[MassHistPres] Lease or sale of town owned building

[Dennis De Witt]

However, without permission of the legislature a Town may not lease a property for a term of more than 30 years.
See
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleVII/Chapter40/section3

Dennis De Witt
Brookline

> On Nov 17, 2020, at 3:34 PM, Brett Pelletier <bpelletier at kirkco.com> wrote:
> 
> Sally,
> 
> Shorter term leases often work best when the property is generally
> occupiable, rather, doesn't need significant repair and restoration work.
> All the deals I've worked on, the lease was a long-term ground lease that
> allowed the 501C3 tenant to effectively have fee title to the property
> through a 99-year lease, or similar.  A term longer than the depreciable
> life of the asset is a test for various tax credits.
> 
> Towns and cities often think they want a lease arrangement because it allows
> control to remain with the town, but it's rarely a compelling reason.
> They've let the building deteriorate to such a degree that their control
> seems to have the opposite desired impact.  There's 100 ways to structure a
> deal like this so that it saves and improves the building and also provides
> community and municipal benefit.  Certainly, the longer the term or the more
> firm the site control, the easier it is to market to potential end users,
> capital markets sources, and donors.
> 
> I know of more examples of towns failing to properly and effectively dispose
> of historic assets than the other way around.  The system of RFPs and public
> control often get in the way of progress, from a deal structure perspective.
> Feel free to give a ring if you have any specific questions that I can try
> to answer.  I've represented both sides of these deals, and they're all
> unique.
> 
> Good luck!
> 
> Brett Pelletier, CRE, MRA, FRICS
> Chief Operating Officer
> 
> KIRK&COMPANY: Real Estate Counselors
> 31 Milk Street, Suite 820, Boston, MA 02109
> 174 Bellevue Avenue, Suite 311, Newport, RI 02840
> Office: 617.261.7100 | Mobile: 857.409.1079
> bpelletier at kirkco.com
> 
> 
> 
> 
> 
> -----Original Message-----
> From: MassHistPres [mailto:masshistpres-bounces at cs.umb.edu] On Behalf Of
> Dennis De Witt
> Sent: Tuesday, November 17, 2020 2:06 PM
> To: sally milne <urbanosally at gmail.com>
> Cc: MHC MHC listserve <masshistpres at cs.umb.edu>
> Subject: Re: [MassHistPres] Lease or sale of town owned building
> 
> Sally
> 
> They might want to look at three longstanding non-profit lease examples in
> Brookline.
> — The Brookline Music School in the Kennard House on the grounds of the
> Lincoln School.
> — The Motor Museum in the Weld Carriage House in Larz Anderson Park — The
> Brookline Arts Center in a former fire station.
> I suspect the lease situation in each one may be a bit different
> 
> Dennis De Witt
> Brookline
> 
>> On Nov 16, 2020, at 8:19 PM, sally milne <urbanosally at gmail.com> wrote:
>> 
>> Greetings,
>>     I am writing to you from West Harwich and have sought your input many
>> times always receiving great information .
>>   We have a historic schoolhouse that the town owns and has allowed to
>> fall into disrepair for 25 years. Nothing put forward came to fruition and
>> yet the townspeople want it restored and put to use.  The BOS are tossing
>> around a lease or a sale and our group has formed a 501c3 and hope to
>> secure the building.
>>        If you have had success or information regarding this would you
>> share. Part of our group wants to walk away if it’s a lease.
>> 
>> Best to everyone
>> Sally Urbano
>> Individually
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