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HomeMy WebLinkAbout2026-05-19-EDAC-min.docxTown of Lexington May 19, 2026, Economic Development Advisory Committee Remote Meeting Minutes Attendees: Rick DeAngelis, Charlie Minasian, Justin Fleming, Mitch Tyson, Jingshi Hu, David Pronchick Members Absent: Sam Ang, Steven Kaufman, Adrienne Ortyl Town Staff: Sandhya Iyer, Jay Abdella Select Board Liaisons: Doug Lucente Rick DeAngelis called the meeting to order. EDAC Meeting Minutes from April 21' Meeting Chair DeAngelis motioned and Mr. Minasian seconded the motion. Minutes were approved unanimously by roll call. Vacancy Updates Discussion centered around understanding retail vacancies in the Center. Chair DeAngelis proposed finding a volunteer retail broker to talk to the Committee about retail trends in comparable municipalities to Lexington. He said that he would reach out to several contacts. Chair DeAngelis asked Mr. Pronchick to reach out to members of Hanscom Air Force Base about inviting members of the base to provide updates. Mr. Pronchick said he would reach out to the new base civil engineer Dave Wong to come and speak with the committee at the next meeting. Chair DeAngelis also suggested inviting former Secretary of Economic Development Michael Keneally, and State Representative Michelle Ciccolo to provide perspective at the state level. EDO Updates Mr. Minasian asks for an update about 440 Bedford Street. Director Iyer mentioned that there was some interest in the building and some inquiries, but it did not materialize. She mentioned that the Town was looking at opportunities to connect with defense/space- sector companies to bring into Hartwell. Additional discussion focused on TIF (Tax Increment Financing), and how it has been used to jump start economic development. Mr. Tyson asked more information about how TIF's work, and how the Town taxes properties. Chair DeAngelis suggested to invite the Town Assessor to a future meeting to explain valuation, vacancy impacts, and the abatement process. Further discussion included the TIF process and parameters, and how 440 Bedford has the shell built, but not an internal build out. Chair DeAngelis discussed tax comparisons between Lexington, Burlington, Waltham, and how it is cheaper to go to other places than in Lexington. Discussion turned to vacancies in the Center. Director Iyer mentioned that Lexington Center is under 5% which is a healthy rate. She cautioned having zero vacancy. Mr. Minasian explained to Mr. Tyson how most tenants receive a triple net lease where they have to pay the real estate taxes which are impacted by Lexington's split tax rate. Mr. Minasian also mentioned that banks will not let people rent under a certain rate if they have a loan. Discussion moved to how much land is commercially zoned in Lexington, and how MBTA zoning is reducing the amount of commercial land and replaces it with residential housing that gets taxed at a lesser rate. Director Iyer explained that there was a concern with Hartwell Avenue and how it had a vacancy rate of 30%. She also mentioned that activity has slowed down among other properties on Hartwell Ave and Maguire Road. Mr. Tyson inquired about the abatement process. Mr. Minasian responded and said it was difficult to get an abatement as you would need closer to a 80% vacancy rate. Additional transitioned to how other communities have anchor institutions that allow the creation of incubators and other companies to thrive. Director Iyer mentioned that she was working on trying to find educational institutions that could come, but she mentions that high rents are a barrier. Mr. Tyson raised a question about targeted tax abatement relief to encourage development and spur activity without losing revenue. Chair DeAngelis asked Mr. Lucente about his thoughts on the proposal. Mr. Lucente said he liked the outside the box thinking, but it also could lead to equity issues as well as whether Lexington can do it legally. Chair DeAngelis discussed next steps and who the Committee should speak with next. Consensus centered around bringing the Assessor to a future meeting. Mr. Lucente brought up the tax rate setting, and discussed the implications of moving around the tax rate of 1.75 which is the maximum allowed rate for commercial properties. He noted that the Select Board is not favorable to move the rate more towards residential properties, but he is open to the idea. Mr. Tyson asked about whether the Town could move the tax rate for smaller businesses, and Mr. Lucente and Ms. Iyer replied that it was the State that mandated the flexibility for tax setting, and that was not allowed. Ms. Iyer discussed rebate options that the State offers for spaces with large vacancies. Mr. DeAngelis asked for the Assessor to be invited to a future meeting, and for a timing that works for the base representative at Hanscom. Ms. Iyer mentioned that the next meeting is June 16t" Adjournment Mr. Tyson motioned to adjourn, Mr. Minasian seconded. Roll Call was unanimous.