Board approves 5-year RSA 79‑E tax relief for 1555 Elm Street conversion

The Board of Mayor and Aldermen on a special meeting approved a five‑year RSA 79‑E community revitalization tax relief incentive for a planned conversion of 1555 Elm Street into a 36,000‑square‑foot mixed‑use building with 40 market‑rate residential units and two street‑level commercial spaces.

The incentive, authorized under New Hampshire RSA 79‑E, temporarily reduces property tax liability to encourage rehabilitation or replacement of qualifying structures that provide public benefits. Jody Nazzaca, Manchester’s economic development director, told the board the project “enhances the economic vitality of the downtown” and meets the statute’s public‑benefit requirement by adding housing in the Central Business District.

Nazzaca said the applicant’s pro forma lists a project construction estimate around $12.3 million (excluding an approximately $2.0 million site acquisition), and that the conversion will create 35 two‑bedroom and 5 one‑bedroom units. Attorney John Bisson, representing the applicant, said the incentive helps make the smaller, high‑cost project viable and noted Brady Sullivan Properties will manage the building.

Public commenters pressed the board on affordability. Viola Katsime of the Granite State Organizing Project urged the board to require units affordable at 50 percent of area median income or accept vouchers. Bryce Cowell, who said he had voted no on a planning board procedural motion but otherwise supported the redevelopment, questioned whether an estimated $693,289 in tax relief over five years is an appropriate subsidy for a market‑rate project.

Board discussion focused on the term length. Nazzaca told aldermen the applicant requested the maximum seven‑year term; she recommended the board consider a shorter period because the proposal does not include deed‑restricted affordable units. Several aldermen discussed precedent; ultimately Alderman Long moved approval for five years, seconded by Alderman Theriault. The motion passed with one recorded opposition (Alderman Farhrdo).

The formal approvals on the record: the board voted to grant RSA 79‑E relief for five years for 1555 Elm Street. The city assessor’s pre‑renovation assessment and the applicant’s estimated post‑rehab assessed value were discussed in the presentation; Nazzaca said the post‑renovation assessed value was estimated at about $9.5 million, producing an estimated first‑year tax increase of roughly $128,000 absent the incentive.

The board also noted the project preserves street‑level commercial frontage, which city staff said helps maintain downtown services while adding housing. No deed‑restricted affordable units were required as a condition of the relief.

Votes at a glance: Item 15 — Application for community revitalization tax relief RSA 79‑E, 1555 Elm Street. Motion to approve a five‑year incentive: moved by Alderman Long; seconded by Alderman Theriault; outcome: approved; one recorded no vote (Alderman Farhrdo).