Town Administrator opened the meeting at 7:01 pm. First order of business was the election of the Chairman.
John Badger moved and seconded by Mike Ricker to nominate Gary Levy. No other nominations acting Chair called for a vote. Mr. Levy was elected by vote of 4-0.
Mr. Levy assumed the position of chairman and called for nominations relative to the Vice-Chair. Mike Ricker nominated and seconded by Gary Levy to nominate John Badger, there being no further nominations, roll call. Vote was 4-0. Mr. Badger was elected Vice-Chair.
Mr. Badger raised the issue relative to certain discussions that should be held in a confidential manner, especially as it related to costs and the sale of properties. After some discussion, it was agreed that in those circumstances a non-public meeting under RSA 91-A:3 would be appropriate.
Chairman Levy recognized John Connery to review the report he had provided to the committee. Mr. Connery noted that he had obtained quite a bit of information from the previous meeting with representatives from Conway Associates present. In looking at the overall project, he noted a range from low to high of the cost expenditures and revenues, and felt the best option for the committee would be look at the middle range. He created various scenarios of high costs and low revenues and vice versa in order to provide the committee with the greatest overview of various situations that they could face. He noted that he also took in the fact that there is possibility of the receipt of up to $500,000 of funds from the Economic Development Authority. He looked at whether the town wished to re-coop the purchase price of the Wilson property and how they might utilize those funds. Also, the use of the TIF funds for various infrastructure developments. Mr. Connery noted that relative to revenues, the land and buildings within the current industrial park have a significant high value because of their specific use. The building that is being proposed for the Boise Cascade project would be a warehouse which would have a value of about $22 a square foot as opposed to $43 to the current industrial buildings. He noted that the buildings within the initial industrial park have a tax-assessed value of approximately $6 million dollars. And yielded a square foot per cost of $42-$43 per square foot. The proposed warehouse assessed value could be anywhere from $2.2 –4.3 million dollars based on what would be constructed. He noted the net tax revenue range would be anywhere from $33,300 to $80,000 per year with an average of $57,000. He noted that at the meeting with Conway, the figures that were presented relative to the potential cost for the railroad installation were valid numbers of 1.3-1.6 million dollars. What was not included in that would be whatever water and electric utilities would need to be brought to the property.
Mr. Connery noted that one of the policy issues the TIF Committee needs to discuss is are they satisfied with a break even approach to this project. In other words, would the committee, on behalf of the town, be satisfied if the only thing they were to receive was sufficient taxable value to cover the cost of the bond for the first several years? Alternatively, was there a desire to recoup the cost of the bond plus excess revenue in order to reduce the tax? One aspect that Mr. Connery noted, was that currently the value of an acre of the Wilson Farm is roughly $25,000 per acre, however; with the installation of the railroad crossing and rail signal citing, that figure would jump to approximately $66,000 per acre. Mr. Connery noted that the use of the Wilson property as the first development parcel for the industrial park by Boise Cascade is the best and most logical way to develop the property. It would have the shortest costs for the rail spur and for roads and other infrastructure needs. In addition, it would initially have the lowest cost for town public utility needs, i.e. snow plowing in the winter, and police, ambulance and fire needs as warranted.
Mr. Connery noted that the town should consider its use of the bond process to expand the park and to work with the contractor in order to obtain the greatest taxable value for the development in the future. Some of the items that Mr. Connery noted that needs to be considered is to mitigate the neighborhood noise along New Road to mitigate the noise they would hear from such things as trucks backing up and/or the railroad. The need to consider the town’s turn radius for trucks onto Route 108 and the need to consider the location of the spur throughout the property so as not to reduce the cost value of other properties in the future. More specifically, the development of the railroad spur should not create a hindrance to access by vehicular traffic to other portions of the TIF properties.
Mr. Connery noted that the town should consider some kind of a development agreement in the case the Boise property should be vacated. He suggested a lien could be placed against the property for the recoup of the cost to the town for bond payments. Mr. Connery further stated that he felt that it was important that both the town and the developer work in concert in order to obtain a maximum amount of funding from the EDA grant should it become possible to obtain.
There was general discussion as to ways in order to mitigate the impact of the noise to residential properties in the rear of Black Bear TIF and who would be responsible for bearing the costs of water and electric costs into the development.
The committee returned to a general discussion of the issue of break even of bond costs. There was general concerns that the goal would not be to break even, but rather to obtain greater value from the development in order to maximize the tax revenues for the town.
Mr. Connery noted that he will work up a cost benefit proposal overview for the Committee to review on the various scenarios that he provided. He was requested by the Chair to develop a policy for the town to utilize in its negotiations with the developer.
The Committee further discussed that a meeting will be held on June 11, 2009 between the developer, the town, Boise Cascade, and members of the State of NH Resource and Economic Development and the Rockingham Economic Development Authority relative to a plan to work together on this regard.
Chairman Levy thanked Mr. Connery for his time and the report that he provided.
There was general discussion of the Agreements between the Newmarket Industrial Commission and then Home Tech, Inc., with regard to the construction of a railroad crossing in the event a viable entity seeks to develop any portion of land on the easterly side of the railroad tracks. Members of the committee questioned whether the then agreement is not binding upon Conway Associates and the proposed intent of Boise-Cascade to develop a facility within the current Black Bear TIF district. The committee reviewed correspondence from Attorney John Ryan, Casassa & Ryan, who indicated that “[s]ince the 1988 Agreement is not a matter of record and is not binding on the successor or assigns of Home Tech, there may be some questions as to whether the Agreement applies to the current owner.”
There was some sentiment that Conway Associates may bear the responsibility to develop the crossing without assistance from the Town.
The committee reviewed the minutes of May 13, 2007 and the Chair requested the discussion of the railroad crossing be included as follows:
The Committee discussed the prior agreement between then Home Tech and the Newmarket Industrial Commission as it related to the development of a railroad crossing should a viable entity seek to develop on what is the easterly side of railroad tracks or the build out on the westerly side. After some discussion, it was agreed to instruct the Town Administrator to forward the contract and the letter from Home Tech’s legal counsel to determine if the agreement then in place with Home Tech is still valid for the current situation}.
The Chairman then called for a motion on the minutes of May 13, 2009. There was discussion relative to inclusion of the discussion for the initial contract for the railroad crossing and to be included, everyone was in agreement with that.
Motion: To accept the May 13, 2009 minutes as amended
Motion by John Badger
Seconded by Michael Ricker to accept the minutes as amended.
Motion carried: 3-0 2 abstained.
Committee then discussed their next scheduled meeting will be May 25, 2009 at 7:00 pm in the Auditorium.
