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HomeMy WebLinkAbout2013-02-05-CEC-min-execMinutes of the Lexington Capital Expenditures Committee (CEC) Meeting February 5, 2013, Executive Session Date, Place, and Location: February 5, 2013, 5:00 A.M., Town Office Building, Reed Room (111) Members Present: Charles Lamb, Chair; Beth Masterman, Vice - Chair; Bill Hurley; David Kanter Member Absent: Jill Hai Other Attendees: Sara Arnold, Recording Secretary Documents Presented: None With Mr. Lamb, as Chair, having called to order at 8:02 A. M. the Open Session — which had been posted also to involve an Executive Session —he subsequently declared that an Executive Session was warranted under the Open Meeting Law Exemption 6 (to consider the purchase, exchange, lease or value of real property) as the discussion in an open meeting may have a detrimental effect on the negotiating position of the Town —and with the intention to reconvene in Open Session only to adjourn. A Motion to do so was made and seconded. Each member was polled and each voted "yes" The Committee went into Executive Session at 9:53 A.M. Potential Acquisition of Property at 33 Marrett Road The Committee reviewed and discussed the updates provided at the previous- evening's Selectmen's Executive Session (jointly with this Committee —Ms. Hai, Mr. Hurley, and Mr. Kanter in attendance; the Appropriation Committee; and the Community Preservation Committee) regarding the potential purchase of property at 33 Marrett Road. First, Mr. Kanter and Mr. Healy summarized the points made at that Executive Session: • February 12 was identified by the seller as the deadline for potential buyers to submit proposals —with the seller planning to make a decision by March 1St • The Town anticipates that four to six proposals will be submitted —with at least one being from an institution. • There may be a process for making counteroffers, but the seller hasn't said anything about that. • It is believed that the seller is not interested in selecting a proposal that includes affordable housing (including a Chapter 40B project). It was noted that if this were to be a contingency of the sale, then it reduces the value of the property. • The Town received two appraisals: One from "Foster" assumed approximately 50% institutional use and 50% residential use, and set the value at $7.7 million; the one from "Avery" assumed all residential and set the value at $4.9 million. Neither appraisal included a "by right" plan for how the property could be divided into individual lots. The Town separately contracted with "GCG" to develop such a plan. It reflects 11 or 12 lots —with 2 being reserved for storm - runoff retention. (The Selectmen believed a developer would find a way to handle the storm runoff without Page 1 of 3 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting February 5, 2013, Executive Session using what otherwise would be available lots.) That "by right" plan was shared, after the fact, with both appraisers. If the Community Preservation Fund (CPF) is used, the Town can't pay more than the appraised value with such funding. (There's no such constraint on the use of the Town's general fund toward the purchase.) • The Board of Selectmen plans to submit an offer of $8 million and includes the lease back to the seller (terms unspecified) of the Commander's House. Internally, it's contemplated that $7 million of that cost could be from the CPF. The Town is awaiting advice from Town Counsel as to how much of the Training Center (which includes the original mansion) is eligible for funding under the Community Preservation Act (CPA). Neither appraisal considered the lease -back of the Commander's House. • It's contemplated there would be additional costs of about $8 million for renovations if all of them were to be done —and there is no current commitment to how any renovations would be done and, if so, how they would be phased. • Robert Addelson, Assistant Town Manager for Finance, presented a spreadsheet with a model for the use of the CPF for all of the projects eligible under the CPA that the Town has either committed to or is considering in the near future, including the contemplated CPF -share of the purchase and the renovations at 33 Marrett Road. Under the scenario in that model, there will still be about $500,000 available in each of the out -years for each of the categories under the CPA and the CPF would not be driven into a deficit position. The table assumed 10 -year bonds at 4 %. Mr. Lamb commented that State matching funds under the CPA beyond FY2014 should not be used when modeling for any debt service. • Town Meeting would be told that the intended use of the property would entail using the primary building (the Training Center) as a Community Center and the majority of the remaining space would be open space. • The Selectmen noted that if the Town's bid is not accepted, it would be possible to take the property by eminent domain. Committee members commented on their current thinking regarding the Town's purchase of this property: • Mr. Kanter: He is concerned about the Town potentially spending $16 million for a community center when the Town has so many other needs and he is not convinced the community- center needs warrant such a large facility — especially one without a gym. He cautioned that the Community Preservation Committee has not voted on what portion of the purchase it would recommend to Town Meeting for use of the CPF. • Mr. Hurley: Based on the information available, this purchase will not impact the ability to pursue the other projects. He can support going to $8.5 million to purchase it. If the Town doesn't purchase it, the Town has to assume there will be 10 to 12 large homes built on the property. • Ms. Masterman: She supports the purchase, spending up to $8.5 million, but would like to see the renovations postponed until other projects are pursued. • Mr. Lamb: He concurs with Mr. Hurley's comments. Page 2 of 3 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting February 5, 2013, Executive Session Return to Open Session: At 10:25 A.M., it was moved and seconded that the Committee return to open session. Each member was polled. Vote: 4 -0 These Minutes were approved by the CEC at its Open- Session meeting on March 6, 2013, but without making the content public as it was still sensitive at that time. In response to a query by Mr. Kanter on April 11, 2013, Carl Valente, Town Manager, advised on April 12, 2013, that the content of these Minutes could then be made public and the CEC did so by submitting these Minutes to the Town's public archives on that same date. Page 3 of 3