Holyoke developers request letters of support for Crafts and Wright blocks; commission pauses vote pending legal review

Developers seeking to rehabilitate two adjacent historic blocks on North High Street asked the Holyoke Historical Commission on March 3 for letters of support tied to a pending allocation of Massachusetts state historic tax credits. Project representatives said the funding tranche is required to proceed to construction in June and that the combined projects total roughly $8,000,000.

The request covers Crafts Block and Wright’s Block, two Italianate-era properties in the North High Street Historic District. A project representative, Bill, told commissioners the developer bought Wright’s Block in 2019 and has invested more than $1 million in infrastructure work, including a sprinkler system, a transformer to serve the block and roof and enclosure repairs. “The project is… it’s over $8,000,000,” Bill said, adding that the team has assembled 14 funding partners and is “cobbling together as many different state and federal funding sources as possible.”

That funding stack relies heavily on the state historic tax credit program: the developers said credits are awarded in tranches several times a year and that the project must secure an additional tranche before the bank will allow a closing. Bill described the financing chain in broad terms: credit awards, an identified buyer of credits, a nonprofit intermediary that converts the credits into a soft loan, and a construction bridge lender that advances funds during construction and is repaid from those donated-credit proceeds.

Supporters at the meeting identified Preservation MASS and MassDevelopment as participating in the financing chain. The developers warned some state funding commitments expire this year if construction does not begin by June.

Commission discussion focused on two procedural matters: whether to vote on both letters together and whether legal clearance and newly sworn commissioners’ signatures were required before taking formal action. After debate, a commissioner moved to provide letters of support for both the Crafts and Wright blocks. The commission did not complete a binding vote: commissioners recorded two votes in favor (identified during the discussion as Elizabeth and Commissioner Olivia Moselle) and four abstentions. The chair said the tally meant the matter must be referred to legal counsel and that she would “reach out to legal” and report back.

Commissioners and presenters repeatedly described the state-credit process as complex, noting multiple attorneys and closing conditions add time. “All those parties are ready to close, and if we do not get this tax credit, it really does delay the whole project,” Bill said.

The commission did not adopt the letters at the March 3 meeting. The chair said the request would be forwarded to the city’s legal office for advice about how to proceed given the abstentions and that staff would notify the chair and project team of the legal guidance.

If legal review clears the procedure, the developers plan to move toward construction this summer; if not, staff said funding deadlines may force them to return for a later application round.

Clarifying details provided at the meeting include: the developer purchased Wright’s Block in 2019 and has invested “over a million dollars” in infrastructure; the combined project budget is “over $8,000,000”; the team has assembled 14 funding partners; state historic credit tranches are distributed several times a year and the developer expects to need another tranche before bank closing; identified financing partners mentioned in the discussion included Preservation MASS (credit buyer/credit intermediary) and MassDevelopment (construction bridge financing).