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  • Acts
  • 2010
  • Chapter 159 AN ACT AUTHORIZING THE CITY OF MELROSE TO ENTER INTO A TAX DEFERMENT AGREEMENT WITH STONE PLACE LIMITED PARTNERSHIP.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same as follows:

SECTION 1. Notwithstanding sections 1 to 72, inclusive, of chapter 44 of the General Laws, sections 1 to 94, inclusive, of chapter 59 of the General Laws or any other general or special law to the contrary, the city of Melrose, subject to the approval of its board of assessors, shall enter into and execute a tax deferment agreement with Stone Place Limited Partnership, a limited liability company with its usual place of business at 398 Columbus avenue, Suite 293, Boston, Massachusetts 02116.

The agreement shall provide, substantially, as follows:

(1) Stone Place Limited Partnership shall undertake the restoration and conversion of an old mill complex consisting of 212 rental apartment units on a portion of the former Boston rubber shoe factory site located off of Washington street and Pleasant street within the city of Melrose with addresses of 72 and 78 Stone place and 99R and 101 Washington street. Phase 1 of the project shall consist of 3 new buildings including a clubhouse, with a number of amenities therein for the benefit of the project’s residents.

(2) The city of Melrose and Stone Place Limited Partnership shall enter into a tax deferment agreement wherein Stone Place Limited Partnership shall be entitled to defer a portion of its real property tax liability on phase 1 of the project. The tax deferment period shall commence upon completion of phase 1, as evidenced by receipt of a final certificate of occupancy for the 212 units.

(3) The city of Melrose and Stone Place Limited Partnership agree that any deferred tax payments from Stone Place Limited Partnership shall be assessed interest at a rate of 4.5 per cent per annum.

(4) Deferred tax payments, per unit, for phase 1 of the project shall be made in accordance with the following tax deferment schedule:

Est.

Proposed
Per Unit

Estimated
Per Unit

per Unit

per Unit

per Unit

per Unit

Est
Total

Growth Rate

Tax Payment

Tax Payment

Delta

Cumulative

Interest

Defr Liability

Defr Lbty

Yr 1

$1,500

$2,000

($500)

($500)

$0

($500)

($106,000)

Yr 2

$1,600

$2,050

($450)

($950)

($23)

($973)

($206,170)

Yr 3

$1,700

$2,101

($424)

($1,374)

($43)

($1,417)

($300,298)

Yr 4

$1,800

$2,154

($397)

($1,770)

($62)

($1,832)

($388,405)

Yr 5

$1,900

$2,208

($369)

($2,140)

($80)

($2,219)

($470,510)

Yr 6

7.32%

$2,039

$2,263

($303)

($2,443)

($96)

($2,539)

($538,352)

Yr 7

7.32%

$2,188

$2,319

($227)

($2,670)

($110)

($2,780)

($589,433)

Yr 8

7.32%

$2,349

$2,377

($139)

($2,809)

($120)

($2,929)

($621,011)

Yr 9

7.32%

$2,521

$2,437

($36)

($2,846)

($126)

($2,972)

($630,062)

Yr 10

7.32%

$2,705

$2,498

$81

($2,765)

($128)

($2,893)

($613,256)

Yr 11

7.32%

$2,903

$2,560

$215

($2,550)

($124)

($2,674)

($566,933)

Yr 12

7.32%

$3,116

$2,624

$367

($2,183)

($115)

($2,298)

($487,072)

Yr 13

7.32%

$3,344

$2,690

$539

($1,644)

($98)

($1,742)

($369,263)

Yr 14

7.32%

$3,588

$2,757

$733

($910)

($74)

($984)

($208,670)

Yr 15

7.32%

$3,851

$2,826

$951

$41

($41)

$0

$0

Yr 16

(24.79%)

$2,897

$2,897

$0

Yr 17

2.50%

$2,969

$2,969

$0

Yr 18

2.50%

$3,043

$3,043

$0

Yr 19

2.50%

$3,119

$3,119

$0

Yr 20

2.50%

$3,197

$3,197

$0

Notwithstanding the aforementioned tax deferment schedule, Stone Place Limited Partnership shall remain ultimately responsible for payment of its full per unit tax assessment each year. If the actual per unit tax payment due the city of Melrose from Stone Place Limited Partnership exceeds the proposed per unit tax payment referenced above, the delta shall be deferred in accordance with this special act and interest of 4.5 per cent per annum shall accrue and shall be compounded each year.

(5) If Stone Place Limited Partnership transfers its interest in the project to a successor third party owner, the terms of this deferment agreement shall apply to that successor owner.

(6) The tax deferment agreement shall terminate upon recording of a condominium master deed if the project is converted from rental apartment units to condominium units.

(7) The tax deferment agreement shall be terminated upon payment of all actual and deferred taxes, including any interest, by Stone Place Limited Partnership or successor owners of the project.

SECTION 2. In connection with the tax deferment agreement entered into between the city of Melrose, with the approval of its board of assessors, and Stone Place Limited Partnership or its nominee, the board of assessors of the city of Melrose shall forthwith cause to be recorded in the Middlesex south district registry of deeds a statement of their action which shall constitute a lien upon the land covered by the tax deferment agreement for such taxes having been assessed under this act, plus interest as hereinbefore provided. The statement shall name Stone Place Limited Partnership, as owner, and shall include a description of the land adequate for identification. Unless such a statement is recorded, the lien shall not be effective with respect to a bona fide purchaser or other transferee without actual knowledge of the lien. The filing fee for the statement shall be paid by the city of Melrose and shall be added to, and become part of, any taxes due from Stone Place Limited Partnership to the city of Melrose.

SECTION 3. In addition to the remedies provided for in the tax deferment agreement, the recorded statement of the assessors provided for in this act shall have the same force and effect as a valid taking for nonpayment of taxes under section 53 of chapter 60 of the General Laws.

SECTION 4. This act shall take effect upon its passage.

Approved July 15, 2010