HRA: Appleton Mills phase 1 on schedule; phase 2 demolition, site‑readiness funding remain unresolved

Holyoke Redevelopment Authority staff reported that the Appleton Mills phase 1 project is generally on track while discussions continue about how to prepare for phase 2, including possible demolition of two deteriorated buildings and a mix of funding approaches.

HRA staff said they and developer team members (identified in meeting materials as working with a developer named Hagop) continue biweekly meetings. Staff reported the ancillary building and one “show” apartment are slated to be completed in late spring or early summer, with final applications expected late summer and initial occupancy possibly beginning in early fall. Staff said recent work on the parking and curb infrastructure is largely complete and that the developer has secured an extension from the railroad to finish project work.

Board members and staff discussed phase 2 plans for two problematic structures — identified in staff comments as the smokestack building and a coal‑storage building — that sit between the VIN development and 101 Cabot. Staff said those buildings may be beyond practical rehabilitation for residential reuse and that demolition could create green space and access for phase 2. HRA staff and the developer have discussed potential cost‑sharing for demolition: staff said an initial demolition/remediation estimate was roughly $547,000 and that a recent remediation result raised the cost to an estimated $600,000–$700,000. Staff said they have asked the developer to commit to half the demolition cost if city funds can cover the remainder.

Staff said the project team is pursuing several funding sources for phase 2, including historic tax credits (staff said a tax‑credit award in the HRA’s packet totaled approximately $1 million, with credits available up to $1.5 million for phase 2), Community Building Grant (CBG) funds, and a separate $200,000 site‑readiness grant. HRA staff said they do not want the $200,000 site‑readiness grant to be used on a new plan but rather to synthesize existing studies and produce clear next steps for acquisition and site readiness.

Board members raised neighbor concerns about safety, needles and unauthorized occupancy in the two buildings. Staff said the Board of Health recently conducted a cleanup and that the HRA has worked with a contractor to board up openings. Staff said they are coordinating with the building commissioner, Board of Health and fire department to monitor conditions and avoid issuing a demolition ultimatum before funding is secured.

Board members asked about possible reuse of materials from demolition; staff said they have requested the developer consider reuse of bricks and other salvageable materials.

Other property updates provided to the board:

- Site readiness and Haberman properties: The HRA reported it has engaged MassDevelopment and site‑readiness consultants and submitted a request to MassDEP for environmental testing support on the Haberman property. Staff noted they are obtaining an access agreement from the Haberman family’s personal representative so the city and consultants can conduct environmental assessments. Staff said family members recently signaled a willingness to pursue disposition.

- 123 Pine Street: The vacant building registration (VBR) hearing is scheduled next week. Staff said they will invite the property owner to give a six‑month update to the HRA in February after the VBR hearing; the owner previously presented but has been delayed by construction‑cost and supply‑chain pressures.

- 37 Appleton Street: The site, acquired and cleaned up by a buyer (American Environmental), remains a partially developed parcel. Staff said the buyer is before the planning board on Feb. 11 regarding development of the northern portion (truck repair, storage and possible retail); the buyer has not submitted plans for the entire parcel.

- Race and Main Street lot: Staff said the agreement with Beyond Walls for temporary activation of the Race and Main lot has been signed; staff will arrange for the former HRA chair to sign the agreement on the authority’s behalf. Beyond Walls plans events and temporary park assets that would remain in the city if the site is later developed.

- Site engagement grants and partnerships: Staff said they have been in touch with MassDevelopment and with consultants on a site‑readiness grant and are coordinating with local offices to pursue environmental and acquisition work; they also described outreach and potential partnerships with Nueva Esperanza, Parks and Recreation and cultural‑district partners for activation of public spaces.

Board introduction: Tiffany Espinosa introduced herself to the board. Espinosa said she is executive director of professional program education at Mount Holyoke College, has experience mentoring small businesses and working on brownfield issues, and has lived in Holyoke for about eight years.

No formal board vote was required at the time for the phase 2 demolition or funding strategies; staff said they would report back as funding and agreements develop.