New Housing Units Planned for Historic North Street Site
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.
Tags: Crosby/Conte project, affordable housing, housing, tax exemption,
