HomeMy WebLinkAbout2011-05-19 Affordable Housing Trust Fund Working Group MinutesAffordable Housing Trust Fund Working Group
Minutes of meeting of May 19, 20.11
RECEIVED
E K
The meeting began at 8:30 a.m. in the Arnold Berger Room, 16 Love ing,
Massachusetts. Present: , to
♦ Oaktree - Phil Tersis, Arthur Klipfel, Paul Ognibene (by phone);
♦ Selectmen Stephen Goldy and Ben Tafoya;~~ JUN A
♦ Reading Housing Authority - Kevin Mulvey and Diane Cohen;
♦ Staff: Town Counsel Ellen Callahan Doucette, Assistant Town Manager/Finance Director
Bob LeLacheur and Town Manager Peter Hechenbleikner.
♦ Resident - Bill Brown
Arthur Klipfel reviewed the history of the purchase and sales agreement that was entered into
two plus years ago, the grant application process to the state, the fact that the Town wanted the
site developed under a 40R with 20% affordable housing and the discussion on the affordable
housing trust fund.
Paul Ognibene reviewed an email outlining 10 negotiating points from his email and there was
considerable discussion on items #2, 5, 6, 7 and 8. Discussion centered on how the Town could
be, repaid, or that Oaktree would not utilize unless needed, all or portions of the requested
$400,000.
The Oaktree representatives left the meeting and the remaining members discussed the open
issues. It was the consensus of the group that the best way for the deal to work is to simplify it
and to provide an outright grant in some agreed upon amount, because in the opinion of the
group it is unlikely that the Town would.see the return of the funds at any point. There was
discussion about what the amount of the grant should be. The consensus was that a grant in the
amount of $200,000 would be appropriate. Other elements agreed to include the fact that the
Town's money would be the last to be used would still be part of the agreement.
The Oaktree representatives came back into the meeting and the Town Manager proposed a
newly structured deal that would be very simple the Town would make a grant to Oaktree in
the amount of $200,000. Paul Ognibene indicated that they appreciate the proposal to simplify
the deal, but that Oaktree needs $400,000 for the project to move forward. Discussion then
ensued about a deal that would be a total of $400,000, $200,000 of which would be a grant and
$200,000 of which would be a guaranteed loan to be repaid in a short time - say 24 months from
project inception.
The meeting dissolved with the understanding that Paul Ognibene was going to evaluate how
Oaktree could respond to the Town's revised proposal and would be in touch with the Town
Manager over the weekend.
On motion by Goldy seconded by Cohen, the subcommittee adjourned at 10:30 a.m.
Respectfully submitted,
e etar