2011-05-10 Housing Authority Minutes

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READING HOUSING AUTHORITY ' MINUTES OF THE SPECIAL BOARD MEETING, May 10, 2011 A special business meeting of the Reading Housing Authority was held on Tuesday, May 10, 2011 at 7:30 P.M at the Selectmen's Meeting Room 16 Lowell Street, the town of Reading, Mass. The meeting was called to order at 7:35 P.M. with the Chair, Diane Cohen, presiding. Those members present and forming a quorum were Karen L. Flammia, Kevin Mulvey and Mary Connors well as the Secretary/Executive Director, Lyn Whyte. Timothy Kelley excused himself from this meeting. Also present, Board of Selectmen members; James Bonazoli, Camille Anthony, Richard Schubert, Stephen Goldy and Ben Tafoya, Town Manager Peter Hechenbleikner, as well as members of the Oaktree Development LLC management team. Consultant Charles Eisenberg was also present. New Business: - The purpose of this special meeting was to meet in joint session with the Board of Selectmen and continue with previous discussions regarding the proposed request for disbursement of monies from the Affordable Housing Trust Fund (AHTF) to support the Oaktree development project on Haven Street. These notes may not reflect the details of this special meeting since exact minutes will be reflected by Town record, however, are meant to confirm RHA Board joint participation in these proceedings. Once RHA Chair, Diane Cohen called meeting to order for RHA Board, Selectman Chair James Bonazoli, informed all present that the meeting was a continuation of last weeks meeting to discuss the request by the Oaktree Development LLC to utilize $400,000 of the AHTF monies as a grant toward the project on Haven Street. He made mention that Town Meeting had approved the allocation plan for the fund as presented on 5/5/11. As a result, the joint boards for this trust could now move forward and formally address the use of these affordable funds. Members of the Oaktree management team were given the opportunity to respond to the questions and concems that had been raised at the May 3rd meeting by preparing an additional power point presentation addressing those concerns. They reviewed the overall cost of the project, projected income to be derived from both the affordable portion, as well as the retail portion upon completion and subsequent leasing of the available units, as well as expected debt ratios and profit margins. Arguments were presented by Oaktme to support their need for the $400,000 grant. They allege that the entire project hinges on these funds and that no other means of raising the additional monies for this project are available to them. Both Boards continued to voice concerns that the entire amount of $400,000 needs to be gifted in its entity and suggested that the developer look at either additional leveraging on his end or other means of paying back the fund, at some time in the future, the bulk of funds. Town meeting members present at this meeting were afforded an opportunity to speak and most supported the project but felt that all the funds from this trust should not be utilized on one particular project but distributed in such a way that other applicants would have a continuing opportunity to request assistance. ' As a result of this meeting, Selectmen Tafoya dialled a motion to support the joint boards allocating up to $400,000 from the Trust, however, also had six additional conditions that must be addressed before any transfer of monies took place. Select person, Camille Anthony did suggest that a joint subcommittee be appointed with two members from each board to review the conditions and set parameters. All members were in agreement. With some changes to language, the motion was presented to joint boards and unanimously voted in favor.