WILLIAMSTOWN, Mass. — The Select Board on Monday voted 4-1 to  accept a revised offer from Williams College to purchase the former town garage site at four times the original upfront offer.

 

The college's original response to the town's request for proposals for 59 Water St. proposed that the school acquire the vacant lot for an upfront purchase price of $500,000 plus 10 years of $50,000 contributions to the Mount Greylock Regional School District.

 

On Monday night, Williams' director of communications presented a revised offer: the original $500,000 purchase price plus an additional $1.5 million contribution to the town, paid in a lump sum at the time of closing.

 

In addition to doubling the effective purchase price ($2 million versus the $1 million over 10 years), the new offer addresses a concern raised by members of the Select Board at its first public consideration of the college's proposal: the fact that $50,000 in 2036 is not the same as $50,000 in 2026.

 

The college's Gina Puc noted that the $500,000 purchase price alone is anywhere from a third more to double the lot's appraised value, depending on which appraisal you look at, a sum she characterized as "reasonable, even generous."

 

"After consideration and listening to the good conversation at the last Select Board meeting, we've decided to revise our offer, so we'll make a one-time payment of $1.5 million to the town at closing," Puc said. "This is in place of the $50,000 payment to the local schools.

 

"We're responding to some of the feedback we heard — one, to really compensate for lost tax revenue on the site for this being converted from what was, potentially, a commercial lot and, in addition, listening to feedback about having this go to the town instead of the schools."

 

Puc argued that the $1.5 million will make up for the potential loss in property taxes versus what the lot could generate with commercial development.

 

"The $1.5 million is taking a look at present value," Puc said. "We looked at 35 different comps around town on the commercial side that the potential for similar square footage and determined that the average tax revenue yearly right now is about $25,000. We did some math on that, looking at present value versus discount rate over the years, and that's how we came to the $1.5 million."

 

The town manager and members of the Select Board agreed that the college's revised offer accomplishes the goal of replacing potential tax revenue.

 

"I think what is also good about it is I think the college understands the point of view that unrestricted gifts are the best kinds of gifts," Town Manager Robert Menicocci said. "Having the money in hand today gives us a great deal of flexibility where we will probably … we'll probably be better off in terms of future value. It gives us the opportunity to manage the future value. That's a discussion we can have, if there's a receipt of revenue, what we'll do with it.

 

"The additional revenues proposed goes, at a minimum, at least what we would anticipate in tax revenue in the future and probably goes beyond that."

 

Select Board Chair Peter Beck noted that the town has no shortage of uses for the potential $2 million windfall, including several sites where it needs to stabilize the bank of the Hoosic River, repairs at town hall and the Milne Public Library and tax relief for residents looking at a potential Proposition 2 1/2 override in the near future.

 

It was noted several times during Monday's meeting, including by Puc, that 59 Water St. has been vacant for 30 years, and the college was the only respondent to the RFP that the town issued for potential developers this year.

 

"Moving from $1 million over 10 years to $2 million upfront makes this a highly competitive offer with any commercial bid I could imagine," Beck said. "And we received no commercial bid.

 

"It would be competitive with the bid we didn't get."

 

One member of the board, Shana Dixon, said the college's proposal contained too many what-ifs, and she still believed the former town garage site might be put to better use.

 

"I feel like there are things we could do with that land," Dixon said. "I wonder if the money is worth taking away from the residents what they could have there."

 

Dixon ended up voting in the minority of the 4-1 vote to authorize Menicocci to finalize the land transfer under the new terms.

 

Before voting, two board members did express desires that the town could extract even more favorable terms from the college.

 

After Puc mentioned in her presentation that some of the planned 170 parking spaces at a new college Facilities building could be set aside for public use, benefiting Water Street merchants, Beck said he would prefer to see that commitment in writing.

 

In the end, no such amendment to the proposal was offered, and Menicocci was not told to wait until one was received before closing on the deal.

 

Nate Budington asked if the deal to convey the 59 Water St. lot could be tied to a promise from the college to open 26 Water St., the 9,500 square foot Grundy's Garage building, to commercial development.

 

Menicocci indicated that such a proposal outside the scope of the original RFP would be difficult at this stage.

 

"A negotiation is a negotiation," Menicocci said. "I think, out of a sense of fairness … I don't think another developer would be in a position to offer anywhere close to what the college has offered us already. And then to put further terms that are outside of what we scoped in the RFP — I think it's challenging.

 

"Horse-trading is horse-trading, but even then, with the developer, it's usually something tied to the actual development if there are other tie-ins and such."

 

After agreeing, 4-1, to accept the revised Williams College offer, Beck determined that the board did not need an executive session to discuss negotiations that was included on Monday's agenda.

 

Prior to hearing the revised offer from the college, the board, in its capacity as the town's road commission, approved a couple of pole relocations sought by National Grid and Verizon, heard a presentation about the planned community fair and concert on July 3 in South Williamstown and welcomed new WilliNet Executive Director Teri Yuan while thanking retiring Executive Director Deb Dane and encouraging residents to attend a party in her honor on Thursday from 5 to 7 p.m. at The Log on Spring Street.

 

The board also, in its capacity as the town's alcohol licensing board, granted a license to Delectable Endeavors LLC, which plans to do business as The Gala House at the Orchards Hotel site on Main Street (Route 2).

 

"We will be opening the Orchards and the restaurant at the same time," said Xavier Jones, who formerly owned and operated Adams' Firehouse Cafe & Bistro. "This September, we're looking to open the whole facility."