Finance Committee Meeting - June 11, 2025

The New Bedford Finance Committee met on Wednesday, June 11, 2025, at 7:00 PM in City Council Chambers. Chair Linda Morrad presided, joined by Councillors Abreu, Giesta, Shoket, Kane, Burgo, and later Baptiste and Oliver. Three main agenda items were discussed: a proposed ground lease for airport hangar development, rescission of $118.9 million in authorized unissued debt, and reconsideration of a CPA-funded rowing dock project on the Acushnet River. All items were ultimately referred to the full City Council for approval.

Consent Calendar

• Three letters of absence were received and placed on file: Councillor Baptiste (prior commitment), Councillor Gomes (prior commitment), and Councillor Lopes (work-related commitment).
• Two supplementary communications were received and filed; a third late communication was promised for distribution.

Public Comments & Testimony

• No formal public comment period was held, but during the CPA dock discussion, Councillor Burgo referenced a letter of opposition signed by multiple individuals from Roe New Bedford, expressing support for the dock but raising concerns about transparency and location selection. The sole opposition speaker at prior meetings was acknowledged as representing a broader community.

Discussion Items

1. Airport Lease Agreement (Items 1, 1A, 1B)

• Scott Servis, Airport Director, presented a proposed 50-year ground lease (5-year primary term, nine 5-year renewals) with the Trustees of the 5 Hangar Trust to construct a new hangar building at New Bedford Regional Airport. The lease covers 28,160 square feet at $0.32 per square foot (based on a 2020 appraisal), resulting in annual rent of $9,011.20.
• To incentivize development, the lease includes an abatement: 90% reduction for the first nine months, then 70% reduction for the next nine months (total 18 months), after which full rent resumes regardless of construction status. Councillors questioned the revenue loss and the airport's financial sustainability; Servis argued the promotion of long-term development and fuel sales justifies the short-term abatement.
• A discrepancy was noted on the signature page (page 46) naming FMV Associates LLC, which was not referenced elsewhere in the lease. Chair Morrad expressed discomfort and requested documentation linking the LLC to the trust, with assurances that information would be provided before the June 26 council meeting.

2. Rescission of Authorized Unissued Debt (Items 2, 2A)

• Treasurer John Taxiarchos and CFO Robert Ekstrom presented an order to rescind $118,876,793 in authorized but unissued debt, dating back to 1990. The action aims to clean up city books and improve financial management ratings.
• Councillors inquired about safeguards to prevent future accumulation of unused debt authorizations. Ekstrom stated that the administration will conduct annual or biannual reviews with departments and rescind unused authorizations proactively. The current mess was attributed to past poor bookkeeping and lack of process, with projects often over-authorized to account for federal reimbursements (e.g., FAA, MassDOT).

3. CPA Project Reconsideration: Acushnet River Rowing Center Dock (Item 3)

• Janine da Silva (CPC Chair), Jessica Bailey (CPA Manager), and Mary Rapoza (Parks Director) presented a $200,000+ project (approximate, exact figure not stated) for a 200-foot public dock at the Aerovox site on the upper Acushnet River. The project was referred back from the City Council due to concerns about process and transparency.
• Rapoza detailed the history: two public meetings (March 2023 and March 2024) with over 40 attendees each, formation of an advisory committee of six local rowing organizations (New Bedford Rowing Center, Azorean Maritime Heritage, Whaling City Rowing, etc.), and evaluation of three sites (Aerovox, Sawyer Street, Market Basket). The Aerovox site was selected based on expert advice from dock engineers due to its low shoreline grade, immediate availability, and parking. Sawyer Street was deemed unsuitable due to high bulkhead and ongoing EPA involvement.
• Councillors expressed disappointment over lack of invitation to ward councillors and failure to include Roe New Bedford (formed after the advisory committee was established) or document deliberations with meeting minutes or scoring systems. Rapoza confirmed no formal minutes were taken for advisory meetings. Councillors stressed that while they support the dock, future projects must ensure an open, inclusive process with recorded decisions.
• Chair Morrad noted a reported incident where Roe New Bedford was asked to remove equipment from Pope's Island, warning against perceived targeting of dissenting groups.

Key Outcomes

• Airport Lease: Motion to receive, place on file, and refer to full City Council for approval (motion by Councillor Burgo, second by Councillor Abreu). Approved unanimously. Additional documentation on FMV Associates LLC requested by June 26.
• Debt Rescission: Motion to receive, place on file, and refer the order to full City Council for approval (motion by Councillor Abreu, second by Councillor Giesta). Approved unanimously.
• CPA Rowing Dock: Motion to accept the Community Preservation Committee's recommendation and refer to full City Council for approval (motion by Councillor Kane, second by Councillor Giesta). Approved unanimously. Councillors noted their support for the project but emphasized need for improved transparency in future projects.

The meeting adjourned at 8:06 PM.