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HomeMy WebLinkAbout1995-08-07 Reading Housing Authority Minutes - Executive SessionREADING HOUSING AUTHORITY Minutes of the Executive Session of August 7. 1995 A regular business meeting of the members of the Reading Housing Authority was held on Monday, August 7, 1995 at 7:30 P.M. at the office of the Authority, 22 Frank D. Tanner Drive in the Town of Reading, Massachusetts. The meeting was called to order at 7:30 P.M. with the Chairman, Mr. Sweet, presiding. Those members present and forming a quorum were: Mr. Reynolds, and Mr. Allen. The Executive Director, Ms. Plansky, was also in attendance as well as the Authority's attorney, Mr. Greco. At 8:00 P.M. members of the Reading Housing Partnership: Mr. Kelley, Mr. Coots, and Mr. Barnes joined the Board for discussion of negotiations for Bear Hill. At 8:40 P.M., Mr. Dolben and his attorneys, Mr. Lye and Mr. Latham met with the Board in Executive Sessio 1 to discuss matters relative to the "linkage" units associated with the Bear Hill development. Executive Session At 8:00 P.M., members of the Reading Housing Partnership joined the Board to discuss the relative to the linkage units and the lottery process for the Bear Hill development. Upon the following roll call vote, the Board unanimously VOTED: To adjourn to Executive Session for the purpose of discussing real estate matters associated with the Bear Hill development and to return to Regular Session at the end of the negotiations. Mr. Allen - aye Mr. Reynolds - aye Mr. Sweet - aye The Chairman then declared said motion carried and said vote in effect. Mr. Sweet gave a brief presentation of the negotiations to date to the members of the Partnership. He explained that the Board tried to negotiate the specifics of the deal while allowing the devel per some flexibility. At the May meeting, the Board voted to allow only 4 terrace units for "affordable" housing. Subsequent to a meeting of the Partnership, the Executive Director requested specific locations, layouts, market prices and marketing plan for the development. At this point, Mr. D Then stated that all affordable units would contain only one bathroom. The Board had allowed the units not to be representative and had granted permission for all linkage units to contain 2 bathrooms. Mr. Dolben unilaterally proposed this change and that the Board would be meeting with the principals to discuss these issues. The Partnership presented their concerns regarding the lottery system, the deed restriction and selection process. The Board informed the Partnership that the letter from Secretary Padula had just come and EOCD had denied the Authority's request for a waiver from the sales price and the income qualifications for this development. At 8:40 P.M., Mr. Dolben and his attorneys joined the meeting. Mr. Sweet stated the concerns of the Board that the affordable units would be like kind and like value to the market rate units; that the 2 bedroom units from our negotiations had always been with 2 bathrooms. Mr. Sweet stated that the Board felt that it was critical at this juncture to define and clarify where every affordable unit would be located; the proposed layout and square footage; and to have a representative drawing of th critical elements of the units. Mr. Sweet continued that the Board tried to allow flexibility for the developer but this has now presented a major difficulty in the negotiations. Page 2 8/7/95- Minutes EXEC SESSION Mr. Dolben gave the overview of the development: 10 buildings: 6 with 14 units; 4 with 12 units 2 different building types 9 different floor plans Mr. Dolben offered the following proposal for the required 13 linkage units: 9 units - "A" style 2 units - "G" style 2 units - "H" style Mr. Dolben said that his marketing plan called for a 5% discount for pre - construction sales. When questioned further, Mr. Dolben stated that the units would be sold with discounts at $134,900. Bear Hill Limited Partnership will be marketing the units from a sales trailer on the site. Mr. Dolben's proposed constructions schedule is 4 -6 weeks away and is estimated to be: 9/1/95 - site work commences ,foundation permit is issued immediately upon transfer of ownership building permit within 30 days Delivery schedule for buildings is anticipated to be Building 1, which is closest to Hopkins Street, will be first building constructed. Other buildings will be constructed on marketing information and the project is estimated to be fully built -out in 18 months; fastest would be 12 months and longest is estimated to be 24 months. The Board reviewed the plans and layouts brought by Mr. Dolben. The Board then gave their acceptable alternatives: - representative units - reduced prices for 1 bath units At. 10:10 P.M., the Chairman called for a recess of ten minutes so that the two sides could discuss their concerns in private. The Board felt that the current offer was not acceptable and would negotiate a reduced price or representative units. Mr. Dolben and his attorneys caucused during the recess and when the Board reconvened, he presented the following offer: Add 1/2 bath to 3 "A" style units taking the additional area from balcony as there was no way to redesign. Board rejected this offer as taking the balconies for the additional 1/2 bath would make the affordable units "distinguishable" withing the development. At 1 0:40 P.M., the Chairman requested that Mr. Dolben and his attorneys allow the Board time to discuss this offer. The Board reviewed the offer and rejected it. They discussed the parameters for an acceptable offer and the Partnership felt that if the price of the 1 bath units could be reduced, it would allow a person with a lower income to qualify to purchase these units. The Board agreed to make the f I1 0 owing counter - proposal: 13 units of affordable housing: 11 10 units with 2 BR: (2 with garages) 3 units with 3 BR: (2 with garages) Page 3 8/7/95 -Min tes EXEC SESSION units for sale; 2 donated to RHA, as follows: 5 @ 2BR, 1 B at $99,900 ( "A" Units) 2 @ 2BR, 1.513 at $108,000 ( "C" Units) 2 @ 2 BR, 2B at $108,000 ( "E" or "G" Units) 1 @ 2 BR, 2B donated to RHA ( "E" or "G" Unit) 2 @ 3BR, 2B at $127,000 ( "H" Units) 1 @ 3BR, 2B donated to RHA ( "H" Unit) Mr. Sweet reconvened all parties and made the counter proposal. Mr. Dolben said that this acceptable. proposal. (At this point is when I think that Mr. Dolben made the 9 "A" style units to contain 1.5 baths - would be distinguishable) Upon a motion duly made by Mr. Allen and seconded by Mr. Reynolds, it was unanimously VOTED: To approve the following scheduled for the require 13 linkage units of housing with Bear Hill development at the following price schedule: 13 units of affordable housing: 11 units for sale; 2 donated to RHA, as follows: 10 units with 2BR: 5@21311, lB at $99,900 ( "A" Units) (2 with garages) 2 @ 2BR, 1.513 at $108,000 ( "C" Units) 2 @ 2 BR, 2B at $108,000 ( "E" or "G" Units) 1 @ 2 BR, 2B donated to RHA ( "E" or "G" Unit) 3 units with 3 BR: 2 @ 3BR, 213 at $127,000 ( "H" Units) (2 with garages) 1 @ 3BR, 213 donated to RHA ( "H" Unit) Mr. Allen - aye Mr. Reynolds - aye Mr. Sweet - aye The Chairman then declared said motion carried and said vote in effect. Mr. Dolben stated that this was not something that he could accept. The Executive Director requested to work with Mr. Greco on the details concerning these negotiations. not There being no further business in Executive Session, it was unanimously voted to return to regIular business meeting at 11:00 P.M. by the following roll call vote: Mr. Allen - aye Mr. Reynolds - aye Mr. Sweet - aye Re ectfully submitted, Margar . Plans ,Secretary and Executive Director