2009-10-28-AC-min - Laserfiche WebLink

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October 28, 2009 Minutes Town of Lexington Appropriation Committee October 28, 2009 Place and time: Town Office Building, Room G-15,730 p.m. Members present: Alan Levine (Chair), Glenn Parker (Vice - Chair), John Bartenstein (Vice Chair and Secretary), Mollie Garberg, Pam Hoffman, Susan McLeish, Eric Michelson, Rob Addelson (ex officio, non - voting) Also present: John Connery (Connery Associates), Joe Zink (Patriot Partners), Robert Buckley and Ethan Solomon ( Riemer & Braunstein), Peter Corbett (Goulston & Storrs), Susan Yanofsky, Dawn McKenna, Joe Pato The meeting was called to order at 7:40 p.m. 1. Patriot Partners Rezoning Financial Analysis. John Connery of Connery Associates, together with Joe Zink of Patriot Partners, reviewed with the Committee a financial analysis of the Patriot Partners rezoning proposal at Lexington Technology Park that will be addressed under Article 2 at the Special Town Meeting (STM). Mr. Connery projects a 0.13 ratio of incremental costs to anticipated revenue (which, he said, might vary by about 10% either way depending on economic conditions); gross annual taxes at full build out of $2,500,000, and net annual revenue of $2,218,000. He also projects $1,500,000 in one -time building permit fees and $600,000 to $1,500,000 in traffic mitigation funding. There was discussion of the methodology used to estimate assessed valuations of the building ($225 per square foot) and associated parking structures ($500 per parking space) and other assumptions that underlie the analysis. There was also discussion of commitments that have been made to neighborhood residents relating to traffic calming on Shade Street, building reflectivity, and the mitigation of noise created by unenclosed HVAC equipment on the roof of one of the existing buildings at the site. 2. Cubist Rezoning Financial Analysis. Mr. Connery, together with Robert Buckley of Riemer & Braunstein, presented a similar tax benefit analysis of the rezoning proposal for expansion of the Cubist Pharmaceutical facilities, located at 45, 55 and 65 Hayden Avenue, that will be addressed at the STM under Article 3. Mr. Connery estimates a 0.16 cost to revenue ratio; gross annual taxes of $590,000; and a net fiscal benefit to the Town of $500,000 annually. He projects approximately $300,000 in short- term revenue from construction- related permits and up to $585,000 in traffic mitigation funding, depending on the number of parking spaces that are created, under an agreement that has been reached with the Board of Selectmen. Mr. Buckley reported that a decision has been made to build a five -story parking structure along with the building expansion. He emphasized that both the Cubist expansion and the Patriot Partners expansion would involve the creation of lab /office space, which generates a relatively high return in tax revenue with a relatively small increase in personnel and resulting traffic compared with other potential uses; and that Lexington is now becoming a "magnet" for life- sciences development that makes the area highly desirable. -1-