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HomeMy WebLinkAbout1999-10-05 Reading Housing Authority Minutes - Executive SessionREADING HOUSING AUTHORITY MINUTES OF THE EXECUTIVE SESSION OF THE CONTINUED BOARD MEETING OF OCTOBER 4, 1999 HELD ON OCTOBER 5, 1999 The Executive Session meeting of the Reading Housing Authority was convened at 5:05 P.M. on Tuesday, October 5, 1999 at the office of the Authority, 22 Frank D. Tanner Drive in the town of Reading, Massachusetts. The meeting was called to order. 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. The Authority's attorney, Mr. Greco as well as Mr. Barnes from Reading's Community Planning and Development Commission and Ms. Anthony from the Board of Selectmen were also in attendance. Representing Marriott Corporation was Mr. Lino Bernardi, Mr. Dolan and their attorney, Mr. Favaloro. 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 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 — Necotations for Linkage Requirements The Chairman gave an overview of the negotiations to date so that everyone present would be familiar with the process. The Chair stated that until recently things were progressing smoothly but an impasse has arisen over the appraised vs. assessed value to determine the payment in lieu by Marriott. The Chair stated that the Board reviewed what has transpired and felt that they had gone too far astray from the requirements as imposed by the by -law. At this point, the Board would either entertain that 10% of the units be set aside or that the payment in lieu provision must meet the intent of the by- law to provide cash to provide these units. Mr. Bernardi stated that Marriott's position had always been to provide a cash payment. It was never Marriott's intention to provide units as this would be not be economically feasible for such a project. W Aernardi reviewed his proposals to date stating that every project must stand alone aovide a reasonable return on investment. If this Page 2 10/5/99 Minutes -Exec Session project was not able to produce this value, then the project would not go forward. The discussion centered on the appraised valuation and the assessed valuation. When questioned as to why Marriott was so insistent, it was clear that the assessed value would most probably be less. The Board stated that this was a problem for the Authority. They could only negotiate to the extent that the dollar value is equal or representative of the value of the units. This is irrespective of Marriott's bottom line mquirinjurnt as it is a requirement of the zoirhig by-law. Mr. Bernardi and Mr. Favaloro stated that their presentation to Town Meeting was always that a payment would be made in lieu of actual units. Their view was that this payment did not have to be equal to the value of the units. Mr. Barnes questioned the Marriott representatives. He felt that he had been involved with the process from the start and had his view of the proceedings which differ significantly from Marriott's presentation to the Authority. Mr. Barnes stated that the housing authority must get what is required by the statute irrespective of whether this satisfies Marriott's bottom line. It was Mr. Barnes view from both CPDC and Town Meeting that the town was entitled to either 10% of the units or an equal cash equivelant value. Mr. Bernardi stated that Marriott might be able to go to $1.1 Million over 10 years starting with the issuance of the Certificate of Occupancy. He would have to present this to his financial committee for their approval. He was sure that this project would not sustain a $1.4 million payment and the project would be stopped. Mr. Bernardi stated that this payment was unusual and far above anything Marriott had ever done before. The Chair asked Mr. Bernardi about the Littleton project and their $1.3 Million donation to that system. Mr. Bernardi denied that Marriott was paying such amounts and would be happy to furnish the particulars to the Board. The Board thanked the Marriott representatives and told them they would contact them about their final position. The Board, Mr. Greco, Mr. Barnes and Ms. Anthony continued discussion on what the parameters for negotiation would be. The Board presented the present dollar value for delayed payments if allowed to be paid at CO instead of at issuance of the building permit. Upon a motion duly made by Mr. Allen and seconded by Ms. Connors, it was unanimously VOTED: To authorize the Chair as their first offer to offer Marriott Corporation a Page 3 10/5/99 Minutes -Exec Session proposal to accept a cash payment in lieu of actual units which would total $1.25 Million. The first payment of $62,500.00 would be paid at the issuance of the Building Permit; the second payment of $62,500.00 would be paid at the issuance of the Certificate of Occupancy. Thereafter a payment of $125,000 would be made annually for 9 years based on the anniversary date of the certificate of occupancy. The Chairman then declared said motion carried and said vote in effect. Upon a motion duly made by Mr. Allen and seconded by Mr. Kelley, it was unanimously VOTED: To authorize the Chair to offer as their second choice to Marriott Corporation a proposal to accept a cash payment in lieu of actual units which would total $1.1 Million. The first payment of $100,000.00 would be paid at the issuance of the Building Permit. Thereafter a payment of $100,000 would be made annually for 9 years based on the anniversary date of the issuance of the building permit. The Chairman then declared said motion carried and said vote in effect. Upon a motion duly made by Mr. Allen and seconded by Mr. Kelley, it was unanimously VOTED: To authorize the Chair to offer as their third choice to Marriott Corporation a proposal to accept a cash payment in lieu of actual units which would total $1.1 Million. The first payment of $50,000.00 would be paid at the issuance of the Building Permit; the second payment of $150,000.00 would be paid at the issuance of the Certificate of Occupancy. Thereafter a payment of $100,000 would be made annually for 9 years based on the anniversary date of issuance of the certificate of occupancy. The Chairman then declared said motion carried and said vote in effect. There being no further business before the Board, upon a motion duly made by Mr. Allen and seconded by Ms. Connors, 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 Page 4 10/5199 Minutes -Exec Session The Chairman then declared said motion carried and said vote in effect. At 7:50 P.M. the Board reconvened in regular session. Respectfully submitted, Margaret . lanky, Se and Execu ive Director