A proposal from an Island contractor to convert the Yellow House property into rental apartments and retail space was easily approved Monday by a town committee that has been evaluating proposals for the property. But later the same day, the Edgartown selectmen postponed a final decision until Thursday while they evaluate concerns raised by the former owner of the property.
Mark Nicotera of Trademark Services was the last remaining bidder after one other bidder dropped out last week. Mr. Nicotera has proposed paying $49,000 over the next 30 years to lease and redevelop the rundown property. He is working with financial backer Stephen Berger and architect Dudley Cannada on the plan to create three apartments and two retail spaces.
The subcommittee vote was 5-0 in favor, with one abstention and one member of the committee absent.
In a last-minute email, Benjamin Hall Jr. raised concerns about whether previous policies the town had applied to the house under his family’s ownership would continue, specifically a requirement not to injure or remove a public shade tree through an expansion. Mr. Hall also said creating a full basement and destroying historic structure support would violate the building’s historic character.
Committee chairman Chris Scott read the email aloud at the meeting. After a short discussion, the committee voted to approve the proposal.
The selectmen have the final say on the proposal. At their meeting Monday afternoon, town administrator Pamela Dolby advised the board to take the matter under advisement while town counsel Karen Burke reviews the concerns raised by Mr. Hall.
The selectmen will reconvene at 1 p.m. on Thursday for further discussion and a possible vote.
The town took the Yellow House by eminent domain last year; the Hall family was paid $3 million for the property.
At the earlier meeting Monday, subcommittee members said they did not want to delay their vote.
“I don’t feel we should condition our recommendation on an 11th hour message from a party who did not participate in the request for proposal process, and the same party that the town found necessary to take the property from because of years of inaction,” Mr. Scott said. “With all due respect, we’re here because of the delays and it’s unfortunate that this may cause another one.”
Committee member Jim Shane agreed with Mr. Scott. “We just have before us what we have before us,” he said. “We either think it’s appropriate to pass on or not . . . if something extraneous comes into the picture later that something has to be dealt with by selectmen.”
The 30-year financial terms proposed by Mr. Nicotera are as follows: no money annually from years one through 20; $4,000 in year 21, and $5,000 annually from years 22 to 30. At the end of the 30-year term, the property reverts to town ownership.
The proposal was ranked by all seven members individually, based on other criteria put forward in the request for proposals. The Trademark Services proposal received 32 highly advantageous rankings, 15 advantageous, and three not advantageous.
Committee members did not comment on the financial terms, which they said was under the purview of selectmen.
Sam Sherman, the planning board’s representative on the committee, said he was hesitant to vote and suggested waiting a week for clarification.
In the end Mr. Sherman abstained from the 5-0 vote. Committee member Jim Carter did not attend the meeting but had submitted his evaluation.
This article appears in February 2, 2018.
Sounds like a bad deal for the town. I couldn’t rent dock space for a 21 foot boat for 5k per year… and this deal is $49k total???? over 30 years after paying $3 million for it with taxpayers money? and it won’t be generating any property taxes? Correct me if I am wrong, but the town put out a RFP for the Katama Airport restaurant with a minimum of $50k per year rent and then this prime piece of property is given away for nothing?? Or is the article a misprint of the actual financial terms (hopefully). If this is the best the town could do, REJECT THE BID and put it out again. While we are giving away the town…how much is the rent for the exclusive right to run the chappy ferry cash cow?
Unbelievable! A thirty year lease for a total of 50K with payments of 4k to 5k per year starting in year 20. No one can rent a 1 bedroom apartment for 12k per year now, but in 20 years, it would be an even better deal to the developer.
The town is basically spending 90k per year in interest (if borrowed at 3% per year interest). The town should should condemn the property and level the house so that it can be rebuilt new without historical restrictions except for local zoning. Look at how nice the old Navigator restaurant was redeveloped.
The town should not be a landlord or a developer. Sell it and split any profits realized above 3 million plus expenses with the Halls to avoid litigation. I doubt there will be any profits, but who knows?
There has to be a math problem here! $49,000 paid to town over 30 years? That does not pay the interest to buy the house? Who is paying the taxes on the property? Can someone review the numbers and let us taxpayers know if this is real? The taxpayers of Edgartown paid $3 million for the run down house. If the $49k is real, then the taxpayers need to speak up and reject this. The town should not be in the business of losing money of assets that it owns.
I re read this article 3 times thinking there was a digit omitted on the proposed rent for the property .. Factoring in the developer investment etc.. the real return for the town sound incredibly low.. Will the lack of rent for the first 20 yrs. equate to a a rent free lease for the retail & rental apartments.. 🙂
I told you Buzzy would be laughing last
What a Joke…… We never learn…. Just like the Library fiasco….. Buzzy has a good case hear….
I called it more than a year ago – the tree that caused all this trouble, its days are numbered.
Stop whining. The towns, solves a blight, gets some housing, adds to tax base (sales), creates jobs (const. & permanent) and will own all the improvements. On a financial present value basis the nay sayers are factually wrong, very good deal for the town. BTW you could have bid, but its easier to just complain.
Property generates (effectively) zero income for the town? Sounds like it might have been worth slightly less than $3 million.
I think it’s implied that Mr. Nicotera will need to redevelop the building on his own dime. Just an offhand guess, but with current building costs above $400 per square foot—I’ll bet it’s going to be a at least $500,000 and likely more.
As I understand it, Mr. Noctera and Berger will have to invest over $1mn to fix and renovate the house. It is a beautiful old historical structure and it is falling down from neglect. After 30 years, the town will receive a new building back having invested nothing in renovating it or managing it.
The Development team has committed to a construction budget of $1.8 million, and is also willing to possibly negotiate the construction of the mini park on their dime as well.
Everything about this process is public information, before you assume, ask.
There is not much of this that is been easily obtained by the public. For instance what condition will the building be in in 30 years? Are they going to have to maintain it to perfect Condition? There should be some sort of profit-sharing with the town on this. Do we know what the developer is planning on making on this property? Are we going to be able to see financial records and audit Books? From the public meetings the selectmen did not even review this financial impact this has on the town. They just want a new building they’re at any cost to the taxpayers. Please show up at the special meeting on Thursday and raises questions. Because after that this is a done deal and another bad deal by this group of slectman. I understand the ad hoc group to advise the selectmen did not even take financial consideration or impact on the town at all, unbelievable.
Edgartown is incredibly lucky to have Mr Berger on board
He is A very smart man with a love for the town and the foresight to see both preservation and the future
Or return it to continue its fall into disrepair.
This is a great deal for the developer. They have NO payments for 20 years on a $3-million dollar property. What are the requirements on developing the property? Are there rent controls? They are going to be able to rent one of the apartments for $5k+ a week and only pay $5K a year (after 20 years of free rent).
The taxpayers paid for the property and are now going to forgo roughly $20,000 a year in property taxes.
The Town should not be in the business of buying personal property….that is not there function…. Mr. Hall will clearly have a good arguement about what he was restrained from doing in the past
These people got a $3,000,000 piece of property for 30 years, for basically the same as a $400 a month car payment. Not bad
For the want of a tree millions were lost.