Lanesborough Looks to Dissolve Baker Hill road DIstrict
LANESBOROUGH, Mass. — The Select Board is looking to move forward with dissolving the Baker Hill Road District, which is hindering the Berkshire Mall sale.
On Friday, the Select Board heard from Vice Chair Juli Baker and Chair Deborah Maynard on how Tuesday negotiations went with Cypress Equities, JMJ Holdings, town counsel, the town administrator, and state Rep. John Barrett III.
Baker said that during Tuesday's meeting, everyone agreed the goal was to have a successful sale of the mall for redevelopment as it’s in the best interest of the town.
Baker said Barrett assured them the state is willing to take the Connector Road and that the state is willing to provide grants to the town to renovate the water and srwer infrastructure, with an estimated total of $4.5 million, to facilitate the property's redevelopment.
"We have received assurances from Representative Barrett that the commonwealth will provide the monies and will take the Connector," Baker said.
While buyer Cypress Equities saw some benefit in keeping the district, ot now doesn't since the state is willing to provide the funds and renovate the infrastructure, according to Baker.
Baker said that in the meeting, Cypress Equities prefers to enter into a tax increment financing (TIF) and will add to the agreement an amount of funding for public safety services, which would have come from the district. She said Cypress said it would rather enter into one agreement with the town than two agreements with the town and the district.
Mall owner JMJ Holdings is willing to pay $350,000 to the town upon closing, Baker said.
The meeting Friday was to consider moving forward with a dissolution of the district.
"But the decision that it hinges on tonight is whether to move forward to the dissolution of the Baker Hill Road District in some manner," she said.
Baker said she has worked long and hard to see if there was another alternative to this, working closely with the district which has been "very cooperative and very helpful" in making changes.
The district had agreed to make changes to its governance and taxation; agreeing to have a cap for Cypress as well as agreeing to work to have the state take over the road, sending letters of support.
"What changed this for me is that I've always said it's important to have the special district because we get the public safety funding, and it's also important for the economic district to bring the features that an economic district brings because of what we're up against with the infrastructure problems, and the change at this point is that we have a buyer who is willing to supply that public safety money and commit to it over time, along with the TIF that the town would do, which is essential," she said.
"At this point, I feel like it's in the best interest of the town and protects the town the best in terms of a future where we can develop a mall and bring that economic benefit in. You definitely need to reduce taxes, and you cannot do that without a fully developed retail operation right there. So it's been, you know, deeply difficult decision making," Baker said.
Board members Jason Breault and Jeffery Walters agreed it was the best decision to move forward.
Board member Michael Murphy said it’s a difficult decision as he has been an advocate for the district.
"I think this board knows how committed I have been over the years to the district. I think it needs to be stated right up front that. The good work that this district has done for this community for years needs to be acknowledged and recognized, no matter what the outcome. And I, for one, am appreciative of everything they've done from the moment they came to be," he said.
Murphy said he does struggle with the thought of JMJ only having to pay $350,000 but that with the assurance of state money it’s important to help get the property redeveloped.
"I think if the district is willing to consider bringing themselves together to dissolve on their own, rather than putting it out to a town meeting, I would love to see that happen. But the bottom line is, at this point, knowing how hard Juli's worked, knowing how hard I've worked in trying to get the district and Cypress and even JMJ on the same page, that was clearly an impossible task. So I support the dissolution of the district."
Maynard said it’s not that she does not want to get rid of the people on the district due to their hard work over the years, but it’s the best way to move forward.
"I don't want anybody to take this personally. I don't believe that a district, the concept of a district over there, is helping the town in any way, shape, or form. I think dissolving the district, not dissolving the people because the people have worked so hard, but just dissolving the concept of the district is in the best interest of the town. This will help move this project forward," she said.
One of the contingencies to Cypress Equities buying the property is that it would need a clear tax title to close. Currently the mall property is under a tax lien because of unpaid taxes by JMJ equating to around $2 million since 2024. A clean title to the property will not be available until the lien is satisfied or discharged.
"Representative Barrett feels that the debt owed to the district can be forgiven; it would have to be through special special legislation, and the Cypress attorney Steve Riley will be working on that, along with I believe our town counsel, Jeff Blake," Maynard said.
She said the sale of the property would also help with jobs in the area.
"Another point that Representative Barrett brought up was that the unemployment rate in our end of the state is very high, and that moving this project forward will not only bring jobs into this area in the construction field, but also bring jobs into this area after the completion of the project. So I fully support dissolving the district, thanking the Prudential Committee for all of their work that they have done throughout the course of the district's lifetime," Maynard said.
The Select Board unanimously voted to work forward to dissolving the district and voted to have Baker and Maynard keep having negotiations with Cypress and JMJ as well as her and Murphy
The dissolution of the district would hinge on a sale of the property and if all of the agreements are met, which are the TIF agreement and public safety payment with Cypress, $350,000 from JMJ, state money for infrastructure, then the district would not be dissolved.
The town can dissolve the district without a special vote if both parties are in agreement, but if the district is not in agreement, it will have to go to a special town meeting.
The district’s attorney Mark Siegers was in attendance at the meeting and said that this has come as a surprise to him because of the work the district has been putting in.
