City of Somerville, Massachusetts - File #: 190978

• File #: 190978
• Version: 1
• Type: Mayor's Communication
• Status: Placed on File
• File created: 3/4/2011
• In control: City Council
• On agenda: 3/10/2011
• Final action: 5/12/2011
• Enactment date: 5/12/2011
• Enactment #: 190978
• Title: Conveying the Assembly Row DIF Tri-Party Public Funding Agreement.

Date	Ver.	Action By	Action	Result
5/12/2011	10	City Council	Placed on file
5/10/2011	9	Finance	Work completed
5/2/2011	8	Finance	Kept in committee
4/21/2011	7	Finance	Kept in committee
4/13/2011	6	Finance	Kept in committee
4/6/2011	5	Finance	Kept in committee
3/31/2011	4	Finance	Kept in committee
3/10/2011	3	City Council	Referred for recommendation

  Agenda Text

title

Conveying the Assembly Row DIF Tri-Party Public Funding Agreement.

body

Official Text

To the Honorable Board:

I am respectfully forwarding for your review and discussion a copy of the agreement between Federal Realty Investment Trust (FRIT) and its subsidiary entities owning Assembly Row as tenants in common, the Commonwealth of Massachusetts, and the City of Somerville (the so-called "Tri-Party Agreement"). 

During the past few months, the State, the City, and the Developer have been working assiduously to develop a plan for funding both the Orange Line station at Assembly Square and the Assembly Row infrastructure.  For design and construction of the MBTA Station, the Commonwealth has committed $18 million in state grants (and up to $2.86 million in additional state grants, if needed), plus over $5 million awarded in federal multi-modal funding, and the Developer will fund its $15 million obligation for the station.  In addition, to reimburse the Developer for the infrastructure, the City has committed to request that the Board of Aldermen authorize general obligation bonds generating net proceeds of at least $25 million, with a stated commitment from the Developer that if the Developer fails to complete Development Blocks 1, 2, and 3 by spring of 2013 (by which time only $15 million would have been disbursed), the Developer is obligated to reimburse the City for the $15 million and it would be understood that the City would not go to market with the remaining $10 million.

Finally, the Agreement provides if the federal funding for the T-station (which is currently on hold) is made available at a later date, those funds will be used: first, to fund project construction cost overruns directly related to the Assembly Square Orange Line station, then to reimburse the City with one-half of the remaining funds up to $12 million, and only then to the MBTA and the Commonwealth.

OSPCD and Law Office staff will be available to answer any questions you may have.

Sincerely,

Joseph A. Curtatone

Mayor