The Onota Building is next on Allegrone's list of rehabilitation projects.
PITTSFIELD, Mass. — The City Council reasserted its support of the redevelopment of the Onota Building on Tuesday night by approving, again, a tax incentive.
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However, language in that agreement had become somewhat outdated and the city's Community Development Department asked the City Council on Tuesday to link the language to specific language from the state law, according to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.
The building will feature commercial space on the ground floor and residential units on the upper.
According to Board of Assessors Chairwoman Paul King, the building's value is expected to increase to $1.7 million, mostly from the residential units.
"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.
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Toy Library Installed at Onota Lake
By Brittany PolitoiBerkshires Staff
PITTSFIELD, Mass. — Feel free to use or leave a toy at Onota Lake's newest infrastructure meant to foster community and benefit kids.
Burbank Park now has a toy library thanks to Wahconah Regional High School senior Alexandra Bills. Located along the wall at the beach area, the green and blue structure features two shelves with sand toys that can be used to enhance children's visits.
The Parks Commission supported Bills' proposal in February as part of her National Honors Society individual service project and it was installed this month. Measuring about 4 feet wide and 5.8 feet tall, it was built by the student and her father with donated materials from a local lumber company.
Friends and family members provided toys to fill the library such as pails, shovels, Frisbees, and trucks.
"I wanted to create a toy library like the other examples in Berkshire County from the sled library to the book libraries," she told the commission in February.
"But I wanted to make it toys for Onota Lake because a lot of kids forget their toys or some kids can't afford toys."
Bills lives nearby and will check on the library weekly — if not daily — to ensure the operation is running smoothly. A sign reading "Borrow-Play-Return" asks community members to clean up after themselves after using the toys.
It was built to accommodate children's heights and will be stored during the winter season.
Having fun on April vacation doesn't have to break the bank. From baby animals to recreational activities and crafts, there is an array of free or low-cost family events happening across the county this week. click for more
On Thursday, the panel approved a notice of intent application for the use of EarthTec QZ within a specified treatment area of the lake.
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