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HomeMy WebLinkAbout1992-09-29 Board of Selectmen Executive Session Minutes Minutes of the Board of Selectmen Executive Session September 29, 1992 The Executive Session convened at 8 : 02 p.m. in the Selectmen's Meeting Room, 16 Lowell Street, Reading, MA 01867 . Present were Chairman Dan Ensminger, Vice Chairman George Hines, Secretary Sally Hoyt, Selectmen Bill Burditt, Eugene Nigro, Town Manager Peter Hechenbleikner, Board of Assessors' Bob Nordstrand, Town Counsel Ron Kacyzinsky, and Jonathan Barnes from CPDC. The Board reviewed Ron Kacyzinsky's memo regarding extension from Homart, and the memo from Merrick Ludwig regarding the same issue. It was the opinion of former Public Works Director Tony Fletcher that the closure approval could be reinstated. The per- mits have not lapsed yet. Sally Hoyt suggested that if we were going to look at retail on this site we should look at an outlet center such as exists in Maine and in California. Dan Ensminger noted that although Town Meeting would not have to approve retail use on the site, they would want to go to Town Meeting as a report. Bill Burditt commented that the down side of not extend- ing with Homart may be that we would be ordered to close the landfill at considerable expense to the Town, and we would have to develop and consider a new RFP. Bob Nordstrand indicated that the only market currently is for retail or for specific manufac- turing and institutional uses. The Board reviewed the financial situation with the need to sell this property. Jonathan Barnes indicated that an informal polling of CPDC members indicated a reluctance to see the site used for retail purposes because of the effect on the downtown area of Reading. At 8:55 p.m. Merrick Ludwig and Dan Slattery joined the meeting. Mr. Ludwig is the senior attorney for Homart, and Dan Slattery is a development director for Homart Community Centers Incorporated (HCCI) . HCCI develops high quality "power centers" which are projects which go between 300,000 and 800, 000 square feet. They have developed such centers in Minneapolis, Ft. Lauderdale, Cin- cinnati, Manchester, CT; have projects under construction in San Diego, Albany, Chicago, Homedell, NJ; and are remodeling the Framingham Mall site. Three others are approved. The question was raised as to the recent news stories on divestiture by Sears. It was indicated that the businesses being divested include Dean Witter, Allstate, and Coldwell Banker. Homart will be owned directly by Sears. HCCI was brought in one year ago to review the retail/commercial possibilities of the site. Late last year they sent ou_t 20 marketing packets and received favorable response from 12 . They have met with contractors and determined that retail development of the site is feasible. They are comfortable that it could be built and there is adequate visibility of the site. They are looking *-at the possibility of three tenant buildings which would be single story and consist in size of 108 , 000 square feet, 130, 000 square feet and 30, 000 square feet. They are looking at discount retail, electronic supplies, wholesale clubs, and super- markets. The development would generally be large box retail. Selectmen's Executive Session - 9/29/92 - page 2 One potential user would require 180, 000 square feet in one - building. These projects have historically taken two to three years to be put together in this economy. Homart is looking for six months to see if they can get letters of intent. After the six months if they are not able to develop this product then they would abandon the project. If within six months they are able to get letters of intent from major retailers then they would need some additional time to bring the project to closure. HCCI is headquartered in Chicago with regional offices in New Jersey and Los Angeles. George Hines indicated that Homart hasn't lived up to its commit- ments specifically with regard to marketing plans. Homart indi- cated that it is the lack of communication between Homart and HCCI. It does not represent a lack of effort. Homart commented that the remainder of the requirements would be moved since the project initially proposed by Homart is not feasible and cannot be built. HCCI indicated that they are willing to report face to face on a monthly basis. They would be willing to share their client list but not give the Town the ability to veto a par- ticular tenant. They have indicated that a supermarket is not a leading contender for use of the site. They will copy the Town on the marketing packet. They were asked if they would meet the requirement of item 5 in the extension agreement which would be to turn over all materials to the Town now. They will be reviewing that with legal staff. Within six months they will have obtained the letters of intent to justify the closing sometime reasonably soon thereafter or they will be out of the project. The project would be single phase and all of the environmental concerns are easier to handle with this project than the office/hotel project. They will provide a review of tax revenue which will be generated from the project. They are not proposing a change in the sales price of 6.25 million dollars. Their product that they develop is "a cut above" strip centers. The construction would be split face block or brick. Prior to making a decision, which will probably be scheduled for the November 4 Selectmen's Meeting, Homart will come back with the marketing package, an estimated time frame for completion of the project, and an answer as to whether or not plans are avail- able now. They will also estimate the tax revenue that would be generated from this project. There is no money available for paying for the extension of this agreement. Messrs. Ludwig and Slattery left the meeting at 9 : 47 p.m. The Board discussed review of the possibility of retail use of the site with the Chamber of Commerce, TASC, and other adjacent businesses. Selectmen's Executive Session - 9/29/92 - page 3 On motion by Nigro seconded by Hines the Board voted to adjourn the Executive Session at 10: 06 p.m. All five members present voted in the affirmative and the meeting was adjourned. :Sinc rely`," ecre ry