The original lease contained an option to renew the lease for two additional twenty year terms , assuming that the terms of the original lease were complied with. One of the terms was that real estate taxes must be kept current. Last year when this lease was renewed the property was not current and the today the tax bill stands at $191,000. I also question as to how a three year sub-lease, violation of the lease, was executed to Thermalcast in December of 2004 that was not approved by the Airport Commission until November (check the board minutes), another violation of the lease. By the way there are even more violations.
Putting all of that aside why am I writing on this today? In the real estate section today, there is an auction dated for March 9th for 15 Coppage Drive advertising the leasehold interest remaining. I assume the successful bidder will only have to pay the City of Worcester $12 per year for the 12 acres through 2026. I also then assume that the successful bidder will have an option to exercise the last 20 year renewal in 2026 for the same $12 per year.
Who is in charge of renewing the lease? I do not think it it the City of Worcester but the Airport Commission, I need to double check this. Last year the lease clearly should not have been renewed and today at the very least we should take steps to end the lease since the terms (back taxes being current) are not being complied with.
If the City of Worcester is facing a budget crisis, which I believe that they are, and need to cut two fire engines, I guess that is what we have to do. It really bothers me, however, to see:
- leases renewed at $12 per year when real estate taxes, now at $190,000, are not paid
- permitting fees, ironically also about $190,000, are waived for the Performing Arts Center, which in the end will pay no property taxes as a non-profit.
- union station tenants that do not pay rent
- investments like $7,000,000 in a SkyBridge, which if not enough "net new" taxes are raised will cost the taxpayers of Worcester.
2 comments:
I am surprised to see that a new lessee can step into the shoes of the current lessee and given the taxes owed, are they even legally the current lessee?
Will our new deputy tax collectors act to enforce the back taxes? Or ahve they already been called off?
How much you want to bet the city will waive the back taxes for the new lessee assuming a bidder steps forward?
$190,000 equals about 3 firemen from what I have read in T&G? Raffa s/b making noise about this and Bijou Deja Vu handout, too
$190,000 would be 380 (almost 2 yrs worth @ 4 /week)Allegiant flight subsidies at $500 per flight.
If we're going pass on $190,000 for the city coffers why not spread teh wealth around to all by subsidizing comm. air service rather than just handing it off to one party...Kennedy Trust or the new lessee?
I hope to hell we do not end up like Chelsea or Sprfld 10 yrs from now.
Jahn:
The more I think about I am not exactly sure how the bank is going to auction off the leasehold interest myself.. Maybe if the lease was in good-standing, they could but since the lease is out of compliance?
The question is who is watching at the airport our "Where's Waldo" Airport Director or our Airport Liaison??/ Someone from the law department should really take a look at this..
Bill
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