Committee Report - Finance - 8-13-12 — File 193581

August 13, 2012 Finance Committee Page 1 of 3 Printed 8/15/2012 REPORT OF THE FINANCE COMMITTEE Attendee Name Title Status Arrived Maryann M. Heuston Chair Present William A. White Jr. Vice Chair Present John M Connolly Alderman At Large Present Robert C. Trane Ward Seven Alderman Absent Thomas F. Taylor Ward Three Alderman Absent Omar Boukili Administrative Assistant Present Anne Thomas Counsel, OSPCD Present Frank Wright City Solicitor Present Elieen McGedigin Asst. City Solicitor Present Doug Willardson Budget Analyst Present Michael Glavin Exec. Director, OSPCD Present Hayes Morrison Director of Transportation anf Infrastructure Present Dana LeWinter Director of Housing Present David Lutes Environmental Programs Manager Present Ed Bean Finance Director Present Don Briggs Federal Realty Investment Trust Present (ID # 5072) - Requesting approval of a Purchase and Sales Agreement with NStar Electric, for the purchase of NStar-owned street lights.: The earlier questions raised by the committee were answered, i.e., NSTAR will continue to bear the responsibility for maintaining its utility poles and to inspect them every ten years, as mandated under federal and DPU regulations. The replacement costs for a wooden utility pole is $1,600 for a new pole and $500 for a used pole. RESULT: APPROVED (ID # 5817) - Requesting an appropriation of $30,000 from the Capital Projects Stabilization Fund for a Nexxus Study on Inclusionary Housing Linkage and 20B Trust.:

Committee Meeting August 13, 2012 Finance Committee Page 2 of 3 Printed 8/15/2012 Alderman White's motion to eliminate the words "inclusionary housing" from the item was approved. The consultant will perform a comprehensive study and the Board of Aldermen will have the opportunity to vote on any changes to the ordinance. RESULT: APPROVED AS AMENDED (ID # 5819) - Requesting appropriation of $160,000 from the Capital Stabilization Fund for Appraisals and Relocation Services related to planning activities for the revitalization of Union Square.: Ms. Thomas explained that the city is requesting this appropriation to fund the appraisals of the properties that will be acquired as part of the revitalization plan. The committee requested that a map of the properties scheduled for taking be provided and that a PowerPoint presentation be prepared on the taking. RESULT: APPROVED (ID # 5812) - Requesting the appropriation of $25,000 from the Capital Stabilization Fund to fund house doctor services to produce construction documents associated with the in- house design of Kenny Park.: RESULT: APPROVED (ID # 5814) - Requesting an appropriation of $24,000 from the Assembly Square Stabilization Fund for the construction of a new park on Quincy St.: RESULT: APPROVED 193478 - Requesting approval of an Amended Economic Development Proposal for Phase 1 of the I-Cubed funding approved by the Commonwealth.: Ms. Thomas reviewed an Amended Economic Development Proposal (EDP) for Phase 1 of the I- Cubed funding and explained that following the City's approval, the amended EDP will be submitted to the Commonwealth for approval and permanent issuance of $10 million in I-Cubed bonds. A revised Phase 1 of the I-Cubed project, consisting of five commercial components, including Development Blocks 1, 2, 3, 4 and 10 at Assembly Row, is expected to support the permanent bond issuance. In anticipation of the Bond Anticipation Notes converting to permanent financing, the developer has submitted an Amendment to demonstrate that Annual Net New Tax Revenues will support the debt service on the $10 million of I-Cubed bonds. When fully operational in 2014, Development Phase 1 will generate approximately $950,000 in Annual Net New State Tax Revenues and more than $5 million of one-time construction tax revenue for the Commonwealth of Massachusetts. Annual debt service for a 30-year general obligation bond

Committee Meeting August 13, 2012 Finance Committee Page 3 of 3 Printed 8/15/2012 at an assumed interest rate of 5% is estimated at $647,068. Required annual debt service coverage at 1.5x is approximately $970,000. An Independent Consultant Report revising the original Independent Consultant Report, dated July 20, 2009, confirms the ability of the First Phase to anchor the development and support the initial I-Cubed funding. The overall Assembly Row development program that was articulated in the EDP has not changed. Project phasing has changed, and as a consequence, the Developer intends to move forward with the revised First Bond Phase of $10 million. Additional development will be driven by market demand, and further analysis to support the remaining $48 million will be provided in future amendment(s). RESULT: APPROVED (ID # 5841) - Requesting the acceptance of a grant of up to $15,000 from NStar for the Residential Energy Efficiency Program.: RESULT: APPROVED