The Redevelopment Agency would receive redevelopment fees of $1,000 per unit for a proposed 194-unit project on Main Street, under an agreement approved earlier this month.
The $194,000 would be paid in four installments: the first 25 percent upon approval of the final site plan. The project is expected to come before the Planning Board later this year. The second quarter would be paid upon the first building permits issued. Another 25 percent would be paid upon issuance of the first certificate of occupancy (CO), and the final quarter would be paid within 12 months of the first CO.
The Redevelopment Agency approved Resolution 21-14 at its April 2 meeting for the two-building project known as Dornoch II, centered around Lot B behind East Cherry Street. The 62-page redevelopment agreement in its entirety can be found here (but not on the Redevelopment Agency’s website, you might notice).
The redevelopment agreement covers a variety of issues related to construction. Specific to this project, the developer, Vienna, Va.-based Slokker Real Estate Group, will cover the cost of environmental remediation (estimated at $1.4 million) as well as extending Monroe Street across Main Street to East Cherry Street (estimated to cost $250,000). The agreement also indicates that Slokker will work with Luciano’s and the Parking Authority to identify alternate locations to accommodate Lots 1 and 2, at the corner of Poplar Street (map), which the restaurant has been subleasing.
The City Council this month also approved a 30-year Payment In Lieu Of Taxes (PILOT) for the project given the costs of environmental cleanup as well as the street extension. The developer of the $55-million project would pay about $360,000 in the first year – as much as half of what it typically might pay in taxes – with a 3-percent escalator annually. The project’s cost and revenue estimates can be found here.