Economic Development

Introduction

The Economic Development Chapter deals with how the Town can best take advantage of current economic conditions and potential future conditions to enhance the economic foundation of the Town. One of the basic precepts in the Master Plan is to enhance the Town as a place to live while improving its economic well being. This means controlling potential adverse impacts by actively prescribing how the Town should develop and under what conditions. It means being proactive and not waiting to respond to the inevitable inappropriate proposal.

Recent economic trends are cited to lay the background for a look at the Town’s economic base. The characteristics of Littleton’s economy are investigated looking at the sector of the economy in which residents are employed, and in which jobs exist. Next, Littleton’s resources and future prospects along the Route I-495 corridor are explored pointing out that, if Littleton wants to achieve the goals that it set, it will require a proactive approach. Its optimum welfare is not guaranteed; Littleton will have to work to achieve it. Finally, ideas and options for Littleton Common will be addressed covering short-term proposals and long-term uses. Influencing factors such as Town policy toward vacant land, taxation, land use regulations, and the organizational framework in Littleton to deal with businesses are addressed.

The following policies were prepared by the Town to implement the goal of promoting economic development in a managed way to maintain or improve the quality of life of town’s people and the community.

To seek economic development that is compatible with Littleton's community character by maximizing positive impacts, minimizing negative impacts, and maximizing the use of existing infrastructure

To encourage the continuation of agriculture and farming-related businesses

To strengthen and enhance the Town Center of Littleton, so that it may serve the needs of the residents for local shopping, civic, and community functions

To designate and improve specific areas for business activity, and prevent stretching of business development into other areas of town

To locate shopping with good access to Route 119

Economic Base

This section presents an analysis of Littleton’s economic base. A significant portion of the data is only collected at the decade US Census. The most important data is recorded in this section so that when the 2000 Census is tabulated and issued the Town will be able to use the documented reference to gather corresponding data and readily evaluate the changes. Strategies and proposals can then be verified or adjusted as appropriate. Demographic trends investigating population growth, household characteristics, age distribution, etc. are covered in other sections of the Master Plan. The following employment data looks at overall town employment, the labor resources, the growth or decline of various job sectors, and the commuting patterns of the journey to work.

Change in the 1990s

The structure of the economy in the early 1990's began a permanent change. The economic downturn that was experienced in the early 90's was more than the cyclical recession phenomenon to which everyone had become accustomed. Businesses were restructuring and reducing jobs in order to achieve higher levels of productivity due to intense international competition rather than weak demand associated with previous recession conditions.

Massachusetts was one of the first states to enter the recession in 1989 with its worst economic downturn since the Great Depression. Over 14 percent of its total jobs were lost in less than three years, the highest rate of job loss per capita in the nation. [1] Even though the rapid reduction in jobs is over and the economy has continued to gain strength throughout the last half of the 90’s, there are still some industries and companies that are reducing their workforce. As the new century begins, we see a new downturn in the economy.

The earlier rapid reduction in the workforce had dramatic impacts on individuals and their families. Many had to sell their homes in order to reduce housing costs or to move to another location for a new job. The sudden glut of residential properties on the market caused a sharp reduction in general housing values. Likewise, the consolidations of businesses resulted in excess commercial, office, and industrial space, reducing the value of commercial space. Both of these factors resulted in a sudden erosion of a community’s economic base and loss of tax revenue, putting many towns in severe fiscal crisis.

Littleton was not as heavily impacted as many other communities since it did not have a large high tech base for which it relied on tax revenue. There were, however, numerous individuals who were faced with job loss, but for the most part able to quickly return to the work force due to their generally higher level of education. The late 90's have returned to an expanding economy and a nearly full employment situation. With the economy still expanding at a steady but slower pace Littleton needs to position itself to take advantage of the times to increase its tax base while at the same time maintaining its quality of life.

The attributes and character of the region’s labor force dictate in many ways the kind of regional economy that is possible. A critical input to most business location decisions is the quality and quantity of the labor supply. The total Littleton labor supply may seem limited at first glance since there were only an average of 99 persons unemployed throughout 1999 with an unemployment rate of 2.2%. However, a company locating in Littleton can capitalize on the substantial regional labor force situated within commuting distance.

The table below shows the employment and unemployment of the Littleton labor force for recent fluctuations of the Massachusetts economy. In 1983, the moderately high unemployment rate for Littleton residents began to decline as the boom years of the 80's took hold to a low of 1.9% in 1987. The rate began to rise as the recession and business realignment of the early 90's became established. Peak unemployment for Littleton residents occurred in 1991 at 6.6% when 258 residents were unemployed. Many towns in the state had unemployment rates over 10%. As business began to pick up after major company realignments, the unemployment rate dropped to an average of 4.0% for the year of 1995. The latest available figures for 1999 shows a low unemployment rate of 2.2% in Littleton.

Table 4‑ 1 Labor Force: Employment and Unemployment in Littleton

Source: Commonwealth of Massachusetts, Division of Employment & Training (Local Area Unemployment Statistics)

This section looks at the types of jobs there are in Littleton. The table shows what sector of the economy the jobs are located. The largest employment sector in town continues to be the manufacturing sector where 36% of the jobs are located even though the decline in manufacturing jobs has been 30% since 1990. Other types of jobs include 16% in trade and 27% in services. Since 1985 the number of services sector jobs has increased five fold. During the last two years the number of people employed in the construction industry has been over twice the number during the 1985to 1995 period.

Table 4‑ 2 Average Annual Employment by Place of Work: Jobs in Littleton

Source: Commonwealth of Massachusetts, Division of Employment & Training (ES-202 Series)

Table 4‑ 3 Payroll, Annual Wage & Establishments 15 Year Comparison

Source: Commonwealth of Massachusetts, Division of Employment & Training (ES-202 Series)

The jobs to labor force ratio of 1.292 means that there are 1.292 jobs in Littleton to the number of people in the labor force who live in Littleton. There are slightly more jobs in Littleton than residents in the labor force. In fact, in 1990, 777 residents worked in Littleton out of 5,342 jobs in the town, meaning that residents held 15% of the jobs in town. Residents held one out of every seven jobs in town.

Economic Base Findings

During the recession of the early 90's, the peak unemployment rate for Littleton residents occurred in 1991 at 6.6% when the statewide rate was at 9.1%. The unemployment rate has steadily dropped since that time to the latest figure of 2.2% average for 1999 with the statewide rate at 3.2%.

Most of the jobs in Littleton are in the manufacturing sector of the economy, 2,116 out of 5,840 jobs or 36%. Other major sectors include services at 27% and wholesale and retail trade at 16%.

Since 1985 the number of services sector jobs have increased five fold, while manufacturing sector jobs have declined by 30% since 1990. Littleton is changing from a manufacturing economy to a service sector economy. The 1999 Jobs/Labor Force ratio of 1.292 means that there are 1.292 jobs in Littleton to the number of people in the labor force whom live in Littleton. In 1990, the last time figures are available, residents held 15% of the jobs in Town.

I-495 Corridor

v Corridor Assessment

The I-495 Corridor is the fastest growing region in Massachusetts. During the first half of the 1990s population in the I-495 Corridor grew by 5% compared with a statewide growth rate of 2.55% [5] The I-495 communities that experienced explosive growth between 1990-1995 include: Boxborough (30%), Bolton (22%), Medway (14%), Franklin (13%), Hopkinton (12%), Stow (11%), Ashland (11%), and Acton (11%). [6]

During this period, Littleton grew by 6%. However, during the last half of the decade from 1995 to 2000 the Littleton population grew by 9.5%. [7]

From this data, Littleton has grown by 16.3% during the 90s compared to 3.4% during the 80s. If one projects the 16% growth of the last decade into the next decade, then the population in 2010 would be 9,796. It seems reasonable to assume this continued growth due to the emergence of the I-495 Corridor and its projected viability even if the economy slows.

Developers perceive the 495 Corridor as a preferred location for certain industries looking to locate in Eastern Massachusetts. Market research is often done on the 495 Region, separate from the Worcester and Boston areas. The towns along the Corridor are not interchangeable, but they offer an engaging set of real estate options to businesses as well as homeowners.

As part of the I-495 Technology Corridor Initiative, a market overview was presented by Christopher P. Tosti, an executive vice president and partner of CB Richard Ellis Whittier Partners on June 23, 1999. The following two tables present some interesting data. First, the market overview shows that the total size of the combined 495 Corridor market rivals that of the Route 128 West market at around 20 million square feet. Although the center of the 495 Corridor market is along the Mass Pike, a burgeoning market of nearly 4 million square feet exists along Route 2 West. The second table shows the breakdown of the sector in which office jobs are projected to the year 2002 in Greater Boston. Notice that the projection is over 3.5 million square feet per year.

Table 4 ‑ 4 Market Overview June 1999

Source: I-495 Technology Corridor Initiative, Market Overview, CB/Richard Ellis – Whittier Partners, June 23, 1999.

Table 4 ‑ 5 Projected Office Demand 1999-2002

Source: The New England Economic Project, October 1998.

The 495 Corridor has emerged as a key location for many industries. The southern part of the region has attracted more distribution and manufacturing firms, while the northern section has more technology companies. These technology companies have been in the areas of data communications, telecommunications, and some software engineering. The formation of this business center was described a couple years ago in a newspaper article. “Several dozen telecommunications firms are planting their roots in the 495 communities of Littleton, Tewksbury, Boxborough, and Chelmsford, with Westford as the epicenter.” [8] [1]

The Littleton Corporate Center site at the intersection of Route 119 and I-495 began development in the early nineties but was stalled due to the economic downturn at that time. The late nineties saw its purchase by Hines for development. The following factors appealed to the Hines organization: [9]

Outstanding access from I-495

Land properly zoned and permitted

Size allowed critical mass for an office complex of greater than 400,000 square feet.

Proximity to labor force for high tech people from New Hampshire as well as Marlborough and Andover.

There were potential tenants competing with each other in the area on the environment of workspace. This site provided an opportunity to create a superior work environment. Hines saw a good number of tenants out there and really intended to own and lease the property on a long-term basis. However, Cisco Systems was in need of a lot of space, the location was perfect for them and hence the business decision to sell the property to them for a single corporate facility. This example attests to the current demand and desirability of the Littleton I-495 location for high tech office, research and development facilities.

What are the conditions today ? “The frenzy of 6 months ago has entirely stopped.” [10] [10] Capital market changes have put people on the sidelines. Now you could not get financing. The stock market changed. However, today is different from the 80s when there was too much supply. Presently there is no pressure on rental rates because there is little or no vacant space. Mr. Francis sees the current situation driven by tenant demand that will likely see more local developers building commercial facilities to fill that need. I-495 Initiative

The I-495 Technology corridor Initiative/Campaign for shared solutions was created by State Senator David Magnani and State Representative Barbara Gardner in conjunction with the Massachusetts Technology Collaborative (MTC) and the Metropolitan Area Planning Council (MAPC). The MTC is a quasi-public economic development organization established by the Commonwealth of Massachusetts to promote the growth of technology-based industry in the state. The MAPC is the regional planning agency representing 101 cities and towns in the metropolitan Boston area of which Littleton is one.

Study by the Initiative and interviews with a variety of stakeholders conclude that the good “quality of life” defines the towns in the region. Moreover, the good life draws business to the region. Whether they are citizens, business leaders, or public officials, people shared the view that the quality of life in the 495 Corridor is one of the region’s greatest strengths. New England character is at the core of town identity. That shared rural quality of life includes open space, good schools, relatively affordable housing, home rule, tight-knit communities, and low crime rates.

The 495 Initiative is intended to provide a continuing forum for stakeholders in the region to interact with each other for the common good. Because of the increased pace of growth in the region tension between home-rule and regional identity has heightened. Each town wants to maintain its unique identity, but there are many problems that can only be solved on a regional basis. Three issues currently under taskforce review include permitting, transportation, and water and sewer.

Growth throughout the 495 region should compel towns to recognize their shared interests and highlight the benefits to collaborate routinely. Town administrators have often collaborated on discrete projects that provide clear, tangible benefits to each town involved. Usually they involve two or three bordering towns. These collaborations tend to focus on specific issues, rather than broad regional topics.

Town officials are often wary of regional collaboration. Towns that would prefer less development fear that it could force them to develop. Some more fast-growing towns are concerned about being deprived of future opportunities. There is some apprehension that towns would share problems rather than solutions.

The environmental community fears that the public is unaware of growth impact on the environment, particularly where there is little visible evidence of degradation. For instance, unlike other parts of the country where water shortages are part of the culture, families in New England have rarely experienced severe drought conditions and are accustomed to large, well-kept lawns. As a town develops closer to buildout, problems intensify. A Boston Globe article from “December 27,1998, “Franklin Struggles with Water Woes”, illustrates that other towns in the region have to plan for rapidly changing conditions.

Business executives expect to continue expanding along the Corridor, providing towns with additional revenue and further increasing demand for services throughout the region. When town officials respond to local development, collaboration with neighboring towns and the state is beneficial.

Residents, town officials, business people, and state and federal officials, who do not necessarily focus on the region, make decisions. Nevertheless, each of their decisions usually affects the region. In addition, the overall welfare of all stakeholders is to some degree impacted by decisions made in towns throughout the Corridor. The survey taken between October and December 1998 with selected people from the public sector, large and small companies, real estate developers, and the environmental community revealed that across all sectors people were enthusiastic about voluntary regional planning. [11] [11] All participants gave this proposition the survey’s highest marks. In essence this is the purpose if the I-495 Initiative, to foster consideration of regional concerns for the benefit of the entire 495 Corridor.

Sharing information could enhance each town’s planning process. Neither the public nor the private sector can solve regional problems alone. Improving communication between different stakeholders and coordinating appropriate voluntary planning and developmental activities among towns can enhance the prospect of maintaining the quality of life that has contributed to the 495 Corridor as a leading residential and business location.

I-495 Corridor is the location to be for office, research and development and other high tech activities in the Boston Metropolitan area. Littleton has three interchanges with I-495 within its boundaries. The development of a Cisco Systems complex of app roximately 650,000 square feet at Littleton Common is an example of the desirability of the Corridor. This project is essentially the last undeveloped land in close proximity of the 119/I-495 interchange.

The next interchange to the south is with Routes 2A/110 along King Street. Most of the land around this interchange is committed to residential use and Town owned lands. The adjacent Foster Street area to the east contains many of the older and historic residences in Town extending southward to Harwood Avenue.

The third and most southerly Town interchange with I-495 is with State Route 2, which is the major east-west highway in the state north of the Massachusetts Turnpike. This grade separate highway is the Town’s most significant interchange. It provides the last resource along the corridor in the Town to consolidate additional high tech uses in order to further enhance the commercial tax base in the Town.

The Land Use Concept described in Chapter II focuses future office, research and development activities around the Route 2 and I-495 interchange. Additional area exists to add commercial uses to consolidate the location as the major high tech center in the Town. Access can be provided to this district from regional highways without going through major residential areas. In addition to good road access, the MBTA has proposed and is studying a new train station on the adjacent Fitchburg rail line.

Other minor locations for office, research and development activities can be provided as part of a new mixed use zone district where a combination of appropriate uses can be located with site plan approval. Proposed locations include some land to the east of Littleton Common and in future years the large tract of land along Ayer Road now being mined for sand and gravel for its future reuse.

Appropriate small-scale commercial uses are proposed to reinforce the Littleton Common area. Littleton Common is the present Route 119/King Street business area. The scale of future uses can be maintained consistent with the existing uses by putting a maximum size on individual uses. Past history and public input during the Master Plan indicates that townspeople prefer to maintain and enhance the present character of the Littleton Common area, which has been described as smaller retail uses in residential type buildings.

As described in Chapter V a proposal was considered by the Town in 1995 to establish an historic district in the Littleton Common area along Great Road and King Street. The historic district was intended to provide the design control necessary to maintain the small-scale residential character of the Littleton Common village centers business uses. The proposal received a majority vote but not the two-thirds required for passage.

An alternative to a Historic District would be to create a special zone district for the Littleton Common business district or village center. One provision would require the design approval of all new uses or changes of use within the zoning enabling legislation. Some design guidelines could be part of the bylaw provision while others could be published by the Planning Board as part of a guideline manual for the revitalization of Littleton Common.

The second business zone district would be for neighborhood business uses. These uses are those retail and personal services that residents require on a daily basis. There would likely need to be a wider range of commercial uses added to the use regulations schedule in the zoning bylaw.

Cooperation between towns is needed to solve regional problems and to mobilize joint efforts between towns in order to leverage resources at the state level. Most state agencies and programs will give preference to regional problems, particularly when there are two or more towns voluntarily working together. This is true whether it is for planning funds or for project financial support.

The Planning Board and the Town should be active in the I-495 Initiative for corridor towns. Three task forces include permitting, water and sewer, and transportation. It would be most beneficial to have a representative for each of these task forces. The format of meetings, about four per year, is to cover topics of interest to all and then to break-up into task force meetings. It is recognized that Planning Board members are usually very busy just to keep up with their duties according to the law of their office. This results in putting longer-term planning and other desirable activities such as regional cooperation on their tomorrow list. Some towns have established “associate planning board members” to work with them. Perhaps such a mechanism would allow the Planning Board to more fully address aspects such as regional cooperation through associate participation in the I-495 Initiative.

Consider changing the IA zone district into an Office, Research and Development (ORD) zone district. The present IA and IB zone districts are virtually the same. The IA or ORD zone would foster the more high value office and research uses and is intended primarily to promote those uses around the I-495 and Route 2 interchange. Special Permit by the Planning Board could permit some lower value uses such as warehousing and distribution centers. Part of the rationale would be to prohibit large trucking and other such impacts from jeopardizing office, research and development uses.

Require design review of all new commercial and industrial uses or changes of use within the parameters allowed by the zoning enabling legislation. Some design standards could be part of the bylaw provision while others could be published by the Planning Board as part of a “Design guideline manual for the revitalization of Littleton Common” or other areas of special interest.

As part of establishing a “Village Center” zone district to encompass Littleton Common, the Planning Board should prepare additional design guidelines for structures in the “Village Center” at Littleton Common. These guidelines would not have the legal standing of those in the bylaw, but they would provide developers with additional direction as to Planning Board expectations for building design and site plan layout.

Consider establishing a second business zone district strictly for neighborhood business uses. The Neighborhood Business Zone District would allow those retail and personal services uses that residents require on a daily basis. A maximum floor area for any single use could be set. The added differentiation of business uses will likely require that permitted uses in the use regulations schedule of the bylaw are expanded.

The difference between the residential and the commercial and industrial (C&I) tax rates causes some resentment. Towns with higher C&I rates are generally considered to be less friendly toward business. Currently 10 of the 25 towns in the I-495 Corridor have different tax rates for C&I and residential property. Littleton is a Town with a split tax rate. For FY2001 the tax rate for residential and open space is 12.82 and that for C&I is 18.62, which means that the C&I tax rate is 45% higher. This is a significant difference. Since the tax rates are different, it is important to keep the percentage relationship steady or a trend of narrowing the difference. An ever increasing or large differential of the C&I tax rate is certainly a negative signal and may convince businesses to look elsewhere.

Adopt a town zoning by-law limiting the footprint of any single commercially developed structure to less than 20,000 square feet. Require design review of all new commercial and industrial uses or changes of use within the parameters allowed by the zoning enabling legislation. Some design standards could be part of the bylaw provision while others could be published by the Planning Board as part of a "Design guideline manual for the revitalization of Littleton Common" or other areas of special interest.

[1] Commonwealth of Massachusetts, “Choosing to Compete”, Revised May 1993, p.7.

[2] TCPU - Transportation, Communication and Public Utilities

[3] Wholesale & Retail Trade Wholesale & Retail Trade

[4] Finance, Insurance, and Real Estate Finance, Insurance, and Real Estate

[5] I-495 Technology Corridor Initiative/Campaign for Shared Solutions, Water and Sewer Task Force, January 1999, Massachusetts Technology Collaborative and Metropolitan Area Planning Council, p. 10. I-495 Technology Corridor Initiative/Campaign for Shared Solutions, Water and Sewer Task Force, January 1999, Massachusetts Technology Collaborative and Metropolitan Area Planning Council, p. 10.

[6] Ibid, Appendix B. Ibid, Appendix B.

[7] Town of Littleton Census, Town Clerk and Kenneth M. Kreutziger, AICP. Town of Littleton Census, Town Clerk and Kenneth M. Kreutziger, AICP.

[8] The Boston Globe, “Westford Ho!”, November 18, 1998. The Boston Globe, “Westford Ho!”, November 18, 1998.

[9] Telephone interview with Mike Francis of Hines, January 18, 2001. Telephone interview with Mike Francis of Hines, January 18, 2001.

[10] Ibid. Ibid.

[11] The 495 Region: Building an Identity, MTC/MAPC, January 1999, p. 15 The 495 Region: Building an Identity, MTC/MAPC, January 1999, p. 15