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Lynn
Seeks Proposals for Klemm's Building
By David
Liscio, The Daily Item, November 19, 2002
"We as councilors have a responsibility to rebuild downtown Lynn and the way to do that is one building at a time. This is an opportunity to do that," said City Councilor-at-large Timothy Phelan, the council's Public Property Committee chairman.
That committee has voted to have the Lynn Economic Development and Industrial Corp. (EDIC) send out a request for proposals to prospective developers on the Central Street commercial building. Phelan said the Klemm's building could fit nicely into the downtown redevelopment scheme and is advocating that the EDIC seek development proposals and, ultimately, a property sale, "Rather than give the building away for a buck, like what has been done in the past."
The former restaurant, located just south of the commuter rail bridge, was most recently owned by Sally W.K. Loh, but has since fallen into the city's hands as a result of tax delinquency. The city took control of the property Nov. 13, 2000, in lieu of back taxes and began collecting income from the billboard company that leases space on the building roof. That income was deposited in an escrow account pending the expiration of Loh's "right of redemption" period, which has elapsed.
"The owner was aware of what was going on," said Stephen Harausz, the city's development director. "She clearly had notice. Now we need to figure out what to do with it. My job is to take that liability and turn it into an economic asset."
Asked for his opinion on the escrow account situation and the billboard space lease, Assistant City Solicitor George Markopoulos said the funds would belong to the new owner unless the city transfers it beforehand to a municipal account.
Ward 4 Councilor Richard Colucci questioned whether revenue from the property sale would go to the city or the EDIC. "If the EDIC gets the money, I don't see how that will benefit the city," he said.
