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HomeMy WebLinkAbout1999-10-04 Reading Housing Authority Minutes - Executive SessionREADING HOUSING AUTHORITY MINUTES OF THE EXECUTIVE SESSION MEETING OF OCTOBER 4, 1999 The Executive Session meeting of the Reading Housing Authority was held on Monday, October 4, 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 8:30 P.M. with the Chairman, Mr. Sweet, presiding. Those members also present and forming a quorum were: Ms. Connors, Ms. Galvin, Mr. Allen and Mr. Kelley. The Executive Director, Ms. Plansky, was also in attendance along with the Authority's attorney, Mr. Greco and Mr. Nordstrand from the Reading Board of Assessors. Upon a motion duly made by Mr. Allen and seconded by Mr. Kelley, 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 the close of Executive Session by the following roll call vote: Mr. Allen — aye Ms. Connors —aye Ms. Galvin — aye Mr. Kelley - aye Mr. Sweet — aye The Chairman then declared said motion carried and said vote in effect. Marriott Corporation — Assisted Living Linkage Requirement The Chairman outlined the problems that the negotiations were having. The agreement seemed to be proceeding smoothly until Marriott Corporation refused to agree to the linkage requirement being based upon appraised vs. assessed value of the property. The requirements of the Assisted Living Facility zoning by -law require that 10% of the total units be affordable to very -low income, low - income, and moderate income families and/or elderly households or if acceptable to the Authority with input from the Community Planning and Development Commission, this requirement could be satisfied by a cash payment in lieu of the actual affordable units. Mr. Nordstrand outlined the process by which an assessment and an appraisal is determined for a property. A valuation can be made by fixing a value on the income stream as it is fully completed and fully occupied. This stabilized occupancy would give a fair market appraisal based on income stream. An appraised value has a tendency to be lower because it is looking back about 18 months. If an accurate', evaluation of the value of the property is to be made, it can be done by a specific date and time based on stabilized occupancy. This would be a fair way to determine the actual market value of the property. Another approach to determine value suggested by Mr. Nordstrand would be to perform an income stream approach using two different values: one with 100% of the Page 2 10/4199 Minutes -Exec Session units at market rate; the other with 10% of the units as affordable, excluding some soft costs for marketing, etc. The difference in the two values would be an income stream that Marriott could be required to pay annually in perpetuity to the Authority. Mr. Nordstrand elaborated on the problems of using an assessed value to determine the payment in, Dieu amount. The assessed value which is placed on the property could be challenged by the developer to the Appelate Tax Board. This could lead to delays and Authority. He expressed his belief that the Board has an obligation under the zoning to require a fair and equitable payment in lieu of actual units. He was especially pleased to know that both CPDC and the Selectmen were supportive of the Authority's position. Mr. Nordstrand offered his opinion that this payment in lieu could be an agreed upon amount between Marriot and the Authority or the Authority could calculate a dollar amount to be paid by Marriott annually in perpetuity based upon the difference in the 2 income streams. The Board thanked Mr. Nordstrand for his information and help in this regard. The Board reviewed the report distributed by the Executive Director in this regard. Purchase and Sales Agreements —Linden Street and Haven Street Mr. Greco reviewed the Purchase and Sales Agreements for the two properties: 82 Linden Street owned by Mr. Richards with a purchase price of $129,900.00; and 324 Haven Street owned by Mr. Graves with a purchase price of $375,000.00. Both of these P &S agreements have deadline dates by which the Authority must perform certain actions or risk losing their deposit. The attorneys have agreed to give us an extension. A reasonable period would be an additional 10 days added to all deadlines. As the property at 82 Linden Street is non - conforming, the Authority would have to file an application with the Building Inspector. If the application is denied, we would have to file with the Zoning Board of Appeals and this would require the support of the Selectmen. The ZBA would then issue a determination. The Authority also has strict requirements on filing for mortgages on both properties. We have already been in contact with Reading Cooperative Bank and they are willing to sign a mortgage commitment. The Board requested that the Executive Director proceed with the Board's vote and. sign the P &S agreements. The home inspections will be scheduled and pending the results we would then proceed with the purchase and other requirements. Personnel The Authority has received a letter from Mr. Nicholls attorney regarding his workmen's compensation claim. The last date Mr. Nicholls is on the payroll is October 13, 1999. Page 3 10/4/99 Minutes -Exec Session If he does not return to work, the Authority can declare the position vacant and fill the position. Upon a motion duly made by Mr. Allen and seconded by Mr. Kelley, it was VOTED: To adjourn from Executive Session and to return to Regular session by the following roll call vote: Mr. Allen — aye Ms. Connors —aye Ms. Galvin — aye Mr. Kelley - aye Mr. Sweet — aye The Chairman then declared said motion carried and said vote in effect. The Board reconvened in regular session at 9:40 P.M. Respectfully submitted, Marg t . Plansky, Secretary and Executive Director