Corcoran,CHA Ready to Present New Plan for Innes Street Redevelopment

November 17, 2018
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The Corcoran Development team and the Chelsea Housing Authority (CHA) are ready to kick-off discussion on their new plan to re-develop the Innes Housing Development into a 330-unit, mixed-income development in two phases.

The plan has been tried before, but was derailed early on, and now with a new financing plan, and some new additions to the old plan, the team believes they have something that the existing residents and the community will be proud of.

The 96 public housing units will be re-developed with 40 middle-income (80 to 120 percent of the AMI) units and 194 market rate units. The project will go in two phases to reduce relocation of residents – with none believed to have to leave Chelsea or any CHA properties.

There will be 226 parking spaces on site, and the developer has said they are willing to do traffic and parking studies to perhaps help the overall neighborhood with street parking.

“The whole reason we’re here is they need new housing for existing residents, but it’s a great opportunity to also develop market rate units alongside it and take advantage of the Silver Line,” said Ronnie Slamin of Corcoran. “It is privately funded. That helps us speed up the process so we don’t have to go through the process of applying for tax credits…We’re also going to be providing amenities and services to the existing residents to improve their schooling. We want to provide services for them to be able to go from public housing to middle income housing to a market rate unit. That’s the goal. We’re planning services like financial literacy, job training, and local hiring events.”

Resident Jean Fulco said tenants are very excited at Innes.

“There is no place to play for the kids now,” she said. “We need bigger rooms. The rooms are too small and bigger cabinets and everything up to date.”

Added resident Melissa Booth, “It would be great to get new apartments and get a new playground. I have two young children and there isn’t a lot of places for them to play here. It’s cramped at the existing playground. The new plan has a bigger playground and it will be a great place for everyone to come and play. It will become a place that kids want to come back to if they want to stay in the area.”

Each of the units will be identical, she said, and no one unit – whether public housing or market rate – will be different.

“There’s not going to be a rich door and a poor door here,” she said.

CHA Director Al Ewing said the lease will be for 99 years with Corcoran, which is the maximum allowed by law. While other such deals are 15 to 35 years, he said they have chosen to go for the maximum.

“It’s important we have this public private partnership so we can have a new development,” he said. “You can’t improve this. You have to replace it. It’s like when you have an old car. At some point, it doesn’t make financial sense to fix it anymore. You have to go and get a new car. That’s where we’re at.”

And Ewing also said there is a sense of urgency, as state monies dedicated to the project could go away soon if there isn’t movement on the project. That is why they’ve scheduled a meeting with the City Council on Tuesday, Nov. 20, at 6 p.m.

“As state financing goes, when you set it aside money they want to see it spent in a timeframe or they will want to re-allocate,” he said. “They want to see this project show some movement forward or they will re-allocate that money.”

Meanwhile, to fix the previous problems, the project will be asking for a 15-year Tax Incremental Financing (TIF) deal that will allow them to pay a percentage of the taxes in three five-year periods.

The first five years, they would pay 20 percent; the second five years they would pay 40 percent; and the final five years they would pay 50 percent. After that, they would pay the full property taxes due.

Joe Corcoran and Ewing stressed that the City would not be losing any money. Right now, as part of a PILOT program, the City would get $51,000 for Innes over the same 15-year period. Meanwhile, with the TIF in place, they said the City would receive $3.4 million in new revenues.

“Even with the TIF in place, you’re still getting $3.4 million in new revenues because the City would only get $51,000 if things stayed as they are,” he said.

The TIF will be the deal-breaker to close the financing gap and allow the project to pay a prevailing wage – which was what derailed the first project attempt.

On the matter of relocation, Ewing and Slamin said they would be building the project in two phases, with the western 48 units coming down first.

Ewing said they have enough space to house residents in Fitzpatrick and Prattville Developments during relocation in the first phase.

“We believe we will be able to house those relocated in other state family developments in Chelsea,” he said.

Slamin said the developer would pay for all moving and relocation costs for residents displaced in the first phase.

The process will kick off at the Nov. 20 meeting.