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2003-08-13 SRA MinutesPage 1 of 6 MINUTES OF THE BOARD MEETING OF THE SALEM REDEVELOPMENT AUTHORITY HELD ON AUGUST 13, 2003 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, August 13, 2003 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. Vickers motioned to approve the minutes from the July 9, 2003 meeting. Mr. Brennan seconded the motion. Motion passed (5-0). Old Business 1. Town House Square Condominium Project The SRA received a letter from Mr. David Pabich, Manager of Salem Renewal, LLC, regarding the replacement of existing copper flashing on the Town House Square Building (99 Washington Street). The flashing was found below the second floor windows on the facade facing the Town House Square fountain during the renovation process. Mr. Vickers motioned to approve the replacement of the copper flashing. Mr. Connelly seconded the motion. Motion passed (5-0). 2. Peabody Essex Museum (PEM)—Marine Arts Gallery Wall Several pieces of correspondence regarding the Marine Arts Gallery Wall were distributed to the board members. • The first letter, dated July 1, 2003 from Mr. William Phippen of the PEM to the SRA responded to the SRA’s letter regarding the screening of the Marine Arts Gallery Wall. The letter stated that the PEM screened the wall and submitted plans for review, therefore, “the Museum no legal or other obligation” regarding the wall. • The second letter was from Mr. Kiernan of the Marine Arts Gallery to Mr. William Phippen of the PEM giving the Museum permission to proceed with bricking the exposed wall. Mr. Curran commented that the letter from Mr. Phippen is not accurate, and he inquired as to whether the PEM came before the Design Review Board (DRB). Mr. Walsh stated that the PEM did come before the DRB and the Board rejected their proposal because they did not believe that it was a satisfactory solution. Mr. Walsh stated that the PEM was arguing that all they needed to do was to submit plans to the DRB, but as Mr. Walsh explained, they must also abide by the decision of Page 2 of 6 the Board. Mr. Walsh went on to explain that the SRA’s decision is coupled with the decision of the Planning Board, and that the boards enforce each others decision. Mr. Walsh stated that the PEM does not plan to do anything else on the matter and that it will remain a stalemate until the SRA does something about it. Mr. Brennan requested that Mr. Walsh consult the City Solicitor on the matter and that he provide the board with a legal opinion after which they will go to court if need be. Mr. Curran agreed and requested that a letter be sent to the Museum stating that their response is not adequate. Mr. Walsh stated that the SRA is the sole discretionary body in the Urban Renewal Area, and that all decisions by the SRA will be upheld. 3. Peabody Essex Museum—Walkway Noncompliance Mr. Walsh referred to the Planning Board Site Plan Review Notice of Non-Compliance and the Site Plan Review Decision that the members of the Board had previously received. Mr. Walsh stated that there will be a similar letter going out from the SRA regarding the walkway noncompliance. Mr. Walsh distinguished between the three separate but corresponding decisions regarding the walkway; that of the City Council, the Planning Board, and the SRA. Mr. Walsh also addressed the issue of the Museum referring to an end date to the access to the exterior walkway, which according to the Planning Board decision has no end date and shall remain open indefinitely. 4. Old Police Station Update Mr. Walsh addressed the Board, referring to the correspondence from the developer, stating that the source of the contamination is up-stream from the Old Police Station, and the developer has agreed to pursue relief from the contaminator. In an effort to get the project moving, the developer has requested that the SRA give a loan of $125,000 (the purchase amount) for a two-year period, while the developer pursues the party responsible for the remediation of the oil on the site. Mr. Walsh stated that the request for loan funds is later on the agenda, but will discuss the item now, if the Chair approves. Mr. Curran asked Mr. Walsh to proceed with the discussion of the loan request. 5. Old Police Station Redevelopment – Loan Request (Central Street)—Request for a Letter of Commitment for a loan for site remediation work. Mr. Brennan asked Mr. Walsh what would happen if the process of pursuing the party responsible for the contamination lasts longer than two years. Mr. Walsh stated that the developer, no matter what, would have to repay the loan in two years. Mr. Brennan inquired about what would happen if the loan is not repaid. Mr. Walsh stated that the collateral in this case is the building and the SRA retains the right, at any point, to revoke the designation. Mr. Curran stated that the SRA will always have collateral because the SRA has the second mortgage and must signoff on the sale of each unit. Mr. Brennan inquired as to when the two-year period would begin. Mr. Curran replied that the two years would begin when the SRA and the developer exchange checks. Mr. Walsh explained that the developer would assume the responsibilities of cleaning up the site and pursuing the party responsible when the payment is made, and then the payment will be loaned back to the developer to pay for the cleanup. Mr. Walsh stated that by doing this the project starts moving. Mr. Brennan motioned to offer the developer of the Old Police Station a loan of $125,000, subject to the conditions stated above and SRA review. Mr. Vickers seconded the motion. Motion passed (5-0). 6. Loan Collection Update Page 3 of 6 • Tinti, Quinn, Grover & Frey, P.C. Report Mr. Walsh stated that the SRA entered into an agreement with Tinti, Quinn, Grover & Frey, P.C. for a determination of whether the loans issued by the SRA that are currently in default are collectible. Mr. Walsh referred to a report on five of the seven loans, which stated that all of the loans are deemed uncollectible and should be written off. Since that report, a determination was also made for the sixth loan, Minnie Frisch, and it was deemed also uncollectible, and therefore should be written off. • Attorney Robert Munroe Report Mr. Walsh stated that it has been determined that the loan issued to Arthur and Polly Ingemi may be collectible. Mr. Walsh explained that Tinti, Quinn, Grover & Frey, P.C. referred the SRA to attorney Bob Munroe due to a conflict of interest. Mr. Munroe was the subject of a City Council conversation last week and to make it perfectly clear of Mr. Munroe’s status, Mr. Walsh recommended that the SRA directly retain Mr. Munroe’s services. Secondly, if the Board chooses to retain Mr. Munroe’s services, he will be making court filings and therefore charges will incur. However, Mr. Monroe is confident about the outcome and the charges will be paid through the collection process. The collection is expected to result in a net gain for the SRA. Mr. Brennan motioned to retain the services of Robert Munroe to follow through with the collection. Mr. Connelly seconded the motion. Motion passed (5-0). New Business 1. Executive Director’s Report Mr. Walsh, Executive Director, commented that seeing as he is providing updates throughout this meeting he will not provide an official report. URBAN RENEWAL AREA PROJECTS 2. Salem Market Place Redevelopment – Concept Plan (Front/New Derby Streets)— Presentation of the Conceptual Plans for the redevelopment of the Salem Market Place. Mr. Walsh explained that the Department of Planning & Community Development and the SRA was asked to look specifically at the Redevelopment of the Market Place by order of City Council President Thomas Furey. At the same time, the owner of the old Salem Evening News Building was ready to redevelop his building, but wanted to know what would be done with the Market Place. The SRA retained the design services of Winter Street Architects who took on the task of putting together a conceptual plan for the entire block. Mr. Walsh provided some background on the project, stating that a group of students from the University of Miami took on the task of redeveloping the Market Place a while back. The three rules given to the students were: the Market Place must retain a vibrant retail center; the corner of the SEN building at Front and Washington must remain intact; and there had to be an active public space incorporated into the Plan. The students spurred new ideas and opened doors to thinking about developing the entire block. The ideas that flowed out of the proposals by the students were Page 4 of 6 given to Winter Street Architects to work with to create a Conceptual Plan. Winter Street Architects, Mr. Paul Durand and Mr. Mark Meche, did a great amount of pro bono work, and staff members, Kelly Foster and Dick Francis, did the bulk of the work and deserve great thanks. Mr. Walsh stated that at this point, it is a Conceptual Plan, and there will be several more idea sessions before moving forward. The proposal consists of better traffic flow, with one-way driving, improved pedestrian areas, Old Town Hall as a focal point, vibrant retail on the first floor, and below ground parking. If the entire block was redeveloped, and everyone worked together, a deck of parking could be located below ground level under the entire block, which would create 160 spaces. Mr. Walsh explained that no more than one level would be possible because the South River is too close. Lastly, the SRA owns a parcel on the corner of Front and Lafayette, and could choose to develop the parcel with deck parking. Mr. Walsh explained that if the SRA endorses the Concept, we would simply be telling developers that this is the type of development that we are looking for. The Board members agreed that the redevelopment would be great for the City and the Market Place Area. Mr. Vickers asked Mr. Walsh whether the upper levels of the redeveloped Salem Evening News building would be residential units. Mr. Walsh replied that the developer of that building is still determining what would work on the upper levels, but they are considering residential. Mr. Baldini motioned to approve the Conceptual Plan for the Redevelopment of the Salem Market Place Area. Mr. Brennan seconded the motion. Motion passed (5-0). 3. Derby Square Design Competition Mr. Walsh asked the Board to sponsor a design competition to redesign Derby Square as a first phase of revitalizing the area. Mr. Walsh stated that the square in its current state is underutilized and is wasted space that can be redesigned to be made useful. He stated that some of the ideas that have already been stated are to extend the tree line from the Market Place and create more of a green space, or to create a common cafe area. Mr. Curran commented that the SRA does not have a tremendous amount of excess funds to pay for a contest. Mr. Walsh replied that the SRA would have to issue some kind of price in order to buy the design and own it, but the price would not have to be more than $1,000 or even $500. Mr. Walsh stated that the actual construction of redesigning the square would obviously be much more, and that he and the Mayor have been talking about applying for a Community Development Action Grant, which could be used to pay for the construction. Mr. Brennan motioned to sponsor a design competition to redesign Derby Square. Mr. Connelly seconded the motion. Motion passed (5-0). DEVELOPMENT PROJECTS 4. Lawrence Place (143 Washington/32 Front Street)—Consideration of the DRB recommendation of the final submission for the redevelopment of a mixed-use development on the corner of Washington and Front Streets in the former Bleachers Building. Page 5 of 6 Ms. Hartford addressed the Board and stated that the DRB has reviewed the project has recommended the project for approval. A letter was sent to the SRA from the applicant regarding dumpsters being placed on Front Street and Derby Square during demolition. An additional letter was sent from the applicant asking for permission to start demolition prior to receiving final approval, and Ms. Hartford informed the Board that the applicant was given that permission. Ms. Hartford also referred to two letters that had been sent to the SRA, one from the Planning Board and one from the Main Streets Program. Both letters expressed conce rn regarding the project’s proposed first floor use at Derby Square, and asked the Board to consider requiring retail on the first floor. The applicant, Mr. David Pabich, described the changes to the Plan, which included additional skylights, an increase in the number of units from eight to ten, and the first floor use of office/studio space. Mr. Curran asked if the DRB approved the plan as submitted, and Mr. Hartford replied that they had. Mr. Pabich also explained that the increase in the number of units was due to the request of the Planning Board to make the first floor at Derby Square office/studio space. The increase in number of units will help cover the burden of the office/studio requirement. Mr. Brennan motioned to give final approval to the project as submitted. Mr. Vickers seconded the motion. Motion passed (5-0). Mr. Walsh asked that applicant for an update on the construction schedule for the project. Mr. Pabich stated that they expect the large dumpsters to be on site for three more weeks at which time the major demolition should be complete. The dumpsters will be located on Front Street and Derby Square, and will be removed for Alive after Five events on Thursdays. A smaller dumpster will be located on Front Street for the duration of the project. Framing should take another month and the entire project should take one year. Mr. Pabich stated that they will be sensitive to dust and noise. Mr. Brennan asked where the smaller dumpster would be located for the duration of the project, and Mr. Pabich replied that it will be located in the loading zone on Front Street. Mr. Baldini motioned to permit the applicant to keep the dumpsters on site as stated. Mr. Brennan seconded the motion. Motion passed (5-0). DEIGN REVIEW BOARD RECOMMENDATIONS 5. Edgewater Cafe (155 Washington Street)—Consideration of DRB recommendation for additional signage along Front and Washington Streets. At their July 23, 2003 meeting, the DRB recommended approval of the sign package, which includes two 10” x 12’ signs that read “Edgewater Cafe” in the signboards, two 3.8’ x 13’ signs that read “Authentic Mexican” in the panels above the windows, and two 1.25’ x 5’ address/phone/website identification signs in the windows, with the condition that the spacing on the address sign is half what is proposed. All signs will be made with vinyl lettering and will be located along Front and Washington Streets. Mr. Connelly motioned to accept the DRB recommendation to approve the proposed signage. Mr. Brennan seconded the motion. Motion passed (5-0). Page 6 of 6 6. Edgewater Cafe (155 Washington Street)—Consideration of DRB recommendation for proposed outdoor cafe amendment. At their July 23, 2003 meeting, the DRB recommended approval of the amendment of the original cafe permit including using two 8-foot umbrellas that sit inside planters and a white chain attached to four planter bollards that cordon off the cafe, with the condition that the DRB has the right to review and change the white chain. Mr. Vickers motioned to accept the DRB recommendation to approve the cafe amendment with the condition that the DRB can review the white chain in the following 60 days. Mr. Brennan seconded the motion. Motion passed (5-0). 7. Victory Chapel (60 Washington Street)—Consideration of DRB recommendation for proposed sign. At their July 23, 2003 meeting, the DRB recommended approval of the proposed signage, which includes one 16” x 8’ wall sign with white letters and a black background in the existing sign band along Washington Street. The sign will be made from PVC material and will conform to the other signs within the same building. Mr. Vickers motioned to accept the DRB recommendation to approve the proposed signage. Mr. Brennan seconded the motion. Motion passed (5-0). OTHER BUSINESS 8. Salem YMCA (One Seawall Street)—Renovation of YMCA playground. Ms. Hartford informed the board that the Salem YMCA would like to renovate their playground located adjacent to their building on Seawall Street. They would like to replace the equipme nt with stationary equipment, replace the pea stone with a poured rubberized surface, and take down the “no trespassing” signs. At this time, they are not replacing the chain link fence, but will keep us informed when and if they do. Mr. Brennan motioned to approve the renovation of the YMCA playground. Mr. Connelly seconded the motion. Motion passed (5-0). There being no further business, Mr. Baldini motioned to adjourn the meeting. Mr. Brennan seconded the motion. Motion passed (5-0). Meeting stands adjourned. Respectfully submitted, Valerie Gingrich Department of Planning & Community Development