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Community Preservation Committee Minutes 03/07/2011

Community Preservation Committee
March 7, 2011
Minutes

Members present:  Frederick Keator (FK), Acting Chair, Catherine May (CM), Joe G. Strauch (JGS), Suzanne Pelton (SP), Eugene Chague (EC), Dia Trancynger (DT),  Jim Sorrentino (JS), and Kate McNulty Vaughan, (KMV).  

Olga Weiss absent.  

Also in attendance: Mary Albertson (MA), Town Planner.   

FK opened the meeting at 7:03 p.m.  

The consensus of the members was to table the minutes until the end of the agenda to facilitate the opening of the public information hearing.  FK began the public hearing at 7:05 p.m.  He said the public information hearing is an opportunity for the public to comment on potential FY 12 community preservation projects.  He said the allocation requests are as follows:

FY12 PROPOSED PROJECTS
Amount
Lenox Library Debt Service
$133,000
Lenox Affordable Housing Trustees
Home Ownership Programs
$100,000
Sawmill Brook Housing Land Purchase
  $200,000
Lenox Housing Authority – Porch Restoration Alternative 1
$50,000
Lenox Housing Authority – Porch Restoration Alternative 2
$85,000
Berkshire Scenic Railway Restore/Preserve Open Space
$250,000
Lenox Historical Commission – Street Signs
$8,000
Administration
+/-$20,000

FK reviewed the funds available for FY12.  He said that the amount of money in the bank is approximately $522,000.  CPC can also make recommendations to Town Meeting based on anticipated revenue.  Anticipated revenue includes the 3% local surcharge and potential state matching funds.  The Town Manager projected $420,000 in anticipated revenue for FY 12.

FK explained that the town is not obligated to spend CPA money.  However, ten percent of the annual budget must be reserved for each of the following:  historic preservation, community housing and open space and recreation.   Currently, the town is obligated to pay for the library debt service.  The town is required to allocate five percent to administration.  He concluded by saying that the CPC makes recommendations to Town Meeting.  The projects must be approved at Town Meeting to receive funding.  FK said the CPC received one letter for Jo Anne Huntley Magee.  

Discussion ensued regarding the merits of each proposal.  

Peter’s Property Study  

KMV questioned why the Town Manager requested CPA funds.  She suggested that this project is a good fit for the Berkshire Regional Planning Commission (BRPC).  She suggested that the town use BRPC technical support to prepare this study.  She asked MA if the Town Manager has talked to BRPC.  MA said she is not sure but thought the engineering and surveying components were outside the expertise of the BRPC.  

JGS voiced concerns about using CPA money to fund a study for commercial and industrial projects.  He asked MA if commercial and industrial development qualifies for CPA funding.  MA said CPA funds can be used to prepare a study regarding open space.  The funds cannot be used to study commercial and industrial development.   EC said that three aspects of the study are not eligible for CPA funding.  Discussion ensued regarding the housing portion of the study.  The application says housing but at the presentation the Town Manager suggested that the housing component could be affordable housing.  Affordable Housing is an eligible CPA activity.  FK supports the concept of the study.  He said it might not be feasible to purchase the entire parcel for open space preservation. A limited commercial and/or industrial development plan might provide the resources to preserve the majority of land as open space.  

The consensus of the committee was to rank this as a low priority project.

Curtis Porch

KMV asked if the state has committed to continued support for the project.  Martha Joyner, Director of the Lenox Housing Authority, said that she anticipates that the state will continue to provide matching funds.  The consensus of the committee was to rank this as a high priority project; but, suggested that it should be funded at the lower amount of $50,000.  

Berkshire Scenic Railway

The committee agreed that the Berkshire Scenic Railway is a wonderful volunteer organization.  EC and JGS like the project but questioned the use of open space and recreation money to fund this project. They view the project as the restoration of a historic site and suggested that it be classified as historic preservation.  KMV agreed that it is a nice project but noted that it includes the demolition of an industrial building and she is concerned that this erodes the industrial tax base.    

The consensus of the committee was to rank this as a medium priority project.  Overall the committee questioned funding the full request for $250,000.  The committee is inclined to provide some type of funding for this project.  It is important to show the state that the town supports the project and is willing to provide local funding.  

Historic Street Signs

JS said that the town has invested a great deal of time and money on the restoration of the historic village and it seems appropriate to spend a modest amount of CPA funds to ensure the street sign detail is correct.  DT also views this as a good project.  

FK asked SP about future historic preservation projects.  SP said the next project is the restoration of the Church on the Hill Cemetery. She plans to apply for a Massachusetts Preservation Project Fund grant.  This grant requires a local match.  Her plan is to apply for FY 13 CPA funds to serve as a local match.  SP said she does not anticipate any additional small project.   

FK is concerned that there are no matching funds.  He also asked MA if she contacted Jeff Vincent, DPW Director, regarding this application.  She said she has not talked to Mr. Vincent but she will follow-up with him.  The committee agreed that they would like Mr. Vincent’s input.  The consensus of the committee was to rank this as a medium to low priority project

Lenox Affordable Housing Trust and Sawmill Brook Land Purchase

FK suggested the two affordable housing projects be discussed together.  The consensus of the committee was to rank the projects as medium priority.  FK informed the committee that last week there was a workshop to discuss the Sawmill Brook application.  At the February 28 - CPC meeting the consensus of the committee was to investigate the idea of the town purchasing the property instead of the Southern Berkshire CDC (CDC).   FK explained that the CDC has a Purchase and Sales (P&S) on the Bartoni property.  The concept is for the CDC to assign the P&S to the town and the town would give the CDC a Designated Developer Agreement.  FK cautioned that this is a preliminary discussion and the town is reviewing this concept with Town Counsel.  MA will provide information to the members as soon as it is available.  

Discussion ensued regarding the eligibility of the project as affordable housing and open space.  JGS and EC questioned the use of Open Space funds for this project.  EC and JGS noted that only a small portion of the property is available for development.  Much of the proposed undeveloped land is wetlands and includes a vernal pool.  JGS and EC view this as an affordable housing opportunity not an open space opportunity.  JGS is concerned that this location is not an ideal for families with children.  

KMV and FK both explained that the Bartoni property has been the subject of many development proposals.  The Sawmill Brook Affordable Ownership project seems to be a good fit with the neighborhood and the needs of the town.  David Klausmeyer, Chairman of the Lenox Affordable Housing Committee and Trustees voiced his support for the project.  

DT suggested that the land purchase be handled through the Affordable Housing Trust.  She asked how the land purchase would be facilitated.  FK suggested that the project could be bonded for five years.  He said it would amount to approximately $120,000 per year over a five year period.  FK suggested that the interest payments would be minimal and it would give the town liquidity.  The purchase would be structured as a loan.  The money would be repaid to the town probably upon completion of the project.  DT noted that she likes this approach.  

Elizabeth Strauch suggested that the town consider both rental and ownership opportunities.  She is not convinced that ownership is the best alternative.  FK and KMV said that the Housing Production Plan points to the need for affordable ownership opportunities.   They support the town purchasing the property and keeping it for the development identified in the plan.  FK said that Mr. Geller has made it clear that he could proceed with a rental project without the CPA funding.  The reason to consider this project is to preserve it for what the town needs.  FK also noted the ownership project would be more advantageous to the tax base.  A rental project would generate far less tax revenue for the town.  

DT said she has faith that the Affordable Housing Trustees would make an informed decision regarding rental and ownership needs and opportunities.  She thinks this project is not only feasible but it is in the best interest of the community.  DT and FK said this is a proactive approach to dealing with the town’s housing needs.  

JS is concerned that it will take many years until the project is shovel ready as an affordable ownership project.  JS also asked if there was a current appraisal and questioned if $600,000 was a fair price.  FK asked Mr. Geller to comment on these questions.  Mr. Geller suggested that he believes it is realistic to begin the project within three years.  Mr. Geller explained that there is not an appraisal.  Mr. Geller explained that the property was originally priced at $800,000 and they negotiated down to $600,000.  The land owner has indicated that there are other interested parties.  It is a gamble if the P&S expires and the land goes back on the market.  

FK said that his initial reaction to the Sawmill Brook application was negative.  He also had reservations about giving the Housing Trust additional funds.  However, through the process he recognizes not only the need but the state mandate for affordable housing.  He likes the Sawmill Brook project because it will create affordable housing and preserve open space.  

Mr. Klausemeyer reiterated his support for the Sawmill Brook project but also wanted to ensure that the CPC reviewed the Affordable Housing Trust application for funds as a separate project.  

KMV thanked JGS for his good questions and asked him if he felt his questions had been answered.  JGS said he is not convinced that this is a good location for a housing development for families with children.  He felt there would be no place for the children to play.  He also questioned if the mix of market rate and affordable housing units will work.  Mr. Geller suggested that the CDC viewed this as a good location for families because it is close to schools and the village.  

Martha Joyner asked how applicants for the affordable units will be vetted.  She asked how the project will be managed and if there will be extra fees to pay for maintenance.  She is concerned that maintenance will become a financial burden.  She also asked about local preference.  Mr. Geller said the project will be set-up as a condominium association. When one applies to purchase a unit the condominium fee is figured into what one can afford as a monthly payment.  The intent is to not make vulnerable families more vulnerable.  Mr. Geller said that the affordable units will be offered through a lottery.  The lottery can be weighted for local preference.  He explained that a local resident would be given additional chances in the lottery.  

FK thanked everyone for a thoughtful discussion.  He concluded by saying that the CPC will be meeting on Monday – March 21 at 7:00 P.M. to discuss final recommendations to Town Meeting.  

JGS made a motion to approve the February 7, 2011 minutes with corrections offered by SP. Seconded by JS and the committee voted unanimously to approve the minutes.  KMV abstained.  CM made a motion to approve the February 28 minutes.  Seconded by JS and the committee voted unanimously to approve the minutes.  

At 9:08 p.m. CM made a motion to adjourn. Seconded by DT and the committee voted unanimously to approve the motion.  

Respectfully Submitted
Mary Albertson, Town Planner
Approved:   3/21/2011