Allegrone Requests Tax Incentive for North Street Project

PITTSFIELD, Mass. — A tax increment exemption has been proposed for Allegrone Construction Co.'s $18 million overhaul of two North Street properties.

Tuesday's City Council agenda includes a requested 10-year TIE for the $17.8 million project that redevelops the historic Wright Building and the Jim's House of Shoes property.

The project will combine the two buildings into one development, retaining the commercial storefronts on North Street and providing 35 new rental units, 28 of which will be market-rate units and seven of which will be affordable units.

"Both buildings are underutilized and in need of significant upgrades," Director of Community Development Justine Dodds wrote in a communique to the council.

"The current economic conditions — locally, regionally, nationally— make it difficult for private investors to secure the commercial financing requires for redevelopment."

Both buildings were shuttered around the time of the pandemic, with Jim's House of Shoes closing its doors after about 80 years in business.

The TIE would freeze the current property values and base value, and phases in the increased property taxes that result from the upgrades, beginning at 100 percent forgiveness in the first year and decreasing by 10 percent each subsequent year over the term.

It is a requirement to receive state tax credits through the Housing Development Incentive Program.

The current assessed value of the properties is $497,900 for the Wright Building and $229,900 for the former Jim's House of Shoes property. The redevelopment of these buildings is projected to increase the assessed value of each property to more than $2.5 million and more than $1.9 million, respectively.

The city approved a Housing Development Zone in 2012 to take advantage of the state Housing Development Incentive Program that supports market-rate housing development in gateway cities. The city can provide a TIE for newly created market-rate housing in the zone to private developers and for the projects to be eligible for up to $1 million in tax credits from the state through the Executive Office of Housing and Livable Communities and the Department of Revenue.

"A total of 166 new units of housing in 9 projects have been created through this program. In addition, all but 16 of those units were former commercial properties that were not housing prior to their redevelopment. These properties include former church buildings, vacant commercial space in the upper level of commercial buildings in our downtown, and a vacant firehouse," Dodds reported.

Earlier this year, the council voted to amend the HD Zone to include a Wendell Avenue property and a Linden Street property, both of which are staged for housing development. It was expanded to Tyler Street and other locations with updates in 2017, 2018 and 2020.

It is requested that the TIE proposal be referred to the subcommittee on Community and Economic Development before coming back to the council.

Also on the agenda is an order to rescind $1,119,471.50 of authorized but unissued debt for projects that are now complete or were never advanced.

This includes $725,000 for temperature controls at Pittsfield High School and $120,000 for three Fire Department generators.

"The rescinding of these unissued amounts on a regular basis is a critical component of our overall
debt management strategy," Mayor Peter Marchetti wrote.

Pittsfield City Council Weighs in on 'Crisis' in Public Schools

By Stephen DravisiBerkshires Staff
08:59PM / Monday, December 23, 2024

A half-dozen people addressed the City Council from the floor of Monday's meeting, including Valerie Anderson, right.

PITTSFIELD, Mass. — After expressing anger and outrage and making numerous calls for accountability and transparency, the 11 members of the City Council on Monday voted to support the School Committee in seeking an independent investigation into allegations of misconduct by staff members at Pittsfield High School that have come to light in recent weeks.

 

At the close of a month that has seen three PHS administrators put on administrative leave, including one who was arrested on drug trafficking charges, the revelation that the district is facing a civil lawsuit over inappropriate conduct by a former teacher and that a staff member who left earlier in the year is also under investigation at his current workplace, the majority of the council felt compelled to speak up about the situation.

 

"While the City Council does not have jurisdiction over the schools … we have a duty to raise our voices and amplify your concerns and ensure this crisis is met with the urgency it demands," Ward 5 Councilor Patrick Kavey said.

 

About two dozen community members attended the special meeting of the council, which had a single agenda item.

 

Four of the councilors precipitated the meeting with a motion that the council join the School Committee in its search for an investigation and that the council, "be included in the delivery of any disclosures, interim reports or findings submitted to the city."

 

Last week, the School Committee decided to launch that investigation. On Monday, City Council President Peter White said the School Committee has a meeting scheduled for Dec. 30 to authorize its chair to enter negotiations with the Springfield law firm of Bulkley, Richardson and Gelinas to conduct that probe.

 

Ward 7 Councilor Rhonda Serre, the principal author of the motion of support, was one of several members who noted that the investigation process will take time, and she, like Kavey, acknowledged that the council has no power over the public schools beyond its approval of the annual district budget.