Factory to Apartments Restoration Requires Tax Relief

Former Ted’s Leather building, 24 Essex St., after redevelopment.

Former Ted’s Leather building, 24 Essex St., after redevelopment.

council_agendaLike other downtown projects, redevelopment of one of the last remaining former shoe factory buildings in downtown Haverhill requires property tax relief to move forward.

Chinburg Properties, Newmarket, N.H., is seeking reduced property taxes for the first five years following redevelopment of the former Ted’s Leather Goods building, 24 Essex St. The company previously won special permits from Haverhill city councilors to convert the building from mostly vacant industrial warehouse space into 56 market-rate apartments and 6,000 square feet of first floor commercial space.

“As we lease up and become stabilized over the early years of occupancy, the requested tax savings are necessary to make the deal economics work,” wrote developer Eric J. Chinburg.

If city councilors approve tax increment financing Tuesday night, developers will receive a 25 percent break the first year and declining to 5 percent after five years.

Chief benefits of the project, according to Chinburg, are preservation and reuse of the building, increased tax income to the city and “additional residents in downtown patronizing local businesses.”

Apartments would include studios and one- and two-bedroom units. Planned improvements include restoration of the exterior to meet National Park Service historic standards, new roof and elevators, fire sprinklers and landscaped patio area at the corner of Essex and Wingate Streets.

Residents would use leased spaces at the nearby MVRTA parking garage.

The Haverhill City Council meets at 7 p.m., tonight, in Theodore A. Pelosi Jr. City Council Chambers at City Hall.

5 thoughts on “Factory to Apartments Restoration Requires Tax Relief

  1. Why wasn’t this discussed when they applied for their special permits?
    So if I’m correct Joe citizen, I can leave my property vacant and expect a tax break from the city? That appears to be your logic.
    Why stop here, give anybody a tax break. Not a good precedent when the city is hurting for money.
    We charge the company permit fees when building city property but yet give a tax break on the backs of the tax payers to a private company.
    Now I ask, what is reasonable??
    Maybe we should ask for more transparency at city hall so that “we the people” know what’s really happening in this city. Come on Joe Citizen isn’t that a reasonable request?

  2. Give them a tax break for 5 years ,in order to get the project done, then collect taxes at the full rate forever.

    Seems reasonable. Or should it remain vacant? Hmmm…what makes more sense?

  3. Special permits, Tax relief……what’s next? If the city keeps giving, the developers will just keep asking and requiring. Time for a backbone. They’ll make plenty with their “market rate” rents.

  4. Tax break for a private company?? In these economic times this shouldn’t even be a consideration!!
    The developer knew what he was getting into and now he’s asking for a break? Give me a break!!!
    If this goes through one would have to wonder what kind of sweetheart deal was set when this project was initially brought to the city.

  5. Available living space is at a premium in the city – all our taxes are going up as well as water rates. There is no need to give these people a “tax break” – they’ll make plenty of money from the development, rent, and leasing. I’ll asl9o assume some of this will be section 8 ( a drain on the city ) and guaranteed income to the owner.

    Enough with the tax breaks.