City Council - Finance Committee

CHICOPEE CITY COUNCIL FINANCE COMMITTEE MEMBERS George Moreau, Chairman John Vieau, Vice Chairman Fred Krampits Frank Laflamme James Tillotson APPROVED William Zaskey Timothy McLellan MINUTES September 9, 2015 The following are the minutes of a public hearing held Wednesday, September 9, 2015 at 6:00 PM in the City Council Chambers, Fourth Floor, City Hall Annex, 274 Front Street, Chicopee, MA 01013. Members Present Moreau, Krampits, Tillotson, McLellan Absent Vieau, Laflamme, Zaskey Also Present Daniel Garvey (Associate City Solicitor), Councilor Roy At-Large, Councilor Roy Ward 9, Councilor Brooks, Councilor Zygarowski, Councilor Labrie, Councilor Lamontagne The meeting was called to order at 6:00 PM In compliance with the Open Meeting Law the Chairman asked if anyone in the audience was recording the meeting. ITEM #1 ORDERED THAT the sum of $425,000.00 be and hereby is appropriated to the following named account: Community Development Special Account for Environmental Permitting of Westover Airpark South Said amount is to be taken from available funds in the Stabilization Fund (ACCT 83001008- 599980) Michael Bolton (Mass Development Corp), Ken Delude (President, Western Mass Development Corp), Michael Vedovelli (Director Community Development) were also present. In order for a project to get started at Airpark South there is environmental permitting that needs to take place. The estimated costs will be $425,000.00. This process takes 1 approximately 12-18 months. This will help identify any environmental impacts that this 100 + acres parcel will have. Councilor McLellan asked what particular piece will be looked at. Ken Delude stated it’s where the terminal buildings used to be. The city owns about 57 acres of this property. Ken Delude stated that the master plan would help layout where buildings will go. He further stated that there was someone interested in a large piece of property to build on for manufacturing purposes. Once developed this business would create 300-400 jobs. This facility would also create water revenue and taxes for the City. Unfortunately, that fell through. He also stated that there is a lack of permitted land in the City of Chicopee for large scale manufacturing. All traffic would go through Air Park West. Councilor Roy At-Large asked how a private firm (Western Mass Development Corp) benefits from this project. Michael Bolton replied that the property was originally acquired using federal funds. When its developed later on the funds will go back to the airport and available for eligible projects. WMDC makes money by selling the land. WMDC owes the FAA 95% of expenses. The money will remain at the local level. Councilor Roy At-Large stated that he doesn’t understand why a private organization is coming to the city for a loan that has no guarantees no collateral only that there could be a potential for jobs but the City hasn’t seen that with what’s happening in the falls. He further stated that it’s a big risk. He asked why WMDC is not utilizing its own money and Mr. Bolton replied that they are not currently in the position to do so. Councilor Roy Ward 9 asked what the ownership structure of West Mass Development Corp. Ken Delude stated that he is the President. The corporation is a private not for profit corporation. It’s responsible for properties in Chicopee at the Chicopee River Business Park. They are acting as a consultant for Westover Metropolitan Corporation. Westover Metropolitan Corporation are the owners of the property. They are a public not for profit corporation that for years has developed the various airparks. They are also the managers and they run the airport facility. Councilor Roy Ward 9 further asked if any taxes are being paid on this property. It was replied that no taxes are being paid. Michael Bolton stated that the property was purchased in 2009 from the City. Councilor Roy Ward 9 asked how WMDC is funded. Michael Bolton stated that they generate their revenue from hanger rentals, landing fees, and fuel sales on the airport side. Councilor Roy asked how WMDC is marketing the property on East Main Street. The East Main Street property is a different niche. There is a website that contains the marketing information for that property also industrial brokers meetings and various government agencies, real estate journals are all areas that this property is marketed. Councilor Lamontagne asked if this property was a shovel ready property and has the Chicopee Conservation Commission made a determination that there are wetlands on the property. WMDC replied that that’s what the request for expenditure of funds would cover the cost of local and state determination. 2  Councilor Zygarowski asked if there is a better possibility of obtaining an interested party to purchase the property if the property had all necessary permits. Ken Delude replied absolutely. Councilor Zygarowski questioned what guarantee the city has in getting the money back. Ken Delude stated that money won’t be coming in until land has been sold. Motion made by Councilor Krampits and second by Councilor Moreau to approve. Committee vote 3 favorable 1 unfavorable Voting in favor: Moreau, Tillotson, Krampits Voting unfavorable: McLellan ITEM #2 Minutes – August 10, 2015. Motion made to approve. Motion passed. Meeting adjourned at 6:28 PM. 3