1990-03-13 Board of Selectmen Executive Session Minutes

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Minutes of the Executive Session Board of Selectmen Meeting March 13, 1990 Section 1 The meeting convened at 9: 35 p.m. Present were Acting Chairman John Russell , Selectmen Mollie Ziegler, Gene Nigro, Dan Ensminger, Russell Graham, Town Counsel Ronald Kaczynski and Peter Hechenbleikner, Town Manager. Also present were Jack McBride and John Sachetti of Bear Hill Realty Trust. Bear Hill Realty Trust indicated that they have an H.O.P. project in Chelmsford and Westminister. The market is good for lower priced housing. However the banks don't want to do loans for condominiums. The projects that they are doing now were financed a year ago at one hundred percent financing. They have talked to 15 to 20 banks. When questioned as to when the market is going to turn around for condos, the estimate was one and one half to two years. Bear Hill Realty Trust feels that there has been a 12 to 25% reduction in the value of land since the appraisals were initially done this would mean a 2 . 4 to 2 . 8 million dollar value to the land rather than the 3 .2 million dollars currently offered. The Town has several options: 1) Go to someone else. 2) Give Bear Hill Realty Trust a one year option. 3) Reduce the purchase price to the neighborhood of $15,000 per unit such as the Acton project that Bear Hill Realty Trust is doing and second lowest bidder bid for the project. The reduction in unit price e could be offset to an extent by a greater number of units - per- haps up to 130 or 140 units. Bear Hill Realty Trust indicated that they would get back to the new Board: suggest that the Board review and see if they want to change the deal . The Board needs more facts and Bear Realty Trust will come back with the information that the Board needs. Section 2 - Minutes of 3-13-90 Regarding Homart, Ron Kaczynski brought the Board up-to-date on the status. Homart wants to extend the closing date till 9-30- 91, and in exchange for that would pay one half of the CPI es- calator, and also an additional $250, 000 non-refundable deposit to be credited to the purchase price. The Board felt that an ex- tension like that is out of the question. All issues above the 6.25 million dollars are negotiable. On motion by Nigro, seconded by Ziegler the Board voted to ap- prove the minutes of 2-27-90 by a vote of 5-0-0. On motion by Ziegler, seconded by Nigro the Board voted to come out of Executive Session on a roll call vote with all members voting in the affirmative. The Board came out of Executive Ses- sion at 11: 12 p.m.