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HomeMy WebLinkAbout1992-04-22 Finance Committee MinutesMINUTES OF THE READING FINANCE COMMITTEE APRIL 22, 1992 RECEIVED TDVYN CLERK READI G.1"'AS S. Ill lY 29 7 i6 fill '92 This meeting of the Reading Finance Committee was held at Reading Town Hall, in the Selectmen's Conference Room and was called to order by Chairman Dick Coco at 7:30 PM. MEMBERS PRESENT: Chairman Dick Coco Vice Chairman Fred Iran Magness Pete Dahl Ge ry MacDonald Carroll MacMillan Bill Murphy OTHERS PRESENT.- Nelson Burbank Attorney Brad Latham George Hines I. PRESENTATION OF ICE SKATING RINK PROPOSAL A. Special Town Meeting Article/Monday, April 27, 1992 *This meeting was called to order in order to allow a presentation of the ice skating rink proposal which will appear as a Special Town Meeting Article on April 27,1992. -1- *Mr. Nelson Burbank, benefactor to this proposal of a Town Ice Skating Rink, was introduced and asked to take the floor in his presentation and discussion of this Town Skating Rink plan. Yresentation was given to the Finance Committee of expenses in the business of operating a skating rink in the Town. *The proposed budget for such a Skating Rink was produced by Mr. Burbank at this time. Mr. Burbank had many handouts to pass along as informative data to the Finance Committee. *Mr. Burbank told the Finance Committee that he feels this idea of a Skating Rink should be passed by the Town of Reading. Mr. Burbank compared this proposal to that of the Town of Burlington. *Discussion included talk of how much it would cost to build such a Skating Rink, and line item data was dispensed and discussed by Mr. Burbank *Contingency Fund figures were also discussed at great length at this point in the meeting. *Dick Coco asked the Finance Committee to prepare questions for Mr. Burbank at this time. *Carroll MacMillan asked about assumption of debt and also had a question regarding the interest of Mr. Burbank in pursuing such a project as this for the Town of Reading. -2- *Pete Dahl had a question on interest repayment and also asked about operating expenses. *Vice Chairman Fred Van Magness talked of a possible fund-raising drive in the Town and whether this fund raising may be reasonable for this ice skating rink. He asked if there would be any revenue donations for this ice facility or for ice time and Mr. Burbank indicated there would for ice time. *Fred Van Magness indicated that there may be other major operations who would perhaps, come forth and want to make a donation to this skating rink. His question here was simply whether or not there could be an infusion of capital in that line. *Mr. Burbank is against professional names taking time away from the community, the Town of Reading, in the use of this proposed facility. *Mr. Van Magness discussed revenues and operating income, also additional revenue projections and donations. *Bill Murphy discussed the Town of Burlington and the similarities, donations. *Mr. Coco commented on a feasibility study looking at large inputs of money coming in. He commented that analyses were not run with conservatism. *Mr. Burbank assured the Finance Committee that there would be no debt for the Town for very long. -3- *Carroll MacMillan discussed prepaid insurance. *Mr. Burbank indicated that there would be no "skimping" on any small things concerning this rink. *Bill Murphy brought up the contingency fund and also bond issues and projections given for the Towns of Burlington and Wilmington. *At this time, Mr. Burbank presented projections in offering line items to the Committee. *Dick Coco had a question of the Directors of this Skating Rink. - *Mr. Burbank indicated that once the debt was retired the income would flow through to the Town of Reading. *Mr. Dahl commented on underwriters at this time. *At this time, Fred Van Magness asked for audience participation and requested a sign-in sheet be entered for those of the audience who are participating in this meeting. MEMBERS OF THE AUDIENCE *The following members of the audience participated in tonight's meeting: *Mr. R. Higgins, 175 Walnut Street *Ms. Maryann Higgins, 175 Walnut Street *Mr. Joseph Pisaro, 58 Timberneck Drive -4- *Mr. Kevin Gillespie, 233 Haverhill Street *Mr. Arnold Berger, 8 Woodside Avenue *Ms. Nancy Eaton, 13 Short Street *Mr. Peter Doherty, 552 franklin Street *Ms. Virginia Blodget, Prescott Street *Ms. Marjorie Liberty, 49 Wakefield Street *Ms. Pat Keane, 105 King Street *Mr. Frederick Martin, 24 Thorndike Street ` *Mr. Edward Perry, 267 Haverhill Street *Mr. Frank Driscoll, 7 Ordway Terrace *Mr. Dana Hennigar, 48 Colonial Drive *Ms. Ruth Warren, 242 Bancroft Avenue *Mr. Steve Thomases, 88 Colburn Road *Ms. Marlene Cohen, 65 Timberneck Drive *Mr. John D. Wood, 213 Pleasant Street *Ms. Gail F. Wood, 213 Pleasant Street *Ms. Pat Sudbay, 107 John Carver Road *Mr. Victor Carlson, 41 Shackford Road *Ms. Anne Mark, 284 Summer Avenue *Attorney Brad Latham, 643 Main Street *Mr. George Hines, 35 Grand Street *Mr. Mark Doherty, 29 Bond Street *Mr. Edward E Ore III, 105 Washington Street *Ms. Pam Doherty, 169 High Street *Mr. Art O'Brien, 311 Haverhill Street *Mr. Jim McGrath, 8 Edwin Street *Ms. Pat Driscoll, 105 Washington Street *Mr. Garth Scott, 64 Colonial Drive *Mr. Gary Dempole, 531 Main Street *Mr. Burbank continued with his discussion and his presentation to the Committee and mentioned how popular the -5- sport of figure skating had become. He also discussed ice-time costs. *Pete Dahl commented on this being revenue recession resistant. Mr. Burbank claimed that more benefits would come to the Town of Reading. *Mr. Coco sugested here that the Town is looking for an income source. ' *Mr. Burbank presented more information on expenses. *The Metropolitan District Commission skating rink in Saugus was discussed at this point in the meeting by Mr. Burbank Rinks seem to differ from "rink to rink" and they do not have a capital account. *The list of Income and Expenses of the Saugus Rink was made at this time by Mr. Burbank. . *Pete Dahl had a question on the Saugus operation and on how many months this rink was operating. MEETING INTERMISSION AT 9: 00 P M, *When the meeting resumed in progress the Financial Feasibility Study was directed to Finance Committee by Mr. Burbank i -s- *Discussion ensued here by Mn Burbank of hockey schools in the Summer season as being a big business.- Ice time scheduling was also touched on at this time. *It was mentioned that consultants may be necessary during the first year of operation, according to Mr. Burbank. *Mr. Van Magness asked a question on the skating scheduling and if any double scheduling would be permitted. *Another question that Mr. Van Magness asked here was the $140 per hour value and whether this is an established value. *Mr. Burbank answered that this varies from rink to rink. *Dick Coco had a projected revenues question at this time. *Pete Dahl had a question on "every hour" costs. *Fred Van Magness had some questions about the size of this facility. *Here, the building plans were discussed regarding seating numbers. *Fred Van Magness elaborated that this rink must be of no cost to the Town of Reading and discussed water and sewer and is that funded by the I million figure. *The Department of Public Works of the Commonwealth of Massachusetts has the funds available to be included to make a grant offering to the Town of Reading. There will be no cost to the Town of Reading whatsoever. *Fred Van Magness indicated that he had been near the site recently and had some concerns about getting onto Haverhill Street and this was discussed. - *Mr. Burbank indicated to the Committee that the estimate included $65, 000 for traffic signals. *Fred Van Magness suggested looking at this and deciding whether this site should be for recreational use. *Attorney Brad Latham discussed the site and the land area and mentioned that the Master Plan indicated that the best long-term use of this land is for recreation. *Bill Murphy indicated some interest in the site by the Rod and Rifle Club, which offered to purchase the land too. Bill is concerned about the property. Bill is concerned as to whether this is the right fiscal use of this property. *George Hines indicated strongly that a recreational space is necessary for the Town. *Gerry MacDonald had an assessor's question. The building is valued at $126,000 and the land at $303,000. *Mr. Van Magness spoke of this land laying dorment for a long time and talked of environmental picture and tests i being accomplished on the soil. *George Hines again indicated that this is the best use of this property. *Bill Burditt, former Chairman of Finance Committee and newly elected Selectman, suggests that this is a good potential for the Town. The Master Plan needs looking into and feels that money will be returned to the Town through this skating rink. *Steve Thomases (audience participant): spoke of financial information and had made a telephone call to the Town of Watertown, 'MA regarding their public skating. *Gail Wood (audience participant): other uses of the land were discussed and made mention of zoning. *Nancy Eaton, President of the Rod and Rifle Club talked of the Town indicating that land would be used for cemetary. . *Audience participant from Precinct S: Conservation would like a piece of the land in question. *Attorney Brad Latham concurs that- there would be land available for conservation. *Tom Bouchard (audience participant): satisfied with direct costs. ' *Reading Memorial High School hockey coach spoke -9- 1 in favor of this skating rink proposal. MOTION: Fred Van Magness moved to recommend the subject matter of Article 5 for Special Town Meeting, April 27, 1992, be approved and Carroll MacMillan seconded. .DISCUSSION: Dick Coco suggested a guarantee that an advisor from the Finance Committee be appointed on the Board of Trustees of this skating rink. Bill Murphy has concerns about supply of ice time for other Towns. Rod and Rifle Club wanted an. appraisal. Attorney Latham indicated that there is lots of land left to see to the Rifle Club. Pete Dahl's concern is whether it is a benefit to sell this land when land and property is so scarce. VOTE TO MOVE THE QUESTION 5-1-0 VOTE ON MOTION.- 3-3-0 FAILED *Bill Murphy wants this issue now closed. *Carroll MacMillan spoke abruptly to his colleagues here and suggested the turn of events were very shocking since the three votes* against this issue were made by Committee persons who did not physically visit the site. Were, Mr. Van Magness indicated he took offense to the allegations of his colleague on the Committee. / 1 *Dick Coco told the group that it is extremely important to bring all of the issues out on the table. *Mr. Burbank told the Committee that he would not have proposed this unless he felt that the qualify of life in Reading would have benefitted. He felt that this proposal would do something of quality for the Town of Reading. *Bill Murphy indicated that his job as a member of the Reading Finance Committee is to be fiscally responsible. *Mr. MacDonald asks the Committee to extend thanks to Mr. Burbank for his proposal presented this evening. MOTION TO RECONSIDER.- Fred Van Magness moved to reconsider and Mr. MacMillan seconded. -11- VOTE: DISCUSSION.- 1VIOTION. 5 - 1 - 0 APPROVED Pete Dahl does not want to lose the property and see this as donating a piece of property for a commercial venture. Dick Coco mentioned the potential for income after the 3rd or 4th year. Gerry MacDonald talked of opportunity here to make money and to have money come back to the Town. Margie Lebowitz (audience participant) mentioned that the high school field house is used for commercial gain sometimes. John Wood (audience): look now at the ice rink as managing something in a fiscally responsible manner. Recreational area is what we are looking at here. Recommend that the subject matter in Article 5 in acceptance of a gift of .Mr. Burbank be f approved for Special Town Meeting. VOTE: S - I - 0 APPROVED *Mr. MacMillan apologized to his colleagues for his outburst earlier. *Mr. MacMillan presented three petitions to check records of the following departments in the Town of Reading.- *School Department ( i *Water and Sewer Departments *Electric Enterprises *The petitions presented by Mr. MacMillan had the 100 signatures necessary for petition process. II. ADJOURNMENT *Before the motion for adjournment was announced, Chairman Coco suggested that the petitions brought forth by Mr. MacMillan wait until such time as Special Time Meeting issues and other agenda work has been completed. 3- MOTION: Fred Van Magness moved to adjourn at 11:15 and Gerry MacDonald seconded this move. VOTE: 6 - 0 - 0 APPROVED mitted, ecretary /s -14-