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CAPITAL EXPENDITURES COMMITTEE REPORT TO OCTOBER 16,2017, STMs 2017-2&-3 Project Description(CPA Category) Amount Requested Funding Source Committee Recommends (a) Supplemental Funding for Affordable Housing at 52 Lowell Not Applicable Not Applicable Indefinite Postponement Street(Community Housing) (7-0) LexHAB plans to move this Article for Indefinite Postponement. An architect has been hired and it is anticipated that LexHAB will have firm estimates for the total cost for this 6-unit project after the completion of construction documents. At that time, an Article could be included in the 2018 Annual Town Meeting to request whatever supplemental funding is needed. Project Description(CPA Category) Amount Funding Committee Recommends Requested Source (b) Purchase of 44 Adams Street Property(Open Space) Unknown CPF Pending ANALYSIS At the time of this report, the CPC had not decided on its recommendation to this Special Town Meeting on the use of CPF. If a CPC recommendation is made, it would be that CPF be appropriated for the purchase of approximately 27,600 square feet of land abutting the Town-owned Chiesa Farm conservation land at 44 Adams Street with the dollar amount of any use of CPF for the purchase is capped by a formal assessment's value. (The cap is by statute.) CPF could also be use for legal expenses, including those for the preparation of a conservation restriction; a land survey and plan; deed recording; and to pay a non- Town entity to hold, monitor, and enforce the conservation restriction on the land. The parcel of land to be acquired abuts the south edge of the Chiesa Farm, facing Adams Street, and is zoned RO (residential development). Until recently it contained a single family home. The lot and structure were purchased by a developer who took down the existing house in order to build a larger house in its place. In addition to the purchase price of$850,000, the developer expended money on site work and building design and on razing the previously existing structure. It is believed that the developer is willing to sell the parcel to the Town as long as he is compensated for his out-of-pocket expenditures and a reasonable portion of his expected profit. The Chiesa Farm meadow is owned by the Town as conservation land and is accessible to the public. It is one of the few remaining examples of Lexington's agrarian history, and one of the Town's most attractive vistas. It currently occupies approximately 23 acres, bordered on each side by twentieth century residences and a barn. Purchase of the additional parcel of land would expand the conservation land by approximately 0.69 acres and is supported by the Conservation Commission. As open space, the purchase is eligible for CPF, but only up to the appraised value of the land. Because of the investment already made by the developer, the purchase price to the Town may exceed the appraised value of the parcel by a considerable margin. Therefore, if the Town elects to make this purchase it would have to seek a portion of the funding from some source other than CPF. CONCLUSION Before recommending use of CPF, this Committee prefers to review the CPC's current finance-projection model showing existing and projected balances for each statutory funding reserve, unbudgeted reserve balances, and previously approved and projected debt-service obligations for each funding category over the near term. At the time of this report, an updated projection model was not available. Without it, the Committee cannot judge whether the proposed appropriation would be prudent at this time,particularly as it appears to require significant co-funding from sources other than the CPF. At the time of this report, this Committee was awaiting the CPC's decision with regard to this proposed request. 13