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HomeMy WebLinkAbout1982-11-23-MSCC-min.pdf Cfn MUZZEY CONVERSION COMMITTEE Q -rcmM utes of the Meeting of November 23, 1982 urME a 1 V Present Alfred 2- 1 Se Jacqueline Smith, Margaret Rawls, George Harris, Don Giller, Mary Shunney also John Nolon, consultant, Susan Adler, Assistant to the Town Manager, Beatrice Phear, Human Services Coordinator The Meeting was called to order at 7 30 pm Mr Busa welcomed the audience and explained the evening's procedures and asked Susan Adler to read the Charge to the Committee from the Board of Selectmen. The developers were then invited to make their presentations and respond to questions Arlington Park Management Stan, Sokol, Arlington Park Management Richard O'Neil, Architect, Interact, Inc Robert Gundersen, Attorney Robert Cronin, HJP Construction Company After a brief showing of slides of former projects, they described their concept as 50 units of condominium owned housing Affordability would be a direct reflection of costs, proposing that fees be fixed at the beginning of the project, and construction costs kept as a variable They estimate the average sale would -be $67-$74 per square foot, for approximately 42,500 square feet of housing The construction costs can be identified better after they are in the building, and the estimate is based on past projects formula, with a possible 10% variation Affordability would be achieved by skewing the prices, with 20-30% paying below average and 20% paying above average Affordability would be maintained through the creation of a deed restriction allowing resale to include origional price, plus improvements, plus an inflation factor based on the CPI This would be monitored by a Housing Trust, which would equal the difference between the below market prices and the market prices, and would have rights of first refusal The trustees would be appointed by the town. The limits on profits to the owner would still allow them to see a return on their investments Mr Busa asked if they had done this type of development in the past They said they are marketing agent for a development in Cambridge, with 21 of the 54 units skewed down to belaamarket, so they have that type of experience Mrs Rawls asked about the 'partnership" with the town They said the town has an asset and creates the affordability by being willing to work with the developer If purchase price for example, were one million, that would add $20,000 per unit, plus the soft costs and would take the total over $100 per square foot They will talk about the offer in executive session Mr Busa asked if the controls were geared to all the units or just the below market ones The answer was all units Mr Harris asked about the resale restrictions, and use of CPI They said they could also limit the capital improvements allowed, and that a different index could be used if the town preferred 2 Mrs Smith asked about putting the parking in the garage, if it was more expensive They felt the gym was not useful space, and they wanted to get the parking near the building They also offered an alternative at-grade parking scheme, which would be cheaper The alternate site plan was distributed and shows a foot bridge to the entrance Mr Giller asked about the mix of elderly and families They felt that the older portion of the building was more suited to one bedroom units, but it was not necessary to separate by age The elderly like to have families around, as long as they can also get away from them. He felt that issues that arose were usually a function of managemnt rather than behavior of the residents Mr Harris asked about the size of the three bed units, They would be 1,350-1,250 square feet Mr 'Harris asked about their thoughts on not having a senior center They thought it not compatible with the form of ownership and the mechanism for maintaining affordability Also the size related to parking made it less appropriate to the site They said they couldn't provide everything Mrs Smith asked if the affordable units would be smaller No, the skewing will take place within each type of unit Mr Nolon asked about the decision to limit to 50 units and remove the gym They said the sloped floor meant it would have to be totally reconstructed, which did not make sense, but they are willing to make the determination on the number of units with the town Mr Nolon asked how the housing trust would work in the initial marketing They said the primary function of the trustees is to reflect the goals of the town, and to see that the developer does what he said Mr Nolon asked about banks having trouble with the deed restriction They answered that banks might want to be able to forclose, and we can do it through a second mortgage vehicle They will have to work further with attorneys on this A gentleman from the audience spoke in favor of having a senior center Mr Busa said he wanted to assure the seniors that the Board of Selectmen is well aware of the need, but haven't finalized a place; however the purpose of this meeting is not to discuss that issue, which is a political one Another gentleman from the audience asked if a senior center could go in the gym. They answered, yes if the town wanted, but the developer didn't prefer Another gentleman asked about legal precedent regarding tee limiting of sales price They answered that it would be part of a contract, and there was no problem, but they did not know of any challanges to that mechanism. A lady from the audience added that such a mechanism had been used in one site in California since 1974 Mr Busa thanked Arlington Park Management. 3 Housing Innovations, Inc Richard Lappin, Vice President Matthew Hobbs, Berg & Co, mortager Joe Polonski, Tenant Services Randal Lilly, Columbia Construction Co Robert Verrier and Darlene Powers, architects After a brief showing of slides of former projects, they described their proposal for 65 units of elderly congregat housing, with 14 units (25%) in the affordable category A congregatt. facility fits between a standard elderly housing development and a nursing home Residents would have the opportunity of at least one meal a day, housekeeping and laundry if needed, trips, and recreation There would be a room available for medical people to come in,. although that service would not be provided by the developer as part of their services They also are proposing the option of a senior center, which they feel would fit in well The staff that would be available to residents includes resident manager, assistant, secretary/receptionist, front desk coverage in evenings, superintendent, and janitor The way to make it affordable is to use tax exempt financing, with the affordable units fitting section 8 guidelines of $381 for a single and $435 for two They would envision a minimum of $275 for the affordable units They think the time needed to assemble financing is about 2 months on the outside Mr Busa asked about the price for the other units They said it is a two-fold scheme, with $1,200 per month and an initial refundable deposit of $25,000 Mr Harris asked if that deposit were subject to interes- No, its trade-off• is cutting debt service, and without it the rents would go up about $250 (12%) Mrs Rawls asked if the subsidized people would have the same services The answer is yes, no one need know who was subsidized. Mrs Smith asked about maintenance of affordability They said there would be an agreement with the town- Mr Harris asked about the management of the property It would be managed by Tenant Services, at the market rate Mr Harris asked about the possibility of other people than elderly They said there was room for flexibility however, they felt there was a real need for elderly congregate, and it should be available to the frail elderly Mr Giller asked for clarification about which services were included The trips and programs, such as exercise, utilities, space for doctor and staff Excluded would be meals and housekeeping, which would be extra Mrs Smith asked about the use of space if there were no senior center It would be vacan, for storage, or developed for additional programs for residents Mr Busa asked about their congregate experience They said it was an extension of their elderly projects, although they haven't yet developed a congregate project. Mr Nolon asked about how they would handle rent increases over time, as costs go up They said it would be in proportion, as they have the legal limitation 4 Mr Nolon asked about the placing on the National Register They said they can't know if it would be accepted, but they can still achieve investment tax credit on rehabilitation. A gentleman from the audience asked about the size of the units A one bedroom unit would average 780 square feet A gentleman asked how this was congregate, as it sounded like an apartment to him The answer was based on the support services offered Mr Harris asked, if their target population was people who were independent, why include such extensive staff, and how much would the rental be reduced without it The answer was about $200 off the market rate units without the support services Ms Adler asked what their understanding of taxes was They said they planned to go by normal guidelines A gentleman from the audience asked about maintaining the balance among frail and independent people in the building They answered that a normal evolution would tkae place, and there was no need to control it. They were helping people lead active and independednt lives Mr Busa thanked Mr Lappin Fafard Bob Maschi, developer Phineas Alpers, architect They have been in the construction business a long time, and all their units are in the $50,000 to $70,000 range They plan conventional financing, and anticipate a tax yield to the town of $100,000 per year Since it is important for the community to predict the impact of a development, they did their projections based on their past projects, and they anticipate 128 people with 100 cars and 15 children for Muzzey The maintenance of affordability would be through the master deed, which would restrict it to owner-occupied units, have a conversion restriction that prohibited combining units, restrictions on improvements to the exterior (eg pools, tennis) , and the units will naturally appreciate according to the CPI They feel the owner should be entitled to his share of appreciation The units would be 600-700 square feet for one bedroom and 800-1,000 square feet for two bedrooms The anticiapted condo fee is $50 per month, including snow, lawn, maintenance, repainting; excluding taxes, trash, utilities Mrs Rawls asked how they arrived at costs They said a typical two bed would be 1,200 feet, with 11 bath, eat-in kitchen, and lying room at a purchase price of $54-70 per foot Construction would be about $40-$50 per foot, including exterior site work Mr Harris asked about the time frame for financing They thought about 60 days Mr Harris asked about the management of the project They said there would be a condo association, with board of governors, working within the master deed Usually a management company is hired to do the services Mr Harris asked if the town could be involved in the selection of the management company, which they had no problem with Mr Harris asked about the exterior changes and parking They said the parking would 5 be in the rear, and the only exterior changes would be cleaning the building and altering windows, with some modification to the stairways Mr Nolan asked about the units in the gym They said there wobld be a lot of new construction in that space Mrs Rawls asked about eliminating the three units in the shop They said it was possible, but they attempted to show the maximum number, as their price to the town was based on the number of units developed A lady in the audience asked about the maintenance of affordability They said it was throught the master deed restriction, and the twon could also ask for a restriction on resale, if they wanted e Mr Busa thanked Mr Maschi Community Development Partnership Tadhg Sweeney, architect Sonia Michelson, Micheson Associates Matthew Hobbs, Berg & Co Pam Shea-Rogers of OKM Co (managers) - not present They are planning 65 units of elderly congregate housing plus a senior center, auditorium, and dining facility that would be open to the town. The service plan includes housekeeping and five meals a week The units would be 800 square feet for one bedroom and 1,200 for two bedroom, with 16 of them being the larger'size The gym area would be made into the senior center, on two levels with a separate entrance Support programs to the residents include 5 meals a week, a resident superintendent, a full time program manager, and security, weekly maid service, and weekly visiting nurses throught Symmes Hospital At today's financing, the market rate for this would be $1,000 per month average with construction costs being fixed and the variables being operating costs and interest costs, depending on acquisition price Taxes then would be 1211% of net income If the town would forgo acquisition, it would lower the units by $150, and if they use the federal tax act and provide 25% low income, it would bring the mortgage down another 2 points, which translates to $50 per unit per month. Compared to other current rental properties, it is good, especially with services In Woburn, the Country Club Heights are now congregate at $1,400 per month with a six month waiting list. We have experience in this area, through the Captain Eldridge House in Hyannis Mr Harris asked if the dining room was open to all The answer was yes and it would be the dining area for the senior center Mrs Adlers asked about that in terms of the no commercial use prohibition_ They said that it wouldn't be commercial, only a service to residents and the seniors, as the current senior center is doing Also they have to give some guarantee to the food service people as to orders Mrs Rawls thought the auditorium seemed close to the apartments, and she questioned access to the bathroom- They answered that they hadn't completed the architectural work in great detail, but were planning to seal off that space except for emergency access The capacity of the auditorium would remain unchanged 6 Mr Nolon asked if they got the tax-exempt financing and then had 25% low income units at $350, what would happen to the price of the other units Is there a way of maintaining the $850 cap? They answered that they could lower the rent for everyone due to the lower interest rates Mr Busa thanked Mr Sweeney Upon a motion duly made and seconded it was voted by roll call vote, with Busa, Harris, Giller, Shunney Rawls, and Smith all in favor, to adjourne to executive session for the purpose of considering the purchase, exchange, lease or sale of real property There was no intention of returning to open session Upon motion duly made and seconded it was voted to adjourne the meeting at ll 20 pm. Respectfully submitted, Beatrice Phear