Local Businesses And Selectmen Rally For Hanover Mall Redevelopment


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Numerous local businesses and two chambers of commerce have gone on record in favor of a June 19 Hanover Special Town Meeting article that, if approved by voters, would grant the Hanover Mall a tax increment financing (TIF), allowing the new owners of the mall to redevelop and revitalize the 46-year-old shopping center.

Generally, a TIF allows municipalities to divert future property tax revenue increases from a defined district – or in this case, a property – toward an economic development project.
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Since PECO Real Estate Partners (PREP), the new owners of the Hanover Mall, and its Hanover-based management team began meeting with local officials and community members to discuss the TIF proposal, several businesses and organizations have gone public in their endorsement. The Hanover selectmen voted unanimously in support of the TIF on May 24, as has the planning board, at a meeting on June 6. PREP contends the TIF is necessary to complete the redevelopment plan for the mall to become “Hanover Crossing,” the proposed name for the redeveloped property.

Both the Hanover and South Shore chambers of commerce have endorsed the proposal and encouraged voters to support it. Hanover Chamber President Patrick Kelleher said in a statement that he is excited “about the economic boost the new mall will give to our community.”

Under the terms of the proposed TIF, PREP will commit to investing a minimum of $40 million in redeveloping the mall – which is the town’s single largest taxpayer – while maintaining the level of property tax payments annually based on its purchase price.

PREP has agreed to pay real estate taxes based on its purchase price of nearly $40 million, prior to and during the construction period. In recent years, its assessed valuation has declined. The TIF agreement would stop that slide while allowing the owners the time to invest in improvements and attract new tenants.

The redevelopment will provide an estimated 700 full-time, part-time and construction jobs; under the agreement, PREP is required to use best efforts to hire Hanover residents.

“We look at this article as a ‘win-win,’ since it will move the Hanover Mall revitalization forward, as well as provide the community a stable tax payment over the next 15 years,” Hanover Mall General Manager Ed Callahan said in a statement.

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