7/25/2011 ECONOMIC DEV AND INDUSTRIAL COMMITTEE Minutes

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+4 w r T rri From: Patrick Costello [pcostello@lccpiaw.com] Sent: Thursday, July 21, 2011 12:38 PSI To: T rrI Subject: RE: Bob Wa lsh's ERIC questions Terrie: My responses to Bob's questions: Is the FDIC able to advertise for developer Interest in assisted housing prior to a rezoning and conveyance of the land? It would be difficult to "advertise it or solicit proposals for the development of any particular parcel of land without having the requisite control of the parcel vested in the EDIC. No binding commitment to any development scheme could be made by the EDIC without having all parcel title/control and zoning parameters in place. Obviously, if a G.L. c.4013 affordable housing development is contemplated, the scope of zoning regulation applicable to the proposed project becomes much more flexible. Contingencies with respect to control of disposition of the parcel and/or permissible uses under applicable zoning would likely have a chilling effect upon developers who may be interested in the project. Once EDIC obtains control of the parcel, the ability to "rezone" the land would likely be 5 much easier, given the "Public benefit or interest" to be achieved by EDIC disposition of the parcel. I suppose the EDIC could issue a non-binding request for "expressions f interest" to develop particular site just to get a sense of the level of interest, however, no contractual obligations or commitments should be contemplated as a result of such an exercise. Is there precedent for a developer providing a non refundable deposit which the FDIC can use to cover pre development costs F FP's under G.L. c. 30B can be very flexible or 'creative" with respect to the nature and scope of services to be provided or costs to be assumed by prospective developers. The EDIC could tailor an FFP or RFQ toward a particular use of the land, could invite proposals from interested developers to includedeveloper-determined pre-development cost mitigation or alternative approaches to addressing sane, including prepayment of anticipated EDIC expenses in this regard. Any such "prepayments" or "seed funding" would, as a practical ,natter, however, likely be contingent upon some commitment by EDIC to the developer of a contractual or guaranteed right or interest in the project. The "non-refundable deposit's would, in effect be a payment of consideration by the developer for other rights or benefits to be derived from the project. There is ample precedent for private/public partnerships or joint ventures in this regard. As always, any time funds change hands or contractual obligations are assumed by and between a public and private entity, vire would have to assure compliance with applicable procurement and land disposition statutes. I would have to discuss this concept in more detail to offer a more definitive reply. Pat Patrick J. Costello Lou* , Costello, Condon & Pfaff, LLP 1.01 Summer Street Boston, MA 02110 617-439-0305 (fax)617-439-0325