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This report is the first in a series from the Research Bureau's Center for Community Performance Measurement. It presents indicators that highlight the trends in Worcester's economic development efforts. The indicators directly relate to the City's recently released strategic plan; therefore, the facts contained in this report can be used as one information source for budget deliberations, program improvements, and employee motivation. When this report is re-released next year with updated data, the Worcester community will be able to determine if the City is making progress toward accomplishing the goals set forth in its strategic plan.
Key Findings:
Worcester's tax base has been steadily increasing since FY96 - from $5.0 billion to $6.6 billion in FY02. Many indicators, however, demonstrate that this increase is largely in the residential market rather than in the commercial and industrial market. For example, the residential proportion of the tax base has increased from 70.9% in FY99 to 75% in FY02. The total value of new growth is also shifting towards the residential market; in FY96 80% of the total value of new growth was commercial, whereas in FY01 just 67.9% of the total value was commercial. Is Worcester becoming a bedroom community of Metro-Boston commuters? While residential growth and increasing home values are a good sign for economic stability, will Worcester continue to serve as a commercial and industrial center for the region?
Worcester's commercial and residential tax rate is marginally lower than the tax rates in the comparably-sized cities of Providence, Hartford and Springfield. Worcester's commercial tax rate in FY01 of $34.24, however, remains higher than the tax rates in communities to the east that are experiencing explosive growth rates. For example, the growth rate in Worcester in FY01 as a percent of the overall tax base was 1.99%, whereas in Shrewsbury - where the single-tax rate is $13.62 - the growth rate was 4.11%. Although the tax rate is only one condition that businesses consider when choosing to relocate or expand, how can Worcester take advantage of the region's high growth?
The total number of jobs in Worcester grew 4.36% from 1995 to 2000, with significant growth (21%) in the service sector, including health services, social services, and legal services. How will the recent economic downturn affect the number of jobs and the unemployment rate in Worcester? Are there steps we can take to cushion the impact of the downturn, including job training and workforce development? Are we capitalizing on the strengths of our workforce, or do we need to concentrate on new sectors for growth? Is Worcester successfully utilizing its high schools, colleges and universities for workforce development?
The overall occupancy rate for office space downtown, or the percent of the total square feet of space that is occupied, has been steadily increasing since 1998. However, much of this increase is due to a decline in the total available space because of renovation or demolition. Therefore, the total square feet of occupied space actually declined by almost 200,000 square feet between 1997 and 1999. Between 1999 and 2000 this trend reversed slightly, and the square feet of occupied space began to increase. Is this a permanent trend? How will Worcester attract more businesses to the downtown core and thereby spur additional development, such as retail stores and restaurants?
The number of residential vacant buildings fell from 225 to 151 over the last four years, but the number of commercial buildings increased from 30 to 45. The City is currently implementing recommendations from the City Manager's Community Task Force on Vacant and Abandoned Buildings; will these recommendations, such as allowing a 75% tax abatement for residential buildings that will be rehabilitated, further reduce the number of vacant structures? What can be done to encourage rehabilitation and re-use of commercial buildings?
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For more information or to receive a full copy of the report by mail contact:
Rick Beaman, CCPM Manager
508/799-7169