Author: Kristin Taylor

On Monday, November 11, 2024, repair and pavement work will begin to roadways that had underground utility work completed earlier this year.

These streets include Wilson Road, Parrot Road, Fallon Way, Linda Lane, Emerald Road, Pond Street (between Valley Road and Emerald Road), Ward Road, Fox Hill Road, and lower Castle Road

There will be no parking allowed in these areas starting Monday through Friday until the work is completed between 6:30 AM to 5:00 PM 

Thank you in advance for your cooperation.

November 1, 2024 

Nahant, MA- On Wednesday, October 30, 2024 at a Board of Selectmen meeting, the Board unanimously voted in favor of requesting special legislation to extend the term length of the borrowing used to purchase the Coast Guard Housing property. The borrowing, originally executed in 2004 for ten years, extended for another ten years by way of special legislation in 2015, has a balance of $1,866,000 due on January 10, 2025.   

As of today, a total of $1,403,000 in accepted offers has been received.  Therefore, there is a good chance that the extended borrowing may not be needed, particularly since 3 lots go to bid next week.  However, extension of the borrowing is a low-cost and prudent backup plan in the event the full $1,866,000 is not received by January 10, 2025. 

The Town listed 6 of the 12 lots for sale in August. Lot 1 has been sold and the Town is scheduled to close on Lot 3 by Tuesday, November 5, 2024. On Friday, November 1, 2024, the Town received a qualifying offer of $450,000.  In addition, lots 9, 5, and 11 have been relisted to accept bids on Wednesday, November 6th, Thursday, November 7th, and Friday, November 8th, respectively, all at 12:30pm.  

The Board of Selectmen and Town Administrator stated at Wednesday’s Board of Selectmen meeting that the Town remains committed to executing the direction set forth by the approved Town Meeting Article. The request for special legislation is not an attempt to change course.  

Why is the Town seeking special legislation to extend the term of the loan?  

It is expected that the real estate market could slow down around the holidays. The Town’s plan is to issue another RFP that lists all remaining lots for sale in January or February. The special legislation is an effort to eliminate the risk of not being able to pay off the loan by January 10, 2025. Keep in mind that it is possible that the Town will not need this legislation depending on the results of the sale process next week. However, with the legislative session ending in two months, and due to the lack of activity with recent sales, the Board of Selectmen and Town Administrator chose to send this request as soon as possible. 

Are there other options for the Town to consider? 

Yes. At the Board of Selectmen meeting on Wednesday night, the Board of Selectmen and Town Administrator explained a number of options that were and continue to be under consideration. A recording of this meeting is available in the Board of Selectmen’s Video Meeting Archive on Nahant.org or by clicking here.  

• A Special Town Meeting could be called prior to January 10th to ask the voters to authorize borrowing or spending from available funds to be used to pay off the remaining balance of the borrowing. This remains an option for the Town to consider; however, it can be revisited following the bid process next week.  
• The Town could use current fiscal year available revenues to cover the cost of the remaining balance due in January. This also remains an option for the Town to consider; however, it can be revisited following the bid process next week. Notably, should the Town pursue this option, the risk of not selling enough lots to refund the amount used from available funds by the end of the fiscal year could put the Town in a fiscal deficit.  
• In combination with the above option, the Town could seek authorization at Annual Town Meeting in May of 2025 to transfer available funds from the Stabilization account in the current fiscal year for the amount used from available funds to cover the remaining loan principal balance in January.   
• The Town could bond for the remaining balance due in January. A bond is a form of long-term borrowing that must be paid in accordance to its debt schedule, including principal and interest payments. It is unknown at this time what those costs would total. It should be noted that the Town will not be able to pay down the bond prior to maturity.  Reduce the price of the lots and attempt to sell the remaining lots of the current RFP prior to January 10, 2025. The Board of Selectmen and Town Administrator are not considering this option. First, the Town intends to get the best value for these properties. A certified real estate appraiser as well as our listing agent have confirmed the values of the current listings through multiple reviews of the current local real estate market. Second, to change the value of the lots would require a procurement process that would push the schedule of listings into the holiday season which tends to have less possible buyers. Third, lowering the value of the lots could risk litigation with the buyers of lots that have already sold.   
• Request special legislation to extend the term of the current borrowing beyond January 10, 2025. This option is time sensitive because of the legislature’s schedule ending in December. Extending the term length is not authorization to borrow additional funds. While it does come with annual interest payments, the interest rate is less than that of a bond. Also, as soon as the Town sells enough property resulting in revenue equal to the remaining balance of the loan, the Town will pay off the debt. This could occur prior to the first interest payment being due. Bond Counsel recommends an extension of 10 years to be consistent with prior borrowing terms 

What happens after the remaining balance of the loan is paid?  Once the original debt for the purchase of the property is paid off, the Town will continue to sell the remaining properties as directed by the Town Meeting Article. Additionally, Town Meeting authorized two separate borrowings for the costs associated with carrying out this process. Those borrowing authorizations are for a total of $1,300,000. Every dollar earned from the sale of the remaining lots will be used to pay this debt. If there are additional funds received after paying the debts related to the sale of these properties, they will become part of the Town’s Free Cash and can be appropriated at a future Town Meeting.