HomeMy WebLinkAbout1990-03-27 Board of Selectmen Executive Session Minutes Minutes of the Executive Session - Section I
Board of Selectmen Meeting - March 27, 1990
The meeting convened at 7:06 p.m. Present were Selectmen Russell
Graham, Eugene Nigro, George Hines, Sally Hoyt, Dan Ensminger,
Town Counsel Ronald Kaczynski, former Selectman Jack Russell, As-
sessor Bob Nordstrand, Town Manager Peter I. Hechenbleikner, and
John Seely and John Rousseau from Homart. John Rousseau, speak-
ing for Homart, indicated that they are very strong on the
project in Reading, but the rental market has gone down $5. 00 per
square foot in the last year. The net effective rent has gone
from $20.00 per square foot to $15.00 per square foot. The ac-
quisition of this site is 250 of the site-ready costs. The total
cost is $18-20 million, which includes land acquisition, off-site
and on-site construction, compaction, closing the landfill, etc.
By D.E.P. 's approval, they can't build until the entire site is
closed. This means the expenditure of the full development costs
up front. During the last year, after the hotel left and market
problems developed, Homart began to look for a financial partner
and they have come up with one institutional partner. They still
feel that the site is a good one. The location is excellent, the
development concept is good and they believe in the long-term
health of the area. Homart indicated that they currently have a
September "drop-dead date. " They want an extension until Septem-
ber, 1991, although they may not need all of that time. They
want to start an aggressive marketing campaign.
Pete Hechenbleikner asked about a phased purchase--i.e. , can they
purchase the front part of the site for $1.5 - 2 million, which
would help the Town with its FY1992 financial problems, and then
agree to close the project in its entirety by September, 1991.
There are potential D.E.P. problems with that concept, but Homart
is willing to go back to D.E.P. and see if they can get approval
for a phased closing. They will work with Tony Fletcher to find
out what they can do on this. The permit from D. E. P. is not
issued. There is a paperwork blockage. D.E.P. agrees that the
18-month time clock for closing the landfill would not start un-
til Homart had closed on the project. If D.E.P. would permit a
phased landfill closing, Homart would be amenable to purchasing
in phases. Homart indicated that within two to three weeks, they
need to know what their time frame will be, i.e. will the Town
insist on the September, 1990 closing date, in which case Homart
will have to evaluate its options, or will the Town extend.
Jack Russell asked about a 25% down payment on extension for the
closing. This would be non-refundable and able to be used by the
Town. Homart indicated that their proposal was a $0. 25 million
"down payment on a non-refundable basis. " They will get back to
us by the end of the week as to whether or not they could in-
crease the amount of that down payment.
On motion by Ensminger, seconded by Hoyt, the Board voted to ad-
� J ourn the Executive Session until the end of the regular
Selectmen's Minutes - Executive Session I -3/27/90 - Page 2
Selectmen's Meeting. All five members, voting on a roll call
voted in favor of adjournment at 8:15 p.m. The motion carried
and the Board went into open session.
Res ectfully s mitted,
Secr ary