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Home My WebLink About2017-11-14 Finance Committee Minutes TOWN OF NORTH ANDOVER FINANCE COMMITTEE Meeting Minutes Meeting Date November 14, 2017 Meeting Location: School Administration Building, 566 Main Street Timothy Tschirhart, TT, Chairman X Ed MacMillian EM X Jennifer Goldman, JG, Vice Chair X Divya Bhatnagar, DB X Karin Blake, KB X Charles Trafton CT X Thomas Ringler, TR X Angela Ciofolo, AC X Liz Gerron, LG X Sasha Weinreich, SW Note: All FINCOM votes are subject to change upon receipt of new information. Note: Documents used in this meeting are listed in Document Table, herein. Non Finance Committee Members in attendance Dan Leary (DL), Gives Presentation of the Massachusetts Innovation Work Call to order 6:47 TT: Called the meeting to order and welcomed Dan Leary who will be presenting to us tonight on the Massachusetts Innovation Works. JG Will handle the slides for DL during his presentation Dan Learv, Presentation of the Massachusetts Innovation Works (Osgood Landing) Economics (cannabis and marijuana manufacturing facility) Discussion starts on or about 6:47 pm/01:35 on video time DL: Thank you for having me back. For the record DL stated his name and address, 26 Andover Street,North Andover MA. DL: I am here tonight because I want the Finance Committee members to better understand the proj ect. I did put together some slides to help guide through some of the questions you put together (prior to meeting),but if you have any other questions during this time, please feel free to ask them at any time during this presentation. DL: Spoke of the slides he prepared for the presentation based on some of the questions that were asked. DL also referred to the Deck Rev 4 presentation for further details (also included in meeting package). I November 14,2017 DL: Stated that he will talk of his own background, Town Cost, Town Revenue, Timeline Growth, Capitalization and any hurdles. DL: Spoke of his background and stated that he studied agricultural and biological engineering, because I think farming is awesome. I also joined the army and saw some of the world. When I came back to North Andover I liked being an entrepreneur and also liked to help start businesses. I also had the opportunity to work with the Goldstein's since 2007 (owners of the property at 1600 Osgood Street). DL: Also talked of the solar project that he worked on at 1600 Osgood Street. DL: I got involved in this project because I thought it was the biggest development opportunity for North Andover. Last year when I came in front of you I was an unpaid consultant, now I am a paid consultant. DL: Spoke of what happened at the last Town Meeting and how the project was not passed. The Town was interested,but they clearly needed more information DL: So we did more work since last May's Town Meeting,by preparing, presenting and discussing this project with the Planning Board. We had great success with the Planning Board with answering their questions. DL: Also spoke of State Licensing DL We hired all experienced experts for this project, such as architects and engineers who would help with odor control. DL: Spoke of the use of a peer reviewer that will be required for this project. These peer reviewers are independent engineers who will report their findings back to the Town. Also commented of the Community Outreach that they are doing in Town, regarding the proposed proj ect. DL: Spoke of the Town Cost and how it is determined by the Town. I imagine it may include public safety and education, municipal administration and Community Development. DL: Commented that 1600 Osgood Street is not on the public sewer DL: Stated that there is no impact on town enterprise accounts, utilities or infrastructure. DL: Spoke on the Host Community Agreement. DL: Went on to say that all the water for cultivation will come from onsite wells and rain water collections. DL: Also spoke of how the water gets recycled and how they did extensive testing on the wells. There will be no impact on the lake or streams. The Finance Committee asked questions and made comments during DL's presentation 2 November 14,2017 DL: Moved on to Town Revenue. DL: Stated that the negotiations with the Town are confidential and that he cannot get into the details. DL: Spoke of what towns/cities do to attract commercial business into their towns/cities. DL: Spoke of a revenue deal for the town, the opportunity for the Town, market risk on developer,but not Town. DL: also spoke of Regulatory Risks, and inherit risks. Retail sales were also discussed. DL: Spoke of Growth and the Developer's intent, and how they will work with the Planning Board and Town. DL Commented on growing the business and avoiding it from becoming a nuisance or safety issue to the Town. DL: Spoke of medical marijuana and marijuana used for adult entertainment. DL: Spoke of cannabis cultivation, permitting and preparing the entire facility. DL: Commented that this is a transformative project that requires an"all-in" approach to growth. DL: This project will be very highly regulated. DL: Moved on to Timeline and spoke of the licensing steps involved. DL Also commented that a new roof needs to be put on this facility. DL Stated there will be no project until the Planning Board produces a Bylaw to allow the project and a letter of non-opposition from the Board of Selectmen, which will presumably follow a Host Meeting Agreement. The Planning Board has come a long way with the Bylaws. DL: Moved on to Capitalization, the owners of this property are also the owners of this project and developers of this project. They will bring their own family capitalization to put together the equity component of the project and will combine it with other debt vehicles. CT: Expressed his concerns with the financial stability of owners This created a conversation among the Finance Committee members. DL: Moved onto hurdles. The Finance Committee Members expressed an interest in a tour of the facility on Osgood Street to better understand this project's operation and meet the team. The Finance Committee Meeting thanked Dan Leary for coming tonight. 3 November 14,2017 New Business Discussion starts on or about 8:35pm/1:47:50 on video time TT: Stated that he got a call that they would like to add another representative from the Finance Committee Member to join the OPEB Committee. JG: Can we all think about it and get back to you? TT: Yes EM: Spoke of the event that took place on Friday that Mark DiSalvo arranged and planned. EM: Stated that this was a great opportunity to get to know everyone and work together, it was fun, but the big lesson was that it got its point across with people working together. Lots of group activities and getting conversations going. TT: Also, added to what took place at the Friday event, they posed a problem and as a group you collectively solve problems. Approval of Minutes October 14, 2017 Discussion starts on or about 8:43pm/1:56:07 on video time JG: Made a motion to approve Minutes as written TR: Second the motion All in favor TT: Recommended and encouraged everyone to read the Budget Policy Statement for Fiscal Year 2019 that was included in the Meeting Packets for tonight's meeting Calendar Update,Jennifer Goldman Discussion starts on or about 9:00 pm/2:11:50 on video JG: Spoke of timing involved with planning Finance Committee Meetings based on the FYI Budget Calendar JG and the Finance Committee members requested that the Capital Improvement Plan be given to the members or mailed out to them as well as the School Department Budget. TT: Spoke of how the Finance Committee members in the past have requested department heads come and speak at Finance Committee meetings to discuss what their needs are. It is our opportunity to ask them questions, and make sure they have what they need to do their jobs. Public Comment Discussion starts on or about 9:15 pm/2:28:00 on video time There was no public Comment Ad'ournment 9:17 PM LG: made a motion to adjourn KB: Second the motion All in favor to adjourn 4 November 14,2017 Document Table Agenda November 14, 2017 Minutes for October 17, 2017 Finance Committee Questions for Dan Leary Massachusetts Innovation works Presentation CIP Projects for School missing Elementary School Renovations FY2018 Budget Status Report FY18 CIP Budget Policy Statement North Andover School Department—Fincom Follow up North Andover School District Financial Summary Dan Leary's slide to answer questions from FINCOM ------------------------------------------------------------------------------------ --------------------------------------------------------------- 5 November 14,2017