During the meeting, participants explored the implications of moving from a single tax rate to a split tax rate as the town seeks to address economic challenges. The Natick Select Board has traditionally maintained a single tax rate, but changing economic conditions have prompted the board to reconsider this approach. Businesses and community leaders, including representatives from Brookfield Properties, which manages the Natick Mall, shared their perspectives on the proposed tax changes.

Janelle Vaughn of Brookfield Properties presented concerns, emphasizing that a split tax rate could lead to an increase in occupancy costs for retail leases. Vaughn pointed out that higher property taxes, typically passed on to tenants, could jeopardize affordability for retailers already dealing with rising utility rates and the ongoing recovery from the COVID-19 pandemic. The Natick Mall, employing around 1,200 full-time and 600 part-time workers, plays a role in the local economy by generating substantial payroll and sales taxes. Representatives from the mall highlighted the importance of considering the potential economic ramifications of a split tax rate on both the mall and its tenants.

Mike Lima, who manages property tax for Brookfield, stressed that a split tax rate could deter prospective tenants due to increased costs, impacting the mall’s ability to attract businesses. He noted that retailers are becoming more selective about market entry, and the increased financial burden could hinder the mall’s recovery efforts and its role as an economic engine. Jen Carney, Senior General Manager, provided data projecting operational expenses rising from $18 million in 2019 to over $21 million by 2027, reflecting inflationary pressures. Carney emphasized that operational expenses, particularly real estate taxes, are critical components of their budget, with any additional financial burden presenting a challenge to recovery efforts.

Concerns about the broader financial landscape facing commercial properties in Natick were echoed by other speakers. The challenges of maintaining an aging infrastructure, including security, staffing, and maintenance services, were discussed, with speakers highlighting the need for a stable tax policy amid rising operational costs. Infrastructure improvements, such as parking deck restoration and security vehicle maintenance, were noted as additional financial commitments that the mall makes annually.

A related discussion centered on the broader economic landscape affecting Natick and its retail sector, with Paul Joseph of the UDCI highlighting macroeconomic factors that influence traffic patterns at malls. Joseph compared Natick to Burlington, Massachusetts, noting that Natick lacks the transportation management association and transit connectivity that benefit Burlington. He emphasized the need for a holistic approach to understanding the complex interplay of factors affecting the Natick Mall’s performance.

The meeting also addressed the competitive landscape facing Natick, with concerns about the town’s ability to attract new investments and the challenges posed by existing zoning laws and building requirements. A participant noted that Natick’s commercial base is insular, with insufficient attraction of new investments, which could put the town at a competitive disadvantage.

In addition to these pressing economic discussions, the board touched on administrative matters, including a decision to continue a hearing regarding Gadsby’s Chop House’s alcohol license application to the next scheduled meeting. The session concluded without further business, wrapping up at 7:51 PM.