Loading...
HomeMy WebLinkAbout1990-10-09 Board of Selectmen Executive Session Minutes Minutes of the Board of Selectmen Executive Session October 9, 1990 Session 1 The meeting convened in Executive Session at 7: 03 p.m. Present were Chairman Russell Graham, Vice Chairman Dan Ensminger, Secretary George Hines, Selectmen Sally Hoyt and Eugene Nigro, Town Manager Peter Hechenbleikner, Town Counsel Ron Kaczynski, Chairman of the Board of Assessors Robert Nordstrand,-;.John Rous- Beau and John Seely from Homart. John Seely indicated that they were present to seek an extension of the purchase and sales agreement for one year. The real es- tate market is soft nationally except for California, and rents are soft. These circumstances are beyond the control of Homart and the Town. Homart has spent approximately 4.9 million dollars on the Reading project to date, $4 million of it on outside con- sulting fees etc. There is a limit on the amount of money that can be spent without having tenants in place. They feel that the economy will be back fairly quickly. They have worked hard to deal with the neighbors' issues and have marketed to different projects as they have come along such as Lotus. Homart is not able to spend additional monies for the extension of time, be- cause of the costs put into the projects to date and the cost in- volved for land fill closure. Homart indicated that if they don't get an extension they won't be able to continue to market the project. John Rousseau indicated that Homart has made formal -, presentations to top 10 major brokerage houses in the region. It is their experience that every major corporate tenant is repre- sented by a major broker and they have made presentations for 20- to 30-thousand square feet projects and greater. Rents have dropped approximately $5 per square foot in this type of marketplace. Everybody they have marketed to likes the location. In addition, Homarf nationally is a good contact for marketing since they market =nationally to a number of national firms . Homart has very little going on nationally. George -Hines` 'indicated that the Town needs to see some commit- ments from Homart. He indicated that things will be worse with the CLT petition, and that Homart will obviously have to spend some additional money on renewing permits. He indicated that it seems like all the consultants are making money and the Town is not. What happens at the end of the extension? John Seely responded that every additional dollar into the project creates more difficulties in terms of cash flow. The market sets the rents - not Homart. He felt they can't go further in costs without jeopardizing the project. They even looked at giving the deposit to the Town at this time, but they are not able to do that. With regard to using the Homart site for treating contaminated soil from the former Department of Public Works site, Homart doesn't have a problem with that as long as they avoid any addi- tional environmental process. Dan Ensminger asked about the hotel marketing. Homart indicated that the market for hotels right now is not positive. They want Executive Session Minutes - 10/9/90 - page 2 an upscale product. They have dealt with a number of hotel brokers on a national basis. Mr. Seeley indicated he felt that Homart could probably come up with the $20,000 for the traffic study at this point. At 8: 05, John Rousseau and John Seeley left the meeting. The Board reviewed with Bob Nordstrand what suggestions he would have . These include: 1. That the Town get a marketing plan and a quarterly progress report on marketing. 2. That the drainage easement be worked on between Homart and the Town. 3. That the Town would work with Homart regarding the phased land fill closure. 4. That repermiting proceed. 5. That Homart will come up with $20,000 far the traffic study. On motion by Nigro seconded by Hines the Board voted to adjourn the Executive Session at 8:15 p.m. with all five members voting in the affirmative. Respectfully submitted: Secretary Minutes of the Board of Selectmen Executive Session October 9, 1990 Session 2 The meeting convened at 10:55 p.m. in the Conference Room at Town Hall. Present were Chairman Graham, Vice Chairman Ensminger, Secretary Hines, Selectmen Nigro and Hoyt, Town Manager Hechenbleikner. The Board voted to authorize Town Counsel to draft axe -extension of the Homart agreement for one year subject to the following conditions. 1. Homart will donate $20,000 to the Town-wide traffic study immediately. 2. Homart and the Town will jointly work to take care of the drainage easement. 3. Homart will ap?ly for the renewal of all permits. 1 4. Homart and the Town will jointly push for approval of the phased closure. 5. Homart will present a marketing plan and will make quarterly progress reports on the marketing strategy. 6. Homart has no objection to the Town using the site for treatment of contaminated soil from the former Department of Public Works facility, provided that this will not create any further environmental problems on the site. 7. A one-year 'extension to 9/3/91 will be granted. 8. The Board of=_Selectmen will support the extension of all permits. A motion incorporating all these conditions was made by Nigro seconded by ' Hoyt and approved by a vote of 4-0-1 with Ensminger abstaining. On motion by Ensminger seconded by Hoyt the Board approved an agreement between--the Town and Patrol Officers Grundhoff and Mele by vote of 4-1-0 with Hines against. The Board approved the Town's submitting voluntarily to mediation on the issue of the health insurance with caveats as may be expressed by labor counsel. on motion by Hines seconded by Nigro the Board adjourned at 11: 25 p.m. with all members voting in the affirmative. On motion by Ensminger seconded by Nigro the Board voted to ad- journ at 11:26 p.m. by vote of 5-0-0. eetd ctful yJubmitted: 7ry