2016-04-26-CEC-min - Laserfiche WebLink

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Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting April 26, 2016 Location and Time: Town Office Building, Reed Room 7:30 .. AM Members Present: Jill Hai, Chair; David Kanter, Vice-Chair & Clerk; Elizabeth Barnett; Rod Cole; Wendy Manz Members Absent: None Others Present: Elaine Ashton, Town Meeting Member; Sara Arnold, Recording Secretary Documents Presented: Notice/Agenda of CEC Public Meeting, April 26, 2016 Statement read by Joe Pato, Chair, Board of Selectmen (BoS), at the April 25, 2016, BoS meeting Pending Final Minutes of the Lexington CEC Meeting, April 19, 2016 Call to Order: Ms. Hai called the meeting to order at 7:36 .. AM Discussion on matters included in Special Town Meetings (STMs) 2016-2 & 2016-4: th Ms. Hai read a statement shared by Mr. Pato during the BoS April 25 meeting (after the BoS’ Executive Session) regarding the purchase of 20 Pelham Road (STM 2016-2, Article 2). Because this Article will now be brought to Town Meeting for consideration, this Committee must prepare a supplemental report to STM 2016-2 with its position regarding an $8.0 million request for the purchase and associated design and engineering of possible uses of that property. The Town has appraisals of the property for both residential and commercial use. The purchase will be contingent on acceptable due-diligence findings which cannot be prepared until after a Purchase and Sale agreement is finalized and the Town has been able to make a thorough inspection of the property—most importantly of the building. Discussion points included the following: Town Meeting already approved funding for engineering analysis associated with connecting this property to Marrett Road. There are many options for using the property that might well address current and already foreseen needs. It is expected that there will be an evaluation of specific future uses of the property for school and municipal purposes; it was noted that should include affordable housing. This approach could amount to “banking” the property, although the land could be sold if an appropriate use isn’t identified. If the Town doesn’t purchase the land, the opportunity would be lost as the sale to another party would be likely. Financing models prepared in recent months have included this amount within the debt-service expense for debt excluded from the limitations of Proposition 2½ (if approved to do so by the Board of Selectmen, Town Meeting, and the voters in a referendum). Page 1 of 2