HomeMy WebLinkAbout1993-07-12 Reading Housing Authority Minutes - Executive SessionREADING HOUSING AUTHORITY
Minutes of Executive Session on Julv 12, 1993
The Board convened in Executive Session at 8:00 P.M. with the following
people present:
Mr. Mc, Isaac, Chairman, Reading Housing Authority
Ms. Galvin, Mr. Reynolds, Mr. Allen, Reading Housing Author ty
Mr. Greco, attorney for Reading Housing Authority
Ms. Plansky, Executive Director, Reading Housing Authority
The Board discussed the proposals presented by Locus Propertie and
their strategy and parameters for negotiations in this session
At 8:15 P.M., the Board asked the interested parties to join them
in the Executive Session. Those joining the Board at this time were:
Mr. McNeil, President Locus Property Management
Mr. Kouchalakas, Locus Property Management
Mr. Harrington, attorney for Locus Property
Mr. Ted Regnante, attorney for North Shore Holdings /Eastern Bank
Mr. Harrington recapped the options presented in the letter from
Mr. McNeil regarding the ownership of the linkage units.
Mr. McIsaac restated the Board's position as per the last proposal
with the exception of rescinding the requirement that Locus acquire
an interest free mortgage for the Authority using bank CRA cre its.
The Board explored various other options for the.linkage requirements
within the confines of the Special Permit. Mr. Regnante, representing
North Shore Holdings and Mr. Ferrara from Eastern Bank stated that
Eastern Bank has no plans for financing of this project.
At 10:55 P.M., the Board thanked Mr. McNeil, Mr. Kouchalakas, Mr.
Harrington and Mr. Regnante and Mr. Ferrara for presenting their
input. The Board assured the group that a decision as to what would
be acceptable to the Board would be forwarded within the next day
or two.
After discussions of the various options, and upon a motion duly
made by Mr. Allen and seconded by Mr. Reynolds, it was unanimously
VOTED: To revise the proposal for the linkage by:
1) Removing the contingency in their June 23, 1993 transmittal letter
requiring that Locus obtain "no interest financing for ten ears
by the bank (or something comparable to maximize CRA credit );
2) The developer will not be required to take a mortgage for the
linkage. However, if the developer feels that he would likE to
negotiate terms and conditions that were favorable for the Authority,
the Authority would allow the developer to retain this option.
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Executive Session /CONFIDENTIAL
3) If the Authority could find a bank willing to assume the legal
and transfer costs, the developer would be freed of this obligation.
The Authority will make reasonable efforts in finding such assis ance.
4) In lieu of cash payment from the developer towards the second
property, the Authority would be willing to accept an equal valu
offset against the second house at 505 Summer Avenue in the Town
of Reading.
As a option, to be given only at the time of critical failure, the
Executive Director was allowed to negotiate to assume one property
"as is ", with the exception that a deleading certificate for both
the interior /exterior be obtained.
The Chairman then declared said motion carried and said vote in effect.
There being no further business in Executive Session, the Board unanimously
voted to return to regular session at 11:25 P.M.
Respectfully submitted
Marga K. Plansky, Secret
and xecutive Director