Perhaps the most important thing to arise at last Tuesday’s Lowell City Council meeting was an announcement that City Manager Tom Golden, on behalf of the city, has entered into a Memorandum of Understanding (MOU) with Solar International Core Canada Ltd (SICC) of Toronto, Canada, in which SICC will serve as the “Master Investor and Capital Partner” for development projects within the Hamilton Canal Innovation District (HCID) and will provide a pool of investment money worth up to $2 billion.

Because this was just a “for your information” item, councilors were not required to take any action, but most of them spoke about it. Their responses brought to mind a community theater production of Goldilocks and the Three Bears with some councilors acting like the MOU was “too hot” (as in, this is the greatest thing that has ever happened in Lowell) and others deeming it “too cold” (as in, I can’t be overtly against it but I’m skeptical of the whole thing). To be fair, a couple of councilors thought it was “just right” (as in, this is a tremendous opportunity but let’s not plan the ribbon cutting just yet) which was the most reasonable approach.

I’ve read the agreement several times and still find it difficult to comprehend, although I suspect anyone who is not an investment banker would feel similar. Here is how I understand it to work:

Last year, Lowell was designated the first Frontrunner City in the United States. The Frontrunner City program is a strategic international partnership led by the Urban Economy Forum (UEF) and the United Nations to foster sustainable urban economies and advance UN Sustainable Development Goal 11, which aims to make cities inclusive, safe, resilient, and sustainable.

One of the benefits to Lowell of this designation is to unlock significant international funding for urban development projects in the city, which is where SICC comes in. My initial guess was that SICC was not a bank or private equity company sitting on billions of dollars to invest. Instead, it seemed like a pass through for foreign investors seeking stable opportunities in which to invest (and earn interest from) their wealth.

Poking around online, there seems to be a connection between SICC and Oman, an Arab nation much in the news recently because it’s across the Strait of Hormuz from Iran.  Although Oman’s incredible wealth comes from oil and gas, the country’s leaders, like every other nation in the world other than the United States under the current regime, understand that the age of oil is dying and that their country must diversify into green energy technologies to strengthen it for the future. In the meantime, Oman still derives enormous wealth from petroleum sales, so the country desires stable investment opportunities that will help preserve and grow that wealth.

With the basis of the Frontrunner Program being the advancement of the UN’s sustainable development goals and, with the United States (despite the trepidation most of us feel when we awake each morning about what craziness has come out of Washington overnight) still seen as a stable and profitable venue for investment, the underlying framework of this agreement makes sense to me.

As for what’s in it for Lowell, I see two things: This deal potentially provides funding to a real estate developer who wants to construct something at an interest rate lower than what might be obtained from more traditional US lenders; and the partnership arrangement between the city and SICC, particularly the Advisory Joint Task Force committee, could accelerate the concept-to-completion timeline by providing the big-project equivalent of a pre-approved mortgage right from the start. Together, these two things would increase the odds of HCID projects happening.

I envision representatives of the Department of Planning and Development going to developers and saying, “We understand you plan to construct a building in community X, but if you come to Lowell and build it here, we have a lender offering favorable terms already lined up and ready to proceed.” Between a slightly lower interest rate than could be obtained elsewhere and the speed and ease of approval, it could be an attractive enough proposition for the developer to shift their project to Lowell.

That’s viewing this MOU in the most favorable light. Still, it’s understandable (and prudent) to have some concerns. The MOU provides some level of exclusivity to SICC so there’s a risk that projects with funding from other sources might be blocked and go elsewhere.

For example, what if an irrational war with no strategic goals was to break out in the Persian Gulf and paralyze that region’s economy? That might cause investors in that region to keep their funds closer to home rather than invest them in a distant country. With the intended money pipeline shut off by extenuating circumstances, the city might be locked into a funder – SICC – that doesn’t have any funds to lend. I believe the MOU doesn’t grant totally exclusive rights to SICC, but it’s probably enough of an obligation to make using another funder a messy undertaking.

Still, notwithstanding the thrilling announcement of the Draper project on the old National Park surface parking lot in the HCID to create a LINC Annex just a few weeks ago, in the context of a quarter of a century’s worth of effort to maximize the HCID’s potential, not much has happened, certainly nothing that meets the aspirations of the community back in 2001 when this project was conceived.

In the absence of anything better, why not give SICC a try?

****

The council also received an interesting presentation from Bridget Cooley, the director of the Pollard Memorial Library. She highlighted the library’s role as a vital community hub that provides essential services to Lowell residents. She also presented data about circulation, program attendance, and the library’s digital and physical collections. Although most library patrons in Lowell prefer tangible mediums such as printed books, the library continues to grow its digital holdings with e-books, databases and online resources. A bright spot has been the success of the relatively new bookmobile which has brought the library’s resources to neighborhoods and community events.

As a longtime user of Lowell’s library – I’m approaching the 60th anniversary of obtaining my library card – I’m thrilled to hear of the institution’s success. While I don’t use it weekly, I’m probably a monthly user. More importantly, whenever I need it, the library has always been there for me. From the comments of city councilors on Tuesday night, many of them see the value in the library and support its mission. Hopefully that will carry forward through coming budget deliberations.

****

Last week in “Seen & Heard” I wrote about my recent visit to the Massachusetts Historical Society and its “1776: Declaring Independence” exhibition now on display; I reviewed the book, Battle Green Vietnam: The 1971 March on Concord, Lexington, and Boston, by Elise Lemire (whose family roots are in Lowell), which is the story of an anti-war protest by local chapters of the Vietnam Veterans Against the War that gained national attention; I noted the obituary of Norman Bussel, a World War II POW who in later years wrote about PTSD and whose B-17 crewmate, Vasilios Mpourles of Lowell, died when their plane was shot down; and finally, an article on former NBA coach Dick Motta not being selected for the Basketball Hall of Fame led me to recall my enthusiasm for the Boston Celtics of the early 1970s.

Also, on richardhowe.com, on Marathon Monday, I reposted my April 22, 2013, article about the days-earlier Boston Marathon Bombing; and on Friday, I posted a new poem by the stellar poet and Lowell-native Michael Casey about the Olympia Restaurant.

****

One week to go until this spring’s Lowell Cemetery tours. They are on Saturday, May 2, and Sunday, May 3, both starting at 10am from the Knapp Avenue entrance of the cemetery. It’s free and there is no need to sign up in advance. Just show up. It’s the same tour both days.