Politics & Government

State Offers 90-Plus Acres at Medfield State Hospital

Representatives of DCAM said they want to work with Medfield to sell a portion of the property to the town.

 

State representatives said Tuesday night that they are willing to sell approximately 90 acres of the former Medfield State Hospital property to the town.  

The acquisition price would be based on the Commonwealth recouping a portion of the costs it has incurred on the site since the hospital closed in 2004.

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Carole Cornelison, Commissioner of the Commonwealth's Division of Capital Asset Management (DCAM), told the Board of Selectmen that the state would like to sell a portion of the property to the town so "you can control your own destiny with regard to this property."

We see this as a partnership opportunity to help you achieve your goals to enrich the town and to assist the Commonwealth...We see this as a land disposition model," Cornelison said regarding the 'sales partnership model' DCAM went on to present to the town. 

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This allows you to control your own destiny by owning the property directly. You can receive a percentage of the net resale proceeds if you accomplish your redevelopment milestones in a certain amount of time, and it will return the property to productive use...It really is such a beautiful piece of property for redevelopment.

With her at Tuesday's meeting were Acting Deputy Commissioner for Real Estate Dana Harrell and DCAM Project Manager MaryBeth Clancy.

Harrell presented the details of the plan which includes an "fee simple" unrestricted "as is" sale. 

"It makes sense for all of us to put put this property in productive reuse. We know you have thoughts about that, let's not pretend we don't have history...but we wanted to find a way that we could work collaboratively," Harrell said. 

"The overall concept is to put the land ownership, the property ownership, into the control of the entity that controls the zoning and that's you," he said. "We're offering you a 'fee simple' to use it on an unrestricted basis."

Harrell said the state acquisition price would be based on the Commonwealth "recouping from you a portion of our sunk costs since the closing of the site...that would be the basis of you buying the property."

DCAM did not have a solid number Tuesday night but expects to propose a price to the town within 30 to 60 days.

The town would retain ownership but proceeds from any resale (or ground lease) of the property would be split 50/50 between the town and the state, after operating costs were subtracted. There are incentives to increase the town's proceeds by 20 percent [see below].

Any sale of the property would require legislative action. 

DCAM will work with the town's Medfield State Hospital Redevelopment Committee regarding the proposal.

 

The Medfield State Hospital Sales Partnership Model

The Municipality-Commonwealth Sales Partnership Model, a new land acquisition model initiated by the Patrick-Murray Administration, includes the following elements:

  • Allows the Town to control the end use destiny of the Property. The town may acquire title to the Property on an unrestricted use* basis by paying the State a portion of its 'sunk costs'** Unrestricted use allows the Town the flexibility to choose to (1) retain the Property (or portions of) for a direct public use and/or (2) sell the Property (or portions of) to a private developer; 
  • Town can receive 50% of the net resale proceeds and up to an additional 20% if it achieves certain redevelopment milestones;***
  • Collaborative planning among stakeholders to return Property to productive reuse compatible with the Town of Medfield's Land Use Master Plan, redevelopment guidelines, zoning and Town-wide land development timelines; Town may receive technical assistance from the Commonwealth in the areas of reuse planning, marketing and sale of the Property.

*Unrestricted Use: Town may retain the Property (or portions of) for a direct public use or sell the Property (or portions of) to a private developer.

**Sunk Cost: Sunk Costs are capital expenditures and operating expenses (hard cost and soft costs) incurred by the Commonwealth to improve, maintain, replace or repair the Proposed Disposition Parcel which includes land, infrastructure and improvements. Costs incurred in preparation for or after closure of the facility. 

***Redevelopment Milestone Incentives

Buyer (Town) shall be entitled to a base percentage of 50% of any net resale/ground lease proceeds. As an incentive, the Buyer can earn up to an additional 20% of the net resale/ground lease proceeds according to the followign breakdown listed below:

A. Additional 10% if the Buyer resells/ground leases the Property within 1-2 years of original Closing Date.

B. Additional 5% if the Buyer resells/ground leases the Property within 3-5 years of original Closing Date.

C. Additional 2.5% if the Buyer completes a comprehensive market study to inform land use decisions including zoning for the site.

D. Additional 2.5% if the Buyer adopts by right zoning (to be informed by market study) on the site a portion of which must be for residential housing of at least four units per acre for single family units and eight units per acre for multi-family units.

E. Additional 2.5% if the Buyer adopts 43D of the Acts of 2006, Section 11 of Chapter 205 entitled "local Expedited Permitting" which provides for expedited permitting (180 days) on a redevelopment site.

F. Additional 2.5% if the Buyer adheres to the Commonwealth's sustainable development principals found HERE in the future development of the site. 


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