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CPC Meeting 2023-11-1 minutes Beverly Community Preservation Committee November 1,2023 Meeting Minutes Page 1 of 4 CITY OF BEVERLY PUBLIC MEETING MINUTES BOARD: Community Preservation Committee LOCATION: Virtual via Google Meet DATE: November 1, 2023 BOARD MEMBERS PRESENT: Chair Derek Beckwith, Vice Chair Robert Buchsbaum, Suzanne LaMont,Nancy Marino, Heather Richter, Danielle Spang, Christy Edwards BOARD MEMBERS ABSENT: OTHERS PRESENT: Director of Planning and Development Darlene Wynne RECORDER: Naomi Moca 1. Call to order Chair Beckwith opens the meeting at 6:00 p.m. and conducts a roll call for attendance. Beckwith reads the notice regarding holding meetings remotely. 2. Out-of-Cycle application: Anchor Point Phase II—Harborlight Homes—request for additional funding in the amount of o $450,000 to support the proposed project (request is in addition to $400,00 already awarded by CPC)—received on August 28,2023 Andrew DeFranza, Executive Director of Harborlight Homes, and Andrew Leonard, Senior Project Manager of Harborlight Homes, are present. Leonard states that the project received $400,000 in CPA funds in a previous funding round and expresses gratitude. The current request is for$450,000 in CPA funds. Leonard explains that the reason for the out-of-cycle request is twofold: first, in the process of closing Phase I of the project, it was clearly demonstrated that there is not sufficient housing for the current demand by a large margin. Second, current economic conditions are not favorable for homebuyers or renters. Now that the plan and construction pricing are confirmed, a gap has grown between the funding and the construction pricing. Leonard states that the hope is to capture the pricing as it has been quoted so the project may move forward. The goal is to close the project by December 31, 2023. DeFranza states that this situation is common across other projects throughout the State and comments that the Harborlight has collaborated with the State on constructive strategies for closing projects. DeFranza observes that the State would benefit from accelerating financial closings for shovel-ready projects that can help solve the homeless shelter crisis. Beckwith observes that the application dated August 28, 2023 states that the project has a $6.352 million funding gap and notes that the original cost of$23 million has increased by $3 million, bringing the total to $26 million. Beckwith asks why the gap is $6 million on the application when the increase was only $3 million overall. Leonard states that the number on the application includes a higher-level estimate by the contractor and factors in permanent debt and interest rates continuing to creep up. Leonard states that$450,000 in CPA funding is a key part of being able to obtain additional State and Federal funding. Leonard states that Harborlight wishes to accurately offer vouchers and rent and gives the example of the Briscoe project's 1:5 ratio of 1 Beverly Community Preservation Committee November 1,2023 Meeting Minutes Page 2 of 4 CPA to State funds. Leonard states that Harborlight is knocking on every proverbial door to close the funding gap. DeFranza states that Harborlight applied to the North Shore Home Consortium for other sources of funding, and that the aggregate is anticipated around $1.7 million. Richter asks what measures are being used to reduce the cost of the construction. Leonard states that the splash pad in the playground has been changed to donor-fund/philanthropy only. The bridge connecting the two buildings has been removed, accounting for$900,000, and the wall material is being changed from concrete to versa lock. Leonard states that the changes do not impact the quality but improve the price. Buchsbaum asks what the applicant's contingency plan is if the other sources of funding do not work out. Leonard expresses confidence in the other funding sources, with the State being the biggest outstanding portion. The applicant hopes to have clarity on the North Shore Home Consortium application within the month. DeFranza expresses confidence in the State and the North Shore Home Consortium. Marino asks how many vouchers the applicant currently holds,how many are needed for the project, and whether the project would receive fair market value per unit, since vouchers are based on current market value. DeFranza states that vouchers are obtained per project, so the applicant received two sets of vouchers: 10 for Anchor I and 16 for Anchor IL The two types of vouchers are Section 8 and MRVP. The vouchers help Harborlight House residents in the lowest end of the economic spectrum by enabling them to partially offset rents. Beckwith asks what the status is of the applicant's request to Beverly Affordable Housing Trust and Director Wynne states that it was approved in September. DeFranza states that the funding from BAHT totals $50,000. Beckwith observes that City funds would total around $900,000 with the BAHT funds. The Committee discusses whether the amount requested, if granted, will affect the overall budget. Beckwith states that with the City Council's approval of the budget request plus the rollover of previous years' unspent funds, Open Space has $270,000, Historic Resources has $140,000, and Community Housing plus General Reserve have $1.8 million. The pending Round I I projects' value, if the Committee were to fund all of them,totals $521,838. Thus, there would be enough funds available for the amount the applicant is requesting today. Richter states that she believes this is the type of heroic community-service project that the CPA was created for and expresses her support. Spang observes that most of the public input at the public meeting was in support of more community housing. Beckwith and Buchsbaum express their support for the project. Marino cites a compelling photo in a recent Boston Globe issue of an elderly woman who had been evicted from her apartment and expresses support for the proj ect. The Committee discusses with Wynne that the project has already been determined to be eligible for CPA funds. A vote is required to determine if it qualifies for an out-of-cycle application, and 2 Beverly Community Preservation Committee November 1,2023 Meeting Minutes Page 3 of 4 if deemed eligible, a second vote is required to approve the funding and the source of that funding. Richter: Motion to find that Harborlight Homes Anchor Point Phase II meets the criteria to be eligible for an out-of-cycle application. Marino seconds. Beckwith takes a roll call vote. The motion carries (7-0). Richter: Motion to approve Harborlight Homes Anchor Point Phase II application for $450,000, $250,000 of which comes from Community Housing Fund and $200,000 from the General Fund, for the purpose of Community Housing. Buchsbaum seconds. Beckwith takes a roll call vote. The motion carries (7- 0). 3. Expired Memorandum of Understanding for Round 9 Project of Historic Resource Survey,Phase I of residential neighborhood between Cabot Street and Rantoul Street (pursuant to Massachusetts Historical Commission Project Grant)—Beverly Planning Department Beckwith explains that today's objective is to determine if it is within the scope of the Committee to grant an MOU extension or to recommend submitting an out-of-cycle application. Wynne summarizes the history of the project: in funding Round 9, the Committee approved funding of$20,000 for a historic resource survey of the Cabot Street- Rantoul Street neighborhood. The project is subject to a Mass Historical Commission grant of$5,000, meaning that the City must use MHC processes. The City issued a Request For Proposal (RFP)in Fall of 2022 after working with MHC to refine the scope of the project and received no response. The City issued another RFP and revised the scope of the project and received no response again. In the course of this process, Wynne found paperwork that stated the MOU expires in 2024. The City started reaching out to MHC in January of 2023, the MOU expired in July of 2023, and MHC reached out to the City in September of 2023 to pursue the project and extend the grant. The Committee discusses whether extending the MOU, submitting an out-of-cycle application, or submitting a regular application for the current cycle is appropriate in this instance. Spang states that in the past the Committee has extended MOUs that expired due to no-fault clerical errors. Beckwith states that in this case, the clerical error was the paperwork with the incorrect 2024 expiration date. Beckwith and Edwards express their support of extending the MOU. Edwards cautions that Section 4 of the MOU states that if the recipient fails to submit the extension request within 30 days of the MOU expiration, all unspent CPA funds shall be returned. Edwards points out that the"shall"term in the language might cause the Committee to consider softening MOU language going forward. Beckwith observes that the funds were never moved out of the line item, and thus did not need to be returned when the MOU expired. Richter recollects that in the previous similar situation where there was a clerical error, a judgment was requested of the City Solicitor. Richter expresses misgivings about amending a legal document such as an MOU. Beckwith suggests that voting to extend the MOU with the condition that the City Solicitor give an opinion about whether it is in the Committee's jurisdiction may resolve 3 Beverly Community Preservation Committee November 1,2023 Meeting Minutes Page 4 of 4 this issue. LaMont states that in this case where there was a genuine clerical error, she supports extending the MOU because (1)the City has been proactive about moving the project forward, (2) it is a priority for the City, (3)it is a priority for the Historic Districts Commission (HDC) as demonstrated by the fact that it is fourth on the list of projects the HDC wants to do, and (4) it sets the framework of what the neighborhood looks like so the City and the Committee can better understand what they are working to protect. Buchsbaum agrees that the project is important and that checking with the City Solicitor before releasing the funds is appropriate. Marino recalls that in the previous similar situation, the City staff person took the responsibility for not notifying the recipient that the MOU expired. Marino and Spang agree that it is appropriate to pursue an opinion from the City Solicitor on the matter. Wynne states that making the extension date in line with the Mass Historic Commission grant deadline of September 30, 2024 would be appropriate. Buchsbaum: Motion to extend the MOU for Historic Resource Survey, Phase I of residential neighborhood between Cabot Street and Rantoul Street, expiration to October 31, 2024 on the condition that the City Solicitor provides guidance on the legality of extending. LaMont seconds. The motion carries (7-0). Wynne agrees to follow up with the City Solicitor on the matter, and if it is not recommended, agrees to ask for guidance on how to resolve the issue. Wynne expresses gratitude. 4. Adjourn Richter: Motion to adjourn. Marino seconds. The motion carries unopposed. Meeting adjourns at 7:13 p.m. Next regular CPC meeting: Thursday,November 16,2023, 7 p.m. 4