The State Hospital Advisory Committee (SHAC) met 12-5-2013, and Jim Rohnstock authored excellent meeting notes of what transpired.

In my mind the big unresolved issues are –

• TIMING:  The timing of the special town meeting (STM) to take up whether the town will want o pursue the purchase of the Medfield State Hospital site.  All agree that consideration should happen before the Patrick administration leaves office in January 2015, and if that is to happen the required legislation will need happen before the legislature dissolves for elections next year, which may be during the summer.  The timing of the legislative calendar will therefore control the timing of our municipal consideration of and voting on the purchase.  The town will just have to back out the timing as to when the special town meeting (STM) will have to occur to meet the legislature’s schedule.  Inquiries will be made to determine the legislature’s timing, and then we can set our schedule.  My recollection the last time we dealt with the legislature over getting legislation for the Medfield State Hospital was that the legislature stopped meeting for the year in July, but we will learn more soon.
• ULTIMATE USES:  Given the need to schedule an early special town meeting (STM) to consider the Medfield State Hospital land purchase, the town will probably not have sufficient time to engage in a completed discussion of what ultimate uses it wants to make of the site.  That we require us to decide whether we as a town want to buy the site, before we have a concrete plan in hand as to what we will do with the land after any purchase.  I hope that by the special town meeting (STM) on the purchase, that we will at least have general consensus and agreement on the broad concepts of what the town will do with the land, such as a consensus that the town will seek to partner with developers to build certain sorts of things on the land versus leaving the site as open space.  Even if there is building and development at the site, there will still be lots of open space left for residents to use, just as it is now available to us.
• DEMOLITION:  Dealing with the decrepit buildings at the site will be a major issue.  I have come to be convinced that it is unlikely that the vast majority of the buildings can be saved for new uses given the exceedingly high cost to do so.  One can rehab any structure, but the question is at what price, and the dilapidated condition of most of the Medfield State Hospital buildings combined with the requirements of the current building codes means that any reuse of those dilapidated buildings will cost lots and lots of money, monies that the town would then have to be willing to pay.  While I personally like a lot the look of the buildings and the their placement on the site, and while I started from a position of wanting to save the buildings, I have since learned the high price to rehab such buildings, and I am now not willing to pay the lots of extra costs needed to salvage them.  Economic realities have made me a reluctant convert to the need to demolish most of the buildings at the Medfield State Hospital site.   There was some discussion of demolition costs at the meeting last week, with the following information imparted:  (1) someone related an expert opining to him that it would cost $5.5 m. to demolish all the builds (without accounting for the abatement costs), (2) experts related general demolition costs of $10-15 per sq. ft. plus $10 per sq. ft. for the abatement, (3) Foxborough State Hospital’s demolition cost $15 per sq. ft. (not at prevailing wage), and (4) DCAMM stated that on average, paying prevailing wages, that it pays $16 per sq. ft., all in (including abatement), to demolish buildings.  There are approximately 600,000 sq. ft. of buildings at the Medfield State Hospital site, so in a worst case scenario, using the DCAMM $16 per sq. ft. number, it would cost the town about $9-10 m. to demolish all the MSH buildings if the town did the demolition.  Everyone seems to agree that at the very least that the Lee Chapel building should be saved.  I am hopeful that the R building and the other building in front of the R building that were most recently rehabbed can be saved as well.  If the town decided on some development at the site, the logical thing would be to have the developer do the demolition, as they would not have to pay prevailing wages, and hence the cost would be substantially less (perhaps on the order of one-third to half less).
• HISTORIC BUILDINGS:  The site is listed on the National Register of historic properties.  There do not yet appear to be precise answers as to just what the Massachusetts Historic Commission (MHC) will and will not allow with respect to demolition, but we do know that they recently reversed themselves to allow the requested demolition of the Odyssey House to proceed.  The MHC will also probably look to see what the Medfield Historic Commission says it wants done at the site in turns of saving versus demolishing the buildings.  To date, members of our own Historic Commission have opined towards saving as many of the buildings as possible.    The SHAC survey of the condition of four representative building will hopefully give us good data on whether the buildings can be saved and if so at what cost.

Residents should weigh in soon with their opinions about the Medfield State Hospital land on the survey SHAC has posted at its website, as the survey will probably be closed before the end of the year.  Find the survey and the SHAC’s other information at the committee’s website www.MSHvision.net.

DCAMM’s term sheet for the Medfield State Hospital property refers to Parcels A and B that it is selling to the Town of Medfield.  I have uploaded the plan so people can see the land that is in play.  20130822-DCAMM-plan

Basically what has been offered to the town is 94 acres of the core campus where the buildings are located today and the 40 acres across the street where the Odyssey House and the sledding hill are located.

Only twelve (12) acres of the 40 acres across Hospital Road can be built upon, due to limitations n taking agricultural soils out of existence.  The 94 acres will be reduced by the six acres coming to the town by means of the separate and now pending water tower legislation, so in reality only 88 acres of the main MSH campus are to be purchased.

The Board of Selectmen also learned last night that the Massachusetts Historic Commission has recently reversed itself and is willing to allow the Odyssey House demolition to proceed.  However, now that the other two demolitions are already completed at the MSH site, Odyssey House will (1) have to wait until spring to be demolished, and (2) now probably cost the state more to demolish than if it had just been done while the demolition contractor was on site.

This is a list of the parcels shown on the attached plan and the intended result for each –

• Parcels A-1 and A-2 are slated to be transferred to Dept. of Conservation and Recreation (DCR)
• Parcel C is the long thin land located between the railroad tracks and Rte 27, located on the plan below where it is labeled, and it is also to go to DCR
• Parcel D is the gun range, which, I believe, goes to the state’s Public Safety people
• Parcel E (the former MSH Cemetery) goes to DMH
• Parcel F is already an active group home and will remain as such
• Parcel G, I believe, is the former sewer pump station, and I do not know who gets that  – ???

The Board of Selectmen accepted and signed DCAMM’s term sheet (copy attached below) last night to proceed with the consideration of the town’s purchase of the Medfield State Hospital site.  This acceptance allows the residents to make the decision whether they want the town to buy the MSH site, which will come at a special town meeting (STM) to be held within the next few months.  The next step is for the negotiation and signing of the purchase and sale agreement.

For me, the purchase of the MSH site is worth pursuing because it allows the town to control the ultimate use of the site.  The town will also have an opportunity to make some profit from any development.

This is the DCAMM term sheet that the selectmen accepted last night –
November 7, 2013

Mr. Stephen Nolan, Chair Medfield Real Estate Committee
Mr. Michael Sullivan, Town Administrator
Medfield Town Hall
459 Main Street
Medfield, MA 02052

Re: Town of Medfield purchase of a portion of the former Medfield State Hospital
Hospital Rd., Medfield, MA

Dear Mr. Nolan and Mr. Sullivan:

The Commonwealth of Massachusetts, Division of Capital Asset Management and Maintenance (“Seller”) proposes to sell a 100% fee simple interest in the improved real property more fully described in Paragraph 1 below (the “Property”) on an “as is” basis to the Town of Medfield (“Buyer”). However, prior to closing, the Commonwealth will complete the remediation and demolition work on the “Property” as defined in the “Settlement and Cooperation Agreement” between the Division of Capital Asset Management and Maintenance and the Town of Medfield dated July 26, 2013 .

1. PROPERTY

The Property consists of the unrestricted fee simple interest in a portion of the former Medfield State Hospital located on Hospital Road, Medfield, MA and includes all easements, licenses, permits, agreements, rights-of-way and appurtenances to the land and improvements. The Property, listed on the National and State Registers of Historic Places, consists of approximately 134 +/-  acres (Parcels A and B on attached site plan) improved with approximately 600,000 +/- SF of buildings. The final boundaries will be determined through a survey completed by the Division of Capital Asset Management and Maintenance in consultation with the Town of Medfield.

2. PURCHASE PRICE

Three Million One Hundred Thousand which includes a 3% one-time Commonwealth finance fee (calculated as 3% of final purchase price) due at the time of closing or amortized over a 10 year period. This price assumes conveyance of the Property to the Town no later than December 2014. The amortized payments will be made to the Commonwealth through a deduct mechanism to the Town of Medfield’s “cherry sheet aid” in a method to be determined by the Secretary of Administration and Finance through the Department of Revenue.

Seller would also be entitled to a percentage of any net resale/ground lease proceeds from the sale of the total Property or any portion thereof. Seller’s percentage of net resale proceeds shall be determined after Buyer receives a 50% share plus any additional percentages Buyer may earn by achieving certain milestones set forth herein as “Redevelopment Incentives”

3. REDEVELOPMENT INCENTIVES

Buyer shall be entitled to a base percentage of 50% of any net resale/ground lease proceeds. As an incentive, the Buyer can earn up to an additional 20% of the net resale/ground lease proceeds according to the following breakdown listed below:

A. Additional 10% if the Buyer resells/ground leases the Property within 1 – 2 years of original Closing Date.

B. Additional 5% if the Buyer resells/ground leases the Property within 3 – 5 years of the Closing Date.

C. Additional 2.5 % if the Buyer completes a comprehensive market study to inform land use decisions including zoning for the site.
D. Additional 2.5% if the Buyer adopts by right zoning (to be informed by market study) on the site a portion of which must be for residential housing of at least 4 units per acre for single family units and 8 units per acre for multifamily units.

E. Additional 2.5% if the Buyer adopts 43D of the Acts of2006, Section 11 of Chapter 205 entitled “Local Expedited Permitting” which provides for expedited permitting (180 day) on a redevelopment site.

F. Additional 2.5% ifthe Buyer adheres to the Commonwealth’s sustainable development principles (found at http://mass.gov/envir/smart_growth_toolkit/pdf/patrick-principles.pdf) in the planning of future development of the site.

4. TITLE AND CONVEYANCE

Subsequent to agreement on sales purchase terms, Town Meeting approval and the enactment of authorizing legislation, Seller will convey title via a release deed.

5. DUE DILIGENCE

Seller has provided Buyer with comprehensive environmental analysis and reports as a result of the Mass Contingency Plan for the site. Buyer is entitled to any site related documents on file with the Division of Capital Asset Management and Maintenance. Buyer may conduct additional due diligence at buyer’s expense prior to Town Meeting approval of purchase of Property.

6. TIMING

Buyer and Seller shall use reasonable efforts to close the transaction within sixty (60) days after the completion of the procedures established by enacted authorizing legislation and in any event no later than December 2014.

7. NATURE OF AGREEMENT

THE PURPOSE OF THIS DOCUMENT IS TO MEMORIALIZE CERTAIN BUSINESS POINTS. THE PARTIES MUTUALLY ACKNOWLEDGE THAT THEIR AGREEMENT IS QUALIFIED AND THAT THEY, THEREFORE, CONTEMPLATE THE DRAFTING AND EXECUTION OF A MORE DETAILED AGREEMENT. THEY INTEND TO BE BOUND ONLY BY THE EXECUTION OF SUCH AN AGREEMENT AND NOT BY THIS PRELIMINARY DOCUMENT.

Completion of this transaction is subject to the completion of the procedures and documents established by authorizing legislation.
If Buyer concurs that the terms and conditions set forth herein are satisfactory, please execute and date this letter in the space provide below.

We look forward to your acceptance of this offer to sell and the opportunity to work together on this transaction.

Sincerely,
The Commonwealth of Massachusetts:
Signature: /Carole J. Cornelison/
Title: Commissioner, Division of Capital Asset Management and Maintenance
Date: 11/7/2013

TOWN OF MEDFIELD ACCEPTANCE:
Signature: _____________ _
Title: Board of Selectrnen, Town of Medfield
Date: _______ _