Building Boston's Economic Future: An Agenda for Economic Development. (Draft)
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Innovative bond financing for private non-tax-exempt economic devel- opment projects has been and can be arranged through the Boston Industrial Financing Authority (BIDFA) and the Massachusetts Indus- trial Finance Agency (MIFA). Good examples of what can be done are: 28 • Patriot Paper. A BIDFA issuance of $37 million in tax-free bonds helped transform a dormant Hyde Park paper mill into a recycling plant making new paper products from office waste paper. • Charlestown Navy Yard Research Cente...r. The $258 million Massachu- setts General Hospital Research Facility was financed with the help of MIFA bonds. • Olmsted Plaza. The development of medical research space in the existing Sears Building in the Fenway will be made possible by financing in the amount of $119 million from BIDFA and MTFA through the sale of taxable revenue bonds. State and federal tax policies should be tested against the combined standards of fairness and economic rationality. Tax codes should not prevent the investment the country needs, but should instead aid capital formation that is put to the service of the core economy.
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