[MassHistPres] Question re: ground lease

[twm3 at metcalfe-architecture.com]

There is no way it should cost $1600 per sq foot. 

In my now 52 yeas of registered architectural practice the rate of increase in construction costs has been fairly steady and only with the covid shut downs to manufacturing lowering supply with rebounding demand did prices shoot up a lot more than normal yet they are now receding as supply increases and a bursting bubble softens demand. 

Renovation of existing buildings can be much less cost than new but often is equal to or slightly more than new construction if very careful detailing is chosen.   

The design to make the Russel school a town hall while destroying two existing stairs to then create two new ones and then add an addition for an elevator stair is much more cost than it would be to develop apartments keeping historic stairs that meet code while it only requires a first floor wheelchair ramp or porch lift for one or two accessible units. This would be less cost than the design for a town hall with apartments that meet a high demand market for rental housing. 

The town can keep the land and the developer pays tax on the building only while leasing the land. The pro forma would likely require many years of ownership and also that they can resell their increased building value when ever. If the town takes back their lease by eminent domain they would have to pay market value of the building as if it were with land thus protecting and encouraging their investment.

$1600 / sq ft is quite honestly unbelievable.

Tris Metcalfe AIA
Northampton 

> Where did that cost number come from?  That’s about $1600 per square foot, which does not sound right.
>  
> Richard Smith
> Swampscott Historical Commission
>  
>  
>> On Jan 12, 2023, at 5:36 PM, Garrett Laws via MassHistPres <masshistpres at cs.umb.edu> wrote:
>> 
>> $16M is a massive amount of money. What’s that cost based on and always remember that not ALL things are required to be done to “bring it up to code”.
>> 
>> On Thursday, January 12, 2023, Courtney Meyer via MassHistPres <masshistpres at cs.umb.edu <mailto:masshistpres at cs.umb.edu>> wrote:
>> Hi all,
>> 
>> I am the chair of the Russell School committee in Hadley, MA.  We are trying to save our beautiful 1894 Italianate Russell School building set in town center. (Photo attached.) The approximate cost to rehab and bring it up to code is in the $16 million range, which of course is prohibitive to the town.  In order to save the structure, we are considering the feasibility of selling it to a private investor with a preservation restriction in place, but the town will want to continue to own the land.  We are seeking some guidance on examples and stipulations around a ground lease, and/or use of deed provisions that has ownership of land be given back to the town if the building is destroyed and cannot be rebuilt per preservation restriction. Any insight would be appreciated.
>> 
>> Thank you,
>> 
>> Courtney Meyer
>> Russell School Committee Chair
>> Hadley, MA 01035
>> 
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>> Many Thanks,
>> Garrett Laws
>> 
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