Berkshire Mall Owners Make New Offer to Dissolve Road District
LANESBOROUGH, Mass. — The Berkshire Mall owners are now offering the town a $1.1 million payment to dissolve the Baker Hill Road District.
This was reported during last week's Select Board meeting, and a draft agreement is in the works that requires the board's approval to move forward. Chair Deborah Maynard explained that negotiations with JMJ Holdings have resulted in a revised proposal that drops the ask for a 10-year tax increment rebate.
"The town has engaged KP Law to draft a proposed settlement agreement that would require Select Board approval, but in order to protect the town, the Select Board would be looking for a certainty of a development or partnership from JMJ," she said.
"So we've been going back and forth trying to come up with a solution that both parties would be in agreement to before it is brought to the full Select Board."
Maynard noted that this would need an affirmative town meeting vote to proceed, and that the decision is not solely on the Select Board. The town's attorney advised that dissolving the BHRD, an independent municipal district that is the taxing authority for the Route 7/8 Connector Road, would require the approval of an agreement between the two entities at the annual town meeting.
The road district was created by home-rule legislation decades ago and would have to be dissolved by the Legislature.
"Any voter would be eligible to come and voice their opinion on whether or not this agreement would go forward," the chair said.
"So even though the Select Board has to approve it to get on a town meeting warrant, just know that we are always looking out for the best interest of the town, and that we definitely would include the town's reaction to this proposal."
Town Administrator Gina Dario reported that the draft agreement is now back with JMJ, and town officials are waiting for additional comments before sending the agreement to the Select Board for a vote. These funds would address the gap in revenue from unpaid taxes to the road district.
"We're encouraged by this dialogue, and we think, based off the draft provided, that there's a deal to be made," said Timothy Grogan, of Housing Development Corp., on behalf of JMJ.
"… We will be providing comments shortly, and, just generally, feel like this is in a better place now where we can move forward in good faith."
JMJ and the Baker Hill Road District remain in a standoff over unpaid taxes for the Route 7/8 Connector Road. JMJ argues that they are being underrepresented and overtaxed by the independent municipal district and want it dissolved, while the BHRD wants to take the mall back.
The property owner previously offered the town a $1.25 million loan to dissolve the road district in return for an incremental rebate that caps the property's post-development value at $20.5 million for 10 years. The town is hoping the Connector Road would be taken over by the state Department of Transportation, although there is no confirmation of this.
During public comment, before it was announced that the tax incentive asks were dropped, BHRD attorney Mark Siegars, speaking as a private citizen, brought up several concerns about the legality of the $1.25 million offer. He asked that the town allow 1,000 homeowners to lend the town $125 each to raise the gap funding.
"This agenda item is termed 'settlement.' What are you settling? You don't have any lawsuits against JMJ. You don't have any claims against JMJ. Only the road district does and the water district," he said.
"So this is a misnomer about a settlement, because nobody's ever disclosed to the community that I'm aware of what it is you're settling. They paid their taxes. They don't owe you a thing. You don't have any lawsuits against them, so what is this settlement?"
Tags: Berkshire Mall,
