Chelsea Massachusetts, February 23,2009

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Chelsea Massachusetts, February 23,2009 Powered By Docstoc
					                                     Chelsea Massachusetts, February 23, 2009



A Regular meting of the Chelsea City Council was held. The meeting was held at the
Chelsea City Hall located at 500 Broadway, Chelsea. The following members of the
Chelsea City Council were present: Councilors Avellaneda, Vega-Torres, Troisi,
Bongiovanni, Robinson, Barton, MeKonnen, Hatleberg and Frank. Councilors
Washington and Morgese were absent. Councillor Hatleberg President of the City
Council presided over the meeting. The meeting opened at 7:00 P.M.

Memoriums and celebratory resolutions:

The following Resolution was introduced by Councillor MeKonnen and All Members of
the City Council. A motion from Councillor MeKonnen to adopt under suspension was
adopted.
                                   RESOLUTION
Whereas,      Paul Koolloian Lead Dispatcher for the Chelsea Emergency Management,
              was selected to receive the 911 Honors Awards by the Statewide
              Emergency Telecommunications Board; and
Whereas,      this award that has been presented to you as a result of your dedication and
              service to the citizens of Chelsea and the Commonwealth of
              Massachusetts; now, therefore, be it,
Resolved,     that on behalf of the Citizens of Chelsea, we, the members of the Chelsea
              City Council wish to go on record to congratulate you on this prestigious
              award.

Public Speaking:

The public speaking portion of the meeting was opened by President Hatleberg at
7:07 P.M.

No one came forward to speak. The public speaking portion of the meeting was closed at
7:08 P.M.

The minutes of the City Council Special Meeting held on February 7, 2009 and the
Regular Meeting held on February 9, 2009 were approved at the request of Councillor
Frank under suspension.


Communications from City Manager:
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The following communication was received from City Manager Jay Ash. A motion from
Councillor Frank to accept and file was adopted under suspension.
The Honorable Chelsea City Council
City Hall
Chelsea, MA 02150
Dear Honorable Council:
In April of 2000, AMSAN, the former Industrial Wiper, successfully secured a Tax
Increment Financing agreement with the City and the State’s Economic Development
Incentive Program enabling AMSAN to access tax relief at both the local and state levels.
Unfortunately, AMSAN, a national company, has terminated operations at 220-240
Second Street, having relocated to a massive distribution center in Worcester as part of a
regional distribution restructuring.
AMSAN, while present in the city, did its part to help create local people. As the
company is no longer present in the city, though, we can no longer grant the project
certified status and the subsequent tax relief that comes with that status.
I now ask the City Council to support the decertification of the AMSAN agreement,
noting that the City remains grateful to their management and employees for their
successes and hope they consider Chelsea again if their future endeavors provide them
with options of relocations or expansions. A Council vote to formally declare the project
decertified at their upcoming March board meeting, ending the Tax Incentive Financing
Agreement currently in place.
I thank you all for your attention to this procedure and for your continued support of
projects accessing the State’s Economic Development Incentive Program and the tax
relief available through that program.
Very truly yours,
Jay Ash, City Manager

Communications and petitions to the Council:

A copy of a communication was received from Donald Schmidt, Director, Smart Growth
Zoning Program. A motion from Councillor Robinson to accept and file was adopted
under suspension.

A copy of a communication was received from Zoning Board of Appeals regarding
Notice of Hearing for Tuesday, March 10, 2009. A motion from Councillor Robinson to
accept and file was adopted under suspension.

A communication was received from Sullivan and Rogers & Company along with
attached memorandum Dated January 27, 2009. A motion from Councillor Troisi to
accept and file was adopted under suspension.

A communication was received from Sullivan and Rogers & Company dated January 27,
2009 Comprehensive Annual Financial Report. A motion from Councillor Troisi to
accept and file was adopted under suspension.
                                           3


A copy of a communication was received from Zoning Board of Appeals regarding
Notice of Hearing for Thursday March 12, 2009. A motion from Councillor Robinson to
accept and file was adopted under suspension.

Second Readings:

The following order was introduced by Councillor Troisi. A motion from Councillor
Troisi to adopt by roll call passed 9-0-2-0. Voting yes were: Councilors Avellaneda,
Vega-Torres, Troisi, Bongiovanni, Robinson, Barton, MeKonnen, Hatleberg and Frank.
Councilors Washington and Morgese were absent.
WHEREAS, The City of Chelsea (the “City”) and Chelsea Gateway Property, LLC
(CGP) have been in negotiation relative to the mutual desire of each party to secure the
necessary “field leveling” assistance to make economically feasible CGP’s hotel project
in Chelsea; and
WHEREAS, as part of the assistance package identified by the parties with the
assistance of the Massachusetts Office of Business Development, CGP has applied for
designation as a Certified Project under the Massachusetts Economic Development
Incentive Program created by Chapter 23A of the Massachusetts General Laws; and
WHEREAS, CGP will develop a hotel project that meets and exceeds the minimum
standards of the Economic Development Incentive Program, as well as the local
development goals and criteria established as part of the documents creating the City’s
Economic Target Area and the Everett Avenue Urban Renewal Development District
Economic Opportunity Area; and
WHEREAS, the City has agreed to offer CGP a Tax Increment Financing Agreement,
with said agreement hereby being approved by the Chelsea City Council (the “City
Council”) and the Tax Increment Financing Plan being incorporated by reference herein;
and
WHEREAS, the CGP project will result in a $17,000,000 real estate and personal
property investment at 144 Beech Street and create 36 permanent full-time jobs within
the first five years of the agreement, providing local residents with future employment
opportunities as CGP participates in a local hiring practice and hosts vendor fairs.
NOW THEREFORE BE IT ORDERED, that the City Council approves the Certified
Project Application of Chelsea Gateway Property, LLC and forwards said application for
certification to the Massachusetts Economic Assistance Coordinating Council for its
approval and endorsement; and
BE IT FURTHER ORDERED, that the City Council authorizes the City Manager to
enter into a Tax Increment Financing Agreement between the City and CGP, with said
agreement providing CGP an exemption on property taxes based on the growth portion of
the assessed valuation of the property occupied by CGP at 144 Beech Street at a rate of
50% for Year 1, 40% for Year 2, 25% for Year 3, 25% for Year 4, and 25% for Year 5,
beginning in FY 2012 according to the requirements and regulations established that
govern the implementation of such Tax Increment Financing Agreements.
                                              4


New Business:

The following Order was introduced by Councillor Frank. A motion from Councillor
Frank to adopt by roll call passed 9-0-2-0. Voting yes were: Councilors Avellaneda,
Vega-Torres, Troisi, Bongiovanni, Robinson, Barton, MeKonnen, Hatleberg and Frank.
Councilor Washington and Morgese were absent.
           RESOLUTION REQUESTING THE DECERTIFICATION OF
                           Industrial Wiper & Paper (AMSAN)
       FROM THE ECONOMIC DEVELOPMENT INCENTIVE PROGRAM
Whereas, AMSAN Massachusetts, Inc., d/b/a Industrial Wiper & Paper (hereinafter
referred to as Industrial Wiper) submitted an application to the City of Chelsea for
designation as a Certified Project under the Massachusetts Economic Development
Incentive Program created by Chapter 23A of the Massachusetts General Laws; and
Whereas, the Chelsea City Council approved the Certified Project application of
Industrial Wiper for a project at 220-240 Second Street through a Resolution adopted by
said City Council on April 3 of the year 2000; and
Whereas, the Resolution was forwarded to the Massachusetts Economic Assistance
Coordinating Council and were approved by that body for 10 years of relief to begin in
Fiscal Year 02; and
Whereas, Industrial Wiper had an obligation to create and retain jobs under the terms
and conditions outlined in both Tax Increment Financing Agreements with the City of
Chelsea; and
Whereas, Industrial Wiper, by ending operations here at 220-240 Second Street and
relocating outside of the City of Chelsea no longer meets the terms and conditions
outlined in said agreements with the City; and
Whereas, the Chelsea City Manager, in a communication with the City Council, has
recommended to the City Council that the project be decertified; and
Whereas, the Massachusetts Economic Assistance Coordinating Council has the
capability to decertify a Certified Project upon the request of the municipality; now, be it
therefore
Resolved, that the Chelsea City Council requests that the Massachusetts Economic
Assistance Coordinating Council decertify Industrial Wiper, thereby invalidating the
Industrial Wiper Certified Project at 220-240 Second Street and all agreements related
thereto.

The following order was introduced by Councillor Hatleberg. A motion from Councillor
Hatleberg to adopt under suspension was adopted.
ORDERED, that a Sub-Committee on Conference be held with the City Manager to
discuss the Five-Year Financial Forecast.

The following order was introduced by Councillor Hatleberg. A motion from Councillor
Hatleberg to adopt under suspension was adopted.
ORDERED, that a Public Hearing be held on March 23, 2009 to discuss the Capital
Improvement Program for Fiscal Year 2010.
                                              5


The following Order was introduced by Councillor Troisi Chairman of the Sub-
Committee on Finance and Accounts. A motion from Councillor Troisi to send to
Conference was adopted under suspension.
                       CITY OF CHELSEA
                       FISCAL YEAR 2010
          CAPITAL IMPROVEMENT PROGRAM LOAN ORDER
        BE IT ORDERED: That the various capital projects and equipment purchases
shown under the heading of Grant Funding on the Schedule, and consisting of:
Miscellaneous Grants ($1,475,000), and Chapter 90 funds ($250,000), for a total of
$1,725,000 shall be undertaken and financed by grants or other fund as shown on the
Schedule, such grants to be expended under the direction of the City Manager and that
the City Manager or his designee is hereby authorized to apply for, accept, and expend
any state or federal grants that are or may become available for these purposes; and
        That the total sum of $2,180,950, be and hereby is appropriated to pay costs of the
various capital projects and equipment purchases, shown on the Schedule under the
headings: General Fund Borrowing ($1,625,950) and Sewer Fund Borrowing
($555,000), including the payment of any and all design, engineering, construction and
installation costs associated therewith, and for the payment of all other costs incidental
and related thereto; and that the Treasurer, with the approval of the City Manager, is
hereby authorized to borrow the sum of $2,180,950 under and pursuant to Chapter 44,
Sections 7 and 8, of the General Laws, as amended, or pursuant to any other enabling
authority and to issue bonds or notes of the City therefore; and
        That the sum $225,000, be and hereby is appropriated to pay costs of water
system improvements eligible for financial assistance through the Massachusetts Water
Resources Authority’s Local Pipeline Assistance Program, including the payment of any
and all other costs incidental and related thereto; and that the Treasurer, with the approval
of the City Manager, is hereby authorized to borrow the sum of $225,000 under and
pursuant to Chapter 44, Sections 7 and 8, of the General Laws, as amended, or pursuant
to any other enabling authority and to issue bonds or notes of the City therefore.


The meeting adjourned at 7:40 P.M.


Respectfully submitted,



Paul G. Casino
Clerk of the Chelsea City Council