HomeMy WebLinkAbout2013-05-09-AC-minMay 9, 2013 Minutes
Minutes
Town of Lexington Appropriation Committee
May 9, 2013
Place and time: Reed Room, Town Office Building, 7:30 p.m.
Members present. Glenn Parker, Chair; John Bartenstein, Vice Chair and Secretary; Alan
Levine; Susan McLeish; Jonina Schonfeld; Rob Addelson (non- voting, ex officio)
Members Absent: Robert Cohen; Mollie Garberg; Eric Michelson; Richard Neumeier
Other Attendees: Carl Valente, Town Manager; David Kanter, Capital Expenditures Committee;
Andrei Radulescu -Banu, Town Meeting Member
The meeting was called to order at 7:38 p.m.
1. Announcements: Mr. Bartenstein reported that he and Ms. Schonfeld recently attended
the Selectmen's Tax Deferral and Exemption Study Committee meeting. The current work
program to assist senior citizens with their property tax obligations is not using all the funds that
have been appropriated by Town Meeting in recent years, triggering an interest in changing some
of the guidelines for program participants. Changes that have been considered include increasing
the wages for those who participate in the program, increasing the maximum number of working
hours allowed, and increasing the eligibility income threshold. On May 20, the Tax Deferral
Committee expects to present some modest recommendations to the Selectmen.
Mr. Parker attended the Town Meeting Members Association Executive Committee meeting on
May 8. At that meeting, School Committee Member Mary Ann Stewart announced that the
School Department expects to return a smaller amount of funds to the General Fund at the end of
the current fiscal year as compared to previous years. Last year the School Department returned
approximately $2,000,000; this year the Department expects to return approximately $185,000.
Costs associated with transporting non - resident students, placed by the state in temporary living
arrangements in Lexington, to their home -town schools are a significant factor affecting the size
of the year -end surplus.
Mr. Levine reported that the Ad hoc Town -wide Facilities Master Planning (MP) Committee
plans to submit a report to the Selectmen by June 1. A draft outline was reviewed on May 8, and
a first draft may be made available on Friday of this week. Mr. Levine said he had submitted
some written suggestions for the report. He noted that the MP Committee has not yet made
many of the decisions that will be necessary for the report, so they will need to do a lot of work
over the next few weeks. The MP Committee plans to meet on May 15 and May 22.
2. Tax Increment Financing (TIF) for Hartwell Ave. Property: Mr. Valente reported
that the Town recently received an inquiry about a potential TIF request for property on Hartwell
Avenue from uniQure, an Amsterdam -based bio -tech company that is interested in opening a
manufacturing facility in the U.S. It will be a bio- safety level 2 facility, which is allowed in
Lexington. The company is looking at two potential locations in Lexington, nos. 17 and 113
May 9, 2013 Minutes
Hartwell Avenue, and one location in Woburn.
The company is licensed in Europe to generate gene therapy drugs and is pursuing a Federal
Drug Administration license. If it decides to locate its manufacturing operations in the US, it will
need a facility with 35,000 - 50,000 square feet of space, of which 14,000 square feet must have
24 -foot ceilings to accommodate the manufacturing component. The height requirement would
require raising the roof at 113 Hartwell or constructing an addition onto the building at 17
Hartwell. The build -out costs are estimated at $10 -15 million; construction will take six to nine
months. The facility would be staffed at a relatively low density with approximately 100
employees earning salaries in the range from $45,000 to $95,000 annually.
Mr. Valente explained that this situation will evolve quickly. The uniQure board is expected to
vote on Monday, May 13, on whether to pursue a manufacturing facility in the U.S. If it votes in
the affirmative, the goal will be to have the facility operational by early 2014. Mr. Valente
distributed copies of a letter from the Board of Selectmen to the U.S. representative of uniQure
expressing support of discussions regarding a TIF agreement. The letter explains that such an
agreement requires approval by Town Meeting, so the Selectmen have tentatively scheduled a
special town meeting for June 17, 2013. Mr. Valente noted that Woburn's City Council, which
meets every two weeks, could approve a TIF in very short order. He added that an approved TIF
opens the door to other grant opportunities for a business, such as those associated with the
Mass. Office of Business Development.
Mr. Valente noted that Hartwell Avenue currently has a vacancy rate of approximately 35 %, and
that 17 Hartwell Avenue is currently vacant. State grants may be increased when a company
leases space in a vacant building. He also noted that this is a good time to seek state aid for
infrastructure improvements.
In response to questions, Mr. Valente said that at both Hartwell Avenue locations, a new tenant
may incentivize the property owner to expand and /or upgrade facilities on their properties. Mr.
Addelson explained that assessments for tax purposes are affected indirectly by the overall
vacancy rate for business properties in the region; the assessment of an individual property is not
set based on its occupied /vacant status. There are different assessment categories, and a lease
with uniQure would likely lead to a change in the assignment of the leased building to a category
with generally higher values.
Mr. Valente noted that the Town hopes to make substantial infrastructure improvements in the
Hartwell Avenue area, which would likely be funded with both state and Town money. Mr.
Bartenstein urged that a cost - benefit analysis of such improvements be conducted, laying out the
expected costs to the Town and anticipated revenue increases, over 10 to 20 years. Mr. Valente
said that about six years ago the town completed a build -out study of Hartwell Avenue, but it
didn't include the tax revenue impact.
Mr. Valente reported that uniQure is planning to meet with the Selectmen on May 20. He
invited the Appropriation Committee to assign one or more liaisons to work with the Town
during negotiations with uniQure.
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May 9, 2013 Minutes
3. Article 2, Spring 2013 Special Town Meeting: Mr. Addelson reported that the Special
Town Meeting motion on Article 2, approving the purchase of the Marrett Road property, did not
correctly identify the intended source of the funds to be appropriated. The motion said that
$3,560,000 would come from the tax levy while it should have said approximately $1 million
would come from the tax levy and $2.5 million would come from the unreserved fund balance
(free cash). This doesn't invalidate the article but it could result in demands on the general fund
that exceed the estimated revenue, which would create difficulties in setting the tax rate if not
mitigated. If revenue from new growth comes in higher than currently estimated by $2,500,000
or more, this could potentially alleviate the problem, but this is, at best, a remote possibility. Mr.
Addelson plans to pursue adjusting the wording at a special town meeting prior to December,
either on June 17 or at a fall special town meeting.
4. Selectmen's Goal Setting: Mr. Parker said that he would like suggestions for the
Selectmen's FY2014 goal setting submitted to him by 5 p.m. on Saturday, May 11. Ideas
identified during the meeting were:
• Making adjustments to the Senior Tax Incentive Program (this may be addressed at
the Selectmen's May 20 meeting)
• Funding for Other Post Employment Benefits (OPEB)
• In -house legal services
• Participation of the finance committees in discussions with the Board in regard to tax
rates and tax relief, perhaps at an early financial summit meeting.
5. Minutes: There was a motion to approve the minutes for March 18, 20, 21, and 27, and
April 1, 3, and 8 with technical corrections being incorporated. The motion passed.
VOTE: 5 -0
6. Next Meeting: The next meeting was scheduled for June 5, although it was recognized
that an earlier meeting may be necessary if a special town meeting is planned for June 17.
7. Adjournment: The meeting was adjourned at 9:38 p.m.
A list of documents and other exhibits used at the meeting is attached.
Respectfully submitted,
Sara Arnold
Recording Secretary
Approved June 6, 2013
May 9, 2013 Minutes
Exhibits
May 9, 2013
1. Meeting Agenda posted by Glenn Parker, Chair
2. Potential TIFApplication, May 9, 2013, distributed by Mr. Valente
Letter from Board of Selectmen to Philip Astley- Spark, President U.S., uniQure, May 9,
2013, distributed by Mr. Valente