HomeMy WebLinkAbout1990-02-20 Board of Selectmen Executive Session Minutes Minutes of the Board of Selectmen Meeting
Executive Session
February 20, 1990
Section 1
The meeting convened at 7:36
p.m. in the Selectmens Meeting Room,
16 Lowell Street, Reading, Massachusetts. Present were Chairman
Graham, Vice Chairman Ziegler, Selectmen Nigro and Russell, Town
Counsel Ron Kaczynski, CPDC member Richard Howard, Assessor
Robert Nordstrand, Public Works Director Tony Fletcher, and Town
Manager Pete Hechenbleikner.
On motion by Nigro, seconded by Ziegler the Board voted to go
into Executive Session for the purpose of real estate nego-
tiations. All four members voting in the affirmative, the motion
passed by a vote of 4-0-0.
Regarding the sale of the Bear Hill property to the Bear Hill
Realty Trust, Bob Nordstrand confirmed that there is no financing
available for condominiums, and the market is very soft. The
Board agreed that if Bear Hill confirms that they are not able to
come up with any alternative the Town take back a mortgage on the
land; that Town Manager should go to the two other bidders to see
if there is interest. If so, we may go back out to bid. The
discussion with the other two bidders will not represent any kind
of an offer to negotiate with those bidders specifically.
The Board then discussed the Homart situation which is subject to
a separate set of minutes. Following discussion on Homart, the
Board voted to come out of Executive Session and adjourned at
8:55 P.M. by a vote of 4-0-0 on roll call vote all members voting
in the affirmative.
Respectfully submitted:
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Secretary
Minutes of the Board of Selectmen Meeting
Executive Session
February 20, 1990
Section 2
The meeting convened at 7:36 p.m. in the Selectmens Meeting Room,
16 Lowell Street, Reading, Massachusetts. Present were Chairman
Graham, Vice Chairman Ziegler, Selectmen Nigro and Russell, Town
Counsel Ron Kaczynski, CPDC member Richard Howard, Assessor
Robert Nordstrand, Public Works Director Tony Fletcher, and Town
Manager Pete Hechenbleikner.
On motion by Nigro, seconded by Ziegler the Board voted to go
into Executive Session for the purpose of real estate nego-
tiations. All four members voting in the affirmative, the motion
passed by a vote of 4-0-0.
The Board discussed Bear Hill, which is the subject of a separate
set of minutes.
Ron Kaczynski brought the Board of Selectmen up to date on the
Homart deal. He indicatd that Homart is looking to get out of
additional financial commitments over and above the 6.25 million
dollar purchase price. They have a commitment from their financ-
ing committee for $12,000,000, and need another $6, 000, 000. The
uses that Homart wants to get out of are - 1) to have no inter-
est paid to the Town on the indemnification money being held by
Homart - 2) to not pay a CPI escalator such March of 1988 - 3)
to eliminate the late start penalty. After considerable discus-
sion, all present agreed that the primary direction will be to
get the deal closed for the 6.25 million dollars. The Town will
hold out for the CPI escalator and try for a May closing. We
will try also retain the other two pieces of the deal, but the
interest on the indemnification fund would be the first thing to
be given back, and the late start penalty next. We will also
look at the possibility of profit sharing - i.e. have the CPI or
other elements paid to the Town at a later date if the project
turns out well - i.e. perhaps after the second building is con-
structed.
Ron Kaczynski will discuss these issues with John Seeley and try
to negotiate the best deal possible. As needed, the negotiating
committee will consist of Russell, Graham, Hechenbleikner, Flet-
cher, Kaczynski, Nordstrand and Howard.
On motion by Russell, seconded by Ziegler the Board voted to come
out of Executive Session and adjourned at 8;55 p.m. by a vote of
.4-0-0 on a roll call vote all members voting in the affirmative.
Respectfully submitted:
P
Secretary