LYNN — City officials appeared before the Public Property and Parks subcommittee Tuesday evening to discuss possible uses of two properties that the city could take through a rarely used tool — eminent domain.
Eminent domain is a government power to take private property for public use. The Fifth Amendment states that the government may only take the property if just compensation is provided to the property owners.
Fire Chief Stephen Archer, Director of Elder Services Christopher Gomez, Chief of Inspectional Services Michael Donovan, and Public Health Director Michele Desmarais met before the City Council subcommittee to discuss using eminent domain to take two buildings — the former Century Bank building at 2 State St. and a building owned by ElementCare at 37 Friend St.
One of the suggested uses for these buildings include moving the health department, which is currently located on the second and fourth floor of City Hall, to one of the properties. Desmarais told the council that more space would be helpful in order to provide clinics for patients and education spaces to learn about public health.
“The extra space will help provide accessibility for more people to get shots,” she said. “We have extra staff in room 206 and 401.”
Another possible use of the buildings would be as the site for a senior center — a long-term agenda item for the city. Gomez said the taking of the Friend Street property would be beneficial for seniors and would serve as an ideal site for the project.
“Every major city has a senior center and we haven’t had one in years,” Gomez said. “We think it’s time we do right by our seniors.”
Superintendent of Schools Dr. Patrick Tutwiler was scheduled to appear before the committee that evening but could not due to scheduling. Instead, he sent a letter reading that he supports the taking and that Lynn Public Schools would benefit from the space — namely in supporting pre-kindergarten space needs.
“Should the city move forward with this plan, it would create several much-needed opportunities to create additional pre-kindergarten classrooms as a result,” Tutwiler wrote.
This discussion comes on the heels of an initial vote last month by the City Council to appropriate bonds to prepare to acquire the two buildings at the request of Lynn’s Chief Financial Officer Michael Bertino.
Bertino said the city has not decided if they will proceed with the taking and it has not bought either property, but at least one of the sellers — Eastern Bank — was taken by surprise by the city’s move.
“I was very surprised that this was described as ‘a friendly taking.’ It hasn’t been at all,” said Eastern Bank Chief Executive Officer Bob Rivers. “To me it’s just unfortunate — the whole thing is unfortunate. We’ve had a great relationship with the City of Lynn for years and I’m really disappointed we’re being treated this way.”
Rivers’ remarks seem to be at odds with Bertino’s characterization of the proposed taking at the Jan. 25 City Council meeting.
“We would not be in competition with other bidders,” he said. “This is a property for sale — it would be a friendly taking so to speak.”
He then said, “We did have an appraisal done. So the appraisal came back at $1.5 (million), which is almost the same value as the assessed value.”
In response to questions raised by Councilor-at-Large Brian LaPierre on Jan. 25 about whether $1.5 million would be sufficient to acquire the State Street property, Bertino said, “whatever the appraisal comes in, that is what we are allowed to pay.”
Bertino’s comments are in contrast to assertions made by Eastern Bank in a letter to Mayor Jared Nicholson and the City Council dated Jan. 12.
“Eastern Bank understands that the city can confiscate private property for a public purpose by eminent domain if it pays the fair market value for that property,” Eastern Bank said in a statement. “However, it is a common occurrence, as in this case, that there is a significant disparity between the city’s appraisal on which it acts and the actual fair market value that the city must eventually pay.”
The city’s tax assessment of the State Street property is currently $1.7 million, meaning that the suggested price is less than the assessment. In contrast, the city is proposing to acquire the Friend Street property for $3.1 million versus a $2.3-million, tax-assessed value.
Sources indicate that ElementCare had reached a preliminary agreement to sell the Friend Street parcel for $3.1 million to a developer, but the city proposes to stop that sale with the prospect of eminent domain.
The apparent inconsistency between the city’s approach to the two properties has drawn the attention of local real-estate investors.
“I have been in and around the real-estate market in Lynn for decades and I can’t recall eminent domain being used this way,” one source said. “Particularly against one of the top-five employers in the city.”
Bertino said he does not recall the last time the city used eminent domain.
Eastern Bank, which acquired the State Street site as part of a merger with Century Bank in November, warned Nicholson and the City Council that if the city proceeds with using eminent domain to take the property, the bank would seek damages due to a pending sale with an unaffiliated bona-fide buyer, and eminent domain would force the company to sell the property to the city for the city’s appraised value rather than the fair market value.
“Please be advised that the bank is currently under a signed contract to sell the 2 State St. property for more than $1 million in excess of the city’s “taking” appraisal,” Eastern Bank wrote. “So if there is a taking, the bank will have to pursue damages well over the city’s appraisal amount.”
Bertino said if the city decides to go forward with using eminent domain, the City Council will hold public hearings and meetings as part of the process and eventually vote for the taking.
“What the City Council did on Jan. 25 was approve bonds for funds in case we decide to move forward on the taking, but that has not been discussed yet,” Bertino said. “We might even decide that it’s not in the city’s best interest but the bonds were approved in case we do decide.
