The special town counsel for Westwood Station told selectmen Monday night that under an amended development agreement with Cabot, Cabot & Forbes, the town will be paid $1 million for fiscal 2010 - $500,000 less than had been expected.
Attorney Dan Bailey said the two sides have been negotiating for some time an agreement that would reflect "current economic conditions." For the time being, no work is being done on the 4.5-million-square-foot Westwood Station project on University Avenue as the developer tries to find a construction loan.
Under the amended arrangement, finalized last week, another $500,000 would be paid to Westwood when the developer finds construction financing, "whether that occurs sometime in fiscal year 2010 or later," Bailey said.
In addition, while the developer has picked up most of the town's costs for Bailey and other consultants, in the future the developer and town will split Bailey's legal fees.
Bailey also said the two sides have decided there will be no further development payments to the town after fiscal '10 "until vertical construction commences."
Selectman Nancy Hyde said, of the $1 million slated to be paid to the town in fiscal '10, a portion would actually come in at the end of this fiscal year.
"I think based on this resolution that's been reached, we're looking at $800,000 of revenue from Westwood Station being available for the fiscal '10 budget, and $200,000 coming in this year will cover the expenses that the town will now have to carry, no longer being reimbursed by the developer," Hyde said.
And, after subtracting the town's project-related costs for fiscal '10, Westwood will receive a net of $600,000 from Cabot, Cabot & Forbes next year, said Town Administrator Michael Jaillet.
Selectman Philip Shapiro said it means the town will receive $900,000 less than projections when his board planned on a level-funded budgets for municipal departments and schools in fiscal '10.
Still, "We should be fine with a zero-percent increase in the operational budgets going into next year," Jaillet said.
One reason, he said, is Westwood's state aid for 2010 was not cut as deeply as expected. Under the budget proposed by the governor - which still could be changed by the Legislature - the town's state aid was reduced by $258,238. Finance Director Pamela Dukeman had planned for a cut of $1,039,172 - tentatively leaving the town with $780,934 more to work with.
In addition, Jaillet said, some town positions have gone unfilled. Also, three staffers whose work focused on Westwood Station will be directed to work on other projects.
Also Monday night, selectmen approved a motion by Shapiro requiring "a schedule and timing on all capital expenditures" for town departments and schools next year. Such spending must be approved Board of Selectmen. Shapiro said he wanted to give selectmen flexibility. He suggested that capital spending be spread evenly throughout the year.
Edward B. Colby can be reached at 781-433-8336 or ecolby@cnc.com.
