North Adams Mill Owners Requesting Five-Year 'Increasing' Tax Exemption
NORTH ADAMS, Mass. — The owners of the Greylock Mill are asking for a tax break as they invest $18 million into the massive building over the next five years.
The City Council on Tuesday will decide on a special tax agreement that will raise the property tax on the more than 240,000 square foot building from zero to 100 percent over five years.
In his communication to the council, Mayor Richard Alcombright wrote that "the STA has been drafted in compliance with all state regulations and provides for tax benefit to Greylock for the significant investment and eventual job creation while fully protecting the City should certain milestones within the agreement not be met.
"Additionally, Greylock will be required under the agreement to provide reporting that demonstrates their compliance with the terms of the STA."
The mill, also known as the Cariddi mill, was purchased by Salvatore Perry and Karla Rothstein, principals of Latent Productions of New York City, an architectural design firm, last July. Latent, under the name Greylock Works, plans to transform the former textile mill into a multiuse space for artisanal foods, hospitality, residential and performances.
Work has already begun on what's being called "The Shed" portion, a long one-story building that is being renovated for food production and event use. The building is currently vacant, although a successful dinner and dance party was held New Year's Eve that attracted hundreds.
"This is a complex project that we believe can catalyze solution to some of the pivotal challenges of our time — intelligent adaptive re-use, environment and energy, and interweaving culture with business. The total estimated cost of this endeavor is anticipated to exceed ten [sic] million private dollars," according a letter submitted by Latent Production with its application for the Massachusetts Economic Development Program in North Adams.
Current taxes on the mill are $28,769.45, based on an assessment of $759,200. The STA formula as prescribed by state law sets year 1 at zero; year 2 at 25 percent; year 3 at 50 percent and year 4 at 75 percent, and year 5 (fiscal 2022) at 100 percent. The STA only exempts property tax, not personal property taxes as in a tax incremental financing agreement.
In granting the STA, the company would have to meet investment benchmarks, stay current on all other fees and taxes, and "use its best efforts to encourage tenants to hire City residents" and work with local schools, colleges and Regional Employment Board to provide opportunities for training and employment.
The agreement being set before the council states "The Project is expected to provide economic benefits to the City through significant investment in the building which will bring new businesses, and have a positive economic effect in the Route 2 commercial corridor in the City; and,
"The City strongly supports this increase in economic development to provide additional jobs for residents of the ETA, the City and surrounding area, increased commercial and industrial activity within the City leading to the further development of a healthy and diverse economy while growing the tax base ... "
Greylock Mill has already invested more than $2 million in the property, including its purchase and closing costs. By the end of this year alone, it expects to have put in more than $5 million, according to its investment schedule.
"We envision this currently dormant and increasingly vulnerable mill complex becoming an incredibly vibrant place to live and work," Latent Production's letter states.
The agreement will include designating the parcel on which the building sits as an "Economic Opportunity Area."
Also at Tuesday's meeting, the council will make final votes on several ordinances and salary changes, and set the bonding for the city treasurer, assistant treasurer and clerk.
Three issues being brought forward by councilors are expected to be referred to committee. Councilor Joshua Moran has submitted a communication from constituents regarding the lack of off-street parking during the winter parking ban.
Aleksandr Lisser and residents of Veazie Street are asking for a solution to winter parking because they have no place to park during a snow emergency and often get ticketed, placing them in an "impossible" situation.
Councilor Keith Bona is bringing forward what he says is one of three housing policies he plans to submit this term. This first one calls for a nuisance ordinance that would put pressure on landlords whose tenants engage in drug use or trafficking on their properties.
"The idea is when police make an arrest for illegal drug activity and possibly other crimes at a residence, the owner will be notified by registered letter. If the owner does not take action to evict the tenants within a limited time the city could enforce fines," his letter to the council states. The communication includes policy for eviction for drug use in place in a city in New York State.
Councilor Kate Hanley Merrigan is requesting the council approve a resolution supporting two House bills seeking to protect consumers from paying for leaks in natural gas lines and forcing utilities to repair them. The Pittsfield City Council endorsed the bills in November.
According to HeetMA.org, there are at least 37 leaks in North Adams with the oldest dating from 2009, and 101 in Pittsfield.
Update: Edited headline to clarify content to encourage readers to read the full article.
Tags: drug crimes, eviction, greylock mill, natural gas, parking ban, tax agreement,
