2014-06-STM-AC-rpt - Laserfiche WebLink

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APPROPRIATION COMMITTEE REPORT TO THE JUNE 2014 STM includes a small paved parking lot for employees and visitors, and assumes no need for deliveries by semi-trailers. Artis has offered to give priority access to Lexington residents who wish to bring their parents to live at this facility, and to pro-actively search for Lexington residents to employ on their staff. Annual property tax revenue from the property is currently less than $10,000/year, in part because it is subject to a lower tax rate based on the agricultural exemption under Mass. G.L. Title IX, Ch. 61A. An- nual property tax revenue from the proposed Artis facility is difficult to predict accurately, but it would likely be more than $100,000/year,providing a modest benefit to the Town. Once the property is no longer qualified under the agricultural exemption, the Town will receive a one- time payment of roll-back taxes amounting to the difference between the lower agricultural exemption rate and the standard tax rate for the previous four years (Mass. G.L. Title IX, Ch. 61A, § 13). Risks According to their website, Artis is currently pursuing similar development opportunities in at least 17 locations nationwide. As with any company undergoing rapid development and expansion, there is a chance they will fail to manage their growth successfully. This could force them to delay, sell, or even abandon a partially constructed facility in Lexington. The planned facility would be a large, one-story building housing a population of clients who need 24- hour care, 365 days a year. As with any commercial or large residential facility, there is a potential for noise from air conditioners, electrical generators, and other machinery needed to maintain a safe and com- fortable environment. There is a potential for light pollution. The parking lot will be illuminated at night, but most other lights will be off between 11:00pm and 6:00am. Lighting must comply with regulations that limit the spread of light beyond the property boundaries. There will be vehicle traffic for employees and visitors to the facility, although it is likely to be rather lim- ited. There is the potential for a scheduling conflict between the facility's shift changes and the periods when school vans are in transit at the Cotting School across the street. Artis is aware of this scheduling issue and will adjust the timing of shift changes to limit the overlap if necessary. There is always the possibility that Artis would choose to sell the property and business. A transfer of ownership is not, in itself, a negative event; any owner would still be constrained by the DSDUP and would also be liable for property taxes, unless the new owner was a non-profit organization officially deemed, in terms of specific criteria, to be a charity. It appears that the nature of the business would make it unlikely that any owner would be able to operate the facility as a charity. In the unlikely case that a charitable organization becomes the owner, the Town might still attempt to ne- gotiate a "payment in lieu of taxes" (PILOT) to recover some portion of the lost property tax revenue. Even without the proposed rezoning, the location at 430 Concord Avenue could eventually be used for a church or a school, either of which would automatically be tax-exempt. Summary The Committee recognizes that major rezoning requests often involve a mix of financial, aesthetic, and practical considerations. Our charge is to render a recommendation based primarily on the financial and economic impacts to the Town, but we are sensitive to the limits of this perspective. Town Meeting Members should interpret our recommendations on rezoning requests as one component of a wider dis- cussion. This rezoning request is near the lower financial threshold of what the Committee would normally choose to deliberate upon, but the history and complexity of the deal comprised in this article and related articles elevated the significance of the request. 3