HAVERHILL — The largest and most expensive housing development in city history is expected to have people living in it by October, Mayor James Fiorentini said.
Activity at the former Stoller building on Essex Street and the Lagasse building on Duncan Street is in high gear as Forest City Enterprises of Cleveland moves toward the completion of 303 one- and two-bedroom upscale apartments downtown, the mayor said. The apartments are being built in old shoe factory buildings.
During a recent tour of the Forest City work site, about 160 people were working construction jobs, the mayor said. That activity is expected to peak this summer with about 210 workers, he said.
That complex and other downtown developments planned or already in the works will bring more than 800 apartments and condominiums to downtown when they are completed.
The Forest City project was buoyed by an announcement yesterday from state Rep. Brian Dempsey, D-Haverhill, that Forest City has received preliminary approval for $1.4 million in state and federal tax credits for the construction of housing for low-income people.
"I'm thrilled with the progress of Forest City and the state partnership on this project," Fiorentini said. "It says something when one of the biggest developers in the country and their banks have confidence in Haverhill at a time when hardly anybody anywhere is getting financing for residential development."
The $70 million renovation and construction project, which also is expected to include a two-story garage for tenants, began in the fall.
One million of the low-income tax credits will come from the state and $430,000 from the federal government, Dempsey said. The new subsidy is on top of $6 million in historic tax credits the project has already received. The tax credits essentially give the development group a break on its real estate taxes.
"This project will be a boon for economic development by bringing vitality to downtown through affordable housing," said state Sen. Steven Baddour, D-Haverhill, who announced the state and federal money with Dempsey. "This is an important step forward."
Fiorentini said the housing project would not have been possible without financial help from the state.
The development is the second in a new downtown zone that allows developers to build faster and by spending less money than in the past. Only one local approval is required — from the City Council — to build in the so-called 40R zone.
The zone was approved by the council last year under a new state law, called 40R, that provides financial incentives to communities that help developers build affordable housing near transportation centers and existing urban infrastructure.
Haverhill will receive a one-time payment from the state of $3,000 per new home built in the zone — more than $900,000 when the Forest City development is completed and fully occupied.
The low-income housing tax credit is a federally authorized program that assists in the production and preservation of affordable housing for low-income families and individuals. It supports qualified acquisitions, new construction, and rehabilitation of existing rental properties.
"Today, the junkyard is cleared, and you can almost see the green space, courtyard and parking they are making," Fiorentini said of the Forest City work site.
About the Forest City development
r 303 one- and two-bedroom apartments being built in old shoe factory buildings
r 160 people are working on construction jobs there
r 210 workers will be the peak total number this summer
r An October opening is planned
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