2001-11-29
CITY OF BEVERLY
PUBLIC MEETING MINUTES
BOARD OR COMMISSION:
Economic & Community Development
Council
SUBCOMMITTEE:
DATE:
LOCATION:
MEMBERS PRESENT:
November 29,2001
Third Floor, City Hall
Chairman Joyce McMahon, Brenda
Spence, Dick Mooney, Wayne Mastin
Don Stacey
City Planner I ex-officio member Tina
Cassidy, Community Development
Manager I ex-officio member Bill O'Hare,
former vice-chairman Bill Rodenbaugh
Tina Cassidy
MEMBERS ABSENT:
OTHERS PRESENT:
RECORDER:
McMahon calls the meeting to order at 6:35 p.m. and asks those in
attendance to identify themselves. In addition to the individuals listed
above, the following representatives of Electric Insurance Company
("EIC") are present: Denny Doherty from EIC, Attorney Mark Glovsky,
David Greenbaum and Ginny McCarthy from EIC, and Dallas Crowell,
project architect.
Glovsky states that EIC has prepared a brief, three part presentation for
the Commission this evening as it formulates a recommendation to
Mayor Scanlon on a proposed Tax Increment Financing Agreement
("TIF"), designation of the subject property as an Economic Target Area,
("ETA"), and designation as a certified project.
Doherty begins by explaining that EIC currently has 500 employees at
two leased facilities in Beverly. The company specializes in commercial
and personal insurance. The company leases space at 150 Conant
Street, and its growth required the company to lease a second facility on
Cherry Hill Drive. They want to consolidate their headquarters into one
facility. The company looked at several sites on the North Shore, and
decided to pursue a facility in Beverly if possible. The company has
many ties to the community, including employees who volunteer time for
a mentoring program at the Hannah Elementary School. EIC has
donated supplies and equipment to the school as well, and is involved in
the Center for Family Development, the Beverly Rape Crisis Center, and
Beverly Bootstraps Program.
McCarthy explains the details of the TIF IETAI certified project
applications. The property being purchased by EIC on Sam Fonzo Drive
ECDC minutes
November 29,2001 meeting
Page two
is approximately 28 acres in size and is presently assessed at a value of
$750,000. The company plans to build a $20 million facility and spend
an additional $5 million in building fit-out. They hope to begin
construction in June of 2002 and complete the project by September
2003. The company also plans to add 175 jobs over the ten-year life of
the TIF.
McCarthy states that at present tax rates, the company would be
generating approximately $5,000,000 in tax revenue to the City over the
life of the TIF, and the terms of the proposed TIF would forgive a total of
only $100,000 over the same time.
Glovsky states that the site is located at 75 Sam Fonzo Drive. The 28
acres site contains approximately 11 acres of wetlands. EIC plans to
build a 155,000 sq. ft. facility initially, and plans call for a second
expansion phase at the back of the proposed facility that would result in
an additional 36,000 sq. ft. of building area. The second phase would be
built more than five years from now. .
Glovsky states that the company received site plan review approval from
the Planning Board and an Order of Conditions from the Conservation
Commission in October of this year. He notes that the Order of
Conditions has been appealed by a group of residents. Despite the
appeal, EIC remains committed to the project and hopes that the appeal
will be speedily resolved. He asks if there are any questions on the
presentation.
Mastin asks if any traffic studies have been done. Glovsky states that no
traffic studies were done, although the site plans have been reviewed and
approved by the City's Parking and Traffic Commission. Cassidy adds
that the original Environmental Impact Report prepared for the Sam
Fonzo Drive subdivision road was predicated on the assumption that
there would be 500,000 square feet of office space in the park. This
project, coupled with the two other developments in this subdivision,
total much less than that.
Rodenbaugh asks EIC to explain why it is seeking a ten year certified
project agreement. Greenbaum answers that the primary reason is the
second phase of construction the company is contemplating. The second
phase would not occur during the first five years, but rather sometime
after that. He adds that a ten -year term was negotiated with Beverly's
Mayor when EIC was actively negotiating with several other communities
ECDC minutes
November 29, 2001 meeting
Page three
as potential sites for this project. The ten-year term distinguished
Beverly from the others.
Rosser asks Glovsky for clarification on the nature of the appeal of the
Conservation Commission's decision. Glovsky answers that the appeal
indicates the petitioners believe that the Commission exceeded its
authority in approving the project and did not act appropriately to
safeguard the wetlands on the site.
Mooney asks how many EIC employees are Beverly residents. Doherty
answers approximately 70%.
Paul Barnico, a member of the airport commission, asks how large the
site is and the purchase price. Glovsky answers 28 acres, and the
company paid $3,000,000.00 for the land.
O'Hare requests clarification of the term "blighted open area" that is
referenced in the state regulations for economic target areas. Glovsky
answers that the term refers to vacant lots that might exist within an
economic opportunity area. O'Hare asks how many construction jobs
will be generated by the project. Crowell says that the number will vary
depending on the phase of construction, but that there should be the
equivalent of fifty full time jobs at the peak of construction.
Rodenbaugh states that he has been involved in the work of the master
plan steering committee and the recommendations that will be contained
in the final master plan report. The citizens who have participated in the
master planning process have said they are looking for low-impact
industrial uses and support the productive use of land currently zoned
for commercial and industrial uses instead of rezoning new areas for
these land uses. This project conforms to those wishes. He states that a
vote to recommend approval of these applications is in fact a statement
to the company that the City would like them to locate in Beverly. He
states that the proposed tax break to be given by the City is a minimal
one, and he urges the company to remind the City Council of that fact
during the approval process.
Rosser agrees with Rodenbaugh's statement that the residents have said
they want to encourage the maximum redevelopment of existing
commercially- and industrially-zoned land, and adds that the Chamber
of Commerce feels the same way. While some in the community do not
understand the objectives of the EOA/TIF I certified project program, this
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November 29,2001 meeting
Page four
committee sees the long-term benefit to the City. In fact, Rosser states,
this proposal meets all of the goals the City and State have for economic
opportunity areas and economic target areas.
McMahon asks if there are any other questions or comments on the
application. There are none.
Rosser:
Mastin:
Rosser:
motion to recommend to Mayor Scanlon that he forward the
Economic Opportunity Area application of Electric Insurance
Company to the City Council for approval, seconded by
Mooney. All members in favor, no one in opposition. Motion
carries.
motion to recommend to Mayor Scanlon that he forward the
proposed Tax Increment Financing Plan for Electric
Insurance Company to the City Council for approval,
seconded by Rosser. All members in favor, no one in
opposition. Motion carries.
motion to recommend to Mayor Scanlon that he forward the
certified project application of Electric Insurance to the City
Council for approval, seconded by Mooney. Rodenbaugh
suggests that the certified project application be amended to
include an affirmative action statement as required by law.
Greenbaum states that he will address this issue prior to the
day the applications will be sent to the City Council. Rosser
amends her motion to include a condition that the certified
project application be approved subject to the inclusion of an
affirmative action statement. On the amended motion, all
members are in favor, none in opposition. Motion carries.
McMahon asks if there is any other business for the committee to
discuss this evening. There is none.
Rosser:
motion to adjourn, seconded by Mooney. All members m
favor, no one in opposition. Motion carries.
The meeting is adjourned at 7:20 p.m.