MEDFORD — The City of Medford is working to reduce vacant storefronts through the commonwealth’s Vacant Storefront District Program, which offers up to $10,000 in tax credits to encourage businesses to move into storefronts that have been vacant for a year or more. Eligible properties are located in six areas: Medford Square, Haines Square, Hillside, South Medford, Wellington, and West Medford.
The funding combines state and local resources, with up to $5,000 from the Commonwealth’s Economic Development Incentive Program and a matching amount from the city’s Community Development Block Grant funds.
“To be frank, we don’t have a huge vacant storefront issue,” Jessica Martinez, Medford’s economic development planner, told Tuft’s Daily. “To move into a space, to do the upkeep and the maintenance that would require to open a new space, would be in the hundreds of thousands [of dollars] in some cases, so this is just a small incentive for businesses to move into vacant storefronts.”
The city aims to make local business districts more appealing for both residents and new businesses. “We want to bring more vibrancy to our town squares,” Martinez added.
Sal Di Stefano, the city’s director of economic development, emphasized the broader impact of vacant storefronts. “Vacancy, unfortunately, can create additional vacancy, and it could be like a snowball effect when storefronts are empty,” he said.
The program also prioritizes support for women-owned, BIPOC-owned, and veteran-owned businesses. “They are groups that traditionally have less advantages in accessing capital,” Di Stefano explained.
Entrepreneurs can apply for the program through the city, which will verify eligibility before passing applications to the Economic Assistance Coordinating Council for final approval. Approved businesses will receive tax credits on a rolling basis as year-end rewards.
Tufts economics professor Cynthia Kinnan noted that while tax credits reduce risk by rewarding active businesses, upfront grants or subsidized loans might better address the high initial costs of rehabilitating properties. “Money will only be paid out to the extent that that business really is active and is bringing in revenue in the area,” Kinnan said, highlighting the advantages of tax credits.
Medford’s Economic Development Team remains available to assist businesses beyond the program, partnering with the Massachusetts Small Business Development Center and the Community One Stop for Growth initiative. “If a business is moving into the city, we welcome them to reach out to the economic development team,” Martinez said.
