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MINUTES - Special - 7/9/2013 198 CITY OF SALEM JULY 9, 2013 PUBLIC HEARING OF THE CITY COUNCIL A Public Hearing of the City Council was held in the Council Chambers, 93 Washington Street, on Tuesday, July 9, 2013 at 7:00 P.M. for the purpose of discussing the matter of the disposition of the City owned land located at the corner of Washington and Dodge Streets currently a 38-space parking lot to DODGE AREA LLC. The Council will also consider abandoning this portion of the Riley Plaza roadway right-of-way as it is no longer used or needed for vehicular travel. Notice of this hearing was posted on June 27, 2013 at 4:35 P.M., and advertised in the Salem Evening news on June 25, 2013 and July 2, 2013. Absent were Councillors Sosnowski, Sargent, Siegel and McCarthy. Council President Jerry L. Ryan presided. APPEARING IN FAVOR WERE THE FOLLOWING: Mayor Kimberley Driscoll stated that this meeting is in regards to declare this area as surplus. Proposals were put out and the abutters were notified to see if anyone was interested. There was only one proposal for the RFP. (a power point presentation was made) There are 38 parking spaces that are under utilized due to the nature of the businesses there. The city took in $18,000 in meter revenue. There are maintenance costs and repairs to meters and snow removal. The proposed development RCG has been evolving this project. This could mean $300,000 in taxes. And Hotel/Motel tax of $196,000 per year. The land sale proceeds is $275,000 and is dedicated to downtown improvements such as paving, smart meters and Riley Plaza beautification. The total annual revenue would be $496,000. The economic impact would be 250 new jobs, 150 temporary construction jobs, 100 new full and part time jobs in the new hotel. There will be no loss of public parking spaces. And the property will maintain the 38 spaces and there will be an additional 240 new parking spaces as part of the development. She stated that she hopes that the council will vote out with a favorable recommendation. Still no testing has been done yet for hazardous waste. The next step will be the Purchase and Sale Agreement and permits. Councillor Turiel asked can the sale proceeds can be looked at as an endowment instead of using it all at once. Mayor stated this could be considered and she is open to suggestions. 198 199 CITY OF SALEM JULY 9, 2013 PUBLIC HEARING OF THE CITY COUNCIL Councillor Prevey stated aside from the SRA, Planning and Design Review Board does this fit within zoning? Lynn Duncan City Planner stated that it does comply with zoning. Mayor stated this is a B-5 zone and is mixed use Councillor O’Keefe stated the forms say Dodge Area LLC what’s the difference with RCG? Also if you go to Steve’s Market how will you cross Dodge Street? Mayor stated right now Dodge Street is a jog and this will be corrected. Councillor Ledoux stated that this is a popular place to cross. No one stops was there a traffic study done? RCG - Alex Steinburg founder of RCG and one of the principles. He stated that RCG is the Service Company, it doesn’t own real estate but develops and manages it. RCG was started in 1982, RCG will be maintained by Dodge Street LLC to maintain the parcels. There is a workforce of 25 people at the headquarters in Somerville, Salem, Danvers, Lynn and Brookline. The regional office is in North Carolina. The largest project was in north Andover it was a pre-civil war building turned into mixed use center. RCG owns and manages the Lydia Pinkham Building in Lynn it’s a mix of office and art studios. We just purchased 133 Center Street in Danvers and are doing mixed use. North Carolina has a condo complex. In Salem there are several projects that were done Derby Lofts, and Washington and Derby the old Salem News building. There will be a garage at Lafayette Street and at 76 Lafayette Street 10 apartments with retail and office space. We bought 3 parcels, the parking lot behind Walgreens and on Washington Street. We acquired parking lot and buildings on Washington Street which are 44,000 square feet, ½ acre of land which belongs to the city to build up to mixed use. Matt Corsick – here to talk about project. The concept assumes that the city parcel will be combined with the current parcels and expand up to Mill Hill 192,000 square feet, 275 parking spaces for mixed use hotel and retail. The project will be a multiplier to expand the area with 6 stories. Councillor O’Keefe what about the landscape Matt Corsick stated that the landscape plans are not developed yet. Councillor Prevey asked what kind of business opportunity uses will there be. 199 200 CITY OF SALEM JULY 9, 2013 PUBLIC HEARING OF THE CITY COUNCIL Matt Corsick stated a hotel, retail space and there is interest in food businesses, office and residential 70-80 units on the upper floors. Councillor Prevey asked regarding a hotel does Salem market call for it? Matt Corsick stated we believe so, a national brand hotel has shown interest. Councillor Furey stated my house was taken as a boy by Urban Renewal, other cities and towns envy us. Councillor Turiel questioned the traffic patterns on Dodge Street has any work been done? Matt Corsick stated no work has been done yet. Councillor Turiel stated he wants it to be addressed his only concern is there any plan for water management? Matt Corsick stated he will look at opportunity for energy efficiency Councillor O’Keefe supports the project but is concerned about the 38 parking spaces wants language to say on the document 38 motor vehicle parking spaces. Councillor Ryan thanked RCG for investing in the city he stated you also own building that Bank of America is in do you for see building more big buildings it looks like Boston. Matt Corsick stated he wants to develop Dodge Street which is the key project and it will lead to other things. Councillor Ryan asked if they will be charging for parking and if you charge be the same or as close to city fees. Matt Corsick it is market driven there will be discretionary Councillor Ryan stated he wants to see the parking as public Councillor Turiel parking actual number shouldn’t be so focused on Councillor Prevey asked what the time line is. Matt Corsick stated if the Council votes favorable in July then Geo Technical will file first document with the Planning Board by November and final approval by February 2014. Construction can start April 2014. This is target of two years of construction it is our expectation for completion by 2016. 200 201 CITY OF SALEM JULY 9, 2013 PUBLIC HEARING OF THE CITY COUNCIL Councillor Turiel asked what is the duration of Walgreens Matt Corsick stated long Hearing opened to the public APPEARING IN FAVOR Rinus Ooestook – Chamber of Commerce stated he is in favor of project it will rejuvenate the area. Russel Vickers – Redevelopment Authority – is in favor. This is a great project. He hopes the Council will support it. APPEARING IN OPPOSITION Teasie Riley Goggin – resident 9 Wisteria Street – not sure how we feel about this project. Seems things have already been decided and this is the public hearing. What is the master plan, what happens if the Hotel doesn’t work out, what happens then. Jim Kearney – resident Cambridge Street – wants to know what the impact on parking and wants to know what the developer feels how many spots would be required to sustain these businesses. Mayor – the Parking lot is part of the right of way of Riley Plaza, it’s the nature of the roadway lay out it needs to be abandoned. This is a sale of the land. Heather Famico – 195 Essex St. – project blends old Salem with New Salem. Councillor O’Keefe moved to continue the hearing until July 18, 2013. It was so voted. A motion by Councillor O’Keefe to adjourn at 8:15 PM was voted. ATTEST: CHERYL A. LAPOINTE CITY CLERK 201