A tax break has been approved for a developer planning to restore a historic – and very unique – apartment building in Springfield, Massachusetts.
The Springfield City Council voted unanimously to approve a tax increment exemption agreement with Davenport Advisors, which plans to restore and redevelop the landmark century-old apartment building at 169 Maple Street in the Maple High-Six Corners neighborhood.
“We’re excited about this project,” said Charlies Irving, founder and President of Davenport. The company plans to invest $3.5 million to return the building to the city’s apartment rental market. The tax exemption agreement will save the developer an estimated $135,000 over 10 years, according to the city’s Office of Planning and Economic Development.
The five-story brick building contains only 11 apartments. Each is about 2,000 square-feet with three bedrooms, two baths, a full living room, and dining room. It is truly unique in the Springfield housing market said Joy Martin of Davenport.
“What it offers to the city is a larger living space for extended families to live together,” she said.
Based on market rates, monthly rents will be $2050, according to the developer.
City Councilors are very familiar with the project. It was before them twice last year. Councilors voted to authorize $250,000 for the project from the Community Preservation Act program. They also approved a special permit for the construction work.
Located in the Ridgewood Historic District, the building was taken by the city about a decade ago for nonpayment of taxes and so it has been off the property tax rolls
Boston-based Davenport was the only company that responded last year to the city’s request for development proposals.
A second property tax incentive agreement was unanimously approved by Councilors for a project to redevelop a three-story building on Taylor Street in the downtown Dining District. The first floor will be a taproom and restaurant operated by Loophole Brewing. The second floor will have event and live music space. Snapchef, a culinary training company, will have its Springfield headquarters on the third floor.
Speaking at an earlier hearing by the City Council’s Economic Development Committee, State Rep. Aaron Saunders of Belchertown, who is part of the ownership of Loophole, said the project represents a $2 million investment and will create 30 new full-time jobs and 20 part-time jobs.
“We can’t wait to get going,” Sanders said. “This application ( for a tax increment financing agreement) is essential to the deal penciling and being able to move forward as expeditiously as we’d like.”
The agreement approved by the Council will reduce the property taxes owed by an estimated $111,000 incrementally over five years.
City Councilor Melvin Edwards, who chairs the Economic Development Committee, reminded both developers of their employment requirements under the city’s responsible employer ordinance.
“It is 35 percent (of total employees must be Springfield residents), minorities are 20 percent, women at 6.9 percent, veterans 5 percent,” he said.
The tax incentive agreements include claw back provisions for the tax money if the developers fail to live up to their obligations.
