May 28, 2009
By David Liscio/The Daily Item
The Lynn Economic Development and Industrial Corp.(EDIC) on Wednesday inked a landmark agreement with National Grid that officials say marks in earnest the start of a project that will remove electrical transmission towers from the ocean side of the Lynnway and make the area an attractive development site.
The deal was finalized less than 24 hours after it appeared in jeopardy when city councilors voted Tuesday against affixing Mayor Edward J. Clancy Jr.'s signature to the contract without first learning more details.
Tuesday night's snafu at City Hall stemmed from a council order submitted by City Solicitor Michael Barry, requesting that the councilors vote to authorize the inclusion of Clancy's signature on the contract. Although most councilors were unaware of Barry's actions, the EDIC sent staff member William Bochnak to the council meeting to explain that the contract deadline was May 27. Not authorizing the mayor's signature could jeopardize the contract as well as the $2.5 million in state grant monies already earmarked toward it, part of a $4 million bond debt the city is poised to assume, Bochnak said.
With little forewarning and no written information in hand, the councilors Tuesday voted to table the Law Department request. Throughout Wednesday, EDIC Executive Director James Cowdell, city officials and representatives from National Grid worked to hammer out the contract provisions so that the contract could be signed and the state funding secured, still leaving enough time to spend the $2.5 million before June 30 - the end of Fiscal 2009.
According to Cowdell, the state funds must be used before the start of the upcoming fiscal year. National Grid has already provided the city with engineering and legal services for the power line project and is set to purchase approximately $1 million in materials for constructing new steel towers on the opposite side of the Lynnway, he said.
Barry said National Grid apprised him of the preference for the mayor's signature on the contract at 1 p.m. Tuesday. An hour later, Assistant City Solicitor James Lamanna emailed the newly drafted council order to the executive secretary in the city council office. In the email, Lamanna asked that the matter be included on the council's meeting agenda for an emergency vote.
As Lamanna put it Tuesday, "We are nearing the finish line with a deadline of tomorrow to execute this agreement. Last week, Grid's attorneys asked that someone from Lynn sign off the bond money that will be used in part for the project. Up until that time, Lynn wasn't going to be a party to the contract. The agreement itself is subject to the review of this department and a decision by the mayor and (chief financial officer) that the agreement is legal."
Barry said he did not attend the council meeting because he considered the request procedural, but in hindsight, acknowledged that the council vote to table was understandable.
"That's the last thing I'd want put in front of me at the last minute. The problem was created by National Grid. It wasn't until 1 p.m. that National Grid informed us about requiring the mayor's signature. They wanted me to certify as to his authority to sign the contract and I couldn't do that without a council vote," Barry explained. "Frankly, if the finger is pointed, it should be at National Grid. This is something they raised at the last minute and we reacted as quickly as we could."
Barry said six of seven major contract issues had been resolved by Wednesday afternoon and the final sticking point - related to title insurance on one of the land parcels - was being worked out.
"It's complicated and doesn't mean anything to anyone other than people like me who have to protect the city's liability," he said. "It's a very lengthy contract and it's just being completed today. We couldn't provide the contract to the council Tuesday night because it wasn't completed."
The contract between the EDIC and National Grid was signed by the mayor as well, but the signature must still be authorized by the council next week, Barry said. The project cost has been estimated at $5-7 million.
"It's signed. The perfect storm is over," said Clancy. "The state has always been a supporter of the project, but they were insistent that we spend that money within the fiscal year. But the city couldn't do that until there was a formal agreement with National Grid and at the 11th hour National Grid came up with an additional requirement of my signature. The city solicitor wisely reiterated our position, so the contract is a middle-of-the-road settlement. We are protected as well as we can be and we can now assure the state of that." |
