JUNE 29, 2002

1:00 PM



The following members of the FII of Directors were present: President Mark Thomas, Vice-President and Treasurer Diane Babineau, Secretary Carlton Hommel, Jeanne Sullivan-Toomey.


President Thomas presented a brief review of the purpose of the FII Real Estate Policy Review, and opened the hearing to questions and concerns.


Kathy Potts asked the meaning of the phrase at the bottom of page 4, “The sale of Buildable lots will be limited on an annual basis by the approximate value of one typical buildable waterfront lot.”


Richard Norris asked about privacy lots and pumpback lots, “Would they be included in the yearly limit?”


Kathy Potts noted that the policy did not explain the process by which one bid on a lot, and how the bid would be considered, and who would consider it.


Claire Ladow asked if the concept of auctions would be continued, or eliminated, and how right of first refusal letters would be handled.


Jim O’Connor pointed out the market value of lots on Frye Island was volatile from year to year, and when the selling prices of lots were low, historically the FII Board had been reluctant to sell lots.


Jeanne Sullivan-Toomey said that the meetings of the Real Estate Committee should be advertised and be open meetings.


Oleg Svetlichny presented two written statements, attached.


Richard Norris stated that there should be further workshops on specific issues.


There being no further comments, President Thomas gave a closing statement on future plans, and adjourned the hearing at 2:15 PM.

To: Board of Directors of Frye Island Incorporated


Subject: FII Real Estate Policy Review dated 6/14/02


Dear Board Members:


I would like to submit the following comments in regards to the subject document:


* It is gratifying to see that the FII Board of Directors (Board) takes a much broader view on the F11 real estate than what it was in the past. In this spirit, the section titled General Sales Philosophy should be changed to General Real Estate Use and Sales Philosophy.


* I especially welcome the idea of establishing a Steering Comminute, paragraph 2 in the General Sales Philosophy. It will be appropriate to acknowledge in this paragraph the Town of Frye Island Comprehensive Plan by stating that this plan will be used as a guide in researching the issues and making recommendations.


* Paragraph 2, General Sales Philosophy. I would like to recommend that no buildable lot be sold without approval by the F11 shareholders. In presenting a potential sale, the Board shall clearly state how the net proceeds will be used, provide an estimate of the taxes to be paid as a result of the sale, and submit an impact statement having Comprehensive Plan as a guide.


The policy should address the potential changes in tax obligations (FII taxes paid to the Town of Frye Island) that might result from reevaluation of all properties in the Town.


* In the data base that I have developed for the Grand List and Tax Bills purposes, I have programmed some features that might be useful to the Board. To be specific, the data base can provide reports such as two shown in the enclosures. In addition, it can be upgraded to add other kinds of reports. In fact, it can be made the FII Real Estate Properties Tracking data base, If the Board finds this idea useful, I could write system requirements and make a proposal to implement it.


* It would be very informative to have a map of the Island showing only the FII lots.


Enclosures:     1) FII Taxable Properties

                        2) FII Properties (lots) in Bulk Land; it can also be arranged having Lot Numbers as the leading column.


Oleg Svetfichny, Lot 13


28 June 2002

To: Board of Directors of Frye Island Incorporated

Dear Board Members:


Please add the following item to the 6 July FII shareholder meeting.


Building and Leasing Town Office.


I would like then to make the following motion:


"I move that Frye Island Incorporated (FII) enter into an agreement with the Town of Frye Island (Town), which agreement would detail the following: 1) Construction of a office building (Office) by FII on an FII lot(s) and 2) leasing said Office to the Town at a fair market value. Determination of the Office requirements, selection of the Office location, and development of the Office specifications shall be done by a group of people representing FII and Town. This information shall be presented to the FII shareholders and Town voters at a special meeting in August. The construction should then commence in September in order to achieve the maximum tax benefits possible."


The following facts are the rationale behind this motion. The present Town Office building does not adequately meet the needs of the Town and does not meet at all the Federal ADA requirements. Nor does it have any fire protection for Town's records. Furthermore, it is not efficient in terms of heating and cooling. (For example, the largest room is heated or air conditioned to benefit, for the most of the days, just one employee.) Its present location, while it might be looked upon as convenient, actually causes awful traffic patterns ‑ store, ferry, and office customers competing for limited road and parking real estate. Finally, its structural condition is very poor. On the other hand, FII has many suitable lots and the money to construct a well‑designed office building, which would provide FII with a steady income. The Town would have a true Office. It will be indeed a WIN‑WIN situation.


Oleg Svetlichny, Lot 13


28 June 2002