Good point Allen! That is darn good return for the town. 2/3 town meeting majority vote certainly didn't hurt in that negotiation!
Kind Regards, Scott Clary 617-968-5769 Sent from a mobile device - please excuse typos and errors On Thu, Nov 2, 2023, 1:51 PM Pastor Allen <pastorall...@gmail.com> wrote: > One must remember that if a development has 25% or greater apartments that > are "Affordable", then the entire community counts towards the SHI. So, by > moving Oriole Landing from 9 (15%) to 15 (25%) affordable units, we > increased the official SHI in Lincoln by 60 units - at a cost of roughly > $13,333 per unit. That's quite a good return on that investment. > > -Allen Vander Meulen > > Sent from my iPhone > > On Nov 2, 2023, at 11:04, Margaret Olson <s...@margaretolson.com> wrote: > > > Argh! Not enough coffee! At Oriole Landing 6 additional units is correct > and each additional unit for a qualified person to live in cost $166K not > 100K. > > > On Thu, Nov 2, 2023 at 10:17 AM ٍSarah Postlethwait <sa...@bayhas.com> > wrote: > >> Your math is flawed… >> >> The town already required 15% affordable housing units, or 9 total units >> at Oriole landing. (See photo below from Oriole Landing’s analysis) >> >> This means that the town paid $1 million dollars to secure *6 additional >> units- not 10, as you stated.* >> >> *Thats $166,667 a unit*. >> >> I understand that the town has worked hard to maintain well above 10% >> affordable housing- which is why I don’t understand the desire to rezone >> every developable acre of south Lincoln at 10% affordability. >> Even with an additional $2 million in our Affordable Housing Trust to >> bribe developers, that will only secure 12 additional units if Oriole >> Landing is an indicator of what Civico is expecting per unit. >> >> The RLF is proposing up to 100 additional units. >> 10 are required to be affordable under HCA >> An additional 5 units (15% total) will cost $833k >> And additional 15 units (25% total) will cost $2.5 million >> >> And that’s assuming they haven’t raised their affordable housing bribe >> expectations since 2018. >> >> *This is why the HCA rezoning should be done in the least impactful way >> possible, and rezoning things like the mall and other likely to be >> redeveloped areas should be done through the traditional process that >> already requires 15% affordable housing.* That will save almost a >> million dollars from the Affordable Housing trust per every 100 units >> built. >> >> <image_123650291.JPG> >> >> Sarah Postlethwait >> >> >> On Thu, Nov 2, 2023 at 9:49 AM Margaret Olson <s...@margaretolson.com> >> wrote: >> >>> Here's a bit more background on the Oriole Landing affordable units: >>> >>> There are 15 affordable units out of a total of 60 units, or 25% >>> With 25% affordable, all 60 units count towards our SHI (the state's >>> affordable housing index) >>> Our zoning requires 15% affordable >>> >>> At a cost of $1 million the town obtained 10 additional affordable units >>> for qualifying people to live in at a cost of 100K each, with 60 >>> affordable units counting towards our SHI at a cost of $16K per unit. At >>> the time this was negotiated the town was paying an average of $250K for >>> each affordable unit for qualifying people to live in. >>> >>> By keeping our SHI above 10% we are not subject to "40B" developments: >>> 40B is the state law that allows developers to ignore town zoning density >>> restrictions for multi-family buildings. The town has historically worked >>> very hard to maintain an SHI above 10%. We are currently over 12%. >>> >>> Margaret >>> >>> On Thu, Nov 2, 2023 at 9:27 AM Benjamin Shiller <benshil...@gmail.com> >>> wrote: >>> >>>> After posting, additional data was very quickly brought to my >>>> attention. Apparently, even without a 1 million dollar forgivable loan, >>>> the rate of return on the investment was anticipated to be 14%. That seems >>>> very high, and was the expected return on investment at that time. Yes, >>>> home prices went up, increasing their profits. But that does not change the >>>> fact that it would certainly appear that the $1 million forgiveable loan >>>> seems unnecessary. I now join the call for more transparency and citizen >>>> involvement in future negotiations. >>>> >>>> On Thu, Nov 2, 2023 at 8:54 AM Benjamin Shiller <benshil...@gmail.com> >>>> wrote: >>>> >>>>> The stated numbers in earlier messages in this thread suggest that >>>>> Civico earned about $8-$12 million in profits from Oriole Landing. If >>>>> true, it still does not necessarily imply that we were ripped off as a >>>>> town. It might have been that we needed to provide the $1 million >>>>> forgivable loan to make it such that the *expected* profits at that time >>>>> were high enough to build. First, the profits need to be as high as >>>>> the developer could have earned elsewhere. Second, there’s an ex-ante >>>>> ex-post problem. After building, real estate prices in Massachusetts >>>>> increased dramatically, implying that the profits that they ultimately >>>>> earned may be much higher than the profits that would have been reasonably >>>>> anticipated. All that said, it’s still good basic economic practice to >>>>> get >>>>> many developers to make competing bids. >>>>> >>>>> >>>>> >*From Civico’s own documentation (link below), they estimated the >>>>>> total *development cost per condo was $351K (including acquisition >>>>>> costs). This means that it would have cost them ~$21M to complete the >>>>>> 60-unit development. Considering the $1M loan and the sale price of $32M, >>>>>> Civico made ~$12M in only 4 years on a $20M investment, in addition to >>>>>> any >>>>>> rents collected. 60% return on assets seems pretty profitable to me. This >>>>>> doesn’t even include the benefit they would have gotten from any >>>>>> leverage. >>>>>> I am not comparing the project itself to the Winchester project. What >>>>>> I am pointing to is that Winchester was able to negotiate a deal with >>>>>> Civico that includes a $1.5M payment from Civico to the town, as well as >>>>>> other concessions like more affordable units and extra parking. >>>>>> Winchester >>>>>> was able to negotiate this because the project had to go through town >>>>>> meeting. In fact, the first time, it failed the vote, and only passed on >>>>>> the second round after these concessions were made. >>>>>> I would like to repeat what I said in my first post: I am not against >>>>>> redeveloping the mall. What I do continue to find troubling is that we >>>>>> are >>>>>> being pushed into rezoning the mall through HCA, because a developer said >>>>>> that they would not go through town meeting. >>>>> >>>>> Rezoning the mall through HCA would eliminate our ability to vote on >>>>>> the project and extract concessions from developers. Additionally, we >>>>>> have >>>>>> been told we would apply for public grants to benefit private developers. >>>>>> Let’s learn from the experience of Winchester and not eliminate the >>>>>> strength of our town meeting process. >>>>> >>>>> >>>>> >>>>> Ben >>>>> >>>> -- >>>> The LincolnTalk mailing list. >>>> To post, send mail to Lincoln@lincolntalk.org. >>>> Browse the archives at >>>> https://pairlist9.pair.net/mailman/private/lincoln/. >>>> Change your subscription settings at >>>> https://pairlist9.pair.net/mailman/listinfo/lincoln. >>>> >>>> -- >>> The LincolnTalk mailing list. >>> To post, send mail to Lincoln@lincolntalk.org. >>> Browse the archives at >>> https://pairlist9.pair.net/mailman/private/lincoln/. >>> Change your subscription settings at >>> https://pairlist9.pair.net/mailman/listinfo/lincoln. >>> >>> -- > The LincolnTalk mailing list. > To post, send mail to Lincoln@lincolntalk.org. > Browse the archives at https://pairlist9.pair.net/mailman/private/lincoln/ > . > Change your subscription settings at > https://pairlist9.pair.net/mailman/listinfo/lincoln. > > -- > The LincolnTalk mailing list. > To post, send mail to Lincoln@lincolntalk.org. > Browse the archives at https://pairlist9.pair.net/mailman/private/lincoln/ > . > Change your subscription settings at > https://pairlist9.pair.net/mailman/listinfo/lincoln. > >
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