The city council last night unanimously approved a tax incentive program aimed at attracting development, particularly housing, to downtown Concord and Penacook. The program would allow developers to make improvements on a building without paying taxes on the improvements for the first five years, as long as the project is approved by city council. The tax value would essentially be frozen at the pre-redevelopment level, though it would be adjusted for changes in the market.
The Legislature created the incentive in 2006 and several other communities, including Manchester, Berlin and Pittsfield, have adopted it since. The incentive is one way that city officials hope to bring new development to Main Street's upper stories. They're also working on overhauling the city code for older downtown buildings and creating parking options for residential units.
Deputy City Manager for Development Carlos Baía said the program will help the city promote itself as friendly to economic development. "It does position us ahead of other communities in the state and in the region," he said. The five-year tax deferral could be extended by two years for projects that add housing units and by four years for those that bring in affordable housing. Another four years could be added for projects that renovate buildings on the state or national historic register.
To qualify, the rehabilitation must add at least 15 percent to the value of the building or cost $75,000, and it must be located in designated "opportunity corridors" in Penacook or Concord. In Concord, that stretches from the Merrimack River to about State Street and from Horseshoe Pond to the South End Marsh.
Councilor Liz Blanchard said she was surprised to see that in Penacook the designated area surrounds the tannery but does not include buildings on Village Street. "I don't understand how downtown Penacook can be overlooked as potential for revitalization," she said. Business Development Coordinator Ken Lurvey said it was an oversight.
Councilor Dick Lemieux also said he would like to see the Concord area expanded. Mayor Jim Bouley suggested the council pass the program to put it into effect immediately and form a subcommittee to look at areas for expansion. Any changes would have to have a public hearing and be approved by council.
Nan Hagen, executive director of Main Street Concord, a nonprofit focused on downtown enhancement, said her group is focused this year on attracting upper-story housing to Concord, where some floors are vacant and need renovation. "I think this legislation might be the tipping point in getting some of these projects accomplished," she said.
Lurvey said if a developer does not use a building for its stated purpose, then the city can place a lien on the property. The tax relief is discretionary and may be revoked at any time. "It's a pretty fail-safe program, I think," he said.
Source: ConcordMonitor.com