in fixed asset loans

                          *personal guarantees are fre quently required

                          *all loans must be consistent with the applicable area
                           OEDP and must be approved by a state or local economic
                           development agency (in Massachusetts, this function is

                                               -56-

              normally performed by the Office of State Planning
              as the comprehensive economic development planning
              agency funded under Section 302 of the Act)

          Title IX: Direct Special Assistance Grants      to Govern-
              mental Entities

             mthe Title IX program is considered.one of   the most
             flexible of EDA programs thereby lending itself to
             innovative and creative use

             wareas that qualify for Title IX assistance must   ex
             perience or anticipate experiencing: severe unemploy-
             ment arising from economic.dislocation, severe changes
             in economic conditions, or long-term economic deter-
             ioration

             minitially the grant must be given to  either A redevel-
             opment area or economic development district established
             .under Title IV of the EDA Act; an Indian Tribe; the
             Governor of a Statel or a State Agency designated by
             him; a city or other political Subdivision of a State,
             or a consortium of such political Subdivisions; however,
             such a recipient can redistribute   the grants it receives
             to public and private entities in   the form of grants,
             loans,.loan guarantees, etc., but   funds cannot be granted
             to a private profit-making entity

             wgra nts under Title IX may be used for the acquisition
             or development-of land and improvements fo   r public works
             .or public development facilities; the construction, re-
             habilitation, alteration, expansion, or improvement of
             these facilities are all eligible activities

             -mgrants may also be used,for the purchase, development,
             and operation of land and facilities (including machinery
             andequipment) for industrial or commercial use,.includ.-
             ing the construction of new buildings, the rehabilita-
             .tion of abandoned or unoccupied buildings, and the al-
             teration, conversion, or enlargement of existing buildings

             win addition, grants may be used for public.se  rvices,
             rent supplements, mortgage payment assistance, reloca-
             tion of individuals, training, technical assistance,
             and for other appropriate purposes if reasonably re-
             lated.to the purposes of Title IX

             man eligible recipient may redistribute grants in the
             form of direct grants, loans, loan guarantees (which
             can include loans or loan guarantees for working cap-
             ital,and guarantees or rental payments of leases for.
             buildings or equipment) to qualified entities

             asome.of the terms and conditions are that:.

                                           -57-

                             ea 25 percent.matching share, cash or in-kind, is
                              required

                             *the eligible recipient must have a plan or planning
                              application that has been approved by EDA and sub-
                              mitted.to A-95 for review

                             *any money loaned by the recipient must be repaid
                              and re-used for economic adjustment

                                              -58-

                    Urban Job Incentive

                    wCorporations engaged in manufacturing, research and de-
                     velopment, or warehousing that locate or expand in eli-
                     gible areas may receive two types of incentives (each
                     one for up to ten years):

                     *Property Tax Credit. An eligible corporate faci-
                      lity receives a state tax credit against its cor-
                      porate excise liability that reduces its property
                      tax liability to the statewide average level. The
                      amount of the credit is determined by multiplying
                      the assessed valuation of the property by the dif-
                      ference between the local equalized tax 'rate and
                      the statewide equalized tax rate. The locality
                      foregoes no revenues through this program; the
                      credit is entirely paid for by the state.

                     OPa rol@ .Ded        The corporation receives a
                       _yquction.
                      deduction from its corporate excise tax equal to
                      25 percent of the eligible facility's compensa-
                      tion paid to employees living in eligible areas
                      within the Commonwealth. (A corporation must
                      choose between the payroll deduction and the $500
                      Employment Opportunity Incentive.)

                    MTo beeligible for the Urban Job Incentive, the facility
                     for which the corporation receives the credit

                     *must be located in or adjacent to an area of sub-
                      stantial poverty

                     *must serve an area larger than the'eligible section
                      of substantial poverty

                     emay be either a new place of business or a substan-
                      tial addition to existing physical facilities

                     emust hire at least 20 percent and no fewer than
                      five employees from'the area in which the facility
                      is located

                     Smust provide an approved training prbgram certified
                      by the Urban Job Incentive Bureau

                                                60-

           Chapter 121A

           wA single purpose urban redevelopment   corForation may
            contract with a municipality to make   payments in lieu
            of taxes on an eligible real estate project. These pay-
            ments are customarily set at a certain percentage of the
            project's'gross income and provide for predictable pay-
            ment levels that are typically below   what the project
            would pay without the contract.

           oThe contract is established for a period   of 15 years,
            and may be extended for up to an additional 25    years
            contingent upon the project's provision of certain pub-
            lic amenities.

           oThe project must be in an eligible area defined by
            statute as blighted, decadent, or substandard. A
            project is eligible if it is newly constructed, reno-
            vated, or rehabilitated. Residential, commercial, in-
            dustrial, institutional, recreational, or govern-
            mental.buildings and incidental facilities qualify.

           mContracts must be approved by the local planning
            board and legislative.body, after a public hearing,
            and (except projects within the City of Boston) by the
            Massachusetts Department of Community Affairs.

           sMortgage financing by the corporation is limited to
            90 percent of project cost. Stockholders' dividends
            are limited to 8 percent per year.

            Massachusetts_Employer Training_Assistance

            NA firm expanding its Massachusetts' employment may re-
             ceive state assisted, customized.labor training by con-
             tacting the state Department of Manpower Development.

            NTo be eligible, a firm must fill ten or more skilled
             positions within six months, at $4 per.hour or higher.

            NThe state offers intensive recruiting of currently un-
             employed citizens, supervisor .y training and assistance,
             and-contract with secondary-school, post-secondary-
             school, and CETA-prime-sponsor, on-the-job training
             programs.
            NTh e META program may qualify as an approvable training
             program for purposes of the Urban Job Incentive.

                      Payroll Factor Incentives

                      wThe Massachusetts corporate excise  tax is computed on
                       two bases:  net income and net worth (or tangible pro;Derty)
                       For multi-state corporations, a portion of net inc-ome
                       is allocated to Massachusetts' operations according to
                       a formula that adds in-state sales, Payroll, and. prop-
                       erty with each component assigned a relative weight.

                      oPayroll Factor Incentives refer to the formula used for
                       net income allocation.

                      mGrowth Incentive. The total payroll counted for tax
                       purposes.is limited to either the 1972 in-state payroll
                       level plus five percent annual growth, or 75 percent of
                       current in-state payroll, whichever is greater.

                      wThus, up to 25 percent of the corporation's payroll is
                       not entered into the net income computation. This re-
                       duces the state tax liability as much as 10 percent.

                      mLocation Incentive. The weight of the sales factor in
                       the net income computation has doubled between taxable
                       year 1975 and taxable year 1977.

                      oConsequently, the relative weight of in-state property
                       holdings has been lowered. A corporation will receive
                       an automatic Massachusetts' tax reduction when expand-.
                       ing plant or property in Massachusetts, whether the
                       firm is headquartered in-state.or not.

                      wState tax liability may thus be reduced by 30 percent
                       or more.

                      3% Investment Tax Credit

                      wManufacturing and research and development corp  orations
                       receive a tax credit against their corporate excise
                       liability for three percent of the value of real and
                       tangible personal property acquired during the year.

                      nPlant, machinery, and equipment (new or used) are eli-
                       gible if the expected useful life is at least four
                       years.

                      nProperty that the corporation leases (as a lessor)
                       is not eligible.

                      athe credit may be carried forward for up to three
                       years.

             Employment 22portuj2ijy_j:@centive

             wManufacturing and research and development corporations
             can, subject to certain limitations, receive a $500
             state tax credit.for each new job created in Massa-
             chusetts.

             oThe credit applies to taxable years 1973.through 1977..
             Extension of the credit is currently before the state
             Legislature.

             wConditions for an existing firm. For each credit
             claimed, the corporation must show that an employee
             from the eligible pool (see below) was hired during
             the taxable year or was retained from years prior to
             1973.*

             aThe corporation must have maintained an average three
             .percent annual emplo*ent growth rate.sinde 1972.

             �The maximum number of credits claime-d@for each of'the
             ..five successive tax years equals the number of full-
             time employees exceeding the 1972 full-time employees
             times 1.03, 1.06, 1.09, 1.1201- 1.15. For example, a
             firm employing 100 full-time employeesin its 1972
             taxable year receives a $500. credit for each employee
             hired from the,eligible pool, who brings the firm's
             total employment over 103 in 1973, over 106 in
             1974, over 109 in 1975, etc.

             sConditions for a new firm. The eligible pool restric-
             tion applies to new firms as well as to existing f Iirms.

             mThe maximum number of credits alaimed by a new firm
             for each successive year of its first five years (dur-
             ing the 1973-1977 taxabl& period) equals the current
             -full-time employees minus 0, 20, 40, 60, and 80 per-
             cent (successively) of its first-year full-time em-
             ployees. For example, a firm begun in 1974 with ten
             employees, five of whom wei7e hired from thIe eligible
             ,Pool, can receive a 1974 credit for each of the
             five employees. If the firm hap grown to 20 employ-
             ees in its 1975 taxable year, with five of the new
             employees hired from the eligible pool, the.five
             new employees plus 80 percent of the previously-
             ,.eligible employees are counted for the credit: a
             total of five plus four, or $4500.

             wEligible pool. Employees hired directly from unem-
             ployment compensation, approved public or private re-
             .habilitation programs, public assistance programs, or
             who participated in company or other training programs
             (approved by Secretaries of Manpower Affairs or Com-
             munities and Development).

                                           -63-

                 Overview

                 Particularly significant to most plans which deal
                 with the improvement of an urban area is the upgrad-
                 ing of the transportation network. In some cases
                 improvement may mean the alteration of the existing
                 roadway system to help streets already in place to
                 function more efficiently. Sometimes needed is the
                 provision for adequate off-street parking. In cer-
                 tain cities the expansion of the public transporta-
                 tion system is required, or the provision for central
                 facilities to accommodate this system is a key to an
                 urban center project.'

                 The funding programs available to solve these pro-
                 blems are primarily those which emanate from Washing-
                 ton and are administered in Massachusetts through
                 the Executive Office of Transportation and,Construc-
                 tion. These programs have takenl.on new meaning
                 within the last few years as the conception of
                 transportation has broadened to provide for its
                 acceptance as a positive tool for community revital-
                 ization. The evidence of this altered approach    is
                .apparant in programs which emphasize joint develop-.
                 ment activities around commuter tail stations, or
                 which include provisions for adjacent sidewalk
                 amenities instreet upgrading projects.

                 Described in this section are those  programs which
                 permit transportation systems to@help in a strategy
                 to focus on downtowns. Those listed below may be
                 contacted for more detailed information in these
                 subject areas.

                                   People to Contact

                 State Repr@-@sentativiz@s                       Regarding

                 Mass. Department of Public Works                Improvements
                 Dean Amadon,      Ass], -stant Commissioner     to City Roads
                 Rm. 4800, 100 Nashua Street, Boston, MA 02114
                 (617) 727- 4800

                 Ex. Of. of Transportation and  Cons,,*truction  Off-Street
                 Jim O'Leary, Assistant to the  Secretar         Parking
                 Rm.1610 , One Ashburton Pl., Boston, a 02108
                 (617) 727-6457

                 Ex. Of. of Transportation and Construction      Urban Mass
                 Mary Lynn Kiley, Assistant Secretary            Transit
                 Rm.1610 , One Ashburton Pl., Boston, MA 02108
                 (6 17) 7 27- 89 54

                                              -64-

                 Urban Systems

                 mthis program provides funding for improvements
                  to an existing urban roadway system

                 wit is administered in Massachusetts by the
                  Department of Public Works within the Executive
                  office of Transportation and Construction

                 mthe program provides for 70% federal funding;.
                  the remaining 30% is paid with state funds.

                 mcertain categories of improvements       recon-
                  struction, removal of on-street parkingr
                  reallignment, etc. - are typical of the
                  application of the program guidelines. Also
                  funded under the program, however, can be
                  sidewalk improvements, streetlight upgrading,
                  and tree plantingalong improved roadways

                 man eligible activity is the funding by the
                  state of professional services for the prepar-
                  ation of designs. Nevertheless, if a community
                  wishes to move its project:quickly, an alternate
                  approach involves local funding of engineering
                  services to produce designs which:can be approved
                  at the state level for construction financing

                 mCh. 90  county/local monies can be used toup-
                 .front the cost of engineering services

                 Urban Mass Transit (UMTA) Funding

                 Outside of  the MBTA service area:

                 Etwo types  of funding are available for urban
                  mass transit through the eligible applicant,
                  the regional transit authority

                  *operating monies for the authority, with
                   50*% coming from the federal'government,%
                   @25% from the state government, and 25%
                   to be contributedby the service communities

                  *capital  improvement, monies for equipment and
                   facilities to serve   mass transit us  ers, with
                   @80% funding fromthe federal government, 10%
                   from the state, and the remaining 10% to be
                   assessed to local service communities

                                              -65-

                  *the provision of public transportation has grown.
                   to be a significant enough issues over the last
                   few years that five major and six lesser sized
                   regional transit authorities - in addition to the
                   MBTA - have been authorized under state law. The
                   larger authorities are:

                   ePioneer Valley Transit Authority
                  .*Worcester Regional. TransitAuthority
                   *Sou theastern Regional Transit Authority
                   *Brockton Area,Transit Authority
                   *Lowell Regional Transit Authority

                   The smaller authorities are:

                   *Berkshire Regional Transit Authority
                   *Greenfield Montague transit Authority
                   e.Merrimack Valley Transit Authority
                   *Cape Ann Transit Authority
                   *Greater Attleboro Taunton Regional Transit Authority
                   :*Cape Cod Regional Transit Authority

                  othe capital improvement monies arebecoming   signi-
                          to downtown projects which wish to incor-
                   porate a variety of services in their programming.
                   and leverage all sources of public funds to   the
                   greatest extent feasible (see discussion below about
                   off-street parking)

                  Inside,the MBTA service area:

                  wthe programs remain essentially the same except
                   that the Authority is permitted to bond for the
                   10% "local" component

                  Commuter Rail

                       MBTA'now owns virtually  all the passenger
                   rail lines and equipment previously  held by
                   the B & M system and Con Rail

                  swithin the MBTA service area, rail  service functions
                   similarly to other MBTA travel modes

                  woutside the MBTA service area., each community wishing
                   to provide commuter rail service contracts annually
                   with the T and agrees to.fund the difference between
                   the total assessed operating deficit and that paid
                   by the.state. At the moment the ratio stands at
                   75% state, 25% local

                                              -66-

                   Funding off-Street Parking Facilities

                   sunder both Urban Systems and UMTA  programs, it is
                    possible to obtain funding for off-street parking
                    facilities

                    *urban Systems monies can be used to pay for the
                     replacement of spaces lost through the removal
                     of on-street parking in an Urban Systems improve-
                     ment project, or through some other federally-
                     funded street improvement program

                    9UMTA funds Are available to fund the provision
                     of fringe off-street parking which will serve
                     riders of inter-city transit or transit authority
                     vehicles

                   wrarely do either of these two approaches or their
                    uses in combination provide the number of spaces
                    in an off-street facility found to be needed to
                    serve'a downtown revitalization project. Never-
                    theless, proportional funding by both programs
                    can prove helpful

                   athe way to begin is for the city and the pertinent
                    authority to.join forces and provide valid infor--,
                    mation regarding both spaces lost, in one case,
                    and spaces expected to be required in the other,
                    in a co-ordinated request for assistance to the
                    Executive Office of Transportation and Construc-
                    tion

                   Development Around Transit Centers and Multi-
                   Modal Centers

                   nboth of these concepts are being considered more
                    and more often within downtown revitalization
                    programs

                   ato an extent, both concepts can be funded now
                    under existing UMTA regulations

                   munder the proposals of the National Urban Policy,
                    cbnsiderably more funding would be made available
                    for assisting in the development of improvement
                    activities around designated transit centers

                                              -67-

                                                               -68-

            Fishing

           For more  than 350years, the  Massachusetts fishing industry has
           beena major supplier of the   nation's protein. Across the United
           States, this state is known  for its sea scallops, cod, haddock,
           and yellowtail flounder -- most of which are shipped fresh, making
           Massachusetts a primary supplier of the nation's fresh fish products.

           In 1977, Massachusetts was ranked fifth in the nation in both
           volume offish landed and value of the catch. The industry is
           supported by at least 800 vessels fishing from numerous ports and
           harbors along the coast. The major ports are Gloucester, New
           Bedford, and Boston; the primary harbors: Sandwich, Provincetown.
           and Chatham. There are at least 3500 commercial fishermen in the
           state, supplying fish and shellfish to 57 Massachusetts processing
          @and wholesaling plants which employ approximately 4500 people during
           the year.

           The fishing industry has a significant impact upon the Massachusetts
           economy. Support industries include fuel services, gear supply,
           food, ice, marine railways, marine engine and equipment repair,
           electronics'supply and repair, and lumber yards. Most all of the
           Massachusetts catch is transoorted to market via truck; some fish
           is air freighted to distant markets. Taking all into account, the
           fishing industry's yearly contribution to our economy may be esti-
           mated-at some $515 million.

           opportunities for the industry to enlarge and diversify have been
           enhanced by the Passage, in 1976, of the-Fishery Conservation and
           Management Act, extending federal fisheries jurisdiction out from
           3 to 200,nautical miles. The Act established eight regional councils
           responsible for developing management plans for the harvesting of
           various fish species under their individual jurisdictions. The New
           England Regional Fishery Management Council is responsible for the
           waters off New England, which include the Gulf of Maine and Georges
           Bank. To date, the Council has implemented a fishery management
           plan for the Atlantic groundfish: cod, haddock, and yellowtail
           flounder, and is pr esently working on plans for Atlantic sea herring,
           sea scallops, pollock and the hakes.

           With the growth in the domestic fleet, and after many years of heavy
           fishing by foreign vessels, some of the traditional species of fish
           (such as the Atlantic groundfish) are presently at levels which can-
           not support the harvest the industry is capable of taking and pro-
           cessing.

           This situation, coupled with the ability under the FCMA to regulate
           foreign fishingl has stimulated much discussion and investigation,
           into the harvesting, processing, and marketing of nontraditional
           fish species. Foreign nations fishing off our coast have concen-

                                           -69-

                   trated on such species.as mackerel, the squids,whiting, and red
                   and white hake. While there is a limited domestic market for these
                   species, there continues to be considerable demand in foreign mat-
                   kets. Before the Massachusetts fishing industry can expand its
                   capabilities to meet the market demand for these nontraditional
                   species, fishermen will need to retrofit or construct new vessels
                   to catch and handle the catch, and there must be an adeuqate num-
                   ber of onshore facilities to guarantee quality handling and/or
                   processing before export. 7his requires capital investment in the
                   industry.

                   Since most of the foreign fishing off our coast has been restricted
                   or prohibited, considerable foreign development capital exists
                   for construction and purchase of vessels as well as processing
                   capacity here in New England. Many Massachusetts businesses have
                   been approached by various foreign investors who have -een willing
                   to enter into almost any type of financial arrangement to help
                   guarantee a constant supply of fish. There have also been propo-
                   sals to have domestic vessels transfer catch at sea to foreign
                   processing vessels. Foreign investment and involvement in the
                   domestic fishery, particularly here in Massachsuetts, is a serious
                   issue in need of discussion and resolution within the industry,
                   the financial community, and state government.

                   The fishing industry is at a critical point: new markets are
                   available toit, providing the fisheries are developed. Without
                   these new fisheries, the industry in Massachusetts will continue
                   to be limited by the allocations established through the N.E.
                  .Regional Fishery Management Council's plans, as the state's fish-
                   ing industry is dependent upon many of the fish stocks subjected
                   to heavy fishing pressure over the last fifteen years. A closure
                   in any one fishery, due to restrictive regulations, will force
                   fishermen into a fishery for which the price  .paid is low, but for
                   which the species can be caught in large quantities.

                   .In addition to the growing demand for capital investment in the
                   nontraditional fishery, there,is a similar need for a renewed com-
                   mitment on the part of communities and the state to provide ade-,-,
                   quate waterfront space for onshore support. In almost every port
                  .and harbor from which a commercial fishery is based, there is an
                   unmet demand for dockage and berthing space, improved offloading
                   facilities and, in some areas, land.for processing.

                   While there has been an increase in the number of fishing vessels
                   in Massachusetts' ports, there has also been an increase in the
                   number of recreational craft, as well as increases in the conver-
                   sion of waterfront land from water-dependent to non-dependent uses.
                   All of these users, in some way, compete with one another.

                   In the past, communities with commercial fishing activity looked
                   upon the industry as largely undesirable. Recreational boating or
                   other uses were thought to be more appealing because the financial
                   benefits were easily measurable in slip fees, fuel services and
                   marina facility charges. As more information is gathered which
                   shows    the.direct and indirect benefits derived from the fishing,
                   industry, communities should be more amenable to, and better able
                   to provide space for, the industry.

                                               -70-

             The commercial fishery is based upon renewable resources and,
             providing the fisheries managers manage the stocks wisely, the
             Massachusetts fishery will continue to provide food for the nation
             and a stable economic base for coastal cities and towns.

                                              _71-

                        Community Development Finance Corporation (CDFC)

                        Note: See Community Development section for overview

                        Eligible applicant: CD Corporation may invest in private.,
                                              for profit corporations

                        This program is  able to fund, through local Community Develop-
                        ment Corporations, both commercial and industrial economic
                        development activity. It could be used to repair or replace
                        onshore infrastructure including -- through funding of fishing
                        cooperatives -- such things as fish processing and distributing
                        facilities. Cooperatives were added as eligible applicants
                        only this past year (1977).

                        Massachusetts Industrial Finance Authority (MIFA)

                        Note: See Industrial Development/Cargo.and Shipping section, fol
                        overview

                        Eligible applicant: Profit and non-profit business engaged in
                                              industrial, commercial, recreation or
                                              research and development enterprises

                        The MIFA program can  guarantee loans for vessels as well as
                        buildings, docks, wharves, etc. The project, to be eligible,
                        must meet a variety of criteria, among them that it benefits
                        the general economy in proportion to the amount loaned and
                        that it creates primary employment -- i.e., full-time permanent
                        employment, at a certain wage level. In addition, MIFA can
                        bond onshore manufacturing, R&D and pollution control facilities

                        Industrial Development Finance Authorities (IDFA) and

                        Economic Development Industrial Commissions (EDIC)

                        Note: See Industrial Development/Cargo and Shipping Section for
                        overview

                        Eligible applicant: Mun  .icipalities which form either an IDFA
                                              or an EDIC

                        Like MIFA, IDFA's and EDIC's can bond onshore manufacturing,
                        R&D and.pollution control facilities. The primary difference
                        is that MIFA is.a state entityand IDFA's and EDIC's are munir.!
                        cipal. Both programs are particularly appropriate to onshore,
                        large scale industrial (and in the case of IDFA, commercial)
                        development, such as ship building and/or repair facilities.
                        An EDIC also holds authority for land taking by eminent domain
                        and would be useful to  communities seeking to assemble a land
                        package, such as Lynn,  for possible construction of fishing-
                        related facilities.

                                                _72-

                  Massachusetts Business Development Corporation (MBDC)

                  Note: See Industrial Development/Cargo and Shipping section for
                  overview

                  Eligible applicant: Any private for profit firm based in Massa-
                                        chusetts

                  MBDC would be applicable to the fishing industry, especially
                  in the area of nontraditional species, because the Corporation
                  is expected to assume some high risk loans for corporations
                 .,to acquire or construct fixed assets such as land, plantsand
                  equipment.

                  Massachusetts Division of Land and Water Use/Harbor Improvements

                  Eligible applicant: Any city or town in the Commonwealth

                  Under the authority granted by M.G.L. Chapter-91, Section 9A,
                  the Division has authority to construct, maintain and repair
                  piers or waterfront terminals in ports throughout the Common-
                  wealth. In addition, under Section 11 of the same Chapter,
                  the Division can provide as much as 50% financing for harbor
                  improvments to the Commonwealth (75% for dredging). The funds
                  for dredging are available to a community if it can demonstrate
                  ability to provide the local match.

                  The dredging program has the potential to promote port revitali-
                  zation with particular emphsis on the needs of'the fishing
                  industry if such is identified Iby the applicant to be of the
                  community.'s greatest concerns.

                  Massachusetts Industrial Mortgage  Insurance Agency (MIMIA)

                  Note: See Industrial Development/Cargo and.Shipp   ing section for
                  overview

                  Eligible applicant: Profit and non-profit business    engaged in
                                        industrial, recreation or research and
                                        development enterprises

                  MIMIA will insure up  to the top 40% (up to  $400,000) of a loan
                  made by banks or other institutions and will charge an insurance
                  premium. To this date, MIMIA has not been utilized extensively.
                  by the fishing industry, but there is nothing that precludes
                  its application to land based support facilities.    At present,
                  a seafood processor is engaged in a MIMIA loan for   construction.
                  of a new facility in New Bedford.

                                               -73-

                     The Capital ConstructionFund (National Marine Fisheries Service)

                     Eligible applicant:    Under the Merchant Marine Act (46 U.S.C.j
                                            Section 1177) U.S.,citizens who own or lease.
                                            vessels in excess of two net tons arid earn
                                            a significant portion of their incorne from
                                            commercial.,fishing, may establish tax de-
                                            ferred capital construction accounts. The
                                            tax deferral remains in effect from;    @seven
                                            to ten years (maximum) subject to continued
                                            approval of NMFS.

                     Before a construction   account can be established, the applicant
                     must specify his objectives and receive the endorsement of the
                     NMFS.- Specifying what kind of vessel will be constructed, re-
                     constructed, or purchased is generally sufficient. Once approved
                     by NMFS, the account may be opened in any federally insured.
                     savings and loan institution. Withdrawals made.without the
                     approval of NMFS are subject to tax and penalty.

                     Any applicant may use the following sources of income for account
                     .deposits: 1) 100% of taxable earned income; 2) any capital
                     gains; 3) 100% of the vessel's depreciation; 4) 100% of the
                     earnings from investment or reinvestment of amounts deppo.ited.

                     The applicant must make annual deposits of at least 2% of the
                     original savings objective. A report must be filed each year
                     with NMFS, but a formal ssessment of progress is made only every
                     third year. Reconstruction projects will be approved only when
                                                                               0 1
                     the estimated value is greater than $100,000, or 20% f.the
                     vessel's acuqisition cost. By definition, reconstruction pt       0-
                     jects must substantially prolong the life of the vessel.'.

                     Money deposited in a Capital Construction fund is formally
                     .exempt fromfederal income tax. The state tax commission has
                     not offered an official ruling on the status of the accounts,
                     but to date has honored the exemption provided by the federal
                     government.

                     The Fishing Vessel Obligation Pro4ram (NMFS)

                     Eligible applicant: Private for-profit or non-profit corporations
                                            or individuals owning a vessel to serve
                                            as collateral for the loan

                     The Fishing Vessel Obligation Program is the major       component
                     of the federal scheme for financing the replacement and expan-
                     sion of the U.S. fishing fleet.

                     The FVOP was enacted pursuant to the Merchant     Act  (46 U.S.C.,
                     ss. 1271 - 1279) and guarantees up to 87h% of     the  cost, of con-
                     structing, reconstructing, or reconditioning a U.S. commercial
                     fishing vessel of five tons or more. Under limited conditions
                     the guarantee extends to the purchase of the ship's equipment

                                                 -74-

                and onshore support facilities. The borrower must own a vessel
                which can serve as collateral for the facility loan.

                The applicant must provide at least 25% of the required capital
                himself. If that amount is borrowed as well, the second "lender"
                must agree to recognize the priority position.of the NMFS in
                the event of default.

                The loan guarantee can run for the "useful life" of the vessel.
                This is commonly held to be 15 years for a new vessel, of 7 years
                for a reconstructed one. In no event can the guarantee run for
                longer than 25 years. An acceptable interest rate is currently
                considered 9% or less as determined by the Secretary of Commerce.
                The NMFS may take a security interest against its risk and in
                some instances will assumean interest in the vessel itself.

                The applicant must demonstrate: that the vessel is seaworthy;
                that he has the necessary integrity, experiencel financial re-
                sources, and ability to operateit; that the proposal is eco-
                nomically sound; and, that the project .is consistent with the
                intent of the program. Economic sufficiency is assumed when
              .the applicant can provide capital adequate to support operation
                and normal contingencies (at least 8% of the total capital cost
                of the vessel). The applicant must have financial resources
                equal to the difference between the actual cost of construction,
                reconstruction, or reconditioning and the amount of the obliga-
                tion proposed for guarantee. In addition, the applicant must
                have made adequate provision for payment of the first year's
                premium for vessel insurance (including hull and machinery,
                breach of warranty, protection and indemnity, if applicable,-
                and other insurance that may be required by NMFS).

               'The NMFS levies a guarantee fee of between .5% and  1% on the
                average principal outstanding. The applicant must   have at least,
                the first year's fee in hand and is advised to produce at least
                a 3-year account of the vessel's earnings and operating expenses.
                Cash flow history and projections are carefully examined.

               'Proposals for reconstructing or reconditioning a vessel must
                entail major capital improvements, the cost of which will be
                at least $40,000 or 20% of the vessel's replacement value. It
                is necessary to demonstrate thatguch reconstruction or recon-
                ditioning will substantially prolong the useful life of the
                vessel (by anwhere from 7 - 15 years), particularly if the
                vessel is over,25 years old. Evidence that these improvements
                will significantly increase vessel value or make it suitable
                for a different type of fishing is also acceptable.

                Nationally, $38 million is available for loan guarantees. This
                money is hot allocated equally among states and is on a first
                come, first served basis. At present there are several such
                guarantees held in Massachusetts, but more numerous examples
                are found throughout the southern states. Many of their vessels
                are larger and more costly (over$1 million) and therefore tend
                to utilize greater portions of the available mon Iey.

                                             -75-

                   Business Development Loan Program (13DL) (U.S. Department*of
                   Commerce, Economic Development Administration tEDA))

                   Eligible applicant: Private business andindividuals engaged in,
                                         for-profit enterprises

                   Loans are available from the EDA for up to 65% of project cost,
                   but are available only when the applicant can provide 15% of
                   the toal cost and then secure theremaining.20%. from non-federal
                   sources. The loans are to be used to acquire fixed assets and
                   are most appropriately applied to the financing of on-shore
                   facilities such as processing plants and freezers., Normally,
                   loans are made to private businesses, but the relatively cumber-
                   some application requirements make it less suitable for vessel
                   financing-and for small loans in general. Typical loan amounts
                   range from $500,000 - $1 million, and vessels are included as
                   eligible activities.

                   The Secretary of Commerce is given the discretion to waive the
                   requirement for 35% funding from other than EDA sources by
                   allowing EDA to give a block grant to a redevelopment authorities
                   and allowing the Authority to re-loan.

                   Special Economic Development and Adjustment Assistance Program
                   (Title IX)   (EDA)

                   Eligible applicant:   Grants may be distributed to either a
                                         redevelopment area or an economic development
                                         district (as define& under the Public Works
                                         and Development Act), an Indian tribe, the
                                         Governor of a state orhis designated agencyl
                                         or a consortium of political subdivisions
                                         under Titles I and II of the Act; however
                                         these recipients may- redistribute the
                                         funding to public and private (non-for-profit)
                                         entities in the form of grant loans, loan
                                         guarantees, etc.

                   Title IX grants are  intended to help revive failing industries
                   which may be facing  an actual or threatened economic loss. The
                   grants may-be used for the acquisition or development of land
                   and improvements to public works or facilities. Eligible facili-
                   ties may be constructed, rehabilitated, altered, expanded or
                   improved withithese funds.

                   A 25% matching share, cash or in-kind, is required and an eli-
                   gible recipient must have a plan or planning application approved
                   by EDA. Such plans must be comprehensive, include an environ-
                   mental impact assessment, and be submitted for the Federal-State
                   coordinating review process under OMB Circular A-95.

                   The program is funded for FY 1977 at $45 millionand    there is
                   currently a New Bedford fishing pier rehabilitation project funded
                   under a $3 million grant from EDA. An example of the program's
                   versatility can be seen in Gloucester, which is the beneficiary

                                            -76-

                   a $7.5 million Title IX grant for the revitalization of fish
                   piers and creation of a loan fund and marketing program.

                   Grants and Loans for Public Works and Development Facilities
                   (Title 1)  (FDA)

                   Eligible applicant: same as Title IX

                   This program isoperative under the same legislation as Title
                   IX, but is generally appropriate only to the financing of on-
                   shore facilities. The program's funding level is set at $245
                   million per year through 1979, an amount which could signifi-
                   cantly accelerate the construction of necessary onshore facili-
                   ties and processing plants.

                   'The program's objective is to assist in the construction of.
                   public facilities needed to initiate and encourage long-term
                   economic growth in areas where economic growth is lagging
                   behind the rest of the nation. A 50% match is required,
                   although areas which qualify as "severely depressed" may
                   receive up to an 80% federal.grant.

                   Grants to States for Supplemental and Basic Funding of Titles
                   I, II, and IV Activities ('304) (EDA)

                   .Eligible applicant: same as Tiltle IX

                   The "304" grants, in Massachusetts applied for through'the Office.
                   of State Planning, are intended to.enable Governors to select
                   projects which will assist in the construction of public facili-
                   ties and are needed to initiate or enhance long-term economic
                   growth. in areas of their states where such growth is lagging.

                   Eligible uses include construction of water and sewer systems,
                   industrial parks, access roads, port facilities and public
                   tourism facilities.

                   Projects Are funded 75% federally, 25% state. Although allocations-
                   vary year to year, Massachusetts' share is generally around
                   ,$400,000 per year.

                   U.S. Small Business Administration

                   Eligible applicant:' A small business which is independently
                                        owned and operated And is nont dominant
                                        in its field. Generally for manufacturers,
                                        average employment not in excess of 250;
                                        wholesalers, and retail service concerns

                   The Massachusetts fishing industry is eliegible for financial
                   aid from three spearate SBA programs: 1) "Section 7(a)" direct

                                            -77-

                   loans and loan guarantees (15 U.S.C., S. 636(a)); 2) "Section
                   502" local community development loans and guarantees (15 U.S.C.,
                   S. 696); and 3) Disaster and Economic Injury Loans and guaran-
                   tees (15 U.S.C., S.636(b))

                   Section 7a provides for direct loans of up to 2/3 of project
                   cost but requires that the remaining one third be supplied by
                   the applicant. The program is applicable to all phases of vessel
                   and on-shore facility construction, but by agreemetn will not
                   be extended to applicants who are otherwise eligible for NMFS
                   support (generally vessels over five tons). The program will
                   fund construction, renovation, and acquisition of vessels under
                   five tons and meet similar needs for smaller onshore facilities.

                   Maximum loan or loan guarnatees to one small business and its
                   affiliates is $500,000 (or 90% of project cost for loan
                   guarantees). The maximum loan period is six years for working
                   capital, ten years for equipment, and 20 years for new construc-
                   tioni For very large vessels and on-shore facilities, SBA's
                   502 program is more appropriate.

                   Section 502's Local Community Development programs (LDC) are
                   organized for the purpose of promoting economic development
                   projects which are initiated and then controlled at the local
                   level. Gloucester, New Bedford, Fairhaven, Hingham and Ipswich
                   presently have LDCs operating successfully in these areas
                   Under the direct loans, 60% of the funding must come from
                   local institutions, 30% from SBA and the remaining 10% from
                   LDC. The LDC progeam will aslo guarantee up to 90% of a loan
                   incurred by eligible small businesses. Eligibility is estab-
                   lished under SBA guidelines.

                   The Section 502 loan program is not appropriate for minor
                   renovation, or for the purchase of gear and equipment with
                   a useful life of less than 3 - 5 years (unless purchased along
                   with a vessel, in which case the equipment must have an esti-
                   mated life estimate in excess of one year). The program
                   is well suited to financing many types of privately owned
                   (or LDC owned) onshore facilities, and is potentially appro-
                   priate for purchasing new vessel financing. SBA financing ,
                   cannot be applied to vessels overfive tons, ostensibly because
                   the vessels are eligible for NMFS financing; and the SBA's limit
                   of $500,000 may be insufficient to-finance some larger steel
                   hulled construction.

                   The Farmers Home Administration (FmHA)

                   Eligible applicant: Provision of guarantees for loans (up to
                                        90% of principal and interest) to all
                                        types of business and industries in rural
                                        areas, and direct loans to public bodies

                   The FmHA will guarantee loans under its Guaranteed Business and
                   industrial Loans program P U.S.C., S. 1989) by private lenders
                   to qualifying applicants and will indemnify up to 90% of the
                   lendor's loss. FmHA advises potential borrowers who want loans

                                               -78-

                of $350,000 or less to apply to SBA.

                Maximum maturity for business and industrial loans is up to
                30 years on land, building and permanent fixtures; up to 15,
                years on machinery and equipment and up to 7 years on working
                capital. The interest levels are determined by the market
                rate except in instances where public entities borrow for
                the purpose of providing community facilities, in which case
                the interest rate is set at 5%. Normally, FmHA requires at-
                least 10% equity, but this is somewhat dependent on the cir-
                cumstances of'the loan.

                The Farm Credit System - Production Credit Association Loans
                (Farm Credit Act of 1971 L.P. 92 - 81) is a federally chartered
                cooperatiVe banking system owned and controlled by its borrowers.
                The Farm Credit Administration, an independent federal,agency,
                supervises the system. Fishermen who borrow are required to
                purchase some stock in the system to assistin capitalization.
                In order to obtain funds for loans, the system sells notes,
                bonds, debentures on money markets, lends money from its own
                stock, and borrows funds for relending. Short term.and inter-
                mediate loans are made regionally .through local production
                credit associations.(PCA).

                Maximum loan coverage of up to 75% of value is allowed overa
                maximum period of 7 years with interest rates commensurate
                with the cost of the underlying bond issue.

                This program is most appropriate for smaller loans because the
                repayment period is extremely short (7 years). The program
                can also be utilized to obtain short-term working capital (again
                repayment with 7 years). This is particularly helpful to
                fishermen, as many of the other programs already identified do
                not allow for the financing of working capital.

                                             -79-

                                                              -80-

              Energy

              The Massachusetts coastlineplays a major role in fulfilling the
              energy requirements of the state -- 80% of the Commonwealth's
              energy facilities are currently located here. Coastal areas accomo-
              date sites for electric generating plants, gas facilities, marine
              terminals and tank farms and could, in the future, be called upon'
              to host a refinery, deepwater ports or offshore oil and gas related
              facilities and services.

              Energy facilities are located along the  coast for basically three
              reasons: utilization of abundant water   for cooling purposes;
              proximity to fuel supply; and accessibility to market areas. Many
              of these facilities are by their nature coastally dependent. For
              Some, however, inland locations may be possible, but may entail
              increased costs to the industry and consurmers and could potentially
              create adverse environmental and social impacts.

              Massachusetts is, and will most likely remain, reliant upon product
              oil brougn,in from outside the state. Roughly half of this-oil
              comes from foreign nations, most of which, as with the majority of
              domestic oil, is brought into the state through marine terminals.
              For the forseeable future, petroleum products will continue to
              arrive in conventional coastal tankers and barges to be stored in
              tank farms. While Massachusetts most likely has sufficient marine
              terminal capacity to handle any projected increases in tanker traf-
              fic, additional oil storage facilities will in all likielihodd be
              needed. In many instances, ports which now host tank farms will
              be hard pressed to'accomodate additional storage. Tank farms.
              might, in certain cases, be economically sited in areas outside
              of the coastal zone.

              Natural gas, too, has come into wider use. Because of a lack of
              domestic pipeline gas, the importation of liquefied natural gas
              (LNG) and feedstock for synthetic,nat:ural gas (SNG) through marine
              terminals has become important in supplying the energy needs of
              the state. Because of the economics and risks of transporting
              cryogenic gas, many gas storage and processing facilities must be
              located close to terminals and within the coastal zone. The envi-
              ronmental and social concerns associated with LNG and SNG storage,
              coupled with a growing need for expansion of such facilities, could
              present some very difficult locational choices for coastal communi'r
              ties@and the state..

              In addition to oil and natural gas, the coast provides sites for
              21 electric generating gacilities and two coastal power plants
              having the capacity to generate coal-fired electricity. Currently,
              beyond the construction of an additional nuclear power plant in
              Plymouth, no new major facilities are being proposed for construc-
              tion in coastal areas for the.forseeable future, This situation
              may change, however, due to a variety of factors including primarily

               increased energy demands and slippage in construction of plants
               planned for other New England areas.

               The siting of energy and energy-related facilities in coastal areas
               may'be affected by oil and gas exploration and production on roughly
               one million acres,of land in the North Atlantic Outer Continental
               Shelf (OCS) now being considered for leasing. A large find of oil
               or gas  could produce serious development pressures within our
               coastal communities.and potentially create some very severe environ-
               mental problems. Certainly, the potential for conflict with the
               fishing industry exists, although certain steps to ensure that such
               conflict is minimized are now being sought by the Commonwealth.
               OCS exploitation may result in development of pipeline landfalls,
               gas processing facilities, tank farms and distribution facilities.
               Development may also bring pressure to bear on coastal communities
               through new.@.,housing and service demands, and the location of OCS
               related growth will have to be seriously weighed for its environ-
               mental as well as economic impact.

               The construction and operation of the above facilities must be
               undertaken within the context of the state Is energy policy. This
               policy, established in the law creating the Energy Facilities
               Siting Council, calls for the provision of an adequate energy
               supply with a minimum impact on the environment at the lowest
               possible cost. Thesethree concerns must be weighed for the
               siting of all energy facilities, coastal or inland. There are
               clearly tensions in meeting all three criteria. Evety facility
               has associated with it certain positive impacts: meeting energy
               needs, increased employment and a secure source of energy as a
               base for economic development. On the other hand, primary envi-
               roInmental impacts on air and water quality, coastal ecosystems
               and land use conflicts must factor heavily in siting decisions.

               In conjunction with energy conservation andefficiency, the pro-
               motion of environmentally sound alternative energy sources is
               needed. The development of alternatives such as solar, wind and
               solid waste energy recovery systems would reduce bur dependence
               on more traditional fossil fuel and nuclear energy sources.

               The present administration, under guidance by the EPSC and national
               policy, is now deeply involved in helping to resolve the conflicts
               inherent in energy development while inoving ahead on the establish
               ment of new facilities which can provide the Commonwealth with all
               its necessary energy requirements while preserving the state's
               environmental integrity.

                                                 -8

                    Coastal Energy Impact Program (CEIP) (Coastal Zone Management
                    Act Amendm nts, 1976)

                    Eligible applicant:    All applications must be   made through the
                                           state agent for the program -- in Massachu-
                                           setts, the Coastal Zone    Management Program..
                                           Local public bodies are    eligible to apply.

                    Coastal energy activity under the.Act is defined to      include three
                    types of energy development:     Outer*Continental Shelf energy
                                                               i    f liquified natural
                    activity, any transportation    or processing o
                    gas, and any transportation,    transfer, or storage of   coal, oil
                    or natural gas.

                    Assistance under the program    is available in four forms: 1) it
                    can provide planning grants to prepare for upcoming ener       gIy
                    activity.and for its socio-economic and environmental consequences;
                    2) it can help finance the new-or improved public faciliti6s
                    and service           d because of.population increases result'
                                s require                                             ing
                    from new coastal energydevelopment. This@assistance is designed
                    to be available ahead of the impacts, when it is.needed,.but
                    for no longer than is acturally required. 3) The program can
                    provide repayment assistance       refinancing, modification of
                    terms, supplemental loans, or repayment grants -- to the bor-
                    rowing community when it cannot meet its credit obligations
                    because of revenues from energy activity failed to materialize
                    as expected. 4) The program can provide assistance to help
                    prevent, reduce, or repair unavoidable damage or degredation
                    of valuable environmental or recreational resources resulting
                    from past or  future coastal energy activity..

                    Fiscal Years  77 and.78 combined allocated some $130,000 to the
                    Commonwealth  for OCS related administrative work and some ad-,
                    vance development related planning.. An FY 79 allocation has not
                    been announced. Future years should show increased amounts of
                    funding based  upon what thepace    may be for leasing and develop-
                    ment on the OCS.

                    Coastal Zone Management   Program/Community Grants Program

                    Eligible applicant:    All applications are made to the federal
                                           Off ice of Coastal Zone Management through
                                           the state.Coastal Zone Management Program.
                                           Any local  public body may apply, providing
                                           they have  the endorsement of the local chief
                                           elected official.

                    Under Massachusetts'   Coast  al Zone Management  Program, 80% grants
                    of,up to $20,000 will be approved for coastal communities to
                    deal with what may be   energy related   . matters in the following
                    areas: port.and harbor development planning, dredge and dredge
                    spoil disposal demonstration pro.jects, coastal hazards studies,
                    recreational planning, and applied science studies. All projects
                    must be consistent with   CZM goals and policies and. should be

                                               -83-

                     for specific projects, often constituting the first step in
                     a larger project.

                     FY 77 funds, under a CZM planning grant, of $14,000 have been
                     awarded. Fiscal year 78 funds total some $247,000. Future years
                     allocations will vary dependent upon the overall amount of CZm
                     program funding for Massachulsetts.

                                               -84-

             Policy Frameworks

                                           -85-

                                                                    -86-

            Coastal Zone Management

           SOME BACKGROUND

           Under the Coastal Zone Management Act of 1972', the National
           Oceanic and Atmospheric Administration's office of Coastal Zone
           Management (OCZM) was authorized to provide financial support for
           state initiated coastal planning efforts. OCZM was further
           instructed to critically review all completed plans before
           offering additional funding under the actual management phase of
           CZM program development. In April of last year, following a three
           year planning process, Massachusetts' Office of Coastal Zone
           Management received $ 1.3 million in federal funds for the first
           year of implementation of the Commonwealth's Plan..
           The program's two years of management grants have gone to support of
           CZM staff, provide additional technical personnel for the state's
           coastally-related environmental regulatory agencies, and
           provide for a number of direct planning grants to coastal cities
           and towns. The management_program, based upon a set of 27 policies
           intended to help guide environ'mentally sound and economically
           productive decisions within the coastal zone, has not required-
           any new legislation. It has relied instead upon existing laws
           for which new regulations, supporting the objectives of the Plan,
           have been established. These regulations, together with the CZM
           policies should work to reduce tensions between a number of
           competing interests by clearly indicating where certain activities
           and uses are restricted, conditioned, permitted or encouraged, in
           the context of an overall state policy.

           CZM is an arm of the Executive Office of Environmental Affairs
           and reports directly to Secretary John Bewick.     Under the
           Secretary's authority to set policy for EOEA agencies, he has
           adopted the policies of the CZM plan'as working elements in
           EOEA line agency permit and funding decisions.

           THE PROGRAM'S ROLE IN PORT DEVELOPMENT

           When the CZM Plan gained federal approval in April of last year,
           it did so after three years of citizen guidance and a wide range
           of planning participation. The Program's shift from planning to
           management carries with it some very real opportunities to
           aggressively address coastal issues - among them the affirmative
           role which the CZM Office can play in-port development.

                                         -87-

                 Both the marine environment and our coastal lands are among the
                 most valuable natural and  economic resources.found in the Common-
                .wealth. As of today, 40% of Massachusetts' residents live along
                 the coast, more than 50% of the state's new development occurs
                 here, and our-fishing and tourist industries together contribute
                 $1 billion annually to the state's economy. With its responsibi-
                 lity for.Plan implementation, CZM will become an increasingly
                 important presence in the development of Massachusetts' ports.

                 The dramatic contribution of ports to the Massachusetts economy
                 is not merely a phenomenon of the past.. A variety of maritime
                 related industries now operating in the.major ports directly
                 employ approximately 50,000 persons. Some of these current
                 waterfront activities are expected to experience only limited
                 growth; most notable among these are shipping operations handling
                 non-containerized general cargo and dry bulk cargo. Others,
                 including container shipping ' ferry services, marine industry and
                 recreational boating, exhibit a potential for substantial
                 development and a concomitant need for additional harborfront
                 space.

                 For'a number of reasons our urban waterfront land has suffered    from
                 inappropriate use. This becomes painfully clear as the fishing,
                 boating and water-related industrial and shipping sectors compete
                 for space.and dollars as they enter a new era of growth and change.

                 .Because our cities host only a finite amount of.waterfront.space
                 suitable for marine-dependent use, the CZM plan has taken a firm
                 position.on the use of the state's existing port areas. With
                 assistance from local officials, CZM has identified prime port
                 development areas within 14 cities to receive designated port
                 status. These are:.Gloucester, Beverly, Salem,Lynn, Chelsea/
                 Everett, Boston, Quincy/Weymouth, Plymouth, New Bedford/Fairhaven
                 and Fall River/Somerset. The most severe development competition
                 occurs within these designated.ports - each of which possesses a.
                 navigable channel of a.20 foot depthor more and a developed
                 transportation system. To create new port infrastructure
                 sewer, water, deep draft access, rail spurs and highway connections
                 would be difficult,if hot impossible. The public and private
                 costs of establishing new deepwater channels, with adequate
                 support facilities, is prohibitively high.

                 For this reason, the CZM Plan's central policy on port development
                 encourages the location of maritime,commerce and development in
                 those urban waterfront areas which have received designated port
                 status. The intent is to ensure that.the special physical and,
                 operational requirements of maritime dependent activities are
                 recognized and not.impaired.by other. development. The policy's
                 enforcement will.rely-, in part, on,the denial of a tidelands
                 license for any non-maritime dependent waterfront pro  Iposal which
                 demands an irretrievable.com-mitment.of port space, or which is
                 in direct competition with a marine depen  dent development which
                 has beenproposed for that space.,

                                              -88-

            .over half of the state's environmental permits are issued bv the
            Department of Environmental Quality Engineering. Within EOEA, the
            Department has recently revised its regulations dealing with
            wetlands, dredging, filling and tidelands.structures to reflect
            CZM's policies relating to development and the marine environment.
             (Refer to section on Environmental Regulations.) For designated
            p
             ort areas, as well as developed harbors     designated areas,of
            concentrated waterfront development - these new regulations
            effectively encourage water-related development. The Plan is
            .emphatic in its support of the Massachusetts growth policies as
            well. In keeping with the state.'s objectives for centralized
            growth,the Plan offers priority allocation of future dredging     and
            related facilities construction funds to these same designated
            ports and developed harbors.

            CZM's interest in promoting  marine-dependent growth is well served
            by its role as EOEA's coordinator for local, state and federal
            efforts in undertaking coastal projects. As projects grow in
            complexity - through the range of funding alternatives, the volume
            of regulatory and permit requirements, and the need for development
            infrastructure - CZM will be in a position to provide local technical
            assistance and help to successfully guide projects through the
            administrative and environmental regulatory systems. CZM's ability
            to assist projects in this way stems from a policy consensus
            between CZM and other state development agencies and from the
            federal consistency element of the CZM Plan. The latter is a
            unique tenet of the CZM Act, which allows federal agencies to
            issue permits and allocate funds only for those coastal projects
            which are in keeping with the state's approved CZM Plan.

            over the  coming year, CZM will face the real challenge of its
            effectiveness. Its success will, in many respects, be contingent
            upon the  continued support of coastal communities and will rely
            on their  efforts to conform with the program's development and
            conservation policies alike..

            In an effort to help achieve  this consensus, the  CZM Office will
            offer a wide range of local assistance - legal,   scientific and
            economic. A grants program has been initiated offering up to
            $ 20,000 per project for port and harbor development planning,
            dredge or dredge disposal demonstration projects, coastal hazards
            studies, preliminary engineering studies, recreational planning
            and applied science studies.

            It is possible to accommodate virtually all   of the state's
            coastally-dependent users. With clear policy guidelines, with
            strong coordination among all participants in the public and
            private sectors, and with genuine efforts towards cooperation,
            the development of coastal industries can and will produce the
            basis of a strong port economy for the Commonwealth.

                                            -89-

                                                                     -90-

           New Environmental Regulations

          The  newly approved Coastal Zone Management Plan  has set forth 27
          policies designed  to foster port, harbor and fishing   development
          while-protecting valuable natural resource areas through a variety
          of management tools. These include public investment strategies,
          direct community grants, technical assistance, direct    acquisition
          of unique natural areas, and existing regulatory programs. The
          last of these, our environmental regulations, have recently under-
          gone substantial change to reflect the state's new coastal policies.

          Within the Executive Office of Environmental Affairs there are
          five major agencies. Two of these -- the Department of Environmen-
          tal Quality Engineering (DEQE). and the Department of Environmental
          Management (DEM) -- have recently promulgated new or revised regu-
          lations for programs under their aegis. Regulations for wetlands
          protection, Waterways licensing, and Water Quality Certification
          for dredging have been adopted by DEQE; regulations for Ocean Sanc-
          tuaries have been adopted by DEM. Where the implementation of CZM
          policies fall within the agencies' mandate of existing legislation,
          the new regulations have been designed to incorporate these con-
          cerns and, in some instances the regulations help clarify or iTple-
               the enabling statute where it may not be related to CZM.

          WATERWAYS REGULATIONS (Chapter 91 of the Massachusetts General    Laws)

          These regulations directly incorporate the CZM policies favoring
          marine dependent industrial uses in designated port areas. The
          jurisdiction of these regulations extends landward to the mean high
          water mark, which means that piers, bulkheads or dredging activities
          require a Waterways license. Activities on*existing land behind
          bulkheads, however, are not. subject to the regulations.

          One of the basic purposes of the prog@ram is to.evaluate proposed
         .projects for their impact on navigation And for their structural
          soundness. (Refer to Sections 20 and 21 of the regulations for
          design criteria standards, blocking of channels, etc.)

          The land below low water belongs to the Commonwealth. Well-estab-
          lished case law holds that this public property is to be held in
          trust and that it is to be used for projects which have a derLionstra-
          ted public benefit. There are also reserved public rights for
          fishing, fowling and navigation.on all land below mean high water.

          These legal principals have been meshed with the CZM policies insofar as
          those policies refer to port areas. In heavily developed portions of our
          major ports, where significant public investments in infrastructure
          have been made and where major alterations of the natural-environ-
          ment have already occured, policy encouraging water-related indus-

                                           _91-

                      trial development has been translated into positive encouragement
                      through regulatory requirements. When a project subject to a
                      chapter 91 license is proposed for a designated port area, DEQE --
                      with assistance from the CZM Office -- will evaluate whether or not
                      a concrete development proposal exists for the site and whether
                      there would be a clear conflict with documented fishing, maritime,
                      shipping or other marine industrial plans on or near the parcel.
                      if no conflict is evident, the site can be used for any use which.
                      meets the other standards of the regulations.

                      While environmental concerns are dealt with in detail in the Wet-
                      lands Protection regulations (discussed below), DEQE has attempted
                      to coordinate permitting procedures for Waterways projects with
                      the Wetlands requirements by makin@ the environmental standards
                      the same in both sets of regulations. This means that while the.
                      two statutes overlap in terms of environmental protection concerns,
                      as an administrative matter these issues willgenerally be evaluat(
                      only once.

                      In the specific case of designated port areas, unlike less devel-
                      oped areas, there are strong and important development pressures
                      as well as the need to protect natural resourcesi Therefore specie
                      environmental standards have been developed to balance the competir
                      interests in those areas. These standards        which are discussed
                      in the Wetlands regulations section below       recognize that port
                      areas, already altered from their natural state, require special
                      consideratioft for their contribution to a growing economy. At the    sa
                      time, these stah-da-rds also recognize that these areasm  -ay still cont
                      shellfish beds, fish spawning grounds or fish runs'----
                      that need protection in order to maintain the viability of our
                      food and water supplies.

                      WETLANDS PROTECTION REGULATIONS (M.G.L. Chapter 131, Section 40).

                      The Wetlands Protection Act protects any beach, dune, tidal flat,
                      bank, salt pond, river, creek, stream, etc. from dredging, filling
                      or alteration which would impair the ability of such features to
                      prevent flooding, storm damage or pollution; to maintain public,
                      private, or groundwater supplies; and to support fisheries and
                      shellfisheries. The Act is administered by local Conservation
                      Commissions which issue an "Order of Conditions" for any work
                      within a wetland or within 100 feet of it. Such Orders may-be
                      appealed by the applicant, an abuttor, or any ten citizens to the.
                      regional DEQE Office.

                      The new regulations create the first substantive standards for
                      activities in coastal wetlands. They describe the function of
                      each area and explain when that area may be significant to inter-
                      ests protected by the Act. The regulations also set standards
                      specific to each area. For instance, the standards would allow
                      dredging in land under the ocean,, whereas they do not allow
                      dredging in salt marshes. The iDerformance standard for activities
                      in salt marshes, shellfish beds, or salt ponds - all important to
                      marine productivity - do not permit adverse e   'ffects to the area.
                      On the other hand, projects in some other resource areas must be
                      designed to minimize adverse impacts using the best available

                                                   -92-

             measures. This means the most up-to-date technology or the best
             designs, measures or engineering practices available or that are
             commercially availabie.
             In designated port areas, different standards apply. The regula-
             tions recognize that the natural configurations of land     and water
             as well as the natural environment have been greatly altered by
             human activity. The main concerns in these areas are water
             quality and the structural integrity of bulkheads or piers
             adjacent to the project. only land under theocean is presumed
             to be significant to the Act; land above such bulkheads may not
             be significant. In practice, this means that the Conservation
             commission may not need to issue an Order of Conditions,.since
             the first step required under theAct is a finding on the invol     'ved
             areals significance to the Act. If a finding is made that an area
             within a designated port is significant, then the project must
             meet the standard of mininizing adverse effects using "the best
             practical measures." This differs from "best available measures,".
             calling   r technologies, designs, measures or engineering
            .practices that are in general use to protect similar interests.

            In sun, these new regulations are designed to focus close and
            careful attention by local Conservation Commissions and the state
            on those resources which contribute to marine productivity or
            protect property from storm damage.and flooding. The regulations
            contain less stringent standards forthe less sensitive portions
            of our marine environment and contain performance standards for
            designated port areas which incorporate generallcommercial     and
            engineering practices.

            DIVISION OF WATER POLLUTION   CONTROL DREDGING   REGULATIO14S""(M.G.L.
            Chapter 91, Section 43)

            The Division issues a Water   Quality Certification to either the
            Waterways or Wetlands programs for activities licensed by them
          .which may affect water quality. A similar certification (called
            a Section 401 certification under federal law) is issued if a
            project requires a federal.permit.

            The Division has now adopted regulations for such certifications
            if the project involves dredging or the disposal of dredged mater-
            ials in   the waters of the Commonwedlth. The new regulations
            provide a qreat deal more specificity and predictability to the
            licensing process than existed in the past.

            The applicant must first submit an application with the results
            of certain preliminary tests made upon the dredge spoil material.
            The material is classified by chemical constituents into one of
            three types, ranging from non-degrading to potentiallydegrading.
            Classification is also made according to physical characteristics,
            such as oil, grease, silt or sand. The D@eferable means of dredging
            and disposal are identified for each typ-e of material.

            The process in these regulations is intended to be consistent with
            the other environmental review procedures. In the case ofa pro-
            ject subject to the Massaci-lusetts Environmental Policy  Act (11EPA),

                                            -93-

            the MEPA process will determine whether future tests or research
            are required for classification or disposal site@evaluat.ion at the
            same time that a decision on an Environmental Impact Report is made.
            This effectively allows the applicant to gather all additional
            information simultaneously. In similar fashion, because the WQC
            is incorporated into the Waterways license, hearing and appeal
            procedures of the two.agencies are combined so that two hearings onthe
            same project are avoided.

            THE OCEAN SANCTUARIES REGULATIONS (M.G.L. Chapter 132A, Sections
            13   16 and 18)

            This statute creates five ocean sanctuaries, covering all of our
            coastal waters except those from Lynn to Marshfield and Mount Hope
            Bay. The sanctuaries extend seaward from the mean low water line
            and do not incorporate certain developed areas or inland waters if
            the bay or river-mouth is less than 200 yards wide. In general,
            the statute prevents such activii.tes as the removal of sand, gravel,
            or minerals, the dumping of any wastes or new discharg es. Each
            sanct uary is subject to slightly different rules, but generally
            navigation improvements and other projects authorized under the
            Waterways program found to be in the public necessity and conven-
            ience are permitted. There is.no special permit process estab-
            lished under the Act. Therefore., the Act will be administered in
            large measure through the Waterways program, although the Depart-
          .ment of Environmental Management retains general over-sight respon-
            sibilities.

                                          -94-

         Outer Continental Shelf

        Oil and gas are thought to exist some 50    200 miles off   the
        Massachusetts coast on part of the Outer Continental.Shelf which
        coincides, more or less, with Georges Bank.

        Whether the hydrocarbon reserves exist, and whether  they are
        large enough to war'rant the investment to produce them, will  not
        be confirmed until oil companies drill wells and conduct explora-
        tory testing. The U.S. Department of the Interior,is planning to
        lease rights for exploration and development for 155 tracts of. .
        submerged lands covering 1379 square miles. The Interior Department.
        estimates the reserves in'that area contain, at the most,,3.5
        trillion cubic feet of gas and 0.53 billion barrels-of,oil. Those
        qIuantities represent 27 days of the nation's consumption of oil
        and 64 days of the nation's consumption of natural gas.. The
        Dukakis Administration supports offshore oil and gas  Iactivities...
        as long as safeguards adequate to protect the Commonwealth's
        tourist and commercialfishing industries are in place.

        Massachusetts ports.could be used to serve offshore oil and gas
        activities. Storage space and wharfage are needed for vessels
        transporting drilling and crew supplies from.shore to offshore rigs
        and platforms for both exploration and development. Port space is,
        required to stage the installation of platforms and pipelines.
        Helicopter ports must be developed to transport workers from home
       .base to a seven day work week offshore. Natural gas will be
        transported by pipeline to New England, possibly Massachusetts,
        and an offshore facility must be developed to process the gas
        prior to distribution via an interstate network. (oil will
        probably be tankered directly to more southern refineries with
        little or no economic impact on Massachusetts.) Of course, the
        decision to develop any of these facilities depends on a commercial
        find of oil, gas, or both.

        Massachusetts ports stand about as good a chance as any others in
        New England to provide the locus for those facilities, in terms of
        distance between shore and the area proposed for leasing. However,
        there Are other factors influencing siting decisions, including
        the amount of available spac&, suitable harbor depths, and access
        to highway, rail and air transportation. Competition from adjacent
        coastal states will also affect the industry's perception of
        Massachusetts' shores.

        For the past three years, state and local officials have been
        meeting with companies serving offshore oil activities. Governor
        Dukakis, Lt. Governor O'Neill, and officials from a number of port
        cities, including Gloucester, Lynn,.Boston, Plymouth, New Bedford
        and Fall River, have journeyed to Texas on a nearly annual basis
        to inform companies abbut the ability of Massachusetts' ports to

                                        -95-

                 serve their needs. Partly with assistance from the Coastal Zone
                 Management office, some'local officials have been'preparing plans
                 for.port improvements in order to accommodate the offshore oil
                 industry. Yet another source of funding - the Coastal Energy
                 Impact Program, administered by the Coastal Zone Management Office
                 is.available, to communities experiencing impacts resulting from
                 the siting of OCS-related facilities.

                 While the prospect of oil and gas development is exciting,    a
                 practical assessment of the associated economic impacts is   in order..
                 First, it would not mean that New England will become energy
                 independent. The oil will most likely be transported to mid-
                 Atlantic refineri es, and while offshore gas may largely be  used
                 in New England, additional natural gas supplies will continue to
                 be imported from other parts of the nation., Second, it would mean
                 that the employment benefits will be primarily local, rather than
                 statewide. At the most, the number of new jobs will total 2,000
             J:  (about one-third the Quincy shipyard payroll) and just one-third
                 of those will be open to the local labor pool. Third, it would
                 mean potential harm tonative commercial fishing and tourist
                 industries. Without certain environmental safeguards in place
                 losses amounting to as much as $ 50 million in one year could
                 accrue to the Massachusetts fishing industry as the result of. oil
                 spill damagesto fish spawning. Massachusetts officials are
                 making every effort to ensure that oil and gas activities go
                 forward with minimal environmental damages, so that industries
                 with us for generations past will continue to make their important
                 contributions to our state's economy for years to come.

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