Swampscott Select Board Meeting Analysis: December 7, 2022

This document provides a summary and analysis of the Swampscott Select Board meeting held on December 7, 2022, intended for Town Meeting members and voters.

Section 1: Agenda

Based on the transcript, the likely agenda for the meeting was as follows:

Call to Order & Public Comment 0:00:12
Recognition of Service: Tom Ruskin and Monica Tambourine (Conservation Commission) 0:02:10
Update on License Renewals 0:08:13
- Retail Liquor Licenses (incl. compliance, quotas, BYOB policy)
- Common Victualer Licenses
- Entertainment Licenses
- Class 2 Used Car Licenses (incl. compliance/parking issues)
Joint Public Hearing with Finance Committee & Board of Assessors: Tax Classification 1:16:53
- Presentation of Tax Levy Impact Scenarios (Tax Shift Options)
- Discussion of Residential Exemption Option
- Discussion of Small Commercial Exemption Option
Select Board Action on Tax Classification Options (following hearing closure 2:16:32)
- Vote on Tax Shift (Residential Factor / CIP Shift)
- Vote on Residential Exemption
- Vote on Small Commercial Exemption
Consideration and Vote: Deed Acceptance & Use and Occupancy Agreement for 149-169 Humphrey Street (Athena’s/Hawthorne Property) 2:39:06
Consent Agenda: Approval of Minutes (November 30, 2022) 2:42:59
Town Administrator’s Report 2:43:13
Select Board Time / Member Updates 2:47:37
Adjournment 2:52:25

Section 2: Speaking Attendees

Based on the transcript and contextual knowledge of Swampscott Town Government:

Neal Duffy (Select Board Chair Pro Tempore): [Speaker 5] (Opened meeting, managed flow, provided email, led votes)
Tony Abrandowitz (Conservation Commission Chair): [Speaker 12] (Introduced self, accepted awards)
MaryEllen Fletcher (Select Board Member): [Speaker 7] (Asked questions, participated in discussions, mentioned liaison role to Assessors)
Peter Spellios (Select Board Member): [Speaker 1] (Asked detailed questions on licensing, zoning, tax math/policy, Hawthorne logistics; referenced 8 years on board)
Sean Fitzgerald (Town Administrator): [Speaker 3] (Provided context, reported Town Counsel advice, gave TA report, discussed policy implications)
Ruben Quesada (Police Chief): [Speaker 11] (Introduced license renewal section, discussed used car parking enforcement plan)
Angelica Noble (Town Staff - Licensing/Admin): [Speaker 2] (Presented detailed license renewal information, answered questions)
Sgt. Jay Locke (Swampscott Police Department): [Speaker 6] (Explained license compliance checks, used car inspections/parking issues)
David Grishman (Select Board Member): [Speaker 9] (Asked questions on licenses/parking, made motions, discussed tax shift impact, shop local)
Katie Phelan (Select Board Member): [Speaker 10] (Asked questions, raised C&L tabling, requested signing deed as “Catherine”)
Marzie Galazka (Staff - Community Dev/Planning): [Speaker 13] (Provided info on C&L, Paradise Auto expansion; likely Director of Community & Economic Development or similar role)
Patrick Luddy (Town Accountant/Finance Director): [Speaker 8] (Presented tax impact slides, answered financial questions)
Dick Gakenheimer (Board of Assessors Member/Chair): [Speaker 4] (Explained assessment changes, market dynamics, tax exemptions; likely Chair or principal assessor presenting)
Eric Schneider (Finance Committee Chair): [Speaker 14] (Asked questions during tax hearing, adjourned FinCom meeting)
Neil D. Rossman (Board of Assessors Chair/Member): [Speaker 16] (Commented during tax hearing, adjourned Assessors meeting)
Naomi Dreeben (Finance Committee Member): [Speaker 17] (Asked question during tax hearing re: small businesses)
Sumit (Finance Committee Member): [Speaker 15] (Made motion to adjourn FinCom)
Finance Committee Member: [Speaker 19] (Facilitated FinCom adjournment vote)
Board Member/Staff/Other: [Speaker 18] (Made brief comment/vote)

Section 3: Meeting Minutes

1. Opening & Public Comment: 0:00:12 Chair Pro Tempore Neal Duffy opened the meeting and reviewed public comment procedures. No public comment was offered.

2. Recognition of Service: 0:02:10 Conservation Commission Chair Tony Abrandowitz accepted citations and awards on behalf of former long-serving members Tom Ruskin and Monica Tambourine. Chair Abrandowitz praised their commitment and the importance of volunteerism. Select Board members Spellios and Fletcher, along with Town Administrator Fitzgerald, expressed gratitude for their service and acknowledged the vital role volunteers play. 0:06:17

3. License Renewals Update: 0:08:13 * Presentation: Police Chief Ruben Quesada introduced the annual license renewal process, emphasizing interdepartmental collaboration (Police, Building, Community Dev, Fire, Treasurer) and public safety. 0:09:09 Angelica Noble (Staff) presented detailed information on the renewal process for Retail Liquor, Common Victualer, Entertainment, and Class 2 Used Car licenses, covering timelines, inspections, fingerprinting, fees, and quotas. 0:10:25 Sgt. Jay Locke (SPD) explained the alcohol compliance check procedures and Class 2 license inspection/enforcement. 0:14:49 * Liquor Licenses: Ms. Noble reviewed license types, fees, the new BYOB policy 0:21:10, and current license quotas showing availability 0:23:21. * C&L Liquor Discussion: 0:30:31 Significant discussion occurred regarding the renewal application from C&L Liquor Store, which lacks a physical location after being granted a 6-month license extension the previous year that had since expired. Staff (Ms. Galazka, Mr. Fitzgerald) relayed Town Counsel’s advice to approve the license and schedule a show-cause hearing to potentially revoke it, citing risk of the denial being deemed a revocation without due process. Member Spellios strongly disagreed 0:31:16, arguing that approving a license for a non-existent location was illogical and that since the prior license had already expired, non-renewal wouldn’t prejudice the applicant. He suggested taking no action or holding the show-cause hearing without renewal. Confusion arose regarding Town Counsel’s reasoning and the expired license status 0:37:34. The Board ultimately decided to table action on C&L Liquors. 1:05:28 * Common Victualer & Entertainment Licenses: Ms. Noble presented the renewal lists and processes for these licenses 0:39:30. Discussion included clarifying TV usage for entertainment licenses and plans to review the fee structure 0:41:52. * Class 2 (Used Car) Licenses: 0:44:13 Ms. Noble presented the renewals. Extended discussion occurred regarding parking and compliance issues associated with licensees, particularly Four Seasons Motor Group, Paradise Auto Sales, and Euroline Motors 0:46:40. Members Grishman and Phelan raised concerns about cars parked on sidewalks, residential streets (Swampscott Rd, Franklin Ave), and safety hazards on Paradise Road 0:49:41, 0:51:31. Sgt. Locke acknowledged enforcement efforts (tagging, warnings) 0:52:19. Chief Quesada stated the department is developing a more comprehensive plan to address the ongoing issues, involving legal review and coordination with the Building Department 0:57:34. Town Administrator Fitzgerald noted the link to zoning compliance 0:59:28. Member Spellios raised concerns about a recent ZBA approval for Paradise Auto Sales’ expansion, questioning the expansion of a prohibited, non-conforming use and advocating for better zoning enforcement and transparency 1:06:24. The Board requested the Police Department present its enforcement plan within four weeks 1:00:51. Euroline Motors did not submit its application in time and would need to apply as a new licensee 0:44:58. * Votes: * Liquor Licenses: Motion to approve all submitted liquor license renewals except C&L Liquors (with correction noted for Richdale’s license type), passed unanimously. 1:13:01 * Common Victualer Licenses: Motion to approve all submitted common victualer licenses, including those with pending items conditional on timely submission of information, passed unanimously. 1:14:55 * Entertainment Licenses: Motion to approve all submitted entertainment licenses, passed unanimously. 1:15:18 * Class 2 Licenses: Motion to approve renewals for Four Seasons Motor Group and Paradise Auto Sales, passed unanimously. 1:15:48 * Electronic Signatures: Motion to authorize electronic signatures for approved licenses, passed unanimously. 1:16:42 * Member Spellios commended Ms. Noble for an excellent, consolidated presentation 1:16:13.

4. Joint Public Hearing: Tax Classification: 1:16:53 * The Select Board opened its public hearing jointly with meetings of the Finance Committee (chaired by Eric Schneider) and Board of Assessors (chaired by Neil Rossman). 1:18:19 * Overview: Town Administrator Fitzgerald provided context, noting the need to set the tax shift and consider exemptions following Special Town Meeting’s use of free cash 1:20:09. He noted the significant disparity in valuation increases (Residential up ~16-21%, Commercial up <1%) and recommended considering a 1.75 shift. 1:20:50 * Tax Impact Presentation: Finance Director Patrick Luddy presented slides showing projected tax bill impacts on median/average properties under 1.70 and 1.75 shift scenarios 1:22:38. * Discussion: Considerable detailed discussion and questioning occurred. Member Spellios inquired about the counterintuitive result of condo values increasing more than single-family homes but condo tax bills decreasing while single-family bills increased 1:27:13. Mr. Luddy and Assessor Dick Gakenheimer explained this was due to the tax rate decreasing by a larger percentage than the median condo value increased, while the median single-family value increased by more than the rate decreased 1:31:59. Assessor Gakenheimer elaborated on differing market dynamics between property classes and historical shifts 1:34:01. Chair Duffy questioned how the town could shift more this year (up to 1.75) compared to last year (capped at 1.70), despite the residential share increasing 1:42:10. Assessor Gakenheimer explained, based on contact with MA DOR, that the town remained above its lowest historical residential percentage, permitting the higher shift 1:43:27. * Residential Exemption: Assessor Gakenheimer presented the residential exemption option (up to 35%), explaining it shifts burden from lower-valued owner-occupied properties to higher-valued and non-owner-occupied properties 1:59:22. He showed impacts at the maximum 35% level 2:00:27 and listed communities that use it. Member Spellios reiterated his interest in studying this option further as a tool to address economic disparity, suggesting the town already lives in “two different communities” 2:06:26. Town Administrator Fitzgerald agreed further study was warranted but cautioned about potential stratification and complexity 2:08:23. The consensus was to study it further but not adopt it this year 2:09:37. * Small Commercial Exemption: Assessor Gakenheimer explained the 10% exemption for qualifying small businesses (under $1M value, <10 employees), noting its limitations (applies to owner, not necessarily tenant; low number of qualifying properties; zero uptake when previously offered) 2:11:26. He suggested it was not an effective tool for Swampscott 2:14:21. * Hearing Closure: The Finance Committee and Board of Assessors adjourned their meetings 2:15:38. The Select Board closed its public hearing 2:16:32.

5. Select Board Action on Tax Classification: * Discussion: A notable debate occurred among Board members regarding the appropriate tax shift level (1.70 vs. 1.75). Town Administrator Fitzgerald reiterated his recommendation for 1.75 1:57:07. Member Spellios expressed concern about using the maximum shift (1.75) in the first year of significant residential burden increase, potentially exhausting the tool when future budgets might be tighter with less free cash available 2:20:25. Member Fletcher supported going back to 1.75, citing its long historical use and the availability of other financial tools 2:23:46. Member Grishman raised concerns about the message sent to commercial developers by maximizing the shift 2:28:47 and the potential negative impact on all small businesses 2:18:53. Town Administrator Fitzgerald discussed the need for economic growth and zoning reform 2:26:20. * Votes: * Motion: Not to adopt the Residential Exemption for FY2023. Passed unanimously. 2:34:56 * Motion: Not to adopt the Small Commercial Exemption for FY2023. Passed unanimously. 2:35:11 * Motion: To select the Residential Factor of 0.9480, corresponding to a CIP shift of 170% for FY2023. Moved by Grishman, seconded by Spellios. Passed 3-2 (Ayes: Grishman, Spellios, Phelan; Nays: Duffy, Fletcher). 2:35:36

6. Hawthorne Property Deed Acceptance: 2:39:06 The Board discussed the final deed acceptance and Use and Occupancy agreement for 149-169 Humphrey Street. Minor logistical points about closing date and tax status were clarified. Member Phelan noted she would sign as “Catherine.” * Vote: Motion to approve and execute the deed acceptance and Use and Occupancy agreement. Passed unanimously. 2:41:39

7. Consent Agenda: 2:42:59 Motion to approve the minutes from the November 30, 2022 meeting. Passed unanimously.

8. Town Administrator’s Report: 2:43:13 Town Administrator Sean Fitzgerald reported on: meeting with Lynn Mayor Nicholson regarding King’s Beach remediation (UV treatment preferred design, seeking state/federal aid); receipt of a hazard mitigation grant; upcoming recreation programs (Gingerbread Houses); the moving tribute for SPC Jared Raymond; a blood drive with raffle; and the Tree of Light ceremony.

9. Select Board Time: 2:47:37 * Member Grishman encouraged blood donation and shopping local, teasing a gift card challenge. * Member Phelan thanked the Harbor & Waterfront Advisory Committee and encouraged public participation in harbor planning. * Member Spellios thanked the Police Department for implementing body cameras. * Member Fletcher acknowledged Pearl Harbor Remembrance Day, thanked organizers of the Raymond memorial, and inquired about finalizing the firefighter contract funding (to be addressed via ARPA vote at next meeting). * Chair Duffy reminded residents of the Hawthorne property community kickoff meeting scheduled for January 28, 2023.

10. Adjournment: 2:52:25 Motion to adjourn. Passed unanimously.

Section 4: Executive Summary

This Swampscott Select Board meeting addressed several critical year-end items, notably finalizing the FY2023 tax rate structure and approving numerous business licenses.

Key Outcomes & Decisions:

Tax Rate Shift Set at 1.70: After considerable debate, the Board voted 3-2 to adopt a 170% Commercial, Industrial, and Personal Property (CIP) tax shift 2:37:37. This decision determines how the property tax burden is allocated. Significance: Given the sharp rise in residential property values (median single-family up 16.3%) versus a minimal increase in commercial values (<1%), this shift aims to moderate the tax increase for homeowners, though less aggressively than the 1.75 option also considered. Under the adopted 1.70 shift, the median single-family tax bill is projected to rise by $483, while median condo and multi-family bills are projected to decrease 1:22:38. The debate highlighted differing philosophies on maximizing immediate residential relief versus preserving fiscal tools for potentially tougher future budgets 2:20:25.
No Residential or Small Commercial Tax Exemptions Adopted: The Board unanimously voted against implementing the optional Residential Exemption 2:34:56 and the Small Commercial Exemption 2:35:11 for FY2023. Significance: The Residential Exemption, which shifts taxes from lower-valued to higher-valued homes, was deemed worthy of further study to address affordability but too complex and potentially divisive for immediate adoption 2:08:23. The Small Commercial Exemption was seen as ineffective due to its limitations and lack of past uptake 2:14:21.
Annual Business Licenses Renewed: The Board approved the vast majority of annual license renewals for liquor establishments, restaurants (common victualers), entertainment venues, and used car dealerships, following detailed presentations on compliance and inspections 1:13:01. Significance: This allows businesses to continue operating legally in 2023.
Scrutiny on Specific Licensees:
- C&L Liquor: Action on this license renewal was tabled due to the applicant lacking a physical location 1:05:28. This followed significant disagreement over Town Counsel’s advice versus the practicality of licensing a non-existent premise 0:31:16. Impact: The business cannot operate and its future licensing status remains uncertain pending further Board action.
- Used Car Dealers: Concerns about persistent parking violations and neighborhood impacts from used car dealers on Paradise Road and Humphrey Street prompted the Board to request a formal enforcement plan from the Police Department within four weeks 1:00:51. Impact: Increased oversight and potential enforcement actions are expected for these businesses.
Hawthorne Property Acquisition Finalized: The Board unanimously approved the final deed acceptance and use/occupancy agreement for the former Hawthorne Restaurant property (149-169 Humphrey St) 2:41:39. Significance: This completes the town’s purchase, a major step towards redeveloping this key parcel. A community visioning kickoff event is set for January 28, 2023 2:51:44.
Volunteer Service Recognized: The Board formally recognized the long service of Tom Ruskin and Monica Tambourine to the Conservation Commission 0:02:10, underscoring the value of volunteer contributions to the town.

Journalistic Insight: The meeting showcased the Board grappling with the direct financial impacts of a shifting real estate market on residents and businesses. The tax classification debate was particularly significant, revealing differing strategic approaches among members on how best to utilize the town’s limited tools to mitigate rising residential tax burdens. The final 3-2 vote for a 170% shift, rather than the maximum 175%, represented a more cautious approach, potentially reflecting concerns about future budget pressures or the impact on the commercial sector. Ongoing issues with used car dealer compliance and the unusual C&L Liquor situation highlighted the Board’s role in regulatory oversight and enforcement. The formal acquisition of the Hawthorne property marks a tangible milestone in a long-discussed redevelopment effort.

Section 5: Analysis

This meeting provided valuable insights into the Select Board’s decision-making processes, priorities, and internal dynamics, particularly concerning fiscal policy and regulatory enforcement.