2-22-10. The Boston Business Journal reported that "The Attleboro(Massachusetts) Redevelopment Authority knew, or should have known it was heading into deep debt at least two years before its 'house of cards,' came coming crashing down in 2008."
The ARA is insolvent and is in debt to the tune of $4.2 million.
According to the article the special committee investing the financial debacle revealed," That the ABA Executive Director knew in 2006 that the industrial business park project could not proceed without a big infusion of cash over and above the $16million that already had been raised."
The committee also reported that," The ARA board did not get regular written financial reports, that it did not have a marketing plan and that board members believed that the project was so important to the city that it should proceed no matter what the cost." The ARA board has since been replaced.
That the BBJ article didn't cover is that the city will probably have to incur the debt of $4.2 million. Not good news for any community in these dire economic times.
What is more shocking is that the local redevelopment authority didn't have a "marketing plan!!"
The bigger question is one of municipal oversight and just who was suppose to be reviewing the actions of the local Redevelopment Authority. Looks like "buck-passing-time" from my perspective. Who was in the chain of command?
Now that municipal Authority has the task of raising funds for it's debt issue and finding adequate and sufficient capital for the research and preparation of a comprehensive and in depth marketing plan plus now the highly expensive implementation of diverse marketing activities. No easy task!
On top of the aadded expenses the community now has to deal with the negative publicty with which may make the attraction of firms to the "industril park" just that much more difficult.
I suspect that we'll hear much more of this sad story in the months to come.
Bill McInerney
Economic Development Consultant
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