PITTSFIELD, Mass. — Allegrone Companies asking the city for a tax increment exemption for affordable housing units on North Street.
The project will consist of the building at 24 North St., the former Berkshire County Savings Bank, as well as 30-34 North St.
The City Council on Tuesday referred the request to the Community and Economic Development Committee.
Allegrone's affiliate Ace 24 North LLC purchased the historic bank building in September 2023 for $880,000.
The company is looking to develop 23 units of housing between 24 North and 30–34 North, with 19 of the units market rate, and four considered affordable. The company is investing $15 million in the project.
Mayor Peter Marchetti brought the order to Tuesday's council meeting under the city's Housing Development Incentive Program (HDIP) that was approved in 2012 to encourage market-rate housing development.
In a communique, Community Development Director Justine Dodds pointed out how the HDIP has helped other affordable housing projects in the city that were former commercial buildings through tax exemptions.
"The local tax increment exemption and the HDIP were crucial for the realization of these projects. Without these incentives, the development of these housing units would not have been possible. The new units have brought a significant influx of new residents to the urban center of Pittsfield, stimulating economic development in the downtown area and its surroundings," she wrote.
The building going into HDIP could help Allegrone get $1 million in state tax credits toward construction. The company will have to apply for the credits to the Executive Office of Housing and Livable Communities.
"Both buildings are underutilized and need of significant upgrades. The current economic conditions — locally, regionally, nationally — make it difficult for private investors to secure the commercial financing required for redevelopment," Dobbs wrote.
Allegrone is a well-known name in local housing. It is converting the 1898 Wright Building and the adjacent former Jim's House of Shoes into 35 market-rate apartments and six storefronts and building a 28-unit permanent supportive housing complex at 111 West Housatonic.
It's constructed a number of other market-rate and affordable housing complexes in the Pioneer Valley and the Berkshires, including the 42-unit project on the former Photech mill land in Williamstown.
The tax exemption would be based on the growth portion of the assessed valution over 10 years starting at 100 percent the first year and declining to 10 percent in the final year.
The assessment for 24 North is about $1.3 million and 34-38 North is $408,200, according to the city's online records.
The proposed rent for a two-bedroom unit at 24 North will be $1,800 and $2,500 based on the unit size and a one-bedroom being $1,500 and $1,800. The 30-34 North property will have a one-bedroom rate at $1,800.
In other business, the council unanimously authorized the mayor to enter into a contract with the Massachusetts School Building Authority for a $2 million feasibility study of the Crosby/Conte school project.
The city is in line for 79 percent reimbursement or up to $1.579, whichever is less.
Ward 1 Councilor Kenneth Warren suggested citizens with questions about the contract attend meetings of the School Building Needs Commission and again raised his concerns about the possibility of contract amendments not coming back to the council.
"I'm hoping that the mayor continues to cooperate and work with us so if there's any substantive amendments to the agreement, I would trust that he would come back to us," he said.
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BRTA Looks to Another Year of Fare Free
By Breanna SteeleiBerkshires Staff
PITTSFIELD, Mass. — The BRTA is expecting another year of fare free rides.
Berkshire Regional Transit Authority Administrator Kathleen Lambert told the advisory board recently that she expects to receive $1.3 million in state funding to remain fare free. She said RTAs may be given up to $40 million this year statewide, which is $5 million up from last year.
While the state budget is not formally approved yet, the effect will take place on July 1.
The news came at the same time the board approved the BRTA's budget of $13.6 million, which is an increase of 11 percent since last fiscal year.
Some of the increases were in the fixed route area which jumped from $9 million to $12 million. Lambert said this is due to the contractual agreement between the union where they have a five percent raise for all of the drivers and other union members, as well as a seven percent raise for paratransit fleet operators.
Lambert said much of the costs raised were fuel costs because of the ongoing war in Iran. The authority uses about 8,000 gallons of fuel a month and has planned for $5.75 per gallon.
The customer service desk, which currently staffs two employees, will be shut down, she said. The two employees were given notice months in advance and one showed interest in becoming a bus driver and will plan to interview for that. Lambert said two new drivers have started and that the new transit company Keolis, which is taking over for Transdev, will continue to hold recruiting events. The new manager is Mark Moujabber, taking over for Bobby Quintos.
Lambert told the board she believed there are discrepancies in ridership data. Deputy Administrator Benjamin Hansen, who was in operations before his current role, said the authority has been seeing low ridership because of route cancellations, however, this past month, the numbers did not make sense as demand has stayed the same but ridership seemed exponentially low.
To get the figures, bus drivers must manually push a button on the farebox to record passengers, wheelchairs, and bikes, which might have errors. There are automatic passenger counters (APCs) installed, but they are not certified, so are only used as a rough comparison tool as they are not accurate.
Board member Stuart Lawrence asked if there has been any investigation on if this might be deliberate. Hansen said there is not as he does not know how they could watch for that to happen.
Lambert said she has been working with professor Paula Consolini at Williams College, who will have a group of samplers who will ride the bus and gather a week's worth of data.
In the last meeting, the board spoke about anonymous emails from drivers, and 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.
Multiple employees had also signed on to a vote of no confidence letter in the BRTA administration spearheaded by Raymond Killeen who is a bus driver and represents Cheshire on the advisory board. Killeen said losing Quintos was hard, stating he was an excellent general manager and not having him there led to hardships on accomplishing many things.
"Once the removal was there, it was difficult to accomplish certain things, because we had lost the general manager. So, the letter was an attempt to get things moving a little bit quicker, so we could provide a better service for the residents of Berkshire County. I don't know if it accomplished that. We were able to do some things, though, but the concern amongst rank and file here is that we're not providing the best service we possibly could, and we're hoping that when the new management team comes in, that can be accomplished," Killeen said.
Killeen said he was unhappy with the progress to a revised driver schedule. The day after the meeting, Lambert and the team had a meeting to discuss and negotiate run schedules, Lambert said it was a very good and productive meeting.
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