Developers ask Lakeville to submit nonbinding expression of interest for state brownfields funds to clean former hospital site

Rhino Capital representatives sought Select Board permission to have the town submit a nonbinding expression of interest (EOI) to MassDevelopment’s Community One‑Stop for Growth program for brownfields remediation funding at the former Lakeville State Hospital.

John O’Leary of Rhino Capital presented supporting documents and said the EOI would allow the project to be screened for potential awards, including priority awards that could reach up to $2 million. “We provided several pieces of material, a draft memorandum of understanding, a draft expression of interest and fiscal impact studies,” O’Leary told the board.

Why it matters: The former hospital site includes landfill and contamination issues that have blocked redevelopment. State brownfields funds could pay for demolition and remediation steps that the developer says are necessary before redevelopment can proceed; however, those grants usually require municipal involvement and sometimes municipal applicant status, which can raise concerns about care‑and‑custody and long‑term liability.

Key issues discussed: Town staff and board members pressed the developer and MassDevelopment representatives on whether the town would need to own the property or be placed in “care and custody” to be eligible, and whether taking that status would create 30 years of potential liability. Rhino said it is their intent that the town not take fee ownership but that language in an exclusive easement could, in some circumstances, satisfy eligibility criteria; Rhino said it is working with MassDevelopment to confirm whether an easement qualifies as “publicly owned” for the grant. Rhino representatives also discussed the use of an exclusive easement (rather than title transfer) and said they would seek to structure any MOU so the town does not become the long‑term owner.

Other concerns raised included whether the state would prioritize the project among other applicants, whether awarding brownfields funds to this project could affect the town’s eligibility for other state grants in subsequent years, and whether applicants should post performance bonds to guarantee future work. Several Select Board members emphasized they would not support a structure that left the town exposed to future liabilities and asked Rhino to obtain written assurances and legal language clarifying that the town would not be responsible for long‑term cleanup costs. Town counsel was asked to review any proposed MOU language.

Vote and next steps: The Select Board voted to authorize staff to submit a nonbinding EOI to MassDevelopment to request feedback; board members emphasized the application is nonbinding and asked the developer to provide written clarifications on care‑and‑custody, the easement mechanism, performance bonding and whether an award would be a priority award. The town administrator and Rhino staff agreed to continue discussions with MassDevelopment and to return with clarified legal language and commitments before any binding municipal action.

Speakers (as recorded in the meeting) - John O’Leary — Rhino Capital (presenter) - Andrew — Town Administrator (coordinator; asked procedural questions and legal follow‑up) - Multiple Select Board members and residents asked about liability, bonds and municipal obligations

Authorities - MassDevelopment Community One‑Stop for Growth (brownfields program) — referenced as the grant program being applied to

Clarifying details - Program mechanics: Rhino said MassDevelopment’s priority awards can reach up to $2,000,000; typical awards are often $200k–$250k unless classified as a priority project. - Town role: Rhino proposed exclusive easement language rather than town fee acquisition; eligibility under the "publicly owned" dropdown is being clarified with MassDevelopment. - Care and custody: Town staff raised that care and custody can carry liability for 30 years under some state arrangements; Rhino and MassDevelopment to clarify.

Provenance - {"block_id":"3742.04-3796.4502","local_start":0,"local_end":260,"evidence_excerpt":"John O'Leary with Rhino Capital...provided several different pieces of material, a draft memorandum of understanding, a draft of the expression of interest...","reason_code":"topicintro"} - {"block_id":"5658.785-5660.79","local_start":0,"local_end":110,"evidence_excerpt":"...we would ask tonight just given the expression of interest is due on the 20 sixth...this expression of interest is a nonbinding commitment...we would ask the board if the board feels comfortable allowing us to coordinate with submitting this expression of interest","reason_code":"topicfinish"}

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