One bedroom                     10                 6                                     16

Two bedroom                     37                 6                                     43

Three bedroom                     8                 4                                    12

Totals                                     55                 16                                  71

Ayer                                 Allen Hall Knox Hall Revere Hall Totals

One bedroom                      12                    6             2                 20

Two bedroom                     40                     6             3                 49

Three bedroom                   16                    4             8                 28

Totals                                     68                    16         13                 97

Ayer (Senior)                     Hale

One bedroom                     31

Two bedroom                     47

Ayer                                                                         Total 97+78=175

Total 246

With the re-alignment of the U.S. Army at Fort Devens in the mid-1990s, MassDevelopment commenced an active marketing effort to identify users for the Vicksburg Square buildings consistent with the 1994 Devens Reuse Plan and Devens By-Laws. To this effect, the first floor of Revere Hall (the quadrangle building fronting onto Rogers Field) was initially occupied by MassDevelopment’s Devens operations.

Small business users and several non-profit entities were found for the basement, second floor, and third floors.

Per a rent roll from 1999, small business users included the following:

Non-profit and government users included:

Taken together, these users occupied 28,204 square feet or approximately twenty-five percent of Revere Hall. With MassDevelopment occupying most of the first floor, occupied space within the building was approximately 63,500 square feet (which is 57 percent of Revere Hall or 14.6 percent of the Vicksburg Square complex).

At some point in the late 1990s and early 2000s, the Devens Fire Chief expressed serious concerns with the fact that the Vicksburg Square buildings did not meet the requirements of the Commonwealth’s Fire Safety Code. MassDevelopment commissioned a number of reuse studies for the buildings, resulting in the identification of other deficiencies as follows:

MassDevelopment evaluated a number of options including redeveloping Revere Hall itself. Analysis demonstrated that it would make more financial sense to relocate the small business and non-profit users from Revere Hall into newer, more energy-efficient buildings elsewhere on Devens. Many of the Revere Hall tenants moved into 94 Jackson, a former Army office building owned by MassDevelopment. The building is elevator served and meets modern building and life safety codes. Others found alternative space on Devens or in the surrounding towns. For example, Freedoms Way

is now in the Devens Recreation Center and Loaves and Fishes is in a new facility adjacent to the Post Office. MassDevelopment moved its operations into new office space at 33 Andrews Parkway.

Since vacating Revere Hall, MassDevelopment’s brokers and in-house marketing and real estate staff have coordinated an ongoing, comprehensive, integrated marketing plan to position Devens as a developing community and preferred destination for business.

MassDevelopment staff and its agents have worked consistently to interest potential tenants in redeveloping Vicksburg Square for uses consistent with the Reuse Plan and By-Laws. Without exception, these users have declined to make an offer on the buildings due to the major up-front investment of capital required to bring the buildings up to code, combined with their inefficient layouts. As seen from other research and development and office users on Devens and in surrounding towns, this type of user wants inexpensive facilities with open, modular floor plates, preferably on one floor.

Numerous potential users have opined that it would be more expensive to redevelop Vicksburg Square than to build new elsewhere. In the foreseeable future, residential or senior living is likely the only uses that will generate enough revenue to offset the considerable costs of redevelopment.

The Finance Committee reviewed all available reports and information available regarding Trinity Financial’s proposed project for rental units at Vicksburg Square. On November 29, 2011 we, as a committee, released our opposition to the project which we see as a liability to the town. The goal of our committee was to review the information in an objective manner to gauge the impact on the town.  Currently, Vicksburg Square sits solely within the borders of Devens under MassDevelopment

jurisdiction. Given that the fate of Devens itself is not final, we viewed the proposed Vicksburg Square housing proposal as 75% within the town of Ayer per the historical boundaries.

MassDevelopment currently operates Devens’ services of Fire, Police, DPW, Water, etc. For our committee to overlook the possibility of the town boundaries returning to historical lines would be short sighted. In Ayer we have been fortunate to balance our budget for FY2011 and FY 2012 without layoffs or drastic cuts in services. Our departments provide robust service to the community despite shrinking budgets. Our opinion is the additional level of staffing that may be required to accommodate an

additional 8% population increase to Ayer may be breaking point of our ability to balance a budget without a tax override or deep cuts in other line items. MassDevelopment itself which runs Devens reported an operational loss of ($8.7m) and ($6.2m) for FY2009 and FY2010 respectively. Municipalities are required to operate within a balanced budget and cannot have an operating loss.

Trinity has been successful in refurbishing various properties throughout the area. Vicksburg Square is unique from these properties due to its physical location. Of the eight completed mixed income properties listed on Trinity’s website, six of them are in urban settings and none have created dense housing in a suburban environment. In an urban setting the density of the area population generally includes an infrastructure of public transportation. Vicksburg Square residents would need to provide their own transportation with expenses being paid towards insurance, gas, maintenance, and possibly car payments. The other necessities for residents include food and clothing

.

 Vicksburg’s proximity to Route 2 may result in residents heading to the larger shopping centers in Leominster, Lunenburg, and Fitchburg

for their shopping needs rather than Ayer. Trinity offers a range of $800 to $2,500 of disposable income per affordable unit. Depending on the breakdown of the affordable units, there may be more units with disposable incomes in the lower end of the range. To this committee there is little evidence that there will

be Trinity’s $6m – $8m in disposable income infused into the local economy.

The current housing market remains stagnant for both home sales and rentals. Trinity references Littleton Lyne and Old Town at 94% occupancy. The concerns of this committee, in addition to these, are the various home apartments and houses for rent through the town. A journey through town on East Main to West Main, Park Street to Groton School, and other areas of town results in a cornucopia of “For Rent” signs. The multi-family homeowners have fewer units to absorb financial loss due to tenants moving into the proposed development.

Growth is inevitable for most cities and towns. For every new house built there is a deficit impact on town services. The tax revenue from a dwelling does not offset the expenses. The deficit is higher for dwellings with school age children. Therefore, growth needs to be manageable and responsible. The impact of high density housing on current services can be traumatic due to a disproportionate balance of revenue to services. The argument that current services are provided by MassDevelopment and therefore has no bearing on Ayer or its neighboring towns is naïve. Should Devens revert back to its historical boundaries; the impact to Ayer’s services with an increase of 8% population will be traumatic. If 185 units (75% of the units) were taxed at the median value and tax rate, the tax revenue to the town would be approximately $600,000. Due to the high percentage of low income units deflating the tax revenue calculation, the town would receive $157,000. Only 26% of the average tax revenue to offset the increase in expenses.

The numbers presented by Trinity Financial portray the project only in a positive light. Shortfalls or deficits are preceded by the word “only”. We as a committee feel that despite the numerous presentations and reports there is more unknown than known in the numbers.  In all cases we are charged with looking after the best interests of the Ayer taxpayers. Due to the ambiguity of the information, we feel a conservative approach is best for the town and therefore oppose the current project as presented.

Town of Ayer Finance Committee

Brian Muldoon, Chairman

Scott Houde, Vice Chairman

John Kilcommins, Clerk

Michael Pattenden, member