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North Adams Approves Wheel Estates Rent Hike

By Tammy DanielsiBerkshires Staff
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Mobile Home Rent Control Board members Joseph Gniadek, left, Paul Senecal and Chairman Wayne Wilkinson; on the table are the park's 2009 receipts.
NORTH ADAMS, Mass. — The Mobile Home Rent Control Board crunched the numbers on Tuesday night to approve a new rental rate for Wheel Estates Mobile Home Park.

Tenants will see an increase of $49 a month, the first rate hike in a decade, beginning in November. The rate will be $254, up from $205, plus $9 in city taxes, for a total of $263 a month.

"It may seem a lot to some but after 10 years it's reasonable," said Chairman Wayne Wilkinson. He said the board would meet with tenants to explain the process if they wished.

The amount was less than a third what park owner Morgan Management had requested last month. The Pittsford, N.Y., company had petitioned for a rate increase of $141 that would have boosted monthly rents to $355 in the 200-lot park. The hike does give the company a 4.75 percent rate of return, after the board approved a 1.5 percent increase over the prime rate of 3.25.

More than two dozen park residents filled the seats in the City Council chambers as the board spent more than two hours minutely scrutinizing the park's costs and revenues to come up with a reasonable fee. Morgan's representatives — Chief Financial Officer Larry Hill, park managers Richard and Kim Purcelli and attorney Joseph E. Kelleher of Kraus & Hummel — were quizzed on line items ranging from street plowing to lifeguards.

There were occasional kerfuffles — the board, for instance balked at accepting nearly $12,000 in legal costs that were also marked on the company's federal tax forms. Morgan representatives said the costs were incurred in evictions because tenants had to be taken to Housing Court.

"These people should not be paying legal expenses to remove other people from the park," said board member Joseph Gniadek, motioning to the filled seats. Wilkinson described it at "taking two bites out of same the apple."

They also questioned some $2,000 in gas fillups outside of North Adams (mostly in Cheshire, which raised the board's suspicion about charges from Morgan's Pine Valley Mobile Home Community there, but others in Ludlow, Wilbraham and Gardner) and a $2,000 bill to take down a tree for a new mobile home to placed.

Morgan won the legal expenses on safety grounds by noting one of the tenants removed was involved in a fatal stabbing, and the gas (for travel to courts and Home Depot in Pittsfield) but lost a battle to count the tree removal costs.


"How does the entire park benefit by it?" was the criteria set by Gniadek, who said he spent 130 hours digging into Morgan's 2009 receipts in two giant file notebooks.


More than two dozen park residents attended the meeting.
The amounts were small at times but the dollars and cents could have added up to higher rates for the park tenants. The board took away some $88,000 in capital investment costs and reduced the water usage figure, despite objections from Hill. While the board cut the water numbers, it did give back on the sewer end.

"In 2009, there was no city sewer tax but it is happening ... I just don't see that you people should have to sit here and eat that tax," said Gniadek to Morgan's representatives. "My proposal is I would give your 42 percent of the $64,304 (calculated as 90 percent of the water bill) - that would be $27,900."

Each expense item approved by the board was placed against the park's profit margin. Wilkinson suggested a 1 percent return over the prime rate of 3.25; Morgan had asked for 2.

"We can give them zero," said Wilkinson. "I would look at zero being a terrible job and 2 percent being a great job. They're trying up there and I think they're doing an average job."

Hill said that wasn't fair. "The first time you gave to it [former owner] Fusco it was 1.25 percent and they were doing a terrible job."

Morgan also owns The Spruces in Williamstown and has requested a rate hike of $215 there. The Williamstown Mobile Home Rent Control Board will meet Monday, Sept. 20 at 7:30 p.m. at Town Hall.

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Congressman Neal Highlights Successes of Pandemic Legislation

By Tammy Daniels iBerkshires Staff

Congressman Neal was chair of the powerful Ways and Means Committee when the legislation was implemented. He says he will continue to advocate for funding for businesses, science, education and medicine. 
CHARLEMONT, Mass. — Federal pandemic funds made available during the Biden administration were critical to ensuring the continuation of Berkshire East, a major employer in the hilltowns.  
 
"Every single one of those programs, whether it was PPP, Employee Retention Tax Credit, played an integral role in Berkshire East, keeping it going," said owner Jon Schaefer. "And it was a panic at times." 
 
U.S. Rep. Richie Neal, standing next to Schaefer in the main lodge at the ski resort on Monday, said he wanted to remind people of the successful interventions like the Paycheck Protection Program and Employee Retention Tax Credit that saved local businesses. The congressman also touted the Bipartisan Infrastructure Act, the American Rescue Plan Act and the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act.
 
"So on an overall basis, consider the way that America rebounded from the pandemic so much better than the rest of the world," said Neal, who was chair of the powerful Ways & Means Committee when these programs were implemented under Democratic leadership.
 
"Really large employers or people at the top of the income strata in America, they were able to hold on what they had. The challenge that we had was getting the cash flow for people who really needed it, and the immediacy of it was essential for the work that we've done."
 
Many of these programs have sunset, but claims on the Retention Tax Credit are ongoing. 
 
The Schaefer family has owned and operated Berkshire East since 1976; they also own Zoar Outdoor, and Catamount Mountain Resort in South Egremont. Jon Schaefer said the company employs close to a thousand full and part-time seasonal people, and about 400 at each ski area during the winter.
 
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