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HomeMy WebLinkAbout1998-12-01 Board of Selectmen Minutes Board of Selectmen Meeting December 1, 1998 The meeting was convened at 7:30 p.m. in the Selectmen's Meeting Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman Bruce MacDonald, Vice Chairman Sally Hoyt, Secretary Matthew Nestor, Selectmen Camille Anthony and George Hines, Town Manager Peter Hechenbleikner, Assistant Town Manager Russell Dean, Town Counsel H Theodore Cohen, Barry Fogel from Keegan, Werlin and Pabian, Richard Spieler from CDM, Paula Schena and the following list of interested parties: Dick McDonald, Bill Brown, David Nugent, Nancy Eaton, John Coote, David Proch-Wilson. Decision - Reading Business Park The Town Manager reviewed the history and process to date. He noted that the procedure for tonight's meeting would be to review each proposal and then put all four into nomination. Bruce MacDonald asked if the Town could be relieved of its responsibility of liability. He also asked if leasing or selling made a difference. Town Counsel indicated that the Town does not get out of the liability completely. The Town will always retain the liability to make sure the landfill is capped properly whether the Town caps it or the owner caps it. Bruce MacDonald asked if the Town owns the responsibility for what was put in the landfill and Mr. Fogel noted - that the Town could be indemnified. Mr. Fogel also noted that there has never been any data showing oils or volatile materials in the landfill which puts the Town in a good position. George Hines asked if the owner of the buildings went bankrupt, could the Town sell the lease. The answer was yes. Camille Anthony asked about monitoring costs. Richard Spieler from CDM noted that the cost to maintain is approximately $20,000/year. Parking lots must be kept paved, grass must be mowed, etc. Mr. Spieler noted that it would cost approximately $4 million to cap the landfill. Service Impacts Russell Dean reviewed an outline of the municipal service impact of the proposals as follows: Public Works — The current water system can absorb any of the four proposals. Drainage will have an ongoing service impact. There may be an impact on the Parks/Forestry Division. Condos would have to provide their own trash collection. There will be an impact on the sewerage system. Health — Will need a site assignment from the D.E.P. Inspections will have to be done for food service, swimming pools, etc. Police—No increase in staff will be needed for any of the four proposals. Fire-There will be an impact on alarms and calls for services for all of the proposals. Board of Selectmen Meeting—December 1, 1998—Page 2 Building—There will be an impact on the Inspections Division for all of the proposals. Selectmen's Comments -- Corporex—George Hines noted the pros: offers the highest amival cash flow; the highest value regarding tax return; the developer will close the landfill; the hotel and office is very positive. The cons: no up front cash payment; the country club has been untested in the local economy. Camille Anthony agreed with George Hines, and added that the proposal incorporates an office building which is positive; off-site improvements of $200,000; and will create an admirable number of jobs. Matthew Nestor noted that a disadvantage is there will be no up front cash. Leasing would mean that the Town would be in business with Corporex. We could end up with a white elephant but we could negotiate a sale. Bruce MacDonald agrees with a lot in this proposal. He noted it would fit into the community and has the highest monetary value in what is proposed. He also noted that Corporex has legal problems in Kentucky. Town Counsel noted that he received an anonymous packet of material regarding a grand jury proceeding in Kentucky-and a civil case. Both cases allege that Bill Butler reviewed bids for a parking garage at someone's home. Bruce MacDonald indicated that everyone has to determine - ifthis has any relevance. Matthew Nestor noted that he is innocent until proven guilty. Sally Hoyt indicated that she feels that Corporex is highly qualified and she would prefer a purchase not a lease. Bruce MacDonald felt the health club as a little "iffy," and there could be potential conflicts with the YMCA but they haven't come forward. Dickinson —Sally Hoyt noted that it was positive that they will close the landfill. Concerned that it generates the lowest annual revenue; traffic concerns; downtown business concerns; pleased the offsite improvements are$1 million and they are financially qualified. Bruce MacDonald noted that Dickinson has the ability to carry through but there are retail/entertainment concerns regarding traffic. It's not what the neighbors want. Home Depot will compete with other businesses. It is the lowest revenue projection. Matthew Nestor indicated that it is positive that they will close the landfill and will fund monitoring costs. The theater is negative regarding traffic. It changes the character of the Town. It is positive knowing who the proposed occupants will be. Camille Anthony noted that it is water friendly; the traffic will double and it is not what the Town wants. Board of Selectmen Meeting—December 1 1998—Page 3 George Hines noted that it has a low water use; increase in jobs; they will close the landfill; the up front payments tie-in with occupancy permits; the lowest revenue to the Town; has a negative impact on the commercial base; neighborhoods will have cut through traffic from the theater. Leach Family—Matthew Nestor noted that $10 million and an additional $3 million for off-site improvements is a plus but it is unclear as to the capping costs and there is lack of specificity. Bruce MacDonald agreed with Nestor and noted that it would be difficult to negotiate with them when there is a lack of specificity. Sally Hoyt noted that they have been in business since 1980. The $10 million is good but there is no commitment on unnamed retail and hotel. It lacks specifics. George Hines noted that $10 million is a plus; they have the most experience with contaminated site closure; the highest commitment to onsite and offsite mitigation but there are no specifics. Camille Anthony noted that no specifics is a real problem; they have experience in capping; and she had concerns regarding a"big box" scenario. Lincoln Properties - Bruce MacDonald had concerns about having housing on this site but it could be marketable. The luxury apartments would have little impact on the schools. The return -- to the Town is almost the same as Corporex. Camille Anthony noted that they are offering $7.65 million with the Town closing the landfill and the $7.65 million is based on permitting. Offsite improvements come out of the $7.65 million. It is the lowest traffic generator and highest water user. George Hines noted that it is a solid mixed use. Cash payments up front, good gateway to the community. Highest water use; the Town will close the landfill; greatest impact on municipal services and schools; an increase in children would be a disaster, and there is the issue of trash collection. Sally Hoyt noted that Lincoln Properties has 30 years of experience. The $7.65 million is positive, the Town having to close the landfill is negative. The traffic is the least generated but the water use is high. George Hines indicated that the Board should set a deadline for a Purchase and Sales Agreement to be signed. The Town Manager suggested 45 days would be enough. Matthew Nestor asked to have a shorter time period subject to an extension. On motion by Hines seconded by Anthony, the Board of Selectmen placed into consideration the following potential developers for the Reading Business Park site, with the developer receiving the most votes (at least 3 votes) being designated preliminarily the developer of the site; subject to a successful timely completion of negotiations within 30 days subject to an extension between the Town and the designated developer, and subject to confirmation, as necessary, of the evaluation. factors and assumptions made by the Board in its review of the designated Board of Selectmen Meeting—December 1, 1998—Page 4 developer's proposal. In the event that negotiations are not successfully completed with the designated developer or the evaluation factors and assumptions made by the Board are materially inaccurate or unresolvable, the Board hereby authorizes negotiations to be conducted with the developer receiving the next highest number of votes, going through the priority list as needed until a successful negotiation is completed: Corporex, Dickinson, Leach Family, Lincoln Properties. Corporex received 3 votes, Dickinson received 0 votes, Leach Family received 0 and Lincoln Properties received 2 votes. Corporex was designated as the preliminary developer for the site. On motion by Hines seconded by Anthony, the following names were placed into nomination for second place: Dickinson, Leach Family and Lincoln Properties. Dickinson received 0 votes, Leach Family received 1 vote and Lincoln Properties received 4 votes. Lincoln Properties Xvas designated as second place. On motion by Anthony seconded by Nestor, the following names were placed into nomination for third place: Dickinson and Leach Family. Dickinson received 3 votes and Leach Family received 1 vote. Hoyt abstained. Dickinson was designated as third place. On motion by Hines seconded by Anthony, the Board voted to designate Leach Family as fourth place. The motion was approved by a vote 3-0-2, with Anthony and Nestor abstaining. The Board of Selectmen decided that the Negotiating Committee would consist of a representative of Grubb and Ellis, Town Counsel, Town Manager, two members of the Reading Business Park Advisory Committee and one Selectmen. George Hines volunteered to be the Selectmen's representative. On motion by Hines seconded by Anthony, the Board of Selectmen voted to go into Executive Session for the purpose of sale of real estate and not to come back into Open Session. On a roll call vote, all members voted in the affirmative. Resp tfully submitted, reta ry