2017 Economic Development Report

Why was the EDC established? On October 1, 2007, the Town Council adopted Ordinance #2007-10 …adding the provisions for an Economic Development Committee…The EDC will make recommendations to the Town Council to foster the stabilization of the residential tax burden through economic development that encourages diverse business, commercial office and research activities, maintain and create jobs, create a good mix of uses, and maintain the rural character of Durham.

Durham Projected Expenditures Through 2022 50% Increase in Debt Service Data Source – Durham Fiscal Forecast, 2017 Approved Budget

How Much Does the Tax Base Need to Grow Valuation Gap $300M Data Source – Durham Fiscal Forecast, 2017 Approved Budget

Requirement for Increasing Property Tax Revenue 29% Increase in Property Tax Revenue Data Source – Durham Fiscal Forecast, 2017 Approved Budget

Requirement for Increasing Property Tax Rate 23% Increase in Property Tax Rate At today’s rate, that would mean $34.10 Data Source – Durham Fiscal Forecast, 2017 Approved Budget

New Middle School Tax Impact High School bond is retired before Middle School bond is issued Reduces overall tax impact Increases Durham school tax rate $.74 based on the Fiscal Forecast’s valuation Economic development will reduce tax impact of the critical project

Property Tax Factors Tax Rate Budget Assessment

Options? Do Nothing - Let taxes increase at an unsustainable rate (23% or more in the next 5 years!) Live within our current revenues – Cut services and defer capital improvements (a kick the can down the road approach) Grow the tax base – Thoughtfully plan how to increase the commercial assessment to minimize impact on residential taxpayers while maintaining the quality of life Durham desires.

How can we add $300 million to the tax base in the next 5 years How can we add $300 million to the tax base in the next 5 years? * Appreciation * New Construction * Redevelopment

Property Transfers - Appreciation

Newly Finished Construction Harmony Homes by the Bay

RiverWoods Continuing Care Facility Coming Projects RiverWoods Continuing Care Facility

Missed Opportunities Young Drive – estimated value completed $60 million for the 4-story Senior Community Durham Business Park – previously 7 individual commercial lots, now one business with an estimated value of $10 million. Stone Quarry – While RiverWoods is a desirable entity to add to Durham, it uses one of the few remaining business sites for a nonprofit organization perhaps reducing future potential property tax income.

Potential Redevelopment The Mill Plaza 66 Main Street Hetzel & Alexander (UNH Hotel) Downtown Property Owners Young Drive

**UNH Research Park** UNH eyes research park as an ‘economic development engine’  The University of New Hampshire is pursuing construction of a Research Park on its Durham campus to enable closer university-industry partnerships and provide an incubator for startups. October 2017 - NH BUSINESS REVIEW

Goss International

UNH Opens New Advanced Manufacturing Center The center, located at the former Goss International building on the west edge of campus, introduces students to innovative manufacturing technologies and allows visualization of manufacturing concepts to complement the skills learned in traditional classroom settings. It serves as a pipeline for trained, skilled workers who will be able to successfully step into the state's manufacturing sector with practical knowledge and experience. NH Business Review

Final Thoughts Land use decisions should consider these economic factors as we decide where and how much commercial growth can occur in Durham Projects need to be tempered with regards to neighborhood opposition, so as to also consider the financial impact on the whole town Durham has virtually 100% downtown retail space occupancy – If we build it, they WILL come! Start with Yes. Encourage investors to come to Durham, and work out the details of their proposals in the Planning Board Process

Where I plan to focus my efforts Sometime within the next two years I plan to retire. The highest and best use of my remaining time is to work with those prospective projects that have the best chance to succeed. The UNH Research Park, in my opinion, holds the most hope for providing the largest incremental increase in your commercial tax base over the next 5 to 10 years. We should encourage and support their efforts to establish the park.