HomeMy WebLinkAbout1999-03-02 Board of Selectmen Executive Session Minutes Board of Selectmen Meeting
Executive Session
March 2, 1999
The Executive Session convened at 7:10 p.m. in the Conference Room, 16 Lowell Street,
Reading, Massachusetts. Present were Vice Chairman Sally Hoyt, Secretary Matthew Nestor
(arrived late), Selectmen Camille Anthony and George Hines, Assistant Town Manager Russell
Dean, Town Counsel H Theodore Cohen and Paula Schena.
Sale of Real Estate
Assistant Town Manager Russell Dean brought the Board up to date on the Letter of Intent
between Corporex and the Town of Reading.
Camille Anthony asked about linking the sewers with the lease, and George Hines noted that
would be part of the review by CPDC.
George Hines noted that in Paragraph 1 on Page 2 the words "to you" should be Corporex for
clarification purposes.
Russell Dean noted that 600,000 square feet would be the maximum use. The term would be for
99 years with the option of two 50 year extensions.
Town Counsel noted that there would be three lump sum payments equaling $1.5 million which
will be broken down and payable when the building permits are issued.
Sally Hoyt asked if it was legal to tax the leasee. Town Counsel indicated that he has checked
with the Department of Revenue and yes, it is legal. Corporex will be responsible for taxes and
all operating expenses.
Corporex will have the right of first refusal on an option to purchase.
Russell Dean noted that Corporex will close and monitor. They will pay $4 million to close and
$40,000/year to monitor. They will provide a$5 million environmental liability insurance policy
which includes puncturing of the cap.
The Town will cooperate with Corporex in applying for grants related to the project at the site.
Off-site improvements are still being worked out at this point. The Town can temporarily use the
site for storage.
Town Counsel noted that regarding insurance and indemnification, Corporex must indemnify the
Town but Corporex wants us to indemnify them. This issue is being worked on.
Russell Dean noted that regarding subleasing, Corporex will be allowed to sublease but if the
sublease is financially viable, then Corporex wants to be released from the lease.
Board of Selectmen Meeting—Executive Session—March 2, 1999—Pa2e 2
Matthew Nestor noted that Corporex cannot be released, they must be responsible. If the
subleasee goes bankrupt, then the Town is left with nothing. Corporex is asking that this be
automatic. If the Town cannot enforce the lease, then the lease is worthless. The Board agreed
that this is a deal breaker.
Town Counsel noted that if the leasee or the subleasee were to go bankrupt, then the land and
buildings would revert back to the Town. Russell Dean noted that it has been their intention to
sublease from day one. Matthew Nestor agreed but noted that we have to keep Corporex in the
loop. Town Counsel noted that someone has to be obligated. Matthew Nestor noted that if they
break down into subsidiaries, then we will be dealing with three separate entities. Camille
Anthony noted that all three would want to renegotiate the agreement and it would be a
nightmare. She can understand the subleasing but not letting Corporex out altogether.
On motion by Anthony seconded by Hines, the Board voted to adjourn their Executive Session
Meeting of March 2, 1999 at 7:45 p.m. On a roll call vote, all four members voted in the
affirmative and the meeting was adjourned.
Resp ctfully submitted,
,cretary
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