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HomeMy WebLinkAbout1999-11-01 Reading Housing Authority Minutes - Executive SessionREADING HOUSING AUTHORITY MINUTES OF THE EXECUTIVE SESSION MEETING OF NOVEMBER 1, 1999 An executive session meeting of the Reading Housing Authority was held on Monday, November 1, 1999 at the office of the Authority, 22 Frank D. Tanner Drive in the town of Reading, Massachusetts. The meeting was called to order at 8:20 P.M. with the Chairman, Mr. Sweet, presiding. Those members also present and forming a quorum were: Ms. Galvin, Mr. Allen and Mr. Kelley. Ms. Connors was not in attendance. The associate member, Ms. Flammia, was also in attendance. Representatives from Marriott, Mr. Bernardi, Mr. Dolan and their attorney, Mr. Favaloro were also in attendance for a portion of the meeting. The Authority's attorney, Mr. Greco along with the Executive Director, Ms. Plansky, was also in attendance. Upon a motion duly made by Mr. Kelley and seconded by Mr. Allen, it was VOTED: To adjourn to Executive Session for the purpose of discussing real estate matters and pending legal issues and to return to Regular session at close of Executive Session before adjourning by the following roll call vote: Mr. Allen — aye Ms. Galvin — aye Mr. Kelley — aye Mr. Sweet — aye The Chairman then declared said motion carried and said vote in effect. Marriott Corporation — Linkage for Assisted Living Facility The Chair welcomed Marriott representatives, Mr. Bernardi and Mr. Dolan and their attorney, Mr. Favaloro. Mr. Sweet gave a brief overview of the negotiations to date. The letters from the Authority to Marriott were reviewed regarding acceptable payment -in- lieu provisions for the assisted living facility. After a review of Marriott's position presented by Mr. Bernardi and Mr. Favaloro, the significant points were: • Requirements of the town and the Authority could make the project financially not feasible. • Payments would be set and not tied into an appraised or assessed value of the project. • Schedule and amount of payments to the Authority. • Marriott would not agree to a balloon payment if the project was sold. Upon a motion duly made by Mr. Kelley and seconded by Ms. Galvin, it was unanimously Page 2 Minutes — Executive Session 1 1/1/99 VOTED: To accept a $1.1 Million payment -in -lieu of units for the Assisted Living Facility to be constructed on property located on Washington Street, currently known as Spence Farm, upon the following schedule: A payment of $100,000.00 to the Reading Housing Authority within 30 days of the issuance of the Building Permit. A second payment of $100,000.00 to the days of the issuance of the Certificate of Housing Authority within 7 • A yearly payment of $100,000.00 to be paid to the Reading Housing Authority for an additional nine years based on the date of Certificate of Occupancy. The Chairman then declared said motion carried and said vote in effect. At 8:35 P.M., the Marriott representative left the meeting. Real Estate Invitation for Bids for the Acquisition of New Properties The Authority reviewed the inspections for both properties. Both inspections have listed "costs to cure" estimates. The fee for services: 82 Linden Street- $675.00 for home inspection; $465 for lead paint inspection. The fee for inspection services at 324 Haven Street — $200 for home inspection; no lead paint inspection. COST ESTIMATES TO CORRECT DEFICIENCIES 82 Linden Street P &S for $375,000; Cost estimate to correct deficiencies - $130,000 - 175,000.00 324 Haven Street P &S for $129,900;Cost estimate to correct deficiencies - $35,500- 63,500.00 At 9:30 P.M., Mr. Kelley left the meeting to attend the CPDC meeting at Town Hall to inform them of the agreement between Marriott and the Authority. Upon a motion duly made by Mr. Allen and seconded by Mr. Kelley, it was unanimously VOTED: To authorize the Executive Director to send a letter exercising the Authority's right to withdraw from the Purchase and Sale of 324 Haven Street due to the fact that the cost to cure makes the project financially unfeasible. The Chairman then declared said motion carried and said vote in effect. Page 3 Minutes — Executive Session 11/1/99 Upon a motion duly made by Mr. Allen and seconded by Mr. Kelley, it was unanimously VOTED: To authorize the Executive Director to send a letter exercising our right to withdraw from the Purchase and Sale of 82 Linden Street due to the fact that the cost to cure makes the project fmancially unfeasible. The Chairman then declared said motion carried and said vote in effect. 75 Pleasant Street — Board of Selectmen The Board met at the site on Saturday, October 30, 1999 and reviewed the property. The Director requested that the Town Manager make the building available for inspection for the Authority. Town Manager asked if the Board would be willing to buy the property outright; work with the Town for the parking lot; work with the neighbors as well. If the town could not come up with their share, would the RHA still purchase the property. He feels that it would be in the best interest of the town to get this property under some town control. Section 8 Wait List Opening — Appeal A letter from Mass. Law Reform was distributed to the Board along with the statistics of the applicant pool. The Authority's attorney reviewed the possible avenues of appeal that Mass. Law Reform could take and what the Authority's position is regarding the wait list opening. There being no further business in Executive Session at 10:15 P.M., Pon a motion duly made by Mr. Allen and seconded by Ms. Galvin it was VOTED: To adjourn from Executive Session and to return to Regular Session by the following roll call vote: Mr. Allen — aye Ms. Galvin — aye Mr. Sweet — aye The Chairman then declared said motion carried and said vote in effect. Adjourn 10:15 P.M. to regular business meeting. Respectfully submitted, 7 Ekecutive Director