Wilber School Redevelopment Committee and Board of Selectmen Joint Meeting

Executive Session September 25th, 2006

Minutes Amended September 28, 2006

Approved Wilber School Redevelopment Committee--October 4, 2006

Approved Sharon Board of Selectmen--October 10, 2006

Approved for Release--October 29, 2007

Committee Attendees

David DePree - Chair	Marcia Liebman - WSRC
Michael Baskin - WSRC	Melissa Mills - WSRC
David Gordon - WSRC	Joel Tran - WSRC
Ed Hershfield - WSRC	Greg Waugh - WSRC
Marilyn  Kahn - WSRC	Richard Powell - BOS
Phil Kopel - WSRC	Ben Puritz - Town Administrator
Bob Levin - WSRC	Joe Roach - BOS

Developers

Connolly & Partners                                             Frontier Group

Charles Eisenberg	Tadd Clelland - Senior Living
Dan Ricciarelli - FATA	Robed Larkin - Senior Living
Jim Alexander - FATA	Ken Hoffman - CWC Builder
William Connolly (father) - Connolly & Partners	Stephan Sousa - Sousa Design
William Connolly (son) - Connolly & Partners	Joseph Timility - Frontier Enterprises
	Alan Zimlicki - ASZ Associates

Meeting called to order at 7:45 pm by David DePree.

Connollv & Partners

• DePree explained that the purpose of the conversation is to help the committee .recommend a developer to the Sharon Board of Selectmen who will negotiate and execute the contract.
• Connolly (father) believed the pivotal questions were (1) if he does not receive funding and (2) if there is a fatal flaw with the building preventing rehabilitation. As to funding, he said that if he does not get tax credits for affordable housing, he will have to substitute another project that will be fiscally feasible for him, such as a municipal campus with a library. The next tax credit round for low incoming housing credits is scheduled for February, but may be pushed back as late as April because a new state government may want to review criteria before calling for applications. Best case scenario for completion would be Sept 2007.
• Connolly also pointed out that the proposal includes abatement of the building. His team wants its architect to be involved to ensure there is no building failure. Gordon interjected that another committee is managing the abatement process and it is difficult to evaluate; Baskin stated that the Town entered into contract work already but perhaps it could be amended to leave the existing roof and windows in place. The abatement bid was below estimates so extra funds may be available to add temporary patches to secure the building but we do need a quick turnaround. The building has been vacant for 28 years and is deteriorating at an accelerating rate. If the building is not completely abated in a short period of time, the town is faced with the liability to the community with a potential threat to public health. Connolly offered $10,000 in addition to the $10,000 deposit we already have to be used to help encapsulate the building. (This money would then become non-refundable.) Baskin/Waugh are meeting with the Sharon Standing Building Committee tomorrow evening and will work on possibly amending the contract to a limited degree with a change order; however, the majority of the abatement will proceed as contracted. Puritz will get an opinion from the Town Counsel as to whether the Town needs to vote to change the contract or if discretion allowed. Gordon questioned how the plan is affected if Connolly can't do the abatement; Connolly said the key is the removal of the roof and windows and if those physical elements remain, it will be okay.
• Levin said that if the library became an option, either by leasing vs. other alternative, they would have to submit/resubmit for construction allowances. Levin was also concerned with any fiscal loss the Town might face by leasing the library as opposed to building it and getting the tax credits. Connolly stated that inclusion of library construction is not critical to proposal.
• Tran clarified that 100% of the residential units would qualify for 4OB. Connolly stated the apartments are family oriented. He also clarified that he is planning on keeping the facade, replicating the windows and perhaps may need to hollow out the inside and fill in the rear. . . .
• Liebman questioned the actual number of bedrooms and how it will affect the septic. Kahn questioned info provided on the Biosphere system; the test was for 400 gpd and not appropriate for this site. Kahn asked how they visualize the septic to work. Connolly said he will need to solve the septic issue. Bedrooms may need to be removed or changed. Baskin noted that we need to protect the town well, which is 1/2 mile downhill from the site. He discussed the nitrate levels being at or below standards and suggested that creation of a system which can be sold off to other propertes would make the offer more attractive. Connolly expressed concern about a shared system and the additional problems that can be created.
• Baskin questioned the 84 parking spaces and stated that needed to be reviewed. He also questioned why the library wasn't placed on Station Street. Connolly replied that the architect placed it on Chestnut St. to be nearer to the retail part of the building. They thought the other side was problematic because of the grades in the land. Baskin responded that it would be better to keep the traffic away from the residential area; Connolly said they were open to discussion.
• When asked about getting just part of the funding requested, Connolly said it is unusual for the state to provide partial funding, as it would make no sense and is a waste of resources. Finances are distributed for the project to succeed. Also the state looks to the federal government for historical credits. Connolly said it is  helpful if the local state representative and senators are supportive and have a good relationship with the governor. Good local support helps to get credits.
• Tran stated that Connolly was proposing $10,000 per year in rent but asked about any other funds the Town would be receiving. Connolly said in 14.5 years they have to sell the tax credits to a non-profit organization; they have spoken with Sharon Housing Authority. They plan to pay an asset management fee to the Housing Authority as well.
• Waugh questioned the type of retail envisioned; Connolly said it would be stores which use the least amount of water, such as a book store or offices. A restaurant would not be possible.
• In closing Mr. Connolly said the affordable plaits drive the deal as they generate the tax basis.

Frontier Enterprises

• DePree again gave the brief intro he gave to Connolly & Partners.
• Timility stated that, if the Town opts not to rent space for Town Hall from them, they are offering 55 units of independent living (up from 48). In addition, the annual lease would be $165,000 (instead of $185,000). He distinguished between independent living (proposed) and assisted living (not proposed). Residents are mobile and independent but don't want some of the housekeeping/cooking burdens associated with maintaining a home. There will be a high level of services available for residents but it is expected that they will also make use of the Town's services (generating more revenue for town businesses). Twenty percent or 11 units (down from 25% or 12 units) will affordable; that is the minimal percent needed to make the entire development count towards the number of affordable housing needed in the town.
• Timilty stated the financing of the project is expensive, an estimated $200 per foot for construction prices. In addition to the building they are adding 84,000 square feet for a total of a $23 million dollar project. They said the project had $18 million in value and they can borrow $15 million dollars.
• Zimlicki described the financial process, which includes applying to the Park Services for historical tax credits; applying for historical credits from Massachusetts for about $2 million. 4% of the units would be extremely low income housing. There is no application to prepare if 20% are affordable. He said this project is not difficult to finance. Hershfield confirmed that all units would count as 40B's.
• Tran asked if the facade would be kept and Zimlicki replied that if parts are salvageable, the Park Service will not let it be torn down. The architect indicated they would attempt to maintain floor lines. The only constraint is they need 55 units to make the project work financially.
• DePree asked about the tax credits from the Park Service, as we were unfamiliar with this; Zimlicki said the developer determines what is needed and the Park Service either agrees or disagrees. MA Historical Society determines what is saved and not saved. When complete, if the building is in accordance, tax credits can be taken. He also stated that he senses the committee's urgency and is trying to stay away from any contingency funding.
• Gordon requested clarification about ''retail activity"; Zimlicki said retail services (e.g., beautician) would only be available for site residents.
• Tran stated the $18 per sq ft rent of the basement for Town use was high; Zimlicki stated the numbers were taken from a previous town report (? 2002) and they were negotiable. Zimlicki also agreed that the addition looked a bit industrial and the team would be willing to make adjustments depending on the community input.
• Waugh asked about the basement space if the town does not take it; Zimlicki said they would move two of the units from outside the main building into the main building. There is a problem in that there are no windows in the gym; this needs to be explored.
• Kahn questioned the waste water treatment plant and Zimlicki said it will be developed in accordance with the state regulations.
• As with Connolly & Partners, Baskin discussed the status of the abatement process; Zimlicki responded that the roof is of concern. DePree asked if there was any advantage to include abatement in the project; Zimlicki said yes. Baskin again spoke about the possibly of amending the contact by change order and Zimlicki requested not to abate the windows. Tran suggested the best plan for abatement is to do the interior with the most contaminants.
• Hershfieid asked for a timing overview. The only contingent financing is MA Historical Society tax credits. A request can be submitted in December/January and go into construction in September of 2007. A market study is also in the plans.

Discussion

• In follow-up discussion afterwards, it was felt that Frontier Enterprises appeared to be able to fund the project by more traditional means. Gordon was concerned that there was no retail use, as listed in the RFP. Gordon was also concerned that Timilty had changed his proposal, when the other bidders did not have the chance to do the same--did that affect the other proposals? It was observed that we asked for clarification of the proposal and what would happen if the Town did not lease office space; Timilty was responding to our question about the intent of part of the proposal (was lease from the Town mandatory?) and to our question about how the proposal would change if we did not lease the space. Gordon also pointed out that only 11 of the 55 units in the revised proposal would count as affordable while all 48 of the units presented in the original proposal would count as affordable--a serious concern, given the town's need to reach its affordable housing goal. Finally, Gordon also commented that there are other considerations beside revenue and question if mixed use wasn't part of the town's expectations.
• Connolly & Partners had a best cased scenario completion of Sept. 2007. Frontier Enterprises doesn't need tax credits to move on. Tran stated that Frontier recognized $18 per sq ft for lease price to the Town is an artificial number. Frontier would provide more tax revenue.
• Baskin noted that the preservation of the building is standing in the way of retail space. Kahn iterated that she wants to see a technologically advanced water treatment plant.
• Baskin made a motion to make a recommendation to the Board of Selectmen to enter into negotiation with Frontier Enterprises. DePree, Baskin. Hershfield, Kahn, Kopek, Levin, Liebman, Mills, Tran and Waugh voted in favor; Gordon opposed; Roach and Powell abstained.

Hold the Date

• Tuesday, October 3 at 8:30 PM, Sharon High School Public Library (as part of the Sharon Board of Selectmen meeting)--information session on Wilber School site
• Monday, November 13 at 7 PM, Sharon High School Auditorium--Town Meeting. Warrant to allow BOS to enter into long-term lease for Wilber site is early on agenda (first or second)

Next Meeting

Wednesday, October 4 at 7:30 PM, location TBA.

Meeting Adjournment

Baskin/Hershfield moved that the committee adjourn; unanimously approved. Meeting adjourned at 10:45 pm.

Respectfully submitted,

Rachelle F. Levitts