4.15.2025 Tax Increment Financing Board

the order the April 8th meeting of the uh tiff board. Um Matt, would you please call the role?

Um Sean Kadim here. Linda Pereira here. Richard Gonzalez here. Mayor Kan here. I also want to announce that um Sean Kadim is joining us remotely. Um, pursuant to the open meeting law, any person may make an audio or video recording of this public meeting or may transmit the meeting through any medium. Attendees are therefore advised that such recordings or transmissions are being made whether

perceived or unpersceived by those present and are deemed acknowledged and permissible. Do we have any citizens input today? None, Mr. Mayor. Um, I I'll entertain a motion to approve the minutes of the March 19th tiff meeting.

Motion. Second. I have a motion to second because um councelor Kadim's joining us remotely. All roll calls will be recorded. Um uh Mr. Kadim, yes. Miss Barrera, yes. Mr. Gonzalez, yes. Mayor Coogan, yes. Passes for nothing.

Tax increment. First one on the agenda tonight, item number six is a request for mass can capital. Is anybody going to talk on that one? Yeah, Mr. Mayor, I'm just going to give you a brief uh synopsis and then Mr. Fiola. Okay. And I believe the proponents are here as well.

So, this is a project at the old Globe Street Mill. Um it's located at 460 Globe Street. Uh there will be 89 market uh rate residential units. They'll the units will have four studios with a rent of 1,875, 57 onebedrooms with a rent of 2,235 and 28 twobedrooms with a rent of 2550. It's a 10-year tiff. The market rate percentage is 100% under the 10-year tie. Excuse me. It would be 80%

for the first five years, 20% for the um last five years. Um Mr. Viola.

Yes, thank you.

Um I I need to stand because I hurt my back so I apologize. Um this morning we have uh the project proponent from Massan who can um actually speak in much more detail about the project itself. I think uh from me developed housing perspective, this project uh is very significant in the sense that it helps to restore for an adaptive reuse purpose um the old Beyond Mills on Globe Street

and it's a a project that's going to I think greatly enhance that neighborhood in terms of providing residential opportunities to the citizens of for greater for per se. But more importantly, it's a very significant investment in a building that is um while it's still structurally sound and conducive to development uh much needed repairs are necessary for it to u become a productive member of the overall

corporate community in the state. So Ed, if you want to come up introduce yourself and elaborate a little bit further upon the project itself. And while he's coming up I just want to note that this is one of the first ones where the vote is going to be contingent upon mass can actually purchasing the property. They have a purchase and sale agreement on the property, but they don't own it yet. That's allowable under

the rules. And so the vote when you do take it, the language says that it's contingent upon their acquisition.

Ed Hamlu, I'm the principal at Mascan Capital address 165, unit 404, Norwood, Massachusetts, 02602.

Tell us what you got. We are proposing to convert this building out of this this historic complex goes back to uh goes back to about 1882. And this is uh one of the three buildings in this complex that we are now. They're completely separate. Uh it is a historic building uh designated historic building and we are proposing to convert this historic uh to market rate uh units at this time

and uh currently under utilized less than 20 30% occupancy. It is in a a fair condition but it needs immediate attention as well and it provides the parking has surface parking have access to water and sewer. So we are not really proposing to making any major changes to the infrastructure. The project itself would be able to support uh we are trying uh anything available to make the project as sustainable as possible

feasible. In other words, we are going to use all the technology that is financially economically feasible for this project. As a matter of fact, uh uh I'm I'm headed to New York next week for geothermal conference to see if possible financially. We use geothermal heat pump in this project. So, and go all electric and a combination of solar panels and uh geothermal heat pump might cover 60 70%

of heating cooling and hot water of the building. So uh this is a little bit uh you know dreaming at this point but that is our goal if we can do that that would be the first project in the state of Massachusetts on a private site using uh uh geothermal. I'm if you didn't get the geothermal you got a fallback position.

No no but we use other type of heat pumps. Okay. That that's your fallback.

Yes. Okay. That our electric heat pump is our base case scenario. Okay.

geothermally, you know, a little bit uh outreach. Any questions for Ed? I do.

Richie, can you tell me your total investment? What What's it going to be?

The total development cost would be close to $39 million. $39 million. Okay.

Any anybody got anything further?

I don't. So, Mr. Mayor, the appropriate motion would be to recommend approval of the 460 Globe Street Tax Increment Agreement contingent upon Massan Capital LLC's acquisition of the subject property to the city council.

Do I have a motion? Motion. So move.

Second. Second. I have a motion to second. Again, we call the role on Mr. Kadim.

Yes. Mr. Pereira. Yes. Mr. Gonzalez.

Yes. Mr. Mayor, yes. Pass is 4 nothing.

Thank you, Ed. Good luck. Thank you.

Thank you. Thank you. Next item on the agenda is a tax increment exemption for the Cook Pond Realy 2492 South Main Street.

Uh Mr. Mayor, this project which is called the overlook at Cook Pond is a housing development at 2492 South Main Street. It's the merger of a couple of parcels out there out by the water tank.

Uh the project includes 22 three-bedroom residential rental units. So, uh and these will be spread out over eight town houses. This is a I think the first time we've cut tie on townhouse properties.

So, there'll be eight townhouse buildings and between those eight townhouse buildings, there will be 22 three-bedroom residential units. The rental price will be $2,900. Um, it's 100% market rate.

Again, uh, it's a 10-year tie with 80% uh, exemption for the first five years and, uh, 20% for years 6 through 10. Mr.

Tyler, thank you.

Thank you, Mr. Thomas. Um, once again, um, this project here represents a pretty significant investment in South.

It's complimentary to what's occurring at the 460 Globe uh Globe Mill property.

This one here is a little bit different.

It's groundup construction. So, it doesn't have the benefits that, you know, some of the mill conversions have in terms of historic tax credits for the overall project. Um, this project actually is going to be located directly across from the 251 South School. Uh, there's a big water tower there if you're familiar with that area.

sort of next to that water tower. It's land that's been sitting vacant for a long period of time. So, it's going to be a very welcomed amenity to the south end and providing uh first rate housing at the um at the particular location there. Um we've worked with the HA family in the past, Ha family, and we have Chris H with us this morning. Um the Hija family has invested in the uh

former the Notre Dame school and converted that and they're also in the process of converting the Sacred Heart uh rectory um property for additional housing over there. So they have an established track record within the within the U community and their reputation is uh stellar and we look forward to their investment here. In this particular vote, there's one thing that you need to keep in mind. We're

expecting the amended HDP application to allow this into the zone to take place any day now. So, we just want to make that as a contingency approval if you can, Mr. And with that, I'll have Mr. Ha come to the table to explain a little bit further.

Good morning. Good morning. Thank you everyone for taking the time. Um, so a little bit more about the project.

because they said it's 22 town houses, um, eight different buildings. So, there'll be two or three, um, town houses per building, um, three different floors, and on the first floor, there'll be a, uh, a garage. And then there's also we're planning on putting electric car chargers um, in each of those garages. And the units will be all um, all electric as well.

Um, what else? Overlook the pond is the trophy overlook the pond. Yes. So some of the that's why we named it the overlook the cook pond. So some of the units you will be able to see um see the pond from the from the units and like I said three bed two and a half baths and um if there's any any questions.

It's all new construction. That's a vacant lot right now. Yes. All ground up ground up construction. Okay. How long has that lot been vacant? I mean, long time. Long time. I think I think stuff for the longest time I always thought it was a city lot because it was adjacent to the um Yeah. tank water tower, right?

And we never owned it. No. And we never owned it. We never owned it. When we were doing the school out there, that's when I think people start to we started talking about it. Yeah. Right. We acquired it to who owned it and at the same time simultaneously the HR family uh was looking to acquire it from the party that I think the party that owned it own the apartment building. to it.

Yes. Tower Tower Hill.

Yeah. And so that's been a huge success also.

Any questions? One more. I have a question. Uh when we say townhouse, they're not condos, right? Nope. Okay.

Okay. All rental. Okay. They're rental apartments, right? Yes. Good. Okay. Any further questions for Mr.

Aar? Mr. um Thomas, you want to make sure you read us the motion. So we do it correctly.

Mr. Mr. Mr. Mayor, can I just just quickly I do got a couple questions. Go ahead, Mr. Kadim. So, thank you. So, did you mention they're all market rates?

So, there's no affordable in this.

Correct.

And then, so if I heard correctly, it's just it's just an open field. So, we're not looking for any development of an existing building or anything like that.

No, just an empty lot right now.

have. So my question is how many communities actually give these types of incentives for open space that especially space that's not is it contaminated any any cleanup?

Uh no, there wasn't if I can just intervene here conflict. There wasn't a lot of but there were some there were some mitigating factors with regard to uh some of the um geotech uh that had to take place with the bringing in of the um the water, sewer and the gas. Uh there's a lot of ledge throughout that area and that's probably why that lot has sat vacant for so long. you know,

you had premium and development cost associated with the uh with the project.

We've also done a couple of other ties for other groundup projects. Uh most notably um there's one going we just uh the tiff board as well as you guys had previously approved for 290 Befford Street which is a groundup project and also for Turner Deval Street which is also a groundup project. In those two instances, we took out properties that were there, demolished them to make way for the new

construction. This one here is just vacant land uh with premium site development costs that, you know, makes the project a little bit more expensive than it ordinarily would be.

But on um so I I I know the one we just did a couple of weeks ago or last month was it at least had what one or two um affordable units, right? What what about the other the other site that you mentioned? Right. So the problem so the issue with groundup construction um it's it's more challenging for any developer now because historically most of our residential conversions have been

for conversion adaptive reuse of mill space. And like the project before us, which was just approved, the developer there stands to uh gain the benefit of uh historic tax credits to offset their overall development cost. So, for instance, we had a $30 million cost um on the proposed project that was just approved, you know, uh 20% they would get a 20% historic tax credit from the

feds and a 20% historic tax credits from the state. So you're looking at close to $8 million with regard to historic tax credits to offset the cost of that development. Ground up is not afforded that type of uh incentive because obviously there's nothing historical about new construction. So when we're doing ground up, it's much more expensive for the developer to undertake these types of projects. And in this

instance, it's even exacerbated a little bit further by the uh by the geotech conditions of the site itself.

Okay, I yield. Thank you. Thank you, Miss Kadine. Any further questions?

So the appropriate motion would be motion to recommend approval of the 2492 South Main Street tax increment agreement to the city council contingent upon expansion and inclusion in the house in the HD.

Motion.

Second. I have a motion and a second.

Any further discussion?

Mr. Thomas, would you please call the Mr. Kadine?

No.

Uh, Miss Pereira, yes. Mr. Gonzalez, yes. Mr. Mayor, yes. Fails.

Three to one. You need four votes to pass it. Four votes to pass it. Okay. Is that your quorum? And that's what you need. So, you need four to nothing. So, it fails.

Okay. All right. Anything further to come before the board? Any new business?

Any old business?

Hearing? None. Uh, let's entertain a motion to adjurnn. Second. We need a motion. Motion. Oh, second. Motion to second to adjurnn. Any discussion? Mr.

Thomas, please call the role. Mr. Kadin, yes. Miss Pereira, yes. Mr. Gonzalez, yes. Mayor Kan, yes. Meeting adjourned.

Thank you. Thanks, Sean. Thanks.