SPECIAL TOWN MEETING
June 21, 2007
The Special Town Meeting was called to order at 7:40 PM at the Senior Center on
75 Groton Rd. The Moderator Dennis E. McHugh recognized the presence of a quorum.
There were 123 Town Meeting Representatives present. The Moderator announced that
those wishing to participate in the Pledge of Allegiance to please rise. The Moderator
instructed the Body to observe where the fire exits are located in the room and then went
over the rules and procedures of the meeting regarding amending motions and debate.
Town Counsel John Giorgio is available to the Body to answer any questions.
Selectman Samuel P. Chase moved that the reading of the Constable's return of
the Annual Town Meeting warrant be waived. Motion carried, unanimously.
Selectman Samuel P. Chase moved that the reading of the entire warrant be waived.
Motion carried, unanimously.
The Moderator made an announcement concerning the Annual Fall Town
Meeting. October 15th which is the third Monday in October and according to the by-law
that is when the Fall meeting is to begin scheduled. Due to the resignation of
Congressman Martin Meehan there will be a Special State Election on Tuesday October
16th. The Board of Selectmen have voted to open the Fall Town Meeting on October
15th, then adjourn immediately to Thursday October 18th. That is when the articles will
be addressed. Due to the situation, tellers will not be available for taking attendance on
October 15th therefore the Representatives will not be marked absent. He asked that the
Representatives make note of this change in case they had other commitments the
following week because there is a possibility that the meeting could be continued to the
following Monday.
UNDER ARTICLE 1 Selectman Samuel P. Chase moved that the Town vote to
approve the Tax Increment Financing Agreement between the Town and Circle Company
Associates, Inc., substantially in the form as is on file with the Town Clerk (the “TIF
Agreement”), pursuant to GL c. 40, §59, and to confirm the Board of Selectmen’s
selection of the location of the project as an Economic Opportunity Area (“the 300
Apollo Drive Economic Opportunity Area”), and to authorize the Board of Selectmen to
submit an Economic Opportunity Area Application, Tax Increment Financing Plan, and
Certified Project Application to the Massachusetts Economic Assistance Coordinating
Council, all relating to the project as described in the TIF Agreement to be located in the
300 Apollo Drive Economic Opportunity Area, and to take such other actions as may be
necessary to obtain approval of the Certified Project Application, the Economic
Opportunity Area, the Tax Increment Financing Plan and TIF Zone and to implement the
TIF Agreement.
The Town Manager Paul Cohen addressed the Body, he thanked the
Representatives for attending the meeting. He explained that together he and Andrew
Sheehan, Director of Community Development will present the article and take questions
from the Body. He first noted and thanked Andrew Sheehan and Finance Director/ Tax
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Collector/ Treasurer Kerri Spiedel for their tireless efforts and contributions they made
regarding this project. He thanked the Board of Selectmen and the Finance Committee
for their support of the article. The location of this property is at 300 Apollo Drive. The
TIF agreement would be for the Circle Company Associates Inc of Boston, and Ontario.
He then introduced the Circles Representatives who were present. Hugh Merryweather,
Chief Financial Officer, Sue Pronco, Director of Risk Management and Brian M. Cohen,
Director of Consulting Services Richards Barry Joyce & Partners. He also noted that
Brian Cohen is not related to him. He explained that this is a 300,000 square foot office
building which has been vacant since 2005. Circles would lease 39,132 square feet of this
property. Circles function is to offer concierge and personal assistance services to
corporate clients. He explained what a TIF agreement is. A company is offered an
exemption in their assessed value of real-estate taxes over a period of time. If this is
voted, Circle would be allowed tax breaks from the State which would be a 5% State
investment tax credit on their corporate excise tax. In the past, the Body had voted for
two TIF’s. In October of 2004 Hittite Microwave Corporation at 20 Alpha Rd was
granted a TIF and it is current. In May of 2000 a TIF had been established for Unisphere
Solutions on 1 Executive Dr but that has since been dissolved. He explained that as
recently as last year the Town had worked on securing a TIF for Motorola at 300 Apollo
Dr but in the end they went to the Cross Point Towers located in the City of Lowell. A
TIF agreement remains in effect only as long as all projected jobs and capital investments
are attained. Annual Reports must be filed by the end August. The agreement is not
transferable. It is used only for the company it is assigned to. If the company wishes to
expand in the future its square footage of space it will require a new TIF agreement and
another Town Meeting vote. Andrew Sheehan then gave a presentation. He listed the
different companies that had been located on the site and since left. Currently all the
Town is receiving is the real-estate taxes, if this was to pass a lot of other companies
within the Town would benefit; more income for the various food establishments, and
other stores. There would be more income for the Town because of the improvements
done to the property. If for whatever reason the Company was to leave this location the
TIF ends immediately. He explained the actual details of the proposed TIF for Circles.
The Company is planning on making a $5 million dollar investment in tenant
improvements, in IT, infrastructure furnishings, fixtures, & equipment. They will make
$3.9 million in rent payments over the first eight years. This would all total for an
estimated assessed value increase of $1.5 million dollars. Currently the company has six
hundred employees. If they came to Chelmsford this would be a corporate expansion in
which a service delivery facility would be created. By doing this expansion they estimate
that they will create three hundred and thirty new jobs within the first two years. There
would be thirty management positions with salaries of $40,000-$150,000, seventy four
professional positions with salaries of $35,000-$70,000 five technical positions with
salaries of $40,000-$90,000. And finally, two hundred and thirty skilled positions with
salaries of $14.00 per hour. These are potential job opportunities for Town residents.
Advertisements would be done in the local papers as well as job fairs held at a local hotel.
Once established a trickle effect would occur. This facility would add business to the
surrounding businesses already located in Town. It would increase the Town’s economic
activity. Food establishments, department stores and others would all gain from this
facility. Currently the building is a 300,000 square foot office building owned by
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American Industrial Properties REIT, Inc. Trustee of USAA Properties IV Trust which
has been vacant since 2005. The past owners were Apollo Computer, Hewlett Packard,
and Cisco Systems. The current assessed value is $20,581,400. Circles would lease
39,132 sq feet, or 12.88 % of the building. A TIF agreement is a property tax exemption
on the additional “incremental value” added to a property. Increment is the difference
between the beginning assed value (known as the base valuation) and the assed value
going forward in time. If this article passes, the base valuation will begin in FY 2008
which is July 1, 2007. The taxes on the base valuation are not exempted by the TIF he
explained only the incremental value, which in this case would be Circle’s investment to
the property. This TIF would only apply to the Circle’s leased portion of the building. If
any other businesses were to come into the building they would pay full taxes. There will
be no shifting of taxes to property owners to make up for the exemption. He asked the
Body to refer to the handout which shows the breakdown of these details. He reminded
the Body that these are estimated figures only based on current and historic trends. The
current taxes for the entire property are $257,885. The pro rated figure for Circles
portion would be $33,216. This figure is not exempted and will grow with inflation.
Currently there is no business on the property. This is an opportunity to have a portion of
it active. If Circles wanted to expand in the future they would have to come back to the
Body and seek another TIF agreement. Circle has expressed that they did in fact
communicate with the Town of Marlboro regarding this issue. However, they felt that
Chelmsford had a lot to offer due to its location and surrounding business opportunities in
the area. This is a great prospect for the Town to take advantage of it would be a win win
situation and he asked that it be supported. Questions were asked by Deirdre Connolly,
Kate Torres, Tom DePasquale, which had already been addressed in the presentation but
explained again. Kathy Tubridy questioned the percentages shown on the chart. Art
Carney questioned the assessed value and what the lease agreement was. Marian
Paresky questioned if the jobs were all going to be physically located in Town and not on
line. Yes all in Town. Would there be benefits paid to these employees, it was indicated
by the Circles Representatives yes benefits would be available. Karen Kowakski
questioned if local businesses would be used at contacts for the company. The company
has current contracts in place that support their operation, however more than likely if
other services could be provided by local business they certainly would be considered.
The Manager explained that Circles is a good “corporate citizen” if granted the TIF when
they arrive they plan on contributing to the community and its various organizations. Jim
Lane asked if current business were eligible to apply for a TIF or if this only applied to
new businesses coming into Town. Any business could be eligible if they met the
criteria. Samuel Poulten asked if there was a downside to the proposal. No there would
not be. Brian Latina questioned if the Town of Marlboro had been contacted to see if in
deed Circles had approached them, and would they consider coming to Town if no TIF
agreement was offered. No Marlboro was not contacted and more likely then not if there
is no agreement they would not come to Chelmsford. The Moderator asked for the
Finance Committee’s recommendation. The Finance Committee was in favor of the
article. The Board of Selectman recommended the article. Glenn Thoren spoke in favor
of the article. He thanked Andrew Sheehan for his presentation and felt that this would
be a great opportunity for the Town to take advantage of. He thanked Circles for
approaching the Town and for considering it in this proposal and asked that the
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Representatives support them by voting for it. Dennis Ready moved the question. The
Moderator asked if there was any need to hear further debate. Hearing none he asked for
a show of hands on the motion. Motion carried, unanimously. He then asked for a
show of hands on the motion. Motion carried.
UNDER ARTICLE 2. Selectman Samuel P. Chase moved that the Town vote to
authorize the Sewer Commission to enter into an intermunicipal agreement with the
Chelmsford Water District pursuant to the provisions of Massachusetts General Laws
Chapter 40, Section 4A, for the purpose of including in the construction contract for the
Burning Tree Lane Area Lateral Sewer Project, Contract No. 06-1, being undertaken by
the Sewer Commission certain water distribution system upgrades in the same area, said
intermunicipal agreement to provide that the Chelmsford Water District shall be
responsible for paying the portion of the construction contract price for those costs
attributable to the water distribution upgrades in the amount of $424,533.02, plus
engineering costs as agreed to by the Sewer Commission and the Chelmsford Water
District, and to pay any additional costs that are due and payable under the construction
contract attributable to the water distribution system upgrades provided any such
additional costs are incurred with the prior consent of the Chelmsford Water District.
The Town Manager explained that this is a State law that requires before any two
separate municipal entities work together they must have a contract agreement on what
work is going to be performed and it would require a vote of this Body. This is the case
with this article. The Water District is not part of the Town’s government as is the Sewer
Commission; therefore this requires a Town Meeting vote in order to proceed with the
project. The Moderator asked if there were questions. Hearing none he asked for
recommendations. The Finance Committee recommended the article. The Board of
Selectmen recommended the article. The Moderator asked if there was any debate,
hearing none he asked for a vote by way of a show of hands. Motion carried,
unanimously.
Seeing that there was no further business, Selectman Philip Eliopoulos moved to
adjourn the Town Meeting. He asked for a show of hands, motion carried,
unanimously. The meeting adjourned at 8:50 PM.
__________________________
Dennis E. McHugh, Moderator
___________________________
Elizabeth L. Delaney, Town Clerk
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