1990-03-27 Board of Selectmen Executive Session Minutes

Home Browse Search

Minutes of the Executive Session - Section I Board of Selectmen Meeting - March 27, 1990 The meeting convened at 7:06 p.m. Present were Selectmen Russell Graham, Eugene Nigro, George Hines, Sally Hoyt, Dan Ensminger, Town Counsel Ronald Kaczynski, former Selectman Jack Russell, As- sessor Bob Nordstrand, Town Manager Peter I. Hechenbleikner, and John Seely and John Rousseau from Homart. John Rousseau, speak- ing for Homart, indicated that they are very strong on the project in Reading, but the rental market has gone down $5. 00 per square foot in the last year. The net effective rent has gone from $20.00 per square foot to $15.00 per square foot. The ac- quisition of this site is 250 of the site-ready costs. The total cost is $18-20 million, which includes land acquisition, off-site and on-site construction, compaction, closing the landfill, etc. By D.E.P. 's approval, they can't build until the entire site is closed. This means the expenditure of the full development costs up front. During the last year, after the hotel left and market problems developed, Homart began to look for a financial partner and they have come up with one institutional partner. They still feel that the site is a good one. The location is excellent, the development concept is good and they believe in the long-term health of the area. Homart indicated that they currently have a September "drop-dead date. " They want an extension until Septem- ber, 1991, although they may not need all of that time. They want to start an aggressive marketing campaign. Pete Hechenbleikner asked about a phased purchase--i.e. , can they purchase the front part of the site for $1.5 - 2 million, which would help the Town with its FY1992 financial problems, and then agree to close the project in its entirety by September, 1991. There are potential D.E.P. problems with that concept, but Homart is willing to go back to D.E.P. and see if they can get approval for a phased closing. They will work with Tony Fletcher to find out what they can do on this. The permit from D. E. P. is not issued. There is a paperwork blockage. D.E.P. agrees that the 18-month time clock for closing the landfill would not start un- til Homart had closed on the project. If D.E.P. would permit a phased landfill closing, Homart would be amenable to purchasing in phases. Homart indicated that within two to three weeks, they need to know what their time frame will be, i.e. will the Town insist on the September, 1990 closing date, in which case Homart will have to evaluate its options, or will the Town extend. Jack Russell asked about a 25% down payment on extension for the closing. This would be non-refundable and able to be used by the Town. Homart indicated that their proposal was a $0. 25 million "down payment on a non-refundable basis. " They will get back to us by the end of the week as to whether or not they could in- crease the amount of that down payment. On motion by Ensminger, seconded by Hoyt, the Board voted to ad- � J ourn the Executive Session until the end of the regular