The Plymouth Board of Works is open to negotiating its share of the sale price of a land development.
Nearly a decade ago, the city agreed to partner with Vanco Development on a tech farm near U.S. 30 and Pioneer Drive, with the understanding that they would split the proceeds 50-50 when the land was sold. But with a sale now imminent, the company’s asking the Plymouth Board of Works to reduce the city’s share. “What we’re proposing is that the split be at $166,000 for us and $83,000 through the board of works for the [City Monetary] Gift Fund, minus commissions and customary closing costs,” Vanco representative Dave Miller told the board Monday.
The arrangement would allow the company to see the return on investment it originally hoped for. Miller says they had planned to sell the property for nearly $333,000. “I think the project was done in 2010, and nobody’s buying property, nobody’s putting up buildings,” he explained. “There were plenty of buildings on the market if somebody wanted a building that they could get for cheap because of the recession.”
Now, he says they’ve settled for an offer of $250,000. He noted that’s all Vanco will get out of its investment, while the city would see ongoing tax revenue.
Board member Mike Delp responded that he had a hard time buying into that logic, saying the company knew that would be the case when it entered the partnership. Member Jeff Houin added that Vanco Development is in the business of taking risks. “In my mind, it seems fair that just as the sale profits are split equally, that loss should be split equally,” Houin said. “You take the risk because of the business you’re in. And what you’re essentially asking us to do is reimburse you for not realizing the full gain that you expected or hoped for at the outset, and I have a hard time justifying why we would do that.”
However, the board of works wasn’t ready to fully close the door on an updated agreement. City Attorney Sean Surrisi suggested Vanco consider taking on the expense of improving drainage in the area, something the city’s redevelopment commission would like to do but currently lacks the funds. Vanco officials and members of the board of works say they might be interested in working out a deal involving that work. The Plymouth Board of Works voted to table the proposal for additional discussion.
