Budget Hearing Minutes
TOWN OF LYMAN - Bond Hearing - February 02, 2010
On Tuesday, the 2nd of February 2010, a Bond Hearing was held at the Lyman Town Hall. The meeting was called to order at 7:00 pm by Jim Trudell, Selectman Chairman. He welcomed all and introduced Selectman, Elaine Sherry, Selectman, Steve Moscicki, Planning Board Chairman, Bruce Beane, and Planning Board member Al Gombas. He also introduced guest speakers J.T. Horn of The Trust for Public Land (TPL) and Rebecca Brown of Ammonoosuc Conservation Trust (ACT). Trudell explained that we would review finances and then take questions and that there would be no voting tonight or at the upcoming Budget Hearing. The meeting is for information and input only and the decision whether it will be on the warrant will rest with the Selectmen. The vote for or against acquiring the 1,081 acres of land on Under the Mountain Road to be designated as a Lyman town forest will be taken at the annual town meeting March 9th. The audience of 16 people then viewed the wording of the proposed warrant article concerning the $346,000 bond on the overhead projector. Trudell read it aloud in its entirety. He also read aloud the prepared paragraph concerning the proposed financing. Paraphrasing, the most attractive option at this time is a loan taken through Woodsville Guaranty Savings Bank for the $346,000 @ 5 % interest with a flat annual payment of $26,562 for 20 years with a one time $500 processing fee. The 1st payment would be due 1 year from the date of the loan. This might put the 1st payment into 2012 as the closing on the property is anticipated to be in early 2011. The annual tax impact of the loan, based on Lyman's current assessed valuation of $60,900,000 is estimated to be $.46 per $1000 of value or $92/yr on a $200,000 valuation. Moscicki clarified that any income from the land parcel would reduce that tax impact or any costs would increase the tax impact. Sherry reminded that these are estimated figures. Resident, Michael O'Brien asked what would happen if we could not make our bank payments on the loan. Trudell said we would have to go back to the bank and negotiate. The garage and the mapping have been paid off. The grader, the school, and the truck will be paid off. The school will be a bit of a battle but we are getting out of debt. We will be putting ourselves back into debt with this bond. We will be in debt for $26,000/yr rather than for $75,000/yr as other debts are paid off. He expects to get a portion, but not a huge portion, of our tax money back through timber cutting and savings on not having to purchase gravel. He said Lyman has a history of taking out a loan and paying it off quickly. He said he is in favor of the purchase as are the other Selectmen. It is a nice piece of property. O'Brien said it would be administered by the town not by the state. Trudell said that is correct. If purchased, the town would form a Forest Committee of 5 people operating under the Board of Selectmen. They want as few rules as possible on the land use but believe it does need some oversight so we can "use it but don't wreck it". He thinks we need the public land purchase because we don't have much land in Lyman and if a private owner buys land and posts it, "where can we go?" He referred to our Master Plan questionnaire saying 95% of residents want the town to stay as it is. Resident, John Murray asked how we will be able to maintain and police a thousand acres. Trudell says we do not have all the answers but we can work together to figure it out. Brett Presby referred to a statement made by resident, Jim Green at the land informational meeting held January 19th saying there was lots of trash dumped on the property. Brett said there wasn't any more trash dumped there than there is currently dumped on Ash Hill or on Lyman Road. Moscicki said if residents see someone dumping trash they should stop the person saying that this is ours so be careful of it. Beane said the Merrills will be required to clean up anything considered hazardous, as well as the cars and the refrigerator, before the sale is finalized. Snowmobilers will find it is in their best interests to police themselves. Horn recommended a TPL book "Guide to Community Forests" which tells how other towns deal with their forests and their forest committees. Gombas reminded that many in town were very concerned about the money. Trudell said the average household appraised value in Lyman is $157,000. The average $157,000 household will pay $70/yr. Beane said the budget may even be able to be adjusted so taxes might be less. Trudell said things have been paid off, our roads are good, we have good equipment and we are in good shape for a purchase of this sort. Resident, Mark Robinson said the money the town spent on the dam needed to be spent. This land is an unknown. Trudell said people will get to know the land. Trudell said he is thankful for the tax money spent on the dam and that the annual attendance at Dodge Pond Day has grown. He envisions a future Lyman picnic at the forest. Trudell then read aloud a letter received by the Selectmen written by David Falkenham, Grafton County Forester. The letter relayed that he had walked some of the land in early January 2010 and he said it had been heavily cut and high volumes of timber simply do not exist at this time. The Conservation Easement may not allow heavy cutting and heavy cutting would be necessary to make much money. Heavy cutting could, however, provide some wildlife benefits. Heavy cutting may be possible in the next couple of years but would not be able to continue without some gaps in revenue. Taking into account the valuable softwood regenerating presently and the good road system that is in place he sees the property as a valuable asset to the town over which we will have control. He reassured about the "strings" attached to any conservation easement money. In his experience the town retains the right to make decisions with some guidance from the easement. The US Fish & Wildlife service will protect the bats in the mines and will likely gate the mines and limit land use around the mines but the US Government will otherwise remain distant. Resident, Bo Presby said the road on the property needs work and culverts if we are to keep it open. Horn offered that the Merrills may have some excavator equipment available when they clean up the property before the sale is finalized that could possibly be used if culverts are needed. We should have a list of things necessary to be done. Murray said it's too bad we cannot get all our questions answered and all these things figured out before we need to vote. Trudell said it will take management over time. O'Brien said he does not want development. Resident, Jon Linowes thought he recalled we had a way out even if the town approves the bond. Horn said the sale is based on some contingencies being met. Even if the town votes to approve the bond we still can check out the property, the titles, the financing and if things don't check out we can back out. No check will be written if it all does not line up. Robinson said the town has done a great job fixing up the roads but they will need to fix the rest of the roads rather than fixing roads in the forest. Horn said that will be the town and the forest committee making those decisions. Resident, Larry Haley said that the 2-year secret negotiations leave him with a bad taste; that forcing a quick vote is not a good idea; that we should wait a year and that prices could go down in a year. Beane explained that it was he who started the conversations with Mr. Merrill who wanted it to be kept quiet. They did the talks on Mr. Merrill's terms. Then Mr. Merrill passed away and his estate went to probate. Resident Lisa Linowes, who was asked to look into the offer, contacted Rebecca Brown (ACT) who contacted JT Horn (TPL) and with the possible donations the land purchase then became a possibility. It was not a possibility at $900,000. Murray said that it is all happening very quickly. His understanding is that unless there is some contingency that is not met which would void the deal then the town, by virtue of their March vote, is committed to the purchase. Trudell said yes. Resident, Mark Chain said no one is questioning motives. He did want to know if the town warrant article passes and if TPL pulls out, are we in debt? Can we walk away? Yes we can walk away per Trudell and Horn. Chain asked if the Merrills had been contacted to see about an extension to the next prospective TPL deposit date of May 15th. Horn had checked with the Merrill's representative and they do not want to change the dates. Chain asked what we would do if we agree to the $346,000 debt and we have problems with the town equipment or encounter some other town emergency. Trudell said we have some money in a fund for such problems but that Lyman has a history of borrowing and paying off debts quickly. He says we plan the best we can. He looks at what we purchase and what we pay off. That signifies moving forward to him. He wants this town to move forward. He would like to see the Grange building repaired and functioning. If this town doesn't want to move forward then he has no wish to remain on as Selectman. Sherry said the forest purchase is risky, she is in favor of it, but you have to vote your own conscience. A woman by the name of Julie Evans drove to this meeting from Milan because she had helped the town of Errol with a 5,000 acre, $5,000,000 forest land purchase without grants but with healthier timber. She thinks Lyman dealing with a local bank will give us flexibility. The bank is not interested in owning the forest. She was asked how much time Errol had to decide and she said they probably had a couple more months but they had the same amount of meetings that Lyman is having. Bo Presby said that the Errol land used to be paper land and had forest management from the start. Evans said yes, they had enough timber to see them through the first seven years and may need to seek financing in the eighth year. Referring back to the question on an extension of time and then having a special town meeting for this vote, Donna Clark, Administrative Assistant to the Selectmen said the rules for special town meeting are very rigid and a vote on a forest bond would not qualify as an emergency. Bo said the Merrills sold 350 acres to the Kents and that the Merrills had been trying to sell for years. Beane said Mr. Merrill's 5 year wind tower lease with UPC needed to expire before he could sell. Bo said it was on the open market for many years before the UPC lease. Horn said the Merrill family has urgency to sell now to pay for their mother's long term facility care. Rebecca Brown then spoke about ACT being a community based land trust. The members of their board of directors all live in the area. One of them, Jamie Seidel, lives in Lyman. ACT has certain conservation goals such as public access to the land, protection of wildlife habitat, sustaining timber and water quality and views. These would be defined in the conservation easement which would be a legal contract attached to the deed and recorded together at the Grafton County Registry of Deeds. It would stay with the property forever. ACT and the town's selectmen, conservation commission and forestry committee would work together as a team and a management plan would evolve and change with the times. There are state statutes and federal guidelines and funder's expectations which get involved. The easement would be in broad terms. ACT's role is to make sure the town operates within the terms of the easement. Chain asked if we could sell a portion of this land if we wished. Horn said they have raised $343,000 in committed donations so far. The LCHIP (NH Land & Community Heritage Investment Program) donation may dissolve if we try to change parameters. Chain asked if the Selectmen had thought about recouping some of our money by selling some of the land and Trudell said no. The possible timber and gravel was what they thought about as far as saving or recouping money. They were hoping to preserve the land in its entirety. Chain asked if there is any portion of the land that could be sold which would cover our town costs. Trudell turned and asked Horn about the maximum of 10 acres which could become a gravel pit and asked Horn how this area is considered. Horn said this would be an exclusion area within the total area or would be dealt with separately. Gombas offered that it could not be sold without subdivision. Horn said LCHIP and donors consider their donations going toward a 1,081 acre property and would not look kindly on it being whittled down. Brown told Chain that she was first contacted by Linowes years ago concerning the proposed Lyman wind towers. She and Gombas had walked the property. She said it is very difficult to obtain conservation grant money. She also said the areas on the property that would be desirable for house building are also the areas desirable for recreation. Selling a parcel may be defeating your purpose. Murray asked about the terms of the easement and whether they are drawn up before or after the purchase. Brown said the easement will be drawn up before the closing but it will not affect the purchase price. The town elected representatives and attorney will have a seat at the table as the easement is being written. Trudell found the terms to be relaxed and not very intrusive. Chain asked about the town's negotiating power at this table. Horn said we could withhold payment. Brown referred audience to see page 2 of the handout titled "Proposed Lyman Town Forest - More information February 2, 2010" which lists minimum conservation easement terms. The page lists prohibition of development, sustainable forest management, wildlife habitat protection, water quality protection, gravel extraction (no larger than 10 acres) and public access guarantees. Linowes asked if public access was restricted to Lyman residents and Brown said no. The LCHIP donation would specify that the land would be open to anyone from anywhere for their recreational use. Linowes asked if we could charge for out of state visitors. Haley said if the town charges any fees at the forest the insurance liability increases. Horn agreed there would be a heightened level of liability when you charge people. Brown said there will be differing opinions from town residents on the amount of trees being cut. She recommended a book "Good Forestry in the Granite State" as useful. Sherry suggested we all make sure that we know what we are voting for or against. She said this would preserve the land the way it is which we all wanted. Chain said we did not want "undesirable" development. Beane said the Master Plan is only a guideline. The plan could actually allow up to 200 houses to be built on 1081 acres. The Master Plan will stop the development of a McDonalds but not stop building residential homes. Robinson said we all want to retire in Lyman and his hope is that the taxes do not increase and force residents to move out because they can't pay. Horn then gave a mini recap of his presentation given at the informational meeting and TPL's 5 goals for the project. The goals are sustainable timber harvest, wildlife habitat conservation, recreational access, water quality protection and viewshed protection of Gardner Range. He said this investment will appreciate, not depreciate, over time. The easement will require the town to retain a forest management company, Fish & Game will want to protect the bat habitat as it is the 2nd largest bat hibernation area in the state and they will pay for the bat mine gates and their maintenance. People will be shut out of the mine area. They will want activity around the mines held to a minimum in spring and fall for the protection of the bats. The town will own the land; the local land trust (ACT) will hold the easement. LCHIP has an executor's interest and would take over if ACT ever fails. The easement guarantees the funders that their donation interests are protected. A licensed appraiser valued the land at $800/acre in July, 2009 or $865,000 total. The additional $115,000 would cover anticipated transactional costs such as title, survey, environmental investigation, fundraising and staff time. The town would need to agree to 40% or $346,000 ($320/acre) and the town money would go to the land only. TPL has $343,000 in committed donations to date and $291,000 still to find donors for. The town's $346,000 will give the needed $980,000. Chain asked again if the $291,000 can't be raised, or, if due diligence finds something amiss we can just walk away. Horn and Trudell said yes. On a new topic, Horn said they would ask the town to pay title insurance on the land at the time of closing which could be $3-4,000. Clark said the estimated $4,000 we thought we would need to pay for title insurance was actually quoted that morning at closer to $2,000. Linowes questioned if an informational meeting would have been called and if residents would have been consulted if the town meeting was not coming up in March. Horn said TPL structured the timing in such a way as to help them manage the risk. They would be able to have a 70% commitment before the next deposit is due in May. Gombas asked if easements could be clarified before town meeting. Horn will find example easements from other towns such as Errol, Randolph and West Fairlee, VT and will email them to Trudell & Clark in the morning. Chain asked to see the specific LCHIP easements. Horn said the difference between the Lyman conservation easement and the examples is that a local organization will hold the conservation easement for us and not any state or federal organization. Brown said the easements are long and dense documents and she would request another meeting if the easement documents become available. Trudell said absolutely but he also reiterated that the easements are not that strict. Bo pointed out that we cannot save the ridgeline because Monroe owns the ridgeline. Bo said it is too bad that we could not get some guarantee from Monroe. Moscicki said he visited Monroe 2 years ago and that they wished to stop the wind towers at that time so he believes they would not wish it developed. Gombas said the only way he has found to stop someone from developing something in town is to buy it from them. Trudell said that another meeting on the easements will be announced the following Tuesday at the annual Budget Hearing. Trudell thanked all for coming and said for all to call town offices if they have any further questions or concerns.
Trudell closed the meeting at 9:25 pm.
Respectfully submitted,
Carol M. Messner, Lyman Town Clerk
