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HomeMy Public PortalAboutSelect Board -- 2021-07-23 Minutes ��e����a�ummi�A�ubp,�,•, ,._ :.Nei `NNNNNN.\O` "E�„DEge � %,. Town of Brewster Office of: Select Board 2198 Main Street i Town Administrator Brewster, MA 02631 - 1898 , ' Phone : (508) 896 =3701 I Fax : ( 508) 896-8089 NJ MINUTES OF THE SELECT BOARD EXECUTIVE SESSION MINUTES DATE . July 23, 2021 TIME : 3 : 30 PM PLACE : 2198 Main Street & Remote Participation ALL PARTICIPANTS ARE PARTICIPATING REMOTELY : Chair Bingham , Selectperson Whitney, Selectperson Chaffee , Selectperson Chatelain , Selectperson Hoffmann , Town Administrator Peter Lombardi , Assistant Town Administrator Donna Kalinick Call to Order & Declaration of a Quorum Meeting Participation Statement and Recording Statement Chair Bingham called the meeting to order at 3 : 30pm , conducted a roll call vote of attendance, declared a quorum present, and read the meeting participation and recording statements . Matters Not Reasonably Anticipated by the Chair None . Executive Sessions To consider the purchase , exchange, lease or value of real property if the chair declares that an open meeting may have a detrimental effect on negotiating position of the public body . Chair Bingham stated that the Select Board will enter executive session . Selectperson Hoffmann moved to enter executive session . Selectperson Whitney second . A roll call vote was taken . Selectperson Hoffmann - yes, Selectperson Chaffee - yes , Selectperson Whitney- yes, Selectperson Chatelain , Chair Bingham -yes . The Board vote was 5 -Yes , 0- No . The Select Board entered executive session . Selectperson Chatelain who participated remotely recited the following statement " No other person is present or able to hear the discussion at this remote location . " Mr . Lombardi provided a recap of a conversation he had earlier in the day with Mr . Fleet, who called unannounced around 11am . Here are the highlights of the conversation provided by Mr . Lombardi . • The Board of Directors and/or the family ( not exactly sure who ) is concerned about the Town making any public statement, particularly any references to eminent domain . • Mr . Fleet stated that if the Town was willing to increase its combined offers to $ 32M they would be able to negotiate a sale . • Didn' t realize the Board was going to discuss the Cape Cod Sea Camps at the Monday meeting, he requested a copy of the agenda , Mr. Lombardi advised it was in the public domain . • Significantly more upset, as Mr . Fleet thought the Town would wait another 2 weeks until they had a response . • Mr. Lombardi advised Mr . Fleet that he relayed their conversation from Tuesday to the Select Board and they are inclined to make a public statement . Noting that the Town remained interested in a BoS 7 - 23 - 2021 www . brewster- ma . gov Page 1 of 5 Doc ID : 58a4bOad8d95105d41109a5fbd7325ed99530e77 o`� ,oF'E�oE:;°a9�. Town of Brewster Office of: = t;aQ �i Select Board 2198 Main Street 3 P � A a = Town Administrator o Brewster, MA 02631= 1898 Phone : (508) 896-3701 "#4 its Fax : (508) 896-8089 V pea, 061 negotiated sale , as we have throughout the process, not looking to move forward with eminent domain right out of the gate as it is not in the best interest of both sides . • Mr . Fleet essentially said if the Town were to go public and raise the specter of eminent domain , his words were that it was a threat, offensive and a mistake . ( Mr. Lombardi noted as soon as this is public their process is turned upside down with other potential buyers ) . • Mr . Fleet started to go into some scenarios with other developers and talking about bids on the table that are higher than ours and referenced that there are wealthy individuals who have submitted a bid on the property who want to have it as a family compound and wouldn 't require permitting or the Town ' s approval . • Mr . Lombardi advised Mr . Fleet we are aware of all of this, which made Mr . Fleet even more upset as he didn' t think we had as much information on other buyers as we do . This was overstated to Mr . Fleet, not saying we have all the information , but we are aware who the developers are and the interested private party . ( Doesn ' t believe there is more than one ) . • Mr. Lombardi made it clear that the Town is interested in negotiating, this has been stated privately and will be made public because we mean it . • Mr . Lombardi asked if they were willing to negotiate, the response was yes, if the Town doesn ' t put eminent domain out there and if we meet at the $ 32M price . Doesn ' t seem to be negotiating . Mr . Lombardi advised he would speak with the Select Board and get back in touch with Mr . Fleet as soon as possible . Mr . Fleet will be going on vacation, and we can speak with Heather if we are unable to reach him . Mr . Lombardi shared his initial thoughts on the conversation , the Town continues to seek a negotiated sale ( will be in both the presentation and the press release ) , however if we put out the bid amounts it could box them in as well as us more importantly . This is essentially saying we are moving forward with a taking . In speaking with Hal Minis with the Brewster Conservation Trust, the President of Mass Audubon relayed at a high level that based on their experience they think the Town is taking a thoughtful and strong strategy on the situation . Selectperson Whitney expressed that this is good news for the Town , we know that if we go the eminent domain route chances are that we would be paying considerably more than our initial offer amount . The fact that they are willing to negotiate is good news and what we wanted to hear, their $ 32M request is ridiculous, as there was an article that stated the Hale Foundation ' s bid for the Bay Parcel was based on a $ 9- $ 13M appraisal . What the Board needs to decide now is if we counter and how we handle Monday' s meeting . Selectperson Whitney noted that eminent domain was a deal breaker for them , but what about any other information the Board may share ? Mr . Lombardi stated they were not clear, he had asked a couple of different ways, but Mr. Fleet kept coming back to eminent domain and stated that if the Town suggests this route, they will " dig in " and not negotiate with the Town and will fight us . Selectperson Chatelain congratulated the Board on the progress made so far, is impressed to the extent that a municipality has maneuvered themselves into a position where we know more about the private sector BoS 7 - 23 - 2021 www . brewster- ma . gov Page 2 of 5 Doc ID : 58a4bOad8d95105d41109a5fbd7325ed99530e77 \\ `\`Olep�II lc !. f: ��� o� � F �� oER�e9��. 9 Town of Brewster ofce dke �411144ELLSelect Board 2198 Main Street N Town Administrator O ,, Brewster, MA 02631 - 1898 Phone : ( 508) 896- 3701 T A�I� Fax : ( 508) 896- 8089 'PPOnp At 11/l a /rIIR(lllllllll\ \\,\ than the private sector knows about the Town ' s position . He stated that the threats about eminent domain are to be expected . As far as a counteroffer, Selectperson Chatelain believes our offer number is reinforced and doesn ' t want to be in a position to say to taxpayers that we negotiated far above our estimated value . The seller' s counter is good information for us, as it gives us a ceiling of what the Town would pay if we went to litigation . Suggests that we should stay with the plan , go public and do not contact the sellers in the meantime and let this play out . We should not include details of our bid amounts in public statements if we have indicated that we intend to continue to negotiate . Selectperson Chaffee stated that she doesn ' t see this as good information , she assessed the conversation as the sellers have received a commercial developer' s bid in the mid to high $ 20M and are attempting to extort $ 32M out of the Town of Brewster . Adding that the sellers gave an ultimatum , a number without the room to negotiate, although we certainly can try , Selectperson Chaffee senses that the Town has risen up as a threat to another deal they may have had in the works, and this was an attempt to shut us down . Mr . Lombardi relayed that he did ask Mr . Fleet relative to the $ 32M , why would we not think we are bidding against ourselves, if we have no idea what else is out there ? Mr . Fleet didn ' t have an answer , Mr . Lombardi did ask if the Town has been clear about our interest throughout the process, Mr . Fleet stated that we have been crystal clear and very transparent and there are no misunderstandings . Selectperson Chaffe continued that she agrees the Board should continue with the public statement and that she is uncomfortable staying silent any longer . We should not release the bid amounts at this time, though we may have to as we will get a lot of questions from taxpayers . There was brief discussion on the press release, it was agreed to strike the second paragraph from the bottom . All agreed that there is no value in providing information on the latest exchange with the sellers . Selectperson Hoffmann commented on the words that Mr . Fleet used in the conversation , such as threat, offensive and mistake, these should be documented , Regarding eminent domain , we are the only entity that has this tool , but not necessarily where we are going to go . Mr . Lombardi noted that the purpose in keeping the eminent domain reference as stated is that the Town may consider acquiring the parcels by eminent domain if a negotiated sale is unsuccessful . All agreed to keep the mention of eminent domain in the presentation and public statement . The Board discussed the upcoming executive session and decided that the bid amounts would not be shared . The press release statement was reviewed , Mr . Lombardi had started to make some revisions based on feedback and consensus from previous meetings , an updated document with highlighted changes was given to each Board member . Noting that the message is that the voters deserve the chance to decide if the Town should acquire the Sea Camps, focusing on site control , instead of blocking private development . There were several suggestions to update specific phrases or words . Reference to bid amounts was eliminated . BoS 7 - 23 - 2021 www . brewster- ma . gov Page 3 of 5 Doc ID : 58a4bOad8d95105d41109a5fbd7325ed99530e77 g EW pQoo''E� °Ee'ey 'p '% Town of Brewster Office of: Select Board 2198 Main Street Town Administrator v o Brewster, MA 02631 - 1898 F Phone : (508) 896 -3701 Fax : ( 508) 896- 8089 Selectperson Chatelain moved to approve the changes to the press release . Selectperson Chaffee second . A roll call vote was taken . Selectperson Hoffmann -yes, Selectperson Chaffee-yes, Selectperson Whitney-yes, Selectperson Chatelain -yes, Chair Bingham -yes . The vote was 5 -Yes, 0- No . Discussion regarding the slide deck for both presentations for Monday were reviewed . It was agreed that there will be no mention of bid amounts for various reasons . It should be disclosed that the Town is building partnerships . Both Brewster Conservation Trust and Mass Audubon have been advised that the Town is not publicly disclosing who the partners are until the public forum, they have agreed not to say anything as well . Selectperson Chatelain mentioned that we could mention that Cape Cod Sea Camps has been a good neighbor for 100 years and the Town intends to do everything we can to treat them with respect through the process, this accurately reflects to the public our commitment to a negotiated sale . Adding that it is clear to him that the sellers are still wanting to negotiate with the Town . Selectperson Chaffee commented that she is still committed to negotiating, and the expectation of the Town using eminent domain continues to grow when conversations like the one with Mr. Fleet happen . She recommends that it is essential to record for legal purposes the exact statements that Mr . Fleet used when speaking with Mr . Lombardi . Noting that if we end up with a jury, the exact language used (which is an over threat to the Town of Brewster) at a time when the Town has followed their process in good faith starts to turn the process in a different direction . Mr . Lombardi stated that the $ 32M is terrific knowledge for the Town , it sets the ceiling, and we know whatever they are putting out is seeking to engage us to get close to their number. This sets the market closer to mid to high $ 20M . For eminent domain purposes, by asking for $ 32M , should be the ceiling on an award . Mr. Lombardi will add a memo to the file regarding the conversation after the meeting . The Board agreed the importance of making the statement now, this is our narrative to protecting land and preventing private development . The Board discussed how they would handle any requests for statement or questions from taxpayers . It was noted that the residents need to hear and feel the Board ' s enthusiasm about the acquisition . Selectperson Chaffee provided some strategies that can help the Board navigate any comments to the media . Mr . Lombardi added that it should be in your own voice, plenty of material to draw from , but should amplify it with genuine sentiment . Mr . Lombardi presented information on financing, the Town had Unibank run about 6 scenarios , from an accessibility perspective the easiest numbers to understand is using a 25 -year level debt term . If the Town finances just the Bay Parcel and the Long Pond parcel is covered with other funds in hand or pledges, it will be $ . 20 per $ 1, 000 when issuing $ 15M in debt, this comes out to $ 90/year. Mr. Lombardi reviewed the analysis and presentation on the High School project since it is coming online and we need to be sensitive to this, the order of magnitude of that project is three times the costs, with a little over $46M being our contribution . When reviewing all information , it will be somewhere between $ 270-$ 300 a year with a 25 - BoS 7 - 23 - 2021 www . brewster- ma . gov Page 4 of 5 Doc ID : 58a4b0ad8d95105d41109a5fbd7325ed99530e77 �����avvvnulllnulloanl Oµ EWST�% 'Town of Brewster Office of: e9� Nq � Select Board y y " 2198 Main Street Town Administrator I ° % ' �' = Brewster MA 026314898 Phone : ( 508) 896-3701 Fax : ( 508) 896 - 8089 /l/l/glllto III11 $05 \\\\\\\ year level debt term and about $ . 60 per $ 1, 000 for this project . Noting that there will be additional costs associated with the Bay Parcel that we can' t lose sight of. Mr . Lombardi noted that even if we went to $ 25M for the Bay parcel , assuming the Long Pond parcel is financed , this would increase to $ 150/year to the medium home price, not insignificant, but it is an important data point to keep in mind when considering negotiations . This is on top of the other debt that the Town will be taking on ( High School project ) . Mr . Lombardi shared that there is another important element to consider, next week he has a meeting with Mark Nelson of both the Pleasant Bay Watershed permit and Cape and Island Water Protection fund and based on recent data and analysis, our nitrogen mitigation credits that we have received so far may be reduced and this could put us in a position where a package treatment plant is the best solution for that area , pointing out that this parcel is located half outside of Zone 2 . We could hypothetically site a package treatment plant on this property if we needed to . This could be really important and have significant financial benefits, serving multiple purposes that we hadn ' t considered up until this point . Regarding capital and operating considerations, Town Administration has started conversations about insuring the properties, this is going to be complicated and potentially expensive on an annual basis . Mr . Lombardi stated that as soon as the public announcement is made, he will sort through Town meeting and elections and set up initial conversations with Griffin Ryder, Chris Miller, Tom Thatcher, Mike Gradone , and Donna Kalinick about property management and understanding the carrying costs of these properties . It was agreed that during the presentation , Brewster Conservation Trust can be mentioned as a partner as it is obvious with a project like this that they would be engaged . This is the only partner to be disclosed at this time, the others will come at another date . Selectperson Chaffee moved to adjourn the meeting at 4 : 34 pm . Selectperson Whitney second . A roll call vote was taken . Selectperson Hoffmann - yes, Selectperson Chaffee - yes, Selectperson Whitney- yes, Selectperson Chatelain -yes, Chair Bingham -yes , The Board vote was 5-Yes, 0- No . Respectfully submitted , Erika Mavwn Approved * 12 / 06 / 2022 Signed : pP Date Kari Hoffmann , Clerk of the Select Board Re I ea se d : 2/27/2023 Date BoS 7 - 23 - 2021 www . brewster- ma . gov Page 5 of 5 Doc ID : 58a4b0ad8d95105d41109a5fbd7325ed99530e77