Requesting the appropriation of $360,000 from the Unreserved Fund Balance ("Free Cash") to the Judgments & Settlements Account for settlement payments relative to the lease between BRE-BMR, Middlesex LLC and the City of Somerville for the Assembly Square Fire Station at 45 Middlesex Avenue.

To the Honorable City Council: The Mayor respectfully requests that this Council appropriate $360,000 from the Unreserved Fund Balance ("Free Cash") to the Judgments & Settlements Account [0199052-576000], for the purpose of settling the payment of allocable property taxes to BRE-BMR, Middlesex LLC for the condominium unit at 45 Middlesex Avenue housing the Assembly Square Fire Station. The lease agreement between BRE-BMR and the City of Somerville executed on June 7, 2022 requires the City to pay an allocable share of the property taxes for the site. The amount of allocable taxes owed by the City is in dispute and is currently in negotiations between the City and BRE-BMR. Resolution is necessary to execute the sale of the condominium unit to the City. Appropriation is necessary now before June 30th when "Free Cash" expires. The amount of $360,000 will be held in reserve in Judgments & Settlements. The remainder of a settlement amount reached below $360,000 will revert back to Unreserved Fund Balance and be part of next year's certified "free cash". Appropriate staff will be available to address any questions you may have. Thank you for your consideration of this item. Respectfully Submitted, Jake Wilson, Mayor