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McCaffrey seeks HDIP tax-exemptions for two Main Street properties; project proposes 99 units and $68 million investment
Summary
City staff and McCaffrey project lead briefed the subcommittee on two HDIP (tax-increment exemption) agreements covering four historic buildings the developer plans to knit together; the developer seeks a 10-year exemption schedule for a $68 million project delivering 99 market-rate units and ground-floor retail. Agreements are scheduled on the council agenda on Monday.
The subcommittee heard a briefing from Brian Connors of the Economic Development Office and Ed Woodbury, project lead for McCaffrey Interests, on a proposed market-rate housing development in downtown Springfield and the developer’s request for HDIP tax-increment-exemption agreements.
Connors described the HDIP mechanics: a local tax agreement on the new growth value combined with a state tax credit that helps close development financing gaps common in gateway cities. He said the request covers two agreements because the developer intends to connect two building groupings internally; the items are set to appear on the council agenda on Monday.
"This is a $68,000,000 investment that will create 99 units of housing," Connors said. Woodbury described knitting together four historic buildings (including the Clock Tower building) to produce 99 units and roughly 14,000+ square feet of ground-floor retail. He said construction drawings are expected to be finished by the end of January, bids will be solicited in the first quarter, and the team aims to begin construction in 2026 with completion in 2027, contingent on securing financing.
Woodbury said construction debt is expected to cover about 55% of costs and that the team is pursuing federal historic tax credits, which he said would cover a substantial portion of the financing though he did not specify an exact amount in the briefing. He estimated unit sizes ranging from about 400 sq ft (studios) to about 1,500 sq ft (three-bedrooms) and used a per-square-foot rent metric to illustrate likely pricing; studio rents were discussed in the roughly $1,000 range depending on final layouts.
Councilor noted a city ordinance requiring notification to council when developers propose units under 500 sq ft and welcomed McCaffrey’s investment in the downtown. The subcommittee expressed general support and closed the meeting with thanks to staff and counsel.
