Cushing Village’s New Owner Seeking Added Concessions From Town

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Photo: The current state of the location of Cushing Village.

The more things change, the more they stay the same.

That 19th-century French saying has a ring of truth to it when the discussion turns to the long-stalled Cushing Village residential/retail/parking development as it appears the new owners are seeking their own set of concessions from the town.

Approved for construction in July 2013, the project suffered through two-and-a-half years of delays and missed opportunities under the former ownership of lead developer Smith Legacy Partners.

So there was hope in the community when national housing firm Toll Brothers purchased the development rights in March of this year that a change at the top would allow the $80 million project – 115 units of housing, 38,000 sq.-ft. of stores and approximately 200 parking spaces – to move quickly to the construction stage.

In fact, representative of the Pennsylvia company said then it would not seek changes to the project which would warrant restarting the process, expressing confidence it would make the Aug. 26 deadline for the firm to sign a purchase and sale agreement with the town to buy a key town-owned land parcel, the municipal parking lot adjacent to Trapelo Road and Starbucks for $1 million, that would allow building to commence. 

For the town, Toll Brothers’ commitment to the site would stop the “endless loop of uncertainty” hampering work from commencing, said Selectman Sami Baghdady in March.

But what was said in the Spring appears to have fallen to the wayside in mid Summer. According to documents from the Board of Selectmen, Toll Brothers representatives will come before the Board at its Monday, Aug. 22 meeting seeking a new extension to the P&S deadline taking place four days later. 

In addition, the firm will request amendments to the Land Development Agreement – which for commercial property is a development plan that typically includes the time frame for completing the project, the property description, design sketches, and other details. 

The details of the changes and why they are being sought by Toll Brothers have not been publically flushed out – both the town and Toll are not speaking on the matter – as both sides appear ready to present their arguments on Monday.

Earlier this month, the board and the town appeared ready to sign all necessary paperwork on the 22nd, with current board chair Mark Paolillo saying that “both sides want this to go through.” 

Belmont Firefighters Agree To Drug/Alcohol Testing In New Contract

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Photo: Belmont Fire in action.

Drug and alcohol testing policy is now part of firefighters job after the Belmont Board of Selectmen approved a three-year contract with the 54 members of the International Association of Firefighter Local 1637 at its Monday, April 25 meeting. 

“The firefighters really stepped up to the plate with the town” reaching an agreement after two years of negotiations, said Belmont Fire Department Chief David Frizzell. 

While the mandatory testing is new to the department, “it’s becoming the norm among the majority of top tier fire departments,” said Assistant Fire Chief Angus Davison.

The contract, which is retroactive to July 1, 2014, and runs through June 31, 2017, provides for an annual salary cost and living adjustment of two percent and while 13 personnel will see their yearly Advanced Life Savings stipend bumped up from $2,000 to $2,750. 

New employees will pay more for their health insurance contributions, from 20 to 25 percent, while seeing a 25 cent increase per hour in compensation. There are also changes in benefits for personnel who obtain associate’s and bachelor’s degrees in fire science. 

Letter to the Editor: In His Work On Override, Paolillo Deserves Our Vote

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Correction: In my letter, I mistakenly attributed statements from supporters who are campaigning for Ruban to “the Ruban campaign.” Ms. Ruban did not make these claims. 

To the editor:

I care deeply about the Belmont schools. I rely on our town services. I feel strongly that we need to fix our crumbling infrastructure; roads, sidewalks, buildings, playgrounds, etc. 

The 2015 successful override advanced all of these priorities and provided greater financial security for our town.

We owe that to Mark Paolillo.

For me, it is a clear choice:

  • Choose a selectman with 22 years of experience on the Board of Selectmen, Warrant Committee, and Town Meeting.
  • Or choose a selectman in Alexandra Ruban whose only Belmont experience is voting in one town election.

This institutional knowledge that Paolillo brings to the Board of Selectmen is irreplaceable. 

Let’s take the override as an example of Mark’s knowledge and leadership. Most people only saw the seven-week campaign. We celebrated and congratulated each other for making it happen.

But I know, it wouldn’t have happened without Mark’s multi-year preparation, advocacy, and leadership.

How did the override come to be?

  • Mark did his homework. He determined that a key reason for the failure of the 2010 override was that we didn’t adequately show the voters why we were asking for more money.
  • He laid the groundwork. He and the selectmen upgraded the town’s administrative and financial staff so we could properly do the analysis.
  • He made the case. He created and led the financial task force which exhaustively evaluated all avenues to address the town’s financial challenges. 
  • He got it on the ballot. Many obstacles could have prevented putting the override on the April ballot, but Mark made it happen.
  • He advocated for the override. Mark made presentation after presentation explaining why the town needed an infusion of new revenue.
  • And in the last seven weeks, we – the community as a whole – launched a vigorous campaign. I don’t underestimate the importance of the campaign. But I won’t overestimate it either.

Passing an override is hard work. No one wants to pay more taxes. Residents will not pass an override without believing that everything else has been tried. And that requires hard work, experience, knowledge and leadership.

Experience means you know how to get things done. You know who has the skills to solve complex problems. You know what has been tried in the past, why it worked, or why it failed. You are ready to act. In other words, you don’t have to reinvent the wheel.

It is not enough for our leaders to vote for our priorities. They need the experience to do the hard work that makes the vote possible.

I have only had one meeting with Ruban. I believe that she is smart and well-intentioned. But I also believe that she needs experience in Belmont town government before she is qualified to serve as a selectman.

I began my learning curve five years ago. After two years on the Warrant Committee, five years on Town Meeting, three years on the Underwood Pool Building Committee, and numerous other Belmont leadership roles (YES for Belmont, Joey’s Park, Winn Brook PTA, Belmont KidSpace), I am still on a learning curve. I do not believe it is possible to be the kind of selectman that Belmont deserves without prior experience.

Belmont has important challenges ahead: the high school project, continued enrollment growth, budgetary pressures, and quality of life projects that require Mark’s collaborative approach to complete. 

The future of Belmont’s children and seniors and everyone in between will be better served by retaining Mark Paolillo’s institutional knowledge, leadership and experience on the Board of Selectmen.

It is a clear choice.

Please join me in voting for Mark Paolillo on April 5.

Ellen Schreiber

Sandrick Road

Future of Cushing Village On Boards’ Agenda Tuesday Night, 969 Days After Town’s OK

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Photo: After 969 days, still nothing built at the proposed Cushing Village development.

In his 1953 groundbreaking book on sending men to Mars, German/American rocket scientist Werner von Braun estimated it would take 969 days for a spaceship to venture between the two planets, a time span von Braun dubbed “at the breaking point of [human] endurance.”

And it appears Belmont has reached its “breaking point” as tonight, Tuesday, March 22, the Board of Selectmen and Planning Board in joint session will decide whether to extend a purchase and sales arrangement for a municipal parking lot to the Cushing Village’s development team.

The long-troubled residential/retail/parking project headed by developer, Chris Starr’s Smith Legacy Partners, has yet to show any progress towards building the 115 units of housing, 38,000 sq.-ft. of stores and approximately 200 parking spaces since the town approved a special permit and a design and site plan review for the $80 million development on July 27, 2013, 969 days ago.

With no indication that Starr has been able to put together a fairly standard financial package by meeting minimal project requirements from lenders since the selectmen last met two weeks ago, it’s likely the two boards will follow the sentiment of the boards expressed over the past six weeks the status quo is unlikely to change.

“It would be very difficult for us to approve an extension … unless the developer comes back with … something that gives us absolute security that [the] project will proceed and go forward and not lag for years and months,” said Selectmen Chair Sami Baghdady at the board’s Monday, March 14 meeting.

While Starr did announce early in February a new mid-level “mezzanine” lender and that he was close to securing in a large, national retail tenant to fill the majority of the store footage, no announcements have been forthcoming from the Bedford-based company in the last month, as he has cancelled his latest appearances before the boards this month.                                                                                                                              

Representatives of the two boards with direct involvement with the project – the Selectmen must approve a sale of town-owned property and the Planning Board with oversight over design and massing – met a month earlier along with the Town Counsel, George Hall, Town Treasurer Floyd Carman and Town Administrator David Kale, to prepare a shared game plan on the fast approaching late March deadline when the two-year purchase and sale agreement with Starr for the parking lot adjacent Trapelo Road and Starbuck expires.

While no announcement was made at the time, subsequent statements by both boards expressed a lack of patience with three months of missed “drop dead” milestones the development team said they would meet, which included buying the lot, demolishing the site and the beginning of laying foundations, all promised by mid-January. 

The small lot is the lynchpin parcel for the entire project as it will be the easiest to construct and open. The two parcels Starr currently owns – the former CVS building at Common and Belmont and the building at the intersection of Trapelo and Common that once housed the S.S. Pierce store – will require a considerable amount of excavation for the underground parking facilities and a costly buildout.

While Starr could likely come up with the long-agreed to $850,000 asking price for the lot, it doesn’t appear he was able to demonstrate to the selectmen he had construction financing in place which the board has demanded as part of the public parking deal. 

In the past two years, the selectmen have required Starr to pay what was first a $20,000 and now is a $30,000 “fine” for each month he could not close on the lot. The penalty has reached more than $650,000 (although half of the amount will go back to Starr as part of the closing cost).

Baghdady said if Starr does come to the board with a positive development such as a check for $850,000, it is likely the boards will no extend purchase and sale agreement and retain ownership of the parcel.

Then it would be back to square one for the town in redeveloping the parcels since it is unlikely the expired P&S agreement could be revived for a new development team unless the town issues a new request for proposal for the municipal parking lot. That would trigger a reopening of the Special Permit process which took 18 months to craft for Smith Legacy.

Starr will still hold the rights to the two parcels with an option on the parking lot but if was unable to find financing for a simple commercial deal, it’s highly unlikely he could convince a bank or financing company to invest in a smaller building with less of an upside. 

But Starr does hold the development rights to the sites, which likely has value to a developer wishing to skip the grind of shaping a new Special Permit and just build. 

If there is a developer waiting in the wings, the next week in Town Hall could be a whirl of agreements, payments and meetings as the town and a “white knight” secure a new deal before the P&S expires.

Selectmen QW: Belmont’s OPEB Policy and Issuing Pension Obligation Bonds

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Photo:

Through the efforts of Selectman Williams, the town is moving forward with a study of recommendations towards addressing the town’s long-term OPEB (Other post-employment benefits) but many – town officials and the majority of the Board – are reluctant to follow Williams’ call for the issuance of up to $60 million in Pension Obligation Bonds (POBs). Question: Where do you stand on the town’s OPEB policy and would you currently consider the town issuing POBs?

Mark Paolillo 

Pensions and Other Post-Employment Benefits (OPEB) are two different issues and must be viewed separately.  

State law establishes Belmont’s retiree pension obligations.  Belmont’s Retirement Board is authorized to determine how to fund our retirement obligations and to manage investments designed to fund them.  In 2015, the Warrant Committee issued a Pension report analyzing different options for funding our pension liability; the Selectmen have and should continue to discuss this with the Retirement Board.  

  • Extending the amortization period from 2027 to some later date could reduce the contribution pension impact on annual budgets.  
  • Pension Obligation Bonds (POBs) are a bet that pension investments will exceed the cost of borrowing.  Moody’s has indicated that POBs typically create additional risks, including budgetary and default risk.  GFOA recommends that local governments not issue POBs.  I would not subject taxpayers’ money to risks of this type.  

OPEB consists primarily of retiree health care, a benefit provided to Belmont’s retirees.  To date, payments for retiree health care have been manageable because we adopted healthcare reforms allowing us to effectively control health insurance costs — under one percent growth annually for the last three years.  

Working with the Treasurer, the Selectmen adopted an OPEB Funding policy that Moody’s reviewed favorably. It created an OPEB Irrevocable Trust Fund and ensured that a fixed percentage of free cash is deposited in that Fund every year.  

In 2015, the Selectmen established the OPEB Funding Advisory Group.  On Feb. 7, it reported that the actuarial estimate of Belmont’s unfunded liability is likely overstated.  The group was asked to: (1) continue its work and provide us with a more accurate estimate of our unfunded liability based on key cost data; and (2) analyze options to control this liability. This additional information will help the Selectmen to determine the most prudent course of action. 

Alexandra Ruban

Selectman Williams deserves credit for encouraging the town’s government to take a hard look at our unfunded pension obligations. These issues, if left unaddressed, will only get worse. I commend him for insisting that Belmont’s leadership investigate creative solutions for addressing our pension and other postemployment benefits (OPEB) obligations. 

However, Belmont is hardly alone; 254 of the 351 municipalities in Massachusetts have more than $26 billion in unfunded health care liabilities for public retirees and billions more in unfunded pension liabilities. Nineteen cities and towns have unfunded pension liabilities that top $300 million. Belmont’s roughly $59 million in unfunded pensions and $60 million in OPEB liabilities ($4,825 per capita) is in the middle of the pack.  

Mr. Williams’s support for a bond is one solution, but there are other options that would not require a substantial increase in property taxes. 

A decade ago Belmont’s Board of Selectmen adopted an accelerated schedule for meeting the town’s unpaid pension liabilities. We will be paid up ten years earlier than the state requires – with no clear benefit. These payments have been growing slowly but are now set to balloon, rising at a compounded rate of 7 percent annually until 2027. By simply amortizing our payments over the full period permitted by the state and paying off our pension obligations before 2040, the town would substantially decrease the strain on its budget at no cost to taxpayers or risk to its AAA credit rating. 

The town has started examining alternative options to preserve promised benefits while reducing the cost to taxpayers – one example, by working with its employee unions. Should bonding emerge as the most prudent course forward, I’m confident that the Board and the voters will pursue that course, but we should look at all available options before committing ourselves to any course of action. 

Newcomer Ruban To Challenge Incumbent Paolillo for Selectman

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Photo: Alexandra Ruban submitting nomination papers on Tuesday, Feb. 16.

A relative newcomer will be challenging a lifelong resident for the open selectman seat at the Belmont Town Election in April.

Claflin Street’s Alexandra Ruban submitted more than 100 signatures with Town Clerk Ellen Cushman on Tuesday, Feb. 16, setting up a race with two-term incumbent Mark Paolillo from Pilgrim Road. 

In a press release submitted by her campaign team, Ruban said there is a lack of transparency and consistency on important decisions made by town government and the current board made up of Paolillo, Jim Williams and Chairman Sami Baghdady.

“After observing the decisions made by our Board of Selectmen in recent years, I am concerned that there is a lack of transparency and accountability in the office that is challenging the Town’s goals and financial viability,” said Ruban, who moved with her husband and two children to Belmont from Somerville in 2013. 

“Rather than just complain, I want to use my experience to do something about it, namely: run for Town Selectman,” Ruban said in the press release.

Leading Ruban’s team is campaign chair and communications manager Erin Lubien, who was communications director for Selectman Jim Williams’ election campaign last year. Ruban’s campaign treasurer is Vera Iskandarian of Waverley Street.

“I look forward to meeting with my constituents and representing the concerns of many in the upcoming election season,” Ruban said, noting that elected, she would be only the fourth woman to serve as a Selectman since the town was incorporated in 1859.

The owner of a consulting firm that helps small businesses grow and optimize their performance, Ruban will be holding a community “meet and greet” on Feb. 28.