HomeMy WebLinkAbout2003-02-13 Zoning Board of Appeals MinutesTown of Reading
ZONING BOARD OF APPEALS
Minutes of February 13, 2003
Members Present:
John Jarema
Edmund Balboni
Robert Redfern
Susan Miller
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CLERK
`7',N5, MASS.
A meeting of the Zoning Board of Appeals was held in the Selectmen's Meeting room of the
Town Hall, 16 Lowell Street, Reading, Massachusetts at 7:00 P.M. Also in attendance were Joan
Langsam, Town Counsel; Chris Reilly, Town Planner; Anne Reitmayer, Consultant.
#02-05
Continuance of a Public Hearing on a request for a Comprehensive Permit to construct 250
condominiums called Johnson Woods on the property located at 468 West Street.
Bob Engler went over the report from Anne Reitmayer on the revised pro forma, 10-11% is
needed for construction financing, there were no construction documents so everything is an
estimate.
Anne Reitmayer questioned the comparable sales.
Ted Moore discussed the comparable sales.
Anne Reitmayer asked where the construction numbers came from.
Ted Moore explained the construction schedule and demonstrated the interest on the financing,
the construction loan maxed out at $17 million.
Ted Moore went over the schedule. The loan budget stays steady and then starts going down,
the chart is described on the phasing. He demonstrated how the construction interest is
unaffected by the starting point of construction, he also went over the mitigation and water
improvements on West Street. The standard was to do no harm, the actual amount of sewage will
be calculated and improvements made on that basis. The MWRA buy-in fee will be based on
estimated use. New estimates from Bill Bergeron indicate that the new site work budget is 3.3
million. Gazebo Circle is not similar for comparable sales.
Joan Langsam asked about duplexes.
Ted Moore said the duplexes will sell at 375k. The duplexes might have more landscaping but
no decision has been made yet. The 40B parcel contains 72% of the land area. The PUD parcel
has little or no value until 7 years.
Comparable sales were reviewed.
Ted Moore went over the comparables for 2001 and 2002. He compared new units at Gazebo
Circle to what he proposes. Summit Drive was what he utilized-229,000. Summit Estates sales
for 2001-2002 were 269,000. He took a midpoint between 263 and 229 and came up with
comparable unit sales.
Bob Engler said we're still in the range of 12% profit.
Ed Balboni asked what mitigation Bob referenced.
Bob Engler explained off site mitigation.
Ted Moore mentioned signalization that won't be necessary because Inwood is in foreclosure.
Bill Bergeron said there is no market for offices so the PUD parcel has little value right now and
prospective Inwood use is limited.
John Jarema talked about his concerns with the proforma but explained that estimates are
unreliable and at the end of the project the profit will be audited. No big numbers stand out as
deal breakers.
Joan Langsam asked about the wish list and whether the traffic mitigation is the only issue that is
outstanding.
Bill Bergeron explained that Inwood would have required signalization and they would have
provided the cost.
Ed Balboni went over Anne Reitmayer's report. The acquisition cost should not be loaded on
the development site. The approach is not justified for the acquisition costs. Gazebo Circle is
best comparable as referenced by Anne. Summit Drive is not comparable because it is apartment
style. You can easily get 300K for the market rates you are talking about. Would have over 8
million dollars profit over what you're estimating. The pro forma numbers should be adjusted.
The developer is low-balling. The most important thing is that the project is properly audited.
Bob Engler explained that the numbers will be what they are and they support a proper audit.
Joan Langsam explained that the regulatory agreement will determine how the excess profit is
determined.
Ed Balboni said that the profit margin could be over 25%.
Joan Langsam said that the conditions should be the focus of the pro forma.
John Jarema mentioned that the important thing is the conceptual plan and the quality of the
development, rather than the details of the pro forma.
Bob Engler mentioned that it is very hard to achieve 20% profit.
Robert Redfern said there is a lot of interpretation involved and we should take the guidance of
the consultant and get the mitigation we seek as long as it is reasonable.
Ted Moore said that we have not made progress recently and we need to move on.
Joan Langsam said we are ready for conditions in the public hearing.
Ted Moore asked whether we can discuss conditions.
John Jarema said we need to discuss conditions in the public hearing.
On a motion by Edmund Balboni, seconded by Susan Miller, the Zoning Board of Appeals voted
to continue the hearing on the petition for the Comprehensive Permit for Johnson Woods to
March 20, 2003.
The motion was approved by a vote of 3-0-0.
The Zoning Board of Appeals voted to adjourn the meeting.
The motion was approved by a vote of 3-0-0.
Respectfully submitted,
Christopher Reilly
Town Planner