Burts Pit Road Limited Development summary-WF2.27.2020
TO: Mayor David J. Narkewicz
FROM: Wayne Feiden, FAICP, Director of Planning & Sustainability
RE: Burts Pit Road Limited Development
DATE: February 27, 2020
You asked me to address Steve Callahan’s questions to City Councilors concerning the Burts Pit Road
Limited Development.
Mixed‐Income Limited Development—Key Milestones
Activity Notes
City Council order for limited development (9/1/16) Council increases affordable housing target
City set minimum of three affordable units Three lot minimum but, based on Council input,
more than three is target
Special Permit and Site Plan approval Zoning approvals granted
City purchases eight building lots (6/23/17) Book 12660, Page 169
Four Request for Proposals rounds (2017‐19) For affordable, mixed‐income, and market rate
Donation of 3 lots to Habitat for Humanity for
affordable housing (pending)
RFP set requirement for affordable housing and
using architect from City’s design competition
Sale of 4 lots to Emerson Way, LLC for mixed‐
income housing (pending)
RFP set bidding with minimum price
Sale of 1 lot to private party for house (pending) RFP set bidding with minimum price
$34,000 total net cost to CPA for land purchase Extremely low per for affordable housing and
other public benefits
Mixed‐Income Limited Development—Financial Summary for Land Transactions
Activity Expense Income
8 lots purchased by City $99,600
Donate 3 lots to Habitat to Humanity
for affordable housing
See below for covering Habitat’s
architectural fees
$1
Sale of 4 lots to Emerson Way, LLC $45,000 for Habitat’s architectural fees $110,000
Sale of 1 lot to private party $100,000‐‐adjacent open space owned by
purchaser
$100,000
TOTAL $244,600 $210,000
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Concerns:
1. Availability of files—all contracts and files related to this project are available upon request for
public inspection at the Office of Planning & Sustainability. Most of them are available on‐line in our
“public file cabinet.”
2. Valuation of lots—
a. All of the Request for Proposals set a minimum bid price, were advertised in the Daily
Hampshire Gazette and the Central Register, and multiple bids were solicited. A competitive
bidding process requires proper advertising, which the city went beyond with outreach, and an
open bid process. It does not require multiple bids.
b. Lot prices are reduced by requirements for affordable housing (both Habitat and Emerson Way),
by site conditions that make stormwater solutions expensive, by requirements for shared
driveways to reduce traffic and aesthetic impacts, and the permit and phasing uncertainties
(because the city transferred much of the permit costs to buyers)
c. One bidder ended up withdrawing their bid and suing the city for a return of their deposit,
indicating that the market valued the lots at a lower price than that initial bid. Lots are worth
what a willing buyer will pay to a willing seller.
3. Cost to the City—the $34,600 plus soft cost net cost to Community Preservation Act fund for:
a. Three Habitat for Humanity affordable lots
b. Six affordable units as part of a seven unit mixed income property
c. One mid‐market lot (the kind not being created by the market)
d. A design competition that helped promote Just Big Enough/Green Housing for All and good
design of the Habitat units
e. An additional open space over and above the initial 110 acre purchase.
4. Soft Costs transferred to purchaser—the city signed a contract, going through the usual contract
review process, whereby the purchaser of four building lots directly pays to Habitat for Humanity to
cover the architectural fees. These costs are related to the project (ensuring good design and that
the project respects the neighborhood) are similar, albeit larger, than typically closing cost
deductions for outstanding taxes, fees and other costs.
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