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2004-01-14 SRA MinutesSRA Minutes January 14, 2004 Page 1 of 6 MINUTES OF THE BOARD MEETING OF THE SALEM REDEVELOPMENT AUTHORITY HELD ON JANUARY 14, 2004 A regular meeting of the Salem Redevelopment Authority (SRA) Board was held in the third floor conference room at the City Hall Annex, 120 Washington Street, on We dnesday, January 14, 2004 at 6:00pm. Chairman Robert Curran called the meeting to order and on roll call, the following members were present: Conrad Baldini, Michael Brennan, Michael Connelly, Robert Curran, and Russell Vickers. Joseph Walsh, Executive Director of the SRA, Tania Hartford, Economic Development Planner, and Valerie Gingrich, Clerk were also present. Minutes Mr. Baldini motioned to approve the minutes from the meeting held on December 10, 2003. Mr. Vickers seconded the motion. Motion passed (5-0). New Business 1. Executive Director’s Report Mr. Walsh stated that he had two updates. The first was that the Conceptual Plans for the redevelopment of the Coastal Gas Station site have been revised according to the SRA’s comments in October, and the DRB will review the plans at their next meeting on January 28. The plans will then come back to the SRA for final approval at the Schematic Design Review level. The second update was that the Mayor, in his midterm address, outlined several items that will be submitted to the City Council for action including: an Institutional Master Plan Ordinance, rezoning for the North River Canal Corridor, and the Artist’s Row initiative for the temporary use of the Marketplace as art space. DEVELOPMENT PROJECTS 2. Salem Five Bank (One Salem Green)—Final Design Review for the development of a two-level pedestrian bridge connecting buildings located at One Salem Green and 210 Essex Street. Attorney George Atkins gave an overview of the proposal to construct a pedestrian bridge to link 210 Essex and One Salem Green. Attorney Atkins informed the Board that they have filed an application for Site Plan Review with the Planning Board, and are currently in the review process. Attorney Atkins explained that Salem Five is proposing a two-story bridge due to security concerns. Without the two-level pedestrian bridge, the current configuration of the internal staircases would force workers to leave secure areas of the building to get between floors. If they went with a one- level pedestrian bridge, they would have to couple that with building an internal staircase, which is difficult. SRA Minutes January 14, 2004 Page 2 of 6 Mark Meche of Winter Street Architects gave an overview of the structural components of the bridge. He stated that a civil engineering team is currently working on the project. Mr. Curran asked Mr. Meche to explain where vehicles will park during construction. Mr. Meche stated that during the construction process, some parking would be temporarily lost. The foundation of the bridge (the two columns) will be dug by hand, which will not create a large disturbance, and the steel frame will be lifted in one day. Some parking will have to be blocked off during the overhead construction, but he stated that it should be minimal. Mr. Curran inquired as to whether parking spaces in the adjacent city owned lot would be lost. Mr. Meche stated that minimal parking would be lost. Mr. Walsh stated that the applicant will need to provide exact details of the construction process and they also need to provide the final height of the bridge. Mr. Meche replied that the exact height of the bridge is being narrowed down and they will have the height within the next few days. Mr. Walsh inquired as to the amount of light splash that would come from the bridge. Mr. Meche replied that the light will be diffused and the light source will not be seen from the outside. Attorney Atkins added that it is highly unlikely that city parking will be lost during construction. Mr. Meche stated that some of the city parking might have to be blocked off for one day, while the crane is erecting the structure. Mr. Baldini motioned to send the project to the DRB for design review. Mr. Vickers seconded the motion. Motion passed (5-0). REDEVELOPMENT AUTHORITY PROJECTS 3. 18 Crombie Street—Review of redevelopment proposals and selection of designated developer for the site. Mr. Walsh introduced the four applicants who submitted proposals to rehabilitate 18 Crombie Street He stated that all four of the proposals were well thought out and he was impressed by each of them. Mr. Curran invited the applicants to give a brief statement. ▪ Habitat for Humanity—North Shore Mr. Warren Sawyer, president of Habitat for Humanity—North Shore, stated that their international organization has created over 150,000 homes for low-income families. Mr. Sawyer described the development team, which is comprised of Bernice Pasternak, John Goff, Tim Jenkins, and Jim Haskell. The team is made up of local historians and archi tects who would be involved in the rehabilitation, along with members of the community and the future owners of the rehabilitated house. Mr. Sawyer stated that Jim Haskell of the Salem Harbor Community Development Corporation would aid in creating a local family selection committee, which will select a family to live in the house. Mr. Sawyer then introduced John Goff, preservation architect, who outlined the proposal. SRA Minutes January 14, 2004 Page 3 of 6 Mr. Brennan asked Mr. Sawyer if the organization has the necessary funds on hand, or will they have to do some fundraising. Mr. Sawyer stated that they do not have 100% of the funds at the moment, but if that was a requirement, they could get it. Mr. Sawyer explained that funds are collected from community organizations, grants, and from volunteer work. Mr. Brennan inquired as to whether Habitat for Humanity has ever failed to complete a project due to lack of funds. Mr. Sawyer stated that he did not know of any affiliates who have failed due to lack of funding. Mr. Sawyer stated that the project will take approximately twelve months from the time they get their permits, but it could take less. ▪ SITI, LLP Mr. Kirk Rothemich introduced his development team, which comprised of Joseph McCarthy, Kieran O’Neill, and Patricia Roka. Mr. Rothemich outlined the proposed rehabilitation of the house and stated that they would be seeking outside financing from banks in the area and their personal capital to fund the project. Mr. Rothemich stated that they would do a soil evaluation and create as much green space as possible. Mr. Connelly commented that the estimated costs are $40,000 higher than the previous proposal and $30,000 is marked for soil remediation. Mr. Connelly questioned whether the estimates are conservative. Mr. Rothemich explained that they earmarked the amount so that they do not get partially through the work and cannot finish the project. Mr. Brennan asked how the developers would keep the house affordable. Mr. Rothemich replied that there would be a fifteen-year restriction on the deed. Mr. Vickers inquired as to whether HUD would set the price of the house or the costs would set the price. Mr. Rothemich stated that they are not looking to make a lot of money on the project, but rather are looking for an investment in the community. He explained that they already have one or two families who qualify, and they will base the sale price on the costs of rehabilitating the house. For instance, if the rehab costs $154,000, they will sell the house for approximately $170,000-$175,000 which is well under the HUD set price for an affordable single-family home. Mr. Rothemich also stated that they will take advantage of special programs, which lenders use to lower rates. ▪ Rich Lewandowski Mr. Rich Lewandowski introduced himself as a prospective developer and homeowner of 18 Crombie Street. He outlined his plan to rehabilitate the house for his family to reside. He stated that he too would do a soil test and if the contamination were of a substantial degree, he would have to relinquish the property. Mr. Lewandowski stated that financing would be in the form of his own savings, city rehabilitation funds, and sweat equity. Mr. Lewandowski stated that, in his estimate, the project would take approximately ten months to complete. Mr. Brennan asked Mr. Lewandowski if he meets the income requirements. Mr. Lewandowski replied that he does meet the requirements. ▪ Michael Marcil Mr. Michael Marcil introduced himself as a resident of Crombie Street and a prospective developer and homeowner of 18 Crombie Street. He outlined his plan to rehabilitate the house with the help of his family members, who are experienced in historic preservation and home restoration. Mr. SRA Minutes January 14, 2004 Page 4 of 6 Marcil stated that, in his estimate, the rehabilitation would take between nine to twelve months to complete and cost approximately $100,000. At this time, Mr. Curran addressed the audience and asked if anyone would like to make any comments. Ruth Wall of 13 Crombie Street stated that Crombie Street is a tricky place to live because of the neighboring homeless shelter. She expressed her excitement of seeing the rehabilitation of 18 Crombie and thanked the SRA for their efforts. Barbara Cleary commented that once a developer is selected they should make every effort to save historic material on the interior of the home. Tim Jenkins commended the process of saving and rehabilitating 18 Crombie Street. Mr. Walsh explained the procedure to the board members, stating that if the board feels they have enough information from the developers, they can select a designated developer tonight. The next steps will be the Land Disposition Agreement (LDA), which includes all of the terms and conditions of the sale, and the permitting process. Mr. Curran asked the members of the board if they had any more questions for the applicants. Mr. Vickers asked Mr. Sawyer of Habitat for Humanity how they would set the price of the house. Mr. Sawyer explained that the target group is those whose income is 40% of median income, and the price is based on what the homeowner can pay. Anything above the price that the future homeowner is able to pay will be absorbed by Habitat for Humanity. Mr. Vickers suggested an Executive Session to discuss the proposals. Mr. Baldini agreed. Mr. Walsh stated that it is appropriate to discuss the proposals without an executive session. Mr. Walsh suggested that the board can either discuss all of the proposals, or if any of the members have a strong feeling about one of the proposals, he could nominate a developer and the board could discuss the developer. Mr. Walsh stated that the board does not appear to have the grounds to go into an executive session. Mr. Connelly asked if they could hold their decision until the next meeting. Mr. Walsh stated th at they certainly could but that there is no reason to postpone a discussion about the proposals. Mr. Walsh stated that SRA staff had composed a memo, per the “evaluation of proposals” section of the RFP, which recommended Habitat for Humanity as the designated developer and outlined the criteria for making the recommendation. The recommendation was based on the criteria as stated in the Request For Proposals, which included a preference for a nonprofit organization, sweat equity and community involvement, financing, timeliness, affordability restrictions, and the owner selection process. Habitat for Humanity is a nonprofit organization that has experience with the criteria mentioned, and therefore are the recommended developer. Mr. Walsh stated that the estimated schedule is to select a designated developer tonight, have a draft LDA for the next meeting, and proceed with the permitting process. Mr. Walsh said that if the developer is unable to sign the LDA for some reason, the board could go back and se lect a new designated developer. This is a better option than selecting a backup in the beginning, because the SRA is not boxed in by their selection. SRA Minutes January 14, 2004 Page 5 of 6 Mr. Vickers stated that experience and the ability to complete the rehab in a timely manner are the top priorities of the developer that they will choose. Mr. Vickers stated that all of the developers who submitted proposals could do the rehab, but some do have more resources and experience. Mr. Brennan motioned to designate Habitat for Humanity as the developer of 18 Crombie Street. Mr. Baldini seconded the motion. Motion passed (5-0). 4. Old Salem Police Station Mr. Walsh stated that the board members received two pieces of correspondence in their packets, including a commitment letter from Citizen’s Bank, which was received prior to December 31, 2003 and a copy of the closing agenda with a target date of February 10, 2004. Mr. Bill Luster informed the board that they have a closing scheduled for the first week of February, but the exact date is not yet decided. Mr. Luster stated that they are expecting a simultaneous transaction with financing and purchase of the Old Police Station. Mr. Luster briefly reviewed the long financing and cleanup processes, which the developers went through in the past year. Mr. Luster informed the Board that the Old Police Station site is now a clean site. Mr. Luster stated that he signed the final document from Webb Engineering stating that the site is clean and ready for construction. Mr. Luster explained that the developers changed banks, from Beverly Coop to Citizen’s, because of a much lower closing cost and lower interest rate. Mr. Luster explained that the long process has been frustrating for them and certainly for the board members, but a closing has been scheduled and a contract has been signed with Welch Construction. Mr. Brennan asked about the financing requirements. Mr. Luster stated that they are required to have a clean 21-E report and three pre-sales with a $5,000 deposit and a Purchase and Sale Agreement. He stated that they have a clean 21-E and deposits for three units. Mr. Connelly inquired as to the timeframe of the construction. Mr. Luster stated that construction is expected to take nine to ten months. Mr. Vickers stated that the construction schedule would need to be revised if the board agrees on the extension of the closing date deadline. Mr. Connelly motioned to extend the closing date deadline to February 15, 2004 and to adjust the construction dates correspondingly. Mr. Vickers seconded the motion. Motion passed (5-0). Mr. Brennan asked Mr. Luster to submit the letter regarding the site being clean. 5. Old Salem Jail Mr. Walsh informed the board that the Mayor will be submitting a request to the City Council this week to transfer the ownership of the Old Salem Jail to the SRA. SRA Minutes January 14, 2004 Page 6 of 6 There being no further business, Mr. Connelly motioned to adjourn the meeting. Mr. Vickers seconded the motion. Motion passed (5-0). Meeting stands adjourned. Respectfully submitted, Valerie Gingrich Clerk