HomeMy WebLinkAbout2006-11-28
AGENDA
Nantucket Land Bank Commission
Regular Meeting of November 28, 2006
Land Bank Meeting Room, 22 Broad Street
Nantucket, Massachusetts
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CALL TO ORDER
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A. CITIZEN BUSINESS/ANNOUNCEMENTS
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B. TRANSFER HEARING i~0
No. 26947, Bruce H. Poor -':::.
No. 26977, Bruce A. Issadore, John Englert, Thomas M. Sobol and Meredith L. Sobol,
tenants in common
Unreported transfer of control when Andrew Kay was added as manager, Hedgebury
Lane, LLC and Harold B. Murphy and Lauren C. Murphy, Trustees of ECD
Realty Trust
C. PROPERTY MANAGEMENT
1. Miacomet Golf Course Updatte
D. TRANSFER BUSINESS
E. FINANCIAL BUSINESS
1. Monthly Financial Report
2. Warrant Authorization - Cash Disbursements
3. Warrant Authorizations - Goodwillie Notes 28 & 29
4. Warrant Authorization - Marble Note 19
5. Preliminary Bond Financing Discussion
F. REGULAR BUSINESS
1. Public Notices Review
2. 2007 Annual Town Meeting Discussion
G. PROPERTY MANAGEMENT
1. Sconset Beach Preservation Fund Request
2. Nobadeer Farm Road Property - Ballfield Project Update
3. Lily Pond Property - Blair House Update
EXECUTIVE SESSION
ADJOURNMENT
-re:-
Cl
, Land Bank Commission
November 28, 2006
Page 2
Street dated April 5, 2006, prepared by Steve Backus, Backus Appraisals LLC, placing a value of $2.4
million on Lot 4R for borrower Bruce Poor;
Exhibit 83. Correspondence from David L. Arons dated November 21,2006, to Valerie Swett, Esq.
with these enclosures:
Exhibit 83.1. Certified mail receipt dated September 28,2006, to IRS, Cincinnati, OH, North
Waltham Branch cash register sales receipt dated September 28, 2006, and certified mail return
receipt received by the United States Treasury on October 3,2006;
Exhibit 83.2 Agreement between Bruce Poor, Bruce Issadore, and Jack Englert dated April 14,
2006, regarding purchase of certain lots from Hedgebury Lane, LLC;
Exhibit 84. Email correspondence from David Arons dated November 21,2006 (5:29 PM) to Valerie
Swett with attached IRS Notice of Employer Identification Number to Hedgebury Lane LLC dated
February 4,2004, indicating that a partnership income tax return (IRS Form 1065) is due April 15,
2004, for the 2003 tax year.
Exhibit 85. Email correspondence from David Arons to Valerie Swett dated November 27,2006 (3:51
PM) with these attachments:
Exhibit 85.1 Uniform Residential Appraisal Report (Fannie Mae Form 1004) for
IssadorelEnglert's portion of 45 Vestal Street (Lot 2B) dated March 29,2006, prepared by
Sara Fuller, Baywest Appraisal Group, placing a value of $1.65 million on Lot 2B for
borrowers Bruce Issadore and John Englert;
Exhibit 85.2. Document entitled "Withdrawal ofEKIA LLC" signed by Bruce Issadore and
John Englert as managers ofEKIA, LLC, dated November 21,2006, purporting to remove
EKIA, LLC as a member of Hedgebury Lane, LLC, effective May 4, 2006;
Exhibit 86. Hedgebury Lane LLC 2006 Annual Report filed September 29,2006, with the Secretary
of the Commonwealth of Massachusetts by Bruce H. Poor, showing Bruce H. Poor and Andrew Kaye
as Managers;
Attorney Keith Yankow presented a document entitled "Approval of Withdrawal" signed by Bruce H.
Poor as manager of Hedgebury Lane LLC, dated November 2006, purporting to approve the
withdrawal ofEKIA LLC as a member of Hedgebury Lane, LLC, effective May 4,2006, which at Mr.
Yankow's request was added as Exhibit 87. Attorneys Yankow and Issadore explained that this
document related to the Document entitled "Withdrawal ofEKIA LLC" presented as Exhibit 85.2.
The documents (signed since November 14) confirmed that EKIA, LLC ceased to be a member of
Hedgebury Lane, LLC effective May 4, 2006.
Attorney Bruce Issadore presented a document entitled "Hedgebury Lane LLC and Partners Chart of
Transactions and Exemptions dated November 28,2006" which at Mr. Issadore's request was added
as Exhibit 88.
Land Bank Commission
November 28, 2006
Page 4
The Director presented a plan of the project indicating Land Bank parcels which would be included in
the proposed beach nourishment project and a Letter Agreement prepared by William F. Hunter, Esq.,
representative for the Siasconset Beach Preservation Fund (S.B.P.F.), asking the Commission to join
their application for permitting with the Nantucket Conservation Commission and the state
Department of Environmental Protection Agency.
Upon a motion made and duly seconded, it was VOTED to ask S.B.P.F. to provide the final
environmental impact report and full sets of copies of the application to the Conservation Commission
for the Commission's review prior to their consideration of S.B.P. F.'s request to be co-named in the
application process.
D. TRANSFER BUSINESS:
1. "M" Exemption Update:
a. Release of Lien Adjustment Paid - No. 24821 Amy Koch-Oman, Trustee of Starr Nominee
Trust: The Commission executed and authorized the issuance of a Release of Lien for the above
referenced transfer based upon receipt of payment of the outstanding fee in the amount of $4,000.
b. Five Year Ownership Compliance and Releases of Liens: The Commission authorized
the issuance of Releases of Liens for the following properties as a result of the purchasers fulfilling all
of the requirements of Section 12, subsection (-m-):
No. 21325 Kevin J. Kitsock and Aileen M. Kitsock
No. 21304 Vladimir Strelnitski and Fifteen Seikinnow Nominee Trust
E. FINANCIAL BUSINESS:
1. Monthly Financial Report: The Commission accepted financial statements for the period
ending October 31, 2006.
2. Warrant Authorizations - Cash Disbursements: Upon a motion made and duly seconded, it
was VOTED to approve and execute the November 28, 2006, warrant document and attached
vouchers in the total amount of$8l,949.68 to be provided to the county treasurer.
3. Warrant Authorization - Goodwillie Notes 28 and 29: Upon a motion made and duly
seconded, it was VOTED to execute the November 28, 2006, warrant document authorizing payments
required for Notes 28 and 29 in the total amount of $3,100,000 to be provided to the county treasurer.
4. Warrant Authorizations - Marble Note 19: Upon a motion made and duly seconded, it was
VOTED to execute the November 28,2006, warrant document authorizing payment required for Note 19
in the amount of$25,768.60 to be provided to the county treasurer.
F. REGULAR BUSINESS:
1. Public Notice Review: The Director reviewed public notices received since the last review.
No action was taken.
. Land Bank Commission
November 28, 2006
Page 6
ADJOURNMENT: 6:45 p.m.
Attested to:
Accepted, Approved, and Released by the VOTE of
the Commission this 26th day of December 2006.
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TRANSFER BUSINESS
Nantucket Land Bank Commission
Regular Meeting of November 28, 2006
1. "M" Exemption Update:
a. Release of Lien Adjustment Paid:
No. 24821 Amy Koch-Oman, Trustee of Starr Nominee Trust
b. Five-Year Ownership Compliance and Releases of Lien
No. 21325 Kevin J. Kitsock and Aileen M. Kitsock
No. 21304 Vladimir Strelnitski, Fifteen Seikinnow Nominee Trust
MINUTES
Nantucket Land Bank Commission
Special Meeting of November 28, 2006
Land Bank Meeting Room, 22 Broad Street
Nantucket, Massachusetts
CALL TO ORDER: 4:05 P.M.
PRESENT: Bartlett, Holdgate, Johnson, Reinhard. ABSENT: Stackpole.
A. CITIZEN BUSINESS: None.
B. TRANSFER HEARING:
No. 26947 Bruce H. Poor
No. 26977 Bruce A. Issadore, John Englert, Thomas M. Sobol and Meredith L. Sobol,
tenants in common
Unreported transfer of control when Andrew Kaye was added as manager, Hedgebury
Lane, LLC and Harold B. Murphy and Lauren C. Murphy, Trustees ofECD
Realty Trust
Pursuant to Section 14 of the Land Bank Act, the Commission continued a hearing on the matter of the
Notices of Assessment from the Nantucket Islands Land Bank Commission dated August 22,2006, as
summarized above. The hearing had commenced at 4:00 p.m. on November 14,2006, and was
continued to November 28 in order to allow the property purchasers to provide additional exhibits.
The hearing was tape recorded.
Valerie Swett Esq. was present to act as the legal counsel to the Land Bank Commission.
Present at the hearing as property owners and/or representatives of property owners were James
Englert, Attorney Bruce Issadore, and Attorney Keith Y ankow.
Although present, Commissioner Philip Bartlett did not participate in the continued hearing because
he was not present at the November 14, 2006, commencement thereof.
The hearing was opened by the Chairman.
Ms. Swett summarized the communications which had occurred with representatives of the property
owners from November 14,2006, through the commencement of the continued hearing and asked that
the following documents be entered into the record as exhibits. The exhibits were entered without
objection.
Exhibit 81. Email correspondence from Valerie Swett dated November 15,2006 (8:38 AM) to David
Arons, Keith Yankow, and Richard Glidden;
Exhibit 82. Email correspondence from Keith Yankow to Valerie Swett dated November 16, 2006
(12:53 PM) transmitting Uniform Residential Appraisal Report (Fannie Mae Form 1004) for 3A Winn
Land Bank Commission
November 28, 2006
Page 3
Bruce Issadore then presented a summary of the relationships and transactions which are the subject of
the hearing. He argued that the admission of EKIA, LLC as a member of Hedgebury Lane, LLC
should be an exempt transaction because EKIA acquired a fifty (50%) percent of the membership of
Hedgebury. With regard to the lots transferred to Bruce Poor and to Bruce Issadore/John Englert, Mr.
Issadore argued that a Land Bank fee ought not to be payable because the transactions were simply a
means of refinancing the Hedgebury Lane LLC debt at residential rates and distributing profit to the
individual lot purchasers.
With regard to the values to be used in assessing any fee, Mr. Issadore directed the Commission's
attention to the appraisals which had been provided, being Exhibit 85.1 valuing the Issadore/Englert
portion of Lot 2, and Exhibit 82 valuing Lot 4R. He observed that the appraisals provided property-
specific values and were a better basis for valuation than estimates based on the purchase price paid by
Sobols.
After Mr. Issadore's presentation, several commissioners asked questions.
By agreement ofthe parties, the hearing was closed at 4:26 p.m. on Tuesday, November 28,2006.
C. PROPERTY MANAGEMENT:
1. Miacomet Golf Course Update:
a. Financial Report: Charlie Passios presented the October 2006 financial statements
and reviewed the revised profit and loss statement.
b. Operations Update: Mr. Passios provided an update on matters related to operations
including restaurant holiday scheduling, golf shop advertising and event planning.
c. Golf Car Pass Discussion: Mr. Passios recommended offering golf car passes to
senior members ages 65 years and older with proof of medical disability at a rate of$550.00 per
season or $100 per month. Upon a motion made and duly seconded, it was VOTED to offer golf car
passes to senior members as recommended by Mr. Passios.
d. Employee/Member Discount Discussion: Upon a motion made and duly seconded, it
was VOTED to offer a 50% discount on dues to members who are also Miacomet Golf Course
employees working a minimum of 20 hours per week for a 16 week period.
e. Instructor Program Update - Year End Review: Mr. Passios presented the 2006 Year
End Review of Agility Golf/ Nantucket Golf Academy at Miacomet including a summary of mission
plan implementation, adult and child participation statistics and a financial comparison.
2. Siasconset Beach Preservation Fund Request: Citizens Arthur Gasbarro, Catherine Stover and
Rick Atherton were in attendance. Mr. Gasbarro voiced his concerns regarding the Siasconset Beach
Preservation Fund's (S.B.P.F.) proposed "beach nourishment" project and suggested that the Commission
should require S.B.P.F. to provide the final environmental impact report (FEIR) and a copy of the
proposed Conservation Commission application for which they are seeking Land Bank signatures.
Land Bank Commission
November 28,2006
Page 5
2.2007 Annual Town Meeting Discussion: The Director informed the Commission that Curtis
Barnes has submitted an article for the 2007 Annual Town Meeting proposing that 25% (twenty-five
percent) of Land Bank fee revenue be used for the development of affordable housing and to allow
affordable housing on Land Bank properties.
On another matter, the Director initiated a discussion on an article seeking re-zoning for property
located off Milestone Road known as the Holdgate Pit from residential use to commercial.
3. Preliminary Bond Financing Discussion: The Director informed the Commission of recent
discussions with Cynthia McNerney at Fleet Southwest regarding options for funding by issuing
bonds and seeking the full faith and credit of the Town of Nantucket.
G. PROPERTY MANAGEMENT:
1. Nobadeer Farm Road and Backus Lane Properties - Project Updates: The Director informed
the Commission that Gale Associates has filed an application with MESA for permitting of the
Nobadeer Farm Road project for ballfields.
2. Lily Pond Property - Blair House Update: The Director informed the Commission that the
Land Bank's move-on and move-off applications for the Blair and Hemeon Houses at the Lily Pond
property would be presented by Property Supervisor, Jeffrey Pollock and Assistant Property Manager,
Rob Earley at the Historic District Commission's November 28,2006 meeting.
H. EXECUTIVE SESSION: Upon a motion made and duly seconded, it was VOTED to go into
Executive Session. Each member was polled individually. All members voted yes. The Chairman
noted that the purpose of going into executive session was to discuss matters related to pending or
threatened litigation and to land acquisition. He stated further that the Commission did not intend to
return to open session after completion of the Executive Session.
Bruce Issadore objected to discussion of the hearing record in Executive Session, as he wished to
provide the Commission with clarification on any points which it did not understand. He stated that
no litigation had been threatened in connection with the Hedgebury Lane matters. Attorney Swett
disagreed with this account, saying that Mr. Issadore had threatened litigation during a telephone
conversation with her and most recently during his dialog with the Commission that day. Attorney
Swett inquired whether Attorney Issadore was prepared to waive his clients' right to appeal from the
Land Bank decision in the Hedgebury Lane matters, and Attorney Issadore declined to give such a
Waiver.
Attorney Issadore asked for assurance that the Commission would not return to open session after
conclusion of the Executive Session. Each commissioner confirmed the statement made previously by
the Chairman.
At that time Bruce Issadore and John Englert (being the sole remaining members of the public present)
left the room, and the Executive Session commenced.
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NANTUCKET LAND BANK COMMISSION WORKSHEET
UNAUDITED FINANCIAL REPORT as of October 31, 2006
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STATEMENT OF ACCOUNTS. UNRESTRICTED FUNDS:
Nantucket Bank / Operating Fund 790008734
Nantucket Bank / Operating Fund 799508888
Nantucket Bank / Collection Account 790017653
MMDT / Cash Account 44229979
TOTAL UNRESTRICTED FUNDS:
APY
4.70
0.50
4.70
5.06
$25,108.56
$5,337.67
$8,166,841.56
$6,411,500.60
$14,608,788.39
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STATEMENT OF ACCOUNTS. RESTRICTED FUNDS:
Miacomet Park / Nantucket Bank CD43-2790 due 9/25/07
Miacomet Park 2000 / Nantucket Bank 79-24361
Debt Service Fund 98E / US Bank
Working Capital/Nantucket Bank CD45-2733 due 6/14/07
Marble Reserve / MMDT Account 44250553
Tenant Security Deposits / Nantucket Bank
Deutsch Williams Escrow / Citizens Bank
Smooth Hummocks Management Escrow 790027038
TOTAL RESTRICTED FUNDS:
APY
4.59
4.70
4.72
5.00
5.42
$2,531,227.90
$236,213.79
$8,175.66
$1,175,354.39
$326,592.57
$650.00
$125,000.00
$40,244.39
$4,443,458.70
3.40
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BONDS:
Principal
Outstanding
1998 Series E Issue
(Final principal payment 7/1/2019)
$9,545,000 (A)
Payment Due
1/1/2007
Payment Due
7/1/2007
(C) $235,432.50
(D) $785,432.50
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NOTES / LOAN:
Marble Note #19
Principal
Outstanding
$1,700,000
$3,000,000
Payment Schedules Annual Payments
Interest of $25,768.60 due 9th of March, June, Sept, Dee: $103,074.40
Final Interest due 12/12/06 $60,000.00
Goodwillie Note #28
(Note payable 12/12/06)
Goodwillie Note #29
(Note payable 12/12/07)
Holdgate Note #30 $8,000,000
($2,666,666 due 10/31/07, 10/31/08, 10/31/09)
$2,000,000
Golf Course Loan
$4,994,645
$19,694,645 (B)
TOTAL NOTES/LOAN/BONDS:
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Interest of $40,000 due 12/12/06, 6/12/07, & 12/12/07 $80,000.00
Interest due with partial note payment on 10/31/2007
($213,333.36 due 10/31/08; $106,666.72 due 10/31/09)
$320,000.00
Principal and Interest of $36,030.05 due Monthly:
$432,360.60
$995,435.00
Total Annual Notes I Loan Payments (E):
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TOTAL DEBT (A) & (B): $29,239,645
Total Annual Debt Payments (C) (D) & (E): $2,016,300.00
STATEMNTFY07