City Manager Tom Ambrosino indicated that a revised mixed-income development proposal from the Chelsea Housing Authority (CHA) on Central Avenue will probably include a substantial Tax Increment Financing (TIF) request.
Corcoran Jennison, the designated developer behind this second attempt at the project, is expected to submit the new proposal to the City sometime in February or March. According to Ambrosino, this iteration will likely also feature a TIF agreement request from Corcoran.
“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 original development proposal emerged in 2017 but faced rejection when Corcoran sought City Council approval to employ non-union workers on the project to improve financial viability.
That meeting drew substantial opposition from residents and union workers alike, and the Council ultimately sided with them, denying the request.
Since that defeat, little progress has been made on the project. To make the finances work this time around, Corcoran appears prepared to seek property tax reductions for a defined period.
“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.”
While the Council has traditionally been supportive of TIF requests, a growing number of councillors in recent years have started questioning their necessity. The upcoming proposal is likely to generate considerable discussion and debate among board members.