Selectmen Explore North Reading Taking Control of Former J.T. Berry Property

North Reading may be able to have the final say on what winds up going onto the remaining 40 acres of the former J.T. Berry property – and finally benefit from tax revenue from the property off Lowell Road.

Selectman Michael Prisco, Community Planning Commission member Chris Hayden and Planning Administrator Danielle McKnight recently met with officials from Massachusetts Division of Capital Asset Management and Maintenance (DCAMM), a state agency that currently oversees the property, to discuss the land.

The full Berry property was sold years ago to developer The Gutierrez Company. Half of the property was later used for the Edgewood Luxury Apartments development. 

The Gutierrez Company decided to transfer the rest of the former J.T. Berry property, which was once a state sanatorium, back to the commonwealth in 2012. 

Prisco said the town has an option to take control of the property from the state. In a new sale partnership model, North Reading would need to pay a portion of the “sunk costs” that the state has put into the property, such as advertising the land, maintenance, security and legal bills.

Prisco said the state is compiling the sunk costs figure and he expected they will provide a number this month.

If the town pays a certain portion of sunk costs, North Reading will take control of the property and will have the final say as to what goes there.

When the property is later sold, the town would get 50% of the sale price while the state would get the other 50%. Prisco said there are additional ways for North Reading to get an even higher percentage by reaching “redevelopment milestones.” Prisco thinks North Reading would likely get closer to 60% of the sale price.

Another benefit is the town would finally get tax revenue from the property.

Prisco said the selectmen will need to go to Town Meeting in October and ask for money to pay for the sunk costs. If Town Meeting approves the money, then state Sen. Bruce Tarr will need to file legislation as part of the process. He will need to file in January 2015.

To help pay for the purchase, North Reading can also get an interest-free 10-year loan from the state.

The Board of Selectmen support the potential of taking control of the property.

“It’s an opportunity we would be foolish to pass up,” said Selectman Stephen O’Leary.

Prisco said he will report to the selectmen about the sunk cost figure.