Loading...
HomeMy WebLinkAbout1996-05-20 Board of Selectmen Executive Session Minutes i Board of Selectmen Meeting Executive Session May 20, 1996 The meeting convened at 8:00 p.m. in the RMLD Conference Room, 230 Ash Street, Reading, Massachusetts. Present were Chairman Sally Hoyt, Secretary Camille Anthony, Selectmen Dan Ensminger and Bruce MacDonald, Town Manager Peter Hechenbleikner, Town Counsel H Theodore Cohen and Vice Chairman George Hines arrived at 8:10 p.m. Also present were Reading Municipal Light Department Chairman Allan Ames, Vice Chairman Bill Hughes, members Phil Pacino and Dave Swyter, General Manager Len Rucker, Special Projects Coordinator Jim Bloomley, RMLD Counsel Ken Barna and Robin Daniels and Secretary Rose Mitchell. Mr. Ensminger spoke about his concerns regarding a previous breach of information from a previous Executive Session. The Town Manager gave the background of where we are. At the last joint meeting in Executive Session by the RMLD Board and the Board of Selectmen, the General Manager, the Town Manager and Counsel for the RMLD and the Town were directed to discuss with the purchasers, PJC, what their true intent was and to see if we could negotiate a deal. Following that, there was a meeting with RMLD staff and Counsel with Town staff and Counsel. There was then a meeting held with PJC Realty Trust. At that meeting, PJC Realty Trust was represented by Counsel, by Peter Schmitz, and by the Massachusetts Environmental Consultant. PJC Realty Trust made it clear that they wanted to stay with the deal, but also that they would not accept an activities and use limitation (AUL) for the property. Subsequently, the Board of Selectmen had an Executive Session which Mr. Rucker attended. The Board discussed the issue of extension of the Purchase and Sales agreement, and it was agreed by all parties that it would be extended until June 14, 1996, allowing time for the Light Board and the Board of Selectmen to meet and see if there was common ground between the two of them. Bruce MacDonald noted that the site is publicly known as being contaminated. If Brooks walks out on the deal, RMLD may have cause to clean up anyway and the future user may be less desirable. He asked if we could discuss a three way arrangement where the costs would be between $5,000 and $30,000 to clean up the site. The cost would be shared by RMLD, the Town and PJC Realty. Camille Anthony asked where the break-even point is. When does it become ridiculous in terms of costs of legal, marketing, keeping the building operating at .a cost of $1,500 per month, compared to the clean up cost. She noted that the Light Board and the Town don't have the same issue. She hoped that if this was another community within the RMLD area, the RMLD would be listening to the Town regarding issues of Downtown development and would try to make this work. She feels that we should try to make this sale work if possible. Board of Selectmen Meeting -May 20, 1996 - page 2 Allan Ames noted that the Reading Municipal Light Board gave the Manager the authority to extend the existing deal. He noted that the Light Department had made full disclosure of the tank leak to Brooks, and had a due diligence period. He feels that there is nothing that PJC will agree to. Acceding to PJC's wishes would be for the RMLD to "buy a pig in a poke". Dan Ensminger asked if it's the Light Department's impression that PJC has left the deal. Pacino said yes. Cohen agreed. The extension has been granted in order to keep the deal alive. The lawyer for PJC and Town Counsel have discussed the mechanics of the extension, or of their walking away from the deal, and clearly they have not walked away from the deal. Phil Pacino noted that he has a lot of frustration with this project. The Task Force made a recommendation, and they were "run over". Members of the Task Force feel the same way. He asked where the "line in the sand is". If it is only $40,000 then he as a member of the Light Board would consider spending that kind of money to make this deal work. Ensminger noted that if we don't sell, we are under a legal requirement to clean up the site. Robin Daniels noted that if we don't sell it, we will do an activities and use limitation and response action statement at a cost of$5,000 or less. The property would then be available to be conveyed with an activities and use limitation which is a deed restriction on a portion of the property. Ames asked if there is some standard of clean up. Daniels noted that PJC has not told us what that standard would be although the Town has tried to get that information. She feels PJC will come back to the Town in August with a standard of clean up which the Town may or may not agree to. Barna noted that we haven't established a standard yet, and he thinks that PJC will drag this deal out as long as they can. Cohen noted that we have to accept what PJC says - if they won't accept an activities and use limitation. The Engineer has not established an acceptable standard. An activities and use limitation would cost under $5,000. The level 3 risk assessment would cost $15,000 - $20,000. Full clean up appears to be in the order of$30,000 - $40,000. The Town and the RMLD have never communicated a range of cost and cost sharing. He noted that we have a buyer in hand and it took a long time to find one. Perhaps we should explore this one last chance and place limitations on what is done and how much the parties would have to pay. Dave Swyter noted that the Town is working on a political level regarding the need for retail space, and the RMLD is working on a business level. Dan Ensminger took exception to this. He feels that the Town is working in the best interest of the community. He asked for confirmation that the objective is to sell the property for the greatest net gain - and that we should take indemnification off the table. Camille Anthony noted that the value of the land will go down if the clean up is not done. Dan Ensminger asked what the clean up standard is and how it is determined. It was noted that this is a matter of negotiation. Ken Barna noted that he doesn't think that we are close to a deal at all. Dan Ensminger asked if the property value will decline by more than $5,000 if we do an activity and use limitation. It was felt that it probably would. Ted Cohen suggested that the Town could pay up to 1/3 of the total cost not to exceed $10,000 and the RMLD could do the same. If PJC chooses to just do the i i Board of Selectmen Meeting-May 20, 1996 - page 3 AUL, then each party would pay 1/3 of the cost of that. If the clean up is more, then each party would pay 1/3 of that up to a maximum of$10,000 for the Town and $10,000 for the RMLD. There would be no indemnification by the Town. Rucker asked for clarification as to whether or not the Town would expect the RMLD to reimburse the Town and it was noted that this was not the proposal. George Hines noted that if all parties are willing, then we should establish a short deadline to respond. There should also be a condition that the Town of Reading will have to go to FinCom for funding. Ken Barna noted that PJC should hear a firm statement from the Board of Selectmen, and it was suggested that a joint letter signed by the Chairman of the two bodies should be sent. Cohen noted that PJC is suppose to be doing engineering work, but they probably will not be doing it now. On motion by MacDonald seconded by Ensminger, the Board directed that a joint letter be drafted from the RMLD Chairman and the Chairman of the Board of Selectmen offering to reimburse for 1/3 of the cost of the clean up at the site, not to exceed $10,000, subject to FinCom approval, and without any indemnification. A response will be requested by June S, 1996. This is the farthest extent to which the Board of Selectmen is willing to go and the initial offer in the joint letter will be somewhat less. On a roll call vote, the members of the Board of Selectmen approved a motion by a unanimous vote. The RMLD made a similar motion and approved it unanimously. On motion by Hines seconded by Anthony, the Board of Selectmen voted to adjourn at 9:30 p.m. on a roll call vote with all five members voting in the affirmative. Respectfully submitted, Secretary