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Date: 11/11/2020
EASTHAMPTON – The City Council and Planning Board hosted a joint meeting on Nov. 4 in regard to an alternative tax payment, called a 121A agreement, for Michael Michon, the developer of the 1 Ferry St. housing project.
The developer’s lead counsel Jane Mantolesky, said the 121A is overseen by the Department of Housing and Community Development.
They allow and authorize the creation of certain Urban Renewal Cooperations by private developers to undertake the redevelopment of properties that are blighted or derelict.
“The 121A is really essential for the Ferry Street project because this project was not able to get historic tax credits which was really irritating in this whole project,” Michon said.
He added that because they took down the bell tower due to safety concerns, he did not receive grant money from the historic preservations.
The council voted to move this item to the Finance Committee and Planning Board who will have a joint meeting on Dec. 16.
“Instead of paying the full tax on property, it is an agreed-upon reduction based on a project that is determined to have benefits to the City. Without a 121A agreement, as the project is developed the assessed value will increase and tax payments will increase based on the tax rate of the city,” City Planner Jeffrey Bagg explained.
He added that it reduced the developer’s costs over time and guarantees the city some payment in place of real estate taxes.
In the meantime, the Planning Board and the developer’s team will meet on Nov. 17 at 6 p.m.
Bagg said they will review certain elements of the property and project and make determinations that the area meets the definition of blighted or decadent, the project is not in conflict with zoning or other city ordinances, the project does not conflict with the master plan or other plans, and that the project is not detrimental to the public safety or public interest.
Mayor Nicole LaChapelle said the Planning Board has 45 days to deliver a report to the City Council and then the council has 90 days to present a report to her. LaChapelle will then enter the agreement, modify the terms of the agreement or reject it.
If the developer is granted the alternative tax payment, he will have it for 25 years. If he does not receive it, Bagg said he imagines it could slow, halt, or make future phases of the project not financially feasible.
Reminder Publishing attempted to reach Michon, but did not receive a response as of press time.