Developers secure five‑year tax‑increment exemption for 99‑unit Canal Street project

The council voted to approve a five‑year tax‑increment exemption to help the Canal Street redevelopment move forward and to enable the applicants to apply for state Housing Development Incentive Program (HDIP) funding.

Developers identified in the meeting as the Trejo brothers described changes to the project’s plans after consultation with the fire department. That redesign—moving parking inside the building rather than in a separate parking structure—reduced previously discussed unit counts. Project representatives said the finished project will be 99 units; a councilor noted an inconsistency in the planning board notice that referenced both 16 and 144 units and asked that the record be clarified. Fire Department representatives and Chief Moriarty confirmed they had been consulted, that plans were revised to address access and sprinklers, and that the finished building will be brought up to current code with a modern sprinkler and alarm system.

Project details discussed on the record include an applicant‑funded replacement bridge the developers are installing (described in the record as costing about $2.5 million) to improve fire access; developers said they have already invested in underground infrastructure work for that bridge. The developers estimated property tax revenue would increase from roughly $40,000 a year as a warehouse to about $200,000 per year after conversion; with the five‑year TIE schedule discussed in the meeting (50% first year, 40% second year, 30% third year, 20% fourth year, 10% fifth year), the immediate tax payment under the agreement would be about $95,000–$100,000 in the early years, with full tax liability later.

Councilors debated near‑ and long‑term implications for school enrollment, city services and cumulative housing growth. Councilors who asked for more documentation said they did receive additional materials before the meeting or had received emails; the fire chief confirmed field coordination with developers and described required code, sprinkler and egress upgrades. The record shows the HDIP state application deadline was stated as Jan. 13; councilors indicated the TIE is required by the state as part of the competitive application.

A roll‑call vote was recorded after debate; the clerk recorded a majority in favor and the TIE was approved, allowing the applicants to pursue the state grant application.