1990-02-20 Board of Selectmen Executive Session Minutes

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Minutes of the Board of Selectmen Meeting Executive Session February 20, 1990 Section 2 The meeting convened at 7:36 p.m. in the Selectmens Meeting Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman Graham, Vice Chairman Ziegler, Selectmen Nigro and Russell, Town Counsel Ron Kaczynski, CPDC member Richard Howard, Assessor Robert Nordstrand, Public Works Director Tony Fletcher, and Town Manager Pete Hechenbleikner. On motion by Nigro, seconded by Ziegler the Board voted to go into Executive Session for the purpose of real estate nego- tiations. All four members voting in the affirmative, the motion passed by a vote of 4-0-0. The Board discussed Bear Hill, which is the subject of a separate set of minutes. Ron Kaczynski brought the Board of Selectmen up to date on the Homart deal. He indicatd that Homart is looking to get out of additional financial commitments over and above the 6.25 million dollar purchase price. They have a commitment from their financ- ing committee for $12,000,000, and need another $6, 000, 000. The uses that Homart wants to get out of are - 1) to have no inter- est paid to the Town on the indemnification money being held by Homart - 2) to not pay a CPI escalator such March of 1988 - 3) to eliminate the late start penalty. After considerable discus- sion, all present agreed that the primary direction will be to get the deal closed for the 6.25 million dollars. The Town will hold out for the CPI escalator and try for a May closing. We will try also retain the other two pieces of the deal, but the interest on the indemnification fund would be the first thing to be given back, and the late start penalty next. We will also look at the possibility of profit sharing - i.e. have the CPI or other elements paid to the Town at a later date if the project turns out well - i.e. perhaps after the second building is con- structed. Ron Kaczynski will discuss these issues with John Seeley and try to negotiate the best deal possible. As needed, the negotiating committee will consist of Russell, Graham, Hechenbleikner, Flet- cher, Kaczynski, Nordstrand and Howard. On motion by Russell, seconded by Ziegler the Board voted to come out of Executive Session and adjourned at 8;55 p.m. by a vote of .4-0-0 on a roll call vote all members voting in the affirmative. Respectfully submitted: P Secretary