by David Dahlbacka in All Ages, Assembly Square, Beat Reporter, Development and Zoning, Environment and Open Space, Events, Green Line, Housing, Mystic River, Orange Line, Union Square
Posted on August 25, 2012 at 12:50 pm
| August 29, 2012 | ||
| 6:00 pm | to | 8:00 pm |
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Somerville Housing and Community Development Committee Meeting
Wed. Aug. 29 6:00 – 8:00 PM
Somerville City Hall
2nd Fl. Comm. Rm.
93 Highland Ave.
Somerville MA (map)
This is the regular meeting of the BOA Housing and Community Development Committee.
Agenda includes report on whether covenants with IKEA and FRIT apply to future purchasers of the IKEA site at Assembly Square. Approval of Union Square Revitalization Plan.
The HCD Committee evaluates proposed zoning changes and makes recommendations to the BOA.
For more information, see:
- Assembly Square Mixed-Use Development Project
- Union Square Revitalization Plan
- Somerville Meeting Portal
- Aldermanic Standing Committees
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Beat Report: 8/29/12 Housing and Community Development Meeting
LaFuente, Taylor, White, Sullivan (Gewirtz absent). Glavin, Dana, Proakis from staff. Mayor Curtatone late in meeting.
Bottom Line on Top
SRA voted including IKEA in urban renewal plan as minor plan revision, not necessary to take to full board. No answer to question on effect of IKEA property sale on covenants with city. Union Square Urban Renewal Plan up for consideration. White concerned that SRA is getting authority to take entire 117 acre site, provided it can get the money. Question opened of whether SRA can issue bonds that would obligate the City. Mayor says we need to approve Union Square plan now to hold state to deal on Union Square T stop. Next H&CD meeting scheduled 9/13 @6PM, public hearing to be rescheduled from 9/19.
Rough Notes [Not in chronological order.]
Assembly Square IKEA
Disposition of Yard 21 with FRIT. What about IKEA?
LaFuente disclosed that Federal is a client of Flag Graphics, which he owns. Has no contract with them right now.
Anne Thomas is working with special attorney to answer question of effect of IKEA selling land on covenants with city.
White: Want copy of land disposition agreement so I can read it. E-mail it to me.
Glavin: Will do it.
White: Leave it on the agenda. We may want to add IKEA to Redevelopment Plan.
Glavin: IKEA is different issue. IKEA was included in urban renewal plan. SRA voted for a minor plan revision. Would not necessary go to the full board.
White: Was it a site for acquisition in original plan?
Glavin: Was in original boundaries.
White: Send me copy of plan.
White: Does SRA have authority to issue bonds for development?
Glavin: Not forbidden to issue bonds. Our model here does not have material holdings to allow them to issue bonds themselves.
Sullivan: BOA still has to vote a bond, right?
Glavin: We assume a BOA authorization for a bond issue.
White: Ask counsel to verify whether SRA can do takings. Could possibly have funds go to SRA.
Under MA law, are there limitations on SRA from floating bonds that would obligate the City?
Glavin: We’ll address that.
Continue this issue.
Union Square Revitalization Plan Approval
Glavin: 8/16, gave formal document and short presentation by Mayor. There was an enormous agenda. Want to walk through presentation tonight. OK?
Want to address 79 SomerVision Goals,
Policies, and Actions. 4300 net new jobs, 850+ new housing units, new publicly accessible open space, 50% new trips non car., conserve neighborhoods.
Area plan around T stop. D-1 through D-6 parcels. These parcels will take advantage of T-stop. D-2 is first phase parcel. Includes T-stop area. There are other parcels with inefficient or obsolete About 117 acres. 487 parcels. Staff had to go and assess condition of all parcels. Over 1/3 are in moderate or severe disrepair. 70% have some kind of disrepair.
White: Are these blocks D-1
Glavin: No, within the entire Urban Renewal area, not just the D parcels.
White: SRA voted that this is a decadent area?
Glavin: Yes. Must meet state guidelines for such a finding. D-2 is first phase. Is directly involved with T-station. Can create a comprehensive development plan for area that is either privately owned or owned by city. Area has tremendous future value for transit-oriented development. Land area is about 200K s.f., could support the development of 600K s.f. of development under current zoning. Could produce $1.7M per year tax revenue. Currently revenue is $40K/year. Significant revenue opportunity, plus 700 jobs on site.
White: Is that D-2?
Glavin: Yes.
White: Right now all privately owned parcels bringing about $40K?
Glavin: Assessors records suggest that.
White: Total cost of acquisition $8-10 M.
Glavin: Full cost of putting together block is $6 M (acquisition, demolition, etc.). Would ask for $2M for engineering and preliminary design to improve parcel. Need to correct flooding problems (see plan p. 70).
In our communications to owners, we’ve done our best to inform them that this block D-2 is our current objective. MOA attached to doc outlines relationship with MBTA and MassDOT. MBTA made it clear how it intends to accelerate T-stop and do initial changes to support first two stations. Stated timetables and plans were improvement on earlier plans. City agreed to acquire land and make available to T part of the land for the station. City transfer parcels via easement. City retains air rights and ownership of development parcels. Easement for drop-off and turnaround.
Rationale for acquiring parcels: Control our destiny, strengthen connection station to square, and maximize value of new development. Accelerating T-station very important. Easier to attract development with this in place.
Map on board: T station, in green.
Crosshatched are easements. Other green parcels are impacted by T-stop. T could deal with them all separately. We would assemble the parcel ourselves.
Taylor: Report doesn’t say where $ is coming from.
Glavin: The D-2 parcel would be paid for by city bond issue.
Taylor: Timeframe?
Glavin: After approval and getting financing, we would start immediately this fall with planned acquisition, relocation, etc., next spring.
Taylor: Federal funding available?
Glavin: State hopes it will be available. State prepared to fund this station itself.
Taylor: Capuano felt federal funding was a dream before 2017.
Glavin: Capuano supports it, but realistic about federal funding.
Taylor: I think we’re moving too fast. Businessmen in Union Square are nervous. We need more outreach. Need better notion of funding. Concerned about rest of parcels. Public hearing scheduled for next week? Want to postpone that. Want to reach out to businesses first. Some believe all parcels to be taken at once. Not true. Want to avoid that. We can slow down and still meeting deadline.
White: Public hearing scheduled?
LaFuente: Public hearing Sept. 19.
White: Biggest problem is I don’t know what I’m voting on. We’re declaring whole area decadent.
Glavin: Maybe $26M acquisition for all parcels. Not only D-2. First phase is only D-2. Believe that identifying parcels lead to opportunities for developers to embrace the plan, show their own plans. We don’t have to take the whole property.
White: I grew up in that area. People don’t like to be called “decadent”. Will their house be taken? Would like it spelled out. We fund D-2. We get it done. Could SRA acquire other parcels with $10M they get for that? Don’t like giving total rights of eminent domain to SRA. Would like to limit it to certain parcels. Would SRA have full rights to acquire everything, D-1 through D-7?
Glavin: This plan is intended to implement our goals of the last 10 years. SRA could do this, if it had the capacity.
White: By voting for this, we give full rights to SRA if they have $.
Do you have assessed values of all parcels?
Proakis: See Table 4-2, pp. 62-64.
White: What’s total assessed value?
Glavin: Don’t have it broken out.
White: Do you have a map with these parcels?
Proakis: On p. 90, tiny number gives parcel number. Look at chart for parcel owner and assessment.
White: Please blow up the map and consolidate everything there with total assessed valuation.
How does assessed value match up with costs on p 70? $3.7M?
Glavin: Acquisition costs based on assessed values.
[COMMENT: Assessed values are far below market value.]
White: $160K for further analysis?
Glavin: Want to go from assessed value to actual cost. $160K only for D-2 parcel.
White: Please delineate T easement area.
Glavin: OK
Taylor: Really think we’re moving too fast. Want to put public hearing off to October. Residents and businesses both affected by this. Want more meetings with businesses. Some businesses provide particular services that are needed. Gas station by post office owner was upset. No other gas station there. You need to take that into consideration. There’s a convenience store. If people go court, how long would that delay it?
Glavin: Believe process of approval should authorize us to move forward. If there were challenges, it wouldn’t stop authorization of the plan. Don’t believe a challenge would be successful if it related to process or authorization.
Taylor: Would delay it.
Glavin: Might not. Special counsel knows about it. Basis and process would give us way to move forward. About outreach, we are contacting Union Square Main Streets. All have made sure all persons know how to reach us. Letters very clear that this is the first phase, later acquisitions could be years from now. Unique letter to each property owner. Don’t want to delay the process. Would hold up MBTA.
Taylor: Want a presentation thru the Chamber
of Commerce.
[Mayor Curtatone joins meeting.]
Mayor: We’re continuing with outreach. Timelines are based on political realities. We need to be well down MBTA path in next 2 years. MassDOT Board of Directors will take up $50M we’re requesting for design. We don’t have time flexibility. We jeopardize process.
Taylor: You’re talking about spring 2013 for delivering easements. A couple of months won’t matter.
Mayor: We don’t have an extra couple of months. We’d have liked to have agreement months ago.
Taylor: I can understand D-2. I’m getting calls from other areas. People don’t understand it’s not happening this year. You sent letter, but need personal contact.
Mayor: We will meet owners individually and collectively to lay out next 15-20 years.
Taylor: I don’t agree with taking other parcels beyond GLX area.
Sullivan: If there’s a property owner who thinks property worth more, what then?
Glavin: Bound by state rules to prevent SRA from giving people more than it’s worth. Owner has right to sue for higher property. We would be able to prove fair market value. We must be impartial and have appraisals done by third-party people at arm’s length.
[COMMENT: The assumptions are crucial. If you assume low-end retail, value is less than if assume high-end research & development.]
Sullivan: Have an example of another municipality that did this?
Glavin: Urban Renewal agencies many places. Some areas, like A.S., had success. Others had planning priorities change. Several dozen cities have done this.
Sullivan: When we built Capuano School, we bought many houses. Didn’t take any.
Mayor: Those were consensual eminent domain for a public purpose. Took lands in Boynton Yards. Value was contested; landowner had to pay us more. Same in A.S. We were ready to move. Negotiated by FRIT and other landowners. Inner Belt was a poor example. So was West End of Boston. Most recent was Boynton Yards and Chuckie Harris Park.
White: D-2 is the parcel we need. D-1 and the rest may be taken many years from now. It’s a problem when you designate a site as urban renewal site because of possibility of property being taken. Affects value of parcel, creating anxiety. Suggest designating others as potential sites requiring future votes.
Glavin: Offer substance of plan for good and valid uses. Other parcels are essential for future success. We believe they should be designated now. We believe it will catalyze development by other landowners. Won’t need SRA to acquire.
White: Does this need 8 votes?
Counsel: Will defer to special counsel.
White: Bond issue requires 8 votes.
Mayor: We persuaded the state of this plan. We need a plan for them and for bonding agencies. Most of these existing uses are out of current zoning. They have opportunities to benefit. Want this to show city is ready to do what it takes to succeed at this. We needed this to persuade state.
White: MOA only deals with D-2.
Mayor: Yes, but we sold the whole master plan. We’re asking state to invest $300M regardless of federal funding.
LaFuente: I visited every lot. They were carefully chosen. Also the biggest eyesores. We can do what we did in Boynton Yards as a patch-up job. I’m in favor of a whole area plan. We can deal with irresponsible property owners. The gas station is unsightly. Should have been improved 20 years ago. We are going to bond $6M to get D-2 going. People are going to move there. Ones not affected wouldn’t do anything. Patching things won’t fix it. We’re doing that in Broadway, Magoun Square. Don’t see patchwork.
Agree with Taylor that we need full clear outreach. Businesses can then plan. D-2 is mostly vacant land, except for Anestis Metals. Important to deal with all.
Question: In D-2 MBTA area, suppose a private developer wanted to buy area. Would $ go to city toward bond?
Glavin: Land bought and owned by SRA. MBTA has access by easement. SRA could offer entire block to developer. Developer could discuss building over air rights. If SRA sells or leases to private party, SRA would receive $ from sale of land. At discretion, could continue to maintain momentum of plan. We believe that with significant development on site, potential build out would be almost 600K s.f., could be $1.7 M/year tax revenue. Core gives SRA and BOA a DIF financing opportunities.
Mayor: Whatever gives us most financial flexibility is good. Is it a DIF? Another cubed? We will present best option to Board. Want to minimize strain of debt service.
White: Not talking about piecemeal. Sometimes have an area that doesn’t live up to potential. We’re ahead of the game because of GLX. Don’t know how market will react in two years. We’re putting out plan where people’s property is in limbo for years. Giving SRA ability to take control of $26M. If only D-2, that’s one thing. They do the whole thing? Convention center?
Mayor: Most of other blocks (except D1) will be opportunities for private deals. Most carry uses eliminated from zoning. Muffler shop can’t expand, it’s not in zoning. Expanding or leaving obsolete uses not the right thing. Conversation happening between owners and potential developers. Some would want to stay there, can’t happen.
White: We did vote in the zoning. There are a large number of uses that aren’t consistent. No assurance that we can do this, and in the interim, we are impacting property owners. Without timelines, we are giving a lot of eminent domain rights to SRA. If Mitt Romney elected and we have a Republican house, economy goes downhill. Then what? Residential?
Mayor: Long term transformation takes 20-30 years. People didn’t think we’d get the Orange Line, we have it. Need certainty that city committed to plan. Value of D-2 is that the rest of the development will also happen. The market alone won’t do it unless city is backing the plan. If we hadn’t done that in A.S., it wouldn’t’ve happened.
Glavin: Comprehensive Plan and allowing SRA to do whole thing tells development community something. Rest of it could be 1.6M s.f. You’ve taken away flexibility of an owner’s property,
but that gives them an opportunity as well.
Proakis: A number of people have contacted us. We’ve met them, Mayor has met them. If you’re getting feedback with confusion, let us know so we can clarify. We aren’t going into D-6 next month.
White: Fact that you can designate parcels as potential for acquisition with a T-stop coming, don’t know that developers will come before T-stop is here. Concerned that you’re authorizing up to $26M. We don’t have a designated developer like we had in A.S. Process will take many ears. Giving that kind of power to SRA right now makes me uneasy
Mayor: We are in sync. In A.S. we had Urban Renewal Plan and parcels before we had a developer. Some parcels may have revenue generating business. May acquire the parcel and leave them there. We learned from A.S. that if it’s predictable and certain that the City is moving forward, the deals will happen. Conversations have begun already. Prices will get higher as the economy improves. A.S. parcel values have gone up.
The gas station can’t be sold for another industrial use. Only could be sold for residential use. Big problem is scattered atomic parcels. Consolidation is useful.
D-3, D-2, junkyards & contamination. D-7 and D-6 will demand a lot of outreach. D-4 is old auto bodies with contamination. Cleaning up parcels will do wonders for square. Bring some of the material to next meeting as requested by Taylor and White. Don’t see a problem with doing the whole thing at once.
I’ve felt effects of short-term thinking.
Proakis: Charts pp. 61-69 had some discrepancies. We’ve printed updates. Web version is correct; your hard copies are not yet.
Glavin: This does not affect the points we’ve made about D-2.
LaFuente: Great to know who you’ve talked with.
Mayor: I have spoken to many people. We can make their names available to you.
Proakis: In D-2 are a series of parcel owners that end up being the same people. Four entities are real owners of D-2.
White: You’ll get back with owners of T-stop area. Not a fan of junkyards. If we had a developer to backstop this now, would be better. By approving this, give authority to SRA to do takings. Can BOA retain power to approve takings? Don’t know next Mayor or BOA. Are there any protections for our exposure?
Glavin: Taking plan for D-2 based on fair market value. Authorization of SRA allows them to use eminent domain and do direct negotiations. Having an interlocking BOA vote would be an impediment in negotiation with developers.
Mayor: BOA is still bonding authority.
White: Can SRA float its own bonds?
Glavin: We’ll get back to you about that. Should SRA petition us to create a DIF or bond to underwrite the cost of an acquisition, BOA can vote on that.
Mayor: BOA is the DIF governing body, not the SRA.
White: Say we vote a bond issue, they take us to court and win, then we are obligated to a further bond issue.
Glavin: If that’s the case, we’d be back to you for further authorization.
LaFuente: Next meeting 6PM Thurs. Sept. 13th to continue discussion. Hearing to be rescheduled.
Other Business
Affordable Housing for Singles
Two questions: (1) Is affordable housing available for singles? (2) Can a single join a lottery for 2 bedroom units?
Of 8 or more units, 1 available as affordable housing. If there was a studio or 1 bedroom, could make it available to single person.
Maxwell’s Green has 2 single person units.
Singles cannot join lottery for 2 bedroom units. 1 person per bedroom required. Might be a health or accessibility override. If couldn’t find someone for a 2 bedroom, might offer it.
Q: Is a pregnant woman eligible for 2 bedrooms?
A: If in third trimester, or if adopting.
Q: Could someone unrelated form a household?
A: Established relationship, for the duration. Not just a roommate.
Remark: There are artists in community who’d like work space.
A: Some units are larger than others. There are units with artist’s space.
Sullivan: Ordinance makes sense. Don’t want to turn down a mother with children for an artist.
A: Could look at new housing inventory.
White: Are there written guidelines?
A: Use HUD guidelines for basic guidelines.
White: Please e-mail us copies of those.
Closed.
South Street Lots and Dog Lot
Glavin: Parcels used for transitional uses, including urban agriculture. Want to continue agriculture. Looking for another site. None found yet.
Keep it open.
Magoun Square Business Owners Meeting
Glavin: Larger issue of Broadway updates. Met with 8-10 business leaders. There are some investments occurring. Magoun is important. Included in block grant a central Broadway initiate seed money $125K strategies to meet needs of area. Planning and design program with MIT students to analyze opportunities.
LaFuente: Many store fronts still closed. Any plan to aggressively recruit businesses? Or waiting for GLX? O’Donovan concerned about area.
Glavin: Square interesting to many commercial interests. Need to improve ability to reach out. Have spoken with Accion and to the State for access to capital. No program identified yet, will address it with seed money. Want businesses to be sustainable.
Sullivan: East Somerville Main Streets and Union Square Main Streets have good programs. Something similar in Magoun?
Glavin: Main Street programs very important. They need to be efficient, because we have to underwrite them. We have started to talk about the Main Streets find efficiencies by working together. Have them work with dedicated staff on Central Broadway. Discussing this program now.
Continue.
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