Allegrone Set To Renovate Pittsfield's Onota Building
 The Onota Building is next on Allegrone's list of rehabilitation projects. |
Allegrone has plans to invest $9.2 million into the North Street building to create 25 market-rate apartments and 10,000 square feet of street-level commercial retail.
The project is expected to begin construction this month and take about a year. The project mirrors that of the Howard Block the company just renovated at the intersection of First and Fenn Street.
The Onota renovation will be larger than the Howard project with 15 two-bedroom apartments and 10 one-bedroom.
Together, the two buildings create 39 new market-rate rental units downtown and 10 street-level commercial spaces. The company purchased the Onota building in 2011
The project is partially funded with $3 million in historic tax credits and $700,000 from the state Housing Development Incentive Program. Allegrone partnered with the city to apply for both projects in the program that was new at the time.
The city is providing a tax increment financing package to help the development of both buildings.
However, language in that agreement had become somewhat outdated and the city's Community Development Department asked the City Council on Tuesday to link the language to specific language from the state law, according to Community Development and Housing Program Manager Bonnie Galant.
"We just want to prevent any misunderstandings going forward," she told the City Council.
The 10-year agreement provides tax relief for the new residential units. For the first year, the company will not have to pay any taxes on the residential values and, each succeeding year, will pay 10 percent more until hitting 100 percent.
"This only applies to the residential value of the program," Galant said. "A good portion of the building will be residential."
Currently, there is no residential value because it had been used completely for commercial use. The building is currently assessed at $344,400, according to Galant, and the company will still be responsible for that until the project is complete and reassessed.
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The building will feature commercial space on the ground floor and residential units on the upper.
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"The taxes for FY17 would be $12,972 on the commercial and 100 percent forgiven on the residential," King said.
Eighty percent of the building will be residential and the tenancy and income generated will play a role in whatever assessment is ultimately given on the residential portion of the project - which is currently estimated at more than $1 million.
"At the end of the day we will still be collecting on the building," summarized Ward 5 Councilor Jonathan Lothrop.
The explanation assured Councilor at Large Barry Clairmont, who noticed the value listed in the agreement for the residential properties change. Galant said that value was changed to zero just to represent the current residential units, of which there are none.
"The citizens don't want to see the tax value go down," Clairmont said.
Tags: renovation, residential housing, tax incentive,
