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INDUSTRIAL PARK and Redevelopment Authority reports and audits~~ ~ PLANNING AND DEVELOPMENT • CITY OF NORTHAMPTON planning • conservation • zoning • housingpartnership • redevelopmenY• northamptonGIS-- - economic development • community development • historic • community preservation • central Uusiness architecture Wayne Feiden, AICP, Director of Planning and Development • WfeidenONorthamptonMA.gov • 413-587-1265 January 15, 2009 John Fitzgerald, Urban Development Coordinator Department of Housing and Community Development 100 Cambridge Street, Suite 300 Boston, MA 02114 State Auditor State House, Room 229 Boston, MA 02133 To whom it may concern: This serves as the Northampton Redevelopment Authority's Calendar Year 2008 Annual Report, as required by Mass. General Laws Chapter 121 B, Section 52. --_ , -With -the Northampton Industrial Park largely developed, the Redevelopment Authority (RDA) has no budget of its own. It relies on city staff and budget for expenditures. There were no receipts to or expenditures by the RDA in 2008. The Northampton Redevelopment Authority did meet several times and eventually voted to revoke Code 303, the Industrial Park Covenants.. As part of this process, they obtained.support of the Industrial Park property owners, the Planning Board, the city's Economic Development, Housing and Land Use committee, and City•Council. DHCD.approved the plan change and the final revocation of Code 303, the Industrial Park covenants, was recorded at the Registry of Deeds. The .Redevelopment Authority took no other actions this year. Sincerely; Wayne Feiden, AICP . Director of Planning and Development Cc: Mayor Mary Clare Higgins Redevelopment Authority Teri Anderson, Economic Development Coordinator City Hall • 210 Main Street, Room 11 • Northampton, MA 01060 • www.NorthamptonMa.gov • Fax 413-587-12(14 original printed on recycled paper ~•~ ~ f•~r~ PLANN1~~tG AND DEVELOPMENT • CITY OF NORTHAMPTON __ planning • conservation • zoning • housing partnership • redevelopment • northampton GIS economic development • community development • historic • community preservation • central business architecture Wayne Feiden, AICP, Director of Planning and Development • Wfeiden®NorthamptonMA.gov • 413-587-1265 January 10, 2008 John Fitzgerald Urban Development Coordinator Department of Housing and Community Development 100 Cambridge Street, Suite 300 Boston, MA 02114 State Auditor State House, Room 229 Boston, MA 02133 RE: Northampton Redevelopment Authority Calendar 2007 Annual Report To whom it may concern: This serves as the Northampton Redevelopment Authority's Calendar Year 2007 Annual Report, as required by Mass. General Laws Chapter 121 B, Section 52. With the Northampton Industrial Park largely developed, the Redevelopment Authority (RDA) has no budget of its own. It relies on city staff and budget for expenditures. There were no receipts to or expenditures by the Northampton Industrial Authority in 2007 and they held no meetings. As such, there were no activities to report for 2007. Due to changes in the Industrial Park covenants a few years ago, those covenants are rarely stricter than Northampton Zoning, and the RDA rarely gets involved in specific project review. Sincerely, ~r ~~~ ~,/~ Wayne Feiden, AICP Director of Planning and Development Cc: Mayor Mary Clare Higgins Redevelopment Authority Teri Anderson, Economic Development Coordinator City Hall • 210 Main Street, Room 11 • Northampton, MA 01060 • www.NorthamptonMa.gov • Fax 413-587-1264 original printed on recycled paper ~~ _i l~ ..PLANNING AND DEVELOPMENT • .CITY OF NORTHAMPTON Citv~ xall • 21 o Main Street, Room 11 • Northampton, MA o 1060-3198 • X413) 5 87-I s6G • Fax: 5 87-126q. Wav~ne Feiden, Director www.NorthamptonMa.gov January 23, 2007 John Fitzgerald, Urban Development Representative Department of Housing and Community Development One Congress Street, 10th Floor , ~ ~t__. '' Boston, MA 02114 ~ i~= = ~ ~~~-~' `•~~ State Auditor State House, Room 229 Boston, MA 02133 RE: Northampton Redevelopment Authority Calendar 2006 Annual Report ~To whom it may concern: This serves as the Northampton Redevelopment Authority's Calendar Year-2006 Annual Report, as required by Mass. General Laws Chapter 121 B, Section 52. With the Northampton Industrial Park largely developed, the Redevelopment Authority has no budget of its own. It relies on city staff and budget for expenditures. There were no receipts to or expenditures by the Northampton Industrial Authority in 2006, so the report is limited to related programmatic activities of the Redevelopment Authority and the city. The Redevelopment Authority had one meeting in 2006. They discussed future redevelopment needs within the city which might need urban renewal plans and future Redevelopment Authority involvement. The current comprehensive planning process for the City, Sustainable Northampton, may include discussion of these redevelopment needs and opportunities. Sincerely, ~~/~~~ G=! Wayne Feiden, AICP Director of Planning and Development Cc: Mayor Mary Clare Higgins Redevelopment Authority Teri Anderson, Economic Development Coordinator planning board • conservation commission • zoning 6oardo f appeals • housing partnership • redevelopment authoritv~ • northampton GIs economicdevelopment • communitv~development • historicciistrictcommission • historicalcommission• centra[Gusinessarchitecture ' origina(printec(on rec,7c(e~(pni~er 1 ~ ~. PLANNING AND DEVELOPMENT • CITY OF NORTHAMPTON City Hall • 21 o Main Street, Room 11 • Northampton, MA o 1 oho-3198 • (41315 87-1266 • Fax: 5 87-12Gq., Wav~ne Feiden, Director January 2,.2006 John Fitzgerald, Urban Development Representative Department of Housing and Community Development. One Congress Street, 10th Floor Boston, MA 02114 State Auditor ` State House, Room 229 Boston, MA 02133 www.NorthamptonMa.gov RE: Northampton Redevelopment Authority Calendar 2005 Annual Report To whom it may concern: This serves as the Northampton Redevelopment Authority's Calendar Year 200:5 Annual Report, as required by Mass. General Laws Chapter 121 B, Section 52. With the Northampton Industrial Park largely developed, the Redevelopment Authority has no budget of its own. It relies on city staff and budget for expenditures. There were no receipts to or expenditures by the Northampton Industrial Authority in 2005, so the report is limited to related programmatic activities of the Redevelopment Authority and the city. The Redevelopment Authority did not meet in 2005. Planning staff undertook several related minor activities in 2005: 1.; Issue site plan approval and wetland permits for multiple building and parking expansions in the Industrial Park. 2. Appended industrial park covenants to all versions of the City's zoning (paper and electronic formats), so it is easily accessibleto users. 3. Advanced a rail trail project which abuts the Industrial Park. 4. Planned a meeting for the Redevelopment Authority for early 2006 to discuss future activities. Sincerely, ,~••-----~~~ ~i'~ - Wayne Feiden, AICP Director of Planning and Development Cc: Mayor Mary Clare Higgins Redevelopment Authority Teri Anderson, Economic Development Coordinator planning board • conservation commission • zoning board o f appeals • housing partnership • redevelopment authovitv~ • northampton GIs economic development • communitv~ development • historic district commission • historical commission • central business architecture oripinai printed on recr~cled paper ~~ PLANNING AND DEVELOPMENT • -CITY OF NORTHAMPTON City Ha[~ • 2z o Main Street, Room r t • Nort[jampton~ MA of o60-3 i98 • (4z 3) 587-1266 • Fax: 587-1264 wav~ne Feiden~ Director p[anning@nortyamptonp[anning.org www.northamptonp[anning.org January 11, 2005 John Fitzgerald, Urban Development Representative ~~ Department of Housing and Community Development / ~ One Congress Street, 10th Floor °~=~ ~,.J / C ~ ~~~~ ~~~~ Boston, MA 02114 State Auditor State House, Room 229 Boston, MA 02.133 RE: Northampton Redevelopment Authority Calendar 2004 Annual Report To whom it may concern: .This serves as the Northampton Redevelopment Authority's Calendar Year 2004 Annual Report; as required by Mass. General Laws Chapter 1216, Section 52. With the Northampton Industrial Park largely developed, the Redevelopment Authority has no budget of its own. It relies on city staff and budget for expenditures. There were no receipts to or expenditures by the Northampton Industrial Authority in 2004, so the report is limited to related programmatic activities of the Redevelopment Authority and the city. • The Redevelopment Authority did not meet in 2004. Planning staff undertook several related minor activities in 2004: 1. Issue site plan approval and wetland permits for multiple building and parking expansions in the Industrial Parka 2. Advanced a rail trail project which abuts the Industrial Park. Sincerely, , Wayne Feiden, AICP Director of Planning and Development Cc: Mayor Mary Clare Higgins Redevelopment Authority .Teri Anderson, Economic Development Coordinator planning board • conservation commission • zoning board o f appeals • yousing partnership • redevelopment authoritv~ • nortyampton CIS economic development • communitv~ development • historic district commission • [7istorica[commission • central business architecture originaiprintedon recr~cledpaper r-~' ~ ~~ ~ ~ __ PLANNING AND DEVELOPMENT • CITY OF NORTHAMPTON City Ha~~ • z1 o Main Street, Roam 11 • Northampton; MA o 1 oGo-3198 • (q.13) 587-1266 • Pax: 587-12Gq. Wav~ne Feiden~ Director planning@northamprtonplanning.org wwrv.northamptonp~anning.org January 13, 2004 John Fitzgerald, Urban Development Representative Department of Housing and Community Development One Congress Street, 10th Floor Boston, MA 02114 State Auditor State House, Room 229 Boston, MA 02133 RE: Northampton Redevelopment Authority Calendar 2003 Annual Report To whom it may concern: This serves as the Northampton Redevelopment Authority's Calendar Year 2003 Annua! Report, as required by Mass. General Laws Chapter 121 B, Section 52. With the Northampton Industrial Park largely developed, the Redevelopment Authority has no budget of its own. It relies on city staff and budget for expenditures. There were no receipts to or expenditures by the Northampton Industrial Authority in 2003, so the report is limited to related programmatic activities of the Redevelopment Authority and the city. The Redevelopment Authority did not meet in 2003. Planning staff undertook several related minor activities in 2003: 1. Issue site plan approval and wetland permits for multiple building and parking expansions in the Industrial Park. 2. Advanced the plans to signalize the Industrial Drive/Damon Road intersection. 3. Completed a zoning change to allow common driveways by site plan approval instead of by special permit, which will benefit the Industrial Park: 4. Advanced a rail trail project which abuts the Industrial Park. Sincerely, Wayne Feiden, AICP Director of Planning and Development planning board • conservation commission • zoning 6oarda f appeals • housing partnership • redevelopment authoritv~ • northampton CIs economic development • communitr~ deve[oprnent • historic district commission • historicalcommission • central business architecture origina[i~rintedon recgcledpaper ~~ , ~~ PLANNING. AND_DEVELOPMENT • CITY OF NORTHAMPTON City Hall • 21 o Main Street, Room 11 • Northampton MA o 1060-3198 • X41315 87-1266 • Fax: 5 87-126q. Warne Peir~en~ Director planning@northamptonplanning.org www.northarnptonplanning.org January 3, 2002 John Fitzgerald, Urban Development Representative Department of Housing and Community Development One Congress Street, 10th Floor Boston, MA 02114 A. Joseph Denecci, State Auditor ~`~ j ~~~~,''~~,\,-~.~~' State House, Room 229 ~~ ~ _ Boston, MA 02133 RE: Northampton Redevelopment Authority Calendar 2001 Annual Report To whom it may concern: This serves as the Northampton Redevelopment Authority's Calendar Year 2001'' Annual Report, as required by Mass. General Laws Chapter 121 B, Section 52. With the Northampton Industrial Park largely developed, the Redevelopment Authority has no budget of its own. It relies on city staff and budget for expenditures. There were no receipts to or expenditures by the Northampton Industrial Authority in 2001, so the report is limited to related programmatic activities of the Redevelopment Authority and the city. We undertook several minor activities in 2001: 1. Issue permits for some building and parking expansions in the Industrial Park. 2. Considered how to address drainage problems within the Industrial Park. 3. Advanced a rail trail project which abuts the Industrial Park. 4. Maintain listings of the Industrial Park on statewide inventories of industrial space. Sincerely, - ~... ,' ~.. Wayne Feiden, AICP Director of Planning and Development Cc: Mayor Mary Clare Higgins Redevelopment Authority planning board • conservation commission • zoning 6oardo f appeals • housing partnership • redevelopmentauthoritr • northampton GIs economicclevelopment • community development • historicdistrictcommission • historicalcommission • central6usinessarchitecture original printeAow recv~cled parer PLANNING AND DEVELOPMENT • CITY OF NORTHAMPTON. Citv~ xall • xi o Main Street, Room 11 • Northampton, MA of o60-3198 • X4131587-1266 • Fax: 587-1264 Wav~neFeiden~Director • email:pfanning@citv~.northampton.ma.us • Internet:wwwnorthamptonplanning.arg July 30, 2001 John Fitzgerald, Urban Development Representative Department of Housing and Community Development One Congress Street, 10th Floor '/ Boston MA 02114 ~ r r ~~ A. Joseph Denecci, State Auditor t'' State House, Room 229 Boston, MA 02133 RE: Northampton Redevelopment Authority Calendar 2000 Annual Report To whom it may concern: This serves as the Northampton Redevelopment Authority's Calendar Year 200,0:, Annual Report, as required by Mass. General Laws Chapter 121 B, Section 52. _- _ __ With the Northampton Industrial Park largely developed, the Redevelopment Authority has no budget of its own. It relies on city staff and budget for expenditures. There were no receipts to or expenditures by the Northampton Industrial Authority in 2000, so the report is limited to related programmatic activities of the Redevelopment Authority and the city. We undertook three activities in 2000. 1. Began to examine drainage within the industrial park, in cooperation with the Department of Public Works, to determine if future drainage improvements can reduce localized flooding problems and create opportunities for industrial park infill. 2. Began preliminary discussions with the Northampton Planning Board on reducing the required with of industrial roads within our subdivision standards. -~ 3. Listed the Industrial Park on statewide inventories of industrial space. Sincerely, ''.... 7~ ±~~ 1 i i.'Jr , ~ 4~~j Wayne Feiden, AICP Director of Planning and Development Cc: Mayor Mary Clare Higgins Redevelopment Authority planning board • conservation commission • zoning 6oardo f appeals • housing partnership • redevelopment authoritv~ • northampton GIS economicdevelopment • communitr~development • historicdistrictcommission • historicalcommission • centralbusinessarchitecture originplprintedon recgciedpaper ~~1 ~D PLANNING AND DEVELOPMENT • CITY OF NORTHAMPTON Citv~ Hail • 2z o Main Street • Northampton, MA oz o60 • (4131587-1266 • Fax: (4131587-124 Wav~reFeiden~Director • email:planning@cit~.northampton.ma.us • Internet:wwwcitg.northampton.ma.us January 26, 2000 Carol Wolfe, Urban Development Coordinator Department of Housing and Community Development One Congress Street, 10th Floor Boston, MA 02114 z ,,~ ~.,T 4..: A. Joseph Denecci, State Auditor ~,_° " `~~ -~ State House, Room 229 Boston, MA 02133 RE: Northampton Redevelopment Authority Calender 1999 Annual Report To whom it may concern: _This serves as the Northampton Redevelopment Authority's Calender Year 1999 __ Annual Report, as required by Mass. General Laws Chapter 121 B, Section 52. With the Northampton Industrial Park largely developed, the Redevelopment Authority has no budget of its own. It relies on city staff and the Office of Planning and Development budget for expenditures. There were no receipts or expenditures specifically by the Northampton Industrial Authority in 1999, so the report is limited to programmatic activities of the Redevelopment Authority. We undertook four activities in 1999. 1. Minor Plan change to allow the redevelopment of the Kollmorgen property. We obtained all of the necessary local approvals in 1998. Final recording and effective date of this minor plan change took place in early 1999. 2. Zoning Change to allow back and business offices in the Industrial Park and in the General Industrial zoning district. This change, which reflects the changing nature of industrial/commercial space in Northampton and the nation, received City Council approval. The Redevelopment Authority was part of the discussion process and supported and earlier similar version to what ultimately was approved. 3. Northampton Industrial Park covenants rewrite/Code 303 Major Plan Change (streamlining, rewrite and codification). The Northampton Redevelopment Authority, with technical assistance from the Office of planning board • conservation commission • zoning board o f appeals • housing partnership • redevelopmentauthoritv~ • economicdeve[opment • communitv~development • historicdistrictcommission • histoxica[commission • northamptonG~s origins prince onrec~ce paper _ 1 ` Planning ano Development, totally rewrote the cove ants governing the Northampton Industrial Park. These covenants, written 25 years ago, guided __ _ _ - the development of the Industrial Park. With the development of sophisticated zoning and the industrial park being approximately 95% built- out, anew version of the covenants was needed. We codified the original covenants and all of its amendments, and then delete the vast majority of the regulations. What remains is to address those few things that are not adequately covered in zoning which are necessary to maintain the industrial park's signature appearance. These revised covenants should guide development for the next fifteen years, at which time the covenants will expire. This major plan change received the unanimous vote of the Redevelopment Authority, the property owners, the Planning Board, City Council, and, early in 2000, the Department of Housing and Community Development. The new covenants have been recorded at the Registry of Deeds and are now in effect. 4. Final closing-out of sale of city-surplus land in the Industrial Park. In 1998, upon the recommendation of the Redevelopment Authority and approval of City Council, the City offered a small parcel of surplus land in.the industrial park for sale. This lot was the last "left-over" parcel of land from __ when the City platted the_industrial .park and sold_the lots. Final egal steps _ _ pertaining to this sale took place in early 1999. In the next year, the Redevelopment Authority will probably be involved in the following activities: 1. Reviewing the proposed design for full-depth reconstruction of Damon Road, including a turning light and signal at the entrance to the Industrial Park, which will ease traffic flow in and out of the park and reduce traffic impacts on a surrounding residential neighborhood. 2. Development of the last three remaining lots, and potential development projects which could include two significant buildings on existing lots. If you have any questions, please feel free to contact me. Sincerely, Wayne Feiden, AICP Director of Planning and Development cc: Mayor Mary Clare Higgins Northampton City Council Northampton Redevelopment Authority ~~ - City of Northampton, Massachusetts Planning and Development City Hall, 210 Main Street Northampton, MA 01060 (413) 587-1266 (413) 587-1264 fax Wayne Feiden (413) 587-1265 wfeiden@city.northampton.ma.us MEMORANDUM TO: Carol Wolf, Urban Development Coordinator, DHCD State Auditor Mayor Mary L. Ford CC: Northampton Redevelopment Authority ;:., f FROM: Wayne Feiden, Director of Planning and Development RE: Redevelopment Authority Calender 1998 Annual Report DATE: July 14, 1999 Attached is a copy of the Northampton Redevelopment Authority Calender Year 1998 Annual Report, as required by Mass. General Laws Chapter 121B, Section 52. There were no receipts or expenditures in 1998, so the report is limited to other activities of .the Redevelopment Authority. If you have any questions, please feel free to contact me. e~ i ._ __... ---1 T .. (/ C~ Report on Activities, Receipts and Expenditures of the Northampton Redevelopment Authority: January 1, 1998 -December 31, 1998 • In the calendar year of 1998 there were no receipts or expenditures by the Northampton Redevelopment Authority. • There were three major activities during this calendar year which focused on improvements and changes in the Northampton Industrial Park, the Authority's primary focus. • The first activity was a minor plan change to allow for the redevelopment of five (5) small lots adjacent to the Kollmorgan plant. This land is the last remaining raw land in the Indusrial Park which will mean that once filled, the park will be largely developed. • These five lots each have a minimum lots size which was reduced from two-acres to one-acre in size, which is more appropriate to market demand. These divisions were approved by the Redevelopment Authority, the Northampton City Council, as well.as the Massachusetts Department of Housing and Community Development. • The second activity undertaken by the Redevelopment Authority was a proposal to rewrite the Redevelopment Plan for the Northampton Industrial park. The revisions were suggested due to the adoption of modern zoning laws by the City of Northampton which made many of these requirements obsolete. These changes were also necessary because by now the Industrial Park is fully developed and therefore the current plan for the area no longer applies. • The following sections to be omitted completely in a revised development plan are: - IIIA. Land Acquisition - IIIC. Priorities to purchase and/or lease projected land - IV. Other Provisions necessary to meet Commonwealth and local requirements - List of waivers and amendments • The following sections are to be revised in the new redevelopment plan: - IIA. Objectives of the Plan - IIB. Applicability of Local Codes and Ordinances - IIC. Land Use Proposals - IID. Development Controls Applicable to all Parcels - IIE. Development Controls Applicable to Individual Re-Use Parcels (.~ (~ - __ IIF. Special Development Controls for Properties not to be Acquired - IIID. Obligations to be Imposed on Redevelopers • The proposed changes to the Redevelopment Plan for the Northampton Industrial Park would bring the plan up-to-date with present development as well as Northampton zoning changes. _ • The revised plan will be formally acted on after the Northampton zoning is amended to improve its sound standards (which will then remove the need for these to be in the Redevelopment Plan). • The third activity was a recommendation by the Northampton Redevelopment Authority to the Northampton City Council that a parcel within the boundaries of the Northampton Industrial Park that is owned by the City of Northampton be declared surplus and sold. .~ ~~ ~ /~ CI"i Y of NORTHAMPTON OFFICE of PLANNING-and DEVELOPMENT ~ MEMORANDUM j i Members of the Northampton Redevelopment Authority T0: Members of the City Council Members of the Planning Board FROM: Mayor David B. Musante, Jr. Penelope G. Kim, Director, O.P.D. ~~~^ SUBJECT: The Northampton Industrial Park DATE: October 12, 1990 FILE: As the 20 year bond issue was recently retired for the Northampton Industrial Park, it is timely to assess the impact that that project has had on the City. Financial Summary In 1970, the City issued a $1,250,000 bond to finance the project. In May 1990, the bond was paid off. The total cost of this borrowing-at-6.2o was $798,2.50. The State's Executive Office of Communities and Development and the State's Auditors confirm a gross project cost of $1, 861, 817. These costs were offset by the 1.25 million bond and City appropriations. Total cost to the City for this project was: Survey, Planning & Execution ~ 1,861,817 Cost of Borrowing 798,250 Total: $ 2,660,067 There are three sources of revenue generated by this project: 1. Land sales. The City realized a net total of $705,315 from sale of parcels.- This revenue has gone into General Receipts as it was received (sales took place from 1974 through 1987). 2. State reimbursements. The City has. been reimbursed for one- half of net (excluding gross land sales) project costs by the Executive Office of Communities and Development as part of a Chapter 121B Urban Renewal Project program. This revenue has been received annually beginning in 1973 and deposited into General Receipts. Two more payments are due which will bring the total reimbursements to $469,152. 3. Tax Revenues. The City began realizing tax revenues in FY76 from businesses in the Park. That year the City received $2,468. In FY90, $239,461 was realized bringing the total revenues through FY90 to a total of $1,910,972. ,. ~ .__~ (" 1 Net Land Sales 705,315 State Reimbursement (thru FY92) 469,152 Tax Revenues (thru FY90) 1,910,972 $3,085,439 As of this date, September 1990, we see the City's revenue exceeding its costs by $425,372. Development Summar Eighty-eight (88) acres of the Northampton Industrial Park have been sold to seventeen (17) firms/redevelopers in twenty-one (21) lots/transactions. Total employment in the Park is approximately 800. The firms located in the Park are: _ Almer Huntley, Jr. & Assoc. Baystate Machine Castine Movers E&J Distributors Harlow Industries Kollmorgen Corporation MicroCal, Inc. Mid-Atlantic Canners Assoc. - Yankee Wood Industries Norton Company Pioneer Valley Transit Auth. U.S. Express Spaces for Rent Temp-Pro, Inc. Vancort Instruments F.W. Webb Co. J.A. Wright Co. The Northampton Redevelopment Authority continues to oversee the Redevelopment Plan for the Park, assisted by O.P.D. staff. A revision to the Plan was recently adopted providing an adjustment in set back requirements to allow for the expansions of several businesses. ~ ' ~,~ ~ ~~ ~,- __ ~ortl~a~pto~ 1~e~evelop~e~t ~ utl~or`tt~ ~, MEMORANDUM Members of the Northampton Redevelopment Authority Mayor David B, Musante, Jr. TO: Members of the City Council Executive Office of Communities & Development FROM; penelope G. Kim, Economic Development Coordinator SUBJECT; Annual Report for 1986 DATE: January 15 , 1987 FILE; The following provides a brief overview of the activity of the Northampton Redevelopment Authority CNRA) for the 1986 calendar year and a year-end review of the status of the Northampton Industrial Park. PEOPLE Members of the NRA, with the date of expiration of their respective terms, are: . Edward B. Skroski, Chairman March 3, 1991 . Alfred Griggs, Vice-Chairman March 3, 1990 Leonard Maggiolino, Treasurer March 3, 1988 . Richard Abuza, Clerk May 26, 1989 . Paul Stramese March 3, 1987 The IVRA is staffed by a Secretary, Aleta DeLisle, and the City's Economic Development Co-ordinator, Penelope G. Kim, The staff also provides support for the Northampton Industrial Development Financing Authority, the Community Development Block Grant Pro- gram and otli.er~City-wide economic development planning and program activities. STATUS O~ THE NORTHAMPTON INDUSTRIAL PARK As of the encl of 1986, 82,4 acres of the 88 acre park have been sold to sixteen firms/ redevelopers in 20 lots/transactions. An option on the one remaining parcel has been taken and the sale will be finalized in the spring of 1987. The sixteen firms in oper- ation employ approximately 825 people full time in the Park. The total assessed valuation of land and buildings in the Northampton Industrial Park ~or• the pant three years is as follows: ~'Y 1987 10,493,600* FY 1986 9,556,200 FY 1985 8,207,490 Th.e City realized in tax revenues: FX 1987 165,274* FY 1986 148,121 FX 1985 195,995 *'This amount does not include valuation of four properties constructed late this year. S NRA ANNUAL REPORT FOR 1986 PAGE TWO JANUARY 15, 1987 The City continues to receive an annual reimbursement from the Executive. Office of Communities and Development as the State's participation in this Urban Renewal Project. The amount of $26-,449 received through 1986 has been recalculated; the City will re- ceive $12,732 annually through 1982. REDEVELOPER ACTTVIT~' A Minor Plan Change in the Redevelopment Plan was approved in February to allow for: the sub-division of Parcel 12D into. two parcels; the extension of the hammer- head on the extension of Industrial Drive. by 42 feet; the reduction of side and rear set'backrequiremeizts from 50' to 30' on both parcels. This change resulted in the sale of Parcel 12-D-1 to Micro-Cal, Inc. and 12-D-2 to A1mer Huntley, Jr, and Associates, Additionally, modification of the Subdivision Plan for the Industrial Park was approved by the. Planning Board in January 1986 with provisos. As-built plans for the extens•i:on of the hammerhead and utilities to adjacent sites were submitted and approved in June by the Planning-Board and November by the DPW. A street acceptance petition was submitted to the City Council in June. In December, upon th.e recommendation of the Planning Board and the BPW, the Council accepted zndustr.al Drive East as a City street. In September, Van Cort Instruments, Inc. was appointed redeveloper of Parcel 12-C-2 containing 5,5 acres. Van Cort Instruments p~oduces a variety of scientific instru- ments including telescopes, orreries, compasses, kaleidoscopes and sundials. Simu- ltaneously, Parcel 12-C-3, a strip of 9,440 sq, ft, was identified to be acquired by Almer Huntley, Jr. Associates to be annexed to the existing parcel occupied by that firm. Micro-Cal, Inc, completed construction of a 6,400 sq, ft, building in late summer. The firm received a two year research grant to develop a "reaction calorimeter'. for use in biomedical research. labs and in biotechological and pharmacological companies, At. year's.. end, construction of an office facility for the engineering/surveying/land- sca~e~architects firm of Almer Huntley, Jr. and Associates neared completion as did the bus• storage facility for PVTA which will provide a day care facility on the site, OTHER RET,ATED ACTIVITY Th.e ~ndustra.l'Pa:rk.Tenants Association met in May. Improved signage at the entrance to, the Tndus:tral Park continues to be of .interest to the member •firms, The No,rthaznpton Industrial Development Financing Authority. welcomed Charles O'Connell and John Ste.dinan to the Board, They join; Joseph Fennessey, Chairman; Shirley LaRose,. Secretary; and Eared Grinnell. A Winter 1986 Directory of Manufacturers and Products in Northampton was prepared and distributed through the Northampton Redevelopment Authority's office, ~ ~. - , NRA ANNUAL REPORT FOR 1986 PAGE THREE JANUARY 15, 1987 RECEIPTS AND EXPENDITURES The City's Departments operate on a fiscal year running from July 1st through June 30th. The following summary is of appropriations and expenditures for FY 86 (through June 30, 1986) of the Northampton Redevelopment Authority. . Budget Appropriations and Transfers Personnel* $ 13,146„00 OM 1,142,40 14,288.40 Expenditures Personnel*~ 13,058.24 OM 1,125.95 14,184.19 Balance: $104.21 (*The Economic Development Coordinator's position was funded through the Com- munity Development Block Grant Program.) Other Receipts Turned over to the City; . Proceeds from land Sales $79,640.59 . IRB Filing Fees 200.00 __ ~~rtl~aurptv~r ~Zedeveldpure~rt ~ut~rar~tr~ MEMORANDUM Members of the Northampton Redevelopment Authority TO; Mayor David B. Musante, Jr. Members of the Northampton City Council FROM: Executive Office of Communities & Development Penelope G. Kim, Economic Development Coordinator SUBJECT: Annual Report for 1985 DATE: January 12, 1986 FILE: The following provides an overview of the activity o:f the Northampton Redevelopment Authority (NRA) for the 1985 calendar year and a year-end review of the status of the Northampton Industrial Park. PEOPLE Members of the Northampton Redevelopment Authority, :with the date of the expiration of their respective terms, are: Edward B. Skroski, Chairman March 3, 1986 • Alfred Griggs..,_ Vice-Chairman March 3, 1990 • Leonard Maggiolino, Treasurer March 3, 1988 • Richard Abuza, Clerk May 26, 1989 • Paul Stramese, Member March 3, 1987 The NRA is staffed by a Secretary, Aleta DeLisle, and the City's Economic Development Coordinator, Penelope G. Kim. The staff also provides support for the Northampton Industrial Development Financing Authority and other City-wide economic development planning and program activities: . STATUS OF THE NORTHAMPTON INDUSTRIAL PARK As of the end of 1985, 77.7 acres of the 88 acre park have been sold to redevelopers in 18 lots/transactions. Twelve firms are conducting business in approximately 362,500 sq, ft, of building space. (Two firms which own parcels will begin operations early in 1986.) These firms employ approximately 650 full time employees on the site. 'Two firms have been named as redevelopers of a 4.6 acre parcel (to be sub-divided into 2.3 acre parcels); the land sales will be concluded by spring of 1986 bringing the total number of firms in the Park to sixteen (16). One parcel, of 5.6 acres, remains available for purchase. The total assessed valuation of land and buildings at the Northampton Industrial Park is as follows: FY 1983 7,918,500 FY 1984 8,400,200 FY 1985 8,207,490 FY 1986 9,556,200 (continued) .. . Annual Report January 12 , 1986 Page Two The City realized in tax rebenues: k'X 1983 180,146 FY 1984•. 194,717 FY 1985 195,995 FY 1986 148,121 Additionally, the City receives a $26,449 reimbursement from the State annually (over a twenty year period) as the State's participation in the Urban Renewal program. REDEVELOPER ACTIVITY In July, 1985, the sale of land to the Pioneer Va11ey;Transit Authority and Western Mass. Bus Lines, Inc. was concluded after more than two years of discus- sion and negotiation. The-PVTA will con truct a $1.4 million maintenance facility, with space provided for a day care facility, on its 2.3 acre site. PVTA expects to occupy building by the end of 1986. WMBL will utilize its 2.9 acre site for the storage of its school buses and motor coaches: In the spring of 1985, Yankee Wood Industries added'12,000 sq. ft, to the existing 9,000 sq, ft, structure in order to house new machinery. Sears & Roebuck Co, has made the company an approved laminator for its cabinet subcontractors. Bob Foote constructed another building of 3,800 sq. ft, to provide additional Spaces for Rent on his property. In the Fall, two redevelopers were. appointed for Parcel 12 D; MicroCal, Inc., which produces a computerized instrument (the MC-2 Scanning Calarimeter) for biomedical research; and Almer Huntley; ~'r. and Associates,-Inc:; a firm of surveyors, en- gineers and landscape architects. OTHER ACTIVITY The gffiee of the Redevelopment Authoritye A "Business and Economic Profile"'of the'City of Northampton was prepared for distribution, A Directory indicating which city agenoies~are responsible for what land use and development permits was prepared and widely distributed, An Outreach. to area. '-businesses was conducted. The Mayor and the Economic Development Coordinator, with representatives of the Chamber of Commerce, personally vis:i,ted close to twenty firms, The NRA office is preparing a revised "Directory of Manufacturers" which. will highlight the variety of products local firms are producing, An escrow account, established in 1970 to hold in trust the settlement on a small paxcel acquired when~the Park was assembled; was finally closed and the pro- ceeds turned over to tYie appropriate parties=thus resolving a 15 year impasse. The Northampton Industrial Park Association. The group met three times in 1985 and discussed: infrastructure matters; main- tenance and traffic issues; minor plan changes in the Redevelopment Plan. Park Infrastrucure. The reconstruction of the Bates Street Bridge was completed and the street was reopened to traffic in- Spring 1985, The rotary was widened to provide a greater turning radius. Apropos al to extend the access road and utilities thereunder was -°' eveloped~-and submtted~for`subdivisiori "approvals. Northampton Tndus:.tral Development Fiizancing Authority, In March 1985, the Board approved the transfer of the Northampton Hotel Associates Project to the McColgan/Page Partnership, The Board reaffirmed its endorsement of the application of Northampton Terminal Associates for IRB financing in November 1982,' The Board also approved the transfer of bonds from Robert Fibre Box, Tnc. to the Box Shop Limited Partnership, In June, the NIDFA approved the application of Rugg Lumber Company for IRB financing, and subsequently approved the issuance of a $340,000 bond, Tn July, the Board endorsed the partici- pation of the Cutlery Building Associates in the Guarantee Loan Program through MIFA, RECEIPTS AND EXPENDITURES The City's departments operate on a fiscal year running from July 1st through June 30th. The folchowing summary of receipts and expenditures is for FY85, Budget Appropriation and Transfers Personnel 12,268,00 & 624.00 = 12,892 OM 1, 525' _ OOM 1,116 CDBG Grant 22,000 37,533 Expenditures -_. Personnel 12,842.79 OM 1,202,59 OOM 1,116,00 CDBG Grant (Consultant Salary) 22.,000.00 37,161,38 Balance: Personnel 49,21 OM 322..41 $ 371.62 Receipts Land Sale; Proceeds 0 IRB Filing Fees 200.00 y c~vv,vv (Note: Land Sale Proceeds for FY86 will be $92,889..36) NO. 84-0741-1 STATE AUDITOR'S REPORT ON THE ACTIVITIES OF THE NORTHAMPTON REDEVELOPMENT AUTHORITY SEPTEMBER 1, 1980 TO DECEMBER 31, 1983 81-1-A-741 -1- ORGANIZATION August 31, 1980 The Northampton Redevelopment Authority is authorized by Section 4 of Chapter 121B of the General Laws, as amended, which is known as the Housing and Urban Renewal Law. The Northampton Redevelopment Authority currently maintains its offices at the Northampton City Hall, which is located at 210 Main Street, Northampton. Members Title Term Ex ip res Name 1981 March 3, Chairman Edward B. Skroski 70 Beacon Street Northampton Paul S. Stramese 53 Harrison Avenue Northampton Leonard Maggiolino 36 Beattie Drive Florence Richard Abuza 12 Arnold Avenue Northampton Alfred L. Griggs 9 Barrett Place Northampton Clerk Treasurer State Appointee Assistant Treasurer March 3, 1982 March 3, 1983 May 26 , 1994 March 3, 1985 81-1-A-741 ~~~kIM seer go,aw~~ 61b4 i ~~j~~ Z//~ Jtatel,Xo ael ~o~1jv 02122 AUDITOR'S REPORT Edward B. Skroski, Chairman Northampton Redevelopment Authority 70 Beacon Street Northampton, Massachusetts 01060 We have examined the financial statements of the Northampton Redevelopment Authority as of August 31, 1980 as listed in the.Table of Contents. Our examination was made in accordance with generally accepted auditing standards, and included such, tests of the accounting records and other auditing procedures which we considered necessary in the circumstances. The Authority's financial statements do not reflect certain project costs paid directly by the City of Northampton. As stated in a report from the Northampton City Auditor, these costs totaled $398,964 as of August 31, 1980. This matter is more fully discussed in the Notes and Findings section of this report. In our opinion, except for these unrecorded costs, the financial statements referred to above present fairly the financial position of the Northampton Redevelop- ment Authority and the results of its operations of the urban renewal program as of August 31, 1980, in conformance with generally accepted accounting principles applied on a basis consistent with prior periods and with the Department of Community Affairs' procedures. September 26, 1980 j L2 2i 12gtl THADDEUS BUCZKO State Auditor 81-1-A-741 -3- NOTES__AND_FINDINGS Audit Review: At the conclusion of the audit, a draft of this report was reviewed with Walter Murphy, the Authority's Marketing Director, and Leonard Maggiolino, the Authority's Treasurer. 1. Status: The City of Northampton issued bonds in the amount of $1,250,000 in February 1970 to fund the Millyard Industrial Park Project. All of this money has been paid to the Authority. The City also provided the Authority with an additional $63,719 for project costs and has also expended additional funds for this project as is subsequently noted in this report. The preparation phase of this project has been completed, and the utilities and other facilities are operational. However, the payment for a certain real estate parcel acquired by eminent domain proceedings has not been settled with the property owners, and the final disposition of project land is yet to be achieved. As of the audit date, approximately 56 acres have been sold, and approximately 31 acres of land remain unsold. 2. Internal Control: As part of our examination, we reviewed'and tested the Authority's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. The objective of internal accounting control is to provide reasonable, but not absolute, assurance that the (1) assets are safeguarded against loss from unauthorized use or disposition and (2) financial records are reliable for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a system of internal accounting controls should not exceed the benefits derived and also recognizes that the evaluation of these factors necessarily.requires estimates and judgements by management. We noted that the financial records are not kept at the Authority's office but are in the possession of the Board's treasurer. In addition, the treasurer maintains all accounting records, prepares and signs all checks, withdraws or deposits all investments and prepares all bank reconciliations. 81-1-A-741 -4- Although this lack of segregation of duties would generally indicate poor internal control, the size or volume of the Authority's activities does not warrant the hiring of additional personnel. However, at a minimum, we recommend that the Authority require at least two board members to sign all checks and investments. 3. Accounting Records: As noted in prior audit reports, certain funds appropriated and directly expended by the City of Northampton for this project were not reflected in the Authority's financial statements. We previously recommended that the Authority consult with the Department of Community Affairs concerning the recording on the Authority's books of the direct project payments made by the City and the eligibility of such expenditures for State urban renewal assistance grants. The Authority made the Department aware of this situation and requested their assistance and advice. However, the Department has taken no action to date. The Northampton City Auditor provided us with a statement which indicated that the City has paid a total of $398,964 in project costs as of August 31, 1980. These costs are in addition to the total project costs reflected on the Authority's records. The total project expenditures would be $1,839,817 as of August 31, 1980, if these City expenditures are declared eligible by the Department of Commua:ity Af f airs . 4. Budget Line Item Overruns: A comparision between actual costs and the latest approved budget revealed the following budget line item overruns: Line Item Administrative Costs $ 15,106 Legal Services 1,357 Survey and Planning (Execution) 3,395 Acquisition Costs 7,183 Relocation Payments 3,288 Project Improvements 191,491 Disposal, Lease, Retention Costs. 27,765 As noted in Finding No. 3, the above amounts do not include costs which were incurred by the City of Northampton for this project. We recommended in prior audit reports that the Authority request the 81-1-A-741 -5- approval--of the Department of Community Affairs to make necessary budget revisions. On June 12, 1978, the Authority submitted to the Department a revised project expenditures budget and financing plan for its approval. The revised budget estimated project expenditures at $1,857,546 which included the funds expended by the City for the project and the necessary budget line item revisions. To date, the Department has not approved the revised budget. The Authority's Marketing Director has discussed the status of the revised budget request with the Department of Community Affairs. The Marketing Director stated that the Department has not approved the budget revisions because there are no funds currently available to pay the State's share of the additional costs expended by the City of Northampton. 5. Sale of Land: As of the audit date the following sales of land had been made: Oldon Realty Trust $ 29,500 Yankee Wood Industries, Inc. 15,000 Jonathan A. Wright 25,000 Kollmorgen Corporation 85,000 Castine Realty Trust 21,465 Robert T. Foote, Jr. 33,300 Bak Tile Company 3,500 National Can Corporation 218,260 Bay State Machine Co. 15,000 Temp-Pro, Inc. 31,580 $477,605 Under the terms of an option agreement, the Authority has also received $13,000 as a result of the expiration of an individual's right to purchase a certain i parcel of land. 6. Commonwealth Financial Assistance: Section 57 of Chapter 121B of the General Laws, as amended, provides for State urban renewal assistance grants to cities and towns engaged in State-approved urban renewal projects. The amount of the State grant is generally based on one-half of the net project cost and is payable in annual installments over a twenty-year period. Prior to the determination of the final approved costs, the State grant may be computed and paid on estimated costs and upon completion adjusted to the actual cost. 81-1-A-741 -6- The State urban renewal assistance grant for the Millyard Industrial Park Project has been computed at $623,047, based on an estimated net project cost of $1,246,094. The annual urban renewal assistance grants paid by the Commonwealth to the City of Northampton have been, as follows: 1973 - 1979 $203,367 1980 fiscal year 29,052 $232,419 1 81-1-A-741 -7- Statement No. I Mil yard Industrial Park Project Execution Stage Balance Sheet August 31, 1980 Assets Project Expenditures Fund Investments Funds Held in Escrow (Acquisition Costs) Project Costs: Survey and Planning Expenditures Execution Expenditures Proceeds of Land Sales Remitted to City Liabilities, Reserve and Capital $ 2,747 60,000 3,238 $ 53,993 1,386,860 1,440,853 359,224 $ L , 866 , 062 Liabilities: $ 3,238 Escrow Funds Payable Reserve: $ 2,500 Good Faith Deposit 13,000 Option on Sale of Land (forfeited) 477,605 493,105 Proceeds from Sale of Land Capital: Commonwealth of Massachusetts: 42,000 Survey and Planning City of Northampton: $ 14,000 Survey and Planning Execution: Bond Issue and Appropriations 1,313,719 1,327,719 1,369,71_ $1,856,062 81-1-A-741 -8- Statement No. II Millyard Industrial Park Project Execution Stage Comparison of Approved Budget with Actual Project Costs August 31, 1980 Survey and Planning Expenditures Execution Expenditures: Administrative Costs Legal Services Survey and Planning Real Estate Purchases Acquisition Costs Disposal, Lease, Retention Costs Temporary Operation of Acquired Property Other Income Site Clearance Project Improvements Supporting Facilities Relocation Payments Contingencies Total Project Execution Expenditures Total Project Expenditures Less: Proceeds from Sale of Land Net Project Costs Approved Budget $56,471 69,305 10,800 18,000 941,000 11,600 17,000 63,925 332,600 54,300 4,600 57,753 $1,580,883 $1,637,354 391,260 $1,246,094 Actual Project Costs $53,993 84,411 12,157 21,395 680,322 18,-783 44,765 (7,848) (13,404) 14 , 300 524,091 7,888 $1,386,860 $1,440,853 490 , 605 $950,248 i CITY OF NORTHAMPTON MASSACHUSETTS caA• d J KAY DAVID P. SULLIYAN CITY AUDITOR OFFICE OF THE CITY AUDITOR October 11, 1979 Charles G. Winters, Field Auditor Department of the State Auditor 235 Chestnut Street Springfield, Massachusetts 01101 Dear ?sir. Winters : In response to your letter of September 24, 1979,.1 respectfully submit the following: City Expenditures for Northampton Redevelopment.Authority Fiscal Year ending June 30, 1979 $22,886.28 Period Ending August 31j, 1979 1,602.22 Very truly yours, City Auditor D PS : mlc S3 LF F s 7 J ( 1 r vV Ceep S. NO. 80-1-A-741 REPORT'ON THE EXAMINATION OF THE ACCOUNTS OF THE NORTHAMPTON REDEVELOPMENT AUTHORITY JULY 1, 1978 TO AUGUST 31, 1979 80-1-A-741 -1- ORGANIZATION August 31, 1979 The Northampton Redevelopment Authority is authorized by Section 4 of Chapter 121B of the General Laws, as amended, which is known as the Housing and I Urban Renewal Law. The Northampton Redevelopment Authority currently maintains its offices i, at the Northampton City Hall, which is located at 210 Main Street, Northampton. Members i Name Title Term Expires j i Alfred L. Griggs Assistant Treasurer March 3, 1980 48 Country Way Northampton. Edward B. Skroski Chairman March 3, 1981 70 Beacon Street Northampton i March 3, 1982 Paul S. Stramese Clerk 53 Harrison Avenue Northampton Leonard Maggiolino Treasurer March 3, 1983 36 Beattie Drive Florence Richard Abuza State Appointee May 26, 1984 12 Arnold Avenue Northampton 80-1-A-741 Z W W. S q5y6"(~ p ~p ~~uur~itox AUDITOR'S REPORT Mr. Edward B: Skroski, Chairman Northampton Redevelopment Authority 210 Main Street Northampton, Massachusetts 01060 We have examined the financial statements of the Northampton Redevelopment Authority as_of August 31, 1979 as listed in the Table of Contents.. Our. examination was made in accordance with generally accepted auditing standards, and'-included such tests of the accounting records. and other auditing.pr.ocedur.es which we considered necessary in the circumstances., The Authority's financial statements do not reflect certain. project costs paid directly by the City of Northampton. As stated in a report from the Northampton City Auditor, the total of such costs was $376,889 as of August 31, 1979. This matter is more fully discussed in the Notes and Findings section of this report. In our opinion, except for these unrecorded costs, the financial statements referred to above present fairly the financial position of the Northampton Redevelopment Authority and the results of its operations of the urban renewal program as of August 31, 1979, in conformance with generally accepted accounting principles applied on a basis consistent with prior periods and with the Department of.Community Affairs' procedures. A 80-1-P,_, 741 -3- NOTES AND-FINDINGS Audit Review: At the conclusion of the audit, a draft of this report was r wn.ewed with Mr. Walter Murphy, the Authority's Marketing Director, and Mr. L P c3mard Maggiolino, the Authority's Treasurer. l: Status: The City of Northampton issued bonds in the amount of $1,2510 , 000 in February 1970 to fund the Millyard Industrial Park Project. All of t1a_:L a money has been paid to the Authority. The City also provided the Authority with an additional $63,719 for project costs and has also expended additional funds f or this project as is subsequently noted in this report. The preparation phase of this project has been completed, and the utilities and oi_-her facilities are operational. However, the payment for certain real esta•t e parcels acquired by eminent domain proceedings has not been settled with the prope-rty owner, and the final disposition of project land is yet to. be achieved. To slat e, approximately 30 acres have been sold, and approximately 48 acres of land rema-L-a unsold. 2. Budget Line Item Overrun: Previous audit reports have included find1-r~gs regarding the existence of budget line overruns. It has been previously Yecommended that the Authority request the approval of the Department of Community Aff airs to make necessary budget revisions. The Authority has submitted such a rpQuest to the Department; however, as of this date the Department still has not responded to the Authority's request. As of the current audit date, certain line items within the project budget have been exceeded by actual costs, as follows: y Line Item Overrun Amount Administrative Costs $ 15,106 Legal Services 1,357 Survey and Planning (Execution) 2,260 Acquisition Costs 7,183 Relocation Payments 3'288 Project Improvements 191,491 Disposal, Lease, Retention Costs 12,029 As noted in Finding No. 3, the above amounts do not include costs which 79-1-A-741 -3- NOTES AND FINDING Audit Review: At the conclusion of the audit a draft of this report was reviewed with Mr. Walter Murphy, the Authority's Marketing Director, Mr. Leonard Maggiolino the Treasurer of the Authority, and Mr. Edward B. Skroski, the Authority's , I I Chairman. 1. Status: The City of Northampton issued bonds in the amount of $1,250,000.00 i, in February, 1970 to fund this project. All of this money has been paid to.the I Authority. The City provided the Authority with another $63,719.16 for project costs. The City is also expending additional funds for this project, as subsequently noted in this report. The preparation phase of this project has.been completed, and the utilities. . and.other facilities are operational. However,. the payment for certain real estate parcel acquired by eminent-domain proceedings has not been settled with the_-property owner, and the- complete;-disposition of project land is yet to be achieved. '.To date, approximately i 20 acres have been sold,: and approximately 58.acres of land remain unsold. I 2. Budget Line Item Overrun: Previous audit reports have included findings 'i regarding the existence of budget line item overruns. It was previously recommended. that the Authority request the approval of the Department of Community Affairs to make necessary budget.revisions. During this audit period, the Authority did submit such a request to the Department. However, as of. this date the Department has not certain line responded to the Authority's request. As of the current audit date, items within the project-budget have been exceeded by actual costs, as follows: I Line Item Overrun Amount . $ 15,105 67 Administrative Costs 1,356 67 72 Legal Services 2,260 39 Survey and Planning (Execution) ],182 99 Acquisition Costs Relocation Payments 3191,,288 05 491 05 Project Improvements 6,596 56 05 Disposal, Lease, Retention Costs As noted in Finding No. 3, the above amounts do not include costs which were 79-1-A-741 -4- incurred by.the City of Northampton for this project. I On June 12, 1978, the Authority submitted to the Department a revised project expenditures budget and financing plan for its approval. Included in the proposed budget are the funds expended by the City for this Project. The total I proposed project expenditures of $1,857,546.00 were arrived at as follows: $1,421,361 97 1 Project costs June 30, 1978 352,400 97 55 Costs paid by the City through June 30, 1978 83,783 48 I. Anticipated costs to project completion $1,857,546 00 Authority.personnel estimated that the project will be completed.by June 30, 1979. To date, the Authority has not received a response from the Department regarding.the proposed budget revisions. 3. Accounting Records: As of the previous audit date, it was found that li the Authority's general ledger accounts were. neither up to date nor in balance. The j project cost and escrow savings accounts did not reflect accurate balances. It was i I previously recommended that the Authority maintain its books of accounton a current basis and make appropriate entries to correct the general ledger balances. As of the current audit date it was found.that the Authority had taken ii action to correct the deficiencies in its accounting records. It was also found that the Authority's accounting records were up. to date and in balance. However, as noted in the previous audit report, certain funds appropriated and directly expended by the City of Northampton for this project were not reflected in the Authority's financial records. It was previously recommended that the Authority consult with the Department of Community Affairs concerning the recording on the Authority's books of the direct payments of project costs made by the City, or the eligibility `i of such expenditures. ! The Authority has made the Department aware.of this situation.and has ( requested assistance.from the Department. However, the Department has taken no r action to date. The Northampton City Auditor=provided us with a statement dated July 201 1978. 79-1-A-741 -5- which showed that the City had paid $352,400.55 for project costs as of June-30, 1978. These costs are in addition to the total project costs reflected on the Authority's records. The total project expenditures would be $1,773,762.52 as of June 30, if the City expenditures are declared eligible by the Department of Community Affairs. 4. Sale of Land: As of this audit date the following sales of land had been made: Amount $ 29,500 00 Aldon Realty Trust 13,000 00* Peter C. Rayias (option to purchase) 15,000 00 Yankee Wood Industries, Inc.. 25,000 00 Jonathan A. Wright 85,000 00 Kollmorgen Corporation 18,000 00 Castine Realty Trust $185,500 00 * The option agreement with Mr..Rayias has expired and the optionee has forfeited the option agreement price. 79-1-A-741 -6- Schedule No. I Millyard Industrial Park Project Execution Stage Balance Sheet June 30, 1978 Assets Project Expenditures Fund $ 22 19 Funds Held in Escrow (Acquisiton Costs): Northampton Institution for Savings, 2,876 38 Account #7-718 Project Costs: 992 $ 53 83 Survey and Planning Expenditures , 369 367 1 14 1,421,361. 97. Execution Expenditures , , 500 135 00 Proceeds of Land Sales Remitted to City , $1,559,760 54 Liabilities, Reserve, and Capital Liabilities: 665 $1 00 Good Faith Deposits -.Land Sale , 876 2 38 $ 4,541 38 Escrow Funds Payable , Reserve: Option on Sale Land (forfeited) $ 13,000 00 Proceeds from Sale of Land 172,500 00 185,500 00 Capital; Commonwealth of Massachusetts: Survey and Planning $ 42,000 00 City of Northampton: Survey and Planning $ 14,000 00 Execution: Bond Issue. $1,250-,;000..00,. 719 16 1,313,719 tions 63 i A 16 1,327,719 16 1;369,719 16 a ppropr 9 79-1-A-741 -7- Schedule No. II Millyard Industrial Park Project Execution Stage Comparison of Approved Budget with Actual Project Costs_ June 30, 1978 Survey and Planning Expenditures Execution Expenditures: Administrative Costs Legal Services Survey and Planning Real Estate Purchases Acquisition Costs Disposal, Lease, Retention Costs Temporary Operation of Acquired Property Other Income Site Clearance Project Improvements Supporting-Facilities . Relocation Payments Contingencies Total Project Execution Expenditures Total Project Expenditures Actual Approved Project Budget- Costs $56,471 00 $53,992 83 $ 69,305 00 $ 84,410 67 10,800. 00 12,156 72 18,000 00 20,260 39 941,000 00 680,322 58 11,600 00 . 18,782 99 17,000 00 23;596 05 - (7,848 17) - (10,591 70) 63,925 00 14,300 00 332,600 00 524,091 56 54,300 00 4,600 00 7,888 05 57,753 00 - $1.,.580,883 00 $1,367,369 14 $1,637,354 00 $1,421,361 97 CITY OF NORTHAMPTON DAVID P. SULLIVAN CITY AUDITOR MASSACHUSETTS OFFICE OF THE CITY AUDITOR July 20, 1978 Thomas S. Dimauro Department of the State Auditor 235 Chestnut St. Springfield, Ma. 01101 Dear Mr. Dimauro, in response to your recent request, I respectfully submit the following for your review: City expenditures for Northampton Redevelopr9ent Authority, Millyard Industrial Park project: Period ended 6/30/76 6/30/77 6/30/78 Total: Amount 70,530.78 312,993 81 37,866.25 $421,390,84 The above total represents total bills paid to vendors for the Industrial Park from various City accounts. -Also included in the above i's the following; Industrial Park bills paid from other City accounts: ".Urban Renewal's account 63;719.16° (October, 1976) land damages "Urban Renewal" account' 2;917.50 (,June 8, 1976) legal fees FY 197-8 b i 11 s- -pa i. d -4 u-1 y -15-? - 1-978 -4, 191 .13 FY 1978 encumberances 11080.00 City Auditor NO. 76-1-A-741 REPORT ON THE EXAMINATION OF THE ACCOUNTS OF THE NORTHAMPTON REDEVELOPMENT AUTHORITY AUGUST 1, 1974 TO JUNE 30, 1975 76-1-A-741 -1- ORGANIZATION June 30, 1975 The Northampton Redevelopment Authority is authorized by Section 4 of Chapter 121B of the Ceneral Laws, as amended. The Northampton Redevelopment Authority is currently conducting its activities at the Memorial Hall building located at 240 Main Street, Northampton. There is no rental charge at this building, which is owned by the City of Northampton. Members Name Title Term Exp ires James F. Cahillane Chairman March 3, 1975* 31 South Park Terrace Northampton Edward B. Skroski Assistant Treasurer March 3, 1976 23 Burncolt Road Northampton Paul S. Stramese Clerk March 3, 1977 53 Harrison Avenue Northampton Gerard Wallace Treasurer March 3, 1978 138 West Street Northampton Felix W. Borowski Vice-Chairman and May 26, 1979 25 Main Street State Appointee Northampton * Holdover Officer Name Title Annual Salary Sean E. O'Leary Executive Secretary $10,296.00 r Position Bonded The Treasurer of the Authority is bonded in the amount of $50;000.00. 74-1-A-4 -1- ORGANIZATION I July 31, 1973 The Northampton Redevelopment Authority is authorized by Section 4 of Chapter 121B of the General Laws, as amended. The Authority wa s issued a Certificate i of Organization by the State Secretary on December 8, 1966. The-Northampton Redevelopment Authority is currently conducting its J activities at the Chamber of Commerce Offices located at 155 Ma in Street, Northampton, and it pays a monthly rental of $75.00. Members Name Title Term Expires Felix W. Borawski Vice-Chairman and May 26, 1974 64 Massasoit Street State Appointee Northampton James F. Cahilland 31 South Park Terrace Chairman March 3, 1975 l Northampton Edward B. Skroski Assistant Treasurer March 3, 1976 23_Burncolt Road Northampton Paul S. Stramese Clerk March 3, 1977 53 Harrison Avenue L Northampton I Gerard Wallace Treasurer March 3, 1978 138 West Street I~ Northampton Officer Name Title Annual Salary Sean E. O'Leary Executive Secretary $10,296 00 The Treasurer of the Authority is bonded in the amount of $50,000.00. i 1 74-1-A-4 -2- l I STATUTORY REFERENCES 1. Housing and Urban Renewal Law: Chapter 121B of the General Laws, as amended 2. Creation of Redevelopment Authorities: Section 4 of Chapter 121B of-the General Laws, as amended 3. Urban Renewal Programs: Sections 45-57 of Chapter 121B of the General Laws, as amended STATISTICAL DATA i Northampton Industrial Park Project Execution Stage. Location The project area consists of property n located in the northeast corner of IJ the City, just south of the junction of Interstate 91 and U.S. Route 5. I I ' U Planning advance agreement with the State Division of Urban dated April 2, 1968 Renewal $42,000 00 , Project area 108.35 acres Proposed land re-use: LJ L~ Residential: Dwelling 11.84 acres Related public or semi-public 7.61 acres 19.45 acres Non-residential: Commercial 2.77 acres Industrial .80 acres Open or unimproved land 31.55 acres 78 44 Improved farm land acres . Streets, alleys, public right-of-ways 9.00 acres n 108.35 acres Contract for financial assistance, dated January 27, 1971: Budgeted project costs: Project expenditures $1,032,454 00 Non-cash local grants-in-aid: Public and supporting facilities 54,300 00 Inspection fees 10,868 00 Gross project cost $1,097,622 00 Less: Estimated proceeds from sale of land 391,260 00 Net project cost $706,362 00 74-1-A-4 1- -3- ~i STATISTICAL DATA (CONTINUED - 2) , Northampton Industrial Park Project (Cont.) Execution Stage (Cont.) Sharing of project costs: City of Northampton (net) $353,181 00 State urban renewal assistance grants to City of Northampton: Total authorization (payable over 20 year period) $353,181 00 Bonds issued by City of Northampton to finance project $1,250,000 00 L! ~J lJ • I I I~ I _1 74-1-A-4 In conformance with Section 52 of Chapter 121B of the General Laws, as amended, an examination has been made of the accounts of the Northampton Redevelopment Authority covering the period from August 1, 1972 to July 31, 1973. This audit was initiated on August 27, 1973. The financial records of the Authority which are subject to audit relate J to the funds made available by the City of Northampton and the Commonwealth of Massachusetts. SCOPE OF AUDIT I l__1 LJ I~ I~ i J lJ General: A trial balance of the general ledger was taken as of July 31, 1973. The minutes of the meetings were read and references to financial matters were noted. Cash: The cash was balanced, and the bank accounts were reconciled as of July 31, 1973 and August 27, 1973. Cashbook footings were tested. Bank deposit slips were checked to the cashbook and the bank statements. Cash receipts and disbursements were analyzed for the audit period, and a cash statement was prepared. Expenditures: The expenditures were test checked.to the.canceled checks and paid invoices. Authorizations for the employment of personnel and rates of pay were checked to the minutes of the meetings. Project Costs: Project cost expenditures to date of audit were verified in detail and tabulated. Contract for Financial Assistance: The (contract for :financial assistance is dated January 27, 1971. The urban renewal plan prepared by the Authority was approved by the Department of Community Affairs. Contracts: The contracts were examined and listed. Project Visit: The proposed area covered by the project was visited during the course of the audit. 74-1-A-4 I~ -5- NOTES AND COMMENTS Audit Review : At the conclusion of the audit, a draft of this report was reviewed with the Executive Secretary. Northampton Industrial Park Project: 1. Status: A contract for a planning advance in the amount of $42,000.00 was executed on April 2, 1968 between the Commonwealth of Massachusetts, acting through the then Division of Urban Renewal, and the Authority. The Authority also received $14,000.00 from the City of Northampton in accordance with the contract. The survey and planning stage ended in June.1970 and the execution stage then began. The approved urban renewal plan authorizes the following financial activities. S Expenditures: Project expenditures $1,032,454 00 Noncash local grants-in-aid: r Public and supporting facilities 54,300 00 Inspection fee 10,868 00 Gross project cost $1,097,622 00 Less : ~l Estimated proceeds from sale of land 391,260 00 Net project.cost .$706,362 00 Sharing of project cost: City of Northampton $353,181 00 Commonwealth of Massachusetts 353,181 00 $7063362 00 The City of Northampton issued bonds in the amount of $1,250,000.00 in February of 1970 in order to fund this project. The contract for financial assistance was negotiated with the Department of Community Affairs on January 27, 1971. The State grants will be paid in annual installments over a twenty-year period; however,as of the date of audit the City has not as yet received any payments under the State program. The Executive Secretary stated that this project is completed with utilities and other facilities operational; however,,4 parcels of land acquired by eminent domain proceedings are still unsettled as to acquisition cost with the property owners. 74-1-A-4 -6- 7buyers, of whom two are currently reviewing agreements for the purchase of industrial i_.. sites. Urban Renewal Account #1: On December 7, 1972,upon the recommendation of the Mayor and the Finance Committee,the City Council voted to appropriate $4,000.00 to the Northampton Redevelopment Authority for the purpose of a feasibility study for urban renewal of the downtown business district. l~ The firm of Metcalf and Eddy has been engaged to conduct this study. As of the date of audit the Authority is awaiting the findings of this report. FINANCIAL STATEMENTS L~ The financial statements listed in the "Table of Contents" follow: r L~1 ~I !4-1-H-4 Schedule No. I - Northampton Industrial Park Project Execution Stage Balance Sheet. j~ ' July 31, 1973 - Assets Project Expenditures Fund Cash Petty Cash Fund Investment: Northampton Institution for Savings, l Account #135095 Funds Held in Escrow (Acquisition Costs): Northampton Institution for Savings, Accounts #7-718 and 7-719 Project Costs: Survey and Planning Execution Liabilities Capital Grants: Commonwealth of Massachusetts: Survey and Planning City of Northampton: Survey and Planning Execution n $ 8,611 31- 30 00 30,897 19 23,580 49 M ,8-31 .oZ $ 53,992 85, 931,561 16 985,554 01 $1,0482673 00 $ 42,000 00- $ 14,000 ,00 992,673 00j-' 1,006,673 00 $1,048,673 00 74-1-A-4 i L_J ~J I i _l ~u -8- Schedule No. II Northampton Industrial Park Project Execution Stage Comparison of Approved Budget with Actual Project Costs July 31, 19_ 73 Survey and Planning Execution Expenditures: Administrative Legal Services Survey and Planning Acquisition Relocation Site Clearance Project or Site Improvements Disposition Contingencies Real Estate Purchases Public and Supporting Facilities Inspection Fees Interest Other Income Total Project Execution Expenditures Total Project Expenditures Actual Approved Project Budget Costs P~ $56,471 00 $53,992 85"' b" 30, $ 69,305 00 $ 45,907 24y` 10,800 00 7,975 80 - 18,000 00 18,048 30 11,600 00 18,407_ 99 4,600 00 ._4-888 ' 05 63,925 00 11,470 001- 332,600 00 522,753 96- 17,000 00 7,000 00 52,783 00 - 395,370 00 307,262 50 54,300 00 - 10,868 00 - - (3,177 68)✓ - (8, 975. 00),-- $1,041,151 00 $931,561 16. $1,0972622 00 085,554 01 f -9- Schedule No. III r _ Urban Renewal Account #1 Receipts and Disbursements r-, August 1, 1972 to July 31, 1973 Balance August 1, 1972 Receipts j From City of Northampton Disbursements 'u Administration Office Expenses Consultants' Services Balance July 31, 1973 * Cash in Bank: The First National Bank of Northampton $856 89 $4,000 00 $4,000 00 $ 68 45 8 57 3.066 09 $3,143 11 856 89* $4,000 00 I NORTHAMPTON REDEVELOPMENT AUTHORITY MILLYARD AREA PROJECT BALANCE SHEET December 31, 1968 Cash Account Receivable City of Northampton Commonwealth of Massachusetts Project Cost Control Rent Salaries Travel Lordwood Dragon Other Expenses Total Assets Capital Grant Commonwealth of Massachusetts City of Northampton Total Capital Grant Project Report. Paid Lordwood, Inc. $1,000.00 and Joseph Dragon $1,000.00 for Pleasant Street Project Study. This did not involve this State-Aided project. The charges were incorrect and cannot be charged tothe Millyard Planning Advance. Corrections to be made when you receive the money for the Pleasant Street Project from the City; make a transfer to the State-Aided project. In the future, each project should be handled separately. $ 1,593.70 $18,893.00 $ 1,200.00 $ 380:00 $ 156.o5 $10,717.83 $ 9,825.00 -273:6 1- $42,0 00.00 $14, 000. o0 $12,96o.81 $20,486.70 $22,552.49 $770-00-00 $56,000.00 $56,000.00 Foot Note: Paid $7.:17 to Lordwood for ten (10) copies of Pleasant Street _ 64t 4hre-F s~FE 7' D F vEt G,- A,?C V 7 A u7// ?"I itV2- Y 3/, /Qd 9 o CD ® 0 0 0 / q 4 1 2 2 3 ~4 l C ovn~~ ~e c F/rid _ ' Q f / G 3 4 N ' f 70 4 5 7 a 5 6 t`' ' s ~ T d 6 7 7 8 /7P/7A~ ~s2n /-L M S Y J:. r G~ 8 9 -~a oo 10 10 _ w~ 11 _ / u a t ~f 5 11 w~ w g 12 12 IIIII, : 13 9°( 14 ALA S G 13 14 rl[v 15 G-ONSrIf-r q v7 - [ v /e i f 0 -f a 15 16 J. RA. 40 16 11 EG ~a~~ G c 11 e G`G~c,F -7 18 19 /~//1l~ / S o 19 20 vc 7AN7 • R . ST l l'-~ 6 LZ Or o V I C/ 20 21 r Pe-,4 //A//A/F f c", 21 22 t TN.B OLA Vi E CA' ap Ji fy r- d 22 23 V. C. o ' ' o < 23 24 1`^ 2. 0 ' c 24 25 25 26 7-g, / 3 7/ 26 27 27 28 1A ~ n MR r-/1 7/ 4-) - ~ 7 6 ~ 26 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 '7 37 38 38 39 39 40 - 40 - - - - - - - - - - - - - - - 4 - -I , - I il I I = [ I~ = = J ~ ~ ~ 7 = + t~- NORTHAT,IPTOA? REDEVELMENT AUTHORITY MILLYARD AREA PROJECT BALANCE SHEET December 31, 1968 Cash Account Receivable City of Northampton Commonwealth of Massachusetts Project Cost Control Rent Salaries Travel Lordwood Dragone Other Expenses Total Assets Capital Grant Commonwealth of Ma,ssachusettE City of Northampton Total Capital Grant $ 1,593.70 $18,893.00 6 1,200.00 $ 38o.oo $ 156.05 273,61 P 2,000.00 $14,000.00 $12,96o.81 $20,486.70 $22,552.49 $5 ,000.00 $56, ooo. oo $3-67,000-00 Foot Note: Paid $7.17 to Lord-wood for ten (10) copies of Pleasant Street Project Report. Paid Lordl-rood, Inc. $1,000.00 and Joseph Dragor_e $1,000.00 for Pleasant Street Project Study. This did not involve this State-Aided project. The charges were incorrect and cannot be charged to the Mi7_lyard Planning Advance. Corrections to be m_a.de when you receive the money for the Pleasant Street Project .from.the City; make a transfer to the State-Aided project. In the future, each project should be handled separately. 73-A-17 ORGANIZATION July 31, 1972. The .iorthampton Redevelopment Authority is authorized by Section 4 of Chapter 121B of the General Laws, as amended. The Authority was issued a Certificate of Organization by the State Secretary on December 5, 1966. The Northampton Redevelopment Authority is currently conducting its activities at the Chamber of Coml.nerce Offices located at 155 Nain Street, :dorthampton, and it pays a monthly rental of $75.00. Members Name Title Term ExUir es Stanley Dowgert: Assistant Treasurer March 3, 1972% 22 Acre Brook Drive Northampton Gerard Wallace 133 West Street Northampton Felix W. Borawski 64 Massasoit Street Northampton James F. Cahillane 31 South Park Terrace Northampton Edward 13. Skroski 23 Burncolt Road Northampton Holdover Treasurer Vice-Chairman and .State Appointee Chairman Member March 3, 1973 May 2.6, 1974 I March 3, 1975 March 3, 1976 Officer Name Title Annual Salary Sean E. O'Leary Executive Secretary $9,954 00 The Treasurer of the Authority is bonded in the amount of $50,000.00. 73-A-17 ~ 1 I -2- r h STATUTORY REFERENCES 1. dousing and Urban Renewal Law: J Chapter 121B of the General Laws, as amended 2. Creation of Redevelopment Authorities: (l J Section 4 of Chapter 121B of the Gene ral Laws, as.amended 3. Urban Renewal Programs: Sections 45-57.of Chapter 121B of the General Laws, as amended STATISTICAL DATA Northa~-q ton Industrial Park Project i _ Execution Stage Location i The project area consists of property . located in the northeast corner of the City., just south of the junction of Interstate 91 and U.S. Route 5, bounded by the Boston ~ and Maine Railroad on the south and west, and by Interstate 91 on the LJ LJ north and south Punning advance agreement with the State Division of Urban Renewal, dated April 2, 1968 $42,000 00 Project area 108.35 acres Proposed land re-use: r l ~ Residential: L LLLL Dwelling 11.34 acres Related public or semi-public 7.61 acres 19.45 acres Non-Residential: ( I_ J Commercial -J 2.77 acres ~ Industrial .80 acres Open or unimproved land 31.55 acres Improved farm land 44.78 acres Streets, alleys, public right-of-ways 9.00 acres l 108.35 acres Contract for financial assistance, dated January 27, 1971: 73-A-17 -3- STATISTICAL DATA (CONTINUED ~ 2) NoOL-hampton Industrial. Park Project (Cont. ) Execution. Stage (Cont.. ) Budgeted project costs: Project expenditures. $1,032,454 00 111 Non-cash local grants-in-aid: Public and supporting facilities 54,300 00 1 Inspection fees 10,868 00 Gross project cost $1,097,622 00 Less: l Estimated proceeds from sale of land 391,260 00 Net project cost $706,362 00 Sharing of project costs: I ~ City of tor_thompton (net) .$353,181 00 State urban renewal assistance grants 'l to City of Northampton: J Total authorization (payable over 20 year period) $353,181 00 .Bonds issued by City of Northampton to finance project $1,250,000 00 l- Grants-in-aid by City of Northampton: Survey and planning $ 14,000 00 i Execution 395,136 04 $409,136 04 ~ ll I I I I I i 73-A-17 I• S E _J I) ~I ~J T I~ (I L1 I I 1. I r i Li ,I Schedule 1"'o . II T;oa tizampton Industr7.aI Park Project Execution Stage Comparison of Ap~aroved T3udget?i.th Actual Project Costs July 31, 1972 urvcy and Planning xecution Expenditures. Administrative Legal Services Survey and Planning Acquisition Relocation Site Clearance Project or Site Improvements Disposition. Contingencies Real Estate Purchases Public and Supporting Facilities Inspection Fee otal Project Execution Expenditures Total Project Expenditures Actual .Approved Project Budget 'Costs- $56,471 00 $53,992 85 $ 69,305 00 S 30,482 37- 10,800 00 6,963 30 18,000 00 18,048 30 11,600 00 17,250 26 4,600 00 1,688 05 .63,925 00 8,500 00 332,600 00 491,944 31, 17,000 00 7,000 00 52,783 00 - 395,370 00 307,262 50 54,300 00 _ 10,868 00 _ $1_,041,151 00 $889,13909 $1,0971622 00 $943,131 94 72-A-18 -1- I ORGANIZATION 1 July 31, 1971 The Northampton Redevelopment Authority is authorized by Section .4 of Chapter 121B of the'General Laws, as amended. The Authority was issued a Certificate of Organization by the State Secretary on December 8, 1966. The Northampton Redevelopment Authority is currently conducting its activ- ities at the Chamber of Commerce Offices located at 155 Main Street, Northampton, and it pays a monthly rental of $75.00. Members Name Title Term Expires- Assistant Treasurer March 3, 1972 Stanley Dowger 22 Acre Brook Drive Northampton Gerard Wallace Treasurer March 3, 1973 138 West Street Northampton Felix W. Borawski Vice-Chairman and May 26, 1974 64 Massasoit Street State Appointee Northampton James F. Cahillane Chairman March 3, 1975 31 South Park Terrace .Northampton Edward B. Skroski Member March 3, 1976 23 Burncolt Road Northampton Officer Name Title Annual Salary Sean-E. O'Leary Executive Secretary $9,984 00 The Treasurer of the Authority is bonded in the amount of $50,000.00. 72-A-18 -2- STATUTORY REFERENCES 1. Housing and Urban Renewal Law: Chapter 121B of the General Laws, as amended ;I 2. Creation of Redevelopment Authorities: l Section 4 of Chapter 121B of the General-Laws, as amended 3. Urban Renewal Programs: Sections 45 - 57 of Chapter 121B of the General Laws, as amended !J U ~J U U r~ { ~l i U i r! 72-A-18 Location -3- STATISTICAL DATA Northampton Industrial Park Project Execution Stage The project area consists of property located in-the northeast corner of the City, just south of the junction of Interstate 91 and . U. S. Route 5, bounded by the Boston and Maine Railroad on the south and west-, and by Interstate 91 on the 'Aorth and south Planning advance agreement with the State Division of Urban Renewal, dated April 2, 1968, Project area Proposed land re-use: Residential: Dwelling 11.84 acres Related public or semi-public 7.61 acres Non-Residential: Commercial Industrial Open or unimproved land Improved farm land .Streets, alleys, public right-of-ways Contract for financial, assistance, dated January 27, 1971: Budgeted project costs: $42,000 00 108.35 acres 19.45 acres 2.77 acres .80 acres 31.55 acres 44.78 acres 9.00 acres 108.35 acres Project expenditures $1,032,454 00 Non-cash local grants-in-aid: . Public and supporting facilities 54,300 00 Inspection fees 10,868 00 Gross project cost $1,097,622 00 Less: Estimated proceeds from sale of land 3913,260 00. Net project cost ; $7061362 00 !i 72-A-18 ,I -4- lI _ (I _ STATISTICAL DATA (CONTINUED - 2) r~ Northampton Industrial Park Project (Cont.) Execution Stage (Cont.) rl Sharing of project costs: City of Northampton (net) $353,181 00 State urban renewal assistance grants to City of Northampton: ~l Total authorization (payable over. 20 year period) $353,181 00 Bonds issued by City of Northampton to S finance project $1,250,000 00 Grants-in-aid by City of Northampton: n Survey and planning $ 14,000 00 n ~I U U Execution 395,136 04 $409,136 04 E )I LJ i 72-A-18 r ~l 1 U r' t j. U In conformance with Chapter 733 of the Acts of 1962, an examination has { been made of the accounts of-the Northampton Redevelopment Authority covering the period from August 1, 1970 to July 31, 1971. This audit was initiated on August 23, i 1971. The financial records of the Authority which are subject to audit relate to the funds made available by the City of Northampton and the Commonwealth of Massachusetts. SCOPE OF AUDIT General: A trial balance of the general ledger was taken as of July 31, 1971. The minutes of the meetings were read and references to financial matters were noted. Cash: The cash was balanced, and the bank accounts were reconciled as of July 31, 1971 and August 23, 1971. Cash-book..footings were tested. Bark deposit slips were checked to the cash book and the bank statements. Cash receipts and disbursements were analyzed for the audit period, and a cash statement was prepared. Expenditures: The expenditures were test checked to the canceled.checks and paid invoices. Authorizations for the employment of personnel and rates of pay were checked to the minutes of the meetings. Project Costs: Project cost expenditures to date of audit were verified in detail and tabulated. Contract for Financial Assistance:. The Contract for Financial Assistance is dated January 27, 1971. The urban renewal plan prepared by the Authority was. approved by the Department of Community Affairs. Contracts: The contracts were examined and listed. Project Visit: The proposed area covered by the project was visited during the course of the audit. 72-A-18 -6- NOTES AND C0MENTS Audit Review: At the conclusion of the audit, a draft of this report was reviewed with the Executive Secretary and two members of the Authority. 5 Northampton Industrial Park Project: J vl 16 Status: A contract for a planning advance in the amount of $42,000.00 L-I was executed on April 2, 1968 between the Commonwealth of Massachusetts, acting through the then Division of `Jrban Renewal, and the Authority. The Authority also C~ received $14,000.00 from the City of Northampton in accordance with the contract.. ; The survey and planning stage ended in June-1970 and the execution stage then began. The approved.urban renewal.plan authorizes the following financial activities. Expenditures:. L] Project expenditures $1,032,454 00 . Noncash local grants in aid: Public and supporting facilities 54,300 00 Inspection fee 10,868 00 Gross project cost $1,097,622 00 Less: ~I Estimated proceeds from sale of.land 391,260 00 Net project cost $706,362 00 Sharing of project cost: City of Northampton $353,181 00 Commonwealth of Massachusetts 353,181 00 $706,362 00. The City of Northampton issued bonds in the amount of'$1,250,000.00 in . February of 1970 in order to fund this project. A contract for financial assistance was negotiated with the Department.of Li Community Affairs on January 27, 1971. The State grants will be paid in annual installments over a twenty-year period. 2. Survey and Planning Accounts: A trial balance of the general ledger rJ indicated that $58,500.02 had been expended during the survey and planning phase of this project. However, it was noted that these costs were overstated in the amount Lj of $4,507.17 due to the fact that expenditures relating to other projects and a consultants payment which should have been charged to the execution phase were charged r~ 72-A-18 -7- in error.to the survey and planning accounts. The survey and planning accounts are still open on the Authority's books. l It is recommended that the Authority adjust the survey and planning accounts to C~ reflect the actual costs and that these accounts be closed. 3. Funds Held in Escrow: . A review of the cancelled checks issued by the Authority indicated that two checks in the amounts of $19,300.00 and $2,000.00 respectively were drawn in the name of the Authority's Treasurer. An inquiry into the nature of these expenditures revealed that the Treasurer was acting as Trustee for several persons involved in acquisition proceeding with the Authority and had set up savings accounts in the above -mentioned amounts at the Northampton Institution L~ for Savings. It was further noted that no account had been set up in the general ~j ledger to indicate that these funds were still in the custody of the Authority. L_.J n It is recommended that the Authority set up the necessary accounts in the LI general ledger to indicate amounts being held in escrow. 4. Petty Cash: A review of the disbursements made by the Authority indicated that a number of checks had been drawn to cash. The Treasurer of the Authority stated that these checks were written for petty cash purposes. However,.a review of the general ledger accounts indicated that no petty cash account had been established. It was further determined that the Authority had $1.15 on hand in what ((ll it used as a petty cash funds I! It is recommended that the Authority establish a petty cash account in the general ledger and reconcile this fund at least monthly. Reimbursements to this fund should be in the amount expended during the prior month. 5. Other Projects: The City of Northampton has provided funds to the Authority for other projects as follows: A. Preliminary plans for developing another urban renewal project in the Pleasant Street $2,007 17 area of Northampton B. Workable Program $1,500 00 72-A-18 FINANCIAL S'T'ATEMENTS The financial statements listed in the "Table of Contents" follow: 91 l~ 72-A-18 -9- Schedule-No. I Northampton Industrial Park Execution Stage ii Balance Sheet July 31, 1971 Assets Cash: I Li Project Expenditures Fund Funds Held in Escrow (Acquisition Costs) Accounts Receivable: City of Northampton- Survey.and Planning Project Costs: Survey and Planning Execution Liabilities Capital Grants: Commonwealth of Massachusetts: Survey and Planning City of Northampton: Survey and Planning Execution Pill Operation of Acquired Property: Rental Income U 1. 1 I, i $14,099 80 21,300 00 $ 35,399 80 1,007 17 $ 53,992 85 361,911 22 415,904_07 $452,311 04 $ 42,000 00 14,000 00 395,136 04 1,175 00 $452,311 04 j-1 I ~ J ii l~ FH I L] i ~I i ~J f~ U 72-A-18 -10- Schedule No. II Northampton Industrial Park Execution Stage Comparison'of'Approved-Budget with.Actual-Projedt Costs July 31, 1971 Survey and Planning Execution Expenditures: Administrative Legal Services Survey and Planning Acquisition Relocation Site Clearance Project or Site Improvements Disposition Contingencies Real Estate Purchases Public and Supporting Facilities Inspection Fee Total Project Execution Expenditures Total Project Expenditures Actual Approved Projec t Budget Costs $56,471 00 $53,992 85 . $ 69,305 00 $ 13,591 01 10,800 00 4,503 30 18,000 00 18,048 30 11,600 00 12,770 56 4,600 00 1,288 05 63,925 00 6,800 00 332,600 00 22,047 50 17,000 00 5,500 00 52,783 00 395,370 00 277,362 50 54,300 00 - 10,868 00 - $1,041,151 00 $361,911 22 - $1,097,622 00 $415,904 _b 7 l NO. 71-A-:1.0 REPORT ON THE EXAMINATION OF THE ACCOUNTS OF THE NORTHAMPTON REDEVELOPMENT AUTHORITY FROM AUGUST 1, 1969 TO JULY 31, 1970 DEPARTM-EN OF THE STATE AUDITOR DIVISION OF AUTHORITY AUDITS I DEC 4 x.9970 lj~p ISWED T14E 48TMENT OF TRE. S10- THADDEUS 13UCZKO STATE AUDITOR 10M42-69-045932, "Guardian of the Commonwealth" J ORGANIZATION July 31, 1970 The Northampton Redevelopment Authority is authorized by Section 4 of Chapter 121B of the General Laws, as amended. The Authority wa s issued a Certificate of Organization by the State Secretary on December 8, 1966. - 1 rl The Northampton Redevelopment Authority is currently conducting its activi- ties at 48 Damon Road, No rthampton, and it pays a monthly rental of $150.00 for these _J premises. ,J J Members Name Title Term Expires 1. Francis Hogan Chairman March 3, 1971 32 Myrtle Street Northampton Stanley Dowgert Assistant Treasurer March 3 1972 22 Acre Brook Drive Florence Gerard Wallace Treasurer March 3, 1973. 138 West Street " Northampton 'i Felix W. Borawski Vice-Chairman and State May 26, 1974 64 Massasoit Street Appointee Northampton ~ James F. Cahillane Member March 3, 1975 ` 31 South Park Terrace Northampton ll The Treasurer of the Authority is bonded in the amount of $50,000.00. U 71-A-10 -2- STATUTORY REFERENCES Housing and Urban Renewal Law: l Chaprter 121B of the General Laws, as amended 2. Creation of Redevelopment Authorities: Section 4 of Chapter 121B.of the General Laws 3. Urban Renewal Programs: Sections 45 - 57 of Chapter 121B of the General Laws J STATISTICAL DATA ~I Northampton Industrial Park Project rl Execution Stage The project area consists of property Location located in the northeast corner (1 of the city, just south of the LJ junction of Interstate 91 and U. S. Route'5, bounded by the Boston and Maine Railroad on the south and west, and by Interstate 91 on the north and south Planning advance agreement with the State Division of Urban . Renewal, dated April 2, 1968 $425000 00 ~J Project area 108.35 acres Proposed land re-use: Residential: Dwelling 11.84 acres J Related public or semi-public 7.61 acres 19.45 acres J Non-Residential: Commercial 2.77 acres . Industrial .80 acres l Open or unimproved land 31.55 acres LJ Improved farm land 44.78 acres Streets, alleys, public right 9.00 acres -of-ways 1 108.35 acres Contract for financial assistance: 1 Not yet negotiated L_J Budgeted project costs: Project. expenditures $1,068,103 00 Noncash local grants-in-aid: Public and supporting facilities 54,300 00 Inspection Fee 11,224 00 J Gross project cost $15133,627 00 Less: - Estimated proceeds from sale of land, 391,260 00 Ne.t-,p.roj-ec.t_-co.s_t. ~ $742,367 00 . 71-A-10 1 STATISTICAL DATA (CONTINUED - 2) rr Northampton Industrial Park Project (Cont.) Execution Stage (Cont.) Sharing of project costs: t) ( $371,183 i 50 ne City of Northampton State urban renewal assistance grants 'IrI~ to City of Northampton: l~. Total authorization (payable over 20 year period) $371,183 50 (1 Annual installments $18,559 17 Bonds issued by City of Northampton to - 000 250 $1 00 finance project , , F1 Grants-in-aid by City of Northampton: 000 00 Survey and planning $14, l Execution 50,000 00 $64,000 00 U 1 i 71-A--10 -l In conformance with Chapter 733 of the Acts of 1962, an examination has been made of the accounts of the Northampton Redevelopment Authority covering the period from August 1, 1969 to July 31, 1970. This audit was initiated on August 10, l l 1970. The financial records of the Authority which are subject to audit relate to the funds made available by the City of Northampton and the Commonwealth of Massachusetts. SCOPE OF AUDIT General: A trial balance of the general ledger was taken as of July 31, 1970. The minutes of the meetings were read and references to financial matters were noted. Cash: The cash was balanced, and the bank accounts were reconciled as of July 31, 1970 and August 10, 1970. Cash book footings were tested. Bank deposit slips were checked to the cash book and the bank. statements. Cash receipts and disbursements were analyzed for the audit period, and a cash statement was prepared. Expenditures:. The expenditures were test checked to the canceled checks and paid. invoices. Authorizations for the employment of personnel and rates of pay were checked to the minutes of the meetings. Project Costs: Project cost expenditures to date of audit were verified in detail and tabulated. Planning Advance Contract: The contract for a planning advance between the Commonwealth of Massachusetts, acting through the Division of Community Development., and tla Authority was examined and vertinent'data contained therein noted. Contract for Financial Assistance: During the audit period the project entered into the execution stage, but as of the date of audit a Contract for Financial Assistance had not-as yet been negotiated.. However, the urban renewal plan prepared by the Authority was approved by the Department of Community Affairs. F I i r ~I r~ Ij i J i Audit Review: At the conclusion of the audit, a draft of this report was reviewed with the Chairman of the Authority. 1. General: A contract for a planning advance in the amount of $42,000.00 was executed on April 2, 1968 between the Commonwealth of Massachusetts, acting through the then Division of Urban Renewal, and the Authority. As of the current audit date the,Authority has received $42,000.00 in advance monies from the Commonwealth and $14,000.00 from the City of Northampton in accordance with the contract. During the current audit period the urban renewal plan.for this project was approved by the Department of Community Affairs in a letter dated December 17, 1969. The approved urban renewal plan authorizes the following financial activities: Expenditures: Project expenditures $1,068,103 00 Noncash local grants in aid: .P:ublic and supporting facilities 54,300 00 Inspection fee 11,224 00 Gross project cost $1,1.33,627 00 Less: Estimated proceeds from sale of land 391,260 00 Net project cost $742,367 00 Sharing of project costs: City of Northampton $371,183 50 Commonwealth of Mass.: Payable in'20 annual installments of $18,559.17 371,183'50' $742,36.7 00 The planning advance of $42,000.00 received from the Commonwealth will be applied against the annual State grants due. I ~ It was learned that the City of Northampton issued bonds in the amount of $1,250,000.00 in February of 1970 in order to fund this project. As of the date of audit a contract for financial assistance had not been I 7 Irk negotiated with the Department of Community Affairs. 71-A-10 -7- 2. Other Projects: The City of Northampton has provided funds to the Authority for other projects as follows: i • A. Preliminary plans for developing another urtan.renewal project in the Pleasant Street 2,007 17 area of Northampton $ B. Workable Program $1$00 00 FINANCIAL STATEMENTS The financial statements listed in the "Table of Contents" follow: J j ~i l 71-A-10 Schedule No. I i Northampton Industrial Park Execution Stage Balance Sheet July 31, 1970 Cash: Planning Advances Fund $ 30 53 Project Expenditures Fund 26,626 39 $ 26,656 92, j Accounts Receivable: City of Northampton - Survey and Planning 1,007 17 Project Costs: Survey and Planning $54,962 30 Execution 23,373 61 78,335 91 $106,000 00 II~ li Liabilities Capital Grants: Commonwealth of Massachusetts: Survey and Planning $ 42,000 00. City of Northampton: 1 ' Survey and Planning 14,000 00 IJ Execution _ 501000 00 $106,000 00 71-A-10 -9 Schedule No. II Northampton Industrial Park Execution Stage r. Comparison of Approved Budget with Actual Operations July 31, 1970 Actual Approved Projec t Budget Costs Survey and Planning $56,471 00 $54,962 30 it Execution Expenditures: 055 $ 64 00 $ 923 61 Administration , Legal Services 12,000 00 1,250 00 li Survey and Planning 27,000 00• 21,200 00 Acquisition 11,600 00 - Relocation 2,000 00 - Site Clearance 63,925 00 - ` Project or Site Improvements 332,600 00 - Disposition 22,700 00 - ' I Contingencies 80 ,382 00 - l_! Real Estate Purchases 395,370 00 - Total Project Execution Expenditures $1,011,632 00 $23,373 61. !LJ Total Project Expenditures $1,068,103 00 $78,335 91 -3- I miiiyara tirea Survey and Plannin Sg take Location The project area consists-of property located in the northeast corner of the city, just south of the junction n of Interstate 91 and U.S. Route 5, ~J bounded by the Boston and Maine Rail- road on the south and west, and by Interstate 91 on the north and south Project Area 119.8 acres i L] Planning Advance Agreement with the State Division of Urban $42,000 00 ((11 Renewal, dated April 2, 1968 II Industrial development 70-A-9 q,~ 0 -4- In conformance with Chapter 733 of the Acts of 1962, an examination has been made of the accounts of the Northampton Redevelopment Authority covering the period from August 1, 1968 to July 31, 1969. This audit was in- itiated on August 4, 1969. The financial records of the Authority which are subject to audit relate to the preliminary funds made available by the.City of Northampton and .the Commonwealth of Massachusetts. SCOPE OF AUDIT General: A trial balance of the general ledger was taken as of July-31,J 1969. The minutes of the meetings were read and references to financial matters were noted. Cash: The cash was balanced, and the bank account was reconciled as of July 31, 1969 and August 4, 1969. Cash book -footings were tested. Bank deposit slips were checked to the cash book and the bank statements. Cash receipts and disburse- ments were analyzed for the audit period, and a.cash statement was prepared. Expenditures: The expenditures were test checked to the canceled checks and paid invoices. Authorizations for the employment of personnel and rates of pay were checked to the minutes of the meetings. Planning Advance Contract: The contract for a planning advance between the Commonwealth of Massachusetts, acting through the Division of Community Develop- ment, and the Authority was examined and pertinent data contained therein noted. Prof ect Costs: Project cost. expenditures to date'of audit were verified in detail and tabulated. 'Contracts: 'The contracts were examined and listed. Project Visit: The proposed a-zea covered by-,.the project was visited during the course of the audit.. 70-A-9 l -5- NOTES AND CCHKENTS Audit Review: At the conclusion of the audit, a draft of this report _i was reviewed with the Chairman of the Authority. r; 1. General: On March 7, 1968 the City Council of the City of Northampton adopted a resolution authorizing the Authority to file an applica- tion with the then State Division of Urban Renewal for a survey and planning advance U not to exceed $42,000.00 for an industrial development program to be known as the C, - Mi"llyard Area Project. A contract for a planning advance in the amount of $42,000.00 was executed on April 2, 1968 between the Commonwealth of Massachusetts, acting L~ through the then Division of Urban Renewal, and the Authority. As of July 31, 1969 LJ the Authority has received $35,747.00 in advance monies from the Commonwealth. As of the current audit date the City of Northampton had appropriated -i a total of $15,000.00 for this urban renewal program. Schedule No. II appended J to this report indicates in detail the project costs of $41,559.90 incurred ~j through July 31, 1969. LJJ It was further determined that these project costs included the following i disbursements paid directly by the City of Northampton: Survey and Planning $2,500 00 Travel 62 05 Sundry 3=1.65 $2,59370 l_J FINANCIAL STATEMENTS The financial statements listed in the "Table of Contents" follow: 70-A-9 -6- Schedule No. I _ Millyard Area Project I 'Survey and Planning Stage _ Balance Sheet - I July 31, 1969 I Assets Cash in Bank $7,179 93 Account Receivable: City of Northampton u~ 2,007 17 Project Costs 41,559 90 5074700 r- Liabilities and Capital Planning Advances: . Division of Urban Renewal, Massachusetts Department of Community Affairs ...$350747 00 Capital: City of Northampton: l 1967 Appropriation $5,000 00 F 1968 Appropriation 102000 00 15,000 00 $50;747 00 I Schedule No. II I ^I Millyard Area Project i Survey and PlanniL Stage Analysis of Project Costs July 31, 1969 Survey and Planning Costs: Administration: j Overhead and Services $ 5,076 47 ~i Travel 218 10 Publications 2.7 50 Survey and Planning 36,237 83 FJ Total to Date $41,559 90 I I 68-A-14 i -1- i ORGANIZATION June 30, 1967 --7 i The Northampton Redevelopment Authority is authorized by Section 26QQ of Chapter 121 of the General Laws, as amended. The Authority was issued a Ce rtificate of Organization by the State Secretary on December 8, 1966. The Northampton Redevelopment Authority is currently conducting; i ts ii activities at the City Hall in Northampton. t i Members F~ Name Title Term Expires Gerard Wallace Secretary March 3, 1968 r-1 138 West Street Northampton George Hartling Treasurer and Appointee May 26, 1969 27 Fairview Avenue of Division of Housing; Northampton Joseph Deyette, Sr. Member March 3, 1970 27 Crescent Street Northampton Francis Hogan Chairman March 3, 1971 32 Myrtle Street l Northampton C' Stanley Dowrert Vice-Chairman March 3, 1972 22 Acre Brook Drive l C i Florence At the present time bond coverage is not required. 68-A-14 -2- STATUTORY REFERENCES 1. Housing Authority Law: Section 261 to 26MMM inclusive, of Chapter 121 of the General Laws, as amended 2. Land Assembly and Redevelopment Projects: Section 26JJ to 26MM inclusive, of Chapter 121 of the General Laws, as amended 3. Redevelopment Authorities: Section 26QQ to 26RR inclusive, of Chapter 121 of the General Laws, as amended 4. Urban Renewal Projects: Section 26WW to 26JJJ inclusive, of Chapter 121 of the General Laws, as amended it 68-A-14 -3- In conformance with Chapter 733 of the Acts of 1962, an examination has been made of the accounts of the Northampton Redevelopment Authority covering the period from December 8, 1966 to June 30, 1967. This audit was initiated on August 11, 1967. The financial records of the Authority which are subject to audit relate to the preliminary funds made available by the City of Northampton. SCOPE OF AUDIT General: A cash statement relating to an appropriation and expenditures thereunder made by the City of Northampton was prepared. Contract: The only contract issued was for personal services and competitive bidding was not required.. The contract was examined and pertinent data was noted. State Financial Assistance: The State Urban Renewal Assistance grants will not become available until a project enters the execution Stage. i r i 68-A-14 -4- NOTES AND COMMENTS General: As of the date of audit the following steps have been taken by the Authority: 1. In January, 1967 the City of Northampton appropriated $3,000.00 to the Redevelopment Authority. 2. On February 20, 1967 the Redevelopment Authority entered into a contract for consulting engineering services in the amount of $2,500.00. As of the date of audit payments totaling $1,125.00 have been made to this firm. This. firm will assist the Authority in filing an application for State Assistance for a pro- posed industrial park in the Millyard area. FINANCIAL STATEMENT The financial statement listed in the "Table of Contents" follows: 68-A-14 -5- Schedule No. I Disbursements under City Appropriation To June 30, 1967 City of Northampton Appropriation for Redevelopment Program Disbursements: Contract for Planning and. Survey Balance June 30, 1967 $3,000 00 $1,125 00 1,875 00* $3,000 00 * Funds are in the custody of the City of Northampton