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Cambridge council approves $2.0M package to stabilize Neville Center and refinances loan; $29.39M mitigation funds placed in stabilization account
Summary
The City Council approved a $2,000,500 appropriation to help stabilize Neville Center and voted to move $29,388,181.96 of developer mitigation revenue into a mitigation stabilization fund; staff described loan renegotiation with Rockland Trust that lowers monthly debt service and includes a $1.5M principal contribution from the city.
The Cambridge City Council voted Jan. 6 to appropriate $2,000,500 from free cash to support Neville Center, a city-associated assisted-living and skilled-nursing campus, and separately approved moving $29,388,181.96 into a mitigation stabilization fund that holds developer mitigation payments.
City staff and Neville board members outlined a refinancing plan with Rockland Trust intended to stabilize operations. "We crafted a negotiated deal that in exchange for a $1,500,000 reduction of principal, which would come from a contribution that the city makes to Neville, they would reduce that interest by 1%," Assistant City Manager Claire Spinner told the council, summarizing negotiations with the bank.
Andrew Fuqua, chair of the Neville board, said the proposed changes — a longer loan term and lower interest rate combined with the $1.5 million principal reduction — will lower the center's monthly debt service and create operating stability. He said the board expects the structure to reduce net interest over the 10-year period by roughly $1.4 million.
Budget director Taha Jennings told councilors the large mitigation appropriation came from a handful of large project payments, including one related to 325 Binney Street and a payment tied to the Eversource property. Jennings said the city can provide a developer-by-developer list if the council wants more detail.
Some councilors pressed for additional details about Rockland Trust's lending footprint and the full history of the original loan; Councilor Nolan asked for data on the bank's other local lending and said he might exercise a charter right to obtain more information before final action on some items. City staff said they will provide further financial detail and that the loan restructuring also benefits from changes in forthcoming Medicaid reimbursement rules the board expects to take effect in October 2025.
Roll-call votes recorded the mitigation appropriation and the Neville funding on the affirmative vote of nine members; the measures were then placed on file according to council procedure.
