Authorization for the disposal and sale of the real property at 15-19 Oak Street
|Official Text of the Article
VOTED: That the Town adopt the following resolution:
Resolution Pertaining to Oak Street Property Disposition
WHEREAS, on February 1st, 2019 the Town of Brookline purchased the properties 15, 17 and 19 Oak St (the "Properties") for municipal purposes and more specifically in anticipation of a successful debt exclusion vote to construct a school commonly referred to as The Baldwin School, and;
WHEREAS, such debt exclusion vote failed and there are no existing plans to construct The Baldwin School or any facility that would require the land or the properties list above, and;
WHEREAS, the Town paid a total of $4.7 million for the Properties which were assessed to contribute combined real estate taxes of $33,548 in FY 19 which were instead absorbed by all other taxpayers in Town, and;
WHEREAS, the Properties are neither designed nor constructed for economical use for any purpose other than residential use, and;
WHEREAS, the Properties cannot be rented at levels that would enable the Town to substantially mitigate the implicit and explicit costs of carrying and maintaining the properties, particularly once the Town begins to amortize the debt used to buy the properties, which the Town is required to do in FY21, and;
WHEREAS, putting the Properties back on the tax rolls would be considered new growth, thereby adding approximately an additional $43,000-$45,000 property tax revenue to the Town, and;
WHEREAS, the estimated implicit and explicit negative cost of carry to the Town currently approximate $124,000 per year and will increase to as much as $315,000 per year when the acquisition debt begins to amortize in 2021, and;
WHEREAS, explicit negative net 'cost of carry' incurred by the Town has an immediate and direct impact on the Town's Capital Improvement Program, and;
WHEREAS, Town Meeting has provided the Select Board with the authority to sell the Properties,
THEREFORE, BE IT RESOLVED that in consideration of the budgetary impact of maintaining Town ownership the Oak St properties, the current cost of rebuilding the Driscoll school and the possible $10+m increase in that appropriation, the Advisory Committee calls upon the Select Board to dispose of the Properties as soon as possible, with the following conditions and alternatives:
1. If the School Committee and School Department wish to carry the cost of the Properties and to absorb the entire explicit net 'cost of carry' they may do so. If they so choose, the School Department will also be the beneficiary of any positive net proceeds if, and, when the School Committee requests that the Select Board sell the Properties.
2. The Select Board determines, through consultation with realtors, that the sale of the Properties would generate a total loss (defined as the sale price less any negative net cost of carry less any outstanding debt) that could be avoided or materially reduced by maintaining ownership for a period of not more than three years from the original date of purchase.