FII Real Estate Committee Minutes

August 16, 2003  --  Community Center


1. Call to Order

The meeting was called to order at 3:00 p.m.

2. Attendance

The following members were present:

         Dick Giggey

         Dick Norris

         Ed Charrette

         Paul Peterson

         Tim Toomey

         Oleg Svetlichney

3. Approval of August 9th Minutes

The August 9th meeting minutes were approved after minor corrections.

4. Election of Secretary

Dick Norris was elected secretary of the Real Estate Committee.

5. Discussion of Peterson Letter to Islanders.

Paul presented a draft letter with two questionnaires, intended to be sent to islanders to solicit their views on real estate issues. The package consisted of:

         An introductory and explanatory cover letter.

         A survey questionnaire to be sent to owners of cottages.

         A survey questionnaire for each undeveloped lot.

6. Revised Real Estate Policy Document

Dick Norris agreed to come back next week with draft changes to the Real Estate Policy. It will address the policy of designating buildable lots available for bid, neighboring lots, merge lots, and the policy of not allowing lots sold as non-buildable to be changed back to buildable.

7. Putting Lots into Conservation

There was a discussion of putting selected lots into conservation. There may be a need to get input from a lawyer on this.

One possibility explored was to gift lots intended for conservation to the Town, with a conservation covenant on them.

There was also the thought that we should work with the Conservation Committee on this issue. Ed and Paul will come back with a written recommendation.

8. Selling Waterfront Lots to Fund Inland Lot Purchases for Conservation

Dick Giggey advanced the idea of using the net, after tax funds from the sale of one or a few buildable waterfront lots to purchase a much greater number of privately held inland lots that could be put into conservation. By this means, the total number of buildable lots on the island could be reduced. Another possibility would be to donate a waterfront lot to the Town, which could, in turn, sell it and use the funds to buy inland lots for conservation. This approach might permit income taxes to be avoided.

There was a lot of controversy about this proposal, but general consensus that the subject was premature.

9. Role of FII and the Real Estate Committee

There was considerable discussion from the audience about the future role of FII and whether or not it should be dissolved. In addition, there was a request for a Real Estate Committee mission statement above and beyond that contained in the Real Estate Policy Document voted in by FII stockholders last October.

10. Beaches

Real estate issues associated with the public beaches were also discussed. Included were the possible merging of adjacent FII owned lots with some of the public beaches and making other improvements. Also, the role of the FII Beach Committee was discussed. Some attendees expressed the view that the Beach Committee should be made a Town committee instead of an FII committee.

11. PWD Tutorial

Paul Peterson spoke to the PWD general manager about a briefing to the FII Real Estate Committee from the District and was referred to Paul Hunt, who was currently on vacation. He will follow up when possible to set a date.

12. Beach 10 RipRap Needs

Bill Foye has reported to Dick Giggey that DEP told him that Beach 10 needs to have riprap installed to prevent excessive erosion. Bill reported that if nothing is done, the DEP may come in and dictate exactly what needed to be done, how.

13. Next Meeting

The next meeting will be on the Friday, August 22nd at 8:30 p.m. at the Community Center.


FII Real Estate Committee Mission Statement

As Proposed by Oleg Svetlichney

Frye Island, Inc., (FII) having assumed control of the real estate assets of Leisure Living, Inc., on Frye Island when the developer went into bankruptcy, holds title to the roads, community beaches, and all of the island property originally owned by Leisure Living but not yet sold. As such, FII is the largest land owner on Frye Island. FIIís mission is to work for the benefit of all of its shareholders, the private land owners on Frye Island. Given that the settlement agreement with the Portland Water District limits (add citation) development on Frye Island to a maximum of 750 residential septic systems, and that the total number of platted lots, including those owned by FII, far exceeds that number, FIIís goals regarding the commonly held property include:

         Ensuring that the rights of existing FII shareholders to build on the island are not jeopardized by sales of FII-owned real estate,

         Maximizing the amount of open space and environmentally sensitive areas of Frye Island that contribute to the rural character of the island that drew many property owners to the island,

         Where practical, and approved by the shareholders, providing land for public amenities or municipal facilities from FII holdings,

         Utilizing the proceeds from any sales of FII-owned land to build, maintain, expand, or replace public amenities or municipal facilities for the benefit of the shareholders (present and future),

         Minimizing the Federal, State, and local tax implications to FII of the holding or sale of FII-owned land.

In order to meet these goals, FII has established a Real Estate Committee. The mission of the Real Estate Committee is to make recommendations to the FII shareholders regarding the management and disposition of all FII-owned real estate. In carrying out this mission, the Real Estate Committee will work with the FII shareholders to review and revise the FI Real Estate Policy, and, over time, determine one or more uses for each FII-owned lot that are in keeping with the overall goals described above. Such uses may include, but are not limited to the following, listed in roughly their decreasing order of importance:

         Preservation of open space and environmentally sensitive areas (including critical habitats for island flora or fauna) through conservation easements, land trusts, or transfer to private ownership of the Town of Frye Island with any and all deed covenants needed to ensure such preservation,

         Transfer to Town ownership to provide land for municipal facilities,

         Transfer to private ownership by FII shareholders as non-buildable property, with any and all deed covenants needed to ensure such non-buildable status, thereby minimizing the impact of such lots on the septic system limitations of the settlement agreement, and

         Transfer to private ownership for use as buildable lots.