Cable Mills Developer Believes Housing Start by Next Year
David Traggorth, representing the Cable Mills project, updated the Community Preservation Committee on some hopeful signs for the long-delayed endeavor. |
Updated Oct. 18, 2013, at 1 p.m. with more information on the Cable Mills project and the meeting.
WILLIAMSTOWN, Mass. — The director of development for the owner of the Cable Mills complex told a town committee Thursday that the developer hopes to have shovels in the ground as early as this spring.
The CPC recommends to town meeting each spring how the town should spend money generated through taxation under the Community Preservation Act, an levy Williamstown adopted in 2002. The town taxes 2 percent on property value (after the first $100,000) to use toward community preservation and receives a partial match from the commonwealth.
The CPA allows those funds to be spent in three areas: subsidized housing, historic preservation and open space and recreation.
Plans to tranform the former cable plant into housing have been in the works for a decade. |
On Thursday, Traggorth took the CPC through the history of the project, starting with developer Robert Kuehn's plan for a condominium development. After Kuehn died in 2006, Mitchell, a Williams College alumnus and former trustee of the college, purchased the property for a little more than $3 million, Traggorth said.
"We realized the development plan he envisioned was difficult ... but we saw a lot of potential in terms of condominiums with gorgeous views on a 9-acre site and units with 16-foot ceilings," he said. "It's just an amazing property."
But after finding the right building contractor and getting cost estimates that made sense financially, Mitchell Properties ran headlong into the financial crisis of 2008. Funding for condominium projects dried up, and it remains virtually non-existent to this day, Traggorth said.
"We've done many condo projects prior to 2009, and we had many in the pipeline at that point ... and all had the same issue," he said. "There were no condominium lonas. We, like many developers,had to step back and say, 'How do we make it work.' "
After receiving indications from banks that presales might help, Mitchell started marketing condo units at Cable Mills. But despite abundant interest in units at the site, the financing did not materialize.
"The bank told us it didn't matter how many you presell," Traggorth said. "[Loan officers] said, 'We cannot say the word "condominium" in the loan committee without, essentially, being fired.'
"At that point, we had already started converting some units to rentals."
Today, the plan is for all 61 units to be rentals, at least for the first five years of occupancy, Traggorth said. The state funding Mitchell is counting on requires the units to be rentals for at least that long, he said.
The full array of government funding Mitchell is pursuing includes up to $6 million in state historic tax credits, the affordable housing resources and tax credits and Williamstown's CPA money.
Traggorth said the town's commitment to the project, while small in the big picture, is vital.
"One of the threshholds for that $1.3 million [from the commonwealth] is you must have local funding to be eligible," Traggorth said.
"They won't even look at us unless we have local funding. They want to know the locality supports the project."
And even though the town's long-term commitment of CPA funds to pay off the bond will limit the funds available for other local projects, the chairman of the town's Affordable Housing Committee attended Thursday's meeting to note that the AHC strongly supports the Cable Mills effort.
"I don't want to have anyone doubt that the Affordable Housing Committee supports this project 100 percent," Catherine Yamamoto said.
Yamamoto pointed out that working with Mitchell Properties allows the town to leverage the CPA funds to create many more units than the town could build using its money alone.
"It's a bargain," she said.
All in all, the Community Preservation Committee appeared satisified with Traggorth's answers and encouraged by his optimism. The town manager made it a point to note that he continues to be pleased with the candor of Traggorth and his boss.
"In listening to David for probably five years and Bart [Mitchell] and Bob Kuehn for however long ... he has been 100 percent consistent over the years in every conversation," Fohlin said. "And I didn't hear anything tonight that wasn't consistent with a year ago and two years ago and three years ago.
"When people are not being candid, they have a hard time being consistent. When they are being consistent, that is the truth. I was very happy to hear consistency from [Traggorth]."
Tags: affordable housing, Cable Mills, Community Preservation Act, housing projects,