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HomeMy WebLinkAbout2002-11-06 aJ II II Community Preservation Committee RECEIVED TOWN CLERK'S OFFICE NANTUCKET, MA 02564 ~ 16 Broad St Nantucket, MA 02554 AUG 0 4 2003 TIME: COMMUN~SERV ATION COMMITTEE MINUTES - I!;DA'! - NOn]\tm~1t 6, 2002 A meeting of the Community Preservation Committee, CPC, was held on Wednesday, November 6, 2002 at 2:30 PM at the Land Bank 22 Broad Street, Nantucket, MA. Present were: Barry Rector, Chair, Ken Beaugrand, Rich Brannigan, Norman Chaleki, Polly Miller, Frank Spriggs, and Alice MeW ade, Administrative Assistant. The meeting was called to order at 2:40 PM, and a quorum was established. The agenda was approved. PUBLIC COMMENT Public Comment is expected to be ongoing throughout the meeting. No comments were raised at this time. INTERVIEWS NANTUCKET HOUSING AUTHORITY FUNDING THE MIACOMET HOUSING INITIATIVE - $85,000 The applicant, Bill Snowden, spoke with the CPC office today. He is "stuck" off-island because of the weather and subsequent cancellation of the Steam Ship Authority service between Hyannis and Nantucket. He e-mailed the CPC an explanation of the NHA Funding the Miacomet Housing Initiative application. A copy of the e- mail, one page, is attached hereto and incorporated herein. A copy of the substance of the application, two pages, is attached hereto and incorporated herein. Linda F. Williams, Chairperson of the Nantucket Housing Authority, NHA, was in attendance to explain the Nantucket Housing Authority's association with this application. The NHA Board, while aware of the project, never voted to support or endorse this application. Ms. Williams clarified that the application is not a NHA application. The application is Mr. Snowden's application. The ensuing discussion concerned the locus of the application, the anticipated costs of the project as stated in the application, as well as other ancillary topics. There being no further discussion on this application, upon a motion duly made and seconded, the Board VOTED (5-0-1), Mr. Chaleki abstaining, to close the Public Hearing on this application. 1 COMMUNITY PRESERVATION COALITION Barry Rector circulated a copy of a Memo he received from the Community Preservation Coalition, 2 pages, a copy of which is attached hereto and incorporated herein. Clarification of the memo and its application to the Nantucket CPC was discussed at length. The intricacies ofDOR regulations and constraints on expenditures within the fiscal year time frame were also discussed. The similarity between an appropriation for the building of a new school over a period of years and the appropriation for a CPC project were also discussed. The consensus of the Committee was that the Nantucket CPC's position coincides with the following paragraph from Chris's memo, 1st paragraph, second page: "With regard to the timeline that you mention, an applicant should not start work on a project until the funding for that project is approved at Town Meeting (after a prior recommendation by the CPC). If there is a pressing need to begin work during the period after the April Town Meeting but before the start of the new fiscal year in July, it seems reasonable that the project could go forward, so long as another source of temporary funding may be secured (either a private or municipal (non-CPA) loan) which could then be paid back. This would not violate the prohibition against replacing already appropriated funds, since at this point the CPA funds would be appropriated and it would be clear that the loan is a temporary stopgap tool, rather than an appropriation to be supplanted. " Upon a motion duly made and seconded it was unanimously VOTED: " To modify the Memorandum of Understanding to include "an applicant may not commence work until after Town Meeting approval and no reimbursement will be made for any work done prior to Town Meeting." It was agreed that if additional clarification was received regarding the effect DOR regulations may have of on the disbursement of CPC funds, and it conflicted with the language in the above modification to the Memorandum of Understanding, the language would be revised to reflect the clarification. OLD BUSINESS The Fiscal Year 2004 CPA Budget was discussed at length. Some line item entries still need to be confirmed. Rich Brannigan and Barry Rector intend to meet with Connie Voges, Director of Finance, regarding the budget. NEW BUSINESS After a brief deliberation, it was agreed that the CPC would meet next Tuesday, November 12,2002 at noon. The meeting is intended to last three hours. ADJOURNMENT Upon a motion duly made and seconded it was VOTED to adjourn this meeting for the day. The next meeting is scheduled for Tuesday, November 12,2002 at 12:00 noon at the Land Bank. The meeting adjourned at 4:40 pm. Respectfully submitted by, I t{t, r1YlW~1- Alice Mc Wade Administrative Assistant 2 QfY\C C.pc "I bl 02- Page 1 of 1 cpc From: To: Sent: Subject: "bill snowden" <billysnowden@hotmail.com> "cpc" <cpc@town.nantucket.net>; <bob@nantuckethousingoffice.org> Wednesday, November 06, 2002 10:44 AM Re:CPCI Miacomet proposal To: CPC, Barry Rector, Chairman Re: Miacomet infrastructure proposal. The Nantucket Housing Authority is the owner of9 acres off surfside road. We contemplate using this infrastructure money to create preliminary site design, preliminary road layout and sewer engineering and home design for the property. It will be a single family homeownership concept. The infrastructure monies will help write an RFP to secure a general contractor/developer who will build a homeownership housing community reflective of our design after we have held public hearings seeking neighborhood input. A large portion of these infrastructure monies can be recaptured and returned to the CPC fund within or before two years of commencement of building. This is accomplished by building in the CPC subsidy infrastructure money in the RFP proforma. The sales of the units will return the money. About the concept. There is general NHA consensus that Miacomet will be between 45 and 60 homes. It will be 100% homeownership. It will be 100% local preference to Nantucket residents only (that is legal-we had a state determination) The homes will span an affordability range from 80% of median income(approx $46,000 dollars and a home that costs aprox $140,000) to 150% of median income ($76,000 and a home that costs aprox $300,000). Additionally, because CPA monies will be used in the creation of these homes, ALL the units, even those above 80% of median income count towards our 10% goal. That is the result of new regulations adopted this October by DHDC. We will work with the new housing office in an effort to create the first,all aftordable, community on Town land. Being the first project, we realize that this has to be done right. The answer to the Ken Beaugrand question is $70,000. That is the bare minimum that allows us to design this properly. Remember, most of this money will flow back to the CPA fund within two years. Thank you for your consideration, Bill Snowden Nantucket Housing Authority, member. 4/22/03 Community Preservation Committee Application for CPA Funding Date: September 3, 2002. Name of Organization: Address: Town, State, Zip Code: E-mail: Website: Nantucket Housing Authority (NHA), 3 Marta Drive Nantucket, MA 02554 Contact Person and/or Project Dir: Bill Snowden for this specific Application, as a member ofthe NHA Names of Governing Board, Trustees, Directors, members: See attached. Federal Tax ill #: 04-2857153 Proiect Information Project Title: Funding the Miacomet Housing Initiative. Scope or Concept of Project: This project advances the general goal of the Housing Chapter of the Nantucket Comprehensive Community and the Housing Action Plan adopted by the Nantucket Board of Selectmen by providing funding necessary to provide the minimum design services in architectural, engineering and site development needed to receive the required site approval letter. Said letter is necessary to be able to make such an Application to the Zoning Board of Appeals for 50-60 single-family homes, of varying levels of afford ability, on about nine acres of land currently owned by the Housing Authority. Project Objectives: The purpose of this project is to give year-round residents, including prospective essential service employees, a first-time opportunity for home- ownership by building 50-60 affordable homes. RECEIVED SEP 0 3 2002 By: . f\1'0JC\~ Projected Action Plan ITimeline: Anticipated Project Cost: Other Funding Sources: CPC Funding Request: Support documents: Comparable Projects: Budget/Budget Justification Compliance with the Goals and Objectives of the CPA: Immediately upon receipt of funds and completion of RFD the above work will commence within one year's time. $85,000. Broken down as follows: Site layout and landscape design : $25,000 Road, Sewer, Drainage, Survey: $35,000 Architects home design and certification: $25,000. None applied for at this time. $85,000. Comprehensive Community Plan; The Housing Action Plan are not attached and are sufficiently on record in other Applications currently before you. This is an action step of the affordable housing initiatives of the Nantucket Housing Authority, the Comprehensive Plan and the Housing Action Plan adopted by the Board of Selectmen. The Housing authority has already begun theRFP process and has hired a consultant to draw up a reliable pro-forma. 1. Protects unique character by promoting preservation of sense of community. Nantucket has been plagued by the exit of long-time residents, who have few options, but to sell their property, and move elsewhere. The Nantucket Community also needs essential service employees to maintain a high quality of education, public health, safety, and general community well-being. The attraction of qualified employees is dependent on providing housing that they and their families can afford. 2. The program will promote housing with existing, adequate infrastructure, without putting additional burden on that infrastructure. 3. InfilI and cluster development advocated by the program promotes preservation of open spaces and natural resources. 4. Development of affordable housing in accordance with the Town and Country concept will result in less consumptive land use patterns. Community Preservation Coalition Memo To: Nantucket Community PreseNation Committee From: Community PreseNation Coalition Date: November 1 , 2002 Re: Response to your question regarding the timing and funding of CPA projects You have asked for guidance as to whether or not a project could be completed prior to the Town Meeting vote that would approve funds for it, or more specifically, whether or not a Town Meeting vote could result in the reimbursement of previously expended funds for such a project. You reference Section 6 of the Act, which states that CPA funds "shall not replace existing operating funds, only augment them." To start, this reference is not relevant in this case because it refers to the operating funds of the municipality. Because the funds you are concerned with were spent by a private entity, no previously appropriated municipal funds are being supplanted. More relevant in this case is the first sentence in Section 6, "...upon the recommendation ofthe CPC, the legislative body shall spend, or set aside for later spending...>> It is clear from this section that no CPA funds may be spent without prior authorization from both the CPC and the local legislative body. Thus, you are correct in your assertion that any entity that expends funds on a project with the hope of subsequent reimbursement, does so with the risk that approval of those funds will be denied. No guarantee could be made that a vote to reimburse the entity's expense would be either recommended by the CPC or approved by Town Meeting. Because there is a clear process by which CPA funds may be spent, recommendation by the CPC followed by approval by the legislative body, an attempt to receive a retroactive reimbursement for an eligible project seems at the very least to violate the spirit of the CPA if not the letter of the law. If there is a project that the CPC feels is very important, and it needs to go forward far in advance of the April Town Meeting, there is another option you may consider. If the CPC were approached with a project in, say, November, and it is something that the CPC would definitely recommend to Town Meeting for approval, you could try to make a non-binding agreement with them that if they go ahead with the project and incur expenses which they take full responsibility for, the CPC would recommend to Town Meeting the purchase of a deed restriction on the property. This would accomplish several things: 1) it would allow for the initial project costs to be paid back to the entity, at least in part; 2) it would protect that investment for the community in perpetuity; 3) it would allow for a time-sensitive project to go forward where it might not otherwise be able to do so. The important thing to note here, of course, is that there can be no guarantee that the deed restriction proposal will pass Town Meeting. We are not aware of any other communities that have an explicit policy with regard to the funding of projects that were fully or partially funded prior to Town Meeting approval. This is probably because most communities have assumed that this is not allowable. We suggest that you encourage people with project proposals to wait to begin spending funds until the appropriate approvals have been obtained. This will avoid the awkward situation in which Town Meeting would vote against the purchase 1 of the deed restriction mentioned above, which would put the individual or organization who had already spend the money in a financial predicament. Witn regard to the timeline that you mention, an applicant should not start work on a project until the funding for that project is approved at Town Meeting (after a prior recommendation by the CPC). If there is a pressing need to begin work during the period after the April Town Meeting but before the start of the new fiscal year in July, it seems'reasonablethat the project could go forward, so long as another source of temporary funding may be secured (either a private or municipal (non-CPA) loan) which could then be paid back. This would not violate the prohibition against replacing already appropriated funds, since at this point the CPA funds would be appropriated and it would be clear that the loan is a temporary stopgap tool, rather than an appropriation to be supplanted. Another option to consider, which would give you considerably more flexibility, is to use previously reserved CPA funds from one of the local reserve accounts. For example, if the project in question is the renovation of a historic structure, Town Meeting may approve funding for the project from funds that were previously reserved in the specific historic preservation reserve account. These funds may be spent at any time during any fiscal year, so long as the CPC and Town Meeting have voiced their approval prior to the expenditure. (According to DOR's recent guidance, you are prohibited from spending unreserved funds between the time your tax rate is set in November or December and the beginning of the new fiscal year on the following July 1. During this time period, however, you are free to spend previously reserved CPA funds at any time, so long as the CPC and Town Meeting have voiced their approval). . Page 2 CJ - e Community Preservation Committee 16 Broad St Nantucket, MA 02554 COMMUNITY PRESERVATION COMMITTEE MINUTES - WEDNEDAY- NOVEMBER 6, 2002 A meeting of the Community Preservation Committee, CPC, was held on Wednesday, November 6,2002 at 2:30 PM at the Land Bank 22 Broad Street, Nantucket, MA. Present were: Barry Rector, Chair, Ken Beaugrand, Rich Brannigan, Norman Chaleki, Polly Miller, Frank Spriggs, and Alice McWade, Administrative Assistant. The meeting was called to order at 2:40 PM, and a quorum was established. The agenda was approved. PUBLIC COMMENT Public Comment is expected to be ongoing throughout the meeting. No comments were raised at this time. INTERVIEWS NANTUCKET HOUSING AUTHORITY FUNDING THE MIACOMET HOUSING INITIATIVE - $85,000 The applicant, Bill Snowden, spoke with the CPC office today. He is "stuck" off-island because of the weather and subsequent cancellation of the Steam Ship Authority service between Hyannis and Nantucket. He e-mailed the CPC an explanation of the NHA Funding the Miacomet Housing Initiative application. A copy of the e- mail, one page, is attached hereto and incorporated herein. A copy of the substance of the applica~ion, two pages, is attached hereto and incorporated herein. Linda F. Williams, Chairperson of the Nantucket Housing Authority, NHA, was in attendance to explain the Nantucket Housing Authority's association with this application. The NHA Board, while aware of the project, never voted to support or endorse tlis application. Ms. Williams clarified that the application is not a NHA application. The application is Mr. Snowden's application. The ensuing discussion concerned the locus of the application, the anticipated costs of the project as stated in the application, as well as other ancillary topics. There being no further discussion on this application, upon a motion duly made and seconded, the Board VOTED (5-0-1), Mr. Chaleki abstaining, to close the Public Hearing on this application. ( 1 ~c. C<='C \\h)lOl, COMMUNITY PRESERVATION COALITION 6 Barry Rector circulated a copy of a Memo he received from the Community Preservation Coalition, 2 pages, a copy of which is attached hereto and incorporated herein. Clarification of the memo and its application to the Nantucket CPC was discussed at length. The intricacies ofDOR regulations and constraints on expenditures within the fiscal year time frame were also discussed. The similarity between an appropriation for the building of a new school over a period of years and the appropriation for a CPC project were also discussed. The consensus ofthe Committee was that the Nantucket CPC's position coincides with the following paragraph from Chris's memo, 1st paragraph, second page: "With regard to the timeline that you mention, an applicant should not start work on a project until the funding for that project is approved at Town Meeting (after a prior recommendation by the CPC). Ifthere is a pressing need to begin work during the period after the April Town Meeting but before the start of the new fiscal year in July, it seems reasonable that the project could go forward, so long as another source of temporary funding may be secured (either a private or municipal (non-CPA) loan) which could then be paid back. This would not violate the prohibition against replacing already appropriated funds, since at this point the CPA funds would be appropriated and it would be clear that the loan is a temporary stopgap tool, rather than an appropriation to be supplanted. " Upon a motion duly made and seconded it was unanimously VOTED: " To modify the Memorandum of Understanding to include "an applicant may not commence work until after Town Meeting approval and no reimbursement will be made for any work done prior to Town Meeting." It was agreed that if additional clarification was received regarding the effect DOR regulations may have of on the disbursement of CPC funds, and it conflicted with the language in the above modification to the Memorandum of Understanding, the language would be revised to reflect the clarification. OLD BUSINESS The Fiscal Year 2004 CPA Budget was discussed at length. Some line item entries still need to be confirmed. Rich Brannigan and Barry Rector intend to meet with Connie Voges, Director of Finance, regarding the budget. NEW BUSINESS After a brief deliberation, it was agreed that the CPC would meet next Tuesday, November 12,2002 at noon. The meeting is intended to last three hours. ADJOURNMENT Upon a motion duly made and seconded it was VOTED to adjourn this meeting for the day. The next meeting is scheduled for Tuesday, November 12,2002 at 12:00 noon at the Land Bank. The meeting adjourned at 4:40 pm. Respectfully submitted by, /~~_ ~\lWt~ S(tYce Mc Wade Administrative Assistant 2