Photo by Maureen Sullivan
WESTBOROUGH – Although most of the numbers for the proposed Community Center on Union Street are becoming clearer, some costs remain up in the air.
Over the past month, town officials have been refining the proposal, which will come before Town Meeting on Monday, Oct. 16, in two warrant articles.
Article 3 will ask residents whether to authorize the Select Board to acquire the property at 1500 Union St. for a price of $8.8 million (payable by a 20-year bond, at 5 percent interest). This article will require a two-thirds majority vote.
Article 4 will ask for funds to conduct due diligence, design costs, etc., for the proposed center.
While there is a better idea on costs associated with personnel and operations, there’s still one big blank — how much it would take to “fix up” the site should the town approve the purchase.
In her presentation to the Advisory Finance Committee on Sept. 14, Town Manager Kristi Williams said, “It’s difficult to calculate,” but once that fix-up number is determined, she said the hope is that the town could cover that expense out of its reserves.
Why $8.8 million?
According to a Frequently Asked Questions sheet provided by the town, the purchase price of $8.8 million was based on several factors.
The total assessed value of the entire property is $18,874,300 for fiscal 2023, and the current assessed value of the apportioned property the town is interested in purchasing is $1,926,900. Westborough has hired an independent appraiser to appraise the property, which indicated an estimated market value of $6.04 million.
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“The current owner also conducted its own market analysis, and the town and owner [Grossman Development Group] engaged in good faith negotiations to determine the purchase price. The parties agreed on a purchase price of $8.8 million,” according to the FAQ sheet.
During the initial presentation to the Select Board in early September, Williams said that based on input from local architects, it would cost up to $50 million to construct a new building, based on an estimate of $800 per square foot.
This estimate comes from the construction of the library/ senior center in Upton; the 15,000-square-foot project cost $12.4 million, or $826 per square foot.
According to an article in the Worcester Business Journal in February, Bay State Commons was sold to BSC RE Owner LLC for $11 million.
As to why the town is asked to pay $8.8 million for the site, when the entire property was sold earlier this year for $12 million, Williams said, “The $11 million purchase price was not based upon the market value of the real estate at the time of sale, but rather a negotiated price related to outstanding financing in lieu of foreclosure. This is common and is often tied to additional tax implications for one or both parties that may involve this and other properties related to the transaction.”
Westborough has released other annual cost estimates for the center, including $65,000 for maintenance, $160,500 for utilities and $157,400 for the common area maintenance agreement for activities like snow removal and landscaping.
This is in addition to potential staff that may need to be hired or have their hours extended: Community Center Manager (full time, estimated $65,000 annually, plus benefits); Program and Volunteer Coordinator, Senior Center — additional hours, from 25 to 40 (estimated $23,400 annually); and Custodian (full time, $50,000 annually, plus benefits), along with part-time positions.
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The total estimated tax impact to the annual average single-family tax rate would be $149.29 ($84.05 for the purchase, $64.24 for operating expenses).
Should the town decide to purchase the site, it would remove about $1.8 million, or $30,000 annually, from the tax rolls.
The town did consider leasing the site, but decided on purchasing because it plans to “invest a significant amount of money” on the project, and purchasing “guarantees that this investment will continue to benefit the town.”