Walmart fees delay may cost Saugus

SAUGUS – Town Manager Scott Crabtree said a delay in receiving permit fees for the Route 1 Walmart project could mean a big increase in the town?s already sizable 2012 fiscal year deficit.Crabtree said $250,000 in building permit fees were built into this year?s budget. However, if property manager WS Development doesn?t close on the property before June 30 – the end of the fiscal year – that money would be taken out of the budget, causing the deficit to balloon to around $1 million.?I?ve been told that they?re supposed to close by the end of the month,” said Crabtree. “At that point, Walmart would come to the town and apply for building permits, and submit the fees. It was budgeted as a receivable at the beginning of the year. From a financial standpoint and budget-wise, we?re hoping that it happens sooner rather than later.”Crabtree said if the town doesn?t receive them, it would have a negative impact on the deficit and on free cash.?It?s more of a deficit we would have to raise in FY13,” said Crabtree. “We?d have to make reductions to be able to offset the deficit in FY12. It has an impact on your free cash in the fall when it?s realized in FY13.”Crabtree said 12 employees have been laid off or had their hours reduced during the last two weeks due to deficits from reclassifying town employees back into the general fund. He also noted that there?s the possibility of having “negative free cash” in the fall.?You?re moving into FY13 and you?re in the same position as far as having to anticipate that we would receive those monies,” said Crabtree. “We didn?t actually balance the budget for FY12 regarding that receivable if we don?t receive it by June 30.”?We?re looking at the deficit to try and do what we can prudently to minimize it and that?s why we?ve made these reductions and layoffs unfortunately,” added Crabtree.Caleb Perrin, project manager for WS Development, said his firm will be purchasing the property from current owners Northbound LLC and said closing the deal is “imminent.”?We?re working with the present landowners to close on the land, but an exact date I?m not sure,” said Perrin. “Because we have worked to get all the permits from the state and the town, Walmart can start right away as soon as we close.”Perrin said construction could begin in “late summer or early fall.”?All that is left is for us to close on the land and for Walmart to start the building permit process with the town,” said Perrin. “We are purchasing the land and then Walmart will be our tenant.”The current permits obtained by WS Development are for the building footprint, layout and traffic circulation, said Perrin. The actual building details would be up to the engineers and architects for Walmart, he added.?They would need to go to the town for building permits,” said Perrin.Perrin said he didn?t have an exact open date, but estimated the project would take 12 to 15 months to complete.Perrin speculated the store may be ready to open by the late summer of next year. “That?s just an educated guess,” he said. “We?re very excited for them to get started.”Matt Tempesta can be reached at [email protected].