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2013-10-17CITY OF BEVERLY PUBLIC MEETING MINUTES Board: Harbor Management Authority Date: October 17, 2013 Location: Beverly Public Library (Fogg Room) Members Present Chair Paul Earl, David Suminsby, Pat McAleer, Rinus Oosthoek, Don Neuman, Paul Miedzionoski, Chris D'Alfonso, Maureen Troubetaris, Members Absent: Chris D'Alfonso and Wes Slate Others Present: Rob Dever, Facilities Manager, City Solicitor Roy Gelineau, Joe Leone, George Whitney, John Silver Recorder: Eileen Sacco Earl called the meeting to order at 7:00 p.m. Public Input There was no public input this evening. Review of Black Cow Lease Agreement Earl explained that City Solicitor Roy Gelineau is present this evening to review and answer any questions members may have regarding the proposed lease for the Black Cow and the City of Beverly. Earl also noted that the HMA received an email today from the Attorney for the owners of the Beverly Port Marine and he would leave that to Gelineau to address. Gelineau stated that the email received by the HMA from the Atty. for the Beverly Port Marine is technical in nature and he would respond to that in writing. Gelineau reviewed the history of the site of the former "McDonald's" building and noted that it has been challenged and held up in the courts for years, noting that the latest appeal of the City's application for a Chapter 91 License is in appeal and a decision is pending. Gelineau explained that the City is proposing a lease that is very detailed that has been drafted by outside counsel for the City. He explained that this process is not unlike a purchase and sale agreement and he has every expectation for success to see this project through. Page 1 of 5 Gelineau stated that they expect the abutters to take one more shot at the SJC; however the SJC does not take cases regarding specific sites. Gelineau explained the process and the reasons that they are moving forward with a lease at this time. Suminsby asked if the role of the Harbor Management Authority is to agree to the lease or to provide comments on it. Earl explains that the Charter for the HMA Section 2A calls for the HMA to review all contracts regarding operational matters but they do not get a vote. Oosthoek stated that there are parts of the lease that impact the Harbor Management Authority, noting that the agreement calls for the use of up to 6 slips at the marina. He further noted that it is the responsibility of the HMA to maximize income and they are being asked to give up 6 slips. Neuman stated that the use of six slips is an option for Mr. Leone and they would be rented, noting that he does not rent them the HMA would have them available. Gelineau agreed noting that the slip rentals are year to year, noting that he does not think that Mr. Leone is looking to disrupt anything. Neuman agreed noting that according to the terms the HMA will have enough notice of the intent to rent the spaces or not before the start of the season to fill them. Dever noted that there is a turnover in who rents the slips every year. Simon stated that he is concerned about the amount of rent that he City will be receiving over the 40 year term of the lease, noting that he feels that it should be much higher than what is proposed. Gelineau explained that Mr. Leone is going to construct the building and lease the site from the City. He further explained that at the end of the lease is not a building lease and when Mr. Leone is done with it, it will revert to the City. Oosthoek questioned who would own the liquor license on the site. Gelineau explained that the City has agreed to get a site specific license by legislation and that would be attached to the site. Oosthoek also stated that he agrees that $30,000 for rent is too low. Gelineau stated that there are other potential revenues from the site that will benefit the City such as real estate taxes, revenue from parking meters, slip rental fees, and meal taxes. He estimated that they could be as much as $112,000 - $150,000 per year. Earl suggested that the HMA members take some time to review the lease further and suggested that the HMA hold a special meeting for the purpose of responding to the City with comments regarding the lease. Gelineau agreed and suggested that the HMA get their comments to him by October 24, 2013. Page 2 of 5 Oosthoek agreed noting that he feels that it will be helpful to officials to see where the HMA stands on this. The HMA members agreed to hold a Special HMA meeting on October 23, 2013 at 7:00 p.m. for the purpose of drafting a response to the proposed lease for the Black Cow. There being no further questions or comments regarding this matter Earl thanked Roy Gelineau for attending the meeting. Approval of Minutes The minutes of the September 18, 2013 Harbor Management Authority meeting were presented for approval. Earl noted that he made several revisions to the draft minutes and sent them to members. There being no further questions or comments regarding the minutes, Troubetaris moved to approve the minutes of the September 18, 2013 Harbor Management Authority Meeting as amended, seconded by Neuman. The motion carried (8 -0). The minutes of the September 18, 2013 Executive Session held by the Harbor Management Authority were presented for approval. Troubetaris moved to approve the minutes of the September 18, 2013 Harbor Management Authority Executive Session, seconded by Neuman. The motion carried (8 -0). Facilities Suminsby reported that he has been informed that three people are taking advantage of the prepayment option for the season and have already prepaid for next season. Dever noted that one of the tenants is a new person. Approval of Rates for Dinghy Storage and Transient Rates for 2014 The HMA reviewed the rates for the storage of dinghies and the rates charged for transient use of slips at the marina. Oosthoek moved to keep the rates the same as this year as follows: Dinghy Rack $190.00 for the season (4/1/14- 10/31/14) Dinghy in Water $380.00 for the season (4/1/14- 10/31/14) Dinghy Winter Storage $380.00 off season (11/1/14 - 5/31/14) Suminsby seconded the motion. The motion carried (8 -0). Earl stated that the banners need to go back up on the McDonald's building advertising the availability of slips for next season. Page 3 of 5 Suminsby reported that he did a limited mailing of 1,000 postcards using a list of all registered boats in the area of Salem, Beverly, Danvers and Marblehead. Dever reported that he has been getting complaints about the condition of the hoist. He stated that he will talk to Mike Collins regarding how to proceed with this. He noted that he proposes to get quotes for a full and a half ton hoist. Dever reported that Marine Tech is doing the final lifting of the finger floats. He also noted that the pump out facility will be installed and explained where it will be located. Neuman stated that he is concerned about smell and that needs to be taken into consideration on the location. Suminsby reported that he drafted a plan for the Brown Building and will be meeting with Mike Collins to review it. Finance Earl reviewed the Finance Report that he received from John Dunn. Troubetaris moved to accept the finance report as submitted, seconded by McAleer. The motion carried. Bass River Dever reported that the next meeting of the Seaport Advisory Council is scheduled for November 7, 2013. Earl suggested that the City move forward quickly with permitting the lower Bass River in the event that we get the requested $50,000. Public Walkway Earl reported that the bids for the project are due by October 22, 2013. Grants Simon stated that there is nothing new to report. Neuman noted that the last grant was submitted in May of 2012 and it should be resubmitted. Neuman will forward the documents that he has to Simon and Dave Gelineau via email. Sea Station Earl reported that the operators of Sea Station are interested in going out of Beverly. He explained that they were going to use Salem until the facility was damaged last winter but the agreement was to pay $1,500 for the use of Winter Island and the Willows, and Salem also provided a storage shack. He noted that Marblehead let them operate for free. Page 4 of 5 Earl noted that Commercial Vessels are not limited to fishing boats. Neuman agreed but noted that fisherman should have priority. Carry In / Carry Out Earl suggested that the HMA take a look at implementing the Carry In/Carry Out policy that has been instituted at Lynch Park. He suggested that they could work on that over the winter. Next Meeting The next meeting of the Harbor Management Authority will be held on Wednesday, November 20, 2013 at the Beverly Public Library. Adjournment There being no further business to come before the Beverly Harbor Management Authority this evening, Simon moved to adjourn the meeting. Oosthoek seconded and the motion carried. The meeting was adjourned at 9:00 p.m. Page 5 of 5