Deal inked for Patterson land, the would-be economic engine for town

By Scott Merzbach
Staff Writer

Published on February 05, 2010

Nearly 60 acres of land in North Amherst that could be the future site of a large corporate research and development facility is now under the town's control.

Town Manager Larry Shaffer said that he has reached a signed pre-option agreement with Bruce Patterson, trustee of the Patterson Nominee Trust, which owns the property located between Sunderland and Montague roads, after two years of negotiations.

"Our principal goal with this development is to improve the tax base to sustain local services," Shaffer said.

The property, he said, could support up to a 500,000-square-foot building for a large corporate research and development firm and would be the core of Amherst's future economic development to improve the tax base.

Such a project could be worth $100 million. With the current tax rate of $16.30 per $1,000, Shaffer said this could mean $1.63 million in additional revenue to help grow the town's $2 billion tax base.

Select Board Chairwoman Stephanie O'Keeffe said the agreement should demonstrate to the public that in challenging times for the municipal budget, officials are pursuing both short-term solutions, including personnel cuts and reorganization of departments, and long-term economic development.

"It means an increase in the tax base," O'Keeffe said. "It would be the most significant and serious development potential for the town in a very long time."

"This is extremely good news, and I congratulate the town manager on this. It's something he's been working hard on for a very long time," O'Keeffe said.

<h4>Patterson speaks</h4>

Patterson said developing the property, which his family has farmed for decades, could mean a chance for Amherst to be home to high-tech businesses and for the town to build on its relationship with the University of Massachusetts, just two miles to the south.

"I believe it will be good for Amherst by providing a more diverse tax base and providing more opportunities for Amherst children, and graduates of UMass," Patterson said.

The pre-option agreement pays the Patterson family $1, so the town has control of the property until Sept. 1.

Town Meeting this spring will be asked to execute a three-year option agreement on the land at a cost of $40,000 annually, during which time the property will be considered a "priority development site," according to the agreement.

The town's legislative body, Shaffer said, will determine if this is a vision worth pursuing. As professional research park zoned land, such a project would be an appropriate and allowed use.

"Once you have the option agreement, it speaks to how serious you are about the project," Shaffer said.

<h4>Funds from somewhere</h4>

Shaffer said the money for the option would come from the town in some capacity, likely the capital budget for the first payment.

During the three-year option period, the town would complete a feasibility study, seek grants to study and improve infrastructure on and to the site, including roads, sewer and water lines and other utilities, and marketing the property to an interested developer or company, which would sublease the land from the town.

"I think we need all three years to put this together," Shaffer said.

Shaffer said he believes the town has to be a "formidable player" in getting the development started, otherwise it won't happen.

"We're not engaged in this activity to fail," Shaffer said. "We think it has a good chance of success."

Shaffer said he has already had conversations with Allan Blair, president of the Western Massachusetts Economic Development Commission, on how to bring a project to the site. Shaffer is also hoping the town can tie into other state programs to land a company for the property.

The state is offering up to $100,000 for on-site anaylsi and marketing.

The $120,000 initial outlay is the only money Shaffer expects the town to have to spend on the project.

If the option agreement is executed and a project is identified for the site, a ground lease would be the final step, as the town would transfer or sell the option to that entity and would enter into a development agreement.

The base rent going to the Patterson family would be $415,000 per year, with a Consumer Price Index escalator with an annual increase not to exceed 2 percent.

If buildings on site exceed 500,000 square feet, this base rent would increase.

Terms of this ground lease would be 25 years, with seven extension terms of 10 years each. There is also a $5 million option to purchase the land after 25 years.

Shaffer said the land, which is currently being used only for haying, is an ideal site for a professional research park.

It is close to the Route 116 bypass and there are few homes nearby that would be impacted by noise and traffic.

Two adjacent parcels totaling more than 63 acres, one owned by Anthony and Raymond Szala of Hadley and the other by the Stanley Mitchell of Leverett, could be the subject of future deals if the town successfully develops the Patterson land.

<h4>Unique traits</h4>

Shaffer said the town has filed for a uniqueness determination under the state's Chapter 30B procurement law allowing the town to deal exclusively with Patterson.

"We're not concerned about being able to demonstrate the unique traits of this property," Shaffer said.

Access to the land is expected to be made from Sunderland Road, near two small duck ponds, though it may be possible to reconfigure Sunderland Road so that access instead comes from the Route 116 bypass.

Shaffer thanked Planning Director Jonathan Tucker, Assistant Town Manager John Musante, Department of Public Works Superintendent Guilford Mooring, and Conservation and Development Director David Ziomek for taking the lead in initiating this tax-based development.