EDIC Considers 2022 Budget, Projects, And Recruitment
The Falmouth EDIC December monthly meeting on Tuesday, December 14, was largely dominated by talk of budget, the technology park, and Falmouth Station as the board gets ready to begin a new fiscal year.
Executive director Wayne Lingafelter took to the lectern to present a short PowerPoint outlining the projected budget for the 2022 calendar year. Based on a select few budget assumptions and drivers, projected net income for the EDIC in 2022 is $88,296. Main sources of income include payments from the landfill solar array, retention of current tenancy at the Falmouth Station, and the projected sale of a parcel of land at Falmouth Technology Park. These, coupled with minimal projected expenditures and investments, would yield a projected base net income of over $240,000 before overhead and administrative costs are considered.
“The operation of the Falmouth Station, [as] you can see in the budget for 2022, has us in [just a little better than] a breakeven position, which I think is a positive step in terms of the overall operations of the station,” Mr. Lingafelter said.
In regard to the Falmouth Station, Mr. Lingafelter also said that the EDIC has been working toward reaching a lease extension agreement and business terms with chef John P. Marcellino and his wife, Marion, who rent a portion of the station to run The Station Grill. Mr. Lingafelter said that the lease agreement is still being drawn up and has yet to be signed, but the lease cycle will officially begin on January 1. Mr. Lingafelter said he feels this is the best thing for the station, and the board agreed.
“I’m glad to hear there are positive steps toward getting that wrapped up,” Mr. Feronti said. “It’ll be great to keep that going.”
The 2022 budget has also allocated expenditure money to the Falmouth Station for repairs and budgeted for minimal expenses on parcel two of the Falmouth Station property, which is currently being surveyed by Massachusetts Development for possible improvements in uses. The survey is being done by MassDev consultants and is being done under a $57,000 grant secured by the EDIC to look at possible revitalization of the property. The study is set to wrap up in January and will culminate with a final presentation of findings to both the EDIC and the public, which will act as a capstone to the project following the introductory stakeholder meeting that occurred in October. The EDIC’s application for funds to do brick repair and maintenance at the station has also been approved by the Community Preservation Committee, and the topic is now slated for a vote at the April 2022 Town Meeting.
A large part of the projected budget for 2022 relies on the reconfiguration and subsequent sale of parcel 21 at Falmouth Technology Park. The parcel, which is on the corner of Technology Park Drive and Research Road, is just under five acres and is made up of a mostly wooded area, a water tower, and a drainage easement that slopes toward Technology Park Drive. Mr. Lingafelter said that the plan is to carve out a portion of the parcel and sell it, but logistical issues like topography and accessibility may prove to be an obstacle.
The EDIC, which owns the parcel, needs to have discussions with the planning board, water department and department of public waste prior to readying this parcel for the market. Ideally, Mr. Lingafelter said, a 1.5-acre parcel would be created, which they could then sell. Mr. Lingafelter said he is having discussions with Michael B. McGrath of Holmes and McGrath land surveying to figure out the best avenue for making this reconfiguration and sale feasible. He also said that the EDIC has budgeted money for legal and engineering expenses incurred during the reconfiguration of the parcel. The EDIC’s current conundrum is figuring out how to enhance the value of the land for sale without taking a fiscal loss.
“I’m on board with it if it means it increases the value of the land, but I don’t want to spend $50,000 to recover $10,000 in the sale,” board clerk Thomas Feronti said.
When it comes to cash status, the EDIC’s savings have been depleted from $504,003 in 2019 to a projected $372,836 for 2022. Discussion of other possible ventures, such as the idea of establishing more solar arrays adjacent to the existing ones, prompted a cautious remark from Mr. Feronti, who expressed concern over ambitiously budgeting for potential expenses in the coming year.
“I think we need to be cognizant of the fact that we have a burn rate and that we have this one-time potential sale of a piece of land that starts to do some course correction here, but we are spending money faster than we’re bringing it in,” he said. “So while it would be great to look at this project as a potential source of income, we need to make sure that our expenses don’t take it too far now where we can’t recoup it in the future.”
In other business, the board continued its conversation regarding member recruitment, something that has been in discussion over the past few months. The board has received applications and is in the process of vetting candidates for the two open positions on the board.
The composition of the EDIC must meet certain criteria. At least one member should have experience in each of the following areas: industrial development, finance, real estate, municipal government, and as a representative of low-income people. The other two spots can be anyone with either a combination of those skills or a new skill set entirely. Following the departure of Christopher Simmler in October, the board is placing a specific focus on diversifying its membership, in terms of both identities and specialized skill sets.
The board said it will continue to work with interested applicants and further interview them before bringing candidates before the select board early next year. Mr. Feronti recognized that this is a tough time of year to be recruiting new members but commended the efforts of his fellow board members in recommending and vetting candidates.
“I do think this is something that we need to focus on,” he said. “I’m sure Lynne [Broderick, EDIC administrator] can attest that only having the minimum number of people right now is making it hard to schedule the meetings, so hopefully we can do a full-court press here at the beginning of the year to try and recruit some new folks.”