City of Salem Zoning Board of Appeals
Minutes of Meeting
Wednesday, August 27, 2008
A meeting of the Salem Zoning Board of Appeals (“Salem ZBA”) was held on Wednesday, August 27, 2008 in the third floor conference room at 120 Washington Street, Salem, Massachusetts at 6:30 p.m.
Those present were: Robin Stein (Chair), Rick Dionne, Rebecca Curran, Beth Debski and (at 7:30) Annie Harris. Also present were: Amy Lash, Staff Planner and Thomas St. Pierre Building Commissioner
1. Approval of Minutes – July 16, 2008
Rick Dionne made a motion to approve the minutes seconded by Robin Stein and approved 4-0 (Stein, Dionne, Debski, Curran).
Change to Agenda
Stein announced the petition for 43 School Street as well as the petition for Shallop Landing at Szetela Lane and Fort Avenue would not be heard at the August meeting but would instead be hearing in September. Stein also announced a member would be late and there is a new order for the agenda items.
Petition of DANIEL LEBLANC seeking a variance from the distance an accessory structure is required to be from the side and rear lots line to retain an existing 11’ x 29’ pergola enclosure, and a variance from height in stories to retain an existing 3rd floor deck at 71 ORCHARD STREET (R-2).
LeBlanc said he purchased the house in May of 2007 and the structures in question were already present on the property. He is looking to get approval for these structures, which include a 3rd floor deck as well as a pergola enclosure which surround He presented the Board with pictures. Curran confirmed that granting variances would allow the structures to stay. Tom said yes, it is just dimensional relief that is required.
Stein opened the public portion of the hearing.
Janet Green (72 Orchard Street) said that the structures were in place prior to their ownership of the building. Green said the look of the property has been improved by the current property owners. Green said the structures weren’t a problem before and they aren’t a problem now.
Paul Prevey (Ward 6 Councilor) spoke to LeBlanc and know he is trying to rectify a situation he was handed. Prevey encouraged the Board to vote favorably.
There being no further comment, Stein closed the public portion of the hearing.
Stein said it’s a minimal dimensional request. Curran made a motion to approve the requested variances at 71 Orchard Street subject to two (2) standard conditions, seconded by Dionne and approved 4-0 (Stein, Dionne, Debski, Curran).
Petition of RONALD MERCIER seeking a variance from the distance an accessory structure is required to be from the side and rear lots line to construct a 24’ x 24' garage at 21 CIRCLE HILL ROAD (R-1).
Mercier said he was looking for variances from front and side setbacks. He introduced his contractor who confirmed it would be one level. He said the property is not level and it has ledge and slope.
St. Pierre confirmed it was for a residential use. Curran confirmed it was a single family. Mercier said abutting neighbors confirmed they have no objections.
Stein opened the public portion of the hearing. With there being no comment, Stein closed the public portion of the hearing.
Stein said certainly there are a shape and topography issues that force you to this location. Debski made a motion to approve the petition, subject to seven (7) standard conditions, seconded by Rick Dionne and approved 4-0 (Stein, Dionne, Debski, Curran).
Petition of GARY & JENNIFER SANTO seeking a variance from minimum rear yard depth and a special permit to alter a non conforming structure to allow for the construction of a mudroom attaching the existing garage to the main structure and the addition of finished space above the garage at 25 WASHINGTON SQUARE (R-2).
Walter Jacob said the garage currently has a Mexican motif, which does not fit in with the neighborhood. The Santos would like to have something that looks more like the house. They would like to build a one-story structure within the rear yard setback, which connects the garage to the main structure. They are increasing the height, though it is just a gable. There will be shingle siding on the garage. From the Williams Street façade, it will be keeping with the neighborhood. Jacob said the gable can’t continue completely back, but what we have done helps pull the addition away from the side yard setback. We are proposing copper downspouts and slate. The goal is to have it keeping with the existing house and neighborhood.
St. Pierre said this is an existing accessory structure, which is being connected to the main structure. Curran asked how much higher the garage would be. Jacob said about 10 feet. Curran asked how many square feet are being added. St. Pierre said 696 sq. ft., not all is usable. Jacob said some space is in the eves; it is going to be done more for aesthetics rather than for more space. St. Pierre noted the staircase would be a pull down. Dionne said that is looks like a nice project. Debski and St. Pierre said the drawings were excellent. Dionne said he thought it was keeping with the neighborhood.
Dionne made a motion to approve the petition subject to eight (8) standard conditions, seconded by Stein and approved (4-0) (Stein, Dionne, Debski, Curran).
Petition of WILLIAM WHARFF requesting a special permit for a change in nonconforming use and variances from maximum height (feet and stories), minimum lot area per dwelling unit, and required parking to allow for construction of a third and fourth story and the conversion of the current assembly hall to seven residential condominiums at 17 NORTH STREET (R-2).
Attorney Scott Grover addressed the Board and said he would like to have the petition treated as an amended petition. Grover reviewed the relief needed, variances include: height, lot area per dwelling unit, and parking. St. Pierre said there is also a special permit needed to change the nonconforming use.
Stein said that she would be willing to condition that there be eight (8) spaces as shown on the plan.
Stein opened the public portion of the hearing. With there being no comment, Stein closed the public portion of the hearing.
Harris made a motion to approve the variances and special permit. With ten (10) standard conditions as well as one (1) special condition that there are to be eight spaces as shown on the plan. The motion was seconded by Stein and approved (4-0) (Stein, Harris, Dionne, and Curran).
CONTINUED: Petition of SALEM POINT RENTAL PROPERTIES, CORP. requesting to amend the decision dated July 14, 2004 to remove all references and requirements that any units be owner-occupied, and allow use of all units as either rental or ownership units at 50 PALMER STREET (B-1).
Attorney Bill Quinn said this is their second appearance before the Board. Quinn noted that he sent the Board a letter requesting to change the name on the petition. Quinn said the first time they were before the Board was a reality check and they heard many concerns including concerns over management. Quinn said there are units ready to be occupied at 50 Palmer Street. Quinn said they think the best future use of the property would be to have affordable rental housing allowed under the management of the CDC. He said the alternative is that the project will go into foreclosure. Quinn said they are in negotiations with the lender and if they get permission tonight, they will have a few months to work things out. Quinn said if they do not get approval tonight, the project will go into foreclosure and
the affordable restrictions will be wiped out. Quinn said lender comes above the other controls including the affordable housing restriction, which is supposed to last for 50 years. Quinn said property will go on the market as a foreclosed property and the bank will want to unload if fast because they don’t want the liability of holding the property. Quinn said the bank would flip it to somebody who doesn’t have control over the property, which is not the best thing for the neighborhood, or for the community. Quinn said they are safe units, which are up to code and offer parking.
Quinn said letters have been submitted by Lynn Duncan, Mayor Driscoll, Elizabeth Hogan, and several others. A petition was submitted in support including approximately signatures of 300 residents.
Quinn said under the circumstances there are many leaders in the community who think it’s better to provide affordable apartments rather than letting these units go. Quinn said they submitted a big package last week with the State allocating for tax credits. Quinn said they would be able to control the property.
Quinn said the lender is willing to negotiate if we get approval. Quinn said there is a big market for affordable rental housing in Salem. Quinn said it is necessary to get past complaints about what happened in the past; we heard issues about management and the presence of the CDC in the community. Tonight we have to deal with what happens to 50 Palmer Street.
Mike Whelan, Executive Director for the CDC said he would like to highlight certain aspects of the memo presented to the Board. Whelan said more information needs go out about how the CDC property management operations function. Whelan said they presented market studies to the Board, which showed there was a dramatic decline in prices, which created $850,000 difference in value. Whelan send nobody was going to put $600,000 into the project to move these units. Whelan said they need the money to pay the construction loan off and they have development, which is leveraged with debt and meets the guidelines for what is affordable in the neighborhood.
Jason Pina, Property Manger for the CDC presented a Board to show what buildings are managed by Salem Property Managers. Pina said he has worked in the housing industry for 10 years, he is also licensed as a real estate agent. He worked with administration and maitenance staff. Pina said there are annual and quarterly requirements for inspection by various housing agencies and lenders. Pina said there is auditing of rental collection, and the screening of applicants. Pina said screening applicants is important because there is a desire to have qualified people. He said the maintenance staff is on call 24 hours per day every day of the week and there is a cleaning staff, which picks up debris and cleans up common areas. He said they have completed a number of capital projects over the last year. He said the
City inspects the units when they are vacated. He said 3 of the 7 staff live on the properties and that they residents choose to live on these properties. The largest property with 77 units has an average household, which stays for 7 years. He said people want to live in the properties and several residents came to support us. He said these are working class people who need affordable housing.
Sharon Seibert is the President of the Board of Directors and a resident of the Point Neighborhood. She said since the CDC was created the goal was to create affordable housing. She said had we had a crystal ball we wouldn’t be where we are today. We want to keep it within the confines of the CDC, and not let it go into foreclosure. She said whether it be rental or ownership we want to provide affordable housing for low income people.
Joseph Luna (Luna Design Group) said he was a Principal of the group which did the Palmer Cove project. He said his office has been involved in the project for over 5 years. He said he believes that quality housing should be available to individuals of all income levels. He said when the project was conceived several years ago the idea was to improve the neighborhood with out displacement of the residents. He said homeownership would bring people who take pride in their homes, improve the neighborhood, and bridge the gap between the haves and the have-nots.
Luna said Palmer Cove received variances from the BOA in 2004. He said the Board required that the project remain as home ownership for 50 years, and the design be quality. He said because of the nature of the site and the complexity of the project construction took 15 months and during that time the real estate market changed. There have been only a small number of qualified buyers. The lack of sales is forcing the project into the brink of foreclosure, converting it to a tax credit affordable rental property is the proposal before the Board tonight. He asked the Board to consider several points:
· If the project goes into foreclosure there will be a free for all of those speculating and looking for income properties.
· It is possible there would be fragmented ownership making the project management difficult.
· The Salem Habor CDC is an important property owner in the Point Neighborhood and they have invested in the community.
· The conversion will still meet the overall project goal. The conversion of the property to rental would be for fifteen (15) years and at that time the City may choose to retain rentals or consider other options.
Luna said construction costs have remained high despite the market. There have been improvements to City infrastructure. There was donated landscaping and help in planting the landscaping. Luna said thinking outside the box made this project happen in the first place. The project was conceived to serve the Point community as a whole, though Luna said he was sorry to Ms. Corchardo and those affected by the change, he thinks the best option is to keep the project locally owned.
Stein opened the public portion of the hearing.
Carol McGowan Executive Director of the Salem Housing Authority is in support of the petition. She said the mission of the Housing Authority is to provide affordable housing, and Section 8 housing. She said there are people out there looking for housing and are people in the room who would probably like to live in the development.
Sandra Colon said she has lived in a Salem Harbor CDC property for 11 years. The maintenance is very good. She lives across the street from the property and would like to know that those who take over this property will take good care of it.
Fernando Morales (71 Palmer) disagrees that it should be rental, and thinks homeowners should occupy it.
Luis D’Avila (37 Turner Street) said he is a life long resident of Salem and he wanted to voice solidarity with the CDC Board. The City has also lost 6 units of affordable housing when a property on Harbor Street burnt to the ground and hasn’t been replace. He said he worked with an architect to replace another structure that burnt to the ground on.
Shirley Walker (Derby Lofts) supports Lucy Corchardo. She said it appears the mess was caused by the CDC and their Board. Walker said regardless of what happens at the hearing she thinks there is a lot of miss-use of public money here and she thinks the CDC should be investigated
Domingo Dominquez said he was formerly on the CDC Board and is opposed. He said the CDC brings ideas but again they change them. He said what’s going to happen in a condensed area when you bring more low-income people with no plan. He said they haven’t seen the CDC working with the community closely.
Jean Martin (24 Leavitt Street) said she was born and raised in the Point area. She has being studying the point as a sociologist. She said when the CDC came they promised the French affordable condominiums and forced them out. She said the CDC came in again under different leadership and worked with the community and bought more property. She said she had a three family and contacted the Housing Authority but has not been contacted back. She said they will be putting out all the small landlords out. She said she would rather have the CDC go under. She said if this goes through say good-bye to the Point and the other housing
Yoleny Ynoa (85 Congress Street) said the community was happy when the project started though when people tried to apply they never got an answer or they were told they didn’t have the right income or credit. Ynoa said at 65 Palmer there is a guy who fixed up an apartment, a 4 bedroom and is selling it for $142,000. Ynoa said these condos won’t sell at $192,000 and there are examples elsewhere of things that are more affordable.
Richard Griffin said he is an architect in Salem said he has experience working in that part of town and he is aware of how expensive construction is today and believes the CDC is pricing these as low as they can. Griffin said he thinks the quality of the construction is very good. He said it is almost impossible to sell things these days and that nobody should be punished for doing a good job.
Beth Hogan Executive Director of North Shore Community Action said she was here to support the conversion of the project to rental units. Hogan said she is not here to address feelings about what has happened. She thinks affordable units should be maintained. She said homeless families are a big issue, not enough rental units can support families. Hogan said some people believe these are not affordable units and she will attest that these are not obtainable for very low income. She knows three would be reserved with subsidies attached. She said most would agree this is work force housing. She said there is a broadening need and increased number of renters. She said this information is coming from recently completed surveys from her organization. Hogan asked that the request is supported.
Nancy Moore owns and four family at 39 Prince Street. She said if she screwed up and had built that project as a personal investor, nobody would bail her out. She said there are at least 37 available units in the Point and many accept Section 8 vouchers. She said she has two vacancies. She said maybe the project should go into foreclosure so that people who want to buy them can buy them.
Tracey Mitchell (15 1/2 Palmer Street) lives on Palmer Street at the other end and has lived there for 30 years. She said she does clean up. Mitchell would prefer them to go rentals where people in the neighborhood would have a nice place to live.
Peter Hackmeister owns the building at 35 Perkins Street. Hackmeister said he rescued a brick building and turned it into an owner occupied unit. He said if there is a way to further move the project into home ownership we should try to do that. He believes very strongly individual homeownership is a cornerstone. He submitted a letter.
Frank Valentino has owned a four unit on Park Street for three years and has not once been 100% occupied. He said he put $100,000 into the property recently. He said he doesn’t know much about the organization, he thinks they did a nice job, though to say the units are affordable is untrue.
Eddie Telemaco owns a 3 family in the Point Neighborhood, and a condo by the college. Telemaco said if there are going to be 15 units on the market deeply discounted it will depress the market in all of Salem. He said this is a statewide epedemic. Telemaco said he is on the Board of the CDC and has been for 6 years. He feels what happens in the Point affects all of Salem. He said he doesn’t believe in discriminating against people who don’t have housing. He said he has been on the Board and is willing to be investigated. He said the mission of the CDC will remain the same.
Calvin Young lives in the Point on Harbor Street. Young said he has been involved in housing development and community development. He said he sees a lack of accountability to the community as a major issue. He said he has come in too late to see other alternatives to what are being presented. Young is concerned that this shouldn’t be allowed to happen. He thinks there is a lack of an ongoing partnership. Young said it needs to be ensured this does not happen again, and that more people from the Point need to be on the Board.
Shirley Walker asked for the City’s position. Stein read a letter from Mayor Driscoll to Tina Brooks, Chairperson of the Community Economic Development Assistance Corp. The letters is in support of the application to the Pre-Development Loan Program by the Salem Harbor CDC.
A representative spoke on behalf of the Affordable Housing Coalition saying the preservation of affordable housing is necessary. There are no affordable housing programs supported by the State at this point. Supports the proposal and thinks the City should revisit this in 15 years.
Lynn Duncan does not believe that foreclosure will result in the provision of affordable condominiums. Duncan said when she has been to community meetings in the Point she has heard over and over again that there is a need for affordable housing. In May of 2006 the vacancy rate was only 2 1/2%, a very low rate. Duncan said the need for rental is increasing.
Duncan said two other developments in the City are going from market rate to rental. The Old Salem Jail was not able to get financing because appraisal values came down. The tax credits that they have applied for require the change to rental.
Duncan said the development at Washington and Derby will be rental. There is no market for condominiums. This is not the only project that is having problems. Duncan said she talked to the Department of Planning and Community Development and know seven (7) projects are in as serious trouble as this one is and these projects are often in cities. The City through the HOME program has invested over $320,000 dollars into 50 Palmer Street. Duncan said she believes the market will turn around and moving forward these units need to be persevered as affordable. Duncan said she thinks absentee landlords would buy the units cheap following a foreclosure.
Duncan said she was hoping to address everyone’s hope for condominiums. She said it is feasible for there to be a change 15 years from now. Duncan suggested that at the end of the fifteen years from the tax credit or Board of Appeals Decision, what ever is earlier, the owner must enter into a discussion with the City. Duncan said this would bring the owner back to the table to achieve the goals of ownership. She said it could be rent to own as suggested. Duncan says she offers that towards the objective of ownership.
Lucy Corchardo said she is not against the CDC, but against the petition. She read a letter from Katrina Healy in opposition. Corchardo said to say the leaders are against affordable housing is wrong. Corchardo said she wants to see more then rental. She said this is how the project was sold to the neighborhood, community, and City. She said we came in support to many meetings in support of a home ownership project. She said tere has been lots of mismanagement with this project. She said now the 15 units will be rammed down our throats as rentals with no other options. She said we don’t want to see the CDC go under. Corchardo said she was a tenant of the CDC, though she said has to voice opposition. She said people think they will be leaving their current CDC units into
the new units.
Corchardo said if these are to be affordable, these need to be really affordable. She said for this landlord to be the largest owner in the neighborhood and not be involved with the neighborhood is a problem. She would like to see some management in the neighborhood. She said should not be based on petition over petition. She said if your landlord came to your house and asked you to sign something you would.
Public portion closed.
Debski asked that the affordable housing restriction is explained in more detail. Duncan said the BOA decision required that an affordable housing restriction be placed on the deed. They used the same language as the HOME consortium used since they used home funds. The restriction was recorded, but would be extinct with a foreclosure.
Stein asked what the income requirements would be. All fifteen (15) will be affordable 60% of the area median income which is a house hold which earns $51,800 per year
Three (3) units would be 30% of area median income which is a household of 4 earning $25,000 per year.
All would be under $52,000 per year. Curran asked if the area median income is determined by HUD. Whelan, said yes.
Dionne asked whether there would be an effort by the CDC to reach out more to the Community. Whelan, yes the Board will talk. Dionne asked what the mission statement of the CDC is.
Corchardo said it is to provide affordable quality housing, and services to the neighborhood, which increase employment opportunities. She said all of this has not happened for the past few years.
Whelan said the number of staff has been changed from 10 to 4 ½ and there have been funding changes.
Dionne asked if the funding was limited would the CDC fail to exist. What would be the management of the current properties? Whelan said they had overcome many challenges. Another managing partner would be designated.
Harris questioned if there is a property management company which has 7 employees which is different than the CDC. Harris asked that the two agencies are explained. Whelan said Salem Property Managers is on a different budget.
Harris said since the CDC has a controlling management interest they could hire Salem Property Management.
Whelan said after the low income 3, the remaining 12 would be $800 -$900/month and the larger a bit more. There would be a one year lease.
Stein asked how you feel about the City’s proposal. Whelan said it’s consistent with their mission.
Debski thinks this is a good alternative and that nobody can control with real estate market. She does not think foreclosure it the answer, and thinks we don’t have a choice to keep the affordability.
Stein thinks it’s likely going to be a rental project no matter what happens so she would rather see the CDC as the management entity. Stein thinks ownership should be revisited in 15 years. Stein is sympathetic to the individual property owners but hopes that the people here tonight will make connection. Nobody wants to see this be rental, but it is the best and most appropriate option.
Harris said she is very disappointed that the relationship between the CDC and the neighborhood has gotten bad. The CDC has a good reputation and has been a major force for a long time. Harris thinks sometimes foreclosure can be a benefit to get rid of the restrictions. Harris thinks that the current economic climate would make foreclosure risky for the neighborhood. The Essex in Salem was a positive situation. The 15 year option is probably the better year to go on this.
Corchardo asked why 15 years. Stein said the tax credits set the 15 years and there is oversight the whole time.
Beth Debski made a motion to approve the petition of Salem Point Rental Properties with the special condition that:
At the end of the fifteen (15) year period of the low income housing tax credits for affordable rental housing use of the premises, or in fifteen (15) years from the date of this decision, whichever is earlier, Salem Harbor Developers, LLC, or its successors in title or assigns, specifically including, but not limited to Salem Harbor Community Development Corporation, or any other entity owned or controlled by it (the “owner”), must enter into discussions with the City of Salem through its Department of Planning and Community Development, concerning disposition of the units in the premises. Such discussion may include review of options including, but not limited to: mix of tenure, rent to own, ownership, and rental.
Previous conditions are to remain. The motion was seconded by Robin Stein and approved 5-0 (Stein, Harris, Curran, Debski, and Dionne).
The meeting was adjourned at 9:45 pm.
Respectfully submitted,
Amy Lash, Staff Planner
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