Town Council - Ways & Means Committee

Braintree Town Council MEMBERS Joseph Reynolds, Chairman Committee of Ways & Means Julia Flaherty, Vice-Chairwoman One JFK Memorial Drive Lawrence Mackin, Member Braintree, Massachusetts 02184 Elizabeth Maglio, Member MINUTES Thursday, March 24, 2022 A meeting of the Committee of Ways & Means was held via Zoom Webinar, on Thursday, March 24, 2022 at 5:00p.m. Councilor Reynolds was in the Chair. Clerk of the Council, Susan M. Cimino conducted the roll call. Present: Joseph Reynolds, Chairman Julia Flaherty, Vice-Chairwoman Lawrence Mackin, Member Elizabeth Maglio, Member Also Present: Nicole Taub, Chief of Staff/Town Solicitor Ed Spellman, Director of Municipal Finance Melissa SantucciRozzi, Director of Planning & Community Development Margaret LaForest, MA Office of Business Development Brandon Pyers, Deloitte Carl Nerlick, Deloitte Approval of Minutes • January 25, 2022 • February 15, 2022 • March 1, 2022 MOTION: To Approve Minutes of January 25, 2022 Motion: by Councilor Flaherty to Approve Minutes of January 25, 2022 Second: by Councilor Mackin Vote: For (4–Flaherty, Mackin, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) MOTION: To Approve Minutes of February 15, 2022 Motion: by Councilor Flaherty to Approve Minutes of February 15, 2022 Second: by Councilor Mackin Vote: For (4–Flaherty, Mackin, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) MOTION: To Approve Minutes of March 1, 2022 Motion: by Councilor Flaherty to Approve Minutes of March 1, 2022 Second: by Councilor Mackin Vote: For (4–Flaherty, Mackin, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) March 24, 2022 Ways & Means Committee 1 of 6 Old Business • None New Business • 22 017 Mayor: Authorization to enter into Tax Increment Financing Agreement for property located at 400 Wood Road or take up any action relative thereto Chairman Reynolds asked if there was anyone from the Mayor’s office who would like to speak on Order 22 017. Nicole Taub, Chief of Staff stated Margaret LaForest, MA Office of Business Development; Brandon Pyres, Deloitte and Carl Nerlick, Deloitte are in attendance and have been working to negotiate and reach an agreement on a tax increment, financing agreement for the property that would enable their client to move forward and sign a lease to relocate an existing Life Science operation into Braintree. The site is a little over 14 acres of land. The building is about 153,600 square feet. It was build around 1975 and its current assessed value is $13,053,600. In 2022 the value of the taxes on this site are just over $285,000. Brandon Pyers, of Deloitte stated this company is a global device manufacturer. They are headquartered on the East Coast of the United States. They are largely based on regenerative medicine focused on regenerative skin and the surgery and reconstruct them in general surgery. This is for patients post- surgery, particularly those patients that have severe skin or burn wounds. This operation is going to be biotechnology life science manufacturing. That process employs roughly 127 people. They are looking to onboard roughly 25 new jobs to this location. This building will be a clean room environment so it will take time for folks to build it out and also to certify it. Nicole Taub, Chief of Staff stated there is a significant financial investment that is going to be going into this property estimated $35 million for construction and $16 million for machinery and equipment. The relocation of existing workforce of 125 employees as well as the creation of 25 new jobs are all factors that played into the determination of what would be appropriate from a tiff standpoint. The following is a summary of the TIF requirements: • Term must be at least 5 years but no more than 20 years • Business pays the full tax rate on the "base value" of the property • Business gets an exemption from property taxation on all or part of the increased value accrued as a result of the development, known as the "increment" • The percentage of the exemption can range from 5% to 100% over the term • TIFs are an economic development tool that help support local job growth March 24, 2022 Ways & Means Committee 2 of 6 There are 2 key components of TIF agreements: 1. A commitment to invent in a real estate development project. This can be new construction, building expansion or building renovation. 2. A commitment from the company to create additional jobs. If the tenant fails to meet any of those obligations, or commitments, there is a protocol in place for the town to proceed with decertification of the product of the incentive, meaning the TIF would no longer be applicable to the property. Margaret LaForest, MA Office of Business Development stated my job here is to support the municipality through the process as well as supporting the company through this process. Our Legal Counsel will review this TIF document. Companies see the value you have here that provides them to locate in your community including your utilities. Councilor Flaherty asked about the new jobs. It was stated the rate of pay would be approximately $78,000 to $80,000. Councilor Maglio asked if the jobs will be full time. It was stated the full-time head count. Councilor Maglio asked about the waste and the impact. Will there be any green practices involved in the construction elements. Brandon Pyers stated the company is not a large user of water. Wastewater is not a significant issue. This is the sole production facility for this product. We are serving the entire US. Councilor Mackin stated I support this and thank Mayor Kokoros for bringing this forward. Chairman Reynolds stated I do see this type of project as a business in our community is going to make a significant step towards increasing the badly needed revenues. Chairman Reynolds asked what are the specifics that would trigger decertification. I am interested in a performance schedule of monitoring and reporting out. I would be interested in the fit-up and when the full staffing would be in place. What is the States process for approval and expected timelines. Nicole Taub stated I have taken note of these questions and will get these answers to you. Chairman Reynolds asked if there is a Motion to Table Order 22 017 to March 29, 2022 at 5:30pm Motion read by Councilor Flaherty to table Order 22 017 to a future Committee of Ways & Means Meeting. Motion: by Councilor Flaherty to Table Order 22 017 Second: by Councilor Maglio Vote: For (4–Flaherty, Mackin, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) March 24, 2022 Ways & Means Committee 3 of 6 • 22 018 Mayor: Authorization to Accept Donations or take up any action related thereto Chairman Reynolds asked if there was anyone from the Mayor’s office who would like to speak on Order 22 018. Nicole Taub, Chief of Staff stated this donation from the Braintree Art Association, in the amount of $20,000, would be used to set up a scholarship fund, in the amount of $1,000 per year, to support a Braintree art student going to college. This was brought to us from Terry Gorman. Chairman Reynolds asked if any Committee members would like to speak on Order 22 018. Chairman Reynolds asked if there is a Motion for Order 22 018. Motion read by Councilor Flaherty for Favorable Recommendation to the full Council: MOTION: That the Town of Braintree be and hereby is authorized, in accordance with Section 53A of Chapter 44 of the Massachusetts General Laws to accept the following gift upon the conditions attached and herein set forth: DONOR GIFT PURPOSE Braintree Art Association $20,000 Art Scholarship Motion: by Councilor Flaherty for Favorable Recommendation to the full Council to Approve Order 22 018 Second: by Councilor Mackin Vote: For (4–Flaherty, Mackin, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) March 24, 2022 Ways & Means Committee 4 of 6 • 22 019 Mayor: Request for Appropriation - CPA Appropriation – Nathan Buliga Park & Street Hockey Rink or take up any action relative thereto (Public Hearing scheduled for 4/5/22) Chairman Reynolds asked if there was anyone from the Mayor’s office who would like to speak on Order 22 019. Nicole Taub, Chief of Staff stated at the March 14, 2022, meeting of the Community Preservation Committee, the Committee voted unanimously to recommend the appropriation of Community Preservation Act funds in the amount of $450,000 for the renovation of the Nathan Buliga Park and Street Hockey Rink. This application has been developed by Geoffrey Ostman, a friend of Nathan Buliga and community advocate, Councilor Lawrence Mackin and Acting Recreation Director Chris Griffin, with my support as well as the support of Highlands Elementary School Principal Nancy Pelletier, the Highlands Parent Teacher Organization, Braintree Youth Hockey and residents of the Highlands community. The proposed renovations to the area would include a fenced-in park grassy area, to be known as Nathan Buliga Park, a handicapped accessible street hockey rink complete with sideboards, nets and a resurfaced, repainted area for play. These improvements will create an enhanced area of recreation for the Highlands neighborhood and Braintree community as a whole. Chairman Reynolds asked if any Committee members would like to speak on Order 22 019. Councilor Flaherty asked if the playground behind Highlands School would be replaced as well. Christopher Griffin, Assistant Director Parks & Recreation stated there was some discussion about doing it all as one project but the hockey rink at least for the time being should be the focus. Councilor Mackin stated I was involved with this in the beginning. Use of this should increase a lot. This was a team effort and a lot of work has gone into it. Councilor Maglio stated I am excited to see this happen for the kids in the neighborhood. It is a great use of CPA funds. Is there a process to get a project going? Melissa SantucciRozzi, Director of Planning & Community Development stated we do not have deadlines but some communities do because they are Town Meeting Communities where these meetings typically happen in the spring and in the fall. We have the city form of Government and have the ability to go to the Council twice a month with these types of requests. We keep a list of people who have reached out and is on the CPC agenda as potential projects. Councilor Flaherty asked if there is a plan for prioritizing projects or just what ideas come along from residents. Melissa SantucciRozzi, Director of Planning & Community Development stated we do have a plan and we will be revisiting that plan. Right now the Master Plan is our main focus. My goal is to update it within the next 2 years. I can share this current plan. March 24, 2022 Ways & Means Committee 5 of 6 Chairman Reynolds stated I am in support of this project. It is a great use for the youth. Chairman Reynolds asked if there is a Motion for Order 22 019. Motion read by Councilor Flaherty for Favorable Recommendation to the full Council: MOTION: That in accordance with the provisions of Chapter 44B of the General Laws and with the recommendation of the Community Preservation Committee, the appropriation of $200,000 from the CPA Open Space/Recreation Fund and $250,000 from the Unreserved Fund for the Nathan Buliga Park and Street Hockey Rink (Assessor's Map 1093, Plot 01), conditional on the funds expended under the direction of the Community Preservation Committee and the Director of Planning and Community Development. Motion: by Councilor Flaherty for Favorable Recommendation to the full Council to Approve Order 22 019 Second: by Councilor Maglio Vote: For (4–Flaherty, Mackin, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) It was unanimously voted to adjourn the meeting at 6:37p.m. by Roll Call Vote. Respectfully submitted, Susan M. Cimino Clerk of the Council Documents provided for Meeting • 22 017 Mayor: Authorization to enter into Tax Increment Financing Agreement for property located at 400 Wood Road or take up any action relative thereto • 22 018 Mayor: Authorization to Accept Donations or take up any action related thereto • 22 019 Mayor: Request for Appropriation - CPA Appropriation – Nathan Buliga Park & Street Hockey Rink or take up any action relative thereto (Public Hearing scheduled for 4/5/22) March 24, 2022 Ways & Means Committee 6 of 6