The city is looking to buy the M&T Bank property at 357 Beacham St. as part of the Island End River Flood Barrier project.
Under the proposed arrangement, M&T would lease the property and building back from the city for a fee equivalent to their current property tax burden, according to City Manager Fidel Maltez.
Chelsea has been working alongside Everett for many years on the Island End River Flood Barrier, which Maltez said is a critical infrastructure project designed to protect thousands of residents from severe coastal flooding.
“Although the recent loss of a $50 million BRIC (federal Building Resilient Infrastructure and Communities) grant has delayed the construction timeline, the project remains a top priority,” stated Maltez. “We are continuing to advance it using secured state funding for design, engineering, and land acquisition.”
In a letter to the city council, Maltez wrote that it was essential that the city utilize existing state funds now and that delaying their use could jeopardize Chelsea’s eligibility and result in the forfeiture of significant grant dollars. He stated that moving forward at this stage ensures the city maintains momentum and keeps the project on track for eventual construction.
“With that in mind, I am writing today to provide an update on the City’s negotiations with M&T Bank, located at 357 Beacham Street, to purchase their property in fee,” stated Maltez. “This purchase is necessary for the construction and maintenance of the eventual flood barrier, as it will host a large structure that will prevent water from flowing back up through a drainage pipe under the flood barrier to flood the low-lying Market Street area during a storm. Construction and maintenance of this structure will be extremely impactful to the Bank in its current location, and after years of discussion we have agreed it would be best for the City to purchase the property.”
The purchase will be financed with state grant funding from the Municipal Vulnerability Preparedness Program and by city matching funds already appropriated for this use in the Capital Improvement Program. Maltez said no new funds will be necessary to complete the transaction.
The purchase price is the assessed value of the property per an independent appraiser in February of 2025, $1,650,000.
“These State grant funds are only available until June 30, 2026, but of course the timeline of the Island End River project has been significantly delayed by the loss of the FEMA BRIC grant,” stated Maltez. “We have therefore worked with M&T to negotiate an agreement that would allow the City to purchase the 357 Beacham Property with the monies currently available, and lease the property and building back to them for a fee equivalent to their current property tax burden.”
Under the negotiated terms, M&T Bank would agree to continue to pay the annual real estate tax obligation as the value of the lease, and would continue to be responsible for maintaining the property. The City would be required to give M&T Bank 18 months’ notice of the termination of the lease to provide them time to secure a new location; the city would not give that notice until it had all necessary funding to proceed with work on their property, and would not give notice before July 1, 2027. M&T Bank would have the right to terminate the lease on 30 days notice.
“We feel that these terms work well for both the City, with our long-term interest in the property, and M&T Bank, with their ongoing operations which benefit residents and business in Chelsea,” stated Maltez. “We have worked closely with M&T in recent months to finalize a Purchase & Sale and Lease that clarifies these terms and protects the interests and legal obligations of both parties.”