As cities and towns are finding it more challenging to balance their budgets while providing essential services for residents, the Town of Swampscott has turned to Tedesco Country Club to help fill the tax till to the tune of nearly $175,000.
At Town Meeting, Swampscott residents voted to exempt the club from Massachusetts General Law 61B, which essentially limits property taxes on qualifying land to no more than 25% of its assessed value, thereby resulting in what can be significant real estate tax savings.
Town Administrator Sean Fitzgerald led a presentation in which he proposed the exemption. His proposal also includes the town’s keeping first refusal under the stature in any future transaction involving Tedesco.
Fitzgerald expressed his disagreement with the law in that it includes venues such as golf courses as part of the “classified forest, agricultural, horticultural and recreational land.”
“They put some language in here for golfing, and boating. My concern is that frankly it’s inconsistent with the spirit of what’s in our general welfare,” Fitzgerald said. “It’s not really preserving and protecting in the way that helps support these broader ideals.”
Mass Golf Executive Director and CEO Jesse Menachem said he was disappointed with the decision.
“What people need to know is how much these clubs do as stewards of these communities, the charities they directly and indirectly support. The jobs they provide and the initiatives they support that are tied into charitable causes. They open their clubs to local high school and college teams and to the communities. They generate meals and beverage taxes. The economic benefit they provide to communities is undeniable, so this is very disappointing.”
Menecham said a 2023 economic impact study conducted by the Alliance of Massachusetts Golf Organizations found that the golf industry in Massachusetts is a $3.4 billion business.
“People need to know the tremendous return that communities derive from these golf courses, both private and public,” Menachem said. “Golf courses provide all sorts of benefits to the public by elevating the quality of life in communities. 61B is an optional program, clubs must apply every year. It isn’t one-sided. Yes, clubs get a tax break, but the state benefits with 52,000 acres of green space that is protected.”
Fitzgerald said that Tedesco saved $174,997 in taxes in 2023 due to the law. Fitzgerald credited former Select Board member Polly Titcomb for being outspoken about the situation and bringing it to his attention.
The majority of Town Meeting voters in attendance expressed general agreement that Tedesco should be paying more taxes. However, they were not without questions. One resident asked if Fitzgerald had consulted Tedesco management before proposing the article.
“I did not specifically ask permission from Tedesco to recommend this,” Fitzgerald answered.
One resident asked if Fitzgerald had communicated with Marblehead leadership about the situation, as a portion of Tedesco lies in Marblehead.
Fitzgerald said that Marblehead’s relationship with Tedesco is more advantageous than Swampscott’s, as it gets revenue from food and beverage sales due to the fact that the clubhouse is located in Marblehead.
Board of Assessors Chair Tasia Vasiliou expressed disagreement with the procedure of the proposal, and took to the microphone to suggest an alternative approach.
“The reality is that they (Tedesco) meet the criteria for the 61B. And in turn, we have the right of first refusal,” Vasiliou said. “I think the better way to go is to go to the legislature and have them change the law so that it is better on both sides.”
She added that she feels the town retaining its right of first refusal is its attempt to “have its cake and eat it, too.”
Vasiliou also asked if any other municipalities have undertaken something similar, and Fitzgerald responded by saying Belmont Town Meeting passed a resolution to exempt the town from 61B.
“All golf courses have tremendous benefits to the community, things like jobs,” Menachem said. “In Massachusetts alone golf generates more than 35,000 jobs that pay $1.9 billion in wages. State and local taxes generate $225.8 million. You don’t have to be a golfer to benefit from these things.”
