EASTHAMPTON — The 1 Ferry Street mill renovation project is a step closer to receiving a 30-year tax break after a City Council vote on Wednesday night.
The council’s vote enables Mayor Nicole LaChapelle to send a report on the project back to the state, which must enact its own review and approval.
Under the agreement, the One Industrial Lofts, LLC, project will be subject to an alternative tax payment for 30 years, which will create a scheduled rate ultimately resulting in the developer paying less in taxes to the city.
Developer Michael Michon, who owns and developed Mill 180 on Pleasant Street, is renovating the vacant mill buildings into a mixed-use complex of 152 residential, commercial and office spaces.
LaChapelle supported the agreement, stating it “has many public benefits, which satisfies the state’s reviews, but also our own.”
While the agreement will ultimately result in Easthampton receiving less tax revenue from the project over the 30-year period, those in support of the tax break say that the benefits of redeveloping the dilapidated mills justify the reduced rate for the developer.
“It is an enormous risk and enormous project, and it is a huge economic development for the city,” said Council Vice President Dan Rist. “It is the last mill area that needs to be fixed.” The agreement is necessary for the project to move forward, according to Rist.
Councilor Owen Zaret said he had “been really struggling with” the issue, noting that he understands some are concerned about the tax break for a developer in light of tax increases for residents, but noted, “I think at the end of the day, I agree with the sentiment expressed here that if we do not offer some of the concessions in (the tax break) that this just won’t be built.”
The tax agreement, established by state law, allows reduced tax rates for developments located in areas with high tax rates, under the condition of the development serving a public purpose.
Jacquelyn Voghel can be reached at jvoghel@gazettenet.com.