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2004-02-11 SRA MinutesSRA Minutes February 11, 2004 Page 1 of 5 MINUTES OF THE BOARD MEETING OF THE SALEM REDEVELOPMENT AUTHORITY HELD ON FEBRUARY 11, 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 Wednesday, February 11, 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. Connelly motioned to approve the minutes from the meeting held on January 14, 2004. Mr. Vickers seconded the motion. Motion passed (5-0). New Business 1. Executive Director’s Report Mr. Walsh explained to the board that he is double booked tonight and will have to leave early. He further stated that he had only one comment regarding the last item on the agenda, 10 Federal Street. He explained that the item was a late addition to the agenda at the request of the Mayor. The plans are very preliminary, but they were included in the meeting agenda to expedite the process due to a time constraint. Mr. Walsh explained that the applicant would like to be in the contention for the District Attorney’s office. Typically staff will review a project prior to being placed on an agenda, however, due to timing, this will be the first look for everyone. Mr. Walsh stated that he will raise any additional points as the agenda items come up. REDEVELOPMENT AUTHORITY PROJECTS 2. 18 Crombie Street—Review of Land Disposition Agreement between the SRA and Habitat for Humanity-North Shore Ms. Hartford passed out the draft of the Land Disposition Agreement (LDA) while Mr. Walsh explained that there is no action required from the board at this time. A draft of the LDA was provided as asked in the meeting in January. Mr. Walsh stated that Habitat for Humanity will begin the permitting process as they work out the details of the LDA. Mr. Walsh informed the members of the board that they and the developer will have the next thirty days to review the draft and make any changes. Mr. Walsh stated that Ms. Hartford will meet with representatives from Habitat for Humanity prior to the LDA being finalized. 3. 18 Crombie Street—Review of proposed redevelopment plans at the Schematic Design Review Level SRA Minutes February 11, 2004 Page 2 of 5 Mr. Walsh stated that the SRA will review the project at the schematic level and the final level. He explained that the schematic plans were the same as were included in the approved proposal submitted by Habitat for Humanity but that now it will be reviewed as a project as opposed to a proposal. Ms. Hartford explained the proposed plans and stated that Mr. John Goff is working on the design. She explained that the review process includes schematic review and final review. The applicants will be able to get in and out of the building as necessary to develop the final plans. The applicants hope to complete the review process by May. Mr. Walsh explained the options before the board. He stated that they can refer the project to the Design Review Board for review at their meeting on February 25, or they can ask further questions of the developers. Mr. Curran asked the developers if they had talked to Joe at the Texaco station because he has information about the site and photos of the area from the 1800s. The applicants stated that they would look into it. Mr. Brennan motioned to refer the project to the DRB for design review at the schematic level. Mr. Baldini seconded the motion. Motion passed (5-0). 4. Old Police Station Update Mr. Walsh stated that since the board’s vote to extend the drop dead date to February 15th at the last meeting, Attorneys Steve Lovely and Jack Keilty have been working diligently toward the closing. Attorney Bill Quinn, who reviews all of the City’s new business loans, has been asked to make himself available to make sure the City’s part in subordinating the loan is sufficient. Mr. Walsh passed out a letter from Bill Luster requesting a building permit on behalf of Heritage Plaza LLC. Citizen’s Bank has requested that a building permit be issued prior to the loan closing. In order to not hold up the process, the Building Commissioner has issued a letter stating that the City cannot issue a building permit to Heritage Plaza LLC until they own the property, but the Inspector has reviewed and approved the set of plans submitted. Therefore, once the transaction of transferring ownership is complete, the building permit can be issued. If, however, Citizen’s Bank needs an actual permit to be issued prior to the closing, the City may be able to issue a permit in the name of the SRA, as was the case with the remediation. In that instance, Heritage Plaza would apply for and pay for the permit and the SRA would hold the permit until the transfer of ownership is complete. Mr. Walsh stated that the developers have submitted plans for the wing that had to be demolished in the remediation work, which show the restoration of the wing with a few minor changes. They have been asked to come back to the SRA/DRB to present the changes that they are proposing and receive approval for these changes. Mr. Walsh stated that the developer, at the request of Citizen’s Bank, asked to restructure the City of Salem loan. Attorney Quinn has written a reply letter to this request and is working with the attorney for Citizen’s Bank on coming up with a subordination agreement that covers the City’s interests. Mr. Walsh explained that it is a way of saying that the City is willing to subordinate if SRA Minutes February 11, 2004 Page 3 of 5 certain conditions are met such as the City being paid with any of the funds the developer receives from the Peabody Essex Museum for the clean-up of the oil. Mr. Vickers asked if the agreement would supercede the closing. Mr. Walsh stated that the agreement would be part of the closing. Mr. Vickers asked if they are confident that everything can be resolved. Mr. Walsh stated that Attorney Quinn is confident that they can ease all concerns and the loan will be paid back either right away, when the PEM funds are received, or when the last 4 units are sold. Mr. Vickers asked if there will be a delay in the closing. Mr. Walsh stated that any delay will not be because of the City. Mr. Vickers asked about City Solicitor Keenan handling the agreement. Mr. Walsh stated that Attorney Quinn works on all of the City of Salem business loans. Mr. Vickers asked if there are any other changes to the LDA. Mr. Walsh stated that there are no changes to the LDA. Mr. Brennan asked if the developers will be able to build under a building permit issued to the SRA. Mr. Walsh stated that they will be able to because they will be acting as agents of the SRA. Mr. Brennan asked if the closing date deadline needs to be extended. Mr. Walsh stated that he has not received a request from the developer to extend the date. Mr. Vickers asked if they should do it just to be safe. Mr. Walsh stated that he will take direction from the board on that matter. Mr. Brennan asked what will happen if the deadline is not met. Mr. Curran stated that Heritage Plaza LLC will no longer be the designated developer, but that may not be the best thing. Mr. Walsh stated that an extension takes a vote of the board to extend the date, but they do not need to because there was no request. Mr. Brennan and Mr. Connelly agreed that they should err on the side of caution. Mr. Vickers stated that he spoke with representatives at Citizen’s Bank and they were not sure if the closing would happen before Friday. Mr. Brennan asked if the board received a letter stating that the site is clean. Ms. Hartford stated that they have a letter from the developer, but not from Webb, their engineer. Mr. Vickers motioned to extend the closing date deadline from February 15, 2004 to February 20, 2004. Mr. Baldini seconded the motion. Motion passed (5-0). DEVELOPMENT PROJECTS Design Review Board Recommendations 5. Salem Five Bank (One Salem Green)—Approval of the Design Review Board recommendation for the final design of the development of a two-level pedestrian bridge connecting buildings located at One Salem Green and Essex Street. SRA Minutes February 11, 2004 Page 4 of 5 Mr. Walsh introduced the final design of the project, which had been recommended for approval by the Design Review Board. Attorney George Atkins addressed the board and stated that the Planning Board had given approval to the project last Thursday. Attorney Atkins stated that additional documents were submitted, including a construction management plan and a letter addressing a change in drainage. The letter, from the engineer, addresses the change in drainage pipe size. The Construction Management Plan describes methods of construction and staging for the project. Attorney Atkins described the plan for blocking off the parking area where the bridge will be erected. He stated that for the most part, the only parking that will be blocked off will be the parking that is reserved for Salem Five employees. The metered spaces will be accessible for use during the construction phase. Attorney Atkins stated that the construction stage is fairly short and temporary signs, as procured by the Planning Board, will direct pedestrians around the construction site to Essex Street. Attorney Atkins stated that they would like final approval tonight and they will start construction this spring. Mr. Baldini motioned to approve DRB recommendation for the final design of the project. Mr. Connelly seconded the motion. Motion passed (5-0). Project Introduction 6. 10 Federal Street—Schematic Design Review of Concept Plans for the redevelopment of 10 Federal Street (former New England Telephone Building). Attorney Atkins introduced the project at 10 Federal Street and stated that this is the project which Mr. Walsh mentioned in his report. Attorney Atkins explained the proposal to construct three additional floors on top of the existing building at 10 Federal, which currently has two floors. Attorney Atkins stated that the location is a strategic one that links the courts, Jefferson at Salem Station, and the Jail. The building currently has approximately 55,000 square feet of space and the owner has rented approximately half of the space. Attorney Atkins stated that approximately fifty jobs have been created with this space. Attorney Atkins stated that the goal of the proposal is to construct first class modern office space, of which the anticipated user would use more than one floor of the building. Attorney Atkins explained that those who built the Telephone Company’s building had additional plans for the building that could be done in the future to expand the building. The building was built with structures in place to handle additional floors on top of the existing two. Attorney Atkins apologized for the rapid pace of the project, but explained that the owners of the building would like to compete for renting the space to a user that will need space in the near future. Attorney Atkins stated that there are 85 parking spaces on the site and they would like to do more parking onsite if possible or coordinate with the City’s future plans for the Almy’s lot. Attorney Atkins stated that the project does not require any relief from the Zoning Board of Appeals, but they will trigger Site Plan Review by the Planning Board. Attorney Atkins requested that the project be referred to the Design Review Board for conceptual review, at which time they will provide a full set of elevations for review. Attorney Atkins stated that they will then continue to the Planning Board process. SRA Minutes February 11, 2004 Page 5 of 5 Mr. Baldini inquired as to the age of the original structure. Attorney Atkins stated that the structure was built in 1956. Mr. Brennan inquired as to whether there is a minimum parking requirement. Attorney Atkins stated that the B5 zone does not require any parking on the site, but they would like to provide adequate parking on the site and off-site on the Almy’s lot. Mr. Brennan asked Attorney Atkins to comment on the additional decks on the Almy’s lot. Attorney Atkins stated that the City has been looking at the possibility of constructing additional decks on the existing parking garage, if profitable, but the project at 10 Federal Street will not rely on the possibility. They are currently looking at alternatives for parking. Attorney Atkins stated that one of the potential users is currently using public parking spaces. Mr. Vickers asked about the expected timeline for permitting. Attorney Atkins stated that the timing depends on the interaction with each board, but the timing is expected to be at least three months. Mr. Vickers inquired as to whether the engineering of the project will be done parallel with the permitting process, so as to allow the owner to receive a building permit at the completion of permitting. Attorney Atkins stated that with the SRA being the last stop in the permitting process, they should be to that point when permitting is complete. Mr. Connelly asked Attorney Atkins about the possibility of Heritage Bank locating on the site. Attorney Atkins stated that Heritage Bank is not interested in the site, but the status could change. Mr. Curran stated that the Church across the street from the site may be closing, and if so, parking could be located on that site. Mr. Vickers motioned to refer the project to the Design Review Board for design review of the conceptual plans for 10 Federal Street. Mr. Brennan seconded. Motion passed (5-0). Mr. Curran asked Ms. Hartford about the status of the Jail. Ms. Hartford stated that the Jail is still in the Committee in the Council. There being no further business, Mr. Connelly motioned to adjourn the meeting. Mr. Baldini seconded the motion. Motion passed (5-0). Meeting stands adjourned. Respectfully submitted, Valerie Gingrich Clerk