2019.03.11 Council Agenda Item 02

There is new information on this project regarding an updated opinion on the historic value of the farm house and barn at TF2. A detailed description follows the section of background information on the project.

BACKGROUND INFORMATION

The Town Council accepted a presentation from town staff and the Falmouth Land Trust at the July 9, 2018 Council meeting. Click here to review the materials from that meeting. Additional meetings regarding steps associated with the purchase of this property were held on October 10, December 10, and December 20. The Town Council approved orders to authorize the Town Manager to sell TF2 and TF3 to the Trust. TF1 would also be transferred to the Trust in exchange for a stewardship fee.

There are several areas of the Tidewater Master Development Plan that are undeveloped. Some of those areas are protected from future development and other areas could be developed. Those areas being considered for acquisition by the Town include TV5, TF1, TF2, and TF3, as noted on the attached master plan.

The property owner has agreed to sell the property to the Town for $500,000. The appraisals for the properties are $750,000 for TV5 and $710,000 for all TF lots (TF1, TF2 and TF3).

The Falmouth Land Trust would be a partner with the Town. The vision for the future ownership of the properties includes the following:

• TV5 – A portion of this property will be reserved for possible future wastewater treatment plant expansion. The other portion of this property will be conserved at a later date and hopefully associated with a wetland mitigation grant.
• TF1 – This property is already protected under a conservation easement. The Town will assign ownership to the Land Trust and the Town will remain the easement holder.

• TF2 and TF3 – These areas are all one lot but could potentially be subdivided in the future.  The Land Trust intends to purchase these areas from the Town as soon as it acquires it from the current owner. The Trust will pay a prorated amount for TF2 and TF3 which is calculated as follows: (Sales price / Appraisal of TF2, TF3, and TV5) x Appraisal of TF2 and TF3). This equals $243,150.

• There will be additional costs associated with demolition of the existing buildings and mitigation of invasive species. These costs are estimated at $50,000. 

Update on historic value of buildings on TF2

These buildings include a former home and barn which were the primary supporting buildings for agricultural uses at the property. There were efforts around 2005 to obtain opinions on their historic value from the Maine Historic Preservation Commission (a State Agency). The Commission did not review the property in person but relied on photos.  Based on information available to the Town at this time, it appears there was consensus that the historic value was minimal when combined with the structural condition of the buildings.

Recently, a representative from the Falmouth Historic Society contacted the Town to request access to the buildings before the sale and before they were demolished. The Town made that accommodation and requested former local resident Ford Reiche, who has completed a great deal of research on the history of Falmouth in this area, to join us along with a Town consulting structure engineer. 

The Town’s consulting structural engineer concluded that the buildings are beyond repair from an economical perspective. Mr. Reiche has since revisited the site with representatives from Maine Preservation, a private non-profit entity that has interest in historic preservation. They have concluded that the buildings may have significant historical value, and that they are likely economically and physically salvageable. They are recommending that the Town conduct an effort to seek out a partner, via a competitive process, that would restore the buildings. If a partner emerges, the buildings and property would be privately owned and not available for further development.

Ford Reiche and representatives from Maine Preservation will be at the Town Council meeting to offer comments and answer questions from the Council. A copy of the presentation from Maine Preservation is attached.

Considering this new information, the Council should determine whether it is willing to consider a different direction with the use of TF2. The original plan was to sell TF 2 and TF3 to the Trust who would then construct a building for offices, learning, community gathering space, etc. The Trust would also consider finding a partner to purchase TF3 with proceeds to help defray costs of constructing a building on TF2.

If the Council is willing to change direction, it can authorize a process to seek out partners to restore the buildings on TF2. If no partners emerge, the Council could revert back to the original plan. If a partner is found, the Town could sell TF3 to another partner, including the Trust if that property was determined to meet their needs. The Council would also need to be clear about any restrictions to further improve or develop TV2 if there is a plan to restore the TF2 buildings.

The financing of either option is outlined below.

The net costs to the Town is higher under Option 2 but an assumption could be made that the restored home and barn would be a private residence. Given the location and views, the property would have a high value and could contribute an estimated $15,000/yr in taxes. Assuming there is little demand for town services, the difference in net costs between the options would diminish in only a few years.

There are pros and cons to either option but there remains public benefit in both options. Both options continue to provide for future expansion of the wastewater treatment plant, a buffer for the plant and wetlands mitigation funding. There remains a public benefit to how TF 2 is used in the future. but they are different – one option would preserve history while the other would support land conservation. In both cases the cost to the Town are very similar.