PICKERING WHARF TIF FILES ---- - - . _
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CITY OF SALEM, MASSACHUSETTS
STANLEY J. LISOVICZ, JR.
MAYOR
February 6, 1998
Mr. J. Hilary Rockett, Jr.
Vice President
Rockett Management&Realty Co.,Inc.
190 Pleasant Street
Marblehead, MA 01945
Dear Mr. Rockett,Jr.:
Enclosed for your review is a draft version of a proposed five year Tax Increment
Financing Plan for the Pickering Wharf Hotel project. Both sheets display the same information
in different formats. This proposal reflects a general outline of my thoughts on this project as it
has progressed thus far.
I would like to arrange a meeting to discuss the contents of this document as soon as
possible. Please contact my office to set an appointment.
I look forward to our meeting and receiving your comments on this proposal.
Sincerely,
Stanley J. Usovicz, Jr.
Mayor
SALEM CITY HALL•93 WASHINGTON,STREET-SALEM,MASSACHUSETTS 01970-3592•978/745-9595•FAX 978/744-9327
PICKERING WHARF HOTEL DRAFT
�6-YEAR TAX INCREMENT FINANCING PLAN
Value now $1,267,700 This is the value of the property in its current, undeveloped state.
Base tax bill $43,736
Value after hotel built $8,000,000
Increment in value $6,732,300
TIF is applied to the increment.
Year Year Year Year Year
Tax at full value $282,880 Tax at full value $290,000 Tax at full value $297,200 Tax at full value $304,640 Tax at full value $312,240
Base tax bill $44,826 Base tax bill $45,954 Base tax bill - $47,095 Base tax bill $48,274 Base tax bill $49,478
Tax on increment $23,805 Tax on increment $73,214 Tax on increment $125,052 Tax on increment $192,274 Tax on increment $262,762
Pickering Pays $68,631 Pickering Pays $119,168 Pickering Pays $172,148 Pickering Pays $240,549 Pickering Pays $312,240
Pickering Saves $214,249 Pickering Saves $170,832 Pickering Saves $125,052 Pickering Saves $64,091 Pickering Saves $0
Pickering pays taxes on 10%of Pickering pays taxes on 30%of Pickering pays taxes on 50%of Pickering pays taxes on 75%of Pickering pays taxes on 100%of
increment plus base tax bill. increment plus base tax bill. increment plus base tax bill. increment plus base tax bill. increment plus base tax bill.
Total property tax exemptions $574,225
Total property taxes paid(including base year) $956,471
Tax rate is increased by 2.5%each year
Qpq��
.ERING,WHARF HOTEL DRA Ff
/EAR TAX INCREMENT FINANCING PLAN
Y Base Value $1,267,700
Value Aker Hotel Constructed $8,000,000
Increment in Value $6,732,300
Tax Rate $34.50
Levy Percent Growth 2.5%
Base Year 1998
I'Year i Property,: lax T %ea at TIF% Base Tax Taxes on Taxes Paitl :Tax 8@nQFt
Assesatn8ht Rate TOR%Valu@ Bill > Increment EaohYear' Each Year
BASE $1,267,700 $34.50 $43,736 0% $0 $43,736 $0
$43,736
1 $8,000,000 $35.36 $282,880 10% $44,826 $23,805 $68,631 $214,249
2 $8,000,000 $36.25 $290,000 30% $45,954 $73,214 $119,168 $170,832
3 $8,000,000 $37.15 $297,200 50% $47,095 . $125,052 $172,148 $125,052
4 $8,000,000 $38.08 $304,640 75% $48,274 $192,274 $240,549 $64,091
5 $8,000,000 $39.03 $312,240 100% $49,478 $262,762 $312,240 $0
TOTALS
$1,530,696 $956,471 $574,225
'Taxes Paid Each Year=Base Tax Bill plus Taxes on Increment
P. 1
111fB
CITY OF SALEM, MASSACHUSETTS
STANLEY J.USOVICZ,JR.
MAYOR
MEMORANDUM OF UNDERSTANDING
between the
PICKERING WHARF HOTEL ENTITY
and the
CITY OF SALEM
This document will serve as a Memorandum of Understanding between the City of Salem and
the Pickering Wharf Hotel ENTITY. The items included outline the expectations of the two signatory
parties. The City of Salem, (CITY) and the Pickering Wharf Hotel (ENTITY), agree that this
Memorandum of Understanding reflects the status of the project as of 4/8/98.
Whereas, the ENTITY has an interest in building a new hotel at Pickering Wharf, and
TVhereas, the CITY agrees that in order to make the project feasible it must provide
public development assistance to the developer,
Now therefore, the CITY and the ENTITY, agree to the following:
If the Hotel Entity does the following:
I. Purchases and demolishes the Eastern Bank building.
2. Relocates Eastern Bank on site- at Pickering Wharf.
3. Develops a hotel of not less than 70 and not more than 140 rooms.
4. Provides a similar amount of retail space to what currently exists at Pickering Wharf.
5. Improves accessibility to the waterfront by utilizing State grant funding to rebuild the sea-walk
around Pickering Wharf(from Congress Street to the Chase House).
Then the City agrees to provide the following assistance:
1. TIF Plan
In order for the hotel project to be economically viable,the developer requires a multi-year TIF
for the hotel portion of the site only. All newly constructed retail space, including the relocated Eastern
Bank, will be taxed at full valuation. The new retail located_inthe development will increase the city's
tax base over what is currently received in taxes for the existing retail.
TIF Agreement
The TIF Agreement is applicable only to the use of the structure as a hotel. Should more than
SALEM CITY HALL•93 WASHINGTON STREET•SALEM,MASSACHUSETTS 01970.3592•9781745-9595•FAX 9781744-9327
' p.2
ten(10)percent of the total hotel rooms be changed, altered or reconfigured into non-hotel uses by the
developer or subsequent owner,the City reserves the right to negate or renegotiate the TIF Agreement
However,owner may change,alter or reconfigure more than ten(10)percent for any hotel use,
including a restaurant,lounge,gymnasium,etc.,without effecting this agreement
The Developer also agrees that the ownership structure and operation of the hotel is totally
separate and distinct from the Pickering Wharf Condominium Association.
The TIF schedule:
Year %Exempted
1-5 100
6-8 90
9 80
10 60
11 40
12 20
13 0
The hotel will also generate room tax calculated at 4%of projected room revenue.
The long term impact of the hotel's presence on the city's economy in terms of property tax,
room tax and parking fees will justify the structure of this TIF plan. The location of the hotel will
generate more business for local retailers,restaurants and tourist destinations.
The Planning Department will begin working with the project proponent to assemble necessary
materials for a TIF package.
2) Parking Garage
.The developer requires the lease of at least one parking space per hotel room on
second and third floors of the South Harbor Carage(currently under construction) . The
lease rate per parking space will be $1.25 per diem or $456.25 annually and increase at
the rate .of other City Parking garages that are leased on an annual basis. The lease
will be in effect for the life of the hotel. The City Council amended that "no
parking spaces will be reserved".
3) CDAG/PWED Funds
The City pledges to work with the Entity in a public/private partnership to secure other state and
federal funds such as CDAG and PWED funds for items such as increasing public access to the
waterfront between Congress Street and the Chase House. This would complete the link from Congress
Street to the NPS at Derby Street
In City Council April 9, 1998
Referred to the Committee on Community and Economic Development
In City Council June 11, 1998
Adopted by a roll call vote of 7 yeas, 4 nays, and 0 abseuti .as amended
A motion for immediate reconsideration in the hopes it would not prevail was denied
Approved by the Mayor on
ATTEST: DEBORAH E. BUBRINSHAW
CITY CLERK
.... . ......-
COMMONWEALTH,OF MASSACHUSETTS
DEPARTMENT OF ECONOMIC DEVELOPMENT
MASSACHUSETTS OFFICE OF BUSINESS DEVELOPMENT
C/O SPRINGFIELD STATE OFFICE BUILDING
436 DWIGHT STREET, ROOM B-40
SPRINGFIELD,MA 01103
Internet:http://www.state.ma.us/mobd
ARGEO PAUL CELLUCCI TELEPHONE:
GOVERNOR (413) 7841580
DAVID A.TIBBETTSa '�T"¢""'; FACSIMILE:
DIRECTOR OF ECONOMIC DEVELOPMENT v7! ki, k (413) 739-9175
i.
JUL
tam
Sa -
TO: Part ants in the Economic Development Incentive Program
FROM: Seam alnan, Director - Economic Assistance Coordinating Council
DATE: July 15, 1998
RE: Recent EACC Action
At its meeting of June 25, 1998, the Economic Assistance Coordinating Council (EACC) voted
to take the action indicated within the enclosed resolution. If there are any questions, I can be
reached at (413) 784-1580.
Thank you for your attention to this matter.
/01CAk"(,,;-(� LJ
CA,
COMMONWEALTH OF MASSACHUSETTS
DEPARTMENT OF ECONOMIC DEVELOPMENT
MASSACHUSETTS OFFICE OF BUSINESS DEVELOPMENT
C/O SPRINGFIELD STATE OFFICE BUILDING
436 DWIGHT STREET, ROOM B-40
SPRINGFIELD,MA 01103
Internet:http://www.state.ma.us/mobd
ARGEO PAUL CELLUCCI - TELEPHONE:
GOVERNOR (413) 784-1580
DAVID A.TIBBETTS FACSIMILE:
DIRECTOR OF ECONOMIC DEVELOPMENT (413) 739-9175
MOTION TO APPROVE
PICKERING WHARF HOTEL, (PICKERING WHARF REALTY TRUST), AS A
CERTIFIED PROJECT
WITHIN THE SALEM City-wide EOA
WHEREAS, Chapter 23A, Sections 3A through F as amended by Chapter 19 of the Acts of
1993, established the Economic Development Incentive Program (EDIP);
WHEREAS. the EDIP is designed to promote increased business development and
expansion in Economic Target Areas (ETAS) and Economic Opporiunity Areas
(EOAs) of the Commonwealth;
WHEREAS, .tne Economic Assistance Coordinating Council (EACQ, estabiished by Section
3B of said Chapter 23A, is charged with administering the EDIP, including the
review and approval of applications from municipalities for the designation of
areas as ETAS and EOAs;
WHEREAS, the City of Salem has been designated by the EACC as part of the Beverly-Salem
Economic Target Area;
WHEREAS, the SACC approved the City-wide Economic Opportunity Area within the Salem
Economic Target Area;
WHEREAS, Pickering Wharf Hotel (Pickering Wharf Realty Trust) has committed tp creatin.
45 new permanent full-time jobs;
WFIER.I AS. Pickering Wharf Hotel (Pickering Wharf Realty Trust) intends to invest
approximately $4.5 million in construction costs and related expenses during the
life of the project;
gs
J
WHEREAS, Pickering Wharf Hotel (Pickering Wharf Realty Trust) filed a Certified Project
application with the City of Salem, which the city approved by a Vote of City
Council;
WHEREAS, the City of Salem approved a Tax Increment Financing Agreement for the project
at its meeting;
WHEREAS, the EACC finds that the proposed Certified Project in the City-wide EOA meets
the mandatory criteria required in MGL C. 23A;
WHEREAS, the EACC finds that the proposed Certified Project has received the appropriate
municipal approval at the Salem City Council Meeting, in accordance with the
statute; and
WHEREAS, the EACC finds that the proposed Certified Project, if so certified, will have a
reasonable chance for increasing employment opportunities for the residents of
the City of Salem and the ETA, thereby reducing conditions of blight, economic
depression, and widespread reliance on public assistance;
y
NOW THEREFORE BE
IT RESOLVED b the Economic Assistance Coordinating Council
that:
1. The Pickering Wharf Hotel (Pickering Wharf Realty Trust) Certified Project is
approved.
2. Pickering Wharf Hotel (Pickering Wharf Realty Trust) is eligible for the
Massachusetts 5% Economic Opportunity Area Tax Credit.
MOTION by Mr. Ebersole, seconded by Mr. Raymond at the June 25, 1998 meeting of the
Economic Assistance Coordinating Council, at which a quorum was present.
Ayes _8
Nays _0
Abstentions 0
Absent 2
Page 3
APPROVED:
vid A. Tibbetts, Director
Department of Economic Development
Co-Chairperson, Economic Assistance.Coordinating Council
Jane Wallisble, for
Department ftousm & Community Development
Co-Chairperson, Econ c Assistance Coordinating Council
Oz�;k of Ja4w;?� JLmadmscm&
n
June 15, 1998
Mr. Craig Wheeler
City Planner
City of Salem
Salem, MA 01970
Dear Mr. Wheeler:
At a regular meeting of the City Council held in the
Council Chamber on June 11, 1998, the following two (2)
Resolutions were adopted by a roll call vote:
1 . Resolution approving the certified
project application of Pickering
Wharf Realty Trust
2 . Resolution authorizing a tax increment
financing agreement for Pickering Wharf
Realty Trust
This action was approved by Mayor Stanley J. Usovicz,
Jr. , on June 15, 1998 .
Enclosed are certified copies of the above two (2 )
Resolutions for your use.
Ver truly yours
A��Cl�
DEBORAH E. BURKINSHAW
CITY CLERK
Enclosures
1
` CITY OF SALEM, MASSACHUSETTS
STANLEY J. LISOVICZ, JR.
w ` MAYOR
February 6, 1998
Mr. J. Hilary Rockett, Jr.
Vice President
Rockett Management& Realty Co., Inc.
190 Pleasant Street
Marblehead, MA 01945
Dear Mr. Rockett, Jr.:
Enclosed for your review is a draft version of a proposed five year Tax Increment
Financing Plan for the Pickering Wharf Hotel project. Both sheets display the same information
in different formats. This proposal reflects a general outline of my thoughts on this project as it
has progressed thus far.
I would like to arrange a meeting to discuss the contents of this document as soon as
possible. Please contact my office to set an appointment.
I look forward to our meeting and receiving your comments on this proposal.
Sincerely,
Stanley J. Usovicz, Jr. ��
Mayor
SALEM CITY HALL•93 WASHINGTON STREET•SALEM,MASSACHUSETTS 01970-3592• 978/745.9595•FAX 978/744-9327
�PICKERING WHARF HOTEL DRAFT r
5-YEAR TAX INCREMENT FINANCING PLAN
Value now $1,267,700 This is the value of the property in its current, undeveloped state.
Base tax bill $43,736
Value after hotel built $8,000,000
Increment in value $6,732,300
TIF is applied to the increment.
Year Year Year Year Years
Tax at full value $282,880 Tax at full value $290,000 Tax at full value $297,200 Tax at full value $304,640 Tax at full value $312,240
Base tax bill $44,826 Base tax bill $45,954 Base tax bill $47,095 Base tax bill $48,274 Base tax bill $49,478
Tax on increment $23,805 Tax on increment $73,214 Tax on increment $125,052 Tax on increment $192,274 Tax on increment $262,762
Pickering Pays $68,631 Pickering Pays $119,168 Pickering Pays $172,148 Pickering Pays $240,549 Pickering Pays $312,240
Pickering Saves $214,249 Pickering Saves $170,832 Pickering Saves $125,052 Pickering Saves $64,091 Pickering Saves $0
Pickering pays taxes on 10%of Pickering pays taxes on 30%of Pickering pays taxes on 50%of Pickering pays taxes on 75%of Pickering pays taxes on 100%of
increment plus base tax bill. increment plus base tax bill. increment plus base tax bill. increment plus base tax bill. increment plus base tax bill.
Total property tax exemptions $574,225
Total property taxes paid(including base year) $956,471
Tax rate is increased by 2.5%each year
Y'
.ERING,WHARF HOTEL U����®®®® °�
(EAR TAX INCREMENT FINANCING PLAN
Base Value $1,267,700
Value After Hotel Constructed $8,000,000
Increment in Value $6,732,300
Tax Rate $34.50
Levy Percent Growth 2.5%
Base Year 1998
:.Year I'. Properly ¢. Tax Taxes at ITIF% Base Tax Taxes on Taxes Paid Tax Benefit
AssessTen# Rate 100%Value Bill Iniiement Each Year' :Each Year
BASE $1,267,700 $34.50 $43,736 0%
$43,736 $0 $43,736 $0
1 $8,000,000 $35.36 $282,860 10% $44,826 $23,805 $68,631 $214,249
2 $8,000,000 $36.25 $290,000 30% $45,954 $73,214 $119,168 $170,832
3 $8,000,000 $37.15 $297,200 50% $47,095 . $125,052 $172,148 $125,052
4 $8,000,000 $38.08 $304,640 75% $48,274 $192,274 $240,549 $64,091
5 $8,000,000 $39.03 $312,240 100% $49,478 $262,762 $312,240 $0
TOTALS $1,530,696 $956,471 $574,225
'Taxes Paid Each Year=Base Tax Bill plus Taxes on Increment
J a
CrrY OF SALEM, MASSACHUSETTS
PLANNING DEPARTMENT
�,�comwT,yo
CRAIG L. WHEELER 4� ter„ ONE SALEM GREEN
City Planner fi, 01970
(978) 745-9595 Ext. 311
ye' Fax(978)740-0404
G
MEMORANDUM
TO: J. Hilary Rockett, Jr.
FROM: Mary Cassidy, Economic Development Planner ,6�
RE: TIF Process for Pickering Wharf Hotel
DATE: April 16, 1998
I ant enclosing in this package the following items:
• Certified Project Application
• Tax Increment Financing Plan (outline sheet and form)
• Request for a Certificate of Good Standing form
• Sample Resolution Approving a Certified Project Application
• Sample Resolution Authorizing a TIF
• Sample Tax Increment Financing Agreement
• Previously approved TIF applications for other firms
To qualify for tax benefits, an applicant must gain both local and state approval. The process is
as follows:
1. Prepare application for certified project status and include all necessary
supporting materials.
2. Prepare TIF plan and include all necessary supporting materials.
3. Prepare TIF agreement, City Council Resolution to approve the Certified Project
and City Council Resolution to offer a TIF plan.
4. Submit all of the above materials to the City Council with a cover letter from
Mayor Usovicz.
5. Obtain City Council Approval
6. Send entire Certified Project application to the Economic Assistance Coordinating
Council for State approval.
The development of the Certified Project Application and the TIF Plan will involve a
collaborative effort between yourself as the project proponent and myself as the Planning
Department representative. Many details about the project are forthcoming and these include the
legal plan for transforming the condominiums into the hotel, project costs,job creation estimates,
analysis of economic benefits to the City, business plans, time schedule for development, etc..
I will start working on the forms for the Certified Project application and the TIF Plan from the
city perspective. Please fill in the blanks on these applications. You can submit to me a
preliminary or draft version, which we will enhance as the project details are available.
I was informed by the Assessor's office that a complete projection of the financial performance
of the hotel will be necessary in order to get a final future value of the hotel on which to base the
tax exemptions. Also, it was suggested by the Assessor's office that in order to structure the TIF
properly, the retail portion of the project may need to be set up as a separate condominium from
the hotel portion. These are just some of the issues we will be addressing as the project
progresses.
The TIF always goes into effect the July 1 after the EACC approves the project. It is preferable
to activate the TIF as close to the completion of construction as possible. Therefore, given the
proposed opening of the hotel in late Spring of 1999, the TIF would begin on July 1, 1999 (FY
2000). The EACC meets at the end of every month (except August).
Given that the TIF application process relies in large part on the development of the hotel plans,
I believe that the next few months will be used to pull the application together, followed by City
Council approval during the summer and finally EACC approval (possibly July if it is ready, or
September). The City Council and EACC require a complete package for approval.
Although the TIF benefits will not begin until July 1, 1999, the 5% investment tax credit can be
utilized as soon as EACC approval is obtained. The investment tax credit can be applied to
virtually any type of tangible, depreciable investment, including improvements to or construction
of a new facility and the purchase of capital equipment. The tax credit has a 10 year carry
forward provision which means that if income does not exceed investment, the tax credit may to
applied to several years of income, abating tax liability over time.
I believe this information provides a realistic picture of the process. Please contact me if you
have questions about this matter.
ROCKETT MANAGEMENT & REALTY CO., INC.
190 PLEASANT STREET
MARBLEHEAD,MASS.01945
TEL.(781)631-3070
FAX(781)639-2290
J. HILARY ROCKETT,JR.
Vice President +
RASvs ,y
k' ix .`,+'K16.
AUG 2 7 19x3
August 18, 1998 Salem Rannt rlgs Dept.
Salem City Planner
1 Salem Green
Salem, MA 01907
Attn: Mr. Craig Wheeler
RE: Union Street
Dear Craig,
Enclosed please find a letter from Atty. Morris Tobin of Swampscott, regarding
Union St., which states that Pickering Wharf Condominium Association owns Union St.
from Derby St. to Wharf St.
I have contacted Mayor Usovicz 's office regarding this situation.
Finally, we will be reinstalling the no parking signs within the next few days.
Please call me with any questions or commentimay'.
SJr.
V
Encl.
JHR:nh
MORRIS TOBIN
ATTORNEY AT LAW
990 PARADISE ROAD
SWAMPSCOTT, MASSACHUSETTS 01907
(781)595-3189
FAX(781)595-9790
August 19, 1998
J. Hilary Rockett, Jr.
Rockett Realty
190 Pleasant Street
Marblehead, MA 01945
Re : Pickering Wharf Condominium
Union Street, 40' Way
Dear Hilary,
My title examination does not indicate that the City of Salem has
any interest in the above entitled property, and it is my opinion
that t4TIN
' solely vested in Pickering Wharf Condominium.
ve urs,
M
MT:m
`� � � i
1
1
1 .
�ONDIT�
CITY OF SALEM
�9�mweW� In City Council, November 14, 1996
Ordered:
That the City Council request that the Planning department develop
"draft" guidelines for the future use of Tax Increment Financing within
the city and forward such guidelines to the Committee on Administration
and Finance. Be it further ordered: that such guidelines include:
geographically targeted areas within the city,targeted
industries/commercial business to be retained or attracted, an acceptable
employment threshold for each project, and an&established yearly goal of
the total amount(s) for Tax Increment Financing that 'could be used in any
one calendar year. In addition, the "draft" should include an exemption
provision to any segment of the guidelines . Such exemption would be
granted by a vote of the city council, before any Tax Increment Financing
application is considered by the city.
In City Council November 14, 1996
Adopted
Approved by the Mayor on November 18, 1996
ATTEST: DEBORAH E. BURKINSHAW
CITY CLERK
d
ROCKETT MANAGEMENT& REALTY CO., INC.
190 PLEASANT STREET
MARBLEHEAD,MASS.01945
TEL.(781)631-3070
FAX(781)639-2290
J.HILARY ROCKS-M JR. November 20, 1998
Vice President
Salem City Hall
93 Washington St.
Salem,MA 01970
Attn: Mayor Usovicz
Dear Mayor Usovicz,
Per our conversation I have enclosed information regarding the inadvertent error
to the TIF application for Pickering Wharf Realty Trust. The error is not with anything
substantive, it's just regarding the legal description and tax parcel.
Legal Description The legal description simply should have been a copy of
the deed from the Salem Five to Pickering Wharf Realty Trust, Book 13598 page 532.
This includes all the commercial units in the condominium and the marina parcel (Parcel
2), which Pickering Wharf Realty Trust owns in fee.
Tax Parcel - There are three (3) tax parcels at Pickering Wharf, Map 34 Lot 408,
446 & 447, but only Lot 446 is listed on the application.
As I stated above, the intent was to allow the building of a hotel at "Pickering
Wharf." There was never any mention of tax parcels or legal descriptions in the motion
of the City Council, nor was there even any discussion of it. Additionally, isnot
mentioned in the approval received from the State.
I have enclosed the following materials for your review:
1. Complete TIF Package- I've highlighted the areas that need clarification.
2. MOU-Again there is no mention of location,just "on site at Pickering". As
you're aware, the total number of rooms between 70 and 140 was used in case we
expanded our proposed 75 room hotel into a second building, per our master plan
(see enclosed)
3. Master Plan- As mentioned above
4. Assessors Map of Pickering Wharf
5. State Approval
6. Deed
If you need any other information,please give me a call. As soon as this error is
resolved, we will to file our plan with the Salem Planning Board.
I look forward to hearing from you.
S'lce
J. Hi ck tt, Jr.
Vic Presid
Encl.
JHR:nh
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!! / • 79928..to4i0 139 1311/9.d2
1 �: L/• 6/1.96 3:02 p,.
w
DFPn
[' l 06{'006/96 01107 IRA rrupt 391 x
cholas A.Caporatc.Trustees of
t Trust u/d/t August 310scPh M. '1, 1995 and rons and lecorded September 14, 1995 wilt the e> h�gIs�,G 532
7. t 4 Of Deeds in Book 13191,Page 144(the"Grantor'),for consideration of One Million Seven
Hundred Twenty-Five Thousand Dollars($1,725,000).hereby greets to J. Hilary Rockett
i � Trustee of Pickering Wharf Realty Trust u/d/t May 2, 1996 and recorded with said Deeds
he of 190 Pleasant Street.Marblehead,Massachusetts 01945(the 'Grantee),with
WTCLAIM COVEN
i
ANTS,the following condominium units,percentage interests in
Condominium common areas and facilities and parcels of land in Salem,Essex County,
Massachusetts: =
rnndnininfitin unit .e
The following condominium units In the Pickering Wharf Condominium(the
'Condominium')in Salem,Essex County,Mumchusetts created by and described in the F
' Master Deed ng
.�, of Picker' Wharf dated August 3, 1979 recorded with Essex
it South Registry of Deeds in Book 6624,Page 141,as amended by a First Amendment to Master
Deed dated November 9, 1979, recorded with Essex South Registry of Deeds In Book 6653, 11
it
Page 99. by a Second Amendment to Master Deed dated December 28.1979.recorded with .t
Essex South Registry of Deeds in Book 6667,Page 39,and as further amended by a Third
+� Amendment to Master Deed dated April 4,1980.recorded with Essex South Registry •,4
in Book 6692,Page 336(said nester deed As to amended to hereinafter referred to as �s
. 'Master Deed'):
S_
BuAdiuC
licit
Bark Emerald A 2.4095
Bark Emerald B 1.8073 •'
Privateer A 2.6529
Pickering A 2.5602 �� 9 8EQ 10 .£
Pickering B 2.1439 T1 1.
... Pickering C {
Wherry Row A 2.954 06106 [�`
Wherry Row B 1.9344 `_l//7
,j Wherry Row C 1.7976
Square Riggep .9195 TAX 7066.80
Bogrdlteh 1. 221 CASH 7066.00
A 2.4082 4
TancookCn=cnt A 3.5773 9470420012t58
Taneook Crescent B 2.0887 EXCISE TAX
Tancook Crescent C L7079
r
4
TZ
Su
rt
ti
■
nese i�btt3�� �__
Building ]hhii percentage Ine rest
Hawthorne A 1.6617
Hawthorne B 1.2949
Hawthorne C 9093
Arbeila A 1.262s BK 13598 FG 533
Arbella B 1.3621
Gentoo A 1,1653
Gentoo B 3.6888
Gemco C 1.7788 j
Grand Turk A 3.2700 !
Grand Turk B 6.3601
Derby A 10.8775
Derby B 2.8439
Together with the undivided percentage interests in the common areas and facilities of
the Condominium described in the Master Deed as set forth for each unit above.
Subject to and with the benefit of ail easements,rights,reservations,restrictions.
agreements and provh1101131 contained in the Master Deed,In the Agreement and Declaration of
Trust of the Pickering Wharf Condominium Trust dated August 3,1979.recorded with Essex N
South Registry of Deeds in Book 6624,Page 168,In the By-Laws of Pickering Wharf d
Condominium recorded with Essex South Registry of Deeds in Book 6624.Page 179.and in .
any rules and regulations promulated pursuant thereto,ss any of the foregoing maybe '
amended from time to time.
Subject to and with the benefit of the provisions of Massachusetts General Laws
Chapter 183A as now in force and as amended from time to time.
Each of the foregoing units is Intended to be used for any purpose allowed by
applicable law,zoning law,license,permit,use regulation,sp=W permit,exception or
variaxe.
Pareel 1.
All right,title and interest in and to the South River in Salem,Essex County.
Massachusetts and any and all rights of access thereto and egress thendmin as more
particularly described In Exhibit A to the Master Deed. As provided In the Master Deed,such
right.tide and interest and rights of access and egress were specifically excluded from the
premises submitted to Massachusetts General L"s Chapter 193A by the Master Deed and
from the Condominium created thereby.
2
1
I
i 75838-30490 U9 131449.d2 '
p BK IISM 534
I7 'I Parrsl2
The land with the buildings and improvements thereon in Salem,Essex County,
i •y Massachusetts bounded and described u follows:
WESTERLY by Congress Street,about fifty-nine and 09/100(59.09)
feet;
' I NORTHERLY by land now or formerly of Wetmore,about one
hundred sixty-six(166)feet;
h EASTERLY by lad now or formerly of Shaluk,about sixty-
one and 72/100(61.72)feet;and
.1 SOUTHERLY by the outer edge of the bulkhead shown on the
plan recorded with Essex County Registry of
i Deeds In Book 3263,Page 40,about one hundred
seventy and 92/100(170.92)fat.
Together with the Hans to low anter line appurtenant and adjacent to the afoseaki
Parcel as shown on said plan recorded In Book 3263,Page 40.
Together with any other rights in any other flats which may be appurtenant to the
aforesaid
parcel.
The premises described above are conveyed subject to and with the benefit of all
eatenlem,covenants and restrictions of record.
Being the nine premises conveyed to Grantor by Deed of Salem Five Cents Savings
��.! Bank.recorded with the Essex South Registry of Dads on September 14, 1995,In Book
13191,Page 144.
R The address of the premises conveyed by this Deed is Pickering Wharf,Salem,
Massachusetts.
3
i
` 7uxa.taso uv uus.m
BK 135 awM 535
flteeuted under seal this day of June, 1996. -
picketing Wharf Nominee Trust
Joseph M.f3ibbom,as Trustee
BY:
ieholas A.Capotsle,Is Trustee
:BK 13548 PG 535
t
a
o
u
The
122,
OfficersM A S S A C R U S ET T SPast Presidents
Thomas M.Leonard,Chairman - PL ►RT�ERSHI lI P Stanley J.Lukowski(1987-1989)
Sumner W.Jones,President Thomas M.Leonard(1989-1991)
Russell T.Vickers,Vice President 6 Central $fWilliam J.Tinti(1991-1993)
enfaStreet Peter H.Dinsmore,Treasurer David W.Ives(1993-1996)
Craig L.Wheeler,Clerk Salem, Massachusetts 01970
(978)741-8100
Annie C.Harris,Executive Director Fax(978) 745-6131
• Please. Call • Please Come • Please Call • Please Come •
Dear Neighbor,
Your help is urgently needed. The hotel at Pickering Wharf is in jeopardy. Let's not
lose this short window of opportunity. Salem has needed a new hotel for 25 years, and it is
imperative to work with the owners of Pickering Wharf to make it happen now. The chance to
build and finance such a project does not come very often. We need to act today!
A new hotel is in42Q Ill for downtown Salem. It will encourage the visitors we
already have to spend more time and money in our city. It will pay substantial new taxes to the
city including a 4%hotel/motel tax. It will create more year round and night time business for
our restaurants and shops. It will rcial tax base (and lighten the tax load for
the rest of us).
The Salem City Council has been asked to consider a TIF(tax) proposal for this new
hotel. Without the TIF, the developer cannot obtain financing for the hotel. The City Council
subcommittee on Economic Development must recommend approval of this TIF proposal
before the hotel project can proceed.
The TIF is just the first step. The developer still has many other steps in the process
including site plan approval by the Planning Board and,perhaps, a lease agreement on a
portion of the Congress Street parking garage. But this first step needs to be taken now
because if the City Council does not approve the TIF then the project cannot go forward.
The TIF only forgives the taxes on the new hotel space for a few years. The project
will still pay full taxes on the retail space and it will also pay a substantial hotel/motel tax to the
city. Call LQdU and come to the City Council Chambers,City Hall on Thursday. June I 1 at
7:00 PM to urge passage of the TIF agreement.
For your reference the city councillors may be trached at:
Council President: Lenny O'Leary: 744-0799
Mark Blair: 745-8323; John Donahue: 744-5965; * Regina Flynn: 745-2292;
* Tom Furey: 744-5963; Kevin Harvey: 745-9417; * Sally Hayes: 745-0505;
Bill Kelley: 744-5914; Joan Lovely: 745-4796; ** Scott McLaughlin: 744-1696;
* Peter Paskowski: 744-3642
This denotes *Members of the Economic Devel. Cne; ** Chairman
ncer ly,
Annie C. Hams
Pickering Wharf Hotel -- the proposed TIF
TIF: The agreement which Mayor Usovicz has negotiated with the hotel developer and
which is now before the Salem City Council contains the following points:
- The new hotel will pay full real estate taxes on.the first floor retail space. These taxes are
comparable to the real estate taxes which the developer currently pays on this portion of the
site. (The developer is only asking for tax relief on the new hotel rooms which are going to
be built above the retail space.)
- In addition,the hotel will pay the Oily a 4% rooms tax beginning the first day that the
hotel opens. This tax is estimated at$55,000 in the fust, fully operational year and it is
expected tc rise to$80,000iyear by the 10th year. Of course, if the hotel is a great success,
it will pay even more than this.
- Furthermore, after the first five years,new real estate taxes on the hotel space will "kick
in" and these taxes will increase each year until by the thirteenth year,it is estimated that the
new hotel will be paying approximately$185,000 per year in new real estate taxes. These
are new tax dollars above and beyond those outlined above. These taxes will never exist if
the hotel project doesn't go forward.
Other issues: There is, also, a proposal before the City Council to lease a portion of
the new Derby and Congress Street garage as additional parking for the hotel. This is a
separate agreement which is part of the proposed Memorandum of Understanding between the
City of Salem and the owners of Pickering Wharf. If the city agrees to lease a portion of the
new garage, the arrangement would be similar to the understanding which The Essex
condominiums have for the use of the top floor of the Museum Place garage. However, it
appears that this may have to go through a"request for proposals" so it will take some time
before this issue is resolved.
It is our position,that the TIF should not wait until the parking garage arrangements are
made. The owners of Pickering Wharf have been trying to obtain permission to develop a
hotel for more than a year. It is important that the city give them some help to move the project
forward. Originally,they had planned to open the hotel in spring of 1999. Now the earliest
will be 2000. We have already lost one year of benefit and income from the project.
6916vl ojakln'l
wicel � CIO- okl-k
9�C/MINE D��
Salem pIatiar�inq. Dept,
May 29, 1998
Mr. Craig Wheeler
City Planner
City of Salem
Salem, MA 01970
Dear Mr. Wheeler:
You are respectfully requested to appear before the City
Council Committee on Community and Economic Development on
Tuesday, June 2 , 1998 at 6 : 00 P. M. in the Council Chamber for
the purpose of discussing the enclosed.
Veryurs ,
DEBORAH E. BURKINSHAW
CITY CLERK
Enclosure
9
In City Council May 28, 1998 Referred to the Committee on Economic Development
May 19, 1998
Thomas C.Chevoor
68B Pickering Wharf
Salem, MA 01970
Leonard F. O'Leary
Chairman Salem City Council
Salem City Hall
93 Washington Street
Salem, MA 01970
Dear Chairman O'Leary:
John Harrington and I, Residential Trustees for Pickering Wharf Condominium Trust,
respectfully request that we be given an opportunity to appear before the Salem City
Council for the purpose of discussing the proposed Pickering Wharf hotel project.
Pickering Wharf is an important commercial center in the city of Salem, but it seems
that often overlooked is the fact that the Wharf also includes fifty-four residential
condominium units.
The residential owners have not been included in any of the discussions relative to the
development of this project. The primary source of information has been what has been
printed in the paper.
The demolition and construction required will extend over a lenghty period of time and
will have a severe impact on the residents of the Wharf.
This does not necessarily suggest that there is opposition to the development of a hotel on
the Wharf. But, it does suggest that we are concerned.
We appreciate your interest, and look forward to meeting with the Council.
Sincerely,
\�C ' C ,
FAX FROM:
CITY OF SALEM, MA
f PLANNING DEPARTMENT
ONE SALEM GREEN
SALEM, MA 01970
(978) 745-9595
FAX (978) 740-0404
DATE: vlUrtelejlo19r
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T0: Hj'laYy I^'cROf—
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CONI:NIENTS:
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CITY OF SALEM, MASSACHUSETTS
STANLEY J. USOVICZ.JR.
MAYOR
MEMORANDUM OF UNDERSTANDING
between the
PICKERING WHARF HOTEL ENTITY
and the
CITY OF SALEM
This document will serve as a Memorandum of Understanding between the City of Salem and
the Pickering Wharf Hotel ENTITY. The items included outline the expectations of the two signatory
parties. The City of Salem, (CITY) and the Pickering Wharf Hotel (ENTITY), agree that this
Memorandum of Understanding reflects the status of the project as of 4/8/98.
Whereas, the ENTITY has an interest in building a new hotel at Pickering Wharf, and
Whereas, the CITY agrees that in order to make the project feasible it must provide
public development assistance to the developer,
Now(herefore, the CITY and the ENTITY, agree to the following:
If the Hotel Entity does the following:
1. Purchases and demolishes the Eastern Bank building.
2. Relocates Eastern Bank on site- at Pickering Wharf.
3. Develops a hotel of not less than 70 and not more than 140 rooms.
4. Provides a similar amount of retail space to what currently exists at Pickering Wharf.
5. Improves accessibility to the waterfront by utilizing State grant funding to rebuild the sea-walk
around Pickering Wharf(from Congress Street to the Chase House).
Then the City agrees to provide the following assistance:
1. TIF Plan
In order for the hotel project to be economically viable,the developer requires a multi-year TIF
for the hotel portion of the site only. All newly constructed retail space, including the relocated Eastern
Bank, will be taxed at full valuation. The new retail located-R-the development will increase the city's
tax base over what is currently received in taxes for the existing retail.
TIF Agreement
The TIF Agreement is applicable only to the use of the structure as a hotel. Should more than
SALEM CITY HALL-93 WASHINGTON STREET•SALEM,MASSACHUSETTS 019703592•978/745-9595-FAX 978/744-9327
I
' p.2
to
ten (10)percent of the total hotel rooms be changed, altered or reconfigured into non-hotel uses by the
developer or subsequent owner,the City' reserves the right to negate or renegotiate the TIF Agreement.
However, owner may change,alter or reconfigure more than ten(10)percent for any hotel use,
including a restaurant,lounge,gymnasium,etc.,without effecting this agreement
The Developer also agrees that the ownership structure and operation of the hotel is totally
separate and distinct from the Pickering Wharf Condominium Association.
The TIF schedule:
Year %Exempted
1-5 100
6-8 90
9 80
10 60
11 40
12 20
13 0
The hotel will also generate room tax calculated at 4% of projected room revenue.
The long term impact of the hotel's presence on the city's economy in terms of property tax,
room tax and parking fees will justify the structure of this TIF plan. The location of the hotel will
generate more business for local retailers, restaurants and tourist destinations.
The Planning Department will begin working with the project proponent to assemble necessary
materials for a TIF package.
2) Parking Garage
The developer requires the lease of at least one parking space per hotel room on
second and third floors of the South Harbor Carage(currently under construction) . The
lease rate per parking space will be $1.25 per diem or $456.25 annually and increase at
the rate of other City Parking garages that are leased on an annual basis. The lease
will he in effect for the life of the hotel. The City Council amended that "no
parking spaces will be reserved".
3) CDAG/PWED Funds
The City pledges to work with the Entity in a public/private partnership to secure other state and
federal funds such as CDAG and PWED funds for items such as increasing public access to the
waterfront between Congress Street and the Chase House. This would complete the link from Congress
Street to the NPS at Derby Street.
In City Council April 9, 1998
Referred to the Committee on Community and Economic Development
In City Council June 11, 1998
Adopted by a roll call vote of 7 yeas, 4 nays, and 0 absenti;.as amended
A motion for immediate reconsideration in the hopes it would not prevail was denied
Approved by the Mayor on
ATTEST: DEBORAH E. BURKINSHAW
CITY CLERK
Dinsmore Gruhl & Company, RC,
CERTIFIED PUBLIC ACCOUNTANTS
265 Essex Street
Salem, MA 01970-9866
Tel.: (978) 741-4237
Fax: (978) 745-4424
E-mail: dgco@dgcopc.com
January 14, 1998
Mr. J. Hilary Rockett, Jr.
Rockett Management Company, Inc.
190 Pleasant Street
Marblehead, MA 01945
Dear Mr. Rockett:
Enclosed is our analysis of your proposed 80 room hotel at Pickering Wharf, which concludes
that over the next twenty (20) years Pickering Wharf and the hotel project can be reasonably
expected to directly generate, after taking into consideration the proposed TIF assistance, over
$6,400,000 in revenue to the City of Salem.
If the property remains as it is presently developed for the next twenty (20) years, revenue to
Salem is projected to be approximately $2,300,000. Accordingly, if your proposed hotel is built
at Pickering Wharf, then the City of Salem is likely to generate over $4,100,000 in additional
revenue from real estate taxes, room taxes and parking garage fees.
Additionally, indirect benefits to the City of Salem will be derived from a variety of sources.
First, jobs will be created both during the construction phase and once the hotel is in operation.
It is likely that many of these jobs will be held by Salem residents. Second, in excess of 50,000
additional overnight visitors are expected to come to Salem each year. As a result, residents
and visitors alike will make additional expenditures for goods and services in the community.
Both existing and new businesses in the vicinity of the hotel will benefit from this increased
business activity. The hotel will also broaden the real estate tax base in the surrounding
waterfront area of Salem.
The combined effect of the projected $4,100,000 increase in revenue and indirect benefits cited
above will substantially enhance the economy of the waterfront area and of the entire City of
Salem.
Very truly yours,
Peter H. Dinsmore
PICKERING WHARF & HOTEL
PROJECTED REVENUE TO CITY OF SALEM
AS PRESENTLY WITH DEVELOPMENT
DEVELOPED OF HOTEL
TOTAL
REAL ESTATE REAL ESTATE TAX ROOM PARKING TAX BENEFIT
YEAR TAX (1) PRESENT(1) TIF(2) TOTAL TAX(3) FEES(4) TO CITY
1998 $65,000 $65,000 $0 $65,000 $0 $13,500 $78,500
1999 68,250 68,250 0 68,250 52,560 13,905 134,715
2000 71,663 71,663 0 71,663 56,844 14,322 142,828
2001 75,246 75,246 0 75,246 62,266 14,752 152,264
2002 79,008 79,008 0 79,008 67,006 15,194 161,208
2003 82,958 82,958 0 82,958 69,016 15,650 167,625
2004 87,106 87,106 0 87,106 71,087 16,120 174,313
2005 91,462 91,462 0 91,462 73,219 16,603 181,284
2006 96,035 96,035 0 96,035 75,416 17,101 188,552
2007 100,836 100,836 0 100,836 77,678 17,614 196,129
2008 105,878 105,878 0 105,878 80,009 18,143 204,030
2009 111,172 111,172 0 111,172 82,409 18,687 212,268
2010 116,731 116,731 0 116,731 84,881 19,248 220,860
2011 122,567 122,567 61,678 184,246 87,428 19,825 291,498
2012 128,696 128,696 127,058 255,753 90,050 20,420 366,224
2013 135,130 135,130 196,304 331,434 92,752 21,033 445,219
2014 141,887 141,887 269,591 411,478 95,535 21,664 528,676
2015 148,981 148,981 312,388 461,369 98,401 22,313 582,083
2016 156,430 156,430 357,511 513,941 101,353 22,983 638,277
2017 164,252 164,252 368,236 532,488 104,393 23,672 660,554
2018 172,464 172,464 379,283 551.748 107,525 24.,383 683,655
TOTAL 52.321.751 $2.321.751 $2.072.049 $4.393.801 $1.629.827 5387.133 $6.410.761
(1)PRESENT TAX INCREASED 5% PER YEAR. PROJECTED REVENUE:
(2)TAX INCREMENT FINANCING BASED ON:
YEARS % EXEMPT AS PRESENTLY DEVELOPED $2,321,751
1-12 100
13 80 WITH DEVELOPMENT OF HOTEL $6,410,761
14 60
15 40
16 20
17 10
18 NONE
(3) ROOM TAX AT 4% OF PROJECTED ROOM REVENUE.
(4) PARKING FEES FOR 60 SPACES AT$225 PER
SPACE INCREASED 3% PER YEAR.
JUN-09-98 13:02 FROM.ROCRETS MGMT `W7iI,D.F 6176392290 ,PAGE 2/2.
Julie 9, 1999
Salem City Council
Salem City Hall
Salem,MA 01970
ATTN: president of City Council
Leonard O'Leary
RE: pic erring wharf Hotel
Dear Mr_ O'Leary.
I am writing to request that the City Council vote this Thursday on the proposed TIF and
the sed hotel at Pickering Wharf. We have
Memorandum of Understanding regarding proposed
spew over one and half(1 '/2)years negotiating and attempting to get Pum'scion to build this
hotel in Salem and we are simply"wOro out"from all the delays
These delays and inactions have not only drained us but they are also very costly We .
need to know which way the City Council would like to go. If youvote in favor.we will
continue to move forward, however,if the Council votes against it, at least we can art aur losses
and move on
Again,we respectftdly request the City Council vote this Thursday on these proposals-
Cin yyo Jr. .
Pi g ty Trust
JSR/vy
cc: Mayor Stanley Usovicz
City Councilor Scott Mcl.aughiin
City Council
Pew" 174" t
84 fit, Ste, AN of970
(508) 745-9540 - 4sa; (508) 740-6729
r
CfTY OF SALEM, MASSACHUSETTS
PLANNING DEPARTMENT
��ONUIT��
CRAIG L. WHEELER �"6 'ams ONE SALEM GREEN
City Planner r� 01970
(970) 745-9595 Ext. 311
Fax(978)740-0404
Ormve
MEMORANDUM
TO: Stanley J. Usovicz, Jr., Mayor
FROM: Craig L. Wheeler, City Planner 0-0
fft'�
RE: Pickering Wharf Hotel TIF Application
DATE: May 8, 1998
The Certified Project Application and the TIF Plan for the Pickering Wharf Hotel project are
being developed by the Planning Department. We are still awaiting several important pieces of
information that are required for this application. In particular, a legal plan outlining how the
property will be reconfigured as condominiums is needed from the Rockett's attorney. I was
informed by Hilary Rockett that this is an attorney based in Boston.
The Board of Assessor's need to break out the hotel portion of the project for TIF status. All
legal issues and hurdles as to the establishment of control of the hotel site must be clarified to
permit the Assessor's to determine the proper base value of the site and the future value of the
hotel. This legal opinion will be submitted to the Department of Revenue for their review.
Detailed cost estimates and ajob creation plan are also forthcoming, as well as identification of
the private source of financing.
I have scheduled a meeting with Sean Calnan, Director of the Economic Assistance Coordinating
Council, the body that reviews and approves TIF projects, for Wednesday, May 13. At that
meeting we will discuss this TIF application and the amendment of our Economic Opportunity
Area boundaries.
Each of these items need to be clarified prior to the submission of the document for approval. I
recommend that a reasonable amount of time be allotted for the preparation of the application to
avoid future problems. This TIF is different from and more complicated than the others due to
the involvement of segments of the site (ie. the retail and bank)that are not recipients of the TIF
benefits.
WY OF SALEM, MASSACHUSETTS
PLANNING DEPARTMENT
�otam
CRAIG L. WHEELER 4�� ONE SALEM GREEN
City Planner 3 y 01970
(978)745-9595 Ext. 311
,�pmna
Fax(978)740-0404
MEMORANDUM
TO: Stanley J. Usovicz, Jr., Mayor
FROM: Craig L. Wheeler, City Planner
RE: Pickering Wharf Hotel Proposal/TIF Plan
DATE: April 8, 1998
CC: Hilary Rockett, Jr.
Kevin Geany
Presented below is a summary of the project elements related to the Pickering Wharf hotel
proposal as discussed at our meeting with Mr. Hilary Rockett, Jr on April 7, 1998:
• Design/Room Configuration
The developer has proposed an 80 +/- room, four story hotel/retail development.
Eastern Bank will be relocated on the site. The hotel development will contain
standard 14' x 36' rooms instead of suites. The development will be subject to site
plan approval and other permits as required by city departments.
• UDAG Funds
The developer does not require the use of UDAG funds. These funds will
be made available for other economic development initiatives that will
positively impact the Pickering Wharf area.
• CDAG/PWED Funds
The developer pledges to work with the City in a public/private
partnership to secure other state and federal funds such as CDAG and
PWED funds for the purpose of increasing public access to the waterfront
between Congress Street and the Chase House. This would complete the
link from Congress Street to the NPS at Derby Street.
• Parking Garage
The developer requires the lease of at least one parking space per hotel room at
the South Harbor Garage (currently under construction), or a comparable facility,
to permit the hotel project to work. The lease rate per parking space will be $1.25
per diem or$456.25 annually. Additional lease terms and conditions are subject
to negotiation.
• TIF Plan
In order for the hotel project to be economically viable, the developer requests a
multi-year TIF for the hotel portion of the site only. All newly constructed retail
space, including the relocated Eastern Bank, will be taxed at full valuation. The
new retail located in the development will increase the city's tax base over what is
currently received in taxes for the existing retail.
• TIF Agreement
The TIF Agreement is applicable only to the use of the structure as a hotel.
Should more than ten(10)percent of the total hotel rooms be changed, altered or
reconfigured in any way to another use by the developer or subsequent
owner the City reserves the right to negate or renegotiate the TIF Agreement.
• The Developer also agrees that the ownership structure and operation of the hotel
is totally separate and distinct from the Pickering Wharf Condominium
Association.
The TIF schedule:
Year % Exempted
1 - 5 100
6 90
7 90
8 90
9 80
10 60
11 40
12 20
13 0
The TIF exemption applies only to the hotel itself and only to the increase in
value between the current development and the completed hotel development.
The hotel will also generate room tax calculated at 4% of projected room revenue.
The long term impact of the hotel's presence on the city's economy in terms of property tax,
room tax and parking fees will justify the structure of this TIF plan. The location of the hotel
will generate more business for local retailers, restaurants and tourist destinations.
The Planning Department will begin working with the project proponent to assemble necessary
materials for a TIF package.
CRY OF SALEM, MASSACHUSETTS
PLANNING DEPARTMENT
CRAIG L. WHEELER g6 ONE SALEM GREEN
City Planner `3
01970� (978)745-9595 Ext. 311
Fax(978)740-0404
September 28, 1998
Sean Calnan
Director
Economic Development Incentive Program
Mass. Office of Business Development
436 Dwight Street
Room B40
Springfield, MA 01103
RE: Pickering Wharf TIF
Dear Mr. Calnan:
Upon review of the recently approved TIF at Pickering Wharf, we realized there
was a minor omission. The tax parcels involved in the common description of the TIF
Plan are parcels 446 and 447 on map 34, notjust parcel 446. However, the legal
description is correct and need not be changed.
I have prepared a new page with this correction for your convenience.
Please call with any questions you may have.
Sincerely yours,
Craig L. Wheeler
City Planner
cc: J. Hilary Rockett, Jr.
07/13/1999 14:37 9788'_54341
PAGE 01
HAWTHORNE
HOTEL
July 13, 1999
MS. Mary Cassidy,Acting Director
City of Salem Planning Depatment
Fax#740-0404
Re: Pickering Wharf Hotel
Dear Mary:
Thanks once again for taking the time to talk with me today.
Since we are dealing with '-real time"heregiven the Planning Board's ongoing schedule
with respect to this matter, I would appreciate whatever you could do to move along the
procedures to be followed relative to my document and/or access request.
I have a call in to Walter Power to get his insight with respect to the Planning Board's
schedule.
Should you deem a meeting with Stan a necessary prelude to making documents available
to me, I would like to do it as soon as possible consistent with vour mutual schedules. As
you know, I have had recent conversation (July 2)with him on this subject.
Since! ,
ichael J. Harrington
MJH:AG
HISTORIC
HOTEELS!✓ On The Common, Salem, MA 01970 (978) 744-4090 • Fax(978) 745-9842 Naeio &]trvar
AMERJCA for Hiaruric
www.hawthomehotel.com pmsemuon
HAWTHORNE
HOTEL
July 8, 1999
Ms. Mary Cassidy, Acting Director
City of Salem Planning Department
Fax 4740-0404
Re: Pickering Wharf Hotel proposal
Dear Mary:
Thank you for the help provided me to date and the timeliness of your response to my
inquiries.
This letter which, as you know, since it stems from our conversation of Thursday, July 1,
is to request that.you make available to me any and all materials, either submitted to the
City pr developed by the City, in conjunction with the development of the Tax Increment
Financing proposal which was initially acted on by the City Council in June, 1998.
Without attempting to turn this into a quasi-lawyerly effort, which I am not particularly
good at, since the initiative does involve the intention to confer a subsidy on the project via
real estate tax forgiveness, I assume that all of the documents developed by various City
departments, and all of the documents submitted by the developer, are fair game in request-
ing your assistance in providing me access to them.
If it would help, since I do not want to turn this into an undue burden with respect to the
Planning Department, I would be willing to meet with you, review the files, and indicate
which documents I am interested in having copied for potential further use.
I am assuming, in making this request, it will not be necessary to make similar requests
of the Mayor's office, Assessor's or City Clerk's office, and that I can presume that your
office can and will act as a conduit in making relevant material available.
Sicer
MJH:AG Mic el J. Harrington
This letter also mailed.
HISTORIC
HOTELS,/ On The Common, Salem, MA 01970 (978) 744-4080 Fax(978) 745-9842 National Trust
AMERICA for Historic
www.hawthornehotel.com N Preservation
ai/asllyyy 15:36 y7EE254341 PAGE 132
HAWTHORNE
HOTEL
July 8, 1999
Ms. Mary Cassidy,Acting Director
City of Salem Planning Department
Fax#740-0404
Re: Pickering Wharf Hotel proposal
Dear Mary:
Thank you for the help provided me to date and the timeliness of your response to my
inquiries.
This letter which, as you know, since it stems from our conversation of Thursday, July 1,
is to request that you make available to me any and all materials, either submitted to the
City or developed by the City, in conjunction with the development of the Tax Increment
Financing proposal which was initially acted on by the City Council in June, 1998.
Without attempting to turn this into a quasi-lawyerly effort,which I am not particularly
good at,since the initiative does involve the intention to confer a subsidy on the project via
real estate tax forgiveness, I assume that all of the documents developed by various City
departments,and all of the documents submitted by the developer,are fair game in request-
ing your assistance in providing me access to them.
If it would help, since I do not want to turn this into an undue burden with respect to the
Planning Department, I would be willing to meet with you, review the files, and indicate
which documents I am interested in having copied for potential further use.
I am assuming, in making this request, it will not be necessary to make similar requests
of the Mayor's office, Assessor's or City Clerks office,and that I can presume that your
office can and will act as a conduit in making relevant material available.
Si 7
e ,
MJH:AG Mic 1 J. Harrington
This letter also mailed.
HISTORIC
HOTELS:, On The Common, Salem, MA 01970 (978) 744-4080 - Fax(978) 745-9842 H•+�•�
AMERICA lot Hislodc
www.hawthomebotti.com PICKrv•am
07/08/1555 15:36 5788254341 PAGE 01
HAWTHORNE HOTEL.
18 WASHINGTON SQUARE WEST
SALEM,MA 01970
PHONE(978)744-4080 FAX (978)825-4341
EXECUTIVE OFFICE FAX COVER SHEET
DATE ' - -
TO '
FROM
FAX# (_) d #OF PAGES including cover sheet d
MESSAGE:
�� V
07/08/1999 10:04_ 9700254341 FAGE 01
HAWTHORNE HOTEL
18 WASHINGTON SQUARE WEST
SALEM,MA 01970
PHONE (978)7444080 FAX (978)8254341
EXECUTIVE OFFICE FAX COVER SHEET
DATE
TO T
FROM
77er-�
FAX# (_� Z`� ' o �404 - #OF PAGES including cover sheet .
MESSA
4
07/08/1999 10:04 9788254341 PAGE 02
HAWTHORNE
HOTEL
July 8, 1999
Ms, Mary Cassidy
City of Salem Planning Department
Fax#740-0404
Re: Landauer Interim Study
Dear Mary:
Following up on our conversation of this morning, enclosed is Neil Harrington's
December 18, 1997 letter to the City Council.
Paragraph 3 of page 1 makes reference to an interim report prepared by Landauer in
October, 1997 which I would like to receive a copy of at your convenience.
As I also indicated to you, once I get my draft letter dealing with a more comprehensive
request for documents,I will get it over to you.
Thanks for your help.
inceivly,
41
Michael J. Ilan:in�n
MJH:ACG
Enclosure
HLSTORIC
FIOTELS, On The Common, Salem, MA 01970 (978) 744-4080 • Fax(978) 745-9942 National Tru
AMERICA ioi rt+.tonc
www.hawthomehotel.com Pre.e.�adon
07/02/1999 10:04 9728254941 PAGE 03
CITY OF SALEM. MASSACHUSETTS
NEIL J. HARRINCTON
"Top
December 19. 1997
To the City Council
City Hall
Salem, Massachusetts
Ladies and Gentlemen of the Council:
Enclosed for your consideration is a proposed development agreement whitey
administration has been working on in conjunction with the owners of Pickering
arf
the purpose of which is to further the planning and construction of a new hotel at the
wharf within the next two years. This agreement represents the substantive dements of a
plan to ensure that the proposed hotel can be properly financed, that parking concerns at
the site can be met, and that the overall redevelopment of Pickering Wharf is compatible
with the City's goal of adding additional hotel rooms to the waterfront/downtown area.
As you know, earlier this Fall, the City commissioned a professional hotel
feasibility study, with the goal of providing the community with an analysis of the market
potential for additional hotel development in Salem. The study was conducted by the
well-respected firm of Landauer Associates, Inc_ The final report from Landauer is due
before the end of the year.
Ouc of the sites evaluated for a potential hotel was Pickering Wharf. In an interim
re oCity. re K,:d in October. Landauer confirmed that a "limited-service" hotel
in Salem could be considered feast eat the Pickering Wharf site if the City made a
commitment to offer significant incentives to the project. Our discussions with tier
owners of Pickering Wharf included the findings of this preliminary work, and focused
on what I believed the City could reasonably offer as an incentive to spur the
development of the fust new hotel in Salem in over 70 years.
in summary. as outlined in the proposed agreement, 1 agreed to the following: (1)
a Tax Increment Financing (TIF) agreement, (2) the loan of the City's Urban
Development Action Grant(UDAG),(3)the leasing of a floor In the new South Harbor
aALCM CITY Mall. N 91pSMIMOTOM STRCCT. SALEM.MA44ACMYi[TTa*1&70. SUg,VA5-9607 PAI( 940'144 0321
07/00/1999 10:04 9700254341 PAGE 04
7'o the City Council
December 18, 1997
page 2
to the new hotel, and (4) a pledge to apply for whatever stale
garage
ment grant programs could assist the project.
infrastructurcicconomic develop
At this point, as 1 near the end of my tenure in office. 1 am submitting the
in the belief that if the
proposed development agreement to the Council secure Wharf W build a ftcw hotel terms i
the agreement arc carried out, the owners of Pickering yy
Salon.
I also understand and respect the fact that the Mayor-elect may wish to contutue
ish to alter, enhance or reject certain terms of
discussions with the Rockcus, and may wthat the matter be referred w
the agreement as propo:cd. 1 therefore respectfully suggest
cornmince and held over until calendar year 1998•
in dosing. I would like the Council and tho community to knots that 1 am
finishing my term of office having done everything I can possibly do to help make a new
hotel in Salern more than just a possibility. It is my hope that the new year will bring a
continuation of this effort, so that this project may become a reality-
Very truly yours,, /
NEIL J."HARWNGT4N
Mayor
NJIUsmc
07/00/1999 10:03 9700_53 31 PAGE 05
MEMORANDUM OF UNDERSTANDING
between the
PICKERING WHARF HOTEL ENTITY
and the
CITY OF SALEM
This document %%ill serve as a Memorandum of Understanding between the City
of Saletn and the Pickering Wharf Hotel ENTITY. The items included outline the
expectations and contntitments of the tub signatory parties. The City of Salem, (CITY)
and the Pickering Wharf Hotel Entity (ENTITY), agree that this Memorandum of
Understanding reflects the status of the project as of 12/1s/97 and each party agrees to
work toward the satisfactory completion of all items included herein.
Whereas, the City of Salem has commissioned a hotel study to determine the
market potential for additional hotel development in Salem;
Whereas, the ENTITY has an interest in undertaking a major development of
Pickering Wharf; and
Whereas, the ENTITY believes that the Hotel Study is sufficient evidence that
development ora hotel at Pickering Wharf is feasible; and
Whereas. the Hotel Study, the CITY and the ENTITY agree that such feasibility is
based in pan upon the ability to provide public development assistance to the developer.
Now rherefore, the CITY and the ENTITY agree to the following:
I. THE HOTEL ENTLTXAG_REES TO
1. Purchase and demolish the Eastern Dank building.
2. Relocate Eastern Bank on-site at Pickering Wharf
3. Develop a hotel of not less than 70 and not more than 140 rooms.
4. Provide a similar amount of retail space to what curtently exists at Pickering
Wharf
S. improve accessibility to the waterfront by utilizing State grant funding to
rebuild the sea-walk around Pickering Wharf(from Congress Street to the
Chase House).
6. Upgrade lighting and street-scape amenities throughout the interior and
exterior of Pickering Wharf.
7_ Improve the public open spaces on the interior of Pickering Wharf.
07/08/1999 10:04 9708254341 PAGE 66
11.
_Tiff rrry er.REES TO•
1) Tax Increment Finance Plan as follows:
Year 1 - 12 100% exemption of new construction
Year 13 80% exemption of new construction
Year 14 60%exemption of new construction
Year IS 40%exemption of new construction
Year 16 20%exemption of new construction
Ycar 17 10% exethption of new construction
Year 19 0%exemption of new construction
2) Loan to the ENTITY the Urban Development Action Grant funds from tilt
Salem Armory UDAG. The terns and conditions of the UDAG funding will
be as follows:
Principal amount: $994,00.
Length of term: 30 years
Interest rate: 4%
Repayment schedule: 30 years of equal monthly payments
beginning during the 25"month following
the opening of the Hotel.
3) Lease the 3r° floor of the new parking garage at South Harbor to the ENTITY
for use as valet and other Hotel parking at a rate equal to that being charged
for annual passes at the East India Parking Garage. In addition, the CITY
agrees to incorporate the Pickering Wharf name in the name of the new
garage, i.e..The South Harbor Garage at Pickering Wharf.
IIi_ The CITY and the ENTITY agree to work cooperatively on an application for
funding under the Community Development Action Grant(CDAG), Public Works
Economic Development m ) B e t WED Programs and/or any other appropriate
program(s) which may enhance the development of the new hotel_ The CITY
agrees to work diligently to provide the necessary amount of support for gaining
approval for such funding requests.
IV. In the event that the CITY is able to execute an agreement with die New England
Power Company (NEPCO) for a transfer In interest, acquisition of exclusive
rights to the use or lease of the parking lot at 25 Peabody Street, the CITY shall
declare the optimal use of the property to be for the enhancement of the South
Harbor area,including,but not limited to,temporary or permanent parking related
to the redevelopment and funtre expansion (if any) of the proposed hotel at
Pickering Wharf
07/0@/1999 10,:_04 970£254941 PAGE 07
Dated this_day of December, 1997.
CITY of Salem by its Mayor,duly authorized
Neil J. I larrington, Mayor
Pickering Wharf Rcalty Trust
J. Hilary Rockett, Trustee
I
RECEIVED
HAWTHO i 12 ki E: SI
SLEM
HOTEL PLANNING DEPT
November 9, 1999
Ms. Mary Cassidy
Assistant City Planner
Salem Planning Department
One Salem Green
Salem, MA 01970
Re: Proposed hotel development - Pickering Wharf
Dear Mary:
In further reviewing the material I obtained from Planning Department files on Monday,
September 13, which included regulations promulgated with respect to the TIF program,
there is one section of the regulations which I felt warranted a follow-up on my part. I am
referring specifically to Section 11.05 of 751 CMR-45, (a copy of which is enclosed).
Paragraph 2 of sub-section 3 of the regulation cited, which I have highlighted, would
appear to require evidence of a private financing commitment with respect to the TIF
agreement. As you know, in reviewing the material at the Planning Department which
comprised the file with respect to the tax increment financing plan, there was a paucity of
information with respect to the overall economics of the project, and no evidence, based
on my having reviewed the files with you on a couple of occasions, of a financing
commitment.
Accordingly, I would appreciate it if you would make the effort to obtain the required
evidence of financing so that it might be made available to me for review in compliance
with the regulations cited.
By way of background, I have had occasion to seek records and/or information from other
City departments,including'the City Clerk's and Assessor's offices, and from those sources
have received nothing which addresses this particular requirement. I have also reviewed
HISTORIC
HOTELS,y On The Common, Salem, MA 01970 (978) 744-4080 Fax(978) 745-9842 `�'National Trust
AMERICA www.hawthornehotel.com 1118 Preservation
November 9, 1999
Page 2
the material on file at the Massachusetts Office of Business Development which contained
no information addressing this issue.
Sincere ,
ch e . Harrington
MJH:AG
Enclosure
•. 73r tsAis: LALW t1Yi: uFrt atur t_uMMu-%t t uc•c+.vr...c....
x
11.05• Tax Increment Fnanc7ne Plans
The Tax: lncenrstt Financing PIM shill include the follov4ftg elements: °
(1) Uc
nation of the TiF lona The T IanF Zone shall be designated in accordance with the i.
rNuiretnenu of 751 CMR 11.04.
(2) the oublie and orivitc vroiects. The TIF Plan shall describe d d the
Description of
projects proposed for development within the been?one The TIF program
development of public and private projects which have ban thoroughly
promote she timely the municipality and private puha are picpaed to cotnmft rhea lva.
planned and ro which rated TIF Agr�ts embody those cortottranents u
The fIF Plot and the incorporated forthwith with the development- 1
mations to the EAC.'C lu the panic proceed with schedules included in the TIF
program desalbed m the TIF Plot in a xatdsnce
Phe. The desaipdw shall include contemplated for the TIF Zone that will be
w eontcmp
(a) A desaiptiof all public projects la The desaipdog shall specify the
fir unad through
betta:tsmts or special assessraeu oo-rchthe
scope and Scnesal design of the infrassocaae iraprovemeurt COn�Cff 'with
acvvivu propottd for the project urs,a budget for proposed Project ocpcndtaarsam
ssrpportivug:as revs n time schcduk for crnapltrion of all infrastructure inT ov=nc ts
public d�Pn ve:rsesrs. indus Tial and ewmat3al Projects propusrd for the TIF
Zone that will ssedvee nof ix inacrnew ec�+Pd°nz The TE Plan muss include
esidcr= of the level of the dcvelopers taauntaurat to any consaucdon
d the TIF Projca including. bac got linnscd W. archiztnaal Plans and
tegtrired from local lending insuordons,
ations.ming reports.kava of cogas»as>mr
and rncc p�cipatiw in other federal. sale or local economic dcvrlopmrnt
prorw= The 77 Plot shill inehtde a budget for proposed project with
supporting data. leas for the private projects widen the
bttmuss
(c) Toe TIF Plea shall include d dcsot P from initial planning to Project
TIF Zoete, inclodiag time st�cdtila forthe deveLnvesas t t increase, in job
esu=ted tic scvcuus based > '��91D0°of the prod
opposs�gad
within the TIF Zoge Proj°cc tau shawiny
(d) The TIF Plan shall iindude mapsOf the
1. -Boandsaes of the T1F ZO= in 1ff?AaK -
2. Psopetty Kaes toad the 6w im of each bmlding i -.-- -
3. All thoronghimms.ptablie tights of way and race= within the 77 Zone.
4. 71ac loatiw of eaeb PsoPosed Public and private pro)ccr addntans to adsdng
the lotariw of any,buildings m bebuildings datsd?roPotTd
t and the location of proposed toad and bdrssaucsmc itnProrcm =
S. Eatisdng and Proposed land rases and zoning. blit or vase project ata that
(c) TheT1F Plea shall idcntify any Panels within airy Pu Pn
aro aro linu ed locations to be investigated in acrordana
confirtsted u disposal sacs or
W&1r1.G L a 21E and shall describe any Pine gr ptivue.sim stntediadog activities
eonternplated to wable and coeouage the ttsx of d=pastels:
(3) Costs'Bettemtents and l imncinR:-Ib-TIF Plm shall o ng
(a) A dcnikd Prolcct tOsc csornaw astd fistaaciag p consaucdon and a betterment
m
1. A detailed projection of the taof the public
schedule for the defrayal of such costs.Provided that
°°coin of public eottsatnction
e ts imposed on any PUTY
shall smc
be recovered through bettrn s or spect in ala wuscsm ith the provisions of 751 CMR
which has not executed an agrcmcn
11.05(g) ro sed for financing private including,
t2-=A drscriptiori of.the'mcthod_p P° rioru and'
evidena'ofvprivate financing-'corr1lf11II11 nM and material assttmp
trcquirancnts-
I
751 CMR - 45
12/31/93
WY OF SALEM, MASSACHUSETTS
PLANNING DEPARTMENT
���O�T
CRAIG L. WHEELER g ONE SALEM GREEN
City Planner01970
(978) 745-9595 Ext. 311
�'sqe •• Fax(978)740-0404
Anrne
MEMORANDUM
TO: Stanley J. Usovicz, Jr., Mayor
FROM: Mary Cassidy, Economic Development Planner
RE: Pickering Wharf Hotel TIF - State Approval Timeline
DATE: June 12, 1998
The approval of the TIF agreement by City Council last night permits the Planning Department
to submit the application to the Economic Assistance Coordinating Council of the Mass. Office
of Business Development for state level approval.
The next EACC meeting will be held on June 24 or June 25. I have been informed by MOBD
that if they receive our application by Wednesday June 17 at the latest, it will be placed on the
agenda for state review and approval. Therefore, I am putting together the final application, with
all necessary items and signatures and will get it out the door by Tuesday afternoon at the latest
via overnight delivery.
Hilary Rockett, Jr. will be available on Monday June 15 to sign the TIF agreement. Today, I am
sending the Resolution Approving the Certified Project Application and the Resolution
Authorizing a Tax Increment Financing Agreement to the City Clerk for your signature.
}
-CITY OF SALEM, MASSACHUSETTS
STANLEY J.USOVICZ, JR. ".
MAYOR
MEMORANDUM OF UNDERSTANDING
between the
PICKERING WHARF HOTEL ENTITY
and the
CITY OF SALEM
This document will serve as a Memorandum of Understanding between the City of Salem and
the Pickering Wharf Hotel ENTITY. The items included outline the expectations of the two signatory
parties. The City of Salem, (CITY) and the Pickering Wharf Hotel (ENTITY), agree that this
Memorandum of Understanding reflects the status of the project as of 4/8/98.
Whereas, the ENTITY has an interest in building a new hotel at Pickering Wharf, and
Whereas, the CITY agrees that in order to make the project feasible it must provide
public development assistance to the developer,
Now therefore, the CITY and the ENTITY,agree to the following:
If the Hotel Entity does the following:
1. Purchases and demolishes the Eastern Bank building.
2. Relocates Eastern Bank on site-at Pickering Wharf.
3. Develops a hotel of not less than 70 and not more than 140 rooms.
4. Provides a similar amount of retail space to what currently exists at Pickering Wharf.
5. Improves accessibility to the waterfront by utilizing State grant funding to rebuild the sea-walk
around Pickering Wharf(from Congress Street to the Chase House).
Then the City agrees to provide the following assistance:
1. TIF Plan
In order for the hotel project to be economically viable, the developer requires a multi-year TIF
for the hotel portion of the site only. All newly constructed retail space, including the relocated Eastem
Bank,will be taxed at full valuation. The new retail located in the development will increase the city's.
tax base over what is currently received in taxes for the existing retail.
TIF Agreement
The TIF Agreement is applicable only to the use of the structure as a hotel. Should more than
SALEM CITY HALL•93 WASHINGTON STREET•SALEM,MASSACHUSETTS 01970-::592-978/745-9595•FAX 978/74.4-9327
ten(10) percent of the total hotel rooms be changed, altered or reconfigured into non-hotel uses by the 4
developer or subsequent owner, the City reserves the right to negate or renegotiate the TIF Agreement.
However, owner may change,alter or reconfigure more than ten(10)percent for any hotel use,
including a restaurant, lounge, gymnasium, etc.,without effecting this agreement.
The Developer also agrees that the ownership structure and operation of the hotel is totally
separate and distinct from the Pickering Wharf Condominium Association.
The TIF schedule:
Year %Exempted
1-5 100
6-8 90
9 80
10 60
11 40
12 20
13 0
The hotel will also generate room tax calculated at 4% of projected room revenue.
The long term impact of the hotel's presence on the city's economy in terms of property tax,
room tax and parking fees will justify the structure of this TIF plan. The location of the hotel will
generate more business for local retailers, restaurants and tourist destinations.
The Planning Department will begin working with the project proponent to assemble necessary
materials for a TIF package.
2) Parking Garage
The developer requires the lease of at least one parking space per hotel room on the second and
third floors of the South Harbor Garage (currently under construction). The lease rate per parking space
will be $1.25 per diem or$456.25 annually and increase at the rate of other City Parking garages that
are leased on an annual basis. The lease will be in effect for the life of the hotel.
3) CDAG/PWED Funds
The City pledges to work with the Entity in a public/private partnership to secure other state and
federal funds such as CDAG and PWED funds for items such as increasing public access to the
waterfront between Congress Street and the Chase House. This would complete the link from Congress
Street to the NPS at Derby Street.
Dated this _e day of April 8, 1998.
CITY of Salem by its Mayor, duly authorized . Pickering Wharf Realty Trust
Stanley J. icz,Jr. ayo� J. H la Roc cett Trusted
CITY OF SALEM, MASSACHUSETTS
PLANNING DEPARTMENT
g�coxar,�'�o
CRAIG L. WHEELER ONE SALEM GREEN
City Planner01970
(978)745-9595 Ext 311
ms's4 Fax(978)740-0404
�>mrve
July 10, 1998
Sean Calnan, Director
Economic Development Incentive Program
Mass. Office of Business Development
436 Dwight Street
Room B40
Springfield, MA 01103
Dear Mr. Calnan:
Enclosed please find a Letter of Compliance obtained by Pickering Wharf Realty Trust in
response to their request for a Certificate of Good Standing. I trust that this document is
the appropriate one. If there are any concerns, please let me know.
When you have an opportunity, could you please send me a copy of the EACC vote on
the Pickering Wharf Realty Trust TIF for my records.
Thank you very much for your assistance with this application.
Sincerely yours,
Mary C. Cassidy
Economic Development Planner
ROCKETT MANAGEMENT & REALTY CO., INC.
190 PLEASANT STREET
MARBLEHEAD, MASS.01945
TEL.(781)631-3070
FAX(781)639-2290
J. HILARY ROCKETT,JR.
Vice President
°'t 1
July 7, 1998 Soli,.
Salem Planning Board
1 Salem Green
Salem; MA 01970
Attn: Mary Cassidy
Dear Mary,
Enclosed herewith is the letter from the Department of Revenue,which was
required by the TIF application.
If you have any questions please do not hesitate to call.
Si c
J i oc tt, Jr.
e Pres1 t
Encl.
JHR:nh
i
a
�I
Commonwealth of Massachusetts Department of Revenue
Taxpayer Service Division
Certificate Unit -
P.O.Box 7066 July 2, 1998
Boston,MA 02204
J. HILLARY ROCKETT
PICKERING WHARF REALTY TRUST
84 WHARF STREET
SALEM, MA 01970
RE : PICKERING WHARF REALTY TRUST
Dear Taxpayer,
Enclosed please find the document (s)
you requested. If there are any problems
with the documents (s) feel free to
contact this office .
Thank you for your cooperation.
Massachusetts Department of Revenue
Attn: ABCC/Certificates Unit
200 Arlington St .
Chelsea, MA 02204
(617) 887-6550
Mitchell Adams
Commissioner ®printed on recycled paper
��III g
Commonwealth of Massachusetts Department of Revenue
Taxpayer Service Division
Certificate Unit
P.O. Box 7066
July 2, 1998
Boston,MA 02204
PICKERING WHARF REALTY TRUST
PICKERING WHARF
PICKERING WHARF
SALEM, MA 01970
LET i ER OF COMPLIANCE
In response to your request for a certificate of good standing, please be advised that the statutory
authorization for the issuance of Certificates of Good Standing extends only to incorporated
entities. However, we have researched Department records relative to the filing and payment of the
following taxes:
IDN 046805953 REALTY TRUST.
The research discloses no assessed liabilities at this time. This statement is not a waiver issued
under Massachusetts General Laws, Chapter 62C, Section 52, or a tax certificate issued under
M.G.L., Chapter 156B, Section 99 or 100, and cannot be used for such purpose.
Very Truly Yours,
Assistant Chief,
Collections Bureau
NO. 44532
5055 - 59032
Mitchell Adams
Commissioner ®pdnled on recycled paper
CITY OF SALEM, MASSACHUSETTS
STANLEY J. USOVICZ, JR.
MAYOR
PRESS RELEASE FOR MORE INFORMATION CONTACT:
FOR IMMEDIATE RELEASE MAYOR STANLEY J. USOVICZ,JR.
APRIL 8, 1998 (978) 745-9595,EXT. 201
Mayor Stanley J. Usovicz, Jr. announced today that the Pickering Wharf Hotel will be
constructed at the corner of Congress and Derby Streets. An agreement on the details of the
proposal was reached late yesterday with Mr. J. Hilary Rockett, Jr., Vice President of Rockett
Management & Realty Company. A mutually agreeable resolution on the structure of the Tax
Increment Financing (TIF) plan offered by the City to Rockett Management was obtained,
paving the way for the hotel development.
The City will enter into a 13 year TIF Agreement, upon local and state approval, for the
hotel portion of the project. The TIF is specifically targeted to the hotel development portion
only. The retail development that will be housed on the first floor of the hotel will be assessed
full property taxes, as will the newly relocated Eastern Bank.
During years one through five of the TIF Agreement, the increase in value between the
current development and the completed hotel development will be 100% exempt from taxation.
This will be followed by three years at 90% exemption. The remaining five years will see a
successive decline in the exemptions granted at 80%, 60%, 40%, 20% and 0%respectively.
Thus, in year 13 of the TIF, the hotel property will be fully taxed. The newly constructed retail
that is a part of the project will be taxed at full value and will receive no exemptions.
The new hotel and retail property taxes, coupled with room tax and parking fees, will
have a significant impact on the City's economy. The location of the hotel will generate more
business for local retailers, restaurants and tourist destinations. The hotel is proposed to have
approximately 80 rooms on three floors, with the first story housing retail development. Eastern
Bank will be relocated on the site.
"The historic charm and unique features of Salem draw numerous visitors to our city
throughout the year. The provision of hotel facilities in this convenient and attractive location
will further stimulate economic vitality in our well known City," Mayor Usovicz stated. "Salem,
as a designated Economic Target Area, has a powerful economic development tool in the form of
Tax Increment Financing. The City will reap positive effects from this project for years to
come."
SALEM CITY HALL•93 WASHINGTON STREET•SALEM,MASSACHUSETTS 01970-3592•978/745-9595•FAX 978/744-9327
it
v
"The Pickering Wharf Hotel development is a good opportunity for the City of Salem to
capitalize on its reputation as a major New England destination", Mr. Rockett commented. "We
are excited about this project and pleased that an agreement was reached with Mayor Usovicz."
The City will work closely with the developer to secure necessary approvals for the TIF
agreement and to obtain state and federal funds for public improvements at the waterfront. The
presence of a new hotel and new parking facility will positively impact the Pickering Wharf area
and the City as a whole.
-30-
The Pickering Wharf Hotel TIF schedule:
Year % Exempted
1 - 5 100
6 90
7 90
8 90
9 80
10 60
11 40
12 20
13 0
L
CfTY OF SALEM, MASSACHUSETTS
PLANNING DEPARTMENT
�OONOIT,,
CRAIG L. WHEELER 4�g ONE SALEM GREEN
City Planners 01970
(978)745-9595 Ext. 311
.y� Fax(978)740-0404
4M1N6
July 24, 1998
Mr. J. Hilary Rockett, Jr.
Pickering Wharf Realty Trust
190 Pleasant Street
Marblehead, MA 01945
Dear Hilary:
Enclosed please find a copy of the Economic Assistance Coordinating Council vote to
approve Pickering Wharf Hotel as a certified project. Pickering Wharf Realty Trust is
now eligible to receive the Massachusetts 5% Economic Opportunity Area Tax Credit.
Next July 1, 1999, it will be eligible for the tax benefits specified in the Tax Increment
Financing Agreement.
If you have further questions about this or the TIF program in general, please feel free to
contact me.
Congratulations on the approval!
Sincerely yours,
C. Ca,d a�d�
Mary
yC. Cassidy
Economic Development Planner
CITY OF SALEM, MASSACHUSETTS
PLANNING DEPARTMENT
�ONUIT�
CRAIG L. WHEELER �y6� �, ONE SALEM GREEN
City Planner - � 01970
.11 i'l'q (978) 745-9595 Ext. 311
Fax(978)740-0404
June 16, 1998
Sean Calnan, Director
Economic Development Incentive Program
Mass. Office of Business Development
436 Dwight Street
Room B40
Springfield, MA 01103
Dear Mr. Calnan:
Enclosed is the Certified Project application for the Pickering Wharf Hotel. Thank you for your
willingness to receive this document in time for your June EACC meeting. I do appreciate all
your assistance with this project application and your availability to the Planning Department
when concerns arise.
On behalf of the City of Salem and Mayor Usovicz, I am pleased to submit this application for
your consideration.
Sincerely yours,
z iaz( 0.
Mary C. Cassidy
Economic Development Planner
COMMONWEALTH OF MASSACHUSETTS
DEPARTMENT OF ECONOMIC DEVELOPMENT
MASSACHUSETTS OFFICE OF BUSINESS DEVELOPMENT
" C/O SPRINGFIELD STATE OFFICE BUILDING
436 DWIGHT STREET, ROOM B-40
SPRINGFIELD,MA 01103
Internet:http:)/www.state.ma.us/mobd
ARGEO PAUL CELLUCCI TELEPHONE:
GOVERNOR
(413) 784-7580
DAVID A.TIBBETTSy,) "v� FACSIMILE:
DIRECTOR OF ECONOMIC DEVELOPMENT N 'sM'. (413)SIMIL :
75
JUL 21 10-C8
Salem lads:; ap; DePt.
TO: Part' ants in the Economic Development Incentive Program
FROM: Sea Calnan, Director - Economic Assistance Coordinating Council
DATE: July 15, 1998
RE: Recent EACC Action
At its meeting of June 25, 1998, the Economic Assistance Coordinating Council (EACC) voted
to take the action indicated within the enclosed resolution. If there are any questions, I can be
reached at (413) 784-1580.
Thank you for your attention to this matter.
LIM