City Property Committee Meeting - July 30, 2025 - Discussion of RFP Clawback Delays for Fire Stations and Police Station
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City Property Committee Meeting - July 30, 2025
The City Property Committee met on Wednesday, July 30, 2025, at 7:00 PM in Council Chambers at New Bedford City Hall. The meeting was live-streamed and recorded. Chairperson (Councillor Carney) presided, joined by Councillors Morad, Pereira, Gomes, Lopes, and later Baptiste. The sole agenda item was a written motion requesting the City Solicitor to explain delays in Purchase and Sale Agreements (P&S) for three properties awarded via RFP: Fire Station #3 (834 Kempton Street), Fire Station #11 (754 Brock Avenue), and Police Station #2 (170 Cove Street). The meeting concluded at 7:33 PM.
Consent Calendar
- A letter from Councillor Choquett excusing his absence due to a prior work commitment was read into the record and placed on file (motion by Lopes, second by Carney; all ayes).
- A communication from Councillor Abreu excusing his absence due to a personal issue was read and placed on file (motion by Lopes, second by Pereira; all ayes).
- The written motion for the agenda item was received and placed on file (motion by Carney, second by Burgo; all ayes).
Discussion Items
- Background on Clawback/Reverter Clause: Councillor Carney explained that the RFP for the two fire stations and the police station included a reverter (clawback) clause, which allows the city to take back the property if certain conditions are not met. She noted that the developers for the fire stations (Gwozdz Development, Inc., South Coast Investments, Inc., and Historic Built) are using conventional bank financing (no tax credits or HDIP money) and would start paying taxes immediately. The clause has been a barrier for over 8-10 months.
- Solicitor Eric Jaikes' Testimony: Jaikes stated that the RFP's clawback language (detailed on pages 9-10) must appear in the deed. Banks providing financing for the fire stations found the clawback insurmountable because if the city exercises the clawback, the bank's sole recourse is against the LLC, which is unacceptable. A proposed subordination agreement also failed to resolve the issue. He recommended rebidding the fire stations with a revised RFP requiring financing be fully in place by a specific date, with the city retaining the right to terminate if not met.
- Councillor Pereira's Questions: Pereira asked about the process to unaward the bid. Jaikes suggested the awardees could formally withdraw or the council could default them. He preferred a voluntary withdrawal letter. Attorney David Gerwatowski advised that the committee could directly instruct the purchasing department to reissue the RFP with the clawback removed, but noted that rebidding would reveal previous bid amounts to new bidders.
- Councillor Morad's Suggestion: Morad proposed exploring a memorandum of understanding between the city and the bank to protect the bank's collateral without removing the clawback. Jaikes and Gerwatowski acknowledged this might be possible but noted it would require further exploration and bank agreement.
- Attorney Sarah O'Leary's Testimony: O'Leary, representing the fire station developers, stated that after months of trying, no lender or title insurer would accept the reverter language. She verbally indicated that her clients release their rights under the awarded bids to move the process forward.
- Police Station #2: Councillor Pereira noted that he spoke with the awardee for Police Station #2, who is comfortable with the reverter clause as written.
Key Outcomes
- Fire Station #3 and #11: Councillor Pereira moved to issue a new RFP for both fire stations with the reverter clause removed, except for a P&S clause regarding securing financing, contingent upon the awardees' formal withdrawal of bids, and to expedite the process. The motion was seconded by Councillor Gomes and passed unanimously (all ayes).
- Police Station #2: Councillor Morad moved to take no further action on the RFP and to instruct the City Solicitor to immediately complete the P&S for the awardee. The motion was seconded by Councillor Lopes and passed unanimously (all ayes).
- Next Steps: The committee adjourned at 7:33 PM.
Meeting Transcript
Testing one, two, three. Okay. We are going to sound like a plan. Okay, yeah. Good evening, everyone. Welcome to the committee on city property. It is July 30th at 7 p.m. This meeting is being live streamed and recorded. City Council and Committee meetings can be viewed on the City of New Bedford's homepage under quick links, then meetings. I am here this evening joined by my colleagues in government. Council at large and first Vice President Naomi Carney, Council at Large Linda Morad, Ward 6, City Councillor Ryan Pereira, Councilor at Large, Brian Gomes, and Councillor Ward 5, Joseph Lopes. Do we have anything that needs to be read into the record? We have one letter to read into the record from Councillor Choquett. I am writing this letter to inform you that I will be unable to attend the Committee on City Property Meeting on Wednesday, July 30th, 2025 at 7 p.m. due to a prior work commitment. I ask that you read this letter into the record to make my colleagues and the public aware of the reason for my absence. Motion to receive and place on file. Second. Made by Councillor Loeb, second by Councillor Carney. All in favor say aye. Aye. All opposed, the ayes have it. Madam Chairperson, we also received a communication from Councillor Abrau that he was not going to be able to make this evening's meeting due to a uh personal uh issue. Motion to receive in place on file. So move made by Councillor Lopes, seconded by Councillor Pereira. All in favor say aye. Aye. All opposed, the ayes have it. Councilor Carney. Yes. Would you like to I see the solicitor? Did you read everybody? Yeah. Sorry. I'm trying to move this along. Okay, don't worry about it. That's right. I want to move it along too. We should uh uh written motion, Councillors Carney, Abrew, and Giesta requesting that the city solicitor Eric Jakes appear before the Committee on City Property to explain the delay uh with the purchase and sale agreement which was awarded to Gavards. I apologize for that. Uh Development Incorporated, uh South Coast Investment Incorporated and Historic Bill for Fire Station No. Three, uh located at 834 Kempton Street, Fire Station No. 11, located at 754 Brock Avenue, and police station number two, located at 170 Cold Street. It was referred here on the 17th of July 2025 and is now before you. Motion to receive and place on file. Made by Councillor Carney, seconded by Councillor Burgo. All in favor say aye. Aye. All opposed, the ayes have it. On the question.
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