December 18 2014

Gutierrez Company to Pay Off 15-Year Commitment to Town in One Payment

By: Rich Hosford

The Town of Burlington and the real estate development company Gutierrez have a new arrangement to pay off the Grandview Farm bond. 

 

At last Monday’s Board of Selectmen meeting Town Administrator John Petrin told the board that the Gutierrez Company was looking to change the terms of a Land Development Agreement it entered into with the town about five years ago. During a land swap involving Gutierrez’s property on Wall Street, the company agreed to pay the town $75,000 per year for 20 years to finance the Grandview Farm renovation. That agreement was negotiated by then Town Administrator Robert Mercier. 

 

Petrin told this board this week that Gutierrez has sold the property on Wall Street and was looking to pay off the commitment with a one-time payment. Petrin said he talked to the town’s financial team and they determined that if Gutierrez paid $950,000 the town could invest it and use the sum and the interest to make the yearly bond payments. 

 

In total this allows Gutierrez to pay $175,000 less than it would over the next 15 years, but it will now give the town all the money at once. Petrin said this protects the town in the event that the company was to go out of business. 

 

The town can’t pay off the bond all at once, Petrin said, due to its structure. Instead Burlington will invest the money in very low-risk, stable, investments and use it to make the $75,000 yearly payments. 

 
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