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HomeMy WebLinkAbout1995-09-18 ad Hoc Haven Street Task Force MinutesSale of 25 Haven Street Task Force Meeting Minutes Date: Monday, 18 September 1995 Time: 7:30 p.m. Place: 230 Ash Street, Reading, MA Present: Messrs. Pacino, Ensminger and Brown Mrs. Botticelli, Ziegler and Grimm Messrs. Blomley and Rucker Guests: Ted Cohen, Town of Reading General Counsel Roger J. D'Entremont, Century 21 Realty Gerry Fennessey, Strato USA Graphics Rick Ford, Shepardson Group Brian Heffron, Strato USA Graphics William J. Hughes, Jr., RMLD Commissioner Shipley C. Mason, Century Bank The Chairman called the meeting to order at 7:30 p.m. The Chairman welcomed Ms. Grimm as a new member of the Task Force who will take Fred Van Magness' place. 2. Prior Minutes The Chairman deferred this item to the end of the meeting. 3. 25 Haven Street Offer (Len Rucker) The Chairman asked Mr. Rucker to brief the Task Force on the offer that was made on the 25 Haven Street facility. Mr. Rucker stated that on September 8, 1995 he met with Rick Ford of the Shepardson Group to review a contract to purchase the building which was made by a company called Strato USA Graphics. Mr. Rucker stated that no action has been taken on this offer since that initial meeting. Mr. Rucker informed the Task Force that the Reading Municipal Light Department as a municipal light department is not subject to Chapter 30B and therefore could proceed with signing this contract. Mr. Rucker stated that since the Town is subject to Chapter 30B, the decision was to take the necessary actions concurrent with its provisions. Mr. Rucker added that the disposal of the property takes action by both parties: the Board of Selectmen and the Board of Commissioners. Mr. Rucker stated that the purpose of this evening's meeting is to present the Task Force with the offer and answer any questions the members may have of Strato USA's representatives. Finally, Mr. Rucker stated that the Department is looking for direction from the Task Force. 4. Questions and Answers of Potential Buyer The Chairman asked for the representatives from Strato USA to give a brief description of their company. September 18, 1995 Page 2 4. Questions and Answers of Potential Buyer (continued) Mr. Fennessey stated that their company is a complete graphic shop and has been in business since 1969. Mr. Fennessey added that they currently have two locations: one building in Burlington, MA that they own and one building in Woburn, MA that they lease. Mr. Fennessey stated that their company has a full copy center and provides complete copying and blueprinting services. Mr. Fennessey stated that it is their intention to move out of their Woburn location into the property at 25 Haven Street should their offer be accepted. 5. Chapter 30B Process (Uniform Procurement Act) Mr. Pacino asked Mr. Rucker to review the provisions under Chapter 30B. Mr. Rucker stated that the Reading Municipal Light Department has owned the property at 25 Haven Street since 1939 and have operated it under a municipal purpose. Mr. Rucker stated that the building is now surplus for the Department's needs. Mr. Rucker informed the Task Force that as a municipal light department, the Department is not subject to the Uniform Procurement Act, but that the Town of Reading is subject to it. Mr. Rucker also stated that both parties, the Board of Selectmen and the Board of Commissioners, must vote in the affirmative for a sale of the property to go through. Finally, Mr. Rucker stated that the Town Meeting criteria is set at a minimum price of 80% of the appraised value. Mr. Pacino inquired if the offer presented this evening meets the Town Meeting criteria. - Mr. Rucker replied in the affirmative. Mr. Pacino inquired if the five restrictions that the Task Force put on the property have been violated. Mr. Rucker replied that from the Department's point of view, nothing in this offer violates any of the restrictions placed on the property. Mr. Pacino inquired if there would be any potential zoning issues. Mr. Rucker replied there do not appear to be any zoning problems. Mr. Ensminger inquired if there may be any potential "21 E" problems. Mr. Rucker replied that there is an underground storage tank that will be removed by the Department. Ms. Grimm noted that the potential buyer would have to conduct a 21 E in order to obtain their financing. Mr. Rucker stated that the Department does not anticipate anything that will cause the 21 E to be negative. Mr. Cohen noted that there is a provision in the zoning by-laws which prohibits a printing company in this business district. However, Mr. Cohen stated that he believes this provision relates to large commercial printing companies, and advised the °l representatives from Strato USA to consult with the building inspector on this issue. Mr. Fennessey noted that their company does not have any printing presses. September 18. 1995 Page 3 5. Chapter 30B Process (continued) Mr. Cohen reiterated that he does not feel this will be a problem, but did advise that the - - building inspector be consulted as soon as possible. Mr. Cohen also noted that the by- laws prohibits any sort of company that deals with gas, fumes or odors of any kind. Ms. Grimm inquired how large Strato USA's revenues are. Mr. Fennessey replied $2 million. Ms. Grimm inquired if that is a total of both their Burlington and Woburn locations. Mr. Fennessey replied in the affirmative. Ms. Grimm inquired how large their Woburn facility is. Mr. Fennessey replied that their Woburn facility is approximately 5,000 square feet. Ms. Grimm inquired if they owned their property in Burlington. Mr. Fennessey replied they own the property in Burlington and that they have a mortgage on the property. Ms. Grimm inquired if their company is intending to finance and if they are working with a bank on that financing. Mr. Fennessey replied that they are working with Century Bank on the financing and proceeded to introduce Mr. Shipley Mason. Mr. Mason stated that he has reviewed Strato USA's financial information and have determined that the company is very headstrong and successful. Mr. Mason added that his bank would like to entertain a formal application from them, for it is the bank's feeling that this company is well within their financial capabilities. Ms. Grimm inquired if Century Bank is Strato USA's "operating" bank. Mr. Fennessey replied in the affirmative. Ms. Grimm inquired if Strato USA has credit for normal operations. Mr. Mason replied that Century Bank has made a commitment with Strato USA for capital needs and that the company has essentially funded its own needs and equipment. Ms. Grimm inquired if Century Bank holds the mortgage on the property in Burlington. Mr. Fennessey replied that that mortgage is a private mortgage. Mr. Pacino asked Mr. Cohen to further explain the provisions under Chapter 30B. Mr. Cohen stated that the Town of Reading is subject to Chapter 30B with specific respect to disposal of real property. Mr. Cohen stated that the agreement on the title is that the Board would follow the provisions under Chapter 30B and that this is also a requirement of Town Meeting. Mr. Cohen stated that one of the provisions is to r determine the value of the property which has been conducted. Mr. Cohen then - ` proceeded to explain the bid process that is to take place. Mr. Cohen stated that several steps have to be taken which include generating an Request for Proposal (RFP); placing ads in local newspapers to be published two consecutive weeks; and publishing the property in the Central Register for a minimum length of 30 days. September 18. 1995 Page 4 5. Chapter 30B Process (continued) Mr. Cohen stated that the information that would normally go into the RFP would be the criteria set by Town Meeting, the Task Force and the Town. Mr. Cohen stated that if there is more than one bid, then the Task Force, the Board of Commissioners and the Board of Selectmen would make a determination of which bids to accept. Mr. Cohen also noted that it is not a requirement to accept the highest bid because it may be determined that one bid is more beneficial than another. Mr. Cohen did note that if a bid is accepted which is below the appraised value, notice has to be given to both the Central Register and the Secretary of State. Mr. Cohen stated that once these steps have been followed and the Task Force decides to move forward, the RFP can be generated. Mr. Cohen also stated that a Purchase and Sale Agreement can be "attached" to the RFP. Mr. Fennessey expressed concern that the property would have to be bid again given that his company has presented their offer for the property. (Ms. Botticelli entered the meeting at 8:00 p.m.) Ms. Grimm inquired who would be paying for the tank removal. Mr. Pacino replied the Department would incur that cost. Mr. Rucker stated that it was the Department's understanding that the transformers and the tank removal would be costs incurred by the Department. Mr. Cohen stated that that is correct given the hazardous waste issues. Mr. Pacino inquired if the Department would have to return to Town Meeting to appropriate the funds. Mr. Rucker replied that the Department will most likely not have to return to Town Meeting. Mr. Pacino asked for clarification on the bid process. Mr. Rucker replied that if the Task Force instructs the Department to proceed with executing the Chapter 30B process, the Department would issue an RFP based on the previous bid specifications used on the two prior bids. Mr. Rucker stated that the specifications would be modified to be consistent with what Mr. Cohen has presented this evening. Mr. Rucker stated that the Department would open the bids on a specific date; analyze the bids and if it passes the minimum criteria, the bids would be passed on to the Task Force for recommendation. Mr. Rucker stated that the Task Force would then pass along their recommendations to the Selectmen and Commissioners because it takes an affirmative vote from both parties. Ms. Grimm inquired if Strato USA is under any particular time frame. Mr. Fennessey replied that their lease is up in May 1996 and that they would like to make a decision by the end of this year. Ms. Grimm inquired how long the bid process would be. Mr. Blomley replied that it would take a minimum of six weeks due to the Central Register requirement. Ms. Grimm inquired if the Department can conduct their analysis right away. Mr. Rucker replied in the affirmative. September 18. 1995 Page 5 6. Task Force Recommendation Mr. Pacino asked for the Department's recommendation. Mr. Rucker recommended proceeding forward with the bid process. On a motion made by Ms. Grimm and seconded by Mr. Ensminger, the 25 Haven Street Sale Task Force instructed the Department to proceed with the Uniform Procurement Act Chapter 30B process. The motion was passed unanimously by a vote of 6 in favor with 0 opposed. 7. Schedule Next Meeting The Task Force scheduled their next meeting for 7:30 p.m. on November 15, 1995 at the RMLD offices. 2. Prior Minutes On a motion made by Mr. Brown and seconded by Ms. Ziegler, the Task Force approved the minutes of 20 June 1995. The motion was passed by a vote of 4 in favor, 0 opposed with 2 abstentions. There being no further business, on a motion made by Mr. Brown and seconded by Ms. Ziegler, the Task Force VOTED to adjourn 8:30 p.m. The motion was passed unanimously by a vote of 6 in favor with 0 opposed. The Chair called for a poll of the vote: Mr. Ensminger, Aye; Mr. Brown; Aye, Ms. Botticelli, Aye; Ms. Grimm, Aye; Ms. Ziegler; Aye and Mr. Pacino, Aye. /mcn