By Seth Daniel
A new, revamped effort by the Chelsea Housing Authority (CHA) to build a mixed-income development on Central Avenue will likely come with a significant Tax Increment Financing (TIF) request, said City Manager Tom Ambrosino.
The new proposal, which is a second attempt by designated developer Corcoran Jennison, will likely come before the City in February or March. However, this time Ambrosino said it’s probably going to also be accompanied by a request from Corcoran for a TIF agreement.
“It will not be an insignificant amount for a TIF,” said Ambrosino. “From the City’s perspective, we’re motivated by the fact there is no other way to get that development rebuilt. This will give those resident brand new units in a mixed income development. Right now, we’re getting zero tax dollars on it, and we would be getting something from the developer if this is built.”
The development was proposed in 2017, but was beat back when Corcoran requested the City Council allow them to use some non-union labor on the project to make the finances work.
A large group of residents and union workers appeared at the meeting on the night of the vote, and the Council agreed with them, shooting down the request.
Nothing has happened since, but it appears that to make the books balance, Corcoran will be looking to get some property taxes reduced for a period of time.
“The City will be sympathetic,” Ambrosino said. “I want that project to move forward. That’s going to be a huge upgrade for those public housing tenants.”
Historically, the Council has been accommodating for TIF requests, but in recent years many councillors have began to question whether they are really needed any longer. It will likely be a spirited debate once again within the board.