2017-04-19-AC-ATM-rpt (Article 44)

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Article 44: Amend Zoning Bylaw — Brookhaven (Owner Article) Funds Requested Funding Source Committee Recommendation None N/A N/A Brookhaven at Lexington ("Brookhaven") is requesting a zoning change of a parcel of land located at 960-990 Waltham Street from the current RO One Family Dwelling District to a PD Planned Development District, and to add it to the adjoining RD Planned Residential District Brookhaven at Lexington. This rezoning would allow Brookhaven to construct a new building on the 960-990 Waltham Street parcel property as well as to expand its parking and make other improvements. This Committee does not express any opinion on the non-financial aspects of the requested zoning change, and has not voted to approve or disapprove this article. However, because an essential part of the discussions between Brookhaven and the Town for the zoning change required to allow this expansion has been the negotiation of a financial mitigation package designed to address the financial impacts of the project on the Town, the Committee has evaluated that mitigation package and provides this report for informational purposes. The mitigation package consists of two main components: (1) a revision of Brookhaven's current arrangement for payment-in-lieu-of-taxes (PILOT) to account for the expanded number of units and increased valuation; and (2) a mitigation payment designed to preserve the Town's existing ratio of affordable housing units. Background Brookhaven is a non-profit, age-restricted (62+), life care community providing housing and health care services to the elderly. The existing facility was constructed in 1987 on 26 acres. Modifications, special permits, and rezoning in 1994, 1999 and 2004 have resulted in expansion of the facility to its current size of 240 Independent Living Units, 20 Assisted Care Units, and 49 Skilled Nursing beds, for a total of 309 Units. Brookhaven currently pays an annual PILOT to Lexington which increases by 3% every year. This payment was negotiated with the original property sale and rezoning and was based on a percentage of the residential property tax at the time. As Brookhaven has expanded in the past, it has agreed to increase its base PILOT by the same percentage as the increase of the number of units it has added to the property, and to increase the resulting amount by 3% annually. The newly planned expansion at Brookhaven will add a new building of approximately 119,000 sq. ft. on the property and allow Brookhaven to add 49 Independent Living Units and 30 Assisted Care Units, while lowering the number of Skilled Nursing beds by 37, for a net increase of 42 units. This amounts to a 13.6%increase in the number of units at Brookhaven. This planned increase has triggered a review of the current PILOT payments made to the Town. At issue is not only an update of the existing PILOT agreement to accommodate the expansion in size and population of the facility, but also the effect that the planned increase in housing units, which count as "market rate" units for purposes of the denominator in the calculation of Lexington's ratio of affordable housing under Chapter 40B, will have on the Town's current 11.1% affordable housing ratio. 1