LYNN — The city paid the owners $2.7 million for the former Century Bank building, $1 million more than the City Council had originally approved.
The city became the legal owner of the property located at 2 State St. on April 14 when it recorded the order of taking at the Salem Registry of Deeds, said City Solicitor George Markopoulos.
“During this time, the city has been in constant contact with Eastern Bank and we came to a full and final settlement that the city would pay Eastern Bank $2.7 million,” said Markopoulos Thursday. “That money, in fact, was paid today to Eastern Bank.
The Lynn Fire Department, School Department, Public Health Department, and Inspectional Services Department had made formal requests in February that the City of Lynn take by eminent domain — for municipal purposes — the property owned by Eastern Bank, according to an official correspondence between Mayor Jared Nicholson and City Council President John “Jay” Walsh.
The City Council voted unanimously on April 12 to authorize the taking. Previously in a presentation to councilors, city Chief Financial Officer Michael Bertino characterized $1.5 million as a fair offer for the building.
The Council authorized the issuance of $1.5 million in bonds to pay for it.
The final negotiated price turned out to be $1.2 million higher, reflecting the arm’s length offer Eastern Bank had from PNC Bank for the property.
Bertino said the difference will be covered by a $1.2 million appropriation from free cash.
“I’m pleased that we have reached a positive resolution in a timely manner and grateful to everyone involved for helping us to move forward to address important space needs for the city,” said Nicholson. “I’m grateful to the City Council for approving the funding Tuesday. We are in a strong financial position to make these kinds of one-time investments, thanks to the city’s fiscal discipline.”
Eastern Bank is an important and valued partner, Nicholson said, and the city looks forward to continuing to work with the company as it serves residents and businesses and collaborates with the city to improve Lynn’s community.
“We wanted to be fair, even though we were taking the property,” said Walsh. “When this one became available, and we realized it was going to fit some of the needs of the city, we knew that we would pay what is considered fair-market value.”
Councilor-at-Large Brian Field agreed that the City Council was expecting to pay a fair-market value for the State Street property.
“There was going to be a negotiation involved in all properties, likely,” said Field. “Obviously, both sides have come to an agreement so I’m glad everything worked out.”
“Given what it would take us to acquire the land and build out a building like that, it would cost us far more than the amount of money that we ultimately paid,” added Ward 2 Councilor Rick Starbard.
The need for municipal space outweighed the cost, and the building is going to serve the community well, regardless of what department will ultimately end up using it, noted Councilor-at-Large Brian LaPierre.
“I don’t think that we were just going to take that property at a discount. With the taking, you must offer a fair-market value for the transaction to go through,” said LaPierre.
The city has been very frugal and prudent in past years, LaPierre said, and had the money available in its reserves to cover the higher price.
“Before the vote, I really studied thoroughly the possibilities and what are the pros and cons,” said Ward 3 Councilor Constantino “Coco” Alinsug. “In the long run, we voted for something that is beneficial for the city in general. We are investing for the future.”
