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HomeMy WebLinkAbout2026-06-16-EDAC-min (DRAFT).docxEconomic Development Advisory Committee Meeting Minutes June 16, 2026 Approval of Previous Minutes The previous EDAC meeting minutes were approved unanimously. Steve Kaufman abstained. MIT Lincoln Laboratory Facilities Modernization Plan Representatives from MIT Lincoln Laboratory provided an overview of the Laboratory's long-term facilities modernization plan. The Laboratory recently secured a 50 -year lease for approximately 65 acres, along with deeds to several existing buildings that have been occupied since the early 1950s. This milestone enables the Laboratory to move forward with a 40 -year campus modernization plan. The plan includes approximately 12 to 14 new buildings over four decades. Lincoln Laboratory currently has approximately 1.7 million square feet and expects to add approximately 1 million square feet over time without expanding its overall campus footprint. Current and planned projects include: • Compound Semiconductor Laboratory and Microsystems Integration Facility, currently under construction. • Engineering Prototyping Facility. • A six -bay truck maintenance facility of approximately 18,000 square feet, estimated at $20 million, powered in part by rooftop photovoltaics and supported by geothermal heating and cooling. • Electrical utility upgrades, including expanded feeder capacity and improved resiliency. Committee members asked about employment impacts, traffic, energy storage, and opportunities for an EDAC tour. Lincoln Laboratory representatives stated that significant employment growth is not anticipated, and traffic impacts are expected to be limited. Staff will explore coordinating a future EDAC tour through Lincoln Laboratory's communications/public relations office. Hanscom Air Force Base Projects and Strategic Real Estate Opportunities Dave Wong, Base Civil Engineer for Hanscom Air Force Base, provided an overview of base infrastructure, utilities, and major construction projects. Hanscom Air Force Base consists of approximately 826 acres and manages nearly 3 million square feet of buildings, with an average building age of approximately 56 years. Major projects discussed included: • A new acquisition management facility. • A shipping and receiving warehouse. • A new fire station. • A recently completed entry control facility near Airport Road. • Ongoing demolition of obsolete facilities. • Approximately $450 million to $500 million in active construction across the installation. The discussion also included Strategic Real Estate Opportunities, an initiative involving the Air Force and the Commonwealth to explore potential economic development opportunities on or near the base. Committee members raised questions about competition with existing commercial vacancies in Lexington, local tax impacts, and the importance of including Lexington and surrounding communities in the feasibility process. Staff and committee members noted potential synergies between Hanscom, Lincoln Laboratory, Hartwell Avenue, defense -related industries, housing opportunities, and future innovation -sector growth. Tax Increment Financing Discussion Carolyn Kosnoff presented an overview of Tax Increment Financing as a potential economic development tool for Lexington. The discussion focused on the Town's commercial vacancy challenges, declining commercial values, pending abatements, and the potential shift of commercial properties to residential use under MBTA zoning. Key points included: • Lexington's tax levy increases annually by 2.5%, plus new growth. • Declining commercial values may shift a larger share of the tax burden to residential taxpayers. • Lexington's commercial tax rate is higher than many surrounding communities, and several nearby communities already use TIF agreements. • A TIF does not require the Town to contribute cash; instead, it temporarily exempts a portion of new taxable value created by private investment. • The goal would be to encourage investment in commercial properties and preserve Lexington's limited commercial tax base. The committee discussed 440 Bedford Street as a possible example where a TIF could help support tenant attraction and interior build -out. Staff emphasized that the goal is not necessarily to incentivize speculative new construction, but to help preserve and activate key commercial properties. Committee members discussed the need for additional modeling, including comparisons between commercial redevelopment, residential redevelopment, and commercial reuse scenarios. Members also discussed whether staff should reach out to the property owner to determine interest before advancing significant work. Broader Commercial Development Discussion The committee discussed the broader challenges facing Lexington's commercial market, including vacancy rates, competition from neighboring communities, life sciences market shifts, defense -sector opportunities, and the need to attract smaller innovation companies. Members discussed the potential importance of creating a feeder economy through incubators, innovation villages, small biotech companies, defense -related firms, and emerging AI -driven companies. Additional tools discussed included business improvement districts, district increment financing, planned development districts, and other mechanisms that could support Hartwell Avenue and Lexington's commercial areas. Action Items • Staff will explore arranging an EDAC tour of MIT Lincoln Laboratory. • Staff will follow up with Lincoln Laboratory and Hanscom representatives as Strategic Real Estate Opportunities move forward. • Staff will consider reaching out to the owner of 440 Bedford Street to assess interest in a potential TIF discussion. • Staff may prepare additional TIF modeling, including commercial versus residential tax scenarios. • Staff may circulate information on prior Lexington TIF examples, including Takeda/Shire and UniQure. • EDAC may continue discussion of TIF and other economic development tools at a future meeting.