[MassHistPres] Lease or sale of town owned building

[Brett Pelletier]

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
> _______________________________________________
> MassHistPres mailing list
> MassHistPres at cs.umb.edu
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