EASTHAMPTON — The One Ferry Street project, an ambitious multimillion dollar effort that began a decade ago to redevelop the former Ferry Street mill complex into a series of housing and commercial spaces spread across five new buildings, has crossed a significant milestone.
The City Council at its Sept. 17 meeting authorized borrowing up to $3 million from the city to allow a private developer to demolish an old mill building at 11 Ferry St., and to construct public utility services, public parking and a multi-use path connecting the street to the Manhan Rail Trail.
That work will pave the way for construction of a new five-story, 96-unit complex that is highly energy-efficient. The $51 million development will include 61 one-bedroom units and 35 two-bedroom units, with 134 parking spaces. Ninety-one of these apartments will be considered affordable.
“This piece is one of the most important pieces to get everything else going,” Interim Mayor Salem Derby said at the meeting, referring to the $3 million authorization.
Project construction for 11 Ferry St. is managed by Springfield nonprofit Home City Development Inc., which has an option to lease the 2.73-acre property from One Industrial Lofts LLC, the group that is overseeing the larger redevelopment of the 7.16-acre, six-building former mill complex on Ferry Street.
Currently, the 3 and 5 Ferry St. properties have been redeveloped into market rate residential and office space. There are plans to develop 7 Ferry St. — estimated to be a $41 million housing development for 77 market-rate units — and 9 Ferry St. for commercial and residential space.
Before the lease agreement is finalized between Home City and One Industrial Lofts for 11 Ferry St., the building needs to be demolished, which is anticipated to happen within six months. Construction is planned for mid-2026 and to be completed in late 2027, according to Peter Serafino, senior project manager for Home City. By the end of the lease, Home City will own the property.
“This is going to be an increase to the level of volume we really need to see not just from us, but also from other affordable housing-focused companies,” Serafino said about the project.
Serafino said a primary goal of the 11 Ferry St. development is energy efficiency. The building is being designed in accordance with Energy Star and Zero Energy Ready certification standards, complete with a rooftop solar array and electric vehicle charging stations.
The development is one project in a major push for housing development in Easthampton, aiming to fulfill the state standard of 10% affordable housing stock in the city.
“I am really excited about this project …” Precinct 2 Councilor Felicia Jadczak said at the meeting. “This is going to bring in a lot of revenue in the future for the city and a lot of needed housing.”
The property is part of Easthampton’s Ferry Street Development District, created by the city in July 2018, when redevelopment efforts began. The district was created using an economic development tool called District Improvement Financing (DIF) through the state.
The DIF district was developed in conjunction with a payment in lieu of taxes program (PILOT) so the developers can plan payments back to the city for the next 25 years, aiming to incentivize private development on the parcels. By the end of that time, the city will have received back much more than the amount they allowed to be borrowed.
At the Sept. 17 meeting the council also approved of the creation of the Ferry Street Invested Revenue District Development Program (IRDDP), through a Invested Revenue District. All of these programs act as seeds that essentially creates a plan to store funds in an account made from the IRDDP to be used for infrastructure improvements.
The project at 11 Ferry St. has already been approved for several sources of funding, including a $4.4 million grant from the state’s HousingWorks Infrastructure Program, and $500,000 in Easthampton Community Preservation Act funds. Additional funding sources include $11.3 million in soft debt from the Massachusetts Executive Office of Housing and Livable Communities, and 4% and 9% Massachusetts Low Income Housing Tax Credits.
“If you’ve been around Easthampton for a while, this whole area really needed improvement there’s no doubt in anyone’s mind,” said City Council President James “JP” Kwiecinski at the Sept. 17 meeting.