City Eyes Reacquiring Route 99 Transfer Station

The city is hoping to break a lease agreement with a trash disposal company over land the company uses as a transfer station on Route 99.

Waste Management exercised its option to renew the lease of city-owned land on Route 99 for another 10 years, but Melrose officials, who view the land as valuable prime real estate, have been negotiating with Waste Management in the hopes of reacquiring that land.

Melrose City Solicitor Rob Van Campen said that Mayor Rob Dolan, who was away on vacation and could not be reached for comment, believes that the lease agreement "was not in the best interest" of the city and that there is "tremendous value" in the three city-owned parcels included in the lease. The city also uses a portion of the land for managing recyclables and yard waste.

Van Campen did not have specific details about the city's potential plans for the property, instead reiterating why city officials believe there's more value in the land being used for something other than a transfer station.

"It's close proximity to Route 1, it's right on Route 99, it's prime real estate just outside of Boston," he said.

The city first leased the land in December 1996 to M.J. Connolly and Sons, Inc., which was later purchased by Waste Management. That 15-year lease is set to expire next year, but contained the 10-year lease extension option that Waste Management triggered in May by notifying the city.

The lease started at $45,900 in the first year and increased each year by 5 percent, or by the average over the previous year of the Consumer Price Index — the U.S. Department of Labor program that measures changes in the prices paid by urban consumers — for the Boston area.

"For the last year, we've been in informal discussions with Waste Management to try to achieve the goal of reacquiring those parcels short of 2021," Van Campen said. "Those discussions remain ongoing. Waste Management has been very open and upfront with dealing with those discussions."

Dolan chose not to counter-sign the 10-year lease extension acknowledgement filed by Waste Management, Van Campen said. Asked if that set the city up for a lawsuit, Van Campen said, it did not.

"I'm not exactly sure he needs to (sign it)," he said.

Jim Nocella, Waste Management's northeast division manager of public sector services, concurred with Van Campen's opinion.

"Yeah, I don't think he's required to countersign it," Nocella said. "The lease just requires us to notify the city whether or not we're going to take the option that's there."

Van Campen did not have specific details about the city's potential plans for the property, instead reiterating why city officials believe there's more value in the land being used for something other than a transfer station.

"It's close proximity to Route 1, it's right on Route 99, it's prime real estate just outside of Boston," he said.

Nocella characterized discussions between Waste Management and the city in the same way Van Campen did, as informal, upfront and open. He also did not have any specific details regarding any future uses for the land as envisioned by city officials.

"The city has some interest in just keeping the lines of communication open with us," he said. "But we really haven't gotten into any detailed discussions about transferring the property back to the city and what the use would be. We've kind of agreed to keep an open dialogue about that, which we'll continue to do."

Waste Management triggered the option because of the investment the company has made in the property, Nocella said.

"There's  building there, a facility there, we have a permit (from the state Department of Environmental Protection) to operate," he said. "It's a business concern."