HomeMy WebLinkAbout1989-07-18 Board of Selectmen Executive Session Minutes Minutes of Executive session
July 18, 1989
Meeting convened at 7 : 08 p.m. Present were Russ Graham, Mollie
Ziegler, Dan Ensminger, Eugene Nigro, Jack Russell, ; also present
-- ' were Town Manager Peter I. Hechenbleikner and Perry Neilson from
Homart. Joining the group later were John Seeley and John Rous-
seau from Homart. On motion by Russell seconded by Ziegler all
members of the board voted to go into Executive Session to come
out in thirty or forty-five minutes.
Perry Neilson explained the status of the Homart operation. The
areas of concern are all related to the high development cost to
the site. Homart's main office in Chicago is concerned about the
high cost of the development relative to the return on the in-
vestment. However, Neilson indicated that the firm is fully com-
mitted to the project in spite of some of the gloom and doom an-
nouncements in the Globe. The main things that the site has for
it are the visibility, the access, and the fact that all ap-
provals are in place. Homart is exploring three avenues as
directed by their board to make them more comfortable with going
ahead with the development. These include:
1. A firm letter of interest from a hotel.
2 . A joint venture partner.
3 . A letter of intent from a major tenant.
There have been positive discussions on all of these avenues.
Neilson indicated that the DEQE approvals are in place, although
there is a modification that they will require to the closure
plan. They do not see a major problem with this.
Homart has contacted approximately 27 hotel operators, including .
all local contacts, franchise developers and many national con-
tacts. No operator has committed to date, but they have had sub-
stantial discussion with four to five operators. They hope to
know within sixty days.
The abandonment of the easement is still in discussion with Tyler
& Reynolds, but should be resolved very soon. The state has ap-
proved it in concept.
Homart feels that they cannot make the $20, 000 donation for the
traffic study available now. They are aware of the commitment,
but feel it is inappropriate to put the dollars forward now prior
to closing.
The Board of Selectmen indicated an interest in continuing this
dialogue on a regular basis. Homart has indicated a willingness
to do so.
On motion by Ziegler seconded by Nigro the Board went into open
session at 7:48 p.m.
Respectfully submitted: Secretary