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Home My WebLink About1982-02-03-ASCC-min.pdf Adams School Conversion Committee Minutes of the Meeting of February 3r 1982 Present. Jim Crain, Anna Currin, Lillian MacArthur, Frank Feury, Mary Lou Touart, Betty Levine, Larry Kernan, Laura Fisher; also Bea Phear The meeting was called to order at 8 0.0. pm, On a motion duly made and seconded, voted by roll call vote, it was decided to conduct the meeting in open session while non-financial issues were being discussed and to go into executive session for discussion of financial issues, Developers were invited to discuss their proposals Community Development Partnership Mr Brett Donham, substituting for Mr Sweeney who was out of town on a family emergency, described the proposal for 30 units of congregate elderly housing, using the auditorium portion of the building for a once a day hot meal and community living room He said this area would also be available to community groups for their events The units will be aimed at those who have lived in Lexington and want to stay in the area, but are not able to remain in their own houses, or who choose a smaller apartment The revenue would be equivelant to any 30 unit development, however there would be less traffic and fewer cars because of the characteristics of the elderly population Mr Donham then addressed the specific questions the committee had posed 1 Re Wexler as contractor References were distributed, and the committee was invited to check them He said Wexler was selected by them because he had experience with recycling and had considerable financial strength They would be willing to consider a differenct contractor if the committee so desired 2 Completion date They anticipate completion within 1983, 3 Revenue Projections They anticipate construction costs to be $60,000 per unit for 30 units, and it should generate $34,000 annual tax income Each unit willbe rented for approximately $850 per month, which will include heat and communal space 4 Length of lease They are negotiating with Burke Mortgage Finance Company for a 20 year 17% mortgage, which means they would need 10 year renewable lease They hope to purchase the building for a nominal sum or lease for the life of the mortgage 5 Apartment characteristics Each unit will be self contained, with bath, living/dining and kitchen and good sized master bedroom They will include features such as grab bars, emergency signals, bathroom doors opening outward None will front north 6 Community access They are interested in talking with CoA and Minuteman Home Care about outreach from the building, and possible use as a supplemental neighborhood meal site and elderly outreach 7 Management Pam Shea, of 0KM associates (a housing development and management firm) runs the management end They have worked together on a number of projects She manages-the Norfolk Street elderly congregate housing in Cambridge Adams Feb 3, 1982 page 2 8 Parking location, Elderly requires fewer spaces, and the residents would need fewer than 30 There are now 42 on the site, leaving 12 for playground and library The location was set near the road for convenience to the library, and keep traffic from surrounding the building, but they are happy to negotiate relocation 9 Other Sites The committee is welcome to a board meeting of Cambridge Living Options for the Elderly; however the construction is not yet complete for a visit to the site They could also visit Norfolk Streets Frank asked about cost for lunch Donham said he, didn't discuss that with Sweeney, but normally it is optional, and tenants sign up a few days in advance and pay only for the meals they register for, less than restaurant Tenants will be able to use the communal kitchen for parties or their own cooking, which. will be fully equiped. Laura asked about age of tenants They plan no restrictions, but it will be marketed for the over 55, and would probably not appeal to younger tenants Chris Breslin,. a neighbor from Curve Street, mentioned that the children sometimes get noisy on the playground Waldorf School Steve Levy, Pat Brandes, Paul Casella, and Alfred Segrist spoke on behalf of Waldorf It is a private elementary school, grades nursery through eigth, with a current enrollment of 163 (.29 from Lexington) They said their proposal offers Lexington the best possible alternative, in harmony with the surrounding area and could offer the town a reasonable competative price, They are flexible to negotiate the kind of agreement, lease or purchase, but they prefer purchase, Then they could modernize the systems, windows , repair auditorium and gym Paul Casella explained fair market value It means the rent that the propoerty could command on the open market, and does not exclude the concept of highest and best use, which is the valuation premis, and takes into consideration what's legal, possible, appropriate and feasible Laura asked him what he thought the highest and best use was He said continued school use The Committee then moved into executive session to discuss financial issues Open session was resumed The Fusco and Klein Partnership Mr Klein represented the partnership He questioned the requirement that parking be provided for the recreation area He provided sufficient access but no parking, since it is a very small site Putting the parking close to Massachusetts Avenue is a matter of aesthetics, and it woudl be easy to sheild the cars visually, He said the longer the lease the better, as there is a question of how anyone can buy a condo on land that is not owned by the association, He had initially considered apartments, as there is little rental property available, but his financial study showed this not to be feasible Construction costs include demolition of the auditorium, renovation @ $50 per foot, site work, and professional fees totAling $1,900,000, Construction financing costs would be for one and a half years at 20% for $285,000, Total cost $2,185,000 for 25,160 rentable feet equals $83150, per foot constructions Expenses include insurance, water, water heating, Adams Feb 3 , 1982 page 3 and maintenance for $28,000 or $1 15 per foot, unheated and before taxes This, with financing costs would total $18 15 per foot per year for rental, or a monthly range of i; $1,170 for type A to $2,242 for type D if it were rental, He believes this is too high For condo conversion, construction would bethe same, and add marketing and developer's profit to get a cost of $100 per square foot) Costs would range from $77,500 to $148,500, before maintenance fees, taxes and heat are added He believes the total monthly cost to the buyer would be about $1,059 to _2,029 This is more expensive than condos that are advertized in Boston- ;; Mary Lou asked if that meant the would 'not bid further Mr Klein said that the constraints of the developers kit mean that the plan was tied up too tightly, and he doesn't think it can be solved intelligently Eyen if condos in this price range can be sold, he would not dare take the risk The Committee then voted to resume executive session with no intention of returning to open session The meeting was adjourned at 10 30 pm. Respectfully Submitted Beatrice Phear SECOND PROPOSALS WILL BE READY FOR PICK UP FROM THE POLICE STATION FRIDAY, FEBRUARY 26 NEXT MEETINGS Tuesday, March 2, Selectmen's Meeting Room 8 00 pm, to question developers Wednesday, March 3, Selectmen's Meeting Room '8 00 pm, for public information Monday, March 8, Selectmen5 Meeting 'Room, time to be announced, with Selectmen-to make recommendation Adams School Conversion Committee Minutes of the Executive Session, February 3, 1982 First Executive session Discussion with Waldorf School continued from the open session, Fred Sigrest introduced himself as a CPA from Wellesley who does a lot of work with charities, and has been the accountant for Waldorf for three years Over the last three years over 90% of their operating budget came from tuition and normal, xecurring fundraising The balance was From contributions There has alsways been adequate contributions There is no endowment with unrestricted principal except the building fund, which was created from donations and is deposited in a money market,fund. The building fund now has $423,000', He said the school sets tuitions each year based on a budget with accrual basis statements four time a year, He said it is as "well run as any client i ! I have" , Laura asked who made the donations Sigrist answered the student and family Pat said there is no association with other organizations, and they would be glad to identify their donors to one specific designee of the committee She said Waldorf schools are not formally affiliated, but there is an association that helps them solicit for capital improvements, Laura asked how many faculty Steve answered 14 full tim, 9 part time, and 5 staff Frank asked what has been the student growth, Pat said increased 50% this year, and could double again, but there is a ceiling li Larry asked if there was any statement of term, and how would they offset the loss of potential tax payments Pat answered that it had to be determined what these taxes would be buying in terms of services, and it is interdependent on the price of the building Second Executive Session The committee questioned whether the Community Development figures were realistic,, and it was decided to ask them to detail rent, It was unanimously voted to continue Community Development Partnership as a finalist, There were questions regarding Waldorf's salaries and the funding sources in Europe It was recommended that the Town will investigate their books further, Waldorf was unanimouslg voted to continue Waldorf as a finalist, It was unanimously voted to request that both developers submit their proposals as a ten year renewable lease on the land and purchase of the building Bea was instructed to send a letter to Mr, Klein, on the assumption that he did not want to continue as a finalist The Committee adjourned at 10 30 pm Respectfully Submitted, PpAl-Yl co Phcinr