Town of Amherst

Board of Selectmen

February 6, 2008
Meeting Minutes at SHS

 

Chairman Bruce Bowler called the meeting to order at 6:06 p.m.  Selectmen present:  Thomas Grella, Reed Panasiti, Brad Galinson and George Infanti.  Also present:  Town Administrator Gary MacGuire and Executive Assistant Sharon Frydlo.

 

Mr. Bowler advised that the Board was meeting to talk about Map 7, Lot 47, the Desmarais property.  As was discussed on Monday night, this purchase had only one option, to go forward and have a closing prior to July 1st since there is no money in next year’s budget.  They were proposing to do it now and to utilize a portion of the Lowe’s money which was $150,000, depending on what bond option they decide on – 5, 10 or 15 years.

 

Mr. Infanti indicated they talked about the additional interest and it didn’t make a lot of sense to go beyond five years.  In his comment the other night, he felt a five year bond was much more realistic.  The difference between a five and ten year bond was approximately $35,000 and a 15 year bond was about $75,000 and be about $60,000 a year plus interest. 

 

Mr. Bowler mentioned they were trying to finance a budget this year and right off the bat they have an increase in the budget before they even start the second year’s payment.  Mr. Panasiti asked if Conservation approves this funding, how did they get it back.  Mr. Bowler indicated they wouldn’t.  They will have to recognize it as unanticipated revenue prior to June 30th to cover this.  They can’t take money out of the $5.5 million dollars and give it back to unanticipated revenue.  Mr. MacGuire reminded them that these were approximate numbers and hopefully they will be lower than the projection. 

 

Mr. Galinson remarked that a five year bond vs. a ten year one is either a $70,000 or $40,000 hit.  This was the first of  OSAC’s purchases and for five years this is a small amount.  There was a possibility there will be another $500,000 purchase and they may want to spread it out.  In response to Linda Kaiser’s question, Mr. Bowler explained this did not impact the $5.5 million dollars.  They will end up spending up to $5.5 million dollars plus.  Technically they can’t go beyond this – just the first payment. 

 

ACC Chairman John Harvey told the Board that it is the Commission’s recommendation that the goal should be to pay Mr. Desmarais sooner rather than later because OSAC has had enough difficulties finding a willing seller.  If they fail to pay him soon, it leaves landowners unwilling to sell.  To meet that goal, they agree completely with the Board’s recommendation to pay him out of the Lowe’s fund as discussed. 

 

Mr. Bowler saw both Mr. Infanti’s and Mr. Galinson’s point regarding any purchase between now and the next ten to eleven months.  Mr. Galinson remarked that it was also significantly less than the Lowe’s fund.  Mr. Panasiti asked if something happened next year, could they add on to that bond.  Mr. Infanti advised they would have to have a new bond. 

 

Mr. Galinson added that OSAC deals, in the next several months, will have a big tax impact.  The difference between five and ten years was significant, but between ten and fifteen was only a small difference. 

 

Mr. Infanti moved to purchase the Desmarais property and float a ten year bond with the first payment coming from the Lowe’s open space money, second by Mr. Grella.  Vote:  Unanimous.

 

Mr. Panasiti moved to adjourn the meeting at 6:17 p.m., second by Mr. Grella.  Vote:  Unanimous.

 

Respectfully submitted,

 

 

Sharon L. Frydlo

Executive Assistant