Loading...
Agenda and Minutes 2013-01-02 City of Northampton Community Preservation Committee 210 Main Street, City Hall Northampton, MA 01060 Community Preservation Committee DATE: Wednesday, January 2, 2013 TIME: 7:00pm PLACE: City Council Chambers, 212 Main Street (BEHIND City Hall) Contact: Downey Meyer, Chair, Community Preservation Committee downeymeyer@gmail.com Sarah LaValley, Community Preservation Planner slavalley@northamptonma.gov (413) 587-1263 Agenda  General Public Comment  Minutes  December 19, 2012  Chair’s Report  Approve Draft Contracts for Round 2 2012 CPA Projects  Expedited Application Review and Recommendation – Christopher Heights Assisted Living Affordable Housing, Grantham Group and City of Northampton  Finalize 2013 Round 1 Application Review  Continue 2012-2014 CPA Plan Update  Adjourn For additional information please refer to the Community Preservation Committee website: http://www.northamptonma.gov/cpc/ Next Meeting: January 16, 2013 Community Preservation Committee Minutes January 2, 2013 Time: 7:00 pm Place: City Council Chambers, 212 Main Street Members Present: Downey Meyer, Brian Adams, Bill Breitbart (left 8:30), David Drake, Marlene Morin, Dave Rothstein, Debin Bruce Staff Present: Sarah LaValley Downey called the meeting to order at 7:00 PM. General Public Comment None Minutes - December 19, 2012 No discussion Chair’s Report Downey informed the Committee that State Hospital Fountain recommendation was passed by City Council at first reading. Approve Draft Contracts for Round 2 2012 CPA Projects Marlene suggested that the dollar amounts for each contract be spelled out, and that decimal points with zero cents be included. Debin moved to approve the Fitzgerald Lake invasives contract. Seconded by David, the motion carried unanimously. Debin moved to approve the Conservation Fund MOU. Seconded by Brian, the motion carried unanimously. Debin moved to approve the Local APR MOU. Seconded by Brian, the motion carried unanimously. Debin moved to approve the CT River Greenway MOU. Seconded by Marlene, the motion carried unanimously. Debin moved to approve the Veterans Field MOU. Seconded by Brian, the motion carried unanimously. Expedited Application Review and Recommendation – Christopher Heights Assisted Living Affordable Housing, Grantham Group and City of Northampton Walter Ohanian, Grantham Group President, provided an overview of the project. Christopher Heights will include 70 studio apartments, and 13 one and two bedrooms. The typical resident will be approximately 85, and unable to remain at home or with family. Residents receive housing, meals, meds and activities, as well as assistance with bathing, dressing, and other tasks. The project will create about 40 jobs. Low Income Housing Tax Credits (LIHTC) have been applied for, and will create the equity needed to be able to offer services. Tax Increment Financing (TIF) from the City will allow operating costs to remain low and predictable. Assisted living projects carry high fixed operating costs due to the high staffing levels required. Christopher Heights is different from most assisted living facilities because residency will be guaranteed regardless of financial situation, because the state will cover care costs for existing residents who exhaust their own fundsMayor David Narkewicz added that assisted living has consistently been part of the master plan for Village Hill. He indicated that Mass Development had courted Christopher Heights after an extensive search for potential assisted living developers. Some communities have offered very large TIFs to Christopher Heights. Northampton is not prepared to do that, but the City is working creatively with the developer to make the project work, including its request for a TIF. David noted that some nursing homes in Northampton have been unsuccessful, and asked how the Committee can be assured that Christopher Heights will continue to operate, and what would happen to the facility if assisted living subsidies were cut. Northampton Community Preservation Committee Minutes 1 January 2, 2013 Walter stated that Christopher Heights has other facilities around the state that have been functioning for 10-15 years. The state has not cut aid to assisted living projects, because they save the state money in the long-term by reducing the need for nursing home care when possible, which is more expensive per resident. An 80-year master lease with MassDevelopment also guarantees use as assisted living. Mayor Narkewicz added that the TIF would be local and different from state programs, and that the City would be able to revoke the tax benefit if the project did not meet TIF requirements. David asked how many Northampton residents would be served by the project. Walter replied that other similar assisted living projects typically have about half of their residents from the towns where they are located. Mayor Narkewicz stated that residents of Village Hill have expressed support for the project, which will also provide needed community space. Dave asked what will happen when the 80-year lease expires. Walter replied that it’s hoped that the project continues, adding that the affordable housing restriction will be in effect in perpetuity. Marlene asked about costs. Walter replied that 1-bedroom unit rent is $4500, with an additional $2000 added for a second resident in the unit to cover care and services. Residents pay only the rental portion once their assets are low enough that they qualify for MassHealth. Bill asked whether the project would accept Section 8. Walter stated that it would not. The Committee discussed the project budget and the subsidy programs involved. Walter stated that it is hoped that DHCD will fund the project, but if not will re-apply in the fall round. Once funding is secure it will be an estimated 11 months from groundbreaking to completion. Dave noted that applicants typically request funds for development, but in this case CPA funds will be used to reimburse the City general fund for taxes that will not be collected, and asked why a TIF is necessary. Walter replied that year-to-year operating costs must be predictable, which is not possible without a TIF. The tax reduction created over 15 years is very important due to the high fixed costs of an assisted living project. Mayor Narkewicz noted that the project structure is similar to purchasing open space that is in tax title. Some communities provide an additional subsidy to compete with surrounding towns for this type of project. Bill noted that a direct grant would essentially reduce the mortgage for the project, but in this case it would apparently not be sufficient to make the project work. Debin expressed support for the project, noting that population age projections for the Pioneer Valley are higher than the state average, and facilities are needed to provide services for those who are no longer able to drive. Bill stated that he is not concerned about how CPA funds will be used to support the project, noting that the applicant seems experienced with providing affordable assisted living, and that the project is reasonably priced. It may be more likely to be funded with the fall DHCD round. Marlene expressed support, noting that the project will provide a housing type that is needed in Northampton. Currently, residents that need assisted living must leave because that opportunity is not available here. Dave stated that he supports the project but has concerns about CPA funds contributing to the City’s general fund to support aTIF. He noted that Christopher Height’s application for tax credits states that its TIF savings would be used to offset construction and operation costs. And he asked, given the numerous line items for construction and operational costs in the tax credit application, why the applicant wouldn’t accept direct funding from the CPC to defray those costs or reduce the principal on its construction loan thereby reducing its debt and future payments? The developer prefers to handle known current construction costs in exchange for some level of control of future expenses. Dave suggested that the CPA award could be used in some other way to create both transparency and operational predictability for the developer. David noted that the project will create a new use at Village Hill, and expressed support. Downey stated that it is an outstanding project for what it will bring to the City, but sense that there is information that is not being provided to the CPC, and that there may be some questions about the TIF rate. Mayor Narkewicz noted that when the state rejected a 5% TIF for Coca Cola, a 50% TIF was provided instead, so the Christopher Heights TIF would not be the largest in the City. Northampton Community Preservation Committee Minutes 2 January 2, 2013 Dave noted that an affordable housing restriction is not contingent on a TIF and that the CPC can impose a condition that contains such a restriction if it directly funded the developer. Dave also noted that the purpose of expedited processing was to quickly give the State feedback on the application as to the level of local support, and that a direct grant of funds from the CPC as opposed to a complex tax arrangement would be easier to accomplish in a short amount of time. He also stated his discomfort over using CPC funds already collected from city residents to defray the developer’s taxes the City would otherwise collect for the benefit of all residents.Debin noted that CPA funds will be leveraging a large amount of state and federal dollars, regardless of whether they are provided as part of a TIF package or as part of a direct grant. Bill moved to recommend that $120,000 in CPA funds be provided to the City of Northampton for the Christopher Heights project, to allow the City to offer a TIF. Seconded by Marlene. The Committee discussed whether it would make sense to include language in the Order that would allow the funds to be awarded to the Grantham Group if the TIF is not approved. Committee members agreed that another application could be submitted in that case. The motion carried, 5-1. Finalize 2013 Round 1 Application Review The Committee discussed and approved the review schedule. A site visit date will be set when applications are received. Sarah will place on the web and email to Committee members. Continue 2012-2014 CPA Plan Update The Committee will discuss at the January 16 meeting. Adjourn On a motion and second, with unanimous vote, the meeting was adjourned at 9:30 PM Northampton Community Preservation Committee Minutes 3 January 2, 2013