2016-05-06-AC-STM2-STM4-rpt (supplement)

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APPROPRIATION COMMITTEE-STM 2016-2 AND STM 2016-4(PART 2) property consumes capacity that could be used for some other,possibly superior,property. This is usually described as the "opportunity cost". However, if the Town fails to add any new properties to its inventory, then the paths for developing new facilities will be very constrained. The decision on whether to acquire a property must be based on reasonable measures of utility, primarily size, location, accessibility, and suitability for municipal or school needs, combined with an assessment of the Town's financial capacity. The property at 20 Pelham Road presents both positive and negative fea- tures. The location of the property, adjacent to the Community Center, and in the central eastern region of Lexington, is a strong positive. The existing building also has a gymnasium and a cafeteria with a com- mercial kitchen that could be integrated into the Recreation Departments offerings at the neighboring Community Center. On the other hand, the condition of the existing building is not ideal. There are some hazardous materials that would need to be removed, and (depending on future uses) the building might require some upgrades to meet current building codes and accessibility standards. At the moment, the on- ly vehicular access is via the intersection of Pelham Road and Massachusetts Avenue, which has poor sight-lines when entering and exiting Pelham Road. In the short term, part of the building could house the School Administration offices in order to give the School Department greater flexibility in the use of the "old" Harrington School facility, or it could pro- vide swing space for the schools or for a municipal department, e.g.police, during reconstruction. Potential long-term uses include: • A 10 classroom school(renovate existing building). • An expanded 12 classroom school(existing building plus addition or modulars). • A new 24 classroom school(new building). • New site for the Lexington Children's Place (pre-K). • Permanent site for School Administration. In addition,part of the property could be used for a new access road from Marrett Road via the Communi- ty Center property, should the traffic to the property require it. Town Meeting appropriated $150,000 on December 2, 2015 for studies of the accessibility of the site and the usability of the building. Professional consultants performed the studies, and have submitted their re- ports to Town officials. These reports have not been made public, but it is safe to say that their contents did not deter the Selectmen from pursuing the property. At this time, the current issues with vehicular access to the 20 Pelham Road property preclude any use that generates significant traffic, such as a school with more than 10 classrooms. Financing The request under this article is intended to cover the purchase price including legal expenses, as well as a small amount of funding for site engineering following the acquisition. The majority of the funds would be used to purchase the property, or to compensate the owners as part of an eminent domain taking. The estimated value of the property is based on a professional appraisal prepared for the Town, which evalu- ated both institutional and residential uses. If the Town takes the property by eminent domain, there is a risk that the owners will sue for higher com- pensation than was offered by the Town. This would result in additional legal expenses, and possibly re- quire the Town to increase the compensation paid to the current owners. As of press time, the Town had not reached a negotiated agreement,but approval of this article would not preclude a negotiated purchase. The Committee hopes that the Town will be able to complete a negotiated purchase in a timely manner, but we acknowledge the Selectmen's prerogative in this matter. The motion to Town Meeting to acquire 20 Pelham Road will not be contingent on the approval of a ref- erendum to use excluded debt as a funding source. This allows for the most flexibility going forward. A 3