[MassHistPres] Lease or sale of town owned building

[Brett Pelletier]

Good point.  Thank you for clarifying that, Dennis.

Brett Pelletier, CRE, MRA, FRICS
Chief Operating Officer


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: Dennis De Witt [mailto:abtdewitt at rcn.com]
Sent: Tuesday, November 17, 2020 3:49 PM
To: MHC MHC listserve <masshistpres at cs.umb.edu>
Cc: sally milne <urbanosally at gmail.com>; Brett Pelletier
<bpelletier at kirkco.com>
Subject: Re: [MassHistPres] Lease or sale of town owned building

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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