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223-231 DERBY STREET & 23 CONGRESS STREET - ZONING 223-231 Derby St & 23 Congress St ickering Wharf Realty Trust _ ickering Wharpyf►► Hotel WSP & SPR MQmorG.n&J-m V antes"f� VWhrA-,e� / ��JJ 6.gON01 e � );•. irAa CITY OF SALEM. MASSACHUSETTS NEIL J. HARRINGTON MAYOR December 18, 1997 To the City Council City Hall Salem, Massachusetts Ladies and Gentlemen of the Council: Enclosed for your consideration is a proposed development agreement which my administration has been working on in conjunction with the owners of Pickering Wharf, 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 elements of a plan to ensure that the proposed hot 1 canbe-p operly 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. One of the sites evaluated for a potential hotel was Pickering Wharf. In an interim report to the City, prepared in October, Landauer confirmed that a "limited-service" hotel in Salem could be considered feasible at the Pickering Wharf site if the City made a commitment to offer significant incentives to the project. Our discussions with the 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 first new hotel in Salem in over 70 years. In summary, as outlined in the proposFd agreement, I agreed to the following: (1) a Tax Increment Financing (TIP) agreement, (2) the loan of the City's Urban Development Action Grant (UDAG), (3) the leasing of a fluor in the new South Harbor SALEM C!TN HALL • 93 WASHINGTON STREE"i . SALFM ImAS SACJIU,HTT"; 0V 570 . 508/745-9595 • FAX 1,03,"i ' ^ 02 :7 L To the City Council December 18, 1997 Page 2 garage to the new hotel, and (4) a pledge to apply for whatever state infrastructure/economic development grant programs could assist the project. At this point, as I near the end of my tenure in office, I am submitting the proposed development agreement to the Council secure in the belief that if the terms of the agreement are carried out, the owners of Pickering Wharf will build a new hotel in Salem. I also understand and respect the fact that the Mayor-elect may wish to continue discussions with the Rocketts, and may wish to alter, enhance or reject certain terms of the agreement as proposed. I therefore respectfully suggest that the matter be referred to committee and held over until calendar year 1998. In closing, I would like the Council and the community to know that I am finishing my term of office having done everything I can possibly do to help make a new hotel in Salem 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:�HA6Z Mayor NJHJsmc 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 and commitments of the two 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 12/15/97 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 of a hotel at Pickering Wharf is feasible; and Whereas, the Hotel Study, the CITY and the ENTITY agree that such feasibility is based in part upon the ability to provide public development assistance to the developer; Now therefore, the CITY and the ENTITY agree to the following: I. THE HOTEL ENTITY AGREES TO; 1. Purchase and demolish the Eastern Bank 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 currently exists at Pickering Wharf. 5. 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. II. THE CITY AGREES TO: 1) Tax Increment Finance Plan as follows: Year I - 12 100%exemption of new construction Year 13 80%exemption of new construction Year 14 60%exemption of new construction Year 15 40%exemption of new construction Year 16 20%exemption of new construction Year 17 10%exemption of new construction Year 18 0%exemption of new construction 2) Loan to the ENTITY the Urban Development Action Grant funds from the Salem Armory UDAG. The terms 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 3rd 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 (PWED) 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 the New England Power Company (NEPCO) for a transfer in interest, acquisition or 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 future expansion (if any) of the proposed hotel at Pickering Wharf. Dated this_day of December, 1997. CITY of Salem by its Mayor, duly authorized Neil J. Harrington, Mayor Pickering Wharf Realty Trust J. Hilary Rockett,Trustee 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 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 th.,n SALEM CITY HALL,93 WASHINGTON STREET -SALEM. MASSACHUSETTS 01970J592 -979/745-9595 -FAX 976,744 9327 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 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 day of April 8, 1998. CITY of Salem by its Mayor, duly authorized . Pickering Wharf Realty Trust Stanley J. icz, Jr. ayo J. H lary Rockett, Truste ,r TAX INCREMENT FINANCING AGREEMENT CITY OF SALEM, MASSACHUSETTS - — - and PICKERING WHARF REALTY TRUST This agreement is made this day of Jury 1998, by and between the CITY OF SALEM, a municipal corporation duly organized under the laws of the Commonwealth of Massachusetts, having a principal place of business at City Hall, 93 Washington Street, Salem, Massachusetts, 01970, acting through the Mayor, Stanley J. Usovicz, Jr., (hereinafter called "the CITY"), and PICKERING WHARF REALTY TRUST, with a principal place of business at 190 Pleasant Street, Marblehead, Massachusetts, 01945 (hereinafter called "the COMPANY") . This Agreement will take effect as of July 1, 1999 (Fiscal Year 2000). WHEREAS, the COMPANY wishes to construct a hotel at Pickering Wharf in Salem; and WHEREAS, the CITY is willing to grant tax concessions in return for guarantee of the construction of the hotel property and the creation of employment opportunities for local workers; and WHEREAS, the Salem City Council resolved on November 9, 1995 to allow the use of Tax Increment Financing as a tool to encourage economic development within the Salem Economic Opportunity Area; and WHEREAS, the Salem City Council resolved on June 11, 1998 to endorse the Tax Increment Financing Plan negotiated by the CITY and the COMPANY. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties do mutually agree as follows: A. THE COMPANY'S OBLIGATIONS I . The COMPANY shall develop the hotel property at Pickering Wharf in Salem. "The FACILITY" as used herein means a building containing approximately 50,000 square Feet plus site improvements and refers to the Hotel portion only of the project. 2. During the life of this agreement, if the COMPANY decides to sell the FACILITY or the business or to otherwise transfer control of the FACILITY or business and/or operations thereof, the COMPANY shall give the CITY at least three months notice of said sale or transfer. Said notice shall be given by certified mail, return receipt requested, to the Mayor, City Hall, 93 Washington Street, Salem, Massachusetts, 01970. B. THE CITY'S OBLIGATIONS _ 1. The CITY shall grant a tax increment financing exemption to the COMPANY in accordance with Massachusetts General Laws, Chapter A, Section 3E, Chapter 40, Section 59, and Chapter 59, Section 5. Said exemption shall be granted on the improvements to the FACILITY. Said exemption shall be valid for a period of thirteen (13) years, beginning with fiscal year 2000 (July 1, 1999) and ending with fiscal year 2013. During each year of this agreement, the company will pay taxes based on the base value of the FACILITY and on that portion of the value of the FACILITY which is not exempted under the agreement. The base value is established by the Board of Assessors (the Board) and is the current value of the FACILITY unless an abatement is approved by the Board. The exemption schedule on the value of the FACILITY works as follows: For the first five (5) years, the COMPANY will pay only the base tax bill and will be granted an exemption of 100 percent of the full value of improvements to the FACILITY. The full value of improvements to the FACILITY is hereinafter called ` the INCREMENT". In years six, seven and eight, the COMPANY will pay taxes on 10% of the full value of the INCREMENT, plus the base tae bill. In year nine, the COMPANY will pay taxes on 20% of the full value of the INCREMENT, plus the base tax bill. In year ten, the COMPANY will pay taxes on 40% ofthe INCREMENT, plus the base tax bill. In year eleven, the COMPANY will pay taxes on 60% of the INCREMENT, plus the base tax bill. In year twelve, the COMPANY will pay taxes on SO% of the NCREMENT, plus the base tax bill. In year thirteen, the CONIPAtNY will pay taxes on the full value of the FACILITY. C. OTHER CONSIDERATIONS I . This Tax Increment Financing Agreement shall be binding on all subsequent owners of the property. The City of Salem reserves the right to review and renegotiate the Tax Increment Financing Agreement if the business activity ceases to be fully operational during the life of the Tax Increment Financing Agreement. 2. If the COMPANY decides to expand the facility at any time during the life of the Tax Increment Financing Agreement, the CITY and the COMPANY may renegotiate the Tax Increment Financing Agreement to exempt all or part of the value of the expansion from property taxes. The exact amount of that exemption will be determined at the time of expansion. Executed as a sealed instrument on the day and year first above written. CITY OF SALEM PICKERING WHARF REALTY TRUST Stanley J. Usovi , ., Mayor J. HilaryRoEkett,`Faustee Notary Public K _ r. My commission expires � � Q 2,ZS 23 Cov�ress 6+. COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, ss . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS . ANSWER OF DEFENDANTS, CITY OF SALEM AND CITY WALTER B. POWERS, III, CHARLES OF SALEM PLANNING BOARD M. PULED, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants COUNT I : JUDICIAL REVIEW UNDER G.L. CH. 40A, SEC. 17 1. The first sentence in paragraph 1 of the complaint is admitted; the second sentence is denied. 2 . The allegations in paragraph 2 of the complaint are admitted, except for so much thereof as alleges that " (a) copy of the Decision is attached hereto and marked `A,'" which is denied. 3 . The allegations in paragraph 3 of the complaint that state, " (t) he complaint also seeks a declaration of rights under G. L. c. 231A with respect to the actions of the Planning Board and the City of Salem" are admitted; any and all remaining allegations in 1 paragraph 3 are denied. 4 . The defendants are without sufficient knowledge to admit or deny the allegations in paragraph 4 of the complaint and call upon the plaintiffs to prove the same. 5 . The defendants are without sufficient knowledge to admit or deny the allegations in paragraph 5 of the complaint and call upon the plaintiffs to prove the same. 6. Admitted. 7 . Admitted. 8. Admitted. 9 . The defendants neither admit, nor deny, the allegations in paragraph 9 of the complaint, but state that the statute referenced therein speaks for itself; moreover, the defendants say that the excerpted portions of the statute may not properly be read and interpreted in isolation from other, pertinent portions of the statute and/or from the provisions of other relevant statutes and laws. 10 . The defendants neither admit, nor deny, the allegations in paragraph 10 of the complaint, but state that the ordinance referenced therein speaks for itself; moreover, the defendants say that the excerpted portions of the ordinance may not properly be read and interpreted in isolation from other, pertinent portions of the ordinance and/or from the provisions of other relevant ordinances, statutes and laws . 11 . Admitted, that, " (o) n September 4 , 1997, the Planning Board adopted a " Master Plan Update . . . , as for the remaining allegations in paragraph 11 of the complaint, the defendants neither admit, nor deny, the same, but instead say that that the 2 excerpted portion of the Master Plan Update may not properly be read and interpreted in isolation from other, pertinent portions of the Plan and/or from the provisions of other relevant ordinances, statutes and laws . 12 . Admitted, that, " (o) n August 14 , 1997, the City of Salem issued a request for a proposal for a consultant to prepare a hotel feasibility study," and that the passage therefrom quoted in paragraph 12 of the complaint does appear in the request for feasibility study; any and all remaining allegations in paragraph are denied; and further answering, the defendants say that that the quoted excerpt from the request may not properly be read and interpreted in isolation from other, pertinent portions of the request and/or from the provisions of other relevant ordinances, statutes and laws. 13 . The first sentence in paragraph 13 of the complaint is admitted; the balance of that paragraph is denied. 14 . The first sentence in paragraph 14 of the complaint is admitted; the balance of that paragraph is denied. 15 . The first sentence in paragraph 15 of the complaint is admitted; the balance of that paragraph is denied. 16. Admitted, that the passages quoted from the Landauer Report in paragraph 16 of the complaint do appear in that report; however, the defendants say that that the quoted excerpts from the Report may not properly be read and interpreted in isolation from other, pertinent portions of the Report and/or from the provisions of other relevant ordinances, statutes and laws. 17 . Admitted, that, " (o) n May 27, 1999, the Defendant Pickering Wharf filed a letter purporting to be an application with the Defendant Planning Board for a `Site Plan Review and Wetlands and 3 Flood Hazard District Special Permit, '" and that the excerpt therefrom quoted in paragraph 17 of the complaint does appear in the application; the balance of paragraph 17 is denied; and further answering, the defendants say that the quoted excerpts from the application may not properly be read and interpreted in isolation from other, pertinent portions of the application and/or from the provisions of other relevant documents, ordinances, statutes and laws . 18. Admitted. 19 . The first sentence in paragraph 19 of the complaint is admitted; the balance of paragraph 19 is denied; and any express or implied allegation that the "objections" contained in the referenced letter were valid is also denied. 20 . Admitted, that, " (o) n July 28 , 1999, the Trust appeared through counsel before the Planning Board at its hearing and presented documents, testimony and argument in opposition to the application," and that counsel for the Trust made the arguments set out in the balance of paragraph 20 of the complaint; any express or implied allegation that counsel' s arguments were valid and supported by the evidence before the Board is denied. 21 . Admitted, that, " (o) n July 28 , 1999, the Trust presented to the Planning Board a copy of a report dated January 14, 1997, previously furnished to the Board, from Pinnacle Advisory Group . . . entitled: `Market Demand Study for a Proposed Hotel to be Located in Salem, Massachusetts,'" and that the language quoted from the report in paragraph 21 of the complaint does appear in the report; any and all remaining allegations in paragraph 21 are denied; and further answering, the defendants say that the quoted excerpts from the report may not properly be read and interpreted in isolation from other, pertinent portions of the report and/or 4 from the provisions of other relevant documents, ordinances, statutes and laws . 22 . Admitted, that, " (o) n July 28 , 1999, a principal of Pinnacle Advisory Group presented testimony to the Board" ; the balance of the allegations in paragraph 22 of the complaint are conclusory, seek to characterize the testimony, and are denied; and any express or implied allegation that the testimony was valid and supported by the evidence before the Board is also denied. 23 . Admitted, that, "the City has required the Pickering Wharf Trust to develop a hotel of `not less than 70 and not more than 140 rooms' as part of a Tax Increment Financing program with respect to which the City entered a Memorandum of Understanding on April 8, 1998" ; any and all remaining allegations in paragraph 23 of the complaint are denied. 24 . Denied. 25. Denied. 26. Denied. COUNT TWO: DUE PROCESS 27 . Defendants incorporate by reference and here re-allege their respective responses to paragraphs 1-26, supra . 28 . Denied. 29. AFFIRMATIVE DEFENSES Further answering the complaint, the defendants say as follows : 5 1 . The defendants say that the decisions complained of were made lawfully, properly and wholly within the scope of their administrative discretion. 2 . The defendants plead failure to exhaust administrative remedies. 3. The defendants plead insufficiency of process. 4 . The defendants plead insufficiency of service of process. 5 . The defendants specifically deny the genuineness of any purported signatures upon documents which the plaintiffs rely on in this case. 6. The defendants plead laches . 7 . The defendants state that the present action against them is time-barred by operation of the applicable statute ( s ) of limitations. 8. The defendants plead lack of subject matter jurisdiction. 9. The defendants plead lack of personal jurisdiction. 10 . The defendants plead improper venue. 11 . The defendants say that the plaintiffs lack standing to bring the present complaint and/or the various counts thereof, for the reason - among others - that they do not qualify as "aggrieved persons" under the applicable laws . 12 . The defendants plead unclean hands on the part of the plaintiffs. 13. The defendants plead estoppel on the part of the plaintiffs. 6 14 . The defendants state that the plaintiffs have failed to satisfy the procedural prerequisites to bringing this action. 15 . The defendants say that for all of the reasons aforementioned, the complaint fails to state a claim upon which relief may be granted. WHEREFORE, the defendants demand the dismissal of the complaint, with costs taxed to the plaintiffs . THE CITY OF SALEM, et al, By Their City Solicitor, Wil Xam4undreaa Esq. 81 ashington Sheet Suite 37 Salem, MA 01970 Tel : 978 . 741 . 3888 Certificate of Service I, William J. Lundregan, hereby certify that on *10 oz./ 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. WilliA J. Lundreganr Esq— 7 COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, ss . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS. WALTER B. POWERS, III, CHARLES M. PULED, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants INTERROGATORIES PROPOUNDED BY DEFENDANT, CITY OF SALEM, TO THE PLAINTIFF, DONALD J. MICHAUD, TRUSTEE Pursuant to Mass. R. Civ. P. 33, the plaintiff, Donald J. Michaud, Trustee, is hereby required to answer each and every one of the following interrogatories within the time provided by said rule . NOTE: Notwithstanding their use of "all," "any and all" and/or other, all-inclusive designations, the following interrogatories shall be deemed to exclude from their scope materials privileged by the attorney-client privilege, the attorney work-product privilege, and the privilege afforded to materials compiled by or at the behest of Counsel in anticipation of litigation. 1 1 . Please state your name, address, occupation, and business address (es) . 2 . Please state the name, address, occupation, and business address of each and every person consulted in order to obtain information used in answering these interrogatories, excepting herefrom only the defendant' s attorney. 3. Please state the name, address, occupation, and business address of each and every person known to, or believed by, you to have knowledge regarding the facts of this case, excepting herefrom only your attorney. 4 . Please state the date on which you acquired the property at 222-224 Derby Street, Salem, Massachusetts. 5 . Please state how the property at 222-224 Derby Street, Salem, Massachusetts was zoned (i . e. in what type of zoning district it was located) on the date that you acquired it. 6 . Please state how the property at 223-231 Derby Street and 23 Congress Street Salem Massachusetts was zoned i . e. in what g ( at type of zoning district it was located) on the date that you acquired your property at 222-224 Derby Street, Salem, Massachusetts . 7 . Please describe how the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts appeared on the date that you purchased acquired the property at at 222-224 Derby Street, Salem, Massachusetts . Include in your answer hereto, but without limitation, the location, size and complete descriptions of any and all buildings that were upon the property, the uses to which such buildings were put , the location, size and complete descriptions of any and all driveways, parking lots and other paved areas on the property, the uses to which such paved areas were put, the location, size and complete description of any and 2 all greenery and/or other plantings upon the property. 8 . Please describe, in full and complete detail, what uses have been made of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts, from the date that you acquired your property at 222-224 Derby Street, Salem, Massachusetts, to date hereof. 9 . Please describe, in full and complete detail, what uses have been made of the property at 222-224 Derby Street, Salem, Massachusetts, from the date that you acquired it to date hereof. 10 . If, from the date on which you acquired your property at 222- 224 Derby Street, Salem, Massachusetts, to date hereof, there have been any changes in the zoning of your said property, please describe any and all such changes in full and complete detail, providing the date and the substance of each and every such change. 11 . If, from the date on which you acquired your property at 222- 224 Derby Street, Salem, Massachusetts, to date hereof, there have been any changes in the zoning of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts Please describe any and all such changes in full and complete detail, providing the date and the substance of each and every such change. 12 . If you or your predecessors in title have ever sought a variance or a special permit for your property at 222-224 Derby Street, Salem, Massachusetts, then with respect to each and every such instance, please provide the following information : the date of the application, the nature of the variance or special permit sought, the reason why you or they sought the variance or special permit, whether or not the application was granted, and, if it was 3 granted, exactly what use (s) were made of the variance or permit . 13 . If, to your knowledge, from the date on which you acquired your property at 222-224 Derby Street, Salem, Massachusetts, to date hereof, the owners of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts ever sought a variance or a special permit for that property, please provide the following information: the date of the application, the nature of the variance or special permit sought, the reason given for the variance or special permit, whether or not the application was granted, and, if it was granted, exactly what use (s) were made of the variance or permit. 14 . If, from the date on which you acquired your property at 222- 224 Derby Street, Salem, Massachusetts, to date hereof, you have ever made any improvements to the said property, please describe any and all such improvements in full and complete detail. 15 . Please state : (a) the date and manner in which you acquired the property at 222-224 Derby Street, Salem, Massachusetts, (b) the price you paid to acquire the property, (c) the current assessed value of that property, and (d) the current market value of that property (to the best of your knowledge and belief) . 16 . What is the distance between the portion of your property at 222-224 Derby Street, Salem, Massachusetts, that is nearest to portion of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts? 17 . Please state, in full and complete detail, all of the factual reasons for your opposition to the July 29, 1999 decision of the City of Salem Planning Board which granted a special permit to the Pickering Wharf Realty Trust . Include in your answer hereto any and all specific harms to yourself or your property at 222-224 4 Derby Street, Salem, Massachusetts, that you anticipate from the issuance of the special permit; and with respect to each and every such anticipated harm, please set forth the specific, factual basis for your belief that such harm to yourself or your property is likely to follow from the allowance of the special permit . 18 . If you intend to call any expert witnesses to testify to the matters described and discussed in interrogatory no . 17 and your answer thereto, then please identify by name, address and area of expertise each and every such expert witness, and with respect to each and every such expert witness, please provide the following information : (a) the subject matter on which the expert is expected to testify, (b) the substance of the facts and opinions to which the expert is expected to testify, and (c) a summary of the grounds for each opinion. 19 . If you intend to call any non-expert witnesses to testify to the matters described and discussed in interrogatory no. 23 and your answer thereto, then please identify by name, address, occupation and business address, each and every such witness. 20 . Please identify, by name, address, occupation and business address, each and every witness whom you intend to call to testify at the trial of this matter. THE CITY OF SALEM, et al, By Their City Solicitor, 01 Wil am J. Lundre Esq. — 81 Washington S eet Suite 37 Salem, MA 01970 Tel : 978 . 791 . 3888 5 Y` A Certificate of Service I, William J. Lundregan, hereby certify that on / 1999 I mailed, postage pre-paid, a copy of the foreg ing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. m Lundr an, Esq. G� 6 COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, ss . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS . WALTER B. POWERS, III, CHARLES M. PULED, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants REQUEST FOR PRODUCTION OF DOCUMENTS PROPOUNDED BY DEFENDANT, CITY OF SALEM, TO THE PLAINTIFF, DONALD J. MICHAUD, TRUSTEE Pursuant to Mass. R. Civ. P. 34, the plaintiff, Donald J. Michaud, Trustee, is hereby required to produce copies of the documents described hereinbelow at the offices of the defendant' s attorney within the time provided by rule . NOTE : Notwithstanding their use of "all," " any and all" and/or other, all-inclusive designations, the following Interrogatories shall be deemed to exclude from their scope materials privileged by the attorney- client privilege, the attorney work-product privilege, and the privilege afforded to materials compiled by or at the behest of Counsel in anticipation of litigation. 1 Any and all acceptances, accounts, advertisements, agreements, amendments, applications, approvals, balance sheets, blueprints, books, brochures, building permits, canceled checks, chalks, charts, circulars, citations, codicils, complaints, contracts, correspondence, deeds, diagrams, drawings , flyers, graphics , income statements, invitations, invoices , leaflets, ledgers, literature, memoranda , notes , orders , outlines , permits , petitions, photographs , plans, proposals, purchase orders, recordings (audio and/or video) , records, repair orders, reports, responses , solicitations, special permits, specifications, statistical compilations, studies, submissions, variances, work orders, and/or other documents or other tangible items, of any kind and nature whatsoever, by whomever authored, for whatever purpose (s) , to whomever addressed, and by whomever received, excepting herefrom only matter privileged by the aforementioned privileges, that are within the possession, custody or control of the plaintiff, its agents, employees or servants, or to which plaintiff has a right of access and may obtain by making a reasonable effort, that allude to, attest to, describe, document, illustrate, and/or otherwise evidence, in any manner whatsoever, any or all of the following matters : 1 . The information or subject matter designated and described in defendant' s interrogatory no. 2 and/or in the plaintiffs' answer thereto. 2 . The information or subject matter designated and described in defendant' s interrogatory no . 3 and/or in the plaintiffs' answer thereto. 3 . The information or subject matter designated and described in defendant' s interrogatory no. 4 and/or in the plaintiffs' answer thereto. 2 4 . The information or subject matter designated and described in defendant' s interrogatory no. 5 and/or in the plaintiffs' answer thereto. 5 . The information or subject matter designated and described in defendant' s interrogatory no . 6 and/or in the plaintiffs' answer thereto. 6 . The information or subject matter designated and described in defendant' s interrogatory no . 7 and/or in the plaintiffs' answer thereto. 7 . The information or subject matter designated and described in defendant' s interrogatory no. 8 and/or in the plaintiffs' answer thereto. B . The information or subject matter designated and described in defendant' s interrogatory no. 9 and/or in the plaintiffs' answer thereto. 9. The information or subject matter designated and described in defendant' s interrogatory no. 10 and/or in the plaintiffs' answer thereto. 10 . The information or subject matter designated and described in defendant' s interrogatory no. 11 and/or in the plaintiffs' answer thereto. 11 . The information or subject matter designated and described in defendant' s interrogatory no. 12 and/or in the plaintiffs' answer thereto. 12 . The information or subject matter designated and described in defendant' s interrogatory no . 13 and/or in the plaintiffs' answer thereto. 3 13 . The information or subject matter designated and described in defendant' s interrogatory no. 14 and/or in the plaintiffs' answer thereto. 14 . The information or subject matter designated and described in defendant' s interrogatory no . 15 and/or in the plaintiffs' answer thereto. 15 . The information or subject matter designated and described in defendant' s interrogatory no. 16 and/or in the plaintiffs' answer thereto. 16 . The information or subject matter designated and described in defendant' s interrogatory no. 17 and/or in the plaintiffs' answer thereto. 17 . The information or subject matter designated and described in defendant' s interrogatory no. 18 and/or in the plaintiffs' answer thereto. 18 . The information or subject matter designated and described in defendant' s interrogatory no. 19 and/or in the plaintiffs' answer thereto. 19 . The information or subject matter designated and described in defendant's interrogatory no. 20 and/or in the plaintiffs' answer thereto. 20 . To whatever extent not previously provided in response to any of the foregoing document requests, or otherwise, the following documents and things : any and all documents and things, of any nature and description whatsoever, which the plaintiff intends to offer into evidence at the trial of this matter. In the event that the plaintiff does not have any of the foregoing documents or has not been able to obtain them in a timely fashion, s/he shall state 4 in writing, under the penalties of perjury, the specific documents which are not available, the reasons the documents are not available , and what efforts have been made to obtain the documents . As more information becomes available there is a continuing duty to supplement . THE CITY OF SALEM, et al, By Their City Solicitor, Wil am J. Lundre 6, Esq. 81 Washington Street Suite 37 Salem, MA 01970 Tel : 978 . 741 . 3888 Certificate of Service I, William J. Lundregan, hereby certify that on / 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. i Wil '"am J. Lundreg Esq. 5 COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, ss . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS. WALTER B. POWERS, III, CHARLES M. PULEO, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants INTERROGATORIES PROPOUNDED BY DEFENDANT, CITY OF SALEM TO THE PLAINTIFF, DOROTHY L. HARRINGTON, TRUSTEE Pursuant to Mass . R. Civ. P . 33, the plaintiff, Dorothy L. Harrington, Trustee, is hereby required to answer each and every one of the following interrogatories within the time provided by said rule . NOTE: Notwithstanding their use of "all," "any and all" and/or other, all-inclusive designations, the following interrogatories shall be deemed to exclude from their scope materials privileged by the attorney-client privilege, the attorney work-product privilege, and the privilege afforded to materials compiled by or at the behest of Counsel in 1 anticipation of litigation. 1 . Please state your name, address, occupation, and business address (es) . 2 . Please state the name, address, occupation, and business address of each and every person consulted in order to obtain information used in answering these interrogatories, excepting herefrom only the defendant' s attorney. 3. Please state the name, address, occupation, and business address of each and every person known to, or believed by, you to have knowledge regarding the facts of this case, excepting herefrom only your attorney. 4 . Please state the date on which you acquired the property at 18 Washington Square West, Salem, Massachusetts, known as the Hawthorne Hotel. 5 . Please state how the property at 18 Washington Square West, Salem, Massachusetts was zoned (i . e . in what type of zoning district it was located) on the date that you acquired it. 6 . Please state how the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts was zoned (i. e. in what type of zoning district it was located) on the date that you acquired your property at 18 Washington Square West, Salem, Massachusetts . 7 . Please describe how the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts appeared on the date that you purchased acquired the property at at 18 Washington Square West, Salem, Massachusetts . Include in your answer hereto, but without limitation, the location, size and complete descriptions of any and all buildings that were upon the property, the uses to which such buildings were put, the location, size and complete 2 descriptions of any and all driveways, parking lots and other paved areas on the property, the uses to which such paved areas were put, the location, size and complete description of any and all greenery and/or other plantings upon the property. 8 . Please describe, in full and complete detail, what uses have r been made of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts, from the date that you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof. 9 . Please describe, in full and complete detail, what uses have been made of the property at 18 Washington Square West, Salem, Massachusetts, from the date that you acquired it to date hereof. 10 . If, from the date on which you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof, there have been any changes in the zoning of your said property, please describe any and all such changes in full and complete detail, providing the date and the substance of each and every such change. 11 . If, from the date on which you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof, there have been any changes in the zoning of the property at 223- 231 Derby Street and 23 Congress Street, Salem, Massachusetts, please describe any and all such changes in full and complete detail, providing the date and the substance of each and every such change. 12 . If you or your predecessors in title have ever sought a variance or a special permit for your property at 18 Washington Square West, Salem, Massachusetts, then with respect to each and every such instance, please provide the following information: the 3 date of the application, the nature of the variance or special permit sought, the reason why you or they sought the variance or special permit, whether or not the application was granted, and, if it was granted, exactly what use (s) were made of the variance or permit. 13 . If, to your knowledge, from the date on which you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof, the owners of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts ever sought a variance or a special permit for that property, please provide the following information: the date of the application, the nature of the variance or special permit sought, the reason given for the variance or special permit, whether or not the application was granted, and, if it was granted, exactly what use (s) were made of the variance or permit . 14 . If, from the date on which you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof, you have ever made any improvements to the said property, please describe any and all such improvements in full and complete detail. 15 . Please state : (a) the date and manner in which you acquired the property at 18 Washington Square West, Salem, Massachusetts, (b) the price you paid to acquire the property, (c) the current assessed value of that property, and (d) the current market value of that property (to the best of your knowledge and belief) . 16 . What is the distance between the portion of your property at 18 Washington Square West, Salem, Massachusetts, that is nearest to portion of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts? 4 17 . Please state, in full and complete detail, all of the factual reasons for your opposition to the July 29, 1999 decision of the City of Salem Planning Board which granted a special permit to the Pickering Wharf Realty Trust . Include in your answer hereto any and all specific harms to yourself or your property at 18 Washington Square West, Salem, Massachusetts, that you anticipate t from the issuance of the special permit; and with respect to each and every such anticipated harm, please set forth the specific, factual basis for your belief that such harm to yourself or your property is likely to follow from the allowance of the special permit. 18 . If you intend to call any expert witnesses to testify to the matters described and discussed in interrogatory no. 17 and your answer thereto, then please identify by name, address and area of expertise each and every such expert witness, and with respect to each and every such expert witness, please provide the following information: (a) the subject matter on which the expert is expected to testify, (b) the substance of the facts and opinions to which the expert is expected to testify, and (c) a summary of the grounds for each opinion. 19. If you intend to call any non-expert witnesses to testify to the matters described and discussed in interrogatory no. 23 and your answer thereto, then please identify by name, address, occupation and business address, each and every such witness . 20 . Please identify, by name, address, occupation and business address, each and every witness whom you intend to call to testify at the trial of this matter. 5 THE CITY OF SALEM, et al, By Their City Solicitor, r \ W iam J. Lundr an, Esq. 81 Washington reet Suite 37 Salem, MA 01970 Tel : 978 . 791 . 3888 Certificate of Service I, William J. Lundregan, hereby certify that on / f 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01995. Signed under penalty of perjury. illia J. undrega . Esq. 6 COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, ss . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS . WALTER B. POWERS, III, CHARLES M. PULED, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants REQUEST FOR PRODUCTION OF DOCUMENTS PROPOUNDED BY DEFENDANT, CITY OF SALEM, TO THE PLAINTIFF, DOROTHY L. HARRINGTON, TRUSTEE Pursuant to Mass . R. Civ. P . 34 , the plaintiff, Dorothy L. Harrington, Trustee, is hereby required to produce copies of the documents described hereinbelow at the offices of the defendant' s attorney within the time provided by rule. NOTE: Notwithstanding their use of " all," " any and all" and/or other, all- inclusive designations, the following Interrogatories shall be deemed to exclude from their scope materials privileged by the attorney-client privilege, the attorney work-product privilege, and the privilege afforded to materials compiled by or at 1 the behest of Counsel in anticipation of litigation. Any and all acceptances, accounts, advertisements, agreements, amendments, applications, approvals, balance sheets, blueprints, books , brochures, building permits, canceled checks, chalks, ` charts, circulars, citations, codicils, complaints, contracts, correspondence, deeds , diagrams , drawings, flyers, graphics, income statements, invitations , invoices, leaflets, ledgers, literature , memoranda , notes , orders , outlines , permits , petitions, photographs , plans , proposals , purchase orders , recordings (audio and/or video) , records, repair orders, reports, responses , solicitations, special permits , specifications , statistical compilations, studies, submissions, variances, work orders, and/or other documents or other tangible items, of any kind and nature whatsoever, by whomever authored, for whatever purpose (s ) , to whomever addressed, and by whomever received, excepting herefrom only matter privileged by the aforementioned privileges, that are within the possession, custody or control of the plaintiff, its agents, employees or servants, or to which plaintiff has a right of access and may obtain by making a reasonable effort , that allude to, attest to, describe, document, illustrate, and/or otherwise evidence, in any manner whatsoever, any or all of the following matters : 1 . The information or subject matter designated and described in defendant' s interrogatory no. 2 and/or in the plaintiffs' answer thereto. 2 . The information or subject matter designated and described in defendant' s interrogatory no. 3 and/or in the plaintiffs' answer thereto. 3 . The information or subject matter designated and described in defendant' s interrogatory no. 4 and/or in the plaintiffs' answer 2 thereto. 4 . The information or subject matter designated and described in defendant' s interrogatory no. 5 and/or in the plaintiffs' answer thereto. 5 . The information or subject matter designated and described in defendant' s interrogatory no. 6 and/or in the plaintiffs' answer thereto. 6. The information or subject matter designated and described in defendant' s interrogatory no. 7 and/or in the plaintiffs' answer thereto. 7 . The information or subject matter designated and described in defendant' s interrogatory no. 8 and/or in the plaintiffs' answer thereto. i, 8 . The information or subject matter designated and described in defendant' s interrogatory no. 9 and/or in the plaintiffs' answer thereto. 9 . The information or subject matter designated and described in defendant' s interrogatory no. 10 and/or in the plaintiffs' answer thereto. 10 . The information or subject matter designated and described in defendant' s interrogatory no . 11 and/or in the plaintiffs' answer thereto. 11 . The information or subject matter designated and described in defendant' s interrogatory no. 12 and/or in the plaintiffs' answer thereto. 3 12 . The information or subject matter designated and described in defendant' s interrogatory no . 13 and/or in the plaintiffs' answer thereto. 13 . The information or subject matter designated and described in defendant' s interrogatory no. 14 and/or in the plaintiffs' answer thereto. 14 . The information or subject matter designated and described in defendant' s interrogatory no. 15 and/or in the plaintiffs' answer thereto. 15 . The information or subject matter designated and described in defendant' s interrogatory no. 16 and/or in the plaintiffs' answer thereto. 16 . The information or subject matter designated and described in defendant' s interrogatory no. 17 and/or in the plaintiffs' answer thereto. 17 . The information or subject matter designated and described in defendant' s interrogatory no . 18 and/or in the plaintiffs' answer thereto. 18 . The information or subject matter designated and described in defendant' s interrogatory no. 19 and/or in the plaintiffs' answer thereto. 19 . The information or subject matter designated and described in defendant' s interrogatory no. 20 and/or in the plaintiffs' answer thereto. 20 . To whatever extent not previously provided in response to any of the foregoing document requests, or otherwise, the following documents and things : any and all documents and things, of any 4 nature and description whatsoever, which the plaintiff intends to offer into evidence at the trial of this matter. In the event that the plaintiff does not have any of the foregoing documents or has not been able to obtain them in a timely fashion, s/he shall state in writing, under the penalties of perjury, the specific documents which are not available, the reasons the documents are not � . available, and what efforts have been made to obtain the documents . As more information becomes available there is a continuing duty to supplement . THE CITY OF SALEM, et al, By Their City So icitor, `— Wi iam J. Lundre n, Esq. 81 Washington eet Suite 37 Salem, MA 01970 Tel : 978 . 741 . 3888 Certificate of Service I, William J. Lundregan, hereby certify that on / 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. Willi J. Lundregan, q- 5 CITY OF SALEM - MASSACHUSETTS WILLIAM J.LUNDFREGAN Legal Department JOHN D.KEENAN City Solicitor 93 Washington Street Assistant City Solicitor 81 Washington Street SalemMassachusetts 01970 so Washington Street , Tel:978-741-3888 Tel:978-741-4453 Fax:978-741-8110 Fax:978-740-0072 September 1 , 1999 Charles W. Trombly, Jr. , Recorder Land Court Department 20-24 New Chardon Street Boston, MA 02114-4703 RE : Dorothy L. Harrington, Trustee of the Three Corners Realty Trust, et als VS . Walter B. Powers, III , et als Docket No. : 99-258338 Dear Sir: Please find enclosed for filing and docketing in the above matter the following documents : 1 . Answer of defendants, City of Salem and City of Salem Planning Board; 2 . Interrogatories Propounded by Defendant, City of Salem to the Plaintiff, Dorothy L. Harrington, Trustee; 3 . Request for Production of Documents Propounded by Defendant, City of Salem, to the Plaintiff, Dorothy L. Harrington, Trustee; 4 . Interrogatories Propounded By Defendant , City of Salem, to the Plaintiff, Donald J. Michaud, Trustee; S . Request for Production of Documents Propounded City of Salem to the Plaintiff, Donald J. Michaud, Trustee; 6 . Certificate of Service . If you have any questions with reference to this matter, please do not hesitate to call me. Very truly yours, WILLIAM J. LUNDREGAN CITY SOLICITOR WJL/amc CC : Morris M. Goldings, Esq. Mayor Stanley J. Usovicz, Jr. Walter B. Power III , Chairman, Planning Board Patrick Reffett, City Planner COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, ss . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS. ANSWER OF DEFENDANTS, CITY OF SALEM AND CITY WALTER B. POWERS, III, CHARLES OF SALEM PLANNING BOARD M. PULED, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants COUNT I: JUDICIAL REVIEW UNDER G.L. CH. 40A, SEC. 17 1. The first sentence in paragraph 1 of the complaint is admitted; the second sentence is denied. 2 . The allegations in paragraph 2 of the complaint are admitted, except for so much thereof as alleges that " (a) copy of the Decision is attached hereto and marked `A,"' which is denied. 3 . The allegations in paragraph 3 of the complaint that state, " (t) he complaint also seeks a declaration of rights under G.L. c. 231A with respect to the actions of the Planning Board and the City of Salem" are admitted; any and all remaining allegations in 1 paragraph 3 are denied. 4 . The defendants are without sufficient knowledge to admit or deny the allegations in paragraph 9 of the complaint and call upon the plaintiffs to prove the same. 5 . The defendants are without sufficient knowledge to admit or deny the allegations in paragraph 5 of the complaint and call upon the plaintiffs to prove the same. 6. Admitted. 7 . Admitted. 8. Admitted. 9 . The defendants neither admit, nor deny, the allegations in paragraph 9 of the complaint, but state that the statute referenced therein speaks for itself; moreover, the defendants say that the excerpted portions of the statute may not properly be read and interpreted in isolation from other, pertinent portions of the statute and/or from the provisions of other relevant statutes and laws. 10 . The defendants neither admit, nor deny, the allegations in paragraph 10 of the complaint, but state that the ordinance referenced therein speaks for itself; moreover, the defendants say that the excerpted portions .of the ordinance may not properly be read and interpreted in isolation from other, pertinent portions of the ordinance and/or from the provisions of other relevant ordinances, statutes and laws . 11 . Admitted, that, " (o) n September 9 , 1997 , the Planning Board adopted a "Master Plan Update . . ." ; as for the remaining allegations in paragraph 11 of the complaint, the defendants neither admit, nor deny, the same, but instead say that that the 2 excerpted portion of the Master Plan Update may not properly be read and interpreted in isolation from other, pertinent portions of the Plan and/or from the provisions of other relevant ordinances, statutes and laws. 12 . Admitted; that, " (o) n August 14 , 1997, the City of Salem issued a request for a proposal for a consultant to prepare a hotel feasibility study," and that the passage therefrom quoted in paragraph 12 of the complaint does appear in the request for feasibility study; any and all remaining allegations in paragraph are denied; and further answering, the defendants say that that the quoted excerpt from the request may not properly be read and interpreted in isolation from other, pertinent portions of the request and/or from the provisions of other relevant ordinances, statutes and laws. 13 . The first sentence in paragraph 13 of the complaint is admitted; the balance of that paragraph is denied. 14 . The first sentence in paragraph 14 of the complaint is admitted; the balance of that paragraph is denied. 15 . The first sentence in paragraph 15 of the complaint is admitted; the balance of that paragraph is denied. 16. Admitted, that the passages quoted from the Landauer Report in paragraph 16 of the complaint do appear in that report; however, the defendants say that that the quoted excerpts from the Report may not properly be read and interpreted in isolation from other, pertinent portions of the Report and/or from the provisions of other relevant ordinances, statutes and laws . 17 . Admitted, that, " (o) n May 27, 1999, the Defendant Pickering Wharf filed a letter purporting to be an application with the Defendant Planning Board for a `Site Plan Review and Wetlands and 3 f Flood Hazard District Special Permit,"' and that the excerpt therefrom quoted in paragraph 17 of the complaint does appear in the application; the balance of paragraph 17 is denied; and further answering, the defendants say that the quoted excerpts from the application may not properly be read and interpreted in isolation from other, pertinent portions of the application and/or from the provisions of other relevant documents, ordinances, statutes and laws. 18. Admitted. 19. The first sentence in paragraph 19 of the complaint is admitted; the balance of paragraph 19 is denied; and any express or implied allegation that the "objections" contained in the referenced letter were valid is also denied. 20 . Admitted, that, " (o) n July 28 , 1999, the Trust appeared through counsel before the Planning Board at its hearing and presented documents, testimony and argument in opposition to the application," and that counsel for the Trust made the arguments set out in the balance of paragraph 20 of the complaint; any express or implied allegation that counsel' s arguments were valid and supported by the evidence before the Board is denied. 21. Admitted, that, " (o) n July 28, 1999, the Trust presented to the Planning Board a copy of a report dated January 14, 1997 , previously furnished to the Board, from Pinnacle Advisory Group . . . entitled: `Market Demand Study for a Proposed Hotel to be Located in Salem, Massachusetts,"' and that the language quoted from the report in paragraph 21 of the complaint does appear in the report; any and all remaining allegations in paragraph 21 are denied; and further answering, the defendants say that the quoted excerpts from the report may not properly be read and interpreted in isolation from other, pertinent portions of the report and/or 4 from the provisions of other relevant documents, ordinances, statutes and laws. 22 . Admitted, that, " (o) n July 28, 1999, a principal of Pinnacle Advisory Group presented testimony to the Board" ; the balance of the allegations in paragraph 22 of the complaint are conclusory, seek to characterize the testimony, and are denied; and any express or implied allegation that the testimony was valid and supported by the evidence before the Board is also denied. 23 . Admitted, that, "the City has required the Pickering Wharf Trust to develop a hotel of `not less than 70 and not more than 140 rooms' as part of a Tax Increment Financing program with respect to which the City entered a Memorandum of Understanding on April 8, 1998" ; any and all remaining allegations in paragraph 23 of the complaint are denied. 24. Denied. 25. Denied. 26. Denied. COUNT TWO: DUE PROCESS 27 . Defendants incorporate by reference and here re-allege their respective responses to paragraphs 1-26, supra. 28 . Denied. 29. AFFIRMATIVE DEFENSES Further answering the complaint, the defendants say as follows: 5 1 . The defendants say that the decisions complained of were made lawfully, properly and wholly within the scope of their administrative discretion. 2 . The defendants plead failure to exhaust administrative remedies. 3 . The defendants plead insufficiency of process. 4. The defendants plead insufficiency of service of process. 5 . The defendants specifically deny the genuineness of any purported signatures upon documents which the plaintiffs rely on in this case. 6. The defendants plead laches. 7 . The defendants state that the present action against them is time-barred by operation of the applicable statute ( s ) of limitations . 8 . The defendants plead lack of subject matter jurisdiction. 9. The defendants plead lack of personal jurisdiction. 10. The defendants plead improper venue. 11 . The defendants say that the plaintiffs lack standing to bring the present complaint and/or the various counts thereof, for the reason - among others - that they do not qualify as "aggrieved persons" under the applicable laws. 12 . The defendants plead unclean hands on the part of the plaintiffs. 13 . The defendants plead estoppel on the part of the plaintiffs. 6 r e. 14 . The defendants state that the plaintiffs have failed to satisfy the procedural prerequisites to bringing this action. 15. The defendants say that for all of the reasons aforementioned, the complaint fails to state a claim upon which relief may be granted. WHEREFORE, the defendants demand the dismissal of the complaint, with costs taxed to the plaintiffs . THE CITY OF SALEM, et al, By Their City Solicitor, Wil am Lundre Esq. 81 am S eet Suite 37 Salem, MA 01970 Tel: 978 . 741 . 3888 Certificate of Service I, William J. Lundregan, hereby certify that on 44/0 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. WilliA J. LundregaEsq- 7 COMMONWEALTH OF MASSACHUSETTS THE LAND COURT Docket No. 99-258338 ESSEX, ss. DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALDJ. HofDtheand MSke MICHAUD, Trustees Realty and Investmentrust Plaintiffs , vs . WALTER B. POWERS, III, CHARLES M. PULEO, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants BY DEFENDANT, CITY OF SALE INTERROGATORIES PROPOUNDED M, TO THE PLAINTIFF, DONALD J. MICHAUD, TRUSTEE 33, the plaintiff, Donald J. Michaud, Pursuant to Mass . R. Civ. P• eveone of the is hereby required to answer each and every said rule. Trustee, following interrogatories within the time provided by use of ��all,,, "any and all„ NOTE: Notwithstanding their the following and/or other, all-inclusive designations , shall be deemed to exclude from their interrogatories -client pscope the attorneyrivilege , the materials privileged by afforded to work-product privilege, and the privilege attorney at the behest of Counsel in materials compiled by or anticipation of litigation. 1 � ^ e state Your name address, occupation, and business 1 , pleasbusiness esl • occupation, and address ( to obtain the name , addresconsulted in order Pleas state on excepting e every Pers atonies, 2 • address of each and answering these interrO information used in the defendant' s attorney and business heYefrom only occupation, You to the name, address, or believed by, Y 3. plea se state every Person known to, this case excepting of each and the facts of address regarding have knowledge at attorney* d the Property herefrom only Your acquire the date on which you to Massachusetts 9 please state Salem, Salem, 229 Derby Street, 224 Derby Street, 222- to how the Pr Op what2tYPe of zoning district it erty at 5 . 14 Please tts was zoned li.e• in acquired it- located) that You Street 23 was ted( on the date 22 Denby and lova pro at 3-231 i.e. in what type how the p was zoned acquired please state husetts that you 6 . Salem, Massae on the date s Street, located) setts• Congres it was Salem, Massachu of zoning district Street, 224 Derby 23 at 222- b Street and Property at 223-231 Derby that your P Property on the date how the P appeared Please describe chusetts Derby Street, � . Salem, Massa at 222-229 Congress Street, d the property at wen hereto, but without acquire Include i Your ars of any you purchased n descriPtyOns ts • and complete to which Salem, Massachusetts ' size the uses the location, the PrOParty, comPlete limitation, s that were upon . size and and all building the location, and other Put ' parking lots buildings were P driveways, P paved areas such tions of any and all the uses to which such P of any and descrrtyr pavediareashenlocatponpesize and2comPlete description were Put, t ertY • s up°n the prop enerY other Planting what uses have and/°r fete detaeet and 23 Congress all 9re full and comp S . Ple as des roperty at 223-23theedate that You acquired You e °ribs, date of the p from Massachusetts, been rade tts, Salem, Salem, Massachune Street, Str proer'ty at 222-224 Derby uses have at hereof - complete detail, Street, Salem, 1 and acq t of describe, in full at 222-229 Derby to date here be, 9 . Please e property aired made of th date t You at 222- that hereof - been from the achusetts, acquired Your property have Mass on which Y°u to hereof, there e to da d P er please SO • If' from the dSalem, Massachusetts, our aid rop tt r detail, Street, of Y d complete 229 Derby the zoning full an such in in andevery any changes changes of each been all such and the substance describe any date and _ providing the at 222 - red change. You acquired Yeur property there have th to on which You ac , to pate hereof, 223-231 Derby e da 11. If , from em, Massach ertY ch please Street Sal of the p usetts , 224 Derby Str in the zoning Massa detail, been any changes Congress Street, Salem, ll and complete such Street and among such changes in e °f each an every 23 changes d d all tanc describe any date and the the sought a providing title have ever 9 at 22-22 Derby change sons in 2 es every 12 . If you or Y°ura p Pe mit for your hprospect to each and e date then with it resp information or a it special following variance or special per e Street , Salem, please Provide e of the 7arlanc variance or special he f h istance a pl eoation, whYeY°ut°r they sought tgranted, and, if it was the P sought , the reason not the application permit, whether or 3 own -►.. - per made of the variance or P granted, exactly what usels) Weremade the dateon which You acquired o etts , to your knowledge, by Street Salem, M23sachu Street 13 • roper Y at 222-224o Derby Property at tet eve, sought If , a your P t date hereof , the oStreet ,ners Masroperty, Please Pro the Salem, leas P it for that P the nature d 23 Congresslication, the an e or a special P the date of the aPP reason given for var following . .formation'speciPermit sought, tOr not the application was the varia ce Or al Permit, Whether at what use (s) were made f variance and, if it was gra granted, permit. property at 222- the variance or P ou acquired Y°ur Prop you have e on which Y hereof, Y 14 . If, from the d Salem, Massachusestats, to Y, please describe t to the id P detail- ever Derby St complete eVer made any imPro Movements in full and you acquired any and all such imp and manner in which c usetts, (b) state: (a) the date rbyStreet, Salem, Mas c) the current please De the Property at 222-2to acquire the Property, rrent market value You Paid and (d) belief) • t d Pr' Y ro er Y d e an the Psed value 0f (t at Pr t of Your knowle 9 asse the of Your Property at of that Property between the portion is nearest to distance betty assachusetts , that d 23 Congress 16 What is the M Street, Salem, 231 Derby Street an 222-224 Derby e Property at 223- portion Salem, Massachusetts? of the factual Street, all the and complete detail, decision of in full July 29, t to the state, the special Permit 17 . please our opposition to ranted a sp answer hereto any or Y which 9 a er reasons f planning $Oard Include inoup erty at 222-224 nni City °f SalemWharf Realty Trust • elf or your rop pic kering harms to yours and all specific 4 m tY e 0 ate fzd evezY nt an 1 that You ct tO eachc, facto e-LtY sachusettsd Wyth zesP re speci YQuz pzoP) Salem, ,has zmit an fpzth set 0\� self oz ezmit .eet, e sPe°ial P Please hazm to Y the special P fY to they e h f ti ou f tY, hazm, suc ce ° tes d y ateb elief thathe all°Wan itnesses to no . 1� dnazea o£o ioz Y°u foil°W fzom any expeztintezzogatOaddzess \?nzespect ln9 to eto call ueac j& in by name, a d Wit e olloW lY �,11tend disc d ntifY mess, de th f ezt is Sf Y°u s�ibed ae d lease caeexPezt please P h1 the and 0Pini°no f e ters . eto and eve"v ez Witne mattez o f the factal a su asY -yez each h exP ect st nce ° and �peztise eve-0 s.) the sub3 e 5\b to testzfY iVj to l th testi t and ion' la1fY bl xpe,ted t° ses t° e23 and _ infozma d to testezt is e ion. t Witnes atozY 'Do addzess expecte h the exP each opin non,expez intezz°g naR`ei ess - Whic fpz ll aM ed in fY by Witn the 9r°unds tend t° caand dis°cease identevezY such d pusiz�e s s Sf You indesczibed then Pl each and ata. an to test if lg . matters thezeto , 8 addzess, ss, o°°uPd to call Y the sWez iYjes addze inters Youz an on and Vasname, Whom Yoh pGcupati e identlf v'ezY Witness leas and e ttez . 20 ' ess of this ma add tz1a1 al, e t at th F sAS,EM,icitoz GSTY �itY Sol T yS T,°eiz , Lundze eet Wi a rl 9 �n S 1 t 01 Was 31 0 1910 ite g8 SSalem9 8 '141,38 5 Tel ' i s I Certificate of Service I, William J. Lundregan, hereby certify that on 1999 I mailed, postage pre-paid, a copy of the foreg ing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01995. Signed under penalty of perjury. I I Wi'il • mLundr an, Esq. i 6 COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, ss . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS. WALTER B. POWERS, III, CHARLES M. PULED, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants REQUEST FOR PRODUCTION OF DOCUMENTS PROPOUNDED BY DEFENDANT, CITY OF SALEM, TO THE PLAINTIFF, DONALD J. MICHAUD, TRUSTEE Pursuant to Mass. R. Civ. P. 34, the plaintiff, Donald J. Michaud, Trustee, is hereby required to produce copies of the documents described hereinbelow at the offices of the defendant' s attorney within the time provided by rule. NOTE: Notwithstanding their use of " all," " any and all" and/or other, all-inclusive designations, the following Interrogatories shall be deemed to exclude from their scope materials privileged by the attorney- client privilege, the attorney work-product privilege, and the privilege afforded to materials compiled by or at the behest of Counsel in anticipation of litigation. 1 Any and all acceptances, accounts, advertisements, agreements, amendments, applications, approvals, balance sheets, blueprints, books, brochures, building permits, canceled checks, chalks, charts, circulars, citations, codicils, complaints, contracts, correspondence, deeds, diagrams, drawings, flyers, graphics, income statements, invitations, invoices, leaflets, ledgers, literature, memoranda , notes , orders , outlines , permits, petitions, photographs, plans, proposals, purchase orders, recordings (audio and/or video) , records, repair orders, reports, responses, solicitations, special permits, specifications, statistical compilations, studies, submissions, variances, work orders, and/or other documents or other tangible items, of any kind and nature whatsoever, by whomever authored, for whatever purpose ( s) , to whomever addressed, and by whomever received, excepting herefrom . only matter privileged by the aforementioned privileges, that are within the possession, custody or control of the plaintiff, its agents, employees or servants, or to which plaintiff has a right of access and may obtain by making a reasonable effort, that allude to, attest to, describe, document, illustrate, and/or otherwise evidence, in any manner whatsoever, any or all of the following matters: 1. The information or subject matter designated and described in defendant' s interrogatory no. 2 and/or in the plaintiffs' answer thereto. 2 . The information or subject matter designated and described in defendant' s interrogatory no. 3 and/or in the plaintiffs' answer thereto. 3 . The information or subject matter designated and described in defendant' s interrogatory no. 4 and/or in the plaintiffs' answer thereto. 2 4 . The information or subject matter designated and described in defendant' s interrogatory no . 5 and/or in the plaintiffs' answer thereto. S . The information or subject matter designated and described in defendant' s interrogatory no. 6 and/or in the plaintiffs' answer thereto. 6 . The information or subject matter designated and described in defendant' s interrogatory no. 7 and/or in the plaintiffs' answer thereto. 7 . The information or subject matter designated and described in defendant' s interrogatory no. 8 and/or in the plaintiffs' answer thereto. 8 . The information or subject matter designated and described in defendant' s interrogatory no. 9 and/or in the plaintiffs' answer thereto. 9. The information or subject matter designated and described in defendant' s interrogatory no. 10 and/or in the plaintiffs' answer thereto. 10 . The information or subject matter designated and described in defendant' s interrogatory no. 11 and/or in the plaintiffs' answer thereto. 11 . The information or subject matter designated and described in defendant' s interrogatory no. 12 and/or in the plaintiffs' answer thereto. 12 . The information or subject matter designated and described in defendant' s interrogatory no. 13 and/or in the plaintiffs' answer thereto. 3 13 . The information or subject matter designated and described in defendant' s interrogatory no. 14 and/or in the plaintiffs' answer thereto. 14 . The information or subject matter designated and described in defendant' s interrogatory no. 15 and/or in the plaintiffs' answer thereto. 15 . The information or subject matter designated and described in defendant' s interrogatory no. 16 and/or in the plaintiffs' answer thereto. 16. The information or subject matter designated and described in defendant' s interrogatory no. 17 and/or in the plaintiffs' answer thereto. 17 . The information or subject matter designated and described in defendant' s interrogatory no. 18 and/or in the plaintiffs' answer thereto. 18 . The information or subject matter designated and described in defendant' s interrogatory no. 19 and/or in the plaintiffs' answer thereto. 19 . The information or subject matter designated and described in defendant' s interrogatory no. 20 and/or in the plaintiffs' answer thereto. 20. To whatever extent not previously provided in response to any of the foregoing document requests, or otherwise, the following documents and things : any and all documents and things, of any nature and description whatsoever, which the plaintiff intends to offer into evidence at the trial of this matter. In the event that the plaintiff does not have any of the foregoing documents or has not been able to obtain them in a timely fashion, s/he shall state 4 in writing, under the penalties of perjury, the specific documents which are not available, the reasons the documents are not available, and what efforts have been made to obtain the documents . As more information becomes available there is a continuing duty to supplement . THE CITY OF SALEM, et al, By Their City Solicitor, Wil am J. Lund re Esq. 81 Washington St eet Suite 37 Salem, MA 01970 Tel: 978 . 741 . 3888 Certificate of Service I, William J. Lundregan, hereby certify that on 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. IJ -� Wil ' am J. Lundre , Esq. 5 COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, ss . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS. WALTER B. POWERS, III, CHARLES M. PULEO, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants INTERROGATORIES PROPOUNDED BY DEFENDANT, CITY OF SALEM, TO THE PLAINTIFF, DOROTHY L. HARRINGTON, TRUSTEE Pursuant to Mass . R. Civ. P . 33, the plaintiff, Dorothy L. Harrington, Trustee, is hereby required to answer each and every one of the following interrogatories within the time provided by said rule. NOTE: Notwithstanding their use of "all," "any and all" and/or other, all-inclusive designations, the following interrogatories shall be deemed to exclude from their scope materials privileged by the attorney-client privilege, the attorney work-product privilege, and the privilege afforded to materials compiled by or at the behest of Counsel in 1 anticipation of litigation. 1 . Please state your name, address, occupation, and business address (es) . 2 . Please state the name, address, occupation, and business address of each and every person consulted in order to obtain information used in answering these interrogatories, excepting herefrom only the defendant' s attorney. 3. Please state the name, address, occupation, and business address of each and every person known to, or believed by, you to have knowledge regarding the facts of this case, excepting herefrom only your attorney. 1 4 . Please state the date on which you acquired the property at 18 Washington Square West, Salem, Massachusetts, known as the Hawthorne Hotel. 5. Please state how the property at 18 Washington Square West, Salem, Massachusetts was zoned (i . e. in what type of zoning district it was located) on the date that you acquired it. 6 . Please state how the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts was zoned (i .e. in what type of zoning district it was located) on the date that you acquired your property at 18 Washington Square West, Salem, Massachusetts. 7 . Please describe how the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts appeared on the date that you purchased acquired the property at at 18 Washington Square West, Salem, Massachusetts . Include in your answer hereto, but without limitation, the location, size and complete descriptions of any and all buildings that were upon the property, the uses to which such buildings were put, the location, size and complete 2 descriptions of any and all driveways, parking lots and other paved areas on the property, the uses to which such paved areas were put, the location, size and complete description of any and all greenery and/or other plantings upon the property. 8 . Please describe, in full and complete detail, what uses have been made of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts, from the date that you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof. 9 . Please describe, in full and complete detail, what uses have been made of the property at 18 Washington Square West, Salem, Massachusetts, from the date that you acquired it to date hereof. 10 . If, from the date on which you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof, there have been any changes in the zoning of your said property, please describe any and all such changes in full and complete detail, providing the date and the substance of each and every such change. 11 . If, from the date on which you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof, there have been any changes in the zoning of the property at 223- 231 Derby Street and 23 Congress Street, Salem, Massachusetts, please describe any and all such changes in full and complete detail, providing the date and the substance of each and every such change. 12 . If you or your predecessors in title have ever sought a variance or a special permit for your property at 18 Washington Square West, Salem, Massachusetts, then with respect to each and every such instance, please provide the following information: the 3 date of the application, the nature of the variance or special permit sought, the reason why you or they sought the variance or special permit, whether or not the application was granted, and, if it was granted, exactly what use (s) were made of the variance or permit . 13 . If, to your knowledge, from the date on which you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof, the owners of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts ever sought a variance or a special permit for that property, please provide the following information: the date of the application, the nature of the variance or special permit sought, the reason given for the variance or special permit, whether or not the application was granted, and, if it was granted, exactly what use (s) were made of the variance or permit . 14 . If, from the date on which you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof, you have ever made any improvements to the said property, please describe any and all such improvements in full and complete detail. 15 . Please state: (a) the date and manner in which you acquired the property at 18 Washington Square West, Salem, Massachusetts, (b) the price you paid to acquire the property, (c) the current assessed value of that property, and (d) the current market value of that property (to the best of your knowledge and belief) . 16 . What is the distance between the portion of your property at 18 Washington Square West, Salem, Massachusetts, that is nearest to portion of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts? 4 17 . Please state, in full and complete detail, all of the factual reasons for your opposition to the July 29, 1999 decision of the City of Salem Planning Board which granted a special permit to the Pickering Wharf Realty Trust . Include in your answer hereto any and all specific harms to yourself or your property at 18 Washington Square West, Salem, Massachusetts, that you anticipate from the issuance of the special permit; and with respect to each and every such anticipated harm, please set forth the specific, factual basis for your belief that such harm to yourself or your property is likely to follow from the allowance of the special permit. 18 . If you intend to call any expert witnesses to testify to the matters described and discussed in interrogatory no. 17 and your answer thereto, then please identify by name, address and area of expertise each and every such expert witness, and with respect to each and every such expert witness, please provide the following information: (a) the subject matter on which the expert is expected to testify, (b) the substance of the facts and opinions to which the expert is expected to testify, and (c) a summary of the grounds for each opinion. 19. If you intend to call any non-expert witnesses to testify to the matters described and discussed in interrogatory no. 23 and your answer thereto, then please identify by name, address, occupation and business address, each and every such witness. 20 . Please identify, by name, address, occupation and business address, each and every witness whom you intend to call to testify at the trial of this matter. 5 THE CITY OF SALEM, et al, By Their City Solicitor, Wi iam J. Lundr an, Esq. 81 Washington eet Suite 37 Salem, MA 01970 Tel : 978 . 741 . 3888 Certificate of Service I, William J. Lundregan, hereby certify that on 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. illiaJ. undrega . Esq. 6 COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, ss. Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS. WALTER B. POWERS, III, CHARLES M. PULED, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants REQUEST FOR PRODUCTION OF DOCUMENTS PROPOUNDED BY DEFENDANT, CITY OF SALEM, TO THE PLAINTIFF, DOROTHY L. HARRINGTON, TRUSTEE Pursuant to Mass . R. Civ. P . 34 , the plaintiff, Dorothy L. Harrington, Trustee, is hereby required to produce copies of the documents described hereinbelow at the offices of the defendant' s attorney within the time provided by rule. NOTE: Notwithstanding their use of " all," " any and all" and/or other, all- inclusive designations, the following Interrogatories shall be deemed to exclude from their scope materials privileged by the attorney-client privilege, the attorney work-product privilege, and the privilege afforded to materials compiled by or at 1 the behest of Counsel in anticipation of litigation. Any and all acceptances, accounts, advertisements, agreements, amendments, applications, approvals, balance sheets, blueprints, books, brochures, building permits, canceled checks, chalks, charts, circulars, citations, codicils, complaints, contracts, correspondence, deeds, diagrams , drawings, flyers, graphics, income statements, invitations, invoices, leaflets, ledgers, literature, memoranda, notes, orders, outlines, permits, petitions, photographs , plans , proposals, purchase orders, recordings (audio and/or video) , records, repair orders, reports, responses, solicitations , special permits , specifications, statistical compilations, studies, submissions, variances, work orders, and/or other documents or other tangible items, of any kind and nature whatsoever, by whomever authored, for whatever purpose (s) , to whomever addressed, and by whomever received, excepting herefrom only matter privileged by the aforementioned privileges, that are within the possession, custody or control of the plaintiff, its agents, employees or servants, or to which plaintiff has a right of access and may obtain by making a reasonable effort, that allude to, attest to, describe, document, illustrate, and/or otherwise evidence, in any manner whatsoever, any or all of the following matters: 1 . The information or subject matter designated and described in defendant' s interrogatory no. 2 and/or in the plaintiffs' answer thereto. 2 . The information or subject matter designated and described in defendant' s interrogatory no. 3 and/or in the plaintiffs' answer thereto. 3 . The information or subject matter designated and described in defendant' s interrogatory no. 4 and/or in the plaintiffs' answer 2 I thereto. 4 . The information or subject matter designated and described in defendant' s interrogatory no. 5 and/or in the plaintiffs' answer thereto. 5 . The information or subject matter designated and described in defendant' s interrogatory no. 6 and/or in the plaintiffs' answer thereto. 6. The information or subject matter designated and described in defendant' s interrogatory no. 7 and/or in the plaintiffs' answer thereto. 7 . The information or subject matter designated and described in 9 defendant' s interrogatory no. 8 and/or in the plaintiffs' answer thereto. 8 . The information or subject matter designated and described in defendant' s interrogatory no. 9 and/or in the plaintiffs' answer thereto. 9. The information or subject matter designated and described in defendant' s interrogatory no. 10 and/or in the plaintiffs' answer thereto. 10 . The information or subject matter designated and described in defendant' s interrogatory no. 11 and/or in the plaintiffs' answer thereto. 11 . The information or subject matter designated and described in defendant' s interrogatory no . 12 and/or in the plaintiffs' answer thereto. 3 12 . The information or subject matter designated and described in defendant' s interrogatory no . 13 and/or in the plaintiffs' answer thereto. 13 . The information or subject matter designated and described in defendant' s interrogatory no. 14 and/or in the plaintiffs' answer thereto. 14 . The information or subject matter designated and described in defendant' s interrogatory no. 15 and/or in the plaintiffs' answer thereto. 15. The information or subject matter designated and described in defendant' s interrogatory no. 16 and/or in the plaintiffs' answer thereto. 16. The information or subject matter designated and described in defendant' s interrogatory no. 17 and/or in the plaintiffs' answer thereto. 17 . The information or subject matter designated and described in defendant' s interrogatory no. 18 and/or in the plaintiffs' answer thereto. 18 . The information or subject matter designated and described in defendant' s interrogatory no. 19 and/or in the plaintiffs' answer thereto. 19. The information or subject matter designated and described in defendant' s interrogatory no. 20 and/or in the plaintiffs' answer thereto. 20 . To whatever extent not previously provided in response to any of the foregoing document requests, or otherwise, the following documents and things : any and all documents and things, of any 4 e r nature and description whatsoever, which the plaintiff intends to offer into evidence at the trial of this matter. In the event that the plaintiff does not have any of the foregoing documents or has not been able to obtain them in a timely fashion, s/he shall state in writing, under the penalties of perjury, the specific documents which are not available, the reasons the documents are not available, and what efforts have been made to obtain the documents . As more information becomes available there is a continuing duty to supplement. THE CITY OF SALEM, et al, By Their City So icitor, A0 / 19 — Wi iam J. Lundre n, Esq. 81 Washington eet Suite 37 Salem, MA 01970 Tel: 978 . 741. 3888 Certificate of Service I, William J. Lundregan, hereby certify that on / 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. Willi J. Lundregan, q. 5 A' i I I i -. �f' - r.�� ��ri���rX,'E ,'�s+'4 _"� � �:--' � t".'--�: I `, �•��.r� J �\ j L d AL1 �� f'�,s.•{• "kms ,+_ ^ � 3 A Y "�s. ,^.y.`e �I�" IVR �--- 4 {t t ttl ii YT:1 I I �:< '< < A109 �_'��y" `_ /•Il'r i. I���"_ i F, %f ZZ . .<_y�I_ �1-li r.sail -.c Y y - 1 _ 1' / .�`..`,e'w�m:.o m'.;a w.a_rr s< a, I ^--�= ,t----` -rr '�' •-"® - --"-�� "',tlyt, - .� - £�"-� � y.'--� �.'c..r �'� '�.:1�I_��.: � P,.,:.p��•rt-1 1 i fd 2 "� •si. �r .: {- r wi^ _ 1 = — �:.:---'�- .:�-�_ y � � ' Ing ?v •' "`�'s�. ' r � .x> y, _ _- _ __ _ •$�zty i r ! _ f '' r q ,��. -, v t,-r•.._.-_' � i��_i, r - � �aY ���� -�,-,-.J1�_ - —�_y 3 -1_��� � '.- _ , - '�-_`" {� �•� 'i r t _ LL i LS.. rYom.�.. C j� [ .�• S �. _ _ �"{IY- is - <': 'l��n.1 =�-f�p ^ _" _ '=� �� '11 ..C:-. _7..IZ 1 - `<'.I"a���}�'f".�.�i,'"( a. f v � _ � I _ _ .a+-.:zi.� '—h 'w I �.- - _ ✓r r4.=^�' ':.lit ! M.�i`7.., e yk y i • X — _ - t -7io elm xt. r COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, ss . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS. ANSWER OF DEFENDANTS, CITY OF SALEM AND CITY WALTER B. POWERS, III, CHARLES OF SALEM PLANNING BOARD M. PULED, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants COUNT I : JUDICIAL REVIEW UNDER G.L. CH. 40A, SEC. 17 1. The first sentence in paragraph 1 of the complaint is admitted; the second sentence is denied. 2 . The allegations in paragraph 2 of the complaint are admitted, except for so much thereof as alleges that " (a) copy of the Decision is attached hereto and marked `A,'" which is denied. 3 . The allegations in paragraph 3 of the complaint that state, " (t) he complaint also seeks a declaration of rights under G. L. c. 231A with respect to the actions of the Planning Board and the City of Salem" are admitted; any and all remaining allegations in 1 paragraph 3 are denied. 4 . The defendants are without sufficient knowledge to admit or deny the allegations in paragraph 4 of the complaint and call upon the plaintiffs to prove the same. 5 . The defendants are without sufficient knowledge to admit or deny the allegations in paragraph 5 of the complaint and call upon the plaintiffs to prove the same. 6. Admitted. 7 . Admitted. 8 . Admitted. 9 . The defendants neither admit, nor deny, the allegations in paragraph 9 of the complaint, but state that the statute referenced therein speaks for itself; moreover, the defendants say that the excerpted portions of the statute may not properly be read and interpreted in isolation from other, pertinent portions of the statute and/or from the provisions of other relevant statutes and laws. 10 . The defendants neither admit, nor deny, the allegations in paragraph 10 of the complaint, but state that the ordinance referenced therein speaks for itself; moreover, the defendants say that the excerpted portions of the ordinance may not properly be read and interpreted in isolation from other, pertinent portions of the ordinance and/or from the provisions of other relevant ordinances, statutes and laws . 11 . Admitted, that, 'i (o) n September 4, 1997, the Planning Board adopted a "Master Plan Update . . . , as for the remaining allegations in paragraph 11 of the complaint, the defendants neither admit, nor deny, the same, but instead say that that the 2 excerpted portion of the Master Plan Update may not properly be read and interpreted in isolation from other, pertinent portions of the Plan and/or from the provisions of other relevant ordinances, statutes and laws. 12 . Admitted, that, " (o) n August 14 , 1997, the City of Salem issued a request for a proposal for a consultant to prepare a hotel feasibility study," and that the passage therefrom quoted in paragraph 12 of the complaint does appear in the request for feasibility study; any and all remaining allegations in paragraph are denied; and further answering, the defendants say that that the quoted excerpt from the request may not properly be read and interpreted in isolation from other, pertinent portions of the request and/or from the provisions of other relevant ordinances, statutes and laws. 13 . The first sentence in paragraph 13 of the complaint is admitted; the balance of that paragraph is denied. 14 . The first sentence in paragraph 14of the complaint is admitted; the balance of that paragraph is denied. 15 . The first sentence in paragraph 15 of the complaint is admitted; the balance of that paragraph is denied. 16. Admitted, that the passages quoted from the Landauer Report in paragraph 16 of the complaint do appear in that report; however, the defendants say that that the quoted excerpts from the Report may not properly be read and interpreted in isolation from other, pertinent portions of the Report and/or from the provisions of other relevant ordinances, statutes and laws. 17 . Admitted, that, " (o) n May 27, 1999, the Defendant Pickering Wharf filed a letter purporting to be an application with the Defendant Planning Board for a `Site Plan Review and Wetlands and 3 Flood Hazard District Special Permit, '" and that the excerpt therefrom quoted in paragraph 17 of the complaint does appear in the application; the balance of paragraph 17 is denied; and further answering, the defendants say that the quoted excerpts from the application may not properly be read and interpreted in isolation from other, pertinent portions of the application and/or from the provisions of other relevant documents, ordinances, statutes and laws. 18 . Admitted. 19 . The first sentence in paragraph 19 of the complaint is admitted; the balance of paragraph 19 is denied; and any express or implied allegation that the "objections" contained in the referenced letter were valid is also denied. 20 . Admitted, that, " (o) n July 28, 1999, the Trust appeared through counsel before the Planning Board at its hearing and presented documents, testimony and argument in opposition to the application," and that counsel for the Trust made the arguments set out in the balance of paragraph 20 of the complaint; any express or implied allegation that counsel' s arguments were valid and supported by the evidence before the Board is denied. 21 . Admitted, that, " (o) n July 28, 1999, the Trust presented to the Planning Board a copy of a report dated January 14, 1997, previously furnished to the Board, from Pinnacle Advisory Group . . . entitled: `Market Demand Study for a Proposed Hotel to be Located in Salem, Massachusetts,'" and that the language quoted from the report in paragraph 21 of the complaint does appear in the report; any and all remaining allegations in paragraph 21 are denied; and further answering, the defendants say that the quoted excerpts from the report may not properly be read and interpreted in isolation from other, pertinent portions of the report and/or 4 from the provisions of other relevant documents, ordinances, statutes and laws . 22 . Admitted, that, " (o) n July 28, 1999, a principal of Pinnacle Advisory Group presented testimony to the Board" ; the balance of the allegations in paragraph 22 of the complaint are conclusory, seek to characterize the testimony, and are denied; and any express or implied allegation that the testimony was valid and supported by the evidence before the Board is also denied. 23 . Admitted, that, "the City has required the Pickering Wharf Trust to develop a hotel of `not less than 70 and not more than 190 rooms' as part of a Tax Increment Financing program with respect to which the City entered a Memorandum of Understanding on April 8, 1998" ; any and all remaining allegations in paragraph 23 of the complaint are denied. 24. Denied. 25. Denied. 26. Denied. COUNT TWO: DUE PROCESS 27 . Defendants incorporate by reference and here re-allege their respective responses to paragraphs 1-26, supra . 28 . Denied. 29 . AFFIRMATIVE DEFENSES Further answering the complaint, the defendants say as follows: 5 1 . The defendants say that the decisions complained of were made lawfully, properly and wholly within the scope of their administrative discretion. 2 . The defendants plead failure to exhaust administrative remedies . 3. The defendants plead insufficiency of process . 4. The defendants plead insufficiency of service of process. 5 . The defendants specifically deny the genuineness of any purported signatures upon documents which the plaintiffs rely on in this case. 6. The defendants plead laches . 7 . The defendants state that the present action against them is time-barred by operation of the applicable statute ( s) of limitations. 8 . The defendants plead lack of subject matter jurisdiction. 9. The defendants plead lack of personal jurisdiction. 10 . The defendants plead improper venue. 11 . The defendants say that the plaintiffs lack standing to bring the present complaint and/or the various counts thereof, for the reason - among others - that they do not qualify as "aggrieved persons" under the applicable laws . 12 . The defendants plead unclean hands on the part of the plaintiffs . 13. The defendants plead estoppel on the part of the plaintiffs . 6 14 . The defendants state that the plaintiffs have failed to satisfy the procedural prerequisites to bringing this action. 15. The defendants say that for all of the reasons aforementioned, the complaint fails to state a claim upon which relief may be granted. WHEREFORE, the defendants demand the dismissal of the complaint, with costs taxed to the plaintiffs . THE CITY OF SALEM, et al, By Their City Solicitor, William J. Lundregan, Esq. 81 Washington Street Suite 37 Salem, MA 01970 Tel: 978 . 741 . 3888 Certificate of Service I, William J. Lundregan, hereby certify that on 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. William J. Lundregan, Esq. 7 PUG-20-99 19 : 39 FROM;ROCKETT MGMT ID=6176392290 PAGE 9/15 COMMONWEALTH OF MASSACHUSETTS ESSEX,SS,Sitting in TRIAL COURT OF TI-e SUFFOLK, SS CONZIONWEALTH LAND COURT DEPARTMENT Civil Action No. DOROTHY L.HARRINGTON,AS SHE IS TRUSTEE OF THE THREE CORNERS REALTY TRUST,AND DONALD J. MICHAUD AND MARY G.MICHAUD,AS THEY ARE TRUSTEES OF THE MI-SKE REALTY AND U,VESTMENT TRUST Plaintiff's V. WALTER B.POWER,III, AS HE IS CHAIRMAN AND CHARLES M. PULEO, JOAN C.MOUSTAKIS,GENE COLLINS, KIM DRISCOLL,L.LEE HARRINGTON, CARTER VINSON,DAVID WEINER, AND WILLIAM R. CULLEN,AS THEY ARE MEMBERS OF THE PLANNING BOARD OF THE CITY OF SALEM;, THE CITY OF SALEM;AND J. HILARY ROCKETT,AS HE IS TRUSTEE OF PICKERING WHARF REALTY TRUST Defendants COMPLAINT COUNT 1: JUDICIAL REVIEW UNDER G.L. C.40A ¢ 17 INTRODUCTION 1. This is a complaint for judicial review against the Planning Board of the City of Salem, the City of Salem and the Pickering Wharf Realty Trust by persons aggrieved by a decision of the Planning Board as it is constituted as a special permit granting authority which granted a special permit to the Pic' erilg Wharf Realty Trust. As set forth in this complaint, this decision was is excess of the f FUG-20-99 14 : 35 FROM:ROCKETT MGMT ID :6176392290 PAGE 5!75 authority of the said Board and was legally untenable, unreasonable, capricious and arbitrary_ 2. This complaint seeks to annul the decision of the Planning Board rendered July 29, 1999,and filed in the Office of the City Clerk July 29, 1999 (the "Decision'). (A copy of the Decision is attached hereto and marked"A.") 3. The complaint also seeks a declaration of rights under G.L. c- 23 IA with respect to the actions of the Planning Board and the City of Salem by virtue of the failure of the Planning Board to consider in its Decision the diminished value of, and the adverse effect upon,the property rights of the Plaintiffs caused by the Decision and the adverse economic effect on the City of Salem and its citizens generally. PARTIES 4. The Plaintiff Dorothy L. Harrington is the Trustee of Three Comers Realty Trust (the"Trust"), a Massachusetts Realty Trust which was established under a Declaration of Trust dated December 30, 1985,and recorded in Essex South District Registry of Deeds, Book 8150, page 380. The Trust owns the property known as the Hawthorne Hotel(the"Hawthome'�Iocated on the Common at 18 Washington Square West in Salem, Massachusetts and is very near the property subject to the Decision(approximately 800 feet away). The Hawthorne has existed since 1925 and is presently operated as a hotel with eighty-nine (89) rooms. It employs approximately one hundred ninety (190) full and part-time employees,of which approximately one hundred ten(110) are residents of the City of Salem. 2 AUG-20-99 14 : 35 FROM :ROCKETT MGMT ID:6176392290 PAGE 6!75 5. The Plaintiffs Donald J. Michaud and Mary G. Michaud reside at 12 Savoy Road in Salezat, Massachusetts and are Trustees of the Mi-Ske Realty and Investment Trust, a Massachusetts Realty Trust which was established under a Declaration of Trust dated April 6, 1992, and recorded in Essex South District Registry of Deeds, Book 11431, page 426. The trust owns the property at 222/224 Derby Street, Salem,Massachusetts, which abuts the property subject to the Decision. 6. The Defendants Walter B.Power, III of 18 Loring Avenue, Salem, Massachusetts, Charles M. Puleo of 5 Freeman Road, Salem, Massachusetts,John C. Moustakis of 25 Dearborn Street, Salem,Massachusetts, Gene Collins of 63 Appleton Street, Salem, Massachusetts,Kim Driscoll of 12 Charles Street, Salem, Massachusetts, L. Lee Harrington of 23 Beach Avenue, Salem,Massachusetts, Carter Vinson of 7 Chestnut Street, Salem,Massachusetts, David Weiner of 16 Bay View Circle, Salem, Massachusetts,and William R. Cullen of 41 Walter Street, Salem, Massachusetts are the Chairman and members of the Planning Board of the City of Salem existing pursuant to the provisions of G.L. c. 41 § 81A. 7. The Defendant City of Salem is a municipal corporation- s. The Defendant J. Hilary Rockett is the Trustee of the Pickering Wharf Realty Trust("Pickering Wharf.") The address of the Trust is 190 Pleasant Street, Marblehead,MA 01945. THE LAW GOVERNING THE PLANNING BOARD AND THE EVIDENCE BEFORE THE BOARD 9. The Defendant Planning Board is required by G.L. c. 41, § SID to establish a master plan and is authorized to "perfect such plan-" The master plan is required to be"a statement,through text, maps, illustrations or other forms of 3 AUG-20-99 14 36 FROM :ROCKETT MGMT ID:6176392290 PAGE 7.' 15 communication, that is designed to pro-zde a basis for decision making regarding the long-Term physical development of the municipality. The comprehensive plan shall be iotemally consistent in its policies, forecasts and standards, and shall include the following elements:... (1) Goals and policies statement which identifies the goals and policies of the municipality for its future growth and development. Each community shall conduct an interactive public process, to determine community values,goals and to identify patterns of development that will be consistent with these goals. (4) Economic development element which identifies policies and strategies for the expansion or stabilization of the local economic base and the promotion of employment opportunities." 10. The Salem Zoning Ordinance contains in its Section 7-18 entitled"Site Plan Review"the following: "The planning board shall review [an application]... and make certain that the development,if approved, takes place in a manner which shall in all aspects be an asset to the city..." 11. Oa September 4, 1997, the Planning Board adopted a"Master Plan Update" which included among its provisions the development of"Greater quantity and variety of lodging alternatives—encourage development of convention hotel, family and B&B lodging..." 4 AUG-20-99 19 : 36 FP0M :R0CKETT MGMT ID :6176392290 PAGE 8/ 15 12. On August 14, 1997, the City of Salem issued a request for proposal for a consultant to prepare a hotel feasibility study. The request specifically includes the following at p. I —"The result of the study shall include: a determination of the number of hotel rooms that can be absorbed into the Salem market" A copy of the request for proposal is attached hereto and marked "C." 13. On August 29, 1997,the City of Salem received a response to the request for proposal from Landauer Hospitality Group and a letter relating to the proposed engagement. (The response and letter are attached hereto and marked "D.") 14. On September 4, 1997 (the same day on which the Board adopted the Master Plan Update),the City of Salem executed an agreement with Landauer Hospitality Group for a hotel feasibility study based upon the request for proposal referred to as Fixhibit C. A copy of the Agreement is attached hereto as " 15. On December 31, 1997, the Landauer Hospitality Group issued its Report pursuant to the Agreement. A copy of this Report is attached as"IF." 16. W its Report to the Defendant City of Salem, the Landauer Hospitality Group concluded the following with respect to a new hotel: "Salem is a highly seasonal market. Although Salem's unique history and varied attractions draw an estimated 650,000 visitors Per the maof these visits occur between June and year, majority October." (Page 3, Landauer Report"F,"City of Salem, December, 1997.) s 4UG-20-95 19 : 36 FF.OM ;PDCKETT MGMT 10:6176392290 PAGE "Two p-oject facility scenarios were analyzed during the course of this assignment, a 120-room,mid market, full-service lodging facility and a 66-room limited-service lodging facility. Each scenario was analyzed in the context of site dynamics, project costing,site plan layout,and prospective market and financial performance. It was determined, that a 66-room limited service hotel stood the best chance of attracting private sector developer interest-1, "A small 66-roomlimited service hotel at Pickering Wharf appears Market Wpartable. Significant concessions will be required from the City of Salem and a potential developer in order to render the project financially feasible."(Page 8, Landauer Report"F", City of Salem„ December, 1997.) "The hotels Iocated in Salem will be particularly vulnerable to the hotel expansion currently taking place on the North Shore's highways. In most instances,these looatious offer higher visibility, greater accessibility and closer proximity to the major demand generators in the North Shore market. As a result, expansion of the hotel supply in the future will have a greater impact on hotels with secondary locations such as Salem." Page 55, Landauer Report "F,"City of Salem, December, 1997.) 'Based on the preceding analysis of the market area including the existing properties and planned additions to the hotel supply,Nve 6 ,AUG-20-99 14 : 37 FROVI:RDCKETT MGMT ID 6176392290 PAGE 10!15 recommend selection of the Pickering Wharf site for potential hotel development. This selection was based upon the superior attributes of the,site as outlined in the Site Analysis section of this report. Market, anticipatcd financial performance and site ' constraints size the property at 66 guest rooms. We do not believe that the development of abill-service property will yield any significant advantage cost of developing such a property. Our �f t research supports the development of a limited-service hotel with a P��pd national franchise affiliation."(Page 63,Landauer Report"F,"City ®� g of Salem, December, 1997.) P� "Despite its waterfront location and close proximity to Salem's many attractions including tourist destinations, restaurants and shopping,the prospective hotel will still have a locational disadvantage when compared to the competitive hotels located on the area's highways. With its modem accommodations and facilities,the prospective hotel will have a competitive advantage over the two Salem hotels, the Salem Inn and Hawthorne Hotel, in capturing tourism and locally generated corporate demand." (Page 64, Landauer Report "F," City of Salem,December, 1997). (Emphasis added) THE DECISION OF THE PLANNING BOARD IT On May 27, 1999,the Defendant Pickering Wharf filed a letter purporting to be an application with the Defendant Planrung Board for a"Site Plan Review and f ,AUG-20-99 14 : 37 FROM :ROCKETT MGMT 10 =6176392290 PAGE 17! 15 Wetlands and Flood Hazard District Special Permits" for"the construction of a five-story hotel/retail building and a new single-story bank building at 223-231 Derby Street and 23 Congress Street in the City of Salem...[and] a parking lot consisting of 83 vehicle spaces." (Decision"A", first paragraph). The letter purporting to be the application is attached hereto as "A-1." The City of Salem Form of Application for Site Plan Review Permit(not filed by Pickering Wharf) is attached hereto as "A-2." Nowhere in the letter of Pickering Trust nor in the Decision is there a statement of the number of rooms in the proposed hotel, although the form of application (not filed)calls for a statement of the number of units. 18. A public hearing was commenced by the Planning Board on June 17, 1999,and continued on July 1, 1999,and July 28, 1999, with respect to that application. 19. On July 1, 1999,a representative of the Trust sent to the Defendant Power a letter setting forth objections to the application. (A copy of that tetter is attached hereto and marked"B'). 20. On July 28, 1999,the Trust appeared through counsel before the Planning Board at its hearing and presented documents,testimony and argument in opposition to the application primarily on the grounds that the unrebutted evidence(including specifically a Report of a consultant authorized by the Defendant City of Salem its.If)before the Planning Board with respect to the ability of the City of Salem to support economically a hotel of the size proposed by the application demonstrated that the addition of such a hotel in the Salem market would be likely to cause serious dimunition of the value of the property of the Trust. Evidence presented 8 AUG-20-99 14 = 38 FROM :ROCKETT MCMT : D:6176392290 PACE 12! 15 by the Michaud's demonstrated that the size of the proposed hotel structure would diminish the economic value and important amenities of the Michaud property. 21. On July 28, 1999,the Trust presented to the Planning Board a copy of a report dated January 14, 1997,previously furnished to the Board, from Pinnacle Advisory Group, a hotel development consultant, entitled: "Market Demand �APF'� ( t Study for a Proposed Hotel to be Located in Salem,Massachusetts."(A copy of �` S that report is attached hereto and marked"G.") That report concluded that"Given the strength of the demand in the market,we believe that a 60-room hotel would be most appropriate.""(Page 16). 22_ On July 28, 1999,a principal of Pinnacle Advisory Group presented testimony to the Board reaffirming and updating the report of the Pinnacle Advisory Group and sated its conclusion that a limited service hotel in excess of approximately 60 rooms would be likely to fail and was likely to cause economic damage to the property of the Trust itself by virtue of the excess number of rooms in the Salem market over the demand therefor. 23. Notwithstanding the conclusions of the Landauer Report and the Pinnacle Advisory Group Report,the City has required the Pickering Wharf must to develop a hotel of"not less than 70 and not more than 140 rooms" as part of a Tax Increment Financing program with respect to which the City entered a Memorandum of Understanding on April 8, 1998. (A copy of that Memorandum of Understanding is attached hereto and marked "R.") 24. No evidence was presented to the Planning Board contradicting the Report of the City's own consultant In fact,other evidence presented to the Board confumed 9 AUG-20-99 14 : 36 FROM:ROCKETT MGMT ID-6176392290 PAGE 13/15 the conclusions of the Report of the City's consultant as to the adverse effect of the proposed hotel on the property of the Trust and its lack of economic feasibility. 25. Notwithstanding the undisputed evidence before the Planning Board, the Board T rendered the Decision which in no way reflects any analysis of,or even �F l Cr consideration of, or any determination with respect to, the economic effects of ther me � proposed hotel on the property of any abutters or any person very near they property. 26_ In the light of the evidence before the Planning Board, including specifically the conclusions of the Report of the consultant authorized by the City of Salem itself, the action of the Planning Board in issuing the Decision without analysis or consideration of any evidence of diminished value of property or adverse effects on property rights,and contrary to all of the evidence before the Board,was in excess of the authority of the Board and was legally untenable, unreasonable, capricious and arbitrary and should be annulled. COUNT TWO: DUE PROCESS 27. The Plaintiffs incorporate herein by reference paragraphs I through 26. 28. The failure of the Planning Board to give any analysis of land use planning considerations,including economic factors relating to the nature of adjoining uses, as detailed in the Report authorized by the City of Salem, in its special permit Decision constituted a denial of due process to the Plaintiffs in violation of knicle XII of the Declaration of Rights of the Constitution of The 10 AUG-20-99 39 : 39 FRDM -ROCKETT MGMT !D:6176392290 PAGE 19/ I5 Commonwealth of Massachusetts and the Fifth and Fourteenth Amendments to the United States Constitution. WfEREFOR.E, the Plaintiffs pray that: I. The Court hear all the evidence pursuant to G.L. c. 40A, § 17 pertinent to the authority of the Planning Board of the City of Salem to issue the Decision dated July 29, 1999. 2. The Court determine the facts and,upon the facts as so determined,annul the decision of the Planning Board of the City of Salem dated July 29, 1999,was in excess of the authority of the said Board and legally untenable, unreasonable, capricious and arbitrary. 3. The Court pursuant to G.L. c. 231 A make a binding declaration that the Planning Board of the City of Salem must consider the effect of the granting of a special permit for the construction of a new hotel upon the value of the property and property rights of an abutter or person whose property is very near. 4. The Court snake such other decree as justice and equity may require,including, but not limited to,remanding this matter to the Planning Board with instructions to hear further evidence of the diminished value of the property of the Plaintiffs and the adverse effects on the Plaintiffs' property rights caused by the proposed hotel facility and to make specific findings upon such evidence before rendering any new decision upon the application. 11 L AUG-20-99 14 . 39 FRDM :ROCKETT MGMT ID :6176392292) PAGE 15! 15 DOROTHY L. HARRINGTON, AS SHE IS TRUSTEE OF THE THREE CORNERS REALTY TRUST AND DONALD J.MTCHA.UD AND MARY G. MICHAUD,AS THEY ARE TRUSTEES OF THE MI-SKE REALTY AND INVESTMENT TRUST eir Attorney, r Morns M. Goldings BBO# 198800 MAHONEY, HAWKES &GOI.DTNGS, LLP The Heritage on the Garden 75 Park Plaza Boston, Massachusetts 02116 Tel: 617-457-3100 Date: August 17, 1999 047,262 12 COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, ss . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs Vs . ANSWER OF DEFENDANTS, CITY OF SALEM AND CITY WALTER B. POWERS, III, CHARLES OF SALEM PLANNING BOARD M. PULEO, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants COUNT I : JUDICIAL REVIEW UNDER G.L. CH. 40A, SEC. 17 1. The first sentence in paragraph 1 of the complaint is admitted; the second sentence is denied. 2 . The allegations in paragraph 2 of the complaint are admitted, except for so much thereof as alleges that " (a) copy of the Decision is attached hereto and marked `A,'" which is denied. 3 . The allegations in paragraph 3 of the complaint that state, " (t) he complaint also seeks a declaration of rights under G. L. c. 231A with respect to the actions of the Planning Board and the City of Salem" are admitted; any and all remaining allegations in 1 paragraph 3 are denied. 4 . The defendants are without sufficient knowledge to admit or deny the allegations in paragraph 4 of the complaint and call upon the plaintiffs to prove the same. 5 . The defendants are without sufficient knowledge to admit or deny the allegations in paragraph 5 of the complaint and call upon the plaintiffs to prove the same. 6. Admitted. 7 . Admitted. 8. Admitted. 9 . The defendants neither admit, nor deny, the allegations in paragraph 9 of the complaint, but state that the statute referenced therein speaks for itself; moreover, the defendants say that the excerpted portions of the statute may not properly be read and interpreted in isolation from other, pertinent portions of the statute and/or from the provisions of other relevant statutes and laws . 10 . The defendants neither admit, nor deny, the allegations in paragraph 10 of the complaint, but state that the ordinance referenced therein speaks for itself; moreover, the defendants say that the excerpted portions of the ordinance may not properly be read and interpreted in isolation from other, pertinent portions of the ordinance and/or from the provisions of other relevant ordinances, statutes and laws . 11 . Admitted, that, " (o) n September 4, 1997 , the Planning Board adopted a "Master Plan Update . . ." ; as for the remaining allegations in paragraph 11 of the complaint, the defendants neither admit, nor deny, the same, but instead say that that the 2 excerpted portion of the Master Plan Update may not properly be read and interpreted in isolation from other, pertinent portions of the Plan and/or from the provisions of other relevant ordinances, statutes and laws . 12 . Admitted, that, " (o) n August 14 , 1997 , the City of Salem issued a request for a proposal for a consultant to prepare a hotel feasibility study," and that the passage therefrom quoted in paragraph 12 of the complaint does appear in the request for feasibility study; any and all remaining allegations in paragraph are denied; and further answering, the defendants say that that the quoted excerpt from the request may not properly be read and interpreted in isolation from other, pertinent portions of the request and/or from the provisions of other relevant ordinances, statutes and laws . 13 . The first sentence in paragraph 13 of the complaint is admitted; the balance of that paragraph is denied. 14 . The first sentence in paragraph 14 of the complaint is admitted; the balance of that paragraph is denied. 15 . The first sentence in paragraph 15 of the complaint is admitted; the balance of that paragraph is denied. 16. Admitted, that the passages quoted from the Landauer Report in paragraph 16 of the complaint do appear in that report; however, the defendants say that that the quoted excerpts from the Report may not properly be read and interpreted in isolation from other, pertinent portions of the Report and/or from the provisions of other relevant ordinances, statutes and laws . 17 . Admitted, that, " (o) n May 27 , 1999, the Defendant Pickering Wharf filed a letter purporting to be an application with the Defendant Planning Board for a `Site Plan Review and Wetlands and 3 Flood Hazard District Special Permit, '" and that the excerpt therefrom quoted in paragraph 17 of the complaint does appear in the application; the balance of paragraph 17 is denied; and further answering, the defendants say that the quoted excerpts from the application may not properly be read and interpreted in isolation from other, pertinent portions of the application and/or from the provisions of other relevant documents, ordinances, statutes and laws. 18. Admitted. 19 . The first sentence in paragraph 19 of the complaint is admitted; the balance of paragraph 19 is denied; and any express or implied allegation that the "objections" contained in the referenced letter were valid is also denied. 20 . Admitted, that, " (o) n July 28, 1999, the Trust appeared through counsel before the Planning Board at its hearing and presented documents, testimony and argument in opposition to the application," and that counsel for the Trust made the arguments set out in the balance of paragraph 20 of the complaint; any x r e p ess or implied allegation that counsel' s arguments were valid and supported by the evidence before the Board is denied. 21 . Admitted, that, " (o) n July 28, 1999, the Trust presented to the Planning Board a copy of a report dated January 14, 1997 , previously furnished to the Board, from Pinnacle Advisory Group . . . entitled: `Market Demand Study for a Proposed Hotel to be Located in Salem, Massachusetts,'" and that the language quoted from the report in paragraph 21 of the complaint does appear in the report; any and all remaining allegations in paragraph 21 are denied; and further answering, the defendants say that the quoted excerpts from the report may not properly be read and interpreted in isolation from other, pertinent portions of the report and/or 4 from the provisions of other relevant documents , ordinances, statutes and laws . 22 . Admitted, that, 'i (o) n July 28, 1999, a principal of Pinnacle Advisory Group presented testimony to the Board" ; the balance of the allegations in paragraph 22 of the complaint are conclusory, seek to characterize the testimony, and are denied; and any express or implied allegation that the testimony was valid and supported by the evidence before the Board is also denied. 23 . Admitted, that, ` the City has required the Pickering Wharf Trust to develop a hotel of `not less than 70 and not more than 190 rooms' as part of a Tax Increment Financing program with respect to which the City entered a Memorandum of Understanding on April 8, 1998" ; any and all remaining allegations in paragraph 23 of the complaint are denied. 24 . Denied. 25. Denied. 26. Denied. COUNT TWO: DUE PROCESS 27 . Defendants incorporate by reference and here re-allege their respective responses to paragraphs 1-26, supra. 28 . Denied. 29 AFFIRMATIVE DEFENSES Further answering the complaint, the defendants say as follows : 5 1 . The defendants say that the decisions complained of were made lawfully, properly and wholly within the scope of their administrative discretion. 2 . The defendants plead failure to exhaust administrative remedies . 3. The defendants plead insufficiency of process. 4. The defendants plead insufficiency of service of process. 5 . The defendants specifically deny the genuineness of any purported signatures upon documents which the plaintiffs rely on in this case. 6. The defendants plead laches. 7 . The defendants state that the present action against them is time-barred by operation of the applicable statute ( s ) of limitations. 8. The defendants plead lack of subject matter jurisdiction. 9. The defendants plead lack of personal jurisdiction. 10 . The defendants plead improper venue. 11 . The defendants say that the plaintiffs lack standing to bring the present complaint and/or the various counts thereof, for the reason - among others - that they do not qualify as "aggrieved persons" under the applicable laws . 12 . The defendants plead unclean hands on the part of the plaintiffs . 13 . The defendants plead estoppel on the part of the plaintiffs . 6 14 . The defendants state that the plaintiffs have failed to f satisfy the procedural prerequisites to bringing this action. 15 . The defendants say that for all of the reasons aforementioned, the complaint fails to state a claim upon which relief may be granted. WHEREFORE, the defendants demand the dismissal of the complaint, with costs taxed to the plaintiffs. THE CITY OF SALEM, et al, By Their City Solicitor, Wil am J. Lundreq'X, Esq. 81 ashington Sheet Suite 37 Salem, MA 01970 Tel: 978 . 741 . 3888 Certificate of Service I, William J. Lundregan, hereby certify that on 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Geldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. Willi J. undrega Esq. 7 COMMONWEALTH OF MASSACHUSETTS 00 THE LAND COURT ESSEX, ss . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS. WALTER B. POWERS, III, CHARLES M. PULED, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants INTERROGATORIES PROPOUNDED BY DEFENDANT, CITY OF SALEM, TO THE PLAINTIFF, DOROTHY L. HARRINGTON, TRUSTEE Pursuant to Mass . R. Civ . P . 33, the plaintiff, Dorothy L. Harrington, Trustee, is hereby required to answer each and every one of the following interrogatories within the time provided by said rule . NOTE: Notwithstanding their use of "all," "any and all" and/or other, all-inclusive designations, the following interrogatories shall be deemed to exclude from their scope materials privileged by the attorney-client privilege, the attorney work-product privilege, and the privilege afforded to materials compiled by or at the behest of Counsel in 1 t ' anticipation of litigation. 1 . Please state your name, address, occupation, and business address (es) . 2 . Please state the name, address, occupation, and business address of each and every person consulted in order to obtain information used in answering these interrogatories, excepting herefrom only the defendant' s attorney. 3 . Please state the name, address, occupation, and business address of each and every person known to, or believed by, you to have knowledge regarding the facts of this case, excepting herefrom only your attorney. 4 . Please state the date on which you acquired the property at 18 Washington Square West, Salem, Massachusetts, known as the Hawthorne Hotel. 5 . Please state how the property at 18 Washington Square West, Salem, Massachusetts was zoned (i . e . in what type of zoning district it was located) on the date that you acquired it. 6 . Please state how the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts was zoned (i . e. in what type of zoning district it was located) on the date that you acquired your property at 18 Washington Square West, Salem, Massachusetts. 7 . Please describe how the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts appeared on the date that you purchased acquired the property at at 18 Washington Square West, Salem, Massachusetts . Include in your answer hereto, but without limitation, the location, size and complete descriptions of any and all buildings that were upon the property, the uses to which such buildings were put, the location size and complete 9 P � , P 2 descriptions of any and all driveways, parking lots and other paved areas on the property, the uses to which such paved areas were put, the location, size and complete description of any and all greenery and/or other plantings upon the property. 8 . Please describe, in full and complete detail, what uses have been made of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts, from the date that you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof. 9 . Please describe, in full and complete detail, what uses have been made of the property at 18 Washington Square West, Salem, Massachusetts, from the date that you acquired it to date hereof. 10 . If, from the date on which you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof, there have been any changes in the zoning of your said property, please describe any and all such changes in full and complete detail, providing the date and the substance of each and every such change. 11 . If, from the date on which you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof, there have been any changes in the zoning of the property at 223- 231 Derby Street and 23 Congress Street, Salem, Massachusetts, please describe any and all such changes in full and complete detail, providing the date and the substance of each and every such change. 12 . If you or your predecessors in title have ever sought a variance or a special permit for your property at 18 Washington Square West, Salem, Massachusetts, then with respect to each and every such instance, please provide the following information: the 3 date of the application, the nature of the variance or special permit sought, the reason why you or they sought the variance or special permit, whether or not the application was granted, and, if it was granted, exactly what use (s) were made of the variance or permit. 13 . If, to your knowledge, from the date on which you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof, the owners of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts ever sought a variance or a special permit for that property, please provide the following information: the date of the application, the nature of the variance or special permit sought, the reason given for the variance or special permit, whether or not the application was granted, and, if it was granted, exactly what use (s) were made of the variance or permit . 14 . If, from the date on which you acquired your property at 18 Washington Square West, Salem, Massachusetts, to date hereof, you have ever made any improvements to the said property, please describe any and all such improvements in full and complete detail. 15 . Please state: (a) the date and manner in which you acquired the property at 18 Washington Square West, Salem, Massachusetts, (b) the price you paid to acquire the property, (c) the current assessed value of that property, and (d) the current market value of that property (to the best of your knowledge and belief) . 16 . What is the distance between the portion of your property at 18 Washington Square West, Salem, Massachusetts, that is nearest to portion of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts? 4 17 . Please state, in full and complete detail, all of the factual reasons for your opposition to the July 29, 1999 decision of the City of Salem Planning Board which granted a special permit to the Pickering Wharf Realty Trust . Include in your answer hereto any and all specific harms to yourself or your property at 18 Washington Square West, Salem, Massachusetts, that you anticipate from the issuance of the special permit; and with respect to each and every such anticipated harm, please set forth the specific, factual basis for your belief that such harm to yourself or your property is likely to follow from the allowance of the special permit . 18 . If you intend to call any expert witnesses to testify to the matters described and discussed in interrogatory no. 17 and your answer thereto, then please identify by name, address and area of expertise each and every such expert witness, and with respect to each and every such expert witness, please provide the following information: (a) the subject matter on which the expert is expected to testify, (b) the substance of the facts and opinions to which the expert is expected to testify, and (c) a summary of the grounds for each opinion. 19. If you intend to call any non-expert witnesses to testify to the matters described and discussed in interrogatory no. 23 and your answer thereto, then please identify by name, address, occupation and business address, each and every such witness. 20 . Please identify, by name, address, occupation and business address, each and every witness whom you intend to call to testify at the trial of this matter. 5 M THE CITY OF SALEM, et al, By Their City Solicitor, r' Wi iam J. Lundy an, Esq. 81 Washington reet Suite 37 Salem, MA 01970 Tel : 978 . 741 . 3888 Certificate of Service ppq I, William J. Lundregan, hereby certify that on 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. illia J. undregaXEsq. 6 t COMMONWEALTH OF MASSACHUSETTS 00000, THE LAND COURT ESSEX, ss . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS. WALTER B. POWERS, III, CHARLES M. PULED, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants REQUEST FOR PRODUCTION OF DOCUMENTS PROPOUNDED BY DEFENDANT, CITY OF SALEM, TO THE PLAINTIFF, DOROTHY L. HARRINGTON, TRUSTEE Pursuant to Mass . R. Civ. P. 34 , the plaintiff, Dorothy L. Harrington, Trustee, is hereby required to produce copies of the documents described hereinbelow at the offices of the defendant' s attorney within the time provided by rule . NOTE: Notwithstanding their use of " all," " any and all" and/or other, all- inclusive designations, the following Interrogatories shall be deemed to exclude from their scope materials privileged by the attorney-client privilege, the attorney work-product privilege, and the privilege afforded to materials compiled by or at 1 the behest of Counsel in anticipation of litigation. 6 Any and all acceptances, accounts, advertisements, agreements, amendments, applications, approvals, balance sheets, blueprints, books , brochures, building permits, canceled checks, chalks , charts, circulars, citations, codicils, complaints, contracts, correspondence, deeds , diagrams, drawings, flyers, graphics, income statements, invitations, invoices, leaflets, ledgers, literature, memoranda , notes , orders, outlines, permits , petitions , photographs, plans , proposals , purchase orders, recordings (audio and/or video) , records, repair orders, reports, responses, solicitations , special permits , specifications , statistical compilations, studies, submissions, variances, work orders, and/or other documents or other tangible items, of any kind and nature whatsoever, by whomever authored, for whatever purpose ( s ) , to whomever addressed, and by whomever received, excepting herefrom only matter privileged by the aforementioned privileges, that are within the possession, custody or control of the plaintiff, its agents, employees or servants, or to which plaintiff has a right of access and may obtain by making a reasonable effort, that allude to, attest to, describe, document, illustrate, and/or otherwise evidence, in any manner whatsoever, any or all of the following matters : 1 . The information or subject matter designated and described in defendant' s interrogatory no. 2 and/or in the plaintiffs' answer thereto. 2 . The information or subject matter designated and described in defendant' s interrogatory no. 3 and/or in the plaintiffs' answer thereto. 3 . The information or subject matter designated and described in defendant' s interrogatory no. 4 and/or in the plaintiffs' answer 2 I� thereto. 4 . The information or subject matter designated and described in defendant' s interrogatory no. 5 and/or in the plaintiffs' answer thereto. 5 . The information or subject matter designated and described in defendant' s interrogatory no. 6 and/or in the plaintiffs' answer thereto. 6 . The information or subject matter designated and described in defendant' s interrogatory no. 7 and/or in the plaintiffs' answer thereto. 7 . The information or subject matter designated and described in defendant' s interrogatory no. 8 and/or in the plaintiffs' answer thereto. 8 . The information or subject matter designated and described in defendant' s interrogatory no. 9 and/or in the plaintiffs' answer thereto. 9 . The information or subject matter designated and described in defendant' s interrogatory no. 10 and/or in the plaintiffs' answer thereto. 10 . The information or subject matter designated and described in defendant' s interrogatory no. 11 and/or in the plaintiffs' answer thereto. 11 . The information or subject matter designated and described in defendant' s interrogatory no. 12 and/or in the plaintiffs' answer thereto. 3 12 . The information or subject matter designated and described in defendant' s interrogatory no . 13 and/or in the plaintiffs' answer thereto. 13 . The information or subject matter designated and described in defendant' s interrogatory no. 14 and/or in the plaintiffs' answer thereto. 14 . The information or subject matter designated and described in defendant' s interrogatory no. 15 and/or in the plaintiffs' answer thereto. 15 . The information or subject matter designated and described in defendant' s interrogatory no. 16 and/or in the plaintiffs' answer thereto. 16. The information or subject matter designated and described in defendant' s interrogatory no. 17 and/or in the plaintiffs' answer thereto. 17 . The information or subject matter designated and described in defendant' s interrogatory no. 18 and/or in the plaintiffs' answer thereto. 18 . The information or subject matter designated and described in defendant' s interrogatory no. 19 and/or in the plaintiffs' answer thereto. 19 . The information or subject matter designated and described in defendant' s interrogatory no. 20 and/or in the plaintiffs' answer thereto. 20 . To whatever extent not previously provided in response to any of the foregoing document requests, or otherwise, the following documents and things : any and all documents and things, of any 4 I ' . Y nature and description whatsoever, which the plaintiff intends to offer into evidence at the trial of this matter. In the event that the plaintiff does not have any of the foregoing documents or has not been able to obtain them in a timely fashion, s/he shall state in writing, under the penalties of perjury, the specific documents which are not available, the reasons the documents are not available, and what efforts have been made to obtain the documents . As more information becomes available there is a continuing duty to supplement . THE CITY OF SALEM, et al, By Their City So icitor, v- am J. Lundre n, Esq. W i9f 81 Washington eet Suite 37 Salem, MA 01970 Tel: 978 . 741 . 3888 Certificate of Service I, William J. Lundregan, hereby certify that on 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. Willi J. Lundregan, q- 5 ..-.r COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, ss. Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS. WALTER B. POWERS, III, CHARLES M. PULEO, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants INTERROGATORIES PROPOUNDED BY DEFENDANT, CITY OF SALEM, TO THE PLAINTIFF, DONALD J. MICHAUD, TRUSTEE Pursuant to Mass . R. Civ. P. 33, the plaintiff, Donald J. Michaud, Trustee, is hereby required to answer each and every one of the following interrogatories within the time provided by said rule. NOTE : Notwithstanding their use of " all," "any and all" and/or other, all-inclusive designations, the following interrogatories shall be deemed to exclude from their scope materials privileged by the attorney-client privilege, the attorney work-product privilege, and the privilege afforded to materials compiled by or at the behest of Counsel in anticipation of litigation. 1 a 1 . Please state your name, address, occupation, and business address (es) . 2 . Please state the name, address, occupation, and business address of each and every person consulted in order to obtain information used in answering these interrogatories, excepting herefrom only the defendant' s attorney. 3. Please state the name, address, occupation, and business address of each and every person known to, or believed by, you to have knowledge regarding the facts of this case, excepting herefrom only your attorney. 4 . Please state the date on which you acquired the property at 222-224 Derby Street, Salem, Massachusetts . 5 . Please state how the property at 222-224 Derby Street, Salem, Massachusetts was zoned (i . e. in what type of zoning district it was located) on the date that you acquired it. 6 . Please state how the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts was zoned (i . e. in what type of zoning district it was located) on the date that you acquired your property at 222-224 Derby Street, Salem, Massachusetts. 7 . Please describe how the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts appeared on the date that you purchased acquired the property at at 222-224 Derby Street, Salem, Massachusetts . Include in your answer hereto, but without limitation, the location, size and complete descriptions of any and all buildings that were upon the property, the uses to which such buildings were put , the location, size and complete descriptions of any and all driveways, parking lots and other paved areas on the property, the uses to which such paved areas were put, the location, size and complete description of any and 2 all greenery and/or other plantings upon the property. 8 . Please describe, in full and complete detail, what uses have been made of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts, from the date that you acquired your property at 222-224 Derby Street, Salem, Massachusetts, to date hereof. 9 . Please describe, in full and complete detail, what uses have been made of the property at 222-224 Derby Street, Salem, Massachusetts, from the date that you acquired it to date hereof. 10 . If, from the date on which you acquired your property at 222- 224 Derby Street, Salem, Massachusetts, to date hereof, there have been any changes in the zoning of your said property, please describe any and all such changes in full and complete detail, providing the date and the substance of each and every such change. 11 . If, from the date on which you acquired your property at 222- 224 Derby Street, Salem, Massachusetts, to date hereof, there have been any changes in the zoning of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts, please describe any and all such changes in full and complete detail, providing the date and the substance of each and every such change. 12 . If you or your predecessors in title have ever sought a variance or a special permit for your property at 222-224 Derby Street, Salem, Massachusetts, then with respect to each and every such instance, please provide the following information : the date of the application, the nature of the variance or special permit sought, the reason why you or they sought the variance or special permit, whether or not the application was granted, and, if it was 3 granted, exactly what use (s) were made of the variance or permit . 13 . If, to your knowledge, from the date on which you acquired your property at 222-224 Derby Street, Salem, Massachusetts, to date hereof, the owners of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts ever sought a variance or a special permit for that property, please provide the following information: the date of the application, the nature of the variance or special permit sought, the reason given for the variance or special permit, whether or not the application was granted, and, if it was granted, exactly what use (s) were made of the variance or permit . 14 . If, from the date on which you acquired your property at 222- 224 Derby Street, Salem, Massachusetts, to date hereof, you have ever made any improvements to the said property, please describe any and all such improvements in full and complete detail. 15 . Please state: (a) the date and manner in which you acquired the property at 222-224 Derby Street, Salem, Massachusetts, (b) the price you paid to acquire the property, (c) the current assessed value of that property, and (d) the current market value of that property (to the best of your knowledge and belief) . 16 . What is the distance between the portion of your property at 222-224 Derby Street, Salem, Massachusetts, that is nearest to portion of the property at 223-231 Derby Street and 23 Congress Street, Salem, Massachusetts? 17 . Please state, in full and complete detail, all of the factual reasons for your opposition to the July 29, 1999 decision of the City of Salem Planning Board which granted a special permit to the Pickering Wharf Realty Trust . Include in your answer hereto any and all specific harms to yourself or your property at 222-224 4 Derby Street, Salem, Massachusetts, that you anticipate from the issuance of the special permit; and with respect to each and every such anticipated harm, please set forth the specific, factual basis for your belief that such harm to yourself or your property is likely to follow from the allowance of the special permit . 18 . If you intend to call any expert witnesses to testify to the matters described and discussed in interrogatory no . 17 and your answer thereto, then please identify by name, address and area of expertise each and every such expert witness, and with respect to each and every such expert witness, please provide the following information : (a) the subject matter on which the expert is expected to testify, (b) the substance of the facts and opinions to which the expert is expected to testify, and (c) a summary of the grounds for each opinion. 19. If you intend to call any non-expert witnesses to testify to the matters described and discussed in interrogatory no. 23 and your answer thereto, then please identify by name, address, occupation and business address, each and every such witness. 20 . Please identify, by name, address, occupation and business address, each and every witness whom you intend to call to testify at the trial of this matter. THE CITY OF SALEM, et al, By Their City Solicitor, Wil amJ. Lundre Esq. 81 Washington S eet Suite 37 Salem, MA 01970 Tel : 978 . 741 . 3888 5 Certificate of Service I, William J. Lundregan, hereby certify that on / 1999 I mailed, postage pre-paid, a copy of the foreg ing document to: Morris M. Geldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under pena ty of perjury. Wi 1 ' m Lundr an, Esq. 6 I � A COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, ss . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs VS. WALTER B. POWERS, III, CHARLES M. PULED, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants REQUEST FOR PRODUCTION OF DOCUMENTS PROPOUNDED BY DEFENDANT, CITY OF SALEM, TO THE PLAINTIFF, DONALD J. MICHAUD, TRUSTEE Pursuant to Mass. R. Civ. P. 34, the plaintiff, Donald J. Michaud, Trustee, is hereby required to produce copies of the documents described hereinbelow at the offices of the defendant' s attorney within the time provided by rule . NOTE: Notwithstanding their use of "all," "any and all" and/or other, all-inclusive designations, the following Interrogatories shall be deemed to exclude from their scope materials privileged by the attorney- client privilege, the attorney work-product privilege, and the privilege afforded to materials compiled by or at the behest of Counsel in anticipation of litigation. 1 Any and all acceptances, accounts, advertisements, agreements, amendments, applications, approvals, balance sheets, blueprints, books, brochures, building permits, canceled checks, chalks , charts, circulars, citations, codicils, complaints, contracts, correspondence, deeds, diagrams, drawings, flyers , graphics, income statements , invitations, invoices, leaflets , ledgers, literature, memoranda, notes, orders , outlines , permits , petitions, photographs, plans, proposals , purchase orders, recordings (audio and/or video) , records, repair orders, reports, responses, solicitations, special permits, specifications , statistical compilations, studies, submissions, variances, work orders, and/or other documents or other tangible items, of any kind and nature whatsoever, by whomever authored, for whatever purpose ( s) , to whomever addressed, and by whomever received, excepting herefrom only matter privileged by the aforementioned privileges, that are within the possession, custody or control of the plaintiff, its agents, employees or servants, or to which plaintiff has a right of access and may obtain by making a reasonable effort, that allude to, attest to, describe, document, illustrate, and/or otherwise evidence, in any manner whatsoever, any or all of the following matters: 1 . The information or subject matter designated and described in defendant' s interrogatory no. 2 and/or in the plaintiffs' answer thereto. 2 . The information or subject matter designated and described in defendant',s interrogatory no. 3 and/or in the plaintiffs' answer thereto. 3 . The information or subject matter designated and described in defendant' s interrogatory no. 4 and/or in the plaintiffs' answer thereto. 2 4 . The information or subject matter designated and described in defendant' s interrogatory no . 5 and/or in the plaintiffs' answer thereto. 5 . The information or subject matter designated and described in defendant' s interrogatory no . 6 and/or in the plaintiffs' answer thereto. 6 . The information or subject matter designated and described in defendant' s interrogatory no. 7 and/or in the plaintiffs' answer thereto. 7 . The information or subject matter designated and described in defendant' s interrogatory no. 8 and/or in the plaintiffs' answer thereto. B . The information or subject matter designated and described in defendant' s interrogatory no. 9 and/or in the plaintiffs' answer thereto. 9 . The information or subject matter designated and described in defendant' s interrogatory no. 10 and/or in the plaintiffs' answer thereto. 10 . The information or subject matter designated and described in defendant' s interrogatory no. 11 and/or in the plaintiffs' answer thereto. 11 . The information or subject matter d 7 esignated and described in defendant' s interrogatory no. 12 and/or in the plaintiffs' answer thereto. 12 . The information or subject matter designated and described in defendant' s interrogatory no . 13 and/or in the plaintiffs' answer thereto. 3 .b 13 . The information or subject matter designated and described in defendant' s interrogatory no. 14 and/or in the plaintiffs' answer thereto. 14 . The information or subject matter designated and described in defendant' s interrogatory no. 15 and/or in the plaintiffs' answer thereto. l 15 . The information or subject matter designated and described in defendant' s interrogatory no. 16 and/or in the plaintiffs' answer thereto. 16 . The information or subject matter designated and described in defendant' s interrogatory no. 17 and/or in the plaintiffs' answer thereto. 17 . The information or subject matter designated and described in defendant' s interrogatory no. 18 and/or in the plaintiffs' answer thereto. 18 . The information or subject matter designated and described in defendant' s interrogatory no. 19 and/or in the plaintiffs' answer thereto. 19. The information or subject matter designated and described in defendant' s interrogatory no. 20 and/or in the plaintiffs' answer thereto. 20 . To whatever extent not previously provided in response to any of the foregoing document requests, or otherwise, the following documents and things : any and all documents and things, of any nature and description whatsoever, which the plaintiff intends to offer into evidence at the trial of this matter. In the event that the plaintiff does not have any of the foregoing documents or has not been able to obtain them in a timely fashion, s/he shall state 4 in writing, under the penalties of perjury, the specific documents which are not available, the reasons the documents are not available, and what efforts have been made to obtain the documents . As more information becomes available there is a continuing duty to supplement. THE CITY OF SALEM, et al, By Their City Solicitor, Wil am J. Lundre Esq. 81 Washington St eet Suite 37 Salem, MA 01970 Tel : 978 . 741 . 3888 Certificate of Service I, William J. Lundregan, hereby certify that on / 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Geldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. Wil `am Lundre , Esq. 5 COMMONWEALTH OF MASSACHUSETTS THE LAND COURT ESSEX, as . Docket No. 99-258338 DOROTHY L. HARRINGTON, Trustee of the Three Corners Realty Trust, and DONALD J. MICHAUD and MARY G. MICHAUD, Trustees of the Mi-Ske Realty and Investment Trust, Plaintiffs Vs . ANSWER OF DEFENDANTS, CITY OF SALEM AND CITY WALTER B. POWERS, III, CHARLES OF SALEM PLANNING BOARD M. PULED, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER and WILLIAM R. CULLEN, Members of the Planning Board of the City of Salem, THE CITY OF SALEM, and J. HILARY ROCKETT, Trustee of the Pickering Wharf Realty Trust, Defendants COUNT I : JUDICIAL REVIEW UNDER G.L. CH. 40A, SEC. 17 1. The first sentence in paragraph 1 of the complaint is admitted; the second sentence is denied. 2 . The allegations in paragraph 2 of the complaint are admitted, except for so much thereof as alleges that " (a) copy of the Decision is attached hereto and marked `A,"' which is denied. 3 . The allegations in paragraph 3 of the complaint that state, " (t) he complaint also seeks a declaration of rights under G. L. c. 231A with respect to the actions of the Planning Board and the City of Salem" are admitted; any and all remaining allegations in 1 paragraph 3 are denied. 4 . The defendants are without sufficient knowledge to admit or deny the allegations in paragraph 4 of the complaint and call upon the plaintiffs to prove the same. 5 . The defendants are without sufficient knowledge to admit or deny the allegations in paragraph 5 of the complaint and call upon the plaintiffs to prove the same. 6. Admitted. 7 . Admitted. 8 . Admitted. 9 . The defendants neither admit, nor deny, the allegations in paragraph 9 of the complaint, but state that the statute referenced therein speaks for itself; moreover, the defendants say that the excerpted portions of the statute may not properly be read and interpreted in isolation from other, pertinent portions of the statute and/or from the provisions of other relevant statutes and laws. 10 . The defendants neither admit, nor deny, the allegations in paragraph 10 of the complaint, but state that the ordinance referenced therein speaks for itself; moreover, the defendants say that the excerpted portions p p of the ordinance may not properly be read and interpreted in isolation from other, pertinent portions of the ordinance and/or from the provisions of other relevant ordinances, statutes and laws . 11 . Admitted, that, (o) n September 9 , 1997, the Planning Board adopted a "Master Plan Update . . . as for p p o the remaining allegations in paragraph 11 of the complaint, the defendants neither admit, nor deny, the same, but instead say that that the 2 excerpted portion of the Master Plan Update may not properly be read and interpreted in isolation from other, pertinent portions of the Plan and/or from the provisions of other relevant ordinances, statutes and laws . 12 . Admitted, that, " (o) n August 14 , 1997 , the City of Salem issued a request for a proposal for a consultant to prepare a hotel feasibility study," and that the passage therefrom quoted in paragraph 12 of the complaint does appear in the request for feasibility study; any and all remaining allegations in paragraph are denied; and further answering, the defendants say that that the quoted excerpt from the request may not properly be read and interpreted in isolation from other, pertinent portions of the request and/or from the provisions of other relevant ordinances, statutes and laws. 13 . The first sentence in paragraph 13 of the complaint is admitted; the balance of that paragraph is denied. 14 . The first sentence in paragraph 14 of the complaint is admitted; the balance of that paragraph is denied. 15 . The first sentence in paragraph 15 of the complaint is admitted; the balance of that paragraph is denied. 16. Admitted, that the passages quoted from the Landauer Report in paragraph 16 of the complaint do appear in that report; however, the defendants say that that the quoted excerpts from the Report may not properly be read and interpreted in isolation from other, pertinent portions of the Report and/or from the provisions of other relevant ordinances, statutes and laws . 17 . Admitted, that, " (o) n May 27 , 1999, the Defendant Pickering Wharf filed a letter purporting to be an application with the Defendant Planning Board for a `Site Plan Review and Wetlands and 3 Flood Hazard District Special Permit,'" and that the excerpt therefrom quoted in paragraph 17 of the complaint does appear in the application; the balance of paragraph 17 is denied; and further answering, the defendants say that the quoted excerpts from the application may not properly be read and interpreted in isolation from other, pertinent portions of the application and/or from the provisions of other relevant documents, ordinances, statutes and laws . 18 . Admitted. 19 . The first sentence in paragraph 19 of the complaint is admitted; the balance of paragraph 19 is denied; and any express or implied allegation that the "objections" contained in the referenced letter were valid is also denied. 20 . Admitted, that, " (o) n July 28, 1999, the Trust appeared through counsel before the Planning Board at its hearing and presented documents, testimony and argument in opposition to the application," and that counsel for the Trust made the arguments set out in the balance of paragraph 20 of the complaint; any express or implied allegation that counsel' s arguments were valid and supported by the evidence before the Board is denied. 21 . Admitted, that, " (o) n July 28, 1999, the Trust presented to the Planning Board a copy of a report dated January 14 , 1997 , previously furnished to the Board, from Pinnacle Advisory Group . . . entitled: `Market Demand Study for a Proposed Hotel to be Located in Salem, Massachusetts,'" and that the language quoted from the report in paragraph 21 of the complaint does appear in the report; any and all remaining allegations in paragraph 21 are denied; and further answering, the defendants say that the quoted excerpts from the report may not properly be read and interpreted in isolation from other, pertinent portions of the report and/or 4 r from the provisions of other relevant documents, ordinances, statutes and laws . 22 . Admitted, that, " (o) n July 28, 1999, a principal of Pinnacle Advisory Group presented testimony to the Board" ; the balance of the allegations in paragraph 22 of the complaint are conclusory, seek to characterize the testimony, and are denied; and any express or implied allegation that the testimony was valid and supported by the evidence before the Board is also denied. 23 . Admitted, that, " the City has required the Pickering Wharf Trust to develop a hotel of `not less than 70 and not more than 140 rooms' as part of a Tax Increment Financing program with respect to which the City entered a Memorandum of Understanding on April 8, 1998" ; any and all remaining allegations in paragraph 23 of the complaint are denied. 24. Denied. 25. Denied. 26. Denied. COUNT TWO: DUE PROCESS 27 . Defendants incorporate by reference and here re-allege their respective responses to paragraphs 1-26, supra . 28. Denied. 29. AFFIRMATIVE DEFENSES Further answering the complaint, the defendants say as follows : 5 I 1 . The defendants saythat the decisions ons comP lained of were made lawfully, properly and wholly within the scope of their administrative discretion. 2 . The defendants plead failure to exhaust administrative remedies. 3. The defendants plead insufficiency of process . 4 . The defendants plead insufficiency of service of process . 5 . The defendants specifically deny the genuineness of any ur orted signatures upon documents which th P P 4 P e plaintiffs rely on in this case. 6. The defendants plead laches . 7 . The defendants state that the present action against them is time-barred by operation of the applicable statute ( s ) of limitations . 8 . The defendants plead lack of subject matter jurisdiction. 9. The defendants plead lack of personal jurisdiction. 10 . The defendants plead improper venue. 11 . The defendants say that the plaintiffs lack standing to bring the present complaint and/or the various counts thereof, for the reason - among others - that they do not qualify as "aggrieved persons" under the applicable laws . 12 . The defendants plead unclean hands on the part of the plaintiffs . 13 . The defendants plead estoppel on the part of the plaintiffs . 6 14 . The defendants state that the plaintiffs have failed to satisfy the procedural prerequisites to bringing this action. 15. The defendants say that for all of the reasons aforementioned, the complaint fails to state a claim upon which relief may be granted. WHEREFORE, the defendants demand the dismissal of the complaint, with costs taxed to the plaintiffs . THE CITY OF SALEM, et al, By Their City Solicitor, William J. Lundregan, Esq. 81 Washington Street Suite 37 Salem, MA 01970 Tel: 978 . 741 . 3888 Certificate of Service I, William J. Lundregan, hereby certify that on 1999 I mailed, postage pre-paid, a copy of the foregoing document to: Morris M. Goldings, Esq. , MAHONEY, HAWKES & GOLDINGS, LLP, The Heritage on the Garden, 75 Park Plaza, Boston, MA 02116, and to J. Hilary Rockett, 190 Pleasant Street, Marblehead, MA 01945. Signed under penalty of perjury. William J. Lundregan, Esq. 7 j T COMMONWEALTH OF MASSACHUSETTS 9~CEJ,, ED APPEALS COURT 7^;i ,. 6 r6 No. 00-P-862 ESSEX COUNTY SA!EM DOROTHY HARRINGTON, AS SHE IS TRUSTEE OF THE THREE CORNERS REALTY TRUST Plaintiff-Appellant V. WALTER B. POWER, III, AS HE IS CHAIRMAN OF THE PLANNING BOARD OF THE CITY OF SALEM, ET ALS. Defendants-Appellees ON APPEAL FROM A JUDGMENT OF THE LAND COURT BRIEF OF DEFENDANTS-APPELLEES William J. Lundregan, BBO# 307580 Paul L. Feldman, BBO# 162205 81 Washington Street Judith Ashton, BBO# 022900 Suite 37 Davis, Malm & D'Agostine, P.C: Salem, MA 01970 One Boston Place (978) 741-3888 Boston, MA 02108 Attorney for Walter B. (617) 367-2500 Power, III, et als . and Attorneys for J. Hilary Rockett, the City of Salem as he is trustee of Pickering Wharf Realty Trust 1 TABLE OF CONTENTS TABLE OF AUTHORITIES . . . . . . . . . . . . . . . . . STATEMENT OF THE ISSUES . . . . . . . . . . . . . . . . . 1 STATEMENT OF THE CASE . . . . . . . . . . . . . . . . . . 2 STATEMENT OF THE FACTS . . . . . . . . . . . . . . . . . 4 SUMMARY OF THE ARGUMENT. . . . . . . . . . . . . . . . . . 6 ARGUMENT . . . . . . . . . . . . . . . . . . . . . . 8 I . THE LAND COURT HAD JURISDICTION PURSUANT TO G.L. c. 40A, § 17 TO REVIEW THE PLANNING BOARD'S DECISION APPROVING PICKERING' S SITE PLAN, WHEN, IN DOING SO, IT ACTED AS A SPECIAL PERMIT GRANTING AUTHORITY, IT EVIDENCED ITS INTENT TO SO ACT AND IT USED G.L. c. 40A, § 9 SPECIAL PERMIT PROCEDURES. . . . . . . . . 8 A. THE CASE LAW . . . . . . . . . . . . . 8 B. THE PLANNING BOARD IN THIS CASE ACTED WITHOUT QUESTION AS A SPECIAL PERMIT GRANTING AUTHORITY . . . . . . . . . . . . . . . . . . 11 1 . The Planning Board used all pertinent special permit procedures . . . . . . . 11 2 . The Planning Board otherwise evidenced the clear intent of the City that, in performing site plan review; the Planning Board acts as special permit granting authority . . . . . . . 12 3 . Public policy strongly supports a determination that the Land Court had jurisdiction in this case . . . . . . . 15 II. THE COURT SHOULD DISMISS THE COMPLAINT ON THE MERITS BECAUSE A COMPLAINT UNDER G.L. c. 40A, § 17 ALLEGING ONLY POTENTIAL ECONOMIC DAMAGE TO AN OWNER OF PROPERTY BY VIRTUE OF THE NUMBER OF HOTEL ROOMS CONTEMPLATED BY THE APPLICANT FOR SITE PLAN REVIEW FAILS TO STATE A CLAIM UPON WHICH RELIEF CAN BE GRANTED AND THE CLAIMANT HAS NO STANDING. . . . . . . . . . . 16 III . THE CITY OF SALEM GRANTED HARRINGTON SUBSTANTIALLY MORE PROCESS THAN SHE WAS DUE 20 CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . 23 STATUTORY ADDENDUM . . . . . . . . . . . . . . . . . . SA 1 TABLE OF AUTHORITIES CASES Advanced Dev. Concepts Inc v Blackstone, 33 Mass . App. Ct . 228 (1992) . . . . . . . . . . . . . 15 Attorney General v Goldberg, 330 Mass . 291 (1953) . . . 14 Avery v. Steele, 414 Mass . 450 (1993) . . . . . . . . . . 23 Blanchard v. Pellegrini, 1995 WL 808781 (Mass . Super. 1995) . . . . . . . . . . . . . . . . . . . 19 Bowen v. Board of Appeals of Franklin, 36 Mass. App. Ct. 954 (1994) . . . . . . . . . . . . . . . . . . . . . 22 Burnham v. Board of Appeals of Gloucester, 333 Mass . 114 (1955) . . . . . . . . . . . . . . . . . . 13 Circle Lounge & Grille Inc v Board of Appeals of Boston, 324 Mass . 427 (1949) . . . . . . . . . . . 19, 22 Doe v. Cross Point Realty Trust, 4 Land Ct. Rptr. 279 (Land Court 1996) . . . . . . . . . . . . . . . 11 Doyon v. Travelers Indemnity Co. , 22 Mass. App. Ct. 336 (1986) . . . . . . . . . . . . . . . . . . . 17 Dufault v. Millennium Power Partners L.P. , 49 Mass. App. Ct. 137, 142 (2000) . . . . . . . . . . 10, 15 Geryk v Zoning Appeals Board of Easthampton, 8 Mass. App. Ct. 683 (1979) . . . . . . . . . . . . . . . 23 Green v. Board of Appeals, 404 Mass. 571 (1989) . . . . . . . . . . . . . . . . . . . . . . . 19 Liberty Commons Realty Trust v Gurge, 6 Mass . L. Rptr. 166 (Super. 1996) . . . . . . . . . . . . . . . 11 Martin v. Rockland, 1 Mass. App. Ct. 167 (1973) . . . . . . . . . . . . . . . . . . . . . 15 Murray v. Board of Appeals of Barnstable, 22 Mass . App. Ct. 473 (1986) . . . . . . . . . . . . . . 13 National Amusements Inc. v. Boston, 29 Mass. App. Ct . 305 (1990) . . . . . . . . . . . . . . 21 Osberg v. Planning Board of Sturbridge, 44 Mass . App. Ct . 56 (1997) . . . . . . . . . . . . . 9, 15 Panagakos V. Fleurent, 4 Mass . L. Rptr. 303 (Super. 1995) . . . . . . . . . . . . . . . . . . . . . . 13 Prudential Ins . Co v Board of Appeals of Westwood, 23 Mass. App. Ct. 278 (1986) . . . . . . . . . . . . 8, 12 Quincy v. Planning Board of Tewksbury, 39 Mass. App. Ct. 17 (1995) . . . . . . . . . 6, 8-11, 15 Rando v. Town of North Attleborough, 44 Mass. App. Ct. 603 (1998) . . . . . . . . . . . . . . 21 Slater v. Board of Appeals of Brookline, 350 Mass. 70 (1966) . . . . . . . . . . . . . . . . . . . 23 Southgate at Shrewsbury Inc v Shea, 1996 WL 499102 (Mass . Super. 1996) . . . . . . . . . . . 19 Spruce Pond Village Ass'n Inc v LaLiberte, 7 Mass. L. Rptr. 395 (Super. 1997) . . . . . . 10, 11 St . Botolph Citizens Committee Inc v Boston Redevelopment Authority, 429 Mass . 1 (1999) . . . . . . . 9 Verc, Inc. v. Putziger, 1993 WL 818769 (Mass. Super. 1993) . . . . . . . . . . . . . . . . . . . 19 Waltham Motor Inn Inc. v. LaCava, 3 Mass. App. Ct. 210 (1975) . . . . . . . . . . . . . 7, 19 STATUTES AND COURT RULES G.L. c. 40A . . . . . . . . . . . . . . . . . . . . . . . 18 G.L. c. 40A, § 9 . . . . . . . . . . . . . . . . . 1, 6, 12 G.L. c. 40A, § 17 . . . . . 1, 2, 4, 6, 7, 8, 13 , 16, 18, 20 G.L. c. 41, § 81D . . . . . . . . . . . . . . . . . . . . 21 G.L. c. 91 . . . . . . . . . . . . . . . . . . . . . . . 16 G.L. c. 211, § 10 . . . . . . . . . . . . . . . . . . . 2, 7 Mass. R. Civ. P. 12 (b) (1) . . . . . . . . . . . 1, 3 , 16, 18 Mass . R. Civ. P. 12 (b) (6) . . . . . . . . . . . 1, 3 , 16, 18 ii TREATISES 1 M.R. Healy, Massachusetts Zoning Manual § 8 .13, p. 8-35 (1999) . . . . . . . . . . . . . . . . . . . . . 15 iii STATEMENT OF THE ISSUES I . Did the Land Court have jurisdiction pursuant to G.L. c. 40A, § 17 to review a decision of the City of Salem Planning Board approving a site plan, when in doing so the Planning Board was acting as a special permit granting authority, used G.L. c. 40A, § 9 special permit procedures as required under the City's Zoning By-Law, and the Planning Board evidenced clearly its intent to issue a special permit? II . Must the Complaint under G.L. c. 40A, § 17, which alleges only potential competitive economic injury by virtue of the number of hotel rooms to be added in the City of Salem by the site plan applicant's project, be dismissed under Mass . R. Civ. P. 12 (b) (1) because appellant has no standing and under Mass. R. Civ. P. 12 (b) (6) because the Complaint fails to state a claim upon which relief can be granted? III. Did the City of Salem Planning Board deprive appellant of due process when appellant' s only claim of aggrievement before the Planning Board was potential competitive economic injury and the Planning Board held three days of public hearings, received appellant's written opposition to the site plan special permit application, allowed appellant to appear through counsel opposing the application, and issued a written decision approving the application subject to eighteen detailed conditions? Is appellant' s due process claim before this Court frivolous, thereby entitling appellees to double costs under G.L. c. 211, § 10? STATEMENT OF THE CASE Plaintiff-appellant, Dorothy L. Harrington ("Harrington") , trustee of the Three Corners Realty Trust ("Three Corners") , which owns the 89 room Hawthorne Hotel (the "Hotel") , filed a Complaint in the Land Court on August 17, 1999 for judicial review pursuant to G.L. c. 40A, § 17 of a decision (the "Decision") of the City of Salem Planning Board (the "Planning Board") granting unanimous approval to Pickering Wharf Realty Trust ("Pickering") of its site plan special permit application. (App. 5) . Pickering sought such approval in connection with a project on Pickering Wharf in the City of Salem to construct a five-story hotel/retail building and single-story bank building. (App. 21) . Three Corners is not an abutter; its Hotel is about 800 feet away from Pickering' s proposal project .' The basis of Harrington' s Complaint is that the new hotel at Pickering Wharf would be competition to the Hawthorne Hotel and might, therefore, cause a loss of revenue to the Hawthorne Hotel . (App. 5) . Harrington' s Complaint actually i The owners of abutting property were originally plaintiffs in this action as well . on January 24, 2000, the parties filed a Stipulation of Dismissal with prejudice of the abutters' claims . (App. 338) . 2 seeks to create an anti-trust business situation for the Hotel by stymieing competition, which is illegal . (App. 6, para. 4) . The only injury alleged by Harrington in her Complaint is economic damage to the Hotel property "by construction of Pickering' s project by virtue of the excess number of [hotel] rooms in the Salem market over the demand therefor" . (App. 13, para. 22) . Harrington has also claimed that the Planning Board violated her due process rights because, according to her, the Planning Board did not analyze "land use planning considerations including economic factors relating to the nature of adjoining uses ." (App. 14, para. 28) . This claim apparently relates only to the fact that the Planning Board's Decision does not mention the possible economic effects the additional Pickering hotel rooms would have on the Hotel . The defendants below, the Planning Board, the City and Pickering, filed motions to dismiss under Mass. R. Civ. P. 12 (b) (1) and (6) . (App. 205, 20B) . At the hearing on the motions, the Court (Lombardi, J. ) raised the question of whether it had subject matter jurisdiction to review the site plan approval . (Harrington Brief, Add. 3) After the hearing, the parties submitted memoranda of law. All parties argued that the Land Court had jurisdiction over the claims made in the Complaint. On March 7, 2000, the Land Court dismissed the case, ruling that it did not have subject matter jurisdiction under 3 G.L. C . 40A, § 17. (Id. , Add. 1) . The Court did not examine the merits of Harrington' s claim.' On March 9, 2000, Harrington filed a Notice of Appeal and this appeal followed. (App. 367) . STATEMENT OF THE FACTS In an arrogant and cynical attempt to bar a potential competitor from pursuing a valuable business opportunity, Harrington, Trustee of Three Corners, the owner of the Hotel, has mounted a meritless challenge to the City' s Planning Board' s unanimous decision to approve a potential competitor' s application for the construction of a hotel/retail building and a bank building in the City of Salem. On May 27, 1999, Pickering made such application under Sections 7-16 and 7-18 of the City of Salem's zoning ordinance (the "By-Law") for "Site Plan Review Wetlands and Flood Hazard District Special Permits." (App. 21) (emphasis added) . While Pickering' s application was not made on the City' s application form, the City's form indicates that an application for approval of a site plan is for a "Site Plan Review Special Permit" . (App. 23) . (emphasis added) . On page two of the application, the Planning Board states: 2 The Land Court did dismiss the Complaint, on the merits, insofar as it alleged that a Wetlands and Flood Hazard District Special Permit was unlawfully issued to Pickering. The Court held that Three Corners failed to demonstrate that that permit would impact any interest cognizable under the Zoning By-Law or otherwise protected by the zoning laws . (Harrington Brief, Add. 6) . Harrington has not appealed this ruling. 4 The Planning Board shall notify the applicant in writing of its decision on the special permit . The decision shall document the proposed development or use and the grounds for granting or refusing the special permit . (App. 24) (emphasis added) . The proposed project involves demolition of commercial buildings and the redevelopment of a portion of the Pickering Wharf complex in the City of Salem by construction of a five story hotel/retail building and a single story bank building. (App. 21) . The property on which .the proposed project is located is in the Central Business "B-5" District under the By-Law in which such uses as those proposed are allowed as of right. (Harrington Brief, Add. 4, para. 8) . A public hearing was held by the Planning Board on Pickering' s application for three days in June and July 1999. (Id. , para. 9) . On July 1, 1999, a representative of Harrington filed written objections to the site plan citing solely Three Corners' competitive interest and the applicant' s possible financial jeopardy. (App. 25-28) . During the last day of hearings, a representative of Harrington appeared before the Planning Board and made the same arguments. (Harrington Brief, Add. 5, para. 12) . The written objections state that Three Corners' concern is "not to have the market become overbuilt . . . . " (App. 28) . Three Corners is concerned about possible "financial jeopardy" to the Hotel' s owner (Three Corners) because of the number of hotel rooms planned in the Pickering project. (Id. ) . 5 After its hearings, the Planning Board rendered a detailed, four-page, single spaced decision on July 29, 1999. (App. 17-20) . The Board approved the site plan application unanimously, subject to detailed conditions set forth in the Decision concerning landscaping, signage, lighting and traffic, and the like. (Id. ) . The Decision itself indicates that a "special permit" was granted and refers aggrieved persons to the special permit 20-day appeal procedures . (App. 20) . See G.L. c. 40A, § 9. SUMMARY OF THE ARGUMENT 2 . This Court and the Supreme Judicial Court in a series of cases beginning with Quincy v. Planning Board of Tewskburv, 39 Mass. App. Ct. 17 (1995) have ruled that where the municipality uses special permit procedures, appeals from decisions on site plan applications may be filed under G.L. C. 40A, § 17. Here, in approving Pickering' s application, the Planning Board used all pertinent special permit procedures as set forth in G.L. c. 40A, § 9, including holding a public hearing and voting by a two-thirds super-majority. Moreover, the Planning Board's intent to act as a special permit granting authority was further evidenced by its application form and its Decision. Finally, public policy favoring allowing distinct approaches to site plan review by municipalities in the Commonwealth and reinforcing the bright line test established in Quincy strongly supports a ruling 6 that the Land Court had jurisdiction in this case. (Pages 8 to 16) . II . The Court should dismiss this case on the merits because Harrington alleges nothing more than competitive economic injury in her Complaint . Such an allegation is not sufficient to grant her standing as a "person aggrieved" under G.L. c. 40A, § 17 nor does a complaint containing only such a claim state a claim upon which relief can be granted. The anticipated effects of business competition are simply not viable interests deserving of zoning protection. Waltham Motor Inn. Inc. v. LaCava, 3 Mass. App. Ct. 210, 217 (1975) . (Pages 16 to 20) . III. The City of Salem granted Harrington substantially more process than she was due. She was allowed to file a written objection to Pickering' s application and to speak through her representative at the three-day public hearing before the Planning Board. The fact that the Decision does not mention Three Corners' potential competitive injury is not a violation of due process at all . Had the Planning Board based its Decision on this factor the Decision would have been arbitrary and capricious because it would have been based on a legally untenable ground. Thus, Harrington's appeal on the due process issue is without basis in law and defendants - appellees should be awarded double costs on this aspect of the appeal pursuant to G.L. c. 211, § 10 . (Pages 20 to 23) . 7 ARGUMENT I. THE LAND COURT HAD JURISDICTION PURSUANT TO G.L. c. 40A, § 17 TO REVIEW THE PLANNING BOARD'S DECISION APPROVING PICKERING'S SITE PLAN, WHEN, IN DOING SO, IT ACTED AS A SPECIAL PERMIT GRANTING AUTHORITY, IT EVIDENCED ITS INTENT TO SO ACT AND IT USED G.L. c. 40A, § 9 SPECIAL PERMIT PROCEDURES. A. THE CASE LAW. G.L. c. 40A, § 17 provides that a person aggrieved by a decision of a local special permit granting authority has a right of direct appeal to, inter alia, the Land Court. This Court and the Supreme Judicial Court have stated in a series of cases that an aggrieved party may bring a G.L. c. 40A, § 17 appeal of a decision on site plan review when the local board conducts its site plan review using special permit procedures. This principle was first articulated by this Court in 1995 in Ouincy v. Planning Board of Tewksbury, 39 Mass. App. Ct . 17. In that case, the town's site plan by-law articulated special permit procedures. The unanimous Court held that, while the substantive criteria the town was to apply had to be consistent with the tenets of Prudential Ins . Co. v. Board of Appeals of Westwood, 23 Mass. App. Ct. 278 (1986) ', a site plan special permit application under the circumstances "would still lead to the issuance of a special permit." 39 Mass. App. Ct. at 22 . 3 The town may not deny the use, but may impose reasonable terms and conditions on the use. Id. 8 This Court ruled that : [d) enial of a site plan application [and presumably appeal by a person aggrieved by approving an application] constitutes a decision by the special permit granting authority, which is directly appealable under G.L. c. 40A, § 17 . Id. Therefore, " [t] he Land Court had jurisdiction to hear the matter" . Id. This principle articulated in Quinc has been reinforced favorably on numerous occasions since the decision was issued. In 1997, in Osberg v. Planning Board of Sturbridge, 44 Mass. App. Ct . 56 (1997) , this Court held, citing Ouinc , that whether administrative remedies must be exhausted in site plan review depends on the "procedural framework" of the site plan by-law at issue. Id. at 59, n. 7. The Town of Sturbridge, unlike Tewksbury and Salem, did not purport to issue site plan special permits, the parties did not contend that the application was for approval of a special permit and therefore special permit procedures did not apply in the Osberg case. Id. at 59-60 . Likewise, in St . Botolph Citizens Committee Inc v Boston Redevelopment Authority, 429 Mass. 1 (1999) , a City of Boston adequacy determination procedure, akin to non-special permit site plan review, did not give rise to direct appeal, but instead an aggrieved person' s right to appeal arose only when the building permit had been issued or denied. As this Court did in Osberg, the Supreme Judicial Court in St . Botolph cited Ouinc favorably. 9 The holding in Quinc was reinforced once again by this Court just a few months ago in Dufault v. Millennium .Power Partners, L.P. , 49 Mass . App. Ct. 137, 142, n. 13 (2000) .4 Under the settled law set forth above, the court below incorrectly concluded that the Salem By-Law requirement that special permit procedures be conformed to in site plan review "does not result in a site plan review decision of the planning board being appealable as an action of a special permit granting authority." (App. 363) . The court below thus ignored the explicit holding in Quing In fact, the court below failed to mention Ouincy at all in its decision. It failed further to apply the standard set forth in Osberg that the determinative factor to be used in deciding whether site plan approval is directly appealable is exactly what the Land Court stated was not determinative, the by-law's "procedural framework" . Moreover, the Land Court cases that the court below cites to support its position actually strongly support the settled law set forth in Ouinc and its progeny. In Spruce Pond Village Ass'n, Inc v LaLiberte, 7 Mass. L. Rptr. 395, 4 The actual holding in Dufault is inapposite here as, in Dufault, a direct appeal right was properly denied of a site plan approval when the Planning Board was not acting as a special permit granting authority. For example, The Town of Charlton Zoning By-Law in effect in 1997, which was at issue in Dufault, does not provide for a mandatory public hearing before approval, as required by G.L. c. 40A, § 9 for special permits . That by-law was included in the Appendix filed with this Court in Dufault . 10 398, n. 5 (Super. 1997) , now Supreme Judicial Court Justice Cowin stated, citing Ouinc , that under G.L. c. 40A, § 17, "a person may directly appeal a planning board' s approval of a site plan to the Superior Court in those situations where the planning board has acted in the capacity of a `special permit granting authority' ." Because the planning board in Spruce did not purport to do so, there was no right to direct appeal . This was also the case in Doe v. Cross Point Realty Trust, 4 Land Ct. Rptr. 279 (Land Court 1996) . Likewise, in Liberty Commons Realty Trust v Gurge, 6 Massa L. Rptr. 166, 167 (Super. 1996) , the court recognized the Quincy holding that direct appeal to the Land and Superior Courts is allowed when the planning board "has acted in the capacity of a special permit granting authority' ." B. THE PLANNING BOARD IN THIS CASE ACTED WITHOUT QUESTION AS A SPECIAL PERMIT GRANTING AUTHORITY. All of the extant evidence supports conclusively a ruling that the Planning Board here, in issuing the site plan special permit, was acting as a special permit granting authority. That evidence is as follows. 1. The Planning Board used all pertinent special permit procedures. Just as in the Ouincy case, the Salem By-Law "contains no separate provision that calls for more limited site plan review of uses available as of right not requiring a special permit ." 39 Mass. App. Ct . at 21 . The By-Law has only one site plan review provision and only one site plan review 11 procedure. (App. 271-273) . This establishes a clear intention by the City to process those applications in which review is limited by Prudential Ins . Co. v Board of Appeals of Westwood the same way it processes applications in which it has discretionary power to deny the use. Additionally, the By-Law specifically adopts all pertinent G.L. c. 40A, 9 9 special permit procedures including: • a public hearing is to be held within 65 days after filing of the application, "in accordance with Massachusetts General Laws, Chapter 40A" (App. 273) ; • failure to take action within 90 days is deemed a grant of approval (Id. ) ; • decisions must be made by a two-thirds vote of the seven member board (Id.) ; and • approval lapses if construction has not commenced within two years (Id. ) . 2. The Planning Board otherwise evidenced the clear intent of the City that in performing site plan review, the Planning Board acts as a special permit granting authority. In addition to the clear intent set out in the By-Law itself, the City, through the Planning Board, has expressed such an intent in other essential ways. For example: • The Planning Board's site plan application form provides clearly that it is an application for a 12 "Site Plan Review Special Permit" . (App. 23) (emphasis added) . • That form specifically provides that the decision the Planning Board is to make is a "decision on the special permit" and that it will document the reasons for granting or denying the "special Permit" . (App. 24) (emphasis added) . • The Decision states that the Board has granted a "Special Permit" and that the G.L. c. 40A, § 17 appeal period of 20 days is applicable. (App. 20) (emphasis added) . • Harrington's Complaint alleges that the Board in making its decision constituted "a special permit granting authority" . (App. 5, para. 1) . The City, in its answer, admits this allegation. (App. 198) . It is well settled that zoning is a "local matter and much weight must be given to the judgment of the local legislative body. . . ." Burnham v. Board of Appeals of Gloucester, 333 Mass . 114, 117 (1955) . The actions and expressed intentions of the municipality and of the applicant are indicative of whether a special permit has been issued. Panagakos v. Fleurent, 4 Mass. L. Rptr. 303 (Super. 1995) , citing Murray v. Board of Appeals of Barnstable, 22 Mass . App. Ct. 473, 479 (1986) . Here, the City, through the By-Law and the actions of the Planning Board, clearly indicated an intent to issue a site plan special permit . Pickering also expressed 13 i that intent, as it applied for "Site Plan Review and Wetlands and Flood Hazard District Special Permits" . (App. 21) (emphasis added) . A review of the Tewksbury Site Plan Review By-Law at issue in Ouinc establishes that all of the procedures used there are set forth as well in Salem's By-Law. That the Planning Board here does not call itself by the label "special permit granting authority" when it considers site plan special permit applications should not give this Court pause. Intentions expressed in the By-Law and elsewhere count for significantly more than labels. See Attorney General v. Goldberg, 330 Mass. 291, 293 (1953) ("plain words in the text of a statute are not to be cut down by its title") . In fact, the Board of Appeals, which has jurisdiction under the Salem By-Law of many types of special permit applications is not labeled as a special permit granting authority either. (App. 280-281) . Moreover, the Salem By-Law clearly contemplates that the Planning Board will issue special permits, because when it delineates the duties of the Board of Appeals it states explicitly that the Board of Appeals has the power and duty: to hear and decide applications for special permits except such applications for special permits where the power to grant is vested in the planning board by this ordinance. (App. 280) . 14 3 . Public policy strongly supports a determination that the Land Court had jurisdiction in this case. Three important public policy considerations strongly support a determination that the Land Court had jurisdiction in this case. First and foremost, for this Court to so determine would reinforce the strong public policy which holds that zoning is a local matter, Martin v. Rockland, 1 Mass. App. Ct. 167, 169 (1973) , and that the intentions of Massachusetts' municipalities in enacting and implementing zoning ordinances should be effectuated to the full extent allowed by law. Advanced Dev. Concepts Inc v Blackstone, 33 Mass. App. Ct. 228 (1992) . Second, to so rule would continue and reinforce this Court' s and the Supreme Judicial Court' s acceptance of distinct approaches taken by different municipalities to the issue of site plan review. See 1 M.R. Healy, Massachusetts Zoning Manual § 8.13, p. 8-35 (1999) . The Court has manifested this acceptance by countenancing the differing approaches taken by the Towns of Sturbridge (Osberg) , Tewksbury (Quincy) , and Charlton (Dufault) . Third, a ruling in favor of direct appeal here would continue the bright line test established in Quincy and Osberg which holds that the key to how, when and where to appeal site plan grants and denials is whether special permit procedures are e used in the applicable by-law. By affirming this bright line test, the Court will ensure that applicants aggrieved by 15 l denials and persons aggrieved by approvals continue to have certainty as to how, when and where to appeal. If special permit procedures are used by the municipality, appeal is to the Superior or Land Court under G.L. c. 40A, 9 17. If not, appeal is to the Board of Appeals after a building permit has been issued. II. THE COURT SHOULD DISMISS THE COMPLAINT ON THE MERITS BECAUSE A COMPLAINT UNDER G.L. c. 40A, S 17 ALLEGING ONLY POTENTIAL ECONOMIC DAMAGE TO AN OWNER OF PROPERTY BY VIRTUE OF THE NUMBER OF HOTEL ROOMS CONTEMPLATED BY THE APPLICANT FOR SITE PLAN REVIEW FAILS TO STATE A CLAIM UPON WHICH RELIEF CAN BE GRANTED AND THE CLAIMANT HAS NO STANDING. Although the Land Court declined to address the substantive issues relating to Pickering's motion to dismiss, Pickering urges this Court to do so both for reasons of justice and judicial economy. Pickering will demonstrate below that based on over a half-century of settled law Harrington' s Complaint fails even the most lenient tests under Mass. R. Civ. P. 12 (b) (1) and 12 (b) (6) and that on the merits Pickering is entitled to a grant of its motion to dismiss . Not only does judicial economy argue for a determination by this Court on the substantive merits of Harrington' s claim, but justice requires it. J. Hilary Rockett, as Trustee of Pickering, has stated in his affidavit filed with this Court that, were this appeal not pending, with the issuance of a G.L. c. 91 license Pickering would have begun construction on this project on approximately July 1, 2000 . Affidavit of J. Hilary Rockett, 16 Trustee of Pickering Wharf Realty Trust, para. 4 . That Affidavit was filed with this Court in support of his motion to expedite this appeal. Construction would have been completed by April, 2001 in time to open the new hotel for the 2001 spring season. Id. Because of its location, the hotel will be a seasonal market hotel with the bulk of the guests staying in the spring, summer and fall months. Id. Construction cannot begin this construction season because of this frivolous lawsuit. The delay will result in serious financial consequences to Pickering, including substantial loss of rental income, onerous financing carrying costs and lost income to the project itself. Id. , para. S . If this Court rules that the Land Court had subject matter jurisdiction and does not decide the case on the merits, the case will have to be remanded to the Land Court, Harrington will inevitably lose and she will file yet another appeal with this Court. This piecemeal process will delay the project indefinitely, resulting in even greater financial harm to Pickering. Pickering urges the Court not to allow this to occur. It is for these reasons and because of the clarity of the substantive law in this area that Pickering urges the Court to decide this case on the merits. Moreover, the issue here is purely a legal one and thus extensive further litigation is not required. See, e.4. , Doyon v. Travelers Indemnity CO. , 22 Mass. App. Ct . 336, 339 (1986) . 17 Turning to the well-pleaded allegations in the Complaint, that Complaint contains nothing more than a claim that the property of Three Corners, the Hotel, will be caused "serious diminution" in value (App. 12, para. 20) "by virtue of the excess number of rooms in the Salem market over the demand therefor" (App. 13, para. 22) . There is no other allegation of aggrievement by Harrington other than this diminished value of the Hotel due to the competition from the proposed new hotel because of the "excess number of rooms" in the Salem market. The Complaint makes no other claim and no other claim was made by Harrington before the Planning Board. These allegations do not even begin to state a claim upon which relief can be granted and, as a matter of law, based on these claims, Harrington has no standing as a person aggrieved under G.L. c. 40A. As will be shown below, Harrington has no standing under Mass. R. Civ. P. 12 (b) (1) because she cannot establish she is a "person aggrieved" under G. L. c. 40A, § 17 . Her allegation of competitive economic injury is not sufficient as a matter of law to assert aggrievement. Moreover, her Complaint fails to state a claim under Mass. R. Civ. P. 12 (b) (6) because claims of competitive economic injury are not cognizable under G.L. c. 40A, § 17 . The anticipated effects of business competition are not viable interests receiving protection under the zoning laws. The cases are legion which hold that claims of loss of business competition are not cognizable under the zoning laws 18 l and those alleging such claims are not "persons aggrieved" . As early as 1949, the Supreme Judicial Court held that "injury from business competition has generally considered damnum absque injuria." Circle Lounge & Grille. Inc v Board of Appeals, 324 Mass. 427, 429 (1949) . "It was no part of the purpose of the zoning regulations to protect business from competition" . Id at 429-430 . This rule has remained steadfast in the over half-century since Circle Lounge was decided. In Waltham Motor Inn, Inc. v LaCava, 3 Mass. App. Ct. 210, 217 .(1975) , the Appeals Court held that that anticipated effects of business competition were not viable interests deserving of zoning protection. See also Green v. Board of Appeals, 404 Mass. 571, 574 (1989) ("a business competitor does not have standing an aggrieved party") ; Verc. Inc. v. Putziger, 1993 WL 818769 (Mass. Super. 1993) ("zoning has many laudable purposes, but stifling of competition is not one of them") ; Blanchard v. Pellegrini, 1995 WL 808781 (Mass . Super. 1995) (" [A]ny claim of increased competition is insufficient to establishing standing") ; and Southgate at Shrewsbury, Inc. v Shea, 1996 WL 499102 (Mass. Super. 1996) ("A person's concern about possible business competition which may result in the issuance of a permit has been determined not to constitute a reason for `aggrieved party' status.") . Thus, Harrington, who specifically alleges that her harm is solely the anticipated competitive economic impact from a number of additional hotel rooms makes no claim cognizable under G.L. c. 19 40A, § 17 and the motions to dismiss should be granted on their merits. III. THE CITY OF SALEM GRANTED HARRINGTON SUBSTANTIALLY MORE PROCESS THAN SHE WAS DUE. Harrington' s due process argument is built on the shakiest house of cards. The foundation of her house of cards consists of a false statement made by her counsel, citation of wholly inapposite cases, and blind ignorance to controlling law which has been settled for decades . As will be shown below, even the stalwarts of Hester Prynne' s community would be shocked by Pickering's neighbor's conduct as to the due process issue. First, Harrington makes the shrill plea that the Planning Board failed to consider the Salem' s master plan in deciding to approve Pickering's site plan. Says Harrington, "the City's own master plan stated that there should not be the construction of a new hotel with more than 66 rooms ." (Harrington Brief, p. 21) . Harrington and her counsel know better. The record does not contain the master plan, but Pickering has attached it to this brief should the Court wish to review it. That master plan makes no such statement and says nothing even remotely similar to Harrington' s statement. What it does say, as set forth in Harrington' s Complaint, is that the City would support " [g] reater quantity and variety of lodging alternatives - encourage development of convention hotel, family and B & B lodging. . . ." (App. S, para. 11) . It is simply impossible for a rational person to argue that the 20 l Planning Board was not effectuating this goal in approving Pickering's site plan request to construct a hotel property, which would both add lodging and would include hotel facilities .' The two cases cited by Harrington to support her argument that the Board denied her due process in fact support the Board's decision. Rando involved a rezoning of property from residential to commercial which was not preceded by a traffic study as required under the Town's master plan. 44 Mass. App. Ct. 603 . The rezoning was upheld as all that was required for rezoning was an analysis of land use planning considerations . The four-page single spaced Decision here, dealing with conformance to the site plan, landscaping, signage, health, fire and environmental issues, and traffic issues, among other issues (App. 17-20) , can hardly be said not to show careful and detailed analysis of the important land use issues to which site plan review speaks.' s Even if the project did not effectuate the goals of the master plan, the law does not require that zoning be in strict accordance with a master plan. Rando v. Town of North Attleborough, 44 Mass. App. Ct. 603, 612 (1998) . It should be noted as well that Harrington misstates the law when she says that G.L. c. 41, § 81D requires that the City establish a master plan. (Harrington Brief, p. 19) . The most cursory of readings of this statute establishes that it does not . b National Amusements. Inc. v Boston, 29 Mass. App. Ct. 305 (1990) , the other case Harrington cites, stands for the proposition that, before reclassifying a large parcel from general business to multi-family residential, the City of Boston must show its decision has some "roots in planning objectives, rather than simply to protect other businesses in the surrounding neighborhood." Id. at 312 . In this case, 21 r What Harrington is really saying is that she has been denied due process because the Board did not consider that her possible competitive injury due to the addition of a number of available hotel rooms in the City was deserving of protection in the site plan review process. As has been shown in Section II of this brief, the law has been settled for generations that reducing business competition is an improper zoning consideration. Circle Lounge & Grille Inc v Board of Appeals of Boston, 324 Mass. at 430 . Thus, the Planning Board correctly did not analyze the issue in its Decision. It is undisputed that Harrington was permitted to file a written objection to Pickering's application, (App. 12, para. 19) , and to speak through her representative at the three-day hearing, (Id. , para. 20) . Moreover, while the Board is not required to provide a written analysis of all issues it may have considered, Bowen v. Board of A eals of Franklin 36 DD , Mass. App. Ct. 954 (1994) , the Board here unquestionably did so. (App. 17-20) . In short, without any authority for her position whatsoever, Harrington argues that her due process rights were infringed upon because the Board did not consider possible competitive injury to Three Corners in approving Pickering' s site plan. The short answer is, had it done so, it would have acted on a legally untenable ground and its decision would Harrington is asking for the opposite, for the Planning Board to protect her business at the expense of the City's master plan goals and the standards set forth in the By-Law. 22 have been arbitrary and capricious . Gervk v. Zoning Appeals Board of Easthampton, 8 Mass. App. Ct. 683, 684 (1979) ; Slater v. Board of Appeals of Brookline, 350 Mass. 70, 73 (1966) . Because Harrington's appeal on the due process issue is without any basis in law whatsoever, Pickering requests that this Court award Pickering double costs pursuant to G.L. c. 211, § 10 . Avery v. Steele, 414 Mass. 450 (1993) . CONCLUSION For the foregoing reasons, Pickering respectfully requests that the Court rule that the Land Court had subject matter jurisdiction to hear this appeal, that Harrington' s due process claim be denied, that double costs be awarded to Pickering, and that the Court determine on the merits to grant Pickering' s motion to dismiss on the grounds that Harrington's Complaint failed to state a claim upon which relief can be granted and Harrington had no standing to bring the Complaint which alleges only potential competitive economic injury. J. HILARY ROCKETT, as he is trustee of Pickering Wharf Realty Trust By his attorneys, Paul L. Feldman, BBO# 162205 Judith Ashton, BBO# 022900 DAVIS, MALM & D'AGOSTINE, P.C. One Boston Place Boston, MA 02108 (617) 357-2500 23 t f WALTER B. POWER, III, et als . and THE CITY OF SALEM By their attorneys, i e n, BBO# 307580 S eet Suite 37 Salem, MA 01970 (978) 741-3888 Dated: July 17, 2000 J:\Ashton\ROCRSPf\appnal.hrf.v d 24 COMMONWEALTH OF MASSACHUSETTS ESSEX, SS, Sitting in TRIAL COURT OF THE SUFFOLK, SS COMMONWEALTH LAND COURT DEPARTMENT Civil Action No. q9 ^ 25? 538 DOROTHY L. HARRINGTON, AS SHE IS TRUSTEE OF THE THREE CORNERS REALTY TRUST, AND DONALD J. MICHAUD AND MARY G. MICHAUD,AS THEY ARE TRUSTEES OF THE MI-SKE REALTY AND INVESTMENT TRUST Plaintiffs V. WALTER B. POWER, III, AS HE IS CHAIRMAN AND CHARLES M. PULED, JOHN C. MOUSTAKIS, GENE COLLINS, KIM DRISCOLL, L. LEE HARRINGTON, CARTER VINSON, DAVID WEINER, AND WILLIAM R. CULLEN, AS THEY ARE MEMBERS OF THE PLANNING BOARD OF THE CITY OF SALEM; THE CITY OF SALEM; AND J. HILARY ROCKETT,AS HE IS TRUSTEE OF PICKERING WHARF REALTY TRUST Defendants COMPLAINT COUNT I: JUDICIAL REVIEW UNDER G L C 40A & 17 INTRODUCTION 1. This is a complaint for judicial review against the Planning Board of the City of Salem, the City of Salem and the Pickering Wharf Realty Trust by persons aggrieved by a decision of the Planning Board as it is constituted as a special permit granting authority which granted a special permit to the Pickering Wharf Realty Trust. As set forth in this complaint, this decision was in excess of the authority of the said Board and was legally untenable, unreasonable, capricious and arbitrary. Y 2. This complaint seeks to annul the decision of the Planning Board rendered July 29, 1999, and filed in the Office of the City Clerk July 29, 1999 (the "Decision"). (A copy of the Decision is attached hereto and marked"A.") 3. The complaint also seeks a declaration of rights under G.L. c. 231 A with respect to the actions of the Planning Board and the City of Salem by virtue of the failure of the Planning Board to consider in its Decision the diminished value of, and the adverse effect upon, the property rights of the Plaintiffs caused by the Decision and the adverse economic effect on the City of Salem and its citizens generally. PARTIES 4. The Plaintiff Dorothy L. Harrington is the Trustee of Three Comers Realty Trust (the "Trust"), a Massachusetts Realty Trust which was established under a Declaration of Trust dated December 30, 1985, and recorded in Essex South District Registry of Deeds, Book 8150,page 380. The Trust owns the property known as the Hawthorne Hotel (the"Hawthorne")located on the Common at 18 Washington Square West in Salem, Massachusetts and is very near the property subject to the Decision(approximately 800 feet away). The Hawthorne has existed since 1925 and is presently operated as a hotel with eighty-nine (89) rooms. It employs approximately one hundred nine 190 full and part-time ninety ( ) employees, of which approximately one hundred ten(110) are residents of the City of Salem. 2 5. The Plaintiffs Donald J. Michaud and Mary G. Michaud reside at 12 Savoy Road in Salem, Massachusetts and are Trustees of the Mi-Ske Realty and Investment Trust, a Massachusetts Realty Trust which was established under a Declaration of Trust dated April 6, 1992, and recorded in Essex South District Registry of Deeds, Book 11431, page 426. The trust owns the property at 222/224 Derby Street, Salem, Massachusetts, which abuts the property subject to the Decision. 6. The Defendants Walter B. Power, III of 18 Loring Avenue, Salem, Massachusetts, Charles M. Puleo of 5 Freeman Road, Salem, Massachusetts, John C. Moustakis of 25 Dearborn Street, Salem, Massachusetts, Gene Collins of 63 Appleton Street, Salem, Massachusetts, Kim Driscoll of 12 Charles Street, Salem, Massachusetts, L. Lee Harrington of 23 Beach Avenue, Salem, Massachusetts, Carter Vinson of 7 Chestnut Street, Salem, Massachusetts, David Weiner of 16 Bay View Circle, Salem, Massachusetts, and William R. Cullen of 41 Walter Street, Salem, Massachusetts are the Chairman and members of the Planning Board of the City of Salem existing pursuant to the provisions of G.L. c. 41 § 81A. 7. The Defendant City of Salem is a municipal corporation. 8. The Defendant J. Hilary Rockett is the Trustee of the Pickering Wharf Realty Trust ("Pickering Wharf.") The address of the Trust is 190 Pleasant Street, Marblehead, MA 01945. THE LAW GOVERNING THE PLANNING BOARD AND THE EVIDENCE BEFORE THE BOARD 9. The Defendant Planning Board is required by G.L. c. 41, § 81D to establish a master plan and is authorized to "perfect such plan." The master plan is required to be "a statement, through text, maps, illustrations or other forms of 3 communication, that is designed to provide a basis for decision making regarding the long-term physical development of the municipality. The comprehensive plan shall be internally consistent in its policies, forecasts and standards, and shall include the following elements:... (1) Goals and policies statement which identifies the goals and policies of the municipality for its future growth and development. Each community shall conduct an interactive public process, to determine community values, goals and to identify patterns of development that will be consistent with these goals. (4) Economic development element which identifies policies and strategies for the expansion or stabilization of the local economic base and the promotion of employment opportunities." 10. The Salem Zoning Ordinance contains in its Section 7-18 entitled"Site Plan Review" the following: "The planning board shall review [an application]... and make certain that the development, if approved,takes place in a manner which shall in all aspects be an asset to the city..." 11. On September 4, 1997, the Planning Board adopted a"Master Plan Update" which included among its provisions the development of"Greater quantity and variety of lodging alternatives—encourage development of convention hotel, family and B&B lodging..." 4 12. On August 14, 1997, the City of Salem issued a request for proposal for a consultant to prepare a hotel feasibility study. The request specifically includes the following at p. 1 —"The result of the study shall include: a determination of the number of hotel rooms that can be absorbed into the Salem market." A copy of the request for proposal is attached hereto and marked"C." 13. On August 29, 1997, the City of Salem received a response to the request for proposal from Landauer Hospitality Group and a letter relating to the proposed engagement . (The response and letter are attached hereto and marked "D.") 14. On September 4, 1997 (the same day on which the Board adopted the Master Plan Update), the City of Salem executed an agreement with Landauer Hospitality Group for a hotel feasibility study based upon the request for proposal referred to as Exhibit C. A copy of the Agreement is attached hereto as "E." 15. On December 31, 1997, the Landauer Hospitality Group issued its Report pursuant to the Agreement. A copy of this Report is attached as "F." 16. In its Report to the Defendant City of Salem, the Landauer Hospitality Group concluded the following with respect to a new hotel: "Salem is a highly seasonal market. Although Salem's unique history and vaned attractions draw an estimated 650,000 visitors per year, the majority of these visits occur between June and October." (Page 3, Landauer Report"F," City of Salem, December, 1997.) 5 "Two project facility scenarios were analyzed during the course of this assignment, a 120-room, mid market, full-service lodging facility and a 66-room limited-service lodging facility. Each scenario was analyzed in the context of site dynamics, project costing, site plan layout, and prospective market and financial performance. It was determined, that a 66-room limited service hotel stood the best chance of attracting private sector developer interest." "A small 66-room limited service hotel at Pickering Wharf appears market supportable. Significant concessions will be required from the City of Salem and a potential developer in order to render the project financially feasible." (Page 8, Landauer Report "F", City of Salem, December, 1997.) The hotels located in Salem will be particularly vulnerable to the hotel expansion currently taking place on the North Shore's highways. In most instances, these locations offer higher visibility, greater accessibility and closer proximity to the major demand generators in the North Shore market. As a result, expansion of the hotel supply in the future will have a greater impact on hotels with secondary locations such as Salem." Page 55, Landauer Report "F," City of Salem, December, 1997.) "Based on the preceding analysis of the market area including the existing properties and planned additions to the hotel supply, we 6 recommend selection of the Pickering Wharf site for potential hotel development. This selection was based upon the superior attributes of the site as outlined in the Site Analysis section of this report. Market, anticipated financial performance and site constraints size the property at 66 guest rooms. We do not believe that the development of a full-service property will yield any significant advantage cost of developing such a property. Our research supports the development of a limited-service hotel with a national franchise affiliation." (Page 63, Landauer Report "F," City of Salem, December, 1997.) "Despite its waterfront location and close proximity to Salem's many attractions including tourist destinations, restaurants and shopping, the prospective hotel will still have a locational disadvantage when compared to the competitive hotels located on the area's highways. With its modern accommodations and facilities, the prospective hotel will have a competitive advantage over the two Salem hotels, the Salem Inn and Hawthorne Hotel, in capturing tourism and locally generated corporate demand." (Page 64, Landauer Report "F," City of Salem, December, 1997). (Emphasis added) THE DECISION OF THE PLANNING BOARD 17. On May 27, 1999, the Defendant Pickering Wharf filed a letter purporting to be an application with the Defendant Planning Board for a "Site Plan Review and 7 Wetlands and Flood Hazard District Special Permits" for "the construction of a five-story hoteUretail building and a new single-story bank building at 223-231 Derby Street and 23 Congress Street in the City of Salem...[and] a parking lot consisting of 83 vehicle spaces." (Decision"A", first paragraph). The letter purporting to be the application is attached hereto as "A-1." The City of Salem Form of Application for Site Plan Review Permit (not filed by Pickering Wharf) is attached hereto as "A-2." Nowhere in the letter of Pickering Trust nor in the Decision is there a statement of the number of rooms in the proposed hotel, although the form of application (not filed) calls for a statement of the number of units. 18. A public hearing was commenced by the Planning Board on June 17, 1999, and continued on July 1, 1999, and July 28, 1999, with respect to that application. 19. On July 1, 1999, a representative of the Trust sent to the Defendant Power a letter setting forth objections to the application. (A copy of that letter is attached hereto and marked`B"). 20. On July 28 1999 the Trust appeared through counsel before the Planning Board at its hearing and presented documents, testimony and argument in opposition to the application primarily on the grounds that the unrebutted evidence (including specifically a Report of a consultant authorized by the Defendant City of Salem itself) before the Planning Board with respect to the ability of the City of Salem to support economically a hotel of the size proposed by the application demonstrated that the addition of such a hotel in the Salem market would be likely to cause serious dimunition of the value of the property of the Trust. Evidence presented 8 by the Michaud's demonstrated that the size of the proposed hotel structure would diminish the economic value and important amenities of the Michaud property. 21. On July 28, 1999, the Trust presented to the Planning Board a copy of a report dated January 14, 1997, previously furnished to the Board, from Pinnacle Advisory Group, a hotel development consultant, entitled: "Market Demand Study for a Proposed Hotel to be Located in Salem, Massachusetts." (A copy of that report is attached hereto and marked "G.") That report concluded that "Given the strength of the demand in the market, we believe that a 60-room hotel would be most appropriate.""(Page 16). 22. On July 28, 1999, a principal of Pinnacle Advisory Group presented testimony to the Board reaffirming and updating the report of the Pinnacle Advisory Group and stated its conclusion that a limited service hotel in excess of approximately 60 rooms would be likely to fail and was likely to cause economic damage to the property of the Trust itself by virtue of the excess number of rooms in the Salem market over the demand therefor. 23. Notwithstanding the conclusions of the Landauer Report and the Pinnacle Advisory Group Report, the City has required the Pickering Wharf Trust to develop a hotel of"not less than 70 and not more than 140 rooms"as part of a Tax Increment Financing program with respect to which the City entered a Memorandum of Understanding on April 8, 1998. (A copy of that Memorandum of Understanding is attached hereto and marked "H.") 24. No evidence was presented to the Planning Board contradicting the Report of the City's own consultant. In fact, other evidence presented to the Board confirmed 9 the conclusions of the Report of the City's consultant as to the adverse effect of the proposed hotel on the property of the Trust and its lack of economic feasibility. 25. Notwithstanding the undisputed evidence before the Planning Board, the Board rendered the Decision which in no way reflects any analysis of, or even consideration of, or any determination with respect to, the economic effects of the proposed hotel on the property of any abutters or any person very near the property. 26. In the light of the evidence before the Planning Board, including specifically the conclusions of the Report of the consultant authorized by the City of Salem itself, the action of the Planning Board in issuing the Decision without analysis or consideration of any evidence of diminished value of property or adverse effects on property rights, and contrary to all of the evidence before the Board, was in excess of the authority of the Board and was legally untenable, unreasonable, capricious and arbitrary and should be annulled. COUNT TWO: DUE PROCESS 27. The Plaintiffs incorporate herein by reference paragraphs 1 through 26. 28. The failure of the Planning Board to give any analysis of land use planning considerations, including economic factors relating to the nature of adjoining uses, as detailed in the Report authorized by the City of Salem, in its special permit Decision constituted a denial of due process to the Plaintiffs in violation of Article XII of the Declaration of Rights of the Constitution of The 10 Commonwealth of Massachusetts and the Fifth and Fourteenth Amendments to the United States Constitution. WHEREFORE, the Plaintiffs pray that: 1. The Court hear all the evidence pursuant to G.L. c. 40A, § 17 pertinent to the authority of the Planning Board of the City of Salem to issue the Decision dated July 29, 1999. 2. The Court determine the facts and, upon the facts as so determined, annul the decision of the Planning Board of the City of Salem dated July 29, 1999, was in excess of the authority of the said Board and legally untenable, unreasonable, capricious and arbitrary. 3. The Court pursuant to G.L. c. 231A make a binding declaration that the Planning Board of the City of Salem must consider the effect of the granting of a special permit for the construction of a new hotel upon the value of the property and property rights of an abutter or person whose property is very near. 4. The Court make such other decree as justice and equity may require, including, but not limited to, remanding this matter to the Planning Board with instructions to hear further evidence of the diminished value of the property of the Plaintiffs and the adverse effects on the Plaintiffs' property Yrights caused by the proposed hotel facility and to make specific findings upon such evidence before rendering any new decision upon the application. tt I DOROTHY L. HARRINGTON, AS SHE IS TRUSTEE OF THE THREE CORNERS REALTY TRUST AND DONALD J. MICHAUD AND MARY G. MICHAUD, AS THEY ARE TRUSTEES OF THE MI-SKE REALTY AND INVESTMENT TRUST qr Attorney, 4 M. Goldings BBO# 198800 MAHONEY, HAWKES & GOLDINGS, LLP The Heritage on the Garden 75 Park Plaza Boston, Massachusetts 02116 Tel: 617-457-3100 Date: August 17, 1999 447262 12 33 � MAHONEY, HAWKES & GOLDINGS, LLP ATTORNEYS AND COUNSELLORS AT LAW Morris M.Geldings Loyd M.Starrett William S.Hawkes August 17, 1999 Mark Pete. Frances Allou Genhwin Copy aures Winthrop 6dmanc Damn a.Cor BY HAND DELIVERY Laurence t p mn Ed Clerk's Office e ohert C Cate Land Court Department aDaaid J.GddheqC�ada�Jones 24 New Chardon Street v David17Cerrigso Boston,Massachusetts 02114-4703 BriwjF Leah Re: Dorothy L. Harrington,et al.v. Walter B. Power III et al aie .Jaeohs 1V Keely J.Sullivan Dear Sir or Madam: Matthew P.zaymi Enclosed herewith for filing please find the Complaint in the above GW��°pki°e referenced matter together with a check in the amount of$110 for the filing fee. Direct Did Please date-stamp the enclosed copy of this letter and return it to the (617)210-1477 undersigned with the messenger. Thank you for your attention in this matter. �y yo Morris M. Goldings MMG/jag Enclosure #47502 The Heritage on the Garden • 75 Park Plaza • Boston. Massachusetts 02116 Telephone: 617.457.3100 • Facsimile: 617.457.3125 COPY TO CITY SOLICITOR — AUG. 24, 1999 MAHONEY, HAWKES & GOLDINGS, LLP ATTORNEYS AND COUNSELLORS AT LAW Morris Al. Goldings Loyd M.Starrett William S. Hawkes August 17, 1999 Mark Peters Frances Allou Gersh an Bruce Winthrop Edmonds Ms. Deborah E. Burkinshaw James B.cea City Clerk Laurence M.Johnson City of Salem Robert C. Cadle Salem City Hall Daniel J.Goldberg 93 Washington Street Douglas L.Jones Salem, Massachusetts 01970 David R. Kerrigan Brian W.LeClair Dear Madam Clerk: Ellen S.Shapiro Richard S.Jacobs Please take this as notice that on August 17, 1999 the original of the Keely J.Sullivan Complaint of Dorothy L. Harrington, Trustee, et al. v Walter B. Power, III, et al., Matthew P.zavetti Civil Action No. 99-258338 for Judicial Review under G.L. c. 40A § 17 and for James other relief was filed in the Land Court Department of the Trial Court of the Of Couns Hopkins el Commonwealth of Massachusetts in Boston. The Complaint relates to the decision of the Planning Board filed July 29, 1999. Direct Dial (617)210-1477 Thank you for your attention in this regard. Very trul yours Morris M. Gold gs MMG/jag Enclosure n #47441 G7 ,J v Y w l _ s —J v7 The Heritage on the Gamlen • 75 Park Plaza • Boston, Massachusetts 02116 Telephone: Cil L05:.3100 • Fac si mile: 61-.45-.3125 C;Ty of S+aOF M- A C1 ERK - C lug Ulf "Salem, fflttssadjusfifs 3 ' Patming Puarb 1999 JUl 29 P 1� OU 1(Dnr �$ttlrm Grant July 29, 1999 Pickering Wharf Realty Trust C/o Atty. Joseph Correnti Serafini, Serafini, Darling, & Correnti, LLP 63 Federal Street Salem, MA 01970 RE: Pickering Wharf Hotel, 223-231 Derby Street and 23 Congress Street Site Plan Review and Wetlands and Flood Hazard District Special Permit On Thursday, June 17, 1999, the Planning Board of the City of Salem opened a Public Hearing regarding the application of Pickering Wharf Realty Trust under Site Plan Review and Wetlands and Flood Hazard District Special Permit for the construction of a five story hotel/retail building and a new single story bank building at 223-231 Derby Street and 23 Congress Street. In addition, the plan shows a parking lot consisting of 83 vehicle spaces. The Public Hearing was continued to July 1, 1999, and closed on July 28, 1999. At a regularly scheduled meeting of the Planning Board held on July 28, 1999,the Board voted by a vote of seven (7) in favor,none opposed,to approve the application as complying with the requirements of Site Plan Review and the Wetlands and Flood Hazard District , subject to the following conditions: I. Conformance with the Plan Work shall conform with the set of plans entitled, "Site Plan for Pickering Wharf Hotel & Retail Building—223-231 Derby Street and 23 Congress Street, Salem, MA", sheets 1-11, prepared by Patrowicz, Land Development Engineering, dated May 26, 1999. 2. Amendments Any amendments to the site plan shall be reviewed by the City Planner and if deemed necessary by the City Planner, shall be brought to the Planning Board. Any waiver of conditions contained within shall require the approval of the Planning Board. 3. Landscaping a. All landscaping shall be done in accordance with the approved set of plans. b. Trees shall be a minimum of 3 ''/z" caliper. Pickering Wharf Hotel July 29, 1.999-2 c. Maintenance of landscape vegetation shall be the responsibility of the developer,his successors or assigns. d. Additional landscaping shall be planted adjacent to the rear of the building. A final landscaping plan for this area shall be approved by the City Planner. e. All attempts shall be made to save the trees located on the site prior to construction, excluding the trees located at the proposed curb cut on Congress Street adjacent to the bank building,the curb cut proposed on Derby Street, and the proposed loading dock curb cut on Derby Street. f After such landscaping is completed,the developer will add further landscaping if such is requested by the Planning Board or the City Planner. g. A four foot high black wrought iron style fence shall be constructed around the perimeter of the property, excluding the rear property line. The final design of the fence shall be approved by the City Planner. 4. Signage a. Proposed signage shall be reviewed and approved by the City Planner and the Sign Review Committee. 5. Lighting a. Ornamental lighting shall be installed on the site, which is in keeping with the standard City of Salem lighting located on Derby Street. b. No light shall cast a glare onto adjacent parcels or adjacent rights of way. c. A final lighting plan shall be submitted to the City Planner for review and approval prior to the issuance of a building permit. d. After installation, lighting shall be reviewed by the City Planner, prior to the issuance of a Certificate of Occupancy. 6. Construction Practices All construction shall be carried out in accordance with the following conditions: a. Work shall not be conducted between the hours of 5:00 PM and 8:00 AM the following day on weekdays or at any time on Sundays or Holidays. b. All reasonable action shall be taken to minimize the negative effects of construction on abutters. Advance notice shall be provided to all abutters in writing at least 72 hours prior to commencement of construction of the project. c. Drilling and blasting shall be limited to Monday-Friday between 8:00 AM until 5:00 PM. Pickering Wharf Hotel July 29, 1.999-3 There shall be no drilling or blasting on Saturdays, Sundays, or holidays. Blasting shall be undertaken in accordance with all local and state regulations. d. All construction vehicles shall be cleaned prior to leaving the site so that they do not leave dirt and/or debris on surrounding roadways as they leave the site. e. All construction shall be performed in accordance with the Rules and Regulations of the Planning Board, and in accordance with any and all rules,regulations and ordinances of the City of Salem. f. All construction vehicles left overnight at the site, must be located completely on the site. 7. Clerk of the Works A Clerk of the Works shall be provided by the City, at the applicant, his successors or assigns' expense, as is deemed necessary by the City Planner. 8. Board of Health All Board of Health requirements as specified in the attached decision dated July 15, 1999, shall be strictly adhered to. 9. Fire Department All work shall comply with the requirements of the Salem Fire Department. 10. Conservation Commission All work shall comply with the Order of Conditions issued by the Salem Conservation Commission. 11. Building Inspector All work shall comply with the requirements of the Salem Building Inspector. 12. Utilities a. Utility installation shall be reviewed and approved by the City Engineer prior to the issuance of a Building Permit. b. Drainage shall be reviewed and approved by the City Engineer prior to the issuance of a Building Permit. 13. Conference Center The City of Salem Planning Board endorses the concept of the Conference Center proposed to be constructed on the site as part of the site master plan. The applicant agrees to file plans for Site Plan Review of the Conference Center within three (3) years of the completion of construction of the hotel. 14. Exterior Elevations a. Building elevations shall be similar to the elevation sketch dated July 29, 1999, with the exception of the projecting entry tower. The projecting entry tower shall be reduced to Pickering Wharf Hotel July 29, 1999-4 extend approximately 10 feet A revised elevation sketch shall be submitted to the Planning Department. b. Final elevations,brick type, and other building materials shall be reviewed and approved in writing by the City Planner prior to the issuance of a Building Permit. 15. Traffic Mitigation The developer, his successors, or assigns agrees to contribute $10,000 to a downtown corridor traffic study to be conducted through the City of Salem. The contribution made by the developer, his successors, or assigns shall coincide with the City of Salem receiving confirmation of funding for the study. 16. Maintenance a. Refuse removal, ground maintenance and snow removal shall be the responsibility of the developer, his successors or assigns. b. Winter snow in excess of snow storage areas on the site shall be removed off site. c. Maintenance of all landscaping shall be the responsibility of the applicant, his successors or assigns. The applicant, his successors or assigns, shall guarantee all trees and shrubs for a two-(2)year period. 17. As-built Plans As-built plans, stamped by a Registered Professional Engineer, shall be submitted to the Planning Department and Engineering Department prior to the issuance of the final Certificate of Occupancy. 18. Violations Violations of any condition shall result in revocation of this permit by the Planning Board, unless the violation of such condition is waived by a majority vote of the Planning Board. I hereby certify that a copy of this decision and plans has been filed with the City Clerk and copies are on file with the Planning Board. The Special Permit shall not take effect until a copy of this decision bearing the certification of the City Clerk that twenty (20) days have elapsed and no appeal has been filed or that if such appeal has been filed, and it has been dismissed or denied, is recorded in the Essex South Registry of Deeds and is indexed under the name of the owner of record is recorded on the owner's Certificate of Title. The owner or applicant, his successors or assigns, shall pay the fee for recording or registering. Walter B Power, III Chairman ,f•�-lie. SF_R A FIN I, SERAFINI, DARLING & CORREN(y,J LLP ATTORNEYS AT LAW �({�A� C3 FEDERAL STREET lI ? � (J SALEM. MASSACMUSCTT5 01970 5• / JOHN R. 3ERA1I111, 50.. ELCPMONC JOHN R. GCMfIN I. JH. t--r.r--,!-'•.yri Eeswsa 976.7440212 JOHN C. OARUNG JOOCVH C CORRCNTI Rt TCLECO P![R t,hY 2 7 �"S:1 9 70.7 41-40 f] I May 27 , 1999 Dept Walter B. Power, III, Chairman City of Salem Planning Board One Salem Green, 2nd Floor Salem, MA 01970 RE: Application for Site Plan Review and Wetlands and Flood Hazard District Special Permits - Pickering Wharf 223-231 Derby Street and 23 Congress Street, Salem Dear Mr. Power: On behalf of the Pickering Wharf Realty Trust, owner of property situated at 223-231 Derby Street and 23 Congress Street in Salem, described on plans submitted herewith, I hereby make application for Site Plan Review under Section 7-18 , and a Special Vermit under the Wetlands and Flood Hazard District, Section 7-16 of the City of Salem Zoning Ordinance. The proposed project involves the demolition of some retail buildings , as well as the former marina building, and the redevelopment of a two acre portion of the Pickering Wharf complex. The site abuts the South River, and a Notice of Intent will also be filed with the Conservation Commission. The .proposal includes the construction of a five-story hotel/retail building and a new single-story bank building. Also shown on the plan, but intended for a future filing With the Planning Board, is Phase 2 of the development, which includes a hotel conference center and marina. Proposed parking includes eighty-three .(83) on-site spaces, as well as use of the surface parking lot across Congress Street, which is controlled by the Applicant. Additionally, the new parking garage on the corner of Congress and Derby Streets will be operational and available for Pickering wharf patrons. The project is to be constructed as shown on the plans submitted herewith, and it provides n continuum of the allowed mixed uses which are allowed in the Central Business (B-5) District. Walter B. Power, III, Chairman City of Salem Planning Board May 27 , 1999 Page Two The proposed buildings will have a grand federal, nautical- type design to help convey the history of Salem' s seaport. The landscaping proposed uses street trees within the parking area to supplement er1. tx ng tree„ that surround the site. The building materials, as designees by the architect, include brick facades. The plans as filed, together with the Environmental Impact Statement which serves as the narrative under the list of requests contained in the Site Plan Review requirements, give a comprehensive view of the project. This project is an exciting addition to the City. The new hotel, restaurant and retail space will create a grand and natural link. between the downtown and the waterfront. The proposed project will transform Pickering Wharf into the vibrant and exciting area which it was always intended to be, and will have a positive impact on the City while sending the message that Salem is indeed interested in welcoming new business. We respectfully request the Board's favorable review of the plans under the Site Plan review process. Sincerely, Pickering Wharf Realty Trust By: ep C. Correnti, Esquire JCC:dd Enclosures s, A M C p- � �3 n. m-r D CITY OF SALEM H� APPLICATION SITE PLAN REVIEW SPECIAL PERMIT Applicant : Date of Submittal : Address : Proposed Date of Hearing: Telephone: Date of Approval: Location of Property: Date of Completion of Appeal Period: 1. Project Description: a. Zoning district: b. Square footage of parcel: c. Square footage of structure(s) : d. Square footage of footprint: e. No. of dwelling units ( if applicable) : II . Additional Information: Information required includes this application and the following additional information. File one copy of all information with City Clerk and five copies with the Planning Board (all copies must be stamped by City Clerk) . a. A Site Plan at a scale of 1"=40 ' , (or as established by Planning Board) including all requirements as set forth in Section IIIB of the Salem Subdivision Regulations and the following: 1. Location and dimensions of all buildings and other construction; 2 . Location and dimensions of all parking areas, loading areas, walkways, and driveways; 3 . Location and dimensions of all internal roadways and accessways to adjacent public roadways; 4 . Location and type of external lighting; 5 . Location, type, dimensions and qualities of landscaping and screening; 6 . Location and dimensions of utilities, gas , telephone, electrical communications, water , drainage, sewer and other waste disposal; 7 . Location of snow removal areas ; 8 . Location of all existing natural features including ponds, brooks, streams , wetlands, and marshes; 9 . Existing and proposed topography of the site, with two foot contours ; 10 . Conceptual drawings and elevations of buildings to be erected including elevations showing architectural styles. b. A brief narrative, as requested by the Planning Board addressing these site plan requirements and other appropriate concerns in the following defined categories: 1 . Building 2 . Parking and loading 3 . Traffic flow, circulation and traffic impact 4 . External lighting 5 . Landscaping and screening 6 . Utilities 7 . Snow removal 8 . Natural features and their protection and enhancement 9 . Topography and its maintenance 10. Compatibility of architecture with surrounding area C. An Environmental Impact Statement in accordance with Appendix A of the Salem Subdivision Regulations. III . Procedure: The Planning Board shall, within 7 days after the filing of this application, transmit one copy of said application, plans and all other submitted information to the Inspector of Buildings, City Engineer , Board of Health and Conservation Commission who may, at their discretion, investigate the application and report in writing their recommendation to the Planning Board. The Planning Board shall not take final action on such application until it has received a report thereon from the Inspector of Buildings, City Engineer , Board of Health and Conservation Commission or until thirty-five (35) days have elapsed after distribution of such application without a submission of a report. The Planning Board shall hold a Public Hearing on said application as soon as possible after receiving the above reports, in accordance with Chapter 40A of the Massachusetts General Laws. The Planning Board shall notify the applicant in writing of its decision on the special permit. The decision shall document the proposed development or use and the grounds for granting or refusing the special permit. The Planning Board may, as a condition of approval, require that the applicant give effective notice to prospective purchasers, by signs or by recording the special permit at the Registry of Deeds, of the conditions associated with said premises and the steps undertaken by the petitioner or his successor in title to alleviate the effects of same. Signature of Applicant Date Fee Paid: EX\DH\SPRSPAPP HAWTHORNE HOTEL July 1, 1999 Mr. Walter B. Power, M 18 Loring Avenue Salem,MA 01970 Re: Pickering Wharf Hotel proposal Dear Walter: I am writing to you, in your role as Chairman of the Salem Planning Board,to share with you and your membership my growing concern relative to the viability and credibility of the proposal currently before you calling for the redevelopment of a portion of Pickering Wharf for hotel purposes in the context of both significant changes which have occurred in the marketplace,and the equally significant departure the proposal represents in the context of earlier consultative and expert advice the City received as the basis and rationale for providing a durational public subsidy for this project. Allow me to provide you with some background as context for the observation I have just made and the conclusions which I have arrived at The Friday,June 18, 1999, edition of The Salem Evening News in recounting the Planning Board's initial public hearing on the proposed hotel for Pickering Wharf,indicated that a 100-room facility was planned. In addition,the account suggested that a second phase component calling for a conference and meeting center was contemplated,but was not presented to the Board for consideration at this point in time. As you are aware,the Salem City Council on June 16, 1998 gave approval,subject to concurrence on the part of the Economic Assistance Coordinating Council of the Commonwealth of Massachusetts,to a multi-year tax increment financing agreement with the developer with respect to the hotel portion of its proposal as outlined in the TIF agreement bearing that date. (I am enclosing a copy of the"Application for Certified Project Designation Tax Increment Financing Plan"of June 16, 1998) HLSTORIC HOTTLS� On The Common, Salem, MA 01970 (97$ (744-4080 • Fax 978 745-9842 for Nauon,l T AMERICA Prrse"26L .v.xn.r 1.e....f.nrn�f,nf►r MT 07/06/99 12:26 'U9787452626 UAninuxrvn UUILL July 1, 1999 Page 2 In this instance,the agreement approved by the City Council in June, 1998 called for the construction of an 80-room hotel, along with a retail component,and a separate standing building for Eastern Bank useage. Nowhere in the document was there a reference to a second phase calling for the prospective creation of a conference and/or meeting center, as outlined in the proposal presently before you. By way of additional background as it relates to these initial observations, let me provide you and your fellow members with some additional history as you evaluate the proposal. In the fall of 1996, in the aftermath of successfully negotiating with the Federal Deposit Insurance Corporation with respect to the resolution of all of the issues occasioned by the fall of Bank of New England in January, 1991, the ownership of the Hawthorne Hotel retained Rachel Roginsky,of Pinnacle Advisory Group, Boston,to undertake an evaluation of the need for additional hotel capacity in Salem. (By way of background,Ms. Roginsky's fmn has for a number of years been the primary source of gathering and evaluating information on behalf of the Massachusetts Lodging Association with respect to all aspects of the hospitality industry in the ambit of the organization's service area.) Ms.Roginsky completed her report on or about January, 1997 and recommended that the City could absorb some additional 60 rooms of moderately priced hotel capacity, suggesting, in the course of her report,that it was important that it have a national affiliation, be moderately priced, and configured as suites. (A copy of the Roginsky report is enclosed. Note particularly the Executive Summary dealing with a number of these issues on pages 1-4. I should also add here that I made the Roginsky-Pinnacle Advisory report available to the City coincidental with their determining to undertake a similar initiative.) Subsequent to this, the City engaged in its own evaluation of room needs and retained the Landauer Hospitality Group, a well recognized and substantive consultant to the hospitality industry,to perform this function. In December, 1997, the Landauer report was submitted to the City. The Landauer report was remarkably similar in nature and conclusions to the recommendations previously made by the Pinnacle Advisory Group, in this instance, suggesting a moderately priced, suite only, nationally affiliated 66-room property as potentially achievable with supplemental assistance from the City at the Pickering Wharf site. Both reports noted the secondary nature and potential vulnerability of the Salem market, and the likelihood, given general developer interest post the recovery of the local economy, that other rooms were likely to come on line at or near major highway locations. The Landauer report noted the existence of 1,197 rooms which it defined as competitive within GO nAniuw�+m - - July 1, 1999 Page 3 the existing marketplace and made specific reference to additional projects either under- way, or seeking permitting within the market area which it defined as encompassing the Cities of Salem, Peabody and Beverly and the Town of Danvers. (I am enclosing a copy of the Landauer report submitted to the City of Salem in December, 1997; I would suggest that you note particularly pages 3-1I the Executive Summary within that report.) Since these evaluations were completed, the intervening eighteen months have seen some 659 rooms completed or in the process of completion. I think it is useful at this juncture to spell out specifically to you and your Board the properties which make up this additional rooms complement, and their respective locations. 1) 120-room Hampton Inn, Route 1 north,Peabody 2) 85-room Homewood Suites, Route 1 north,Peabody 3) 97-room Mainstay Suites in Centennial Park, Peabody 4) 115-room Extended Stay America, Route 1, Danvers 5) 127-room Marriott,Danvers, (in construction, completion and opening, 1999) 6) 115-room Springwood Suites Hotel, Route 1, Peabody (permitting completed, construction to commence, 1999) This, then, is the situationp y existent resentlas you undertake to review the proposal before you. The current project calling for 100 rooms is 50%larger in scale than that recommended by the City's consultant, Landauer Group in December, 1997,and 66 2/3% larger than the recommendation made to the owners of the Hawthorne Hotel in January of that same year. The number of available rooms has increased in the context of the Landauer Group's defined market area(Salem/Beverly/Peabody/Danvers)by over 55%. There are now 1,856 rooms identified as in existence or coming on Iine as against the 1,197 rooms referred to by the Landauer Group in making its evaluation and recommenda- tions to the City of Salem in December, 1997. Stepping back in an effort to put this in a somewhat broader context, it is equally clear, based on the Hotel Hawthome's experience and data available through the Massachusetts Lodging Association, and other equally substantive evaluative sources, that the increase in the overall number of rooms within the relevant Massachusetts area has led to a modest but real waning of occupancy. In addition, during this same period the growth in average daily rate growth has significantly moderated. In view of the overall situation which I have made an effort to highlight for you, I have retained Ms. Roginsky's firm,Pinnacle Advisory, to provide me with an update of her January, 1997 analysis with respect to hotel room needs within the Salem marketplace, July 1, 1999 Page 4 both in the context of the Pickering Wharf proposal, and more importantly, with respect to the sharp increase in the number of hotel rooms within the market area, and to the broader market trends I have alluded to. Ms. Roginsky has indicated that she.estimates it will take approximately a month to six weeks to complete this evaluation. When it is available, as I did earlier,I intend to make this information available to representatives of the City of Salem. In view of the City's intent to subsidize this project for a 12-year period, I think it would be useful, before proceeding further, to ask that the Salem Planning Board, acting with and through the Mayor and City Council to undertake a similar review of these substantial changes, both with respect to the present plan which, as I have indicated,represents a marked departure from the consultants' recommendations, and more importantly, the substantial changes in the number of rooms available in the defined marketplace. As you know,the enabling ordinance providing for the creation of the Salem Planning Board characterizes the general duties of the Board in the following manner: "...in addition to the duties prescribed by statute, it should be the duty of the Planning Board... in general to point out to the City Council such recommendations for the industrial, commercial and civic development of the City as may seem for the best interest of the City and its citizens." My concern having spent the better part of thirteen years through good times and bad, in an effort to make the Hawthorne Hotel a viable and contributive entity within the City of Salem, is not to have the market become over-built as a result of a public subsidy. This condition could adversely affect all concerned, including the City. For should the economic cycle change, the potential exists under present circumstances to place not only the existing hotel property, which as you know, was the initiative of the citizens of the City of Salem some 74 years ago, but potentially both properties in financial jeopardy. Sincerely, Michael J. Harrington MJH:AG Enclosures L IX. RECOMMENDED FACILITIES AND ESTIMATED UTILIZATION (LANDAUER REPORT) Introduction "Based on the preceding analysis of the market area including the existing properties and planned additions to the hotel supply, we recommend selection of the Pickering Wharf site for potential hotel development. This selection was based upon the superior attributes of the site as outlined in the Site Analysis section of this report. Market, anticipated financial performance and site constraints size the property at 66 guest rooms. We do not believe that the development of a full-service property will yield any significant advantage in terms of increasing its overall revenue potential when factored against the additional'cost of developing such a property. Our research supports the development of a limited-service hotel with a national franchise affiliation." (Section IX- page 63 -Hotel Development Evaluation, Salem, Massachusetts, December, 1997, Landauer Hospitality Group.) TAX INCREMENT FINANCING PLAN-JUNE, 1998 "Pickering Wharf Realty Trust pians to construct an 80 +/- roam, three story hotel containing standard 14' x 36' rooms featuring kitchen facilities. The ground floor will offer 18,000 square feet of retail space. The development will be a total of four stories. The development cost of the hotel portion of the project is $3,541,100. The hotel will be approximately 50,000 square feet." (Page 2-Application for Certified Project Designation Tax Increment Financing Plan of June 16, 1998.) SALEM PLANNING BOARD INITIAL HEARING ON PICKERING WHARF HOTEL PROPOSAL "By Tom Dalton News to Salem - "The Planning Board got its first look last night at the plans for a 100-room Pickering Wharf Hotel that supporters claim will revitalize the downtown." (The Salem Evening News, Friday,June 18, 1999.)