Watertown council approves $4 million in CPA funds for Willow Park redevelopment

The Watertown City Council voted unanimously Feb. 11 to encumber $4,000,000 from the city’s Community Preservation Act (CPA) fund balance to support the Willow Park redevelopment, a project the council and developers say will more than double the site’s existing affordable-housing units.

Councilors approved the funding after considering a Community Preservation Committee recommendation and a presentation from the CPC chair and project partners. The redevelopment would take place on a 2.2-acre site and includes the acquisition of a roughly 0.1-acre adjacent property. The proposal would replace the current 60 units with a total of 138 units, according to CPC materials presented to the council. The project’s estimated total budget was presented as $107,500,000; the city’s $4,000,000 is described in the CPC materials as seed/encumbrance funding to support predevelopment and to position the project for state and federal financing.

The CPC presentation described a layered financing plan that includes low-income housing tax credits, state workforce housing funds, a construction loan and mortgage financing. The committee’s written recommendation includes several conditions: execution of legal agreements between the project partners, documentation that expected revenue will cover long-term debt service and operations, a 40-month window for funds to be available after council approval (extendable on CPC request), CPC participation on a lender advisory agreement for cost review and construction monitoring, placement of a perpetual affordable-housing restriction on the site, and a project goal of 70% local preference in tenant selection.

The council heard from Preservation of Affordable Housing (POA) via Corey Meehan, senior vice president, who described POA’s development and long-term management experience. “We own and operate about 13,000 apartment homes,” Meehan said, adding that POA manages property operations and has carried out comparable public-housing repositioning projects in the region. Jackie Sullivan, interim executive director of the Watertown Housing Authority, confirmed the housing authority will retain the ground lease and a minority stake in long-term operations.

Councilors who spoke in favor emphasized the CPC’s deliberations and the project conditions. “I think this council has really put a priority on trying to do more affordable housing,” Councilor Piccherelli said, noting the council’s interest in protecting the city’s investment through the agreed conditions.

The motion before the council encumbered the CPA funds for the Willow Park project under the category of community housing, subject to the CPC conditions included in the council packet. The roll-call vote recorded yes votes from Councilor Izzo, Councilor Palumbo, Councilor Piccirilli, Councilor Raisin, Councilor Bays, Councilor Feltner, Councilor Gannon, Councilor Gardner and President Sedaris.

The project will be carried out by the Watertown Housing Authority in partnership with Preservation of Affordable Housing and an architectural partner described in materials as Mass Design. The CPC packet and discussion make clear the $4 million is a fraction of the total financing package but is intended to demonstrate municipal commitment to federal and state funders.

The council’s vote encumbers the CPA funds and preserves the CPC’s recommended conditions; final grant execution, additional regulatory approvals and the timing of other financing remain to be completed before construction can proceed.