HomeMy WebLinkAbout1983-02-14-STM-min -ci (WARRANT - SEE WARRANT FILE)
SPECIAL TOWN MEETING - FEBRUARY 14, 1983
The meeting was called to order by the Moderator, Lincoln P. Cole, Jr.
8 P.M. and immediately recessed subject to the call of the chair. The meeting
reconvened at 8:10 P.M.
There were 170 Town Meeting Members present.
The invocation was offered by Rev. Ted Petterson, Rector of the Church of
Our Redeemer. 8:12 P.M.
Town Clerk, Mary R. McDonough read the warrant for the meeting until further
reading was waived by the meeting. 8:13 P.M.
The Town Clerk read the Constable's Return of the warrant. 8:13 P.M.
Article 2. MUZZEY CONVEYANCE
Presented by Selectman Chairman, Alfred S. Busa.
MOTION: That the Selectmen be and they hereby are authorized to
(For convey the Muzzey Junior High School property on Massachusetts
adopted Avenue consisting of the building and the land immediately ad-
motion joining, but excluding the so- called soccerfield, to Sydney -Noyes
see Associates for the purchase price of $238,000 plus the construction
page of a senior center and on such other terms as the Selectmen shall
199.) determine; and that the Selectmen be and they are hereby authorized
to petition the General Court for an act to establish a non - profit
housing corporation to provide affordable housing in the Town and
to accept funds from the sale of Muzzey Junior High School and any
other available funds for such purpose.
8:15 P.M.
Mr. Busa spoke of the work of the Muzzey Conversion Committee. He
said that the committee had received 37 letters of interest and 12
proposals. Three developers were asked to present final pro-
posals and Sydney -Noyes Associates was the developer accepted.
He then asked that R. Kirk Noyes be recognized. 8:18 P.M.
Article 1. The Moderator stated that Article 1 would be open throughout the
meeting for committee reports. 8:18 P.M.
Article 2. (The following was filed, plus the plan, with the Town Clerk on
(Cent.) February 14, 1983 at 4:16 P.M.:
MEMORANDUM OF UNDER STANDING
This Memorandum of Understanding dated February 3, 1983, by
Sydney Noyes Anderson Associates Inc. (the Developer) sets forth
the Developer's proposal to the Town of Lexington (the Town).
WHEREAS, the Town desires to sell to the Developer the land,
buildings and other improvements located on Massachusetts Avenue,
Lexington, Mass. and known as the Muzzey Jr. High School (the
Property).
WHEREAS, the Town desires to have the Property renovated and
converted to residential condominiums and possibly a Senior Center
(the Conversion);
WHEREAS, the Town desires to maximize the extent to which the
condominium will be and will continue to be affordable housing;
WHEREAS, the Developer desires to purchase the Property and to
undertake the Conversion;
NOW, THEREFORE, in consideration of the premises, one dollar
($1.00) and other good and valuable consideration, the Developer
and the Town agree as follows:
(Special Town Meeting - February 14, 1983.)`
Article 2. Memorandum of Understanding (Cont.)
(Cont.)
1. Purcha and Sale. The Town agrees to sell the Property to
the Developer and the Developer agrees to purchase the Property upon
the terms and conditions set forth herein.
2. Price. The Developer agrees to pay the Town a sum equal to
the product of $6,100 per dwelling unit built times the number of
dwelling units built, less one (the manager's apartment). Such
sum less any credit for the Senior Center as hereinafter described
(the Price) shall be paid in full on or before the Commencement of
Construction, which shall be defined as the issuance of a building
permit, purchase of the Property and the delivery of the deed.
3. Below market Price. The Developer acknowledges that the
Price is below the market value of the Property if it were not
restricted as hereinafter provided and that such restrictions are
designed to allow the Town and the Developer to provide affordable
housing.
4. Condominium. The Developer agrees to convert the Property
to a residential condominium consistent with this Agreement (the
Condominium).
5. Number of Units and Unit Sizes. The Developer agrees to
convert the building located on the Property (the Building) into
not less than 65 dwelling units nor more than 71 dwelling units
including the manager's unit. The final number and types of units
shall be determined prior to the application for a Special Permit
from the Board of Selectmen. The final unit composition shall
include a variety of units including, but not limited to, one, two,
and three bedroom units, and the area of these units shall not be
less than 500 square feet nor more than 1400 square feet.
6. Selling Prices of Units. Subject to Sections 8 and 11, the
Developer agrees to offer units in the Condominium for sale at
prices based on the following schedule:
(a) Pre -Sold Units. At least 30% of the dwelling units other
than the manager's unit will be offered at an average base selling
price of $54,750 prior to the Commencement of Construction. Such
offering shall commence no later than two weeks after the issuance
of the Special Permit. Any units conveyed pursuant to a purchase
and sale agreement entered into prior to the Commencement of
Construction will be sold subject to the Deed Restrictions (as
hereinafter defined) and for the sake of calculating resale value
under the Deed Restrictions will be assumed to have sold for the
prices outlined under paragraph 6(b) hereof if the Buyer owns and
occupies the unit for at least three years, and if such Buyer owns
and occupies the unit for less than three years, the difference
between such prices shall be pro -rated on a daily basis and added
to the Buyer's actual purchase price.
(b) Units S old D C ons tr uction. After the Commencement of
Construction and prior to the Completion of Construction, which
shall be defined as the issuance of the first certificate of occupancy
by the Building Commissioner, any unit not previously under purchase
and sale agreement that culminates in a conveyance shall be offered
for sale at a average base selling price of $59,750. All units sold
during said period shall be subject to the Deed Restrictions.
(c) Units Sold.Within 90 days of Completion of Construction.
After the Completion of Construction and prior to the expiration of
90 days from the Completion of Construction any units not previously
under purchase and sale agreements that culminate in a conveyance
may be increased in base selling price by an additional $5,000 per
unit for an average price of $64,750. All units sold during said
period shall be subject to the Deed Restrictions.
(d) Unit Sold After the Expiration of 90 days from Completion
of Construction. After the expiration of 90 days from the Com-
pletion of Construction, any units not previously conveyed or not
then under purchase and sale agreements which culminate in a con-
veyance, may have an increase in the base selling price of an
_.. ..... .. -.. ..-
{(fir
(Special Town Meeting - February 14, 1983.)
Article 2. Memorandum of Understanding (Cont.)
(Cont.)
additional $5,000 for an average price of $69,750 and may be marketed
by the Developer without the Deed Restrictions. Thereafter, the
Developer may further increase the average selling prices provided the
Developer limits such price increases to increases of not more than
$2000 per month per dwelling unit plus any buy down or other pay-
ments made for the purpose of qualifying the purchaser with a lender.
Five percent of any such sales price shall be returned to the Town as
an increase in the original acquisition price.
7. Unit Sales Obligat The Developer may choose to
initiate construction prior to achieving pre -sales equal to 30% of
the units. For any unit for which a purchase and sale agreement is
executed but not exercised that unit shall be priced according to
the schedule in Section 6 as if it were never under a purchase and
sale agreement.
8. Minimum Number of A Units Guaranteed. Notwithstanding
anything to the contrary herein, the Developer agrees that, regardless
of the time of sale, 400 of the units other than the manager's unit
shall be sold subject to the Deed Restrictions. If such unit is
conveyed pursuant to a purchase and sale agreement entered into prior
to the expiration of 90 days from the Completion of Construction, the
price of such unit shall be restricted by whichever of Sections 6(a),
6(b) or 6(c) is applicable the date of the purchase and sale agree-
ment. If 40% of the units have not been sold with these restrictions
within 90 days of the Completion of Construction the selling price of
the balance of the units that must be sold to meet said 40% figure
may be increased over the prices established in Section 6(c) hereof
by the same amount that such prices would be allowed to increase
pursuant to the Deed Restrictions if such unit had sold on the nine-
tieth day after the Completion of Construction, prorated on a daily
basis.
9. Inc Qualificat of B The Developer agrees to
sell units under the provisions of paragraph 6(a), (b) and (c)
hereof only to buyers who qualify under the following income guide-
lines. Buyer income shall be determined by the average of the
buyer's adjusted gross income on his two previous Federal income
tax returns less all medical expenses during said period in excess
of three percent of the average adjusted gross income. Prior to
the expiration of 90 days after Completion of Construction, the
Buyer's annual income shall not exceed the following amounts:
1 person household $35,000
2 person household 40,000
3 person household 41,500
4 or more person household 43,000 plus
$1,500 for ea.ch
person in excess
of 4.
10. Deed Restrictions. The Developer agrees that all units
sold under paragraphs 6(a), (b) and (c) hereof or pursuant to the
guarantee set forth in paragraph 8 hereof shall be sold subject to
Deed Restrictions which limit the resale prices and are intended to
assure a relative position of future affordability. The Deed
Restrictions will restrict resale prices to the initial purchase
price of the unit (including the cost of any options selected by
the purchaser) increased by 4.0 percent per year compounded annually
(the Maximum Resale Price). The Deed Restrictions shall also limit
the annual income of purchasers at the time of the conveyance to an
amount not in excess of the following percentages of the Maximum
Resale Price:
1 person household 58.3%
2 person household 66.7°
3 person household 69.2%
4 or more person household 71.7% plus 2.5
for each person
in excess of 4
(Special Town Meeting - February 14, 1983.) _ 195"
Article 2. Memorandum of Understanding (Cont.)
Went.)
11. Option Packages for Buyers. The Town agrees to allow the
Developer to offer three optional up -grade packages to be acquired
at the election of each buyer. The following prices of these
optional packages are based on an average cost and will vary
across unit types.
(a) Energy package (triple glazed windows and air conditioning)
- $3,500
(b) Kitchen package (additional cabinets and a dishwasher)
- $1,800
(c) Bathroom option - $2,800 for second bath/ $2,000 for
1/2 bath.
The cost of any such options selected by a purchaser shall be
added to the prices set forth in Section 6 and shall be included in
the initial purchase price used to calculate the Maximum Resale
Price in Section 10.
12. Marketing of Condominium Units The Developer agrees to
make a best effort marketing attempt aimed at maximizing the number
of units sold with the Deed Restrictions. This marketing effort
shall, at a minimum include a direct mail informational brochure to
all Lexington residents, weekly advertising in the Lexington Minute-
man from the time of purchase of the building until 90 days after
the Completion of Construction or until all units are under purchase
and sale agreements or conveyed, whichever first occurs, and the
completion of a unit within 150 days of purchase of the building for
use in the marketing effort. Prior to the Completion of Construction,
potential buyers may submit a $500 refundable check to the Developer
to obtain a priority standing to select a unit in the Condominium.
Once the final number of units, mix, design, and condominium docu-
ments are complete a potential buyer may choose a specific unit and
execute a purchase and sale agreement upon submission of a $5000
non- refundable, interest bearing deposit.
13. Rental Units. (a) The Developer agrees to sell upon the
same terms and conditions as any other buyer would purchase such
units under this Agreement a to -be- determined number of units to
a Lexington based non - profit housing group formed or designated by
the Town for the purposes of rental or resale.
(b) Nothing in this Agreement shall preclude the Developer from
renting units if any remain unsold 90 days after the Completion of
Construction.
14. Resident Manager. The Developer agrees to maintain owner-
ship of one dwelling unit for the use of a resident manager. Owner-
ship of this unit shall be transferred to the Condominium Association
if and when the Developer relinquishes management services. The
Developer further agrees to make a best effort attempt to provide
management services for at least three years after completion of
construction and the Town agrees to support such effort. The Town
acknowledges that the management contract will have a clause allowing
the Condominium Association to terminate the contract without cause
on 90 day notice for the purpose of complying with secondary market
requirements.
15. Time Schedule. The Developer agrees to initiate a pre -sales
effort and complete pre - construction development activity so as to
allow a construction start no later than September 1, 1983. The
Town agrees that if 21 units have not been presold prior to that
date, or unforeseen factors arise, the date of a construction start
may be extended 90 days. If the Commencement of Construction is not
prior to December 1, 1983 the Town may rescind developer designation
or renegotiate with the Developer. If the Town so rescinds developer
designation, the Developer shall have no recourse against the Town
for expenses incurred, and the Town shall have no recourse against
the Developer for expenses incurred. Developer agrees to complete
construction within 18 months from the date of conveyance of the
Property to Developer.
�. .
(Special Town Meeting - February 14, 1983.)
Article 2. Memorandum of Understanding (Cont.)
(Cont.)
16. Surety Bond. The Developer will provide a $25,000 surety
bond, letter of credit, or equivalent to be held by the Town from
the date of the Commencement of Construction until site plan and
landscaping is completed as required by the Special Permit. The
construction lender will be provided with payment and performance
bond equal to the cost of construction in such a form as the lender
may require.
17. Senior Center. The Developer agrees to negotiate with the
Lexington Council on Aging to establish a senior social center of
approximately 7500 square feet within the building which shall be
presented to the Town Meeting as an option (the Senior Center). If
Town Meeting accepts the Senior Center option, the Developer_ will
construct the Senior_ Center and the Price shall be reduced by
$195,000. The Senior Center shall have an interest in the Condo-
minium Association based on a conventional formula of square footage_
The Developer agrees to guarantee that the Senior Center's share of
common expense in the Condominium plus the costs of heating, lighting
and cleaning the Senior Center but excluding any local real estate
taxes and the cost of the Senior Center's programs and services (the
Maintenance Cost) shall not exceed $14,000 per year as long the
Developer is providing management services for the Condominium but
for a period not to exceed three years. The Senior Center shall pay
the Developer $14,000 per year in twelve equal monthly payments, in
advance. if the Maintenance Cost shall be less than $14,000 during
any calender year the Developer agrees to return to the Senior Center
fifty percent of the difference between the actual Maintenance Cost
and the $14,000.
18. Conditions.
(a) This Agreement is conditional on the Town agreeing to (i)
assist and cooperate with the Developer in the implementation of the
renovation and conversion of the Property as herein described, in-
cluding, but not limited to, providing the Developer with access to
the Town's computerized list of the names and addresses of residents
of the Town for use in the Developer's marketing efforts; (ii) convey
(1) good and clear and marketable title to the Property subject only
to the provisions of existing building, zoning and other laws; en-
cumbrances of record which do not materially interfere with the
renovation and. conversion of the Property as contemplated herein, the
Deed Restrictions, and the Special Permit, and (2) full possession
of the Property free of all tenants and occupants, and (3) the
Property in the same condition as it now is, reasonable wear and
tear excepted; and (iii) cooperate with the Developer in obtaining
the approval of the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation for sale of mortgages on
condominium units to such entities.
(b) If the Conversion as described herein is not approved by the
Town Meeting of the Town on or before 1983, this Agreement shall
terminate, at the election of either party, and upon such termination
the Developer's deposit of $5,000 shall. be returned and all obliga-
tions of the parties hereto shall cease and this Agreement shall be
void without recourse to the parties hereto.
(c) If the Town Meeting approves the Conversion as described
herein, all of the approvals necessary or appropriate for such Con-
version have not been obtained and the Town is unable to comply with
its obligations under Section 18(a)(ii) or the Developer is un-
successful in obtaining financing for such Conversion, this Agree-
ment shall terminate, at the election of either party, and upon such
termination the Developer's deposit shall be returned and all obliga-
tions of the parties hereto shall cease and this Agreement shall be
void without recourse to the parties hereto.
19. Land Disposition Agreement. The Developer and Town agree
to enter into a mutually agreeable Land Disposition Agreement after
the approval of the Town Meeting.
(Special Town Meeting - February 14, 1983.) _.A 9 1
Article 2. Memorandum of Understanding (Cont.)
(Cont.)
IN WITNESS WHEREOF, the Developer has caused this Agreement to
be executed under seal this 3rd day of February, 1983.
SYDNEY NOYES ANDERSON, INC.
By: R. Kirk N oyes /Signe
R. Kirk Noyes, President
and Treasurer )
Mr. Noyes was recognized, for the first and second ten minutes, by
the Moderator at 8:18 P.M. and again at 8:38 P.M. as there were no
objections from the meeting.
Mr. Noyes gave a lengthy explanation of his proposal, mostly as
it appeared in the Memorandum of Understanding. 8:45 P.M.
Alfred S. Busa thanked the Muzzey Conversion Committee for the
long and hard hours of work that they had devoted to this conversion.
8:45 P.M.
Jacquelyn R. Smith, Chairman of the Planning Board, filed the
Report of the Planning Board on Art. 2 and voiced the support of
the Board of this proposal for the use of Muzzey Junior High
School and urged the support of the meeting. 8:50 P.M.
George L. Harris, Chairman of the Council on Aging, voiced the
support of his committee, stating that they felt that there was a
need for such a senior center and that it should be cost effective.
8:55 P.M.
Many questions were raised and answered during the discussion of
this article.
William J. Dailey, Jr., Chairman of the Appropriation Committee,
offered the following amendment:
That the figure of $438,000 be substituted for the figure of
$238,000. 9:14 P.M.
With the aid of slides, Mr. Dailey discussed his amendment.
9:18 P.M.
Selectman James F. Crain urged defeat of Mr. Daily's motion to
amend. 9:30 P.M.
Mr. Daily's motion to amend this article was declared lost by voice
vote. 9:31 P.M.
In response to a question .raised by James M. McLaughlin, Town
Counsel Norman P. Cohen stated that if the Senior Center did not
work out, it could be sold if there was a market for it.
9:33 P.M.
The question was raised by Richard A. Michelson as to the need of
a housing corporation where we already have a Housing Authority.
Mr. Busa answered that the Housing Authority was' reluctant to take
-- on additional work and that the guidelines for the housing corpora-
tion were different than for the Housing Authority.
9:52 P.M.
Norman P. Cohen offered the following amendment:
That the motion under Article 2 be amended by striking the words
"Sydney -Noyes Associates" and substituting therefor the words
"Sydney Noyes Anderson, Inc."
Mr. Cohen's motion to amend was declared adopted unanimously.
10 P.M.
?el� (S pecial Town Meeting - February 14, 1983.)
Article 2. R. Kirk. Noyes filed "A Proposal for Reuse of the Muzzey Junior
(Cont.) High School ". 9:57 P.M.
Margaret F. Rawls stated that she had quite a few doubts about
this proposal, one of them being the housing corporation. She
wanted to know the makeup, term of members, how many and wanted to
know the charge to the committee and also the scope. 10:13 P.M.
James F. Crain said that there would be five members who would
report back to the Selectmen and Town Manager annually. The terms
would be one for one year, two for two years and two for three
years. He added that the members would have experience in town
government, also a legal, accounting and real estate background.
This would be a private non - profit corporation. 10:16 P.M.
Marion K. Fitzpatrick, 15 Hathaway Road of the Silver - Haired
Legislature, spoke from the balcony in favor of the Senior Center.
10:18 P.M.
In answer to a question raised by Martin L. Hagerty, Town Counsel
Norman P. Cohen said that this motion required a two- thirds vote
for passage. 10:23 P.M.
Arthur C. Smith moved that the motion by amended by striking the
words following the semicolon, beginning "and that the Selectmen
be and they are hereby authorized to petition the General Court..."
to the end of the motion. 10:24 P.M.
After general discussion, pro and con, on the amendment, Sheila
Busa - Tassone moved the previous question at 10:35 P.M. The
Moderator doubted the voice vote, so a standing vote was taken as
follows:
Precinct In Favor Tellers Opposed
1 11 Sheila Busa - Tassone 7
2 10 Lynda A_ Wik 8
3 3 Suanne C. Dillman 1.0
4 8 Peter C. J. Kelley 8
5 9 James L. Silva 5
6 5 Edith. Sandy 12
7 8 Winifred L. L. Friedman 9
8 10 A. Patricia McCabe 1
9 8 John C. Eddison 8
At Large 15 John R. Campbell 5
TOTAL 87 73
The Moderator declared that the previous question motion was
adopted. 10:39 P.M.
Arthur C. Smith's motion to amend Article 2 was declared lost by
voice vote. 10:40 Y.M.
Frank Sandy asked for a standing vote at 10:40 P.M. which was taken
as follows:
Precinct In Favor Tellers Opposed
1 2 Sheila Busa - Tassone 15
2 1 Lynda A. Wik 17
3 1 Suanne C. Dillman 12
4 3 Peter C. J. Kelley 13
5 4 James L. Silva 9
6 4 Edith Sandy 13
7 9 Winifred L. L. Friedman 8
8 4 A. Patricia McCabe 8
9 2 John C. Eddison 13
At Large 7 John R. Campbell 10
TOTAL 37 118
Mr. Smith's motion to amend declared lost. 10:43 P.M.
(Sp ecial Town Meeting - February 14, 1983.) 19
Article 2. Main motion as presented by Alfred S. Busa and amended by Norman P.
(Cont.) Cohen now reads:
MOTION: That the Selectmen be and they hereby are authorized to
convey the Muzzey Junior High School property on Massachusetts
(AS Avenue consisting of the building and the land immediately adjoin -
adopted) ing, but excluding the so- called soccerfield, to Sydney Noyes And-
erson, Inc. for the purchase price of $238,000 plus the construction
of a senior center and on such other terms as the Selectmen shall
(See Ch. determine; and that the Selectmen be and they are hereby authorized
521, Acts to petition the General Court for an act to establish a non - profit
of 1983, housing corporation to provide affordable housing in the Town and to
Establish- accept funds from the sale of Muzzey Junior High School and any other
ment of available funds for such purpose.
Lex. Housing
Assistance
Board, Voice vote on main motion as amended was not unanimous, so a standing
Inc.) vote was taken as follows:
Precinct In Favor Tellers Abstained Opposed
1 13 Sheila Busa - Tassone 1 4
2 14 Lynda A. Wik 4
3 13 Suanne C. Dillman 1
4 15 Peter C. J. Kelley 1
5 14 James L. Silva 0
6 15 Edith Sandy 2
7 11 Winifred L. L. Friedman 6
8 11 A. Patricia McCabe 1
9 13 John C. Eddison 3
At Large 19 John R. Campbell 2
TOTAL 138 1 24
More than the required two - thirds having voted in favor, the main
motion as offered by Mr. Busa& :amended by Mr. Cohen was declared
adopted. 10:50 P.M.
Article 3. STREET ACCEPTANCE AND CONSTRUCTION
Presented by Alfred S. Busa.
MOTION: That this article be indefinitely postponed.
Adopted unanimously. 10:50 P.M.
Article 4. PARKING TICKET COMPUTER SERVICE
Presented by Stephen Michael Politi.
MOTION: That the sum of $4,500.00 be appropriated for the purchase
of parking tickets and for a computer service to process parking
tickets issued by the Police Department, and that such amount be
transferred from the Reserve Fund - Overlay Surplus Account.
10:50 P.M.
Mr. Politi gave a short explanation of this motion. 10:55 P.M.
William J. Dailey, Jr. stated that the Appropriation Committee
recommended favorable action on this motion. 10:55 P.M.
Motion, as presented by Mr. Politi, declared adopted by voice vote.
10:56 P.M.
Article 5. LEXPRESS CONTRACT
Presented by James F. Crain.
(See
Chap. 95, MOTION: That the Selectmen be and they are hereby authorized to
Acts of petition the General Court for an act to permit the Town to con -
1983.) tract for community transportation services for a period not ex-
ceeding three years.
10:56 P.M.
00 (Special Town Meeting - February 14, 1983.)
Article 5. Mr. Crain gave a short explanation of this motion. 10:57 P.M.
(Cont.)
William J: Dailey, Jr. stated that the Appropriation Committee
recommended favorable action on this motion. 10:57 P.M.
Motion as presented by Mr. Crain declared adopted by voice vote.
10:57 P.M.
Alfred S. Busa moved that this meeting be dissolved,and the motion was
adopted unanimously. 10:57 P.M.
A true copy.
Attest:
r
Mary R. McDonough, Town Clerk