TOWN COUNCIL MAJORITY OFFICE
REAL ESTATE ACQUISITION AND DISPOSITION COMMITTEE
OCTOBER 23, 2007
PRESENT William P. Horan, Jr., Chair, Councillors Jason Rojas and Eric Thompson
ALSO Melody Currey, Mayor
PRESENT Jeanne Webb, Director of Development
Rich Kehoe, Town Council Chair
Donald H. Pitkin, Town Council Minority Leader
Rashid Hamid, Preferred Developer Partner, Burnside Avenue properties
Susan Kniep, 50 Olde Roberts Street
CALL TO ORDER
-Chair Horan called the meeting to order at 6:35 p.m.
APPROVAL OF MINUTES
July 10, 2007
MOTION By Jason Rojas
seconded by Eric Thompson
to approve the minutes of the July 10, 2007 Real Estate Acquisition & Disposition Committee meeting.
Motion carried 3/0.
OPPORTUNITY FOR RESIDENTS TO SPEAK
Susan Kniep, 50 Olde Roberts Street, had questions regarding the 482-484 Burnside Avenue issue, but agreed to move on to New Business and ask her questions at the appropriate times.
NEW BUSINESS
478, 482,484 Burnside Avenue and 550-560 Burnside Avenue
Development Director Jeanne Webb distributed a package of documents and gave a history of the town's interaction with Dr. Mahmood Yetka and Mr. Rashid Hamid. Director Webb explained that Dr. Yetka and Mr. Hamid were the only persons who responded to the Request for Proposal (RFP) regarding the property. Director Webb also explained that a major reason for agreeing to sell this property for $12,500.00 was because Dr. Yetka and Mr. Hamid agreed to build a site (once completed) worth $2.1M. Director Webb explained that an appraisal was not done on the parcel because the transaction was a negotiated sale.
Susan Kniep requested a copy of the Purchase and Sale Agreement, which has not yet been drafted. Ms. Kniep requested the minutes from the Redevelopment Agency meeting(s) that extended the time period for the drafting of a purchase and sale agreement with the preferred developer. Director Webb did not have the minutes on hand, but did agree to produce the minutes for the Committee and the Town Council before the public hearing on any recommendation out of Committee.
Councillor Rojas inquired about the factors that resulted in the $12,500.00 purchase price, and the extent of drainage issues on the property. Director Webb and Mr. Hamid discussed the property, the price, and the drainage issues. Director Webb also noted the value, appeal, and longevity of having a brick building on the site like the one proposed by Dr. Yetka and Mr. Hamid at 482-484 Burnside Avenue.
Councillor Thompson inquired about the type of building expected at the property, and Director Webb explained that the present proposed brick building was negotiated with Dr. Yetka and Mr. Hamid after their initial proposal, which was not as aesthetically pleasing as the present proposal.
Director Webb discussed the objectives of the Redevelopment Agency regarding development on this site. Minority Leader Pitkin requested a copy of the plan objectives. Ms. Kniep requested a copy of the RFP. Both will be provided to the Committee and the Town Council in advance of any public hearing on this issue.
Ms. Kniep re-visited the issue of whether a written agreement exists between Dr. Yetka and Mr. Hamid and the town, and both Mr. Hamid and Director Webb discussed how the negotiations process ensued and how they have yet to result in a written agreement. They do have resolutions evidencing the negotiations and have been identified as the preferred developer. Mr. Hamid indicated that once the property is transferred in title from the town to the Redevelopment Agency he will immediately have his attorney move forward with the hope of beginning work at the site in November 2007.
Councillor Rojas inquired whether the drainage issue caused part of the delay in proceeding from 2005 to the present, and a general discussion of the drainage issue ensued, and the drainage issues were sited as a cause for significant delay.
Councillor Thompson inquired about the equipment expected to be installed in the building. Minority Leader Pitkin noted that Redevelopment Chair Bill Miller had provided an estimate of $50,000 of personal property tax revenue that would be realized by the town each year, above and beyond the real estate tax revenue realized on the $2.1M building.
Councillor Rojas expressed the concern of the Town Council that the building could become a non-profit organization and the town would not realize tax revenue. Director Webb explained that various restrictions and "claw-back" provisions could be included in the eventual deed.
Chair Horan noted that 478, 482, and 484 Burnside Avenue are part of one parcel, and has been generally referred to as 482-484 Burnside Avenue.
Councillor Rojas noted that the 478-482-484 Burnside Avenue parcel and the 550-560 Burnside Avenue parcel are both proposed to be transferred from the town to the Redevelopment Agency. A general discussion of the status of the ownership and transfer process ensued.
Chair Horan noted the intangible benefits reaped by the town by obtaining the property initially, that were noted by the Mayor at the most recent Town Council meeting of October 16th. A general discussion regarding the referral to the Real Estate Acquisition & Disposition Committee ensued.
MOTION By Jason Rojas
seconded by Eric Thompson
to recommend that the Town Council approve the transfer of
478-482-484 Burnside Avenue and 550-560 Burnside Avenue from the
Town of East Hartford to the Redevelopment Agency, and to schedule a
public hearing on the recommendation.
Motion carried 3/0.
ADJOURNMENT
MOTION By Jason Rojas
seconded by Eric Thompson
to adjourn (7:42 p.m.)
Motion carried 3/0.
cc: Mayor Currey
Town Council
Rich Gentile, Assistant Corporation Counsel
Jeanne Webb, Development Director
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