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Work is underway on the South Street hotel with a target opening of spring 2025. A tax exemption was first requested in 2021.

Pittsfield Holiday Inn Express Seeks Further TIF Extension

By Brittany PolitoiBerkshires Staff
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PITTSFIELD, Mass.— The COVID-19 pandemic's effect on construction costs continues to delay an upcoming Holiday Inn Express.

On Tuesday's City Council agenda is a request to amend a tax increment financing agreement between the city and Somnath LLC, initially approved in 2021. The company is seeking a second two-year extension because of higher construction costs, supply chain disruptions, and the need to secure additional financing.

"Remember, all these businesses that get a TIF pay taxes and in the case of this hotel, once they're open there will be hotel, motel taxes that the city will be receiving as well," Mayor Peter Marchetti said on his biweekly television show One Pittsfield on Monday.

"So it's important to help businesses out as we go along to be able to help the city out too."

The new hotel is expected to create between 25-30 jobs, 15 of them full-time positions.

In 2022, the city approved a two-year extension for the TIF that would will forgive about $755,000 in real estate taxes while generating more than $1.27 million in tax revenue. The original build was estimated at $10 million and has been inflated to over $13 million.

Still, representatives Mauer and Dilip Desai expect for the hotel to open in the spring. Located behind the former Dakota Steakhouse, construction is well underway.

Marchetti said the family is well established in the community, having successfully owned and operated several hotels in Pittsfield and the surrounding area including the Best Western Plus on West Housatonic Street.

"We are requesting this extension as our original groundbreaking date and hotel opening date have been pushed back due to the COVID-19 pandemic,"  Mauer Desai wrote to the city.

"Increased construction cost and issues with the supply chain for delivery of materials pushed the start of the construction back. We were forced to seek additional financing to begin construction which resulted in a delayed groundbreaking. The construction is now underway, and we are confident in a spring of 2025 opening."


Also on the agenda is a proposed amendment to the city code's chapter on tax title agreements and an order of permanent taking by eminent domain of two parcels on Wahconah Street in connection with the Bel Air Dam.

Marchetti explained that the ordinance change is due to recent changes to the foreclosure and tax title process made by the state Legislature and signed by Gov. Maura Healey.

"The down payment requirement will now change from having to have a 25 percent down payment to a 10 percent down payment," he said.

"The maximum length of the agreement is increasing to 10 years from 5 and the percentage of interest allowed to be waived increases from 50 percent to 100 percent as determined by the municipality."

The requests for permanent taking on Wahconah Street is for the demolition of the Bel Air Dam.

Last year, $20 million in American Rescue Plan Act dollars were allocated to remove the deteriorating, potentially deadly dam on Wahconah Street. It has been an area of concern for more than a decade, with the city and the state Department of Conservation and Recreation conducting inspections, maintenance, and repairs. In 2020, it was identified as a high-priority project.

"For nearly 20 years, city staff have been concerned about the deteriorating state of the Bel Air Pond dam after local owner withdrew from their responsibility for maintenance and upkeep. Working closely with the Mass Office of Dam Safety, the city has been monitoring the structure and providing local support as needed," Marchetti explained.

"In 2019 an assessment of options was performed and it was determined that the best course of action was to seek wholesale removal of the structure."

Design engineering has been occurring since last year and environmental permits are nearly secured for removal of the dam and about 35,000 cubic yards of contaminated materials.

"For this project to proceed into construction the two parcels that make up the project site must be in local control," the mayor said.


Tags: motels, hotels,   tax exemption,   

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BRTA Focuses on a New Run Schedule

By Breanna SteeleiBerkshires Staff

PITTSFIELD, Mass. — The Berkshire Regional Transit Authority is still working on maintaining its run schedules after dropping the route realignment proposal.

Last Thursday's meeting was Administrator Kathleen Lambert's first official meeting taking over the reins; retiring director Robert Malnati stayed during a transition period that ended last month.

Lambert is trying to create a schedule that will lessen cancellations. There was a two-hour meeting the week before with the drivers union to negotiate run bids and Lambert is working with the new operating company Keolis, which is taking over from Transdev.

The board spoke about anonymous emails from drivers, which Lambert said she has not seen. iBerkshires was not able to see those letters, but has received some. 

"They were lengthy emails from someone describing themselves as concerning BRTA employee, and there was a signed letter from a whole group of employees basically stating their concerns. So, you know, to me, it was a set of whistleblowers, and that, what my understanding is that this really triggers a need for some type of process to review the merits of these whistleblowers, not going to call them accusations, but basically expressions of concern," said member Stephen Bannon.

A letter iBerkshires received spoke of unhappy drivers who were considering quitting because of decisions being made without "input from frontline staff," frustration and falling morale, and the removal of the former general manager shortly after Lambert came in.

Lambert said it's difficult to navigate a new change. She also noted many drivers don't want to do Saturday runs and it has been hard negotiating with drivers on the new runs.

"I would like you all to keep in mind that the process of change is super difficult. Transdev has been here for 20 years, and some of these drivers have never known any other operating company, the way some of the operations have been handled has been archaic," she said. "So getting folks up to speed on how a modern transit system works is going to be painful for them. So I don't want to say that I'm unsympathetic, because I am sympathetic, but I am trying to coax people along with a system that's going to seem very strange to them."

The board spoke about better communication between them and Lambert, citing cooperation will be best moving forward.

"There's just a lot of stuff in the air right now, and there are a lot of fires to put out to make this a coordinated effort. And if we don't keep our communications open and be straightforward, then you get blindsided about how you know the input that you could get from us about your position, and how you know what's going on in your direction, and we get blindsided. And I think that we have to make sure that this is a collaboration," said member Sherry Youngkin.

"Both sides have responsibilities, because in the long run, this advisory board is going to have to make decisions as to how we brought forward and if we've gone forward in a fair and helpful way. And I think that's hopefully what everybody is looking for also." 

Transdev and Keolis held a three-day recruiting event interviewing almost 40 candidates and offering jobs to eight, but only three stayed on to start training. Lambert said it was disappointing but she will keep trying to retain more people.

In her first report to the board, she noted that ridership dipped a little over 10 percent, but still remains higher than last year, adding that was because of cancellations of services because of the lack of drivers.

Like the last meeting, some of the advisory board members were torn over the start of the Link413 service, worried that the start of the service took drivers away and the numbers of riders are low.

Lambert, however, said the ridership has doubled from last month.

"As I've spoken before, we have, generally, a six-month adoption for brand-new service before you can really go in and evaluate, are you being successful based on the grant that my predecessor wrote along with the team for PBTA and RTA, we are ahead of schedule, which is pretty good, so I'm hoping that will continue to improve," she said.

Member Renee Wood said the board never approved the service, adding the only thing she could find in the minutes was a vote to accept the equipment. She said it was supposed to be put on the agenda to discuss.

"The Link413 service has been three years in the making. It's been a grant that was accepted and has been working with our partners, PVTA and FRTA, to put into place. So I don't have the entire history of how that process worked, but it's been three years in the making, and did we not understand that once we accept that grant that we were going to put in new service?" Lambert said.

The board discussed if Title VI, the Civil Rights Act, was followed with an accurate review and accurate amount of time for public comment period on the service changes and if its attorney should review if the  grant conditions were properly followed.

Lambert said changes had the 60-day comment period included in the proposed route realignment packet, giving the opportunity for the community to respond to that as well but will look into the legality of the situation with their attorney.

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