Trustees back staff pursuit of state funding for Southwest Promenade housing while seeking broader financing plan for full town‑center buildout

At a lengthy discussion March 12, the Board of Trustees approved staff moving forward with funding applications for the proposed Southwest Promenade ownership project while also asking town staff to pursue a broader financing strategy for the entire town‑center campus.

Consultant Andrew (project lead) told trustees that new state programs and a revived community revitalization tax credit (CRTC) create near‑term opportunities to fund a smaller ownership phase on the southwest portion of the town‑center site. Under the plan discussed, a mixed‑use building would contain eight for‑sale units and a small commercial space; two units would be deeded to the town for municipal purposes or workforce housing and the remaining six would be targeted to income bands the town hopes to serve (models assumed a mix of ~80–120% area median income depending on the funding source). Andrew said the CRTC and Division of Housing programs might be available in funding rounds opening within weeks.

Trustees debated whether to "chop off" one portion of the larger town‑center plan and pursue it now. Trustee Colin urged caution, warning that separating a small parcel could hinder later attempts to finance larger LIHTC (low‑income housing tax credit) or other projects on Sixth Street. Trustee Ross and others argued a smaller, achievable phase could demonstrate progress and help activate downtown. Trustee Jess said she was uncomfortable taking the smaller parcel forward without a fuller financing plan for the whole site.

After discussion, a majority of trustees approved staff moving ahead with near‑term funding applications for the Southwest Promenade parcel (subject to further underwriting and staff review) and simultaneously asked staff to: - Continue development of a comprehensive financing strategy for the full town‑center site (Sixth Street, promenade and parcels adjacent to Thunder River Theater); - Examine alternative tools including CHFA/MEHA programs, state middle‑income tax credit tools, COP or municipal financing, sale or restricted development of other town parcels to produce gap funding, and philanthropic partners; and - Organize or participate in a municipal financing workshop to gather expertise on bond, COP and other municipal funding approaches.

Andrew and staff will start CRTC and Division of Housing application steps in the coming weeks and will return to the board with updates and additional underwriting when application deadlines produce concrete requirements.