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2012-12-11CITY OF BEVERLY PUBLIC MEETING MINUTES BOARD OR COMMISSION: Economic and Community Development Council SUBCOMMITTEE: DATE: Wednesday, December 11, 2012 LOCATION: Beverly Public Library — Staff Conference Room MEMBERS PRESENT: Chairman Paul Guanci, Vice Chairman Neil Douglas, Tina Cassidy, Charlene St. Jean, Don Fournier, Bill Howard, Mike Collins MEMBERS ABSENT: OTHERS: Mayor William Scanlon, Denise Deschamps RECORDER: Tina Cassidy Guanci calls the meeting to order at 5:30 p.m. 1. Approval of minutes Guanci asks if there are any corrections that need to be made to the draft minutes of the September meeting before adoption. There are none. Fornier: motion to approve the draft minutes of the September 12, 2012 meeting, seconded by St. Jean. All members in favor, motion carries 7 -0. 2. Update on Route 128Brimbal Avenue project Mayor Scanlon informs the Commission that the City recently received a $500,000 MassWorks grant to advance this significant infrastructure project. The City is in the process of determining the best way to spend those funds in addition to any money that may remain from the earlier State design earmark secured by then - Senator Berry. Douglas says that he knows there are several, real possibilities for short term business expansion at the Tenterra property, the land owned by the CEA Group, and Cell Signaling. When Cell's current project is completed it will be worth between $15 -20 million and pay over $62,000 annually in real estate taxes alone. The CEA Group's property is worth $2 million dollars today but when developed as planned will be worth $10 -12 million. In total, the value of the three companies' properties will increase from about $7.7 million to $27.7 million and the total real estate taxes will increase from $165,000 today to $690,000. Douglas wonders if the City should consider underwriting the cost of initial phases of construction which might total $5 million. Cassidy asks if it would be reasonable to expect contributions from either Cell Signaling or the CEA Group as well. Members have a general discussion about the project's benefits and beneficiaries. Douglas states that he will soon be meeting with representatives of Cell Signaling. Final Economic and Community Development Council Minutes 12 -19 -12 Meeting Page I of 3 Guanci asks he will broach the notion of cost sharing and Douglas responds in the affirmative. Howard asks Douglas if he would be willing to guide a brief tour of the area around Sohier, Brimbal and Tozer Roads and Douglas states that he would. Cassidy promises to work with Douglas to identify possible dates and she will coordinate with members via email. 3. Development Scorecard Cassidy provides a brief update of projects and their status since the last ECDC meeting. In particular she mentions: • Cicoria Tree acquired a site by the airport in March and construction is now on- going; • The Zoning Board of Appeals overturned the Building Inspector's decision to issue a building permit for the Housing Authority's planned units on Spring and Essex Street; • The SRO units at the former Press Box site are slated to be moved to a building on Broadway which was formerly owned by Dr. Kowalski; this may result in redevelopment of a portion or all of the small block of buildings housing the Press Box, Casa de Luca, etc.; • Site work and demolition preparations are on -going at the site of the new T garage on Rantoul Street, construction of which is estimated to be completed by early 2014; • The City obtained a $500,000 MassWorks grant for phase one of the Route 128Brimbal Ave. interchange project; • Construction of 45 new units at the former Enterprise Rental Car site is about to begin; and • A fourth parking structure at Cummings Center is nearly complete and open and operational in the meantime. Scanlon adds that although they are not private sector projects, the City is planning to do some major maintenance work on both City Hall and the Main Library. Howard asks Cassidy for an update on the subject of creating a residential TIF district on Rantoul Street. Cassidy explains the Council's recent deliberations and vote to create a district with specific terms pre- determined (i.e. percentage of tax relief and length of term of tax relief). The Mayor objected to the specific terms portion of the Council's vote, preferring instead to see an approach that would give a Mayor the ability to negotiate percentages and terms specific to the needs of an individual project. He vetoed the Council's Order because of that objection and has asked the Council to reconsider its vote. The Council will be doing so over the next several weeks, and Guanci states his opinion that the Council will approve a TIF district again, with terms that will satisfy both councilors and the Mayor. Final Economic and Community Development Council Minutes 12 -19 -12 Meeting Page 2 of 3 Guanci states the next meeting of the ECDC will be held on March 13, 2013 and asks if there are any issues with that date. There are none. 4. Adjournment Guanci asks if there is any other business for the ECDC to discuss this evening. There is none. Fournier: motion to adjourn, seconded by Douglas. All members in favor, motion carries 7 -0. The meeting is adjourned at 6:35 p.m. Final Economic and Community Development Council Minutes 12 -19 -12 Meeting Page 3 of 3