Minutes - Monday 17 October 2016Regular Meeting - Beverly City Council, Beverly, MA
MINUTES - Monday, 17 October 2016 @ 7:00 PM
Beverly City Hall, 191 Cabot Street, 3r Floor, Council Chamber
Called to Order @ 7:09 PM
Roll Call: John P. Frates Jr., Scott D. Houseman -Vice President, David J. Lang, James F.
Latter, Donald G. Martin, Estelle M. Rand, Matthew J. St.Hilaire, Jason C. Silva (arrived @ 7:11
PM), Paul M. Guanci- President.
Pledge of Allegiance to the Flag: Councilor St.Hilaire
Comments by Citizens (subject to the conditions contained in
Appendix A to the "Rules and Orders "): None
Presentations, Awards & Memorials:
1. Dr. Stephen D. Immerman, President, Montserrat College of Art
Acceptance of Minutes of Previous Meetings:
1. Monday, 19 September 2016 — Regular Meeting - Vote to Accept: 9 -0
Communications from His Honor the Mayor:
#232
October 13, 2016
The Honorable City Council
City Hall, 191 Cabot Street
Beverly, MA 01915
Dear Honorable Council:
I respectfully submit for your consideration a proposed revision to the Tax Increment
Financing (TIF) agreement between the City of Beverly and Krohne, Inc. ( Krohne). As
the Council may recall, the City of Beverly executed a TIF agreement in November 2015
with Krohne to support relocation of their North American Free Trade Area ( NAFTA)
headquarters from Peabody to 55 Cherry Hill Drive in Beverly. Krohne remains
committed to investing and growing its workforce in the City of Beverly, however it
seeks to revise the existing TIF agreement in order to accommodate an alternative
redevelopment approach to the subject property.
The original project included the purchase and renovation of a 55,000 square foot office
building to include office and light manufacturing space and a 40,000 square foot
expansion for a total of 95,000 square feet of floor area. The proposed expansion would
accommodate three (3) additional manufacturing lines for which it oversees along with
office facilities for administrative, engineering, and sales functions for the NAFTA
region. The agreement included a commitment by Krohne to make a $20 million capital
investment including the purchase of property, redevelopment and expansion of the
existing building, and the purchase of machinery and equipment. In addition Krohne
committed to creating 54 new full -time jobs within five years of project completion.
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While working through the design and development of the project, Krohne has
determined that an alternative redevelopment strategy of the site would be more
beneficial from an operational perspective. The revised project proposes to demolish the
existing vacant office building and to construct a new 20,000 square foot office building
as well as a 64,000 square foot manufacturing building connected by an enclosed foot-
bridge, for a total of 84,000 square feet of building floor area. The project will continue
to serve as Krohne's NAFTA headquarters and accommodate three (3) additional
manufacturing lines. The project will also provide office facilities for administrative,
engineering, and sales functions. The level of capital investment for the revised project
has increased to approximately $23.4 million including property acquisition, building
demolition, construction, and purchase of machinery and equipment. It is now expected
that Krohne will provide an additional 56 skilled jobs over and above the existing 48
employees.
The proposed amendments to the TIF agreement are focused on the following substantive
areas, and do not affect the overall economic development benefit to the City:
The project description has been revised to reflect the new development proposal
as described above, reflects the new level of investment, and new job creation
numbers; and
Reflects a revised construction scheduled with demolition beginning November,
2016 and construction completion by December, 2017.
The revised project proposal provides an economic development and fiscal benefit to the
City consistent with the original TIF agreement. If Krohne's application is approved, the
City will realize additional real estate tax revenue over and above what it would
otherwise have received due to the planned investment during the term of the agreement.
It is estimated the revised project will bring additional tax revenue following project
completion of $316,692 during fiscal year 2018, $31,692 of which will be exempted per
the proposed TIF agreement. It is estimated that the City will realize nearly $3 million in
additional tax revenue over the 10 year term of the agreement. This represents a
significant increase in new tax growth for the City by encouraging additional investment
in an area targeted for commercial and industrial growth, and an underutilized site that
has long contained a vacant building.
I respectfully request your consideration and authorization of the revised Tax Increment
Financing Agreement with Krohne, Inc., and seek your support and authorization by the
November 7t' City Council Meeting. Krohne will be submitting their Economic
Development Incentive Program (EDIP) Application to the Massachusetts Office of
Businesses Development (MOBD) by November 9t' for consideration of approval for
both the local and state incentives.
For and specific questions relative to the revised project proposal and amendment to the
original TIF agreement please contact Aaron Clausen, Planning Director, directly at 978-
605 -2341
Sincerely yours,
Michael P. Cahill
Mayor
Attachments
cc: Aaron Clausen, Planning Director
Terry DeBlasie, City Assessor
Stephanie Williams, City Solicitor
Bryant Ayles, Finance Director
Denise Deschamps, Economic Development Planner
Referred to Finance & Property
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#233
October 17, 2016
The Honorable City Council
City Hall
Beverly, MA 01915
Dear Honorable Council:
I am pleased to inform you that the City of Beverly has received a Coastal Resiliency
Grant from the Massachusetts Office of Coastal Zone Management in the amount of
$89,981. With your approval, this grant will be used to identify climate change risks and
develop preliminary strategies to protect the most vulnerable public infrastructure and
critical facilities on Beverly's waterfront from flooding and sea level rise.
Massachusetts General Law Chapter 44 Section 53A requires both council and mayoral
approval before any grant or gifts to the city can be expended for their prescribed
purpose. I therefore request the council approve this grant by taking action on this matter
at your upcoming meeting of the City Council on October 17th, 2016.
Please feel free to contact Aaron Clausen directly at 978 - 605 -2341 to discuss specific
details regarding the grant program and the planning process it supports.
Sincerely yours,
Michael P. Cahill
Mayor
Referred to Finance & Pro
Public Hearings:
1. 7:30 PM - #224 — Public Hearing re: CPC's 3 d Round CPA Project
Recommendations - Public Hearing held & closed, referred back to
Finance & Property.
Council Vice President Houseman left the Meeting @ 7:32 PM
Communications from His Honor the Mayor (continued):
#234
October 17, 2016
The Honorable City Council
City Hall
Beverly, MA 01915
Dear Honorable Council:
I am pleased to inform you that the City of Beverly, through our Emergency Management
Department, has received an Emergency Preparedness Sub Grant from the International
Institute of Greater Lawrence via the Commonwealth of Massachusetts Department of
Public Health, Office of Preparedness and Emergency Management in the amount of
$13,339.76. With your approval, this grant will be used to cover payroll expenses for
James Hill, Medical Reserve Corps (MRC) Coordinator, and to cover additional expenses
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for the MRC Unit. Massachusetts General Law Chapter 44 Section 53A requires both
council and mayoral approval before any grant or gifts to the city can be expended for
their prescribed purpose. I therefore request the council approve this grant by taking
action on this matter at your upcoming meeting of the City Council on October 17th,
2016. Thank you.
Sincerely yours,
Michael P. Cahill
Mayor
Referred to Finance & Property
#235
October 17, 2016
Honorable City Council
City Hall
Beverly, MA 01915
Dear Honorable Council:
I respectfully request that you approve a $450,000 loan authorization for the seriously
deteriorating roofs at the City's Public Services facility. The City Council had previously
appropriated $350,000 for this project and this additional appropriation will allow the
City to enter into an agreement with the successful bidder of the project. I attach for your
reference a Memo from Finance Director Bryant Ayles that provides some additional
detail.
Please initiate action on this matter at your next City Council meeting, October 17th,
2016. This appropriation request will require a public hearing be set prior to a City
Council vote. Thank you.
Sincerely yours,
Michael P Cahill
Mayor
Referred to Finance & Property to set a Public Hearing
Communications from other City Officers & Boards:
#236
Communication — Council President re: Amended Ordinance changed name of
"Beverly Recycles" to "Beverly Waste Reduction Committee"
Referred to Legal Affairs
#224A
Communication — Community Preservation Committee re: Correction of clerical
error relative to CPC 3 d Round CPA project Funding recommendations
Referred to Finance & Pro
158
Communications, Applications & Petitions:
#237
Communication — Secretary of the Commonwealth, Director & Legal Counsel —
Elections Division re: 2016 Early Voting Weekend Hours Incentive Grant of
$1500.00.
Referred to Finance & Property
Presentations, Awards & Memorials:
2. Aaron Clausen, Director of Planning & Community Development re:
Housing Plan Update
Council Vice President Houseman returned @ 8.54 PM
Reports of Committees:
#224A
The Committee on Finance & Property, to whom was referred the matter of Correction of clerical
error relative to Community Preservation Committee 3r Round CPA project recommendations, have
considered said matter and beg leave to report as follows:
CPC Project #R3 -10, Beverly Harbor Management Authority, Recommended Amount corrected from
$20,000 to $25,000 per Order #224A, Total Recommended Amount corrected from $405,300 to
$410,300.
Recommend the Council Approve the Request
Order read once and adopted. Vote: 9 -0.
#224
The Committee on Finance & Property, to whom was referred the matter of Communication — CPC
re: 3r Round CPA Project Recommendations, have considered said matter and beg leave to report
as follows:
Recommend the Council Approve the Request:
CPC Project #R3 -10, Beverly Harbor Management Authority, amended from $20,000 to $25,000 per
Order #224A
Order read once and adopted. Vote: 9 -0.
CPC Project #R3 -11, Beverly Recreation Department, Recommended Amount $75,000
Order read once and adopted. Vote: 8 -0 -1 (Councilor Frates abstained).
CPC Projects #R3 -1, 2, 3, 6, 8, 13 & 14, Total Recommended Amount corrected from $405,300 to
$410,300.
Order read once and adopted. Vote: 9 -0.
159
#232
The Committee on Finance & Property, to whom was referred the matter of Communication — Mayor
re: Revised TIF — Krohne, Inc., have considered said matter and beg leave to report as follows:
Recommend the Council Approve the Revised TIF
Order read once and adopted. Vote: 9 -0.
#233
The Committee on Finance & Property, to whom was referred the matter of Request for City Council
approval of the Coastal Resiliency Grant from the Massachusetts Office of Coastal Zone
Management ( "CZM ") $89,981.00, have considered said matter and beg leave to report as follows:
Recommend the Council Approve the Request
Order read once and adopted. Vote: 9 -0.
#234
The Committee on Finance & Property, to whom was referred the matter of Request for City Council
approval of the Emergency Preparedness Sub Grant from the International Institute of Greater
Lawrence $13,339.76, have considered said matter and beg leave to report as follows:
Recommend the Council Approve the Request
Order read once and adopted. Vote: 9 -0.
#235
The Committee on Finance & Property, to whom was referred the matter of Request for Public
Hearing relative to request for approval for a loan authorization ($450,000) to repair the deteriorating
roofs at the City's Public Services Facility, have considered said matter and beg leave to report as
follows:
Submit the accompanying order and recommend its adoption:
ORDERED: That the City Council of the City of Beverly hold a Public Hearing on Monday,
November 7, 2016 at 7:20 PM at Beverly City Hall, third floor, City Council Chamber, 191 Cabot
Street, Beverly, MA. — relative to the loan order authorization for ($450,000.00) for the deteriorating
roofs at the City's Public services facility on Park Street.
Order read once and adopted. Vote: 9 -0.
#237
The Committee on Finance & Property, to whom was referred the matter of Request for City Council
approval of the 2016 Early Voting weekend Hours Incentive Grant from the Secretary of the
Commonwealth of $1,500.00, have considered said matter and beg leave to report as follows:
Recommend the Council Approve the Request
Order read once and adopted. Vote: 9 -0.
160
#236
The Committee on Legal Affairs, to whom was referred the matter of Communication — Council
President re: Amended Ordinance changed name of "Beverly Recycles" to "Beverly Waste
Reduction Committee" have considered said matter and beg leave to report as follows:
Submit the accompanying amended Ordinance and recommend its adoption, pending Publication
and Final Passage:
ORDERED: Be it ordained by the City Council of the City of Beverly as follows:
In the year two thousand and sixteen
An Ordinance amending an Ordinance relative to:
Chapter 15. Boards, Commissions, Councils, Committees & Authorities; Article II. Specific
Multiple- Member Bodies; 15 -17. Beverly Recycles:
REMOVE ALL REFERENCES TO: "Beverly Recycles" where it appears;
AND REPLACE WITH: "Beverly Waste Reduction Committee ".
First Reading: 17 October 2016
Second Reading & Final Passage: 7 November 2016
Order read once and adopted. Vote: 9 -0.
2 nd Reading & Final Passage:
#212
The Committee on Legal Affairs, to whom was referred the matter of Communication — Mayor re:
Amended Ordinance — 2 nd Hand Junk Dealer, have considered said matter and beg leave to report
as follows:
Submit the accompanying amended Ordinance and recommend its adoption pending Publication
and Final Passage:
Be it ordained by the City Council of the City of Beverly as follows:
In the year two thousand and sixteen
An Ordinance amending an Ordinance entitled Chapter 192 - Licenses and Business
Reaulations. Article V: Junk and Second hand Dealers.
By amending Chapter 192 - Licenses and Business Regulations, Article V: Junk and
Secondhand Dealers by deleting the existing language in Section 192 -24 regarding
"Dealing in new material prohibited" and replacing it as follows:
Section 192 -24 Any person engaged in a business under such license that also offers for
sale or rent new goods shall label, place, or designate goods so that new goods are clearly
distinguishable from used or secondhand goods.
Ordinance to take effect upon Publication and Final Passage.
First Reading: Monday, 3 October 2016
Published in the Salem News: Saturday, 8 October 2016
Second Reading & Final Passage: Monday, 17 October 2016
Order read once and adopted — Vote: 9 -0
161
#222
The Committee on Legal Affairs, to whom was referred the matter of Communication — BPD
Traffic /Safety Sergeant (Amended Ordinance) re: 1 -Hour Parking sign @ 491 Rantoul Street, have
considered said matter and beg leave to report as follows:
Submit the accompanying amended Ordinance and recommend its adoption pending Publication
and Final Passage:
ORDERED: Be it ordained by the City Council of the City of Beverly as follows:
In the year two thousand and sixteen
An Ordinance amending an Ordinance relative to:
Chapter 270: "Vehicles and Traffic ", Section 270 -47 "One -Hour Parking ",
Amending Section 270 -47 as follows:
ADD: D.
Rantoul Street East In front of the business at 491 Rantoul Street, 20 feet
North of Lenox Street by Rantoul Street
Ordinance to take effect upon Publication and Final Passage.
First Reading: Monday, 3 October 2016
Published in the Salem News: Saturday, 8 October 2016
Second Reading & Final Passage: Monday, 17 October 2016
Order read once and adopted — Vote: 9 -0
#225
The Committee on Legal Affairs, to whom was referred the matter of Communication — City Clerk re:
Removal of 2 Handicapped Signs, have considered said matter and beg leave to report as follows:
Submit the accompanying amended Ordinance and recommend its adoption pending Publication
and Final Passage:
ORDERED: Be it ordained by the City Council of the City of Beverly as follows:
In the year two thousand and sixteen
An Ordinance amending an Ordinance relative to:
Chapter 270: "Vehicles and Traffic ", Section 270 -49 "Off- street parking; handicapped parking ",
Amending Section 270 -49 as follows:
DELETE: Grant Street At approximately 19 Grant Street
Wellman Street At approximately 19 Wellman Street
Ordinance to take effect upon Publication and Final Passage.
First Reading: Monday, 3 October 2016
Published in the Salem News: Saturday, 8 October 2016
Second Reading & Final Passage: Monday, 17 October 2016
Order read once and adopted — Vote: 9 -0
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Resolutions: None
Unfinished Business: None
Motions and Orders: None
Councilor Frates: "Our deepest condolences from a Body to our City Clerk Wes
Slate on the tragic loss of his brother -in -law, Ms. Georgia Bills' brother John Bills
tragically in an accident this past week — our condolences go out as a City and
as a Body."
Council President. "Of course. "
City Clerk. "Thank you."
Meeting Adjourned: 9:13 PM Attest: D. Wesley Slate, Jr.
City Clerk
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