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2003-11-12 SRA MinutesSRA Minutes November 12, 2003 Page 1 of 6 MINUTES OF THE BOARD MEETING OF THE SALEM REDEVELOPMENT AUTHORITY HELD ON NOVEMBER 12, 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, November 12, 2003 at 6:00pm. Chairman Robert Curran called the meeting to order and on roll call, the following members were present: 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 October 8, 2003 Regular Meeting and from the Annual Meeting held on October 8, 2003. Mr. Vickers seconded the motion. Motion passed (3-0). Mr. Brennan abstained from the vote. New Business 1. Executive Director’s Report Mr. Walsh, Executive Director, stated that in lieu of a formal report, he would address issues at the beginning of each presentation. He also commented that a newspaper article regarding the contamination at the Old Police Station site was included in the Board Members’ packets. The Peabody Essex Museum is currently cooperating with the developers by doing test borings on their property. The Executive Director assured the Board that he would pass any additional information on to them as it is received. DEVELOPMENT PROJECTS Continued Project Review 2. Salem Five (One Salem Green)—Schematic review of Concept Plans for the proposed sky bridge between One Salem Green and 210 Essex Street. Attorney George Atkins presented the Concept Plans for a proposed sky bridge between One Salem Green and 210 Essex Street, both of which are occupied by the Salem Five Cents Saving Bank. Mr. Mark Meche, of Winter Street Architects, presented the architectural design of the Concept Plans, stating that the bridge would be a link between the historic 210 Essex Street building and the more contemporary One Salem Green. Mr. Meche stated that the proposed bridge is a curtain wall system with a steel roof. Mr. Vickers asked if the structure would be supported from each side. Mr. Meche responded that they have found that a pair of columns will be necessary to add additional support. SRA Minutes November 12, 2003 Page 2 of 6 Mr. Brennan motioned to approve the concept of a pedestrian bridge. Mr. Connelly seconded the motion. Motion passed (4-0). Project Introduction 3. Digital Bungalow (231 Essex Street)—Schematic Design Review of Concept Plans for a proposed fire escape in the alley adjacent to the building. Ms. Hartford introduced the applicant, Mr. Chris Christoudias, and he presented the concept plans for a fire escape. The proposed fire escape would be located in the alley (Follet’s Way), which is adjacent to the building. Mr. Christoudias stated that the fire escape is needed as the second means of egress from the second floor. The fire escape would also allow the applicant to potentially rebuild the interior center staircase that was removed in the rehabilitation. Mr. Brennan inquired as to how the applicant gets into the building currently. Mr. Christoudias replied that there is a stairway that leads to Washington Street, and the elevator is currently the second means of egress. However, the elevator is not an allowed second means of egress. Mr. Curran asked about the status of the alley. Mr. Walsh replied that the ownership of the alley is being investigated, but it is certainly a public way belonging to either the SRA or the City. Mr. Curran inquired as to whether the structure would be permanent. Mr. Christoudias responded that it would be permanent. Mr. Brennan asked if vehicles use the alley. Mr. Christoudias stated that it is currently used by the first floor tenants for parking. Mr. Brennan asked Mr. Walsh if the proposed structure would require an easement. Mr. Walsh replied that he believed so, and would look into the matter in more detail if the concept of the proposal is approved by the Board. Mr. Brennan motioned to approve the concept plans for the fire escape and allow the applicant to submit the final design plans. Mr. Vickers seconded the motion. Motion passed (4-0). REDEVELOPMENT AUTHORITY PROJECTS 4. 18 Crombie Street—Authorization of the Authority to enter into a Cooperation Agreement with the City of Salem and Holyoke Insurance to acquire ownership of the property at 18 Crombie Street for the purpose of rehabilitation. Mr. Walsh stated that the Cooperation Agreement (attached) has been approved by the City Council and the Mayor. The three -part Cooperation Agreement includes Holyoke Insurance transferring the deed to 18 Crombie to the SRA for $1; the City granting an easement for 13 spaces of surface parking to the SRA; and the SRA then granting the easement for surface parking to Holyoke Insurance for parking between the hours of 7:30AM and 5:30PM. Mr. Walsh explained that the parking area would only be an easement, and the City would therefore maintain the area. Mr. Brennan asked if the easement would be a perpetual easement. Mr. Walsh stated that it would be perpetual, but the SRA has the authority over the easement in the future. Mr. Vickers inquired as to whether the easement would grant Holyoke Insurance the exclusive right to park in the area. Mr. Walsh stated that it does grant the exclusive right between the designated hours. Mr. Vickers then asked if the entire parcel [18 Crombie] would be handed over to the SRA, SRA Minutes November 12, 2003 Page 3 of 6 or just the footprint of the building. Mr. Walsh stated that the entire parcel, originally purchased by Holyoke Insurance (which contains the building and the backyard) would be transferred to the SRA. Mr. Connelly inquired as to who would control disputes over the parking area. Mr. Walsh stated that the agreement is silent as to enforcement and the responsibility of enforcement would fall back on the City. Mr. Walsh read the resolution, “The proposed agreement will preserve the historic character of the Crombie Street neighborhood and is otherwise in the best interests of the SRA’s Heritage Plaza West Urban Renewal Plan; wherefore, the Members of the Salem Redevelopment Authority hereby authorize the Chairman to execute and otherwise carry out the said agreement on behalf of the SRA, specifically including, without limitation, the grant to Holyoke Square, Inc., for the benefit and use of the said corporation and its clientele, of an perpetual and exclusive easement to park cars along the Holyoke Square side of said Norman Street and Holyoke Square, as appearing on Exhibit B to the aforementioned agreement.” Mr. Vickers motioned to adopt the resolution. Mr. Connelly seconded the motion. Motion passed (4-0). Mr. Curran signed the documents for 18 Crombie Street and Ms. Gingrich signed the resolution attesting to the adoption. 5. 18 Crombie Street—Authorization of the Authority to issue a Request for Proposals (RFP) for the solicitation of developers to undertake the rehabilitation of 18 Crombie Street for affordable housing. Mr. Walsh stated that the draft RFP for the redevelopment of 18 Crombie Street has five key elements, which include: it be redeveloped for a low or moderate income family; a preference for “sweat equity” to be put into the redevelopment; bids be returned in 30 days; the SRA will select the developer in January or February of 2004; and the redevelopment take place in 12 months. Mr. Vickers asked if the developer would be redeveloping the site for the SRA or for their benefit. Mr. Walsh replied that the deed would be turned over to the developer, but it would contain historic preservation and affordable restrictions. Mr. Brennan inquired as to whether an appraisal will be done. Mr. Walsh stated that an appraisal has already been completed. Mr. Brennan then asked if there will be a minimum bid when the RFP is released. Mr. Walsh replied that the sale price would be $1 so as to give an incentive to provide affordable housing and undertake the significant historic preservation work. Mr. Brennan inquired as to whether it would only go to a nonprofit organization. Mr. Walsh responded th at it could actually go to a family who is willing to put sweat equity into the redevelopment. However, it may be too much for an individual or a family because of the historic preservation requirements, so the preference will be to organizations that specialize in these types of projects, such as Habitat for Humanity. Mr. Walsh also stated that if an individual were to buy the house, they would also be bound by the affordable restrictions. Mr. Vickers inquired as to the test for affordability. Mr. Walsh explained that it is based on income and HUD defines moderate income as 80% of median income, and low income as 50% of median income. SRA Minutes November 12, 2003 Page 4 of 6 Mr. Brennan inquired as to whether the SRA retains the right to accept or reject an offer. Mr. Walsh affirmed this and stated that the SRA would be choosing a developer around January or February of next year. Mr. Vickers questioned the choice of affordable housing instead of using the market. Mr. Walsh replied that it is a rare opportunity to be able to offer a public good such as affordable housing when the housing market is extremely tough. The City’s position is that if we are going to sell our public land, we should see to it that the development is affordable. The parcel will be sold for a public purpose and it will have public benefits including affordable housing and historic preservation. Mr. Vickers questioned what method the developer would use to transfer the parcel. Mr. Walsh stated that the City has housing programs that use waiting lists. Mr. Walsh explained that other communities use lotteries. However, the method of choosing the owner, in this case, will depend on the specific organization or individual who redevelops the parcel. Mr. Vickers commented that the RFP should discuss methods of how to transfer the house to the owner. Mr. Walsh confirmed that it would. Mr. Curran asked if there is an estimate for the redevelopment. Mr. Walsh replied that the cost of redeveloping the site is estimated at $100,000. Mr. Curran asked about how the SRA will be insured as far as liability. Mr. Walsh stated that the property will be added to the City’s insurance policy, which contains other historic buildings and the SRA will have to pay a premium. Mr. Brennan commented that the SRA should be insured for loss and liability. Mr. Brennan motioned to authorize a draft RFP for the Board’s review. Mr. Vickers seconded the motion. Motion passed (4-0). The Board authorized Mr. Walsh to circulate the draft prior to the next regularly scheduled meeting to expedite the process. 6. Old Salem Jail—Request to the Mayor and to the City Council to enter into a Cooperation Agreement with the Authority to acquire ownership of the Old Salem Jail for the purpose of expediting its redevelopment for an active reuse. Mr. Walsh stated that in light of the SRA’s recent success with 18 Crombie and the Old Police Station, the Mayor has asked that the SRA make a request to the City Council to enter into a Cooperation Agreement to acquire ownership of another challenging historic property: the Old Salem Jail. The SRA would have a lot more flexibility in negotiating the redevelopment of the parcel than the City would. The SRA would be able to put out a Request for Qualifications (RFQ) to see who is qualified to take on the redevelopment, and then the SRA would be able to ask for proposals from those most qualified. Mr. Curran commented that the Jail includes the Jailer Keeper’s house as well as the Jail. Mr. Walsh added that the barn is also included in the site. All three pieces would be part of the redevelopment. SRA Minutes November 12, 2003 Page 5 of 6 Mr. Vickers inquired as to whether any restrictions were put on the use of the Old Police Station when it was transferred to the SRA. Mr. Walsh stated that the City Council put on a series of restrictions such as keeping the weathervane and asking the SRA to be quick in the redevelopment. Mr. Brennan asked if the jail is protected due to its historic aspects. Mr. Walsh responded that it is protected, which make the redevelopment more complex. Mr. Brennan then asked if both structures have to remain. Mr. Walsh replied that the City, as the owner of the parcel, has said that the barn could be demolished, but the jail and jail keeper’s house would be redeveloped, and if necessary infill would be allowed. Also, the City would entertain the demolition of some of the more recent additions to the jail. However, should the City transfer the parcel to the SRA, it would be the Board’s discussion as to what would be required to stay. Mr. Brennan motioned to make a request to the Mayor and City Council to enter into an agreement to acquire ownership of the Old Salem Jail. Mr. Connelly seconded the motion. Motion passed (4-0). DEVELOPMENT PROJECTS (continued) 7. Timothy Orne House/Former Bowman’s Bakery (266 Essex Street)—Review of proposed change in paint colors for exterior of building. Mr. Walsh summarized that the project had received approval for beige and requested to alter the approved color. The DRB members were provided with a sample of the colors via mail and three of the four members recommended approval of the change in paint colors to Sagebrook Sage and Navajo White (the fourth member did not reply). Mr. Connelly motioned to accept the DRB recommendation to approve the change in paint colors for the exterior of the building. Mr. Vickers seconded the motion. Motion passed (4-0). DEIGN REVIEW BOARD RECOMMENDATIONS 8. Soular Books (Derby Street)—Consideration of DRB recommendation for proposed sign. Ms. Hartford summarized the changes made to the application through the process. The revised proposed signage includes one (1) 24” x 96” wall sign. The sign will be ¼ alumalite with purple scotchprint graphic lettering and a white background with white snaptrim edging. Mr. Vickers motioned to accept the DRB recommendation to approve the proposed signage. Mr. Brennan seconded the motion. Motion passed (4-0). There being no further business, Mr. Connelly motioned to adjourn the meeting. Mr. Vickers seconded the motion. Motion passed (4-0). Meeting stands adjourned. Respectfully submitted, SRA Minutes November 12, 2003 Page 6 of 6 Valerie Gingrich Clerk